Vienna Insurance Group (VIG) has agreed to buy Axa’s non-life and life Serbian businesses, as the French insurer decides to exit the country.
The acquisition of Beograd (Axa Serbia) was agreed on July
The amount paid by VIG for the acquisition has not been disclosed.
“Based on positive economic forecasts, Serbia is a clear growth and investment market for VIG,” said Elisabeth Stadler, CEO of Vienna Insurance Group (VIG).
“Serbia is one of the four markets where we aim to reach a market share of at least 10% over the medium term.
“The two Axa companies are a very good fit for our portfolio, and their acquisition will allow this goal to be achieved far sooner,” she said.
The two Axa companies generated slightly more than €12m premiums in 2015, have more than 106,000 customers and a market share of 1.8%.
Both companies have products in the casualty, motor, household and life insurance business.
These are similar to the products VIG is offering through its existing company, Wiener Städtische Osiguranje.
Wiener Städtische Osiguranje, generated more than €61.6m premiums in 2015, corresponding to an increase of 7%.
This represents a market share of 9.7% for the company.
Together with the two Axa companies to be acquired, VIG is the fourth largest insurer in the Serbian insurance market, VIG claims.
In its 2015 results, VIG reported some central and eastern European countries (CEE) saw large increases in profit development, such as Austria grew 25.5%, Macedonia was up by 138.6%, Serbia grew 24.4% and Hungary rose by 18%.
This company also said it had plans to expand into the Baltic. “The fact that the economies of many CEE countries are recovering faster than those in Western Europe confirms that our decision was right,” said Stadler, when the results were announced in May.