History

Eureko was originally formed in 1992 as an alliance of European insurers and banking operations. The original aim of Eureko was to create a vehicle for international development by seeking further partnership opportunities in both mature and emerging markets where there were natural synergies for development. A further goal was to add value to existing operations through co-operation and bi-lateral exchange of resources and skills.

The Alliance comprised eight companies, each with dominant positions in their domestic markets, and together combined to create the Eureko Alliance. The individual companies operated in their own markets, and had cross-holdings in each other through the holding company, Eureko B.V., through which their international strategy was co-ordinated.

In July 2000, Eureko moved to a two-speed partnership. Two of the Alliance partners – BCP and Achmea – had reached 'saturation point' in their domestic markets, having achieved as much as they could in terms of acquisitions and mergers within those markets. To continue to grow, they needed to expand into broader international territories. Thus it was that the mutually-owned Dutch Achmea and the insurance business of BCP – Seguros e Pensões – as well as the respective asset management businesses, were merged with Eureko.

Combined with Eureko's existing businesses, this re-structured Eureko B.V. is the vehicle for any future mergers and acquisitions..

At the same time, the platform exists for those original Alliance partners to be able to contribute their businesses to Eureko as and if it becomes appropriate.

Shortly after the re-structure in 2000, Eureko acquired Foreign & Colonial of the UK (now F&C), an asset management company and the world’s oldest money manager. A few months later, Eureko made a further acquisition, of Interamerican, Greece’s foremost insurer.

In October 2002, following a volatile (and on-going) period in the global equity markets, it was announced that Eureko B.V., the Achmea Association and BCP (Eureko’s two principal shareholders) had reached an agreement whereby, in a move to re-focus on its core domestic retail strategy, namely bancassurance, BCP would re-acquire the insurance business of Seguros e Pensões.

BCP remains a shareholder of Eureko and the two companies continue their strategic partnership in the development of joint initiatives in asset management and bancassurance in Poland and Greece.

In March 2004, Rabobank Nederland acquired a 5% stake in Eureko. This was followed by a period of co-operation and collaboration on a range of fronts between the two organizations. The Rabobank stakeholding increased to 37% in November 2005, following the merger of Interpolis, the Dutch insurance subsidiary of Rabobank with Achmea, Eureko’s Dutch Operating Company. Rabobank is now the second largest shareholder in Eureko.

In July 2004, Eureko announced the proposed merger of its asset management subsidiary, F&C, with ISIS Asset management of the UK - the new entity to be branded F&C Asset Management plc. Following the satisfaction of all conditions of the merger (including regulatory consents and shareholder approvals), the merger was completed in October 2004, creating, for Eureko, capital value of approximately EUR 1.1 billion.

Eureko retains an approximate 10% shareholding in F&C, which acts as one of Eureko’s principle asset managers, with long-term mandates.
The merger has also realised Eureko’s stated objective (announced in 2004) of achieving a stock market listing.

At the end of 2004, Eureko and bank Millennium )Poland announced that Eureko would acquire Bank Millennium’s 10% stake in PZU, bringing Eureko’s shareholding to 31.8%. Eureko subsequently (early 2006) acquired further shares, taking its current shareholding to 33% minus 1 share (the threshold beyond which Regulatory approval must be granted to acquire any further shares. Accordingly, Eureko submitted a request to increase up to 50%). This was rejected. Reapplications have similarly been rejected.
In April 2005, Eureko and Rabobank signed a Letter of Intent to merge Achmea and Interpolis (the insurance subsidiary of Rabobank). This transaction completed in November 2005. Rabobank’s shareholding in Eureko increased to 37%, and three members of the Interpolis Board joined the Eureko Executive Board.
In August 2005, Eureko’s submission to the International Court of Arbitration against the Republic of Poland received a verdict, which was in Eureko’s favour (i.e. the Court adjudged the the RoP had infringed Eureko’s rights as a foreign investor, by failing to afford sufficient protection to its investments in Poland – as laid down in the 1992 bi-lateral treaty between the Netherlands and Poland).
The second phase of the Arbitration – the claim and award of damages – is being assessed.

