Vienna Insurance acquires Ukrainska Strakhova Grupa

Vienna Insurance Group expanded its involvement in the Ukrainian insurance market, continuing its expansion course in Central and Eastern Europe.
TBIH Financial Services Group N.V., in which Wiener Stadtische Versicherung AG Vienna Insurance Group has a majority shareholding, signed a contract for the acquisition of 62% of the stated share capital of Ukrainska Strakhova Grupa (Ukrainian Insurance Group – UIG).

After the relevant approvals have been granted by the authorities, the shares will be
taken over from companies affiliated with the Ukrainian UkrGasBank. The parties have agreed to keep the purchase price confidential. It is planned that these companies are going to sell the remaining shares within the next five years.

“Ukraine has shown a particularly dynamic economic development for quite some time now. This transaction allows us to further expand our position in the diversified Ukrainian market”, said CEO Gunter Geyer. “The Ukrainian Insurance Group forms a logical supplement to the existing companies. It has a strong corporate customer business and will focus especially on the retail business in the future.”

UIG, which has its headquarters in Kiev, has been operating in the Ukrainian insurance market since 2002. In the first three quarters of 2007, UIG generated a premium volume of approx. EUR 23 mln.

In motor insurance, UIG ranks among the top 10 in the Ukrainian insurance market. In addition to motor third party liability insurance it also focuses on sales in the strongly growing motor comprehensive insurance segment.

The Vienna Insurance Group has already been operating in the Ukrainian insurance market since 2004. Within the scope of its multi-brand policy, the Vienna Insurance Group up to now was represented by a total of three companies – the two non-life insurance companies Kniazha and Globus, as well as the life insurance company Jupiter. Together, these companies generated a premium volume of almost EUR 10 mln for the Vienna Insurance Group in Ukraine in the first half of the year. In motor third party liability insurance, the companies of the Vienna Insurance Group took 2nd position in the market for this line, with a market share of more than 9%.