According to the notification, JSC “Georgian Healthcare Group” is set to acquire the entire insurance portfolio of JSC “Ardi Insurance“.
In the first 11 months of 2023, JSC "Ardi Insurance" collected a premium of 83,744,974 GEL. Out of the total premium collected, 81.3% was from the sale of medical (health) insurance, 9.2% was from land vehicle insurance (excluding rail transport), and the remaining 9.5% was from 11 different insurance products.
According to data of the 11th month of 2023, there were 16 companies operated in the medical insurance industry. The total premiums collected came to 402,545,318 GEL.
"Ardi" had a 16.9% market share, while "Imedi L" and "Aldagi" (both part of the "Georgian Healthcare Group") combined for 18.7%. The HHI market concentration index measured 1453 units. Following the implementation of a concentration, the market share increased to 35.6%, while the concentration index increased to 2090.
During a certain period of time, there were 17 companies operating in the auto insurance market, and the total amount of premiums raised by these companies was 176,329,001 GEL.
Among these companies, "Ardi" had a market share of 4.4%, while "Aldagi" had a market share of 23.7%. However, after the two companies merged, their joint market share will increase to 28.1%, and the HHI index will also increase from 1546 to 1753 units.
The Agency has indicated that the existing concentration in the vehicle insurance market prevents the creation or strengthening of a dominant position. Similarly, in the medical insurance market, although there is a high market share, there is no scope for creating or strengthening a dominant position. Therefore, the Agency has decided to analyze the market structure and specificity to ensure that there is no substantial restriction of competition in the relevant market.
After conducting a final assessment, the Agency has concluded that the aforementioned concentration will not significantly restrict effective competition and is compatible with the competitive environment.
For information: In 2023, the Agency reviewed the concentration of 40,597 registered companies in Georgia and approved 9 concentrations during that period.
