ALE increases its stakes in Hestia Insurance and Alte Leipziger Hestia
German concern Alte Leipziger Europa AG (ALE) has increased its stake in
two Sopot-based insurance companies Hestia Insurance and Alte Leipziger
Hestia. In the deal concluded yesterday, the German company acquired 1.8
million shares of Hestia Insurance at zl.300 per share, upping its control
of the business to 80%. Thanks to the transaction, the insurer's equity
increased by zl.550 million, making it the second biggest one on the
Polish market after PZU Zycie. At the same time, ALE hiked the equity of
its second insurer, Alte Leipziger Hestia, by zl.20 million. The company
is now controlled by Alte Leipziger Europa (51%), BRE Bank (41%) and
Hestia Insurance (8%). The increases in capital mark the first step toward
completing a plan by the German group Ergo, to which ATE belongs, to
create a strong insurance group in Poland. Hestia Insurance also has plans
to take over TU PBK insurance company, now in the hands of PBK bank. The
Ergo group already owns two insurance companies operating under the name
Compensa and it is possible that these could merge with Hestia Insurance
