The Latvian competition authority, known as Konkurences padome (KP), has decided to commence an additional investigation into the merger between ERGO International AG and ADB Gjensidige, which was initially announced on December 27, 2024.

ERGO is a Germany-based company that offers a wide range of non-life, life, and health insurance products either directly or through controlled subsidiaries. In Latvia, ERGO operates through its Estonian subsidiary, ERGO Insurance SE, providing various non-life insurance services, including medical expense insurance, liability insurance, and vehicle insurance. Additionally, ERGO Life Insurance SE, registered in Lithuania, offers health and life insurance services in Latvia.

Gjensidige, on the other hand, is a Lithuania-registered company that provides a broad spectrum of non-life insurance products across the Baltic states, including property insurance, travel insurance, and vehicle insurance.

The merger raises concerns as the activities of both companies overlap in the non-life and health insurance markets, particularly in areas with high barriers to entry, such as railway, surety, cargo, and marine insurance. There are also significant overlaps in markets with higher price sensitivity, including vehicle insurance and accident insurance.

To thoroughly assess the merger's impact on competition in Latvia, the KP has decided to initiate a detailed examination based on the first part of Article 16 of the Competition Law. Market participants and other interested parties are encouraged to provide their views on the merger's competitive effects by February 21, 2025.

For more information regarding the merger and merger control in Latvia, interested parties can contact KP's senior economist Andris Vītols or economist Sanda Blau.