AXA and ERGO Insurance Group announced Friday that they have reached an agreement for AXA to acquire 100 percent of ERGO’s Korean subsidiary ERGO Daum Direct.

ERGO Daum Direct is the number four player in the Korean direct motor insurance market. Since its launch in 2003, its portfolio growth has reached annual premiums of 260 billion won. It currently serves more than 500,000 clients for non-life insurance products with a focus on motor insurance.

“This acquisition will reinforce AXA’s leading position in this market. This deal provides AXA with the opportunity to strengthen its presence in one of the fastest growing and most developed non-life insurance markets in Asia,” an AXA official said.

AXA Direct Korea writes 534 billion won in annual premiums. The firm currently serves 950,000 clients.

In a press release, Stephane Guinet, CEO of AXA Global Direct, said: “We are extremely pleased to have agreed on the terms with ERGO for the purchase of ERGO Daum Direct, which further strengthens AXA’s number one position in the Korean direct motor market, with a combined market share of around 22 percent.

“This acquisition demonstrates AXA’s commitment to the Korean market and is fully consistent with our global strategy to accelerate our development in the Direct Property & Casualty business.”

Following this acquisition, the AXA Group will serve almost 5 million clients through its Direct Property & Casualty operations worldwide.

“Both companies have very similar business models and organizations,” said Xavier Veyry, President and CEO of AXA Direct Korea. “Through this acquisition we are efficiently reinforcing our platform for growth in the most dynamic and strategic distribution segment in Korea.”