The figures from recent years confirm that the Vienna Insurance Group is successfully putting its strategy into practice. In so doing, the average growth in premiums of 19.0% per year over the time period 2004 – 2007 was even exceeded by the profit before taxes, which grew on average by 41.0% per year in the same period. The Vienna Insurance Group thereby clearly exceeded its projections.
In 2007, the Vienna Insurance Group fortified its excellent position in Central and Eastern Europe through significant acquisitions, now being active in 23 countries. Following its entry into the insurance markets of Albania, Macedonia and Turkey at the beginning of 2007, since December of 2007 the three EU countries of Estonia, Latvia, and Lithuania have also now become part of the Vienna Insurance Group’s markets.
The following companies became recently members of the Vienna Insurance Group:
- TU Polski Związek Motorowy S.A. VIENNA INSURANCE GROUP (TU PZM)
Acquisition of more than 90% of the Polish non-life insurer
- Sigma Sh.a.
Simultaneous entry into the Albanian and Macedonian insurance markets through a purchase of over 75%
- Ray Sigorta A.Ş.
Entry into the Turkish insurance market through an approximately 74% purchase
- SC Asigurarea Romaneasca Asirom S.A.
Acquisition of approximately 98% of one of the leading Romanian insurance companies
- Ukrainska Strakhova Grupa (USG)
Expansion of activities in Ukraine through a 62% purchase
- Seesam Life Insurance SE
Entry into the three Baltic markets of Estonia, Latvia and Lithuania through a 100% acquisition
- FinLife TUnZ S.A.*
Strengthening of life insurance in Poland through a 100% acquisition
Increased stake in TBIH
Since April 2007, the Vienna Insurance Group has held a direct share of 60.00% in TBIH Financial Services Group N.V. (TBIH), thus converting its previous 40.00% stake in Kardan Financial Services B.V. (KFS). TBIH is a financial services group specializing in Central and Eastern Europe, headquartered in Amsterdam. As part of the share increase, TBIH was restructured and now focuses exclusively on the insurance and pension fund business.
As of the closing date of the financial statements, TBIH holds ownership interests mainly in the following insurance companies:
- Bulgaria: Bulstrad Group
(Bulstrad 96.83%, Bulstrad Life 93.94%)
- Croatia: Helios (100.00%)
- Romania: Omniasig Life (49.99%)
- Turkey: Ray Sigorta A.Ş. (74.26%)
- Albania: Sigma Sh.a. (>75.00%)
- Georgia: GPIH (50.00%), IRAO (75.00%)
Kardan Financial Services B.V. holds a minority interest of 40.00% in TBIH. The Vienna Insurance Group iscontinuing to manage TBIH in close cooperation withthe Kardan Group.
Founding: Group-owned reinsurance
In 2008, the Vienna Insurance Group will establish a Group-owned reinsurance company with headquarters in Prague. With this step, the Vienna Insurance Group is sending a clear signal that the region of Central and Eastern Europe is a core market for the company, with outstanding growth potential. The reinsurance company will have equity capital of EUR 100 million and should achieve a premium volume of about EUR 300 million over the next two to three years.
Supported by the Vienna Insurance Group’s many years of experience in setting up and co-developing local insurance markets in the CEE region, the new reinsurance company intends to offer options in addition to the product offerings of traditional reinsurers. These will involve partnered reinsurance solutions offered even to companies not part of the Vienna Insurance Group.
* subject to approval of authorities