In January 2009, the Vienna Insurance Group and ARAG Allgemeine Rechtsschutz-Versicherungs-AG (ARAG) signed a letter of intent relating to cooperation in the legal protection business. The goal is to develop a joint business model for the Austrian market and for those countries in the CEE region where the Vienna Insurance Group is represented. Negotiations are scheduled to be completed by the summer of 2009.
The Vienna Insurance Group and ARAG have reached agreement on developing ARAG Austria into the leading supplier of legal protection insurance in Austria. To this end, Vienna Insurance Group will enter into a joint venture with ARAG in Austria, with the Vienna Insurance Group contributing its entire Austrian legal protection insurance portfolio to the joint venture company, ARAG Austria. At the same time, the new company ARAG Austria will also provide a launching pad for tapping the dynamic growth markets of the CEE region in the area of legal protection products.
The Austrian legal protection insurance portfolio that the Vienna Insurance Group is to contribute to the new company ARAG Austria has a volume in excess of EUR 40 million. As a result, the new company will manage a total premium volume of around EUR 84 million, making it the number 1 company in the market for legal protection insurance.