At the beginning of 2006, in The Netherlands, new health legislation was introduced, which resulted in much of the public health system being privatised. Achmea, the Dutch Operating Company, acquired a significant market share, increasing its number of health clients to 3.5 million in the first few months, ultimately making it the leader in that market.
In Slovakia, health reforms were also introduced, and Eureko launched a new health company – Union health Insurance – to service this market. This attracted some 460,000 new clients.
Following the completion of the merger of Interpolis with Achmea, in The Netherlands, a new structure was announced, with the various business units re-arranged into Divisions. Three were centred on distribution channels, and three on products. In addition, a seventh Eureko Division was established, to focus exclusively on driving Eureko’s growth outside of The Netherlands.
In November, the Brussels Court of First Instance announced that it had rejected the Republic of Poland's claim for the annulment of the Partial Award (in Eureko’s favour) by the International Arbitration Tribunal. The Court ruled that the arguments submitted by the Republic of Poland were without foundation. The Court re-affirmed that the Republic of Poland was in breach of the Bilateral Investment Treaty between the two countries, and that Eureko’s investment rights had been violated. It was also ruled that the PZU privatisation agreements must still be performed.
In December, the Brussels Court of First Instance further rejected a claim by the Republic of Poland of the lack of impartiality of the Eureko-appointed judge in the arbitration proceedings (Judge Schwebel).
In January 2007, the Republic of Poland filed two appeals against the verdict of the Brussels Court in the annulment proceedings, and one against the verdict in the challenge proceedings of Judge Schwebel.
In February that year, a severe storm which hit the Netherlands caused Achmea a loss of around EUR 132 million.
In March 2007, Eureko entered a brand new market by acquiring the insurance business of Garanti bank of Turkey, and entering into a long-term exclusive distribution partnership with Garanti Bank. The new insurance entity would be branded Eureko Sigorta.

As of 21 June 2007, Eureko effectively obtained control over 80% of the shares in Garanto Sigorta A.s. a Turkish Non-Life insurance company owned by Garanti bank in Turkey, later re-named Eureko Sigorta. As part of this transaction, Eureko is obliged to acquire the remaining 20% of shares within three to five years after the closing date of the transaction, if Garanti Bank opts to sell these shares.
At the same time, Eureko acquired a 15% share in the sister company, Garanti Emeklilik, a Life and pensions company, with an option to acquire a further 35% within three years.
In June, Achmea and Agis, another major Dutch health insurer announced they would merge.
The impasse between Eureko and the Polish State continued; the calculated damages suffered by Eureko were submitted to the Court of Arbitration for assessment and award. A compromise between the parties remains the preferred option.

At 31 December 2007, Eureko acquired 100% of the shares of Agis Zorgverzekeringen VV, a major health insurer in The Netherlands, with some 1.2 million customers. This acquisition made Achmea (Eureko’s Dutch operating Company), the largest health insurer in the Netherlands.

In the first half of 2008, Eureko began further talks with the government of Poland, in an attempt from both sides, to reach a settlement. As yet, there is no positive outcome.

Despite the global financial turmoil, Eureko continued to pursue its strategy of M&A activity in the CEE markets, and announced, in September, that it had signed an agreement to acquire 100% of a Russian insurance company, Oranta.

At the same time, in a strategic portfolio review, it announced the sale of its French subsidiary, Império, to Esca. However, this transaction was later annulled as Esca did not receive financial approval from the French regulator for the deal to continue.

Late 2008 Eureko announced the acquisition in Russia of Oranta Insurance Company from PromSvyazCapital. Oranta has a multi-channel distribution network, with principal operations in Moscow and St Petersburg, and a presence in most major cities. Its main business focus is on motor insurance as well as property insurance.