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November 30, 2020 – Shortly after Uniqa, the Vienna Insurance Group is now reporting, subject to official approvals, a large-scale purchase: it concerns the acquisition of Aegon companies in Poland, Hungary, Romania and Turkey . The closure is scheduled for the second half of 2021.
Vienna Insurance Group AG Wiener Versicherung Gruppe (VIG) has reached an agreement with which it wants to expand its activities in Central and Eastern Europe and Southeast Europe.
Yesterday it reached an agreement with Aegon NV, based in The Hague, Netherlands, to acquire its life and non-life insurance business in Hungary, Poland, Romania and Turkey.
According to VIG, pension funds, asset management and service companies in these countries are also covered by the agreement.
The purchase price is estimated at 830 million euros.
Around 600 million euros in premium volume
With the acquisition of the companies, VIG will become the largest provider in the Hungarian insurance market, according to the group.
In Turkey it means going into the life business. VIG has been represented there since 2007 by Ray Sigorta, founded in 1958, which operates in the non-life sector and focuses on motor vehicle insurance.
“The volume of premiums of the insurers of the four countries amounted in 2019 to the equivalent of around 600 million euros, with a net result of around 50 million euros,” said the group.
In 2019, VIG generated a premium volume of around two billion euros in its four markets.
Closing scheduled for the second half of 2021
From the current perspective, VIG assumes, according to the announcement, “that the regulatory solvency ratio at closing will be within the reported comfort zone of 170 to 230 percent.”
The transaction is still subject to the necessary competition and regulatory approvals. The group expects a closure in the second half of 2021.
Uniqa has already made important purchases this year
Uniqa Insurance Group AG had already made people sit up and take notice with a bulk purchase earlier in the year. In February it announced that it had signed an agreement to buy Axa’s subsidiaries in Poland, the Czech Republic and Slovakia.
The volume was estimated at around one billion euros (VersicherungsJournal 02/10/2020). In October, the group announced the completion of the acquisition (VersicherungsJournal, October 16, 2020).
An acquisition took place “within Austria” on October 30 with the integration of SK Versicherung into Generali Versicherung AG (VersicherungsJournal October 5, 2020), as recently announced by the company. Generali had previously been the largest shareholder with almost 40 percent.
