ArmInfo. The Austrian financial concern GRAWE Group and C-Quadrat Investment Group acquired 100% of the shares of LIGA Insurance. The deal was approved by the Central Bank of Armenia on January 30, 2020. During a press conference on February 3, Central Bank Chairman Martin Galstyan noted that the deal was preceded by eighteen months of negotiations and collaboration. As noted, the company will retain the name LIGA Insurance for now, but with the branding "Member of GRAWE Group": 75% Equity: LIGA GRAWE Group and 25% Equity: C-Quadrat Investment Group.
Emphasizing the importance of a reputable international insurance company entering the Armenian market, Central Bank Chairman Martyn Galstyan noted that this deal will, first and foremost, create opportunities for diversifying insurance products, lead to potential changes in the reinsurance industry's approach, and create prospects for the implementation of large-scale insurance projects. "We will continue out efforts to activate similar transactions and attract players to the Armenian market," he said.
Klaus Scheitegel, CEO of GRAWE Group, described the acquisition as a long-awaited entry into the South Caucasus. He signaled that GRAWE intends to turn Yerevan into its regional hub, integrating LIGA into an international network of 19 companies across 13 countries. "One of our goals is growth. We want LIGA to join our international network, which consists of 19 companies in 13 countries. We chose Armenia because the country has a long history, security, and clear regulatory norms," Scheitegel stated, pointing out the important role of the Regulator in this regard.
In response to a question from an ArmInfo correspondent about the possible activities of their reinsurance company in Armenia, Scheitegel noted that no country in their group should negotiate reinsurance terms independently. " By negotiating as part of a massive global group, LIGA will secure better prices and more transparent, diversified coverage. We will offer good reinsurance terms to LIGA through our GRAWE Reinsurance. Calculations will become more transparent and simpler," he explained. The head of GRAWE compared the insurance business to football, where success is always the result of the entire team's work.
When asked whether the Group plans to invest in the Armenian real estate market, like it does in the countries where it operates, he answered affirmatively. "The real estate market plays an important role in the insurance business. We currently manage over 43,000 properties globally, covering 2.7 million square meters and always operate in buildings we own. We do have plans to invest in the Armenian real estate market, but we still need to conduct firther research," said the head of GRAWE, noting that he could not disclose more details at this time, as this is only his second visit to Armenia.
Responding to a question about the agricultural insurance market, Scheitegel stated that the group is preparing to present new agricultural insurance models to the Armenian government to broaden coverage for local farmers. "In the coming months, we will discuss how we can expand insurance coverage in Armenia. We must also negotiate with the government, as it must provide the legislative framework within which we will operate," he said.
Andreas Wimmer, CEO of C-Quadrat Investment Group, called their long-term experience in Armenia "absolutely successful," citing high-quality governance and professionalism as reasons for expanding their partnership.
To meet European standards, LIGA Insurance Deputy Executive Director Vahagn Aghavelyan announced that the local team will undergo rigorous retraining programs across the GRAWE network. This marks a significant upgrade in the technical expertise available to Armenian consumers.
