Vienna Insurance Group made preparations for mergers in three countries in 2011. These are expected to be concluded in the first half of 2012.
In Bulgaria, a merger is planned for the two Bulgarian non-life insurance companies Bulstrad Non-life and Bulgarski Imoti Non-life. After the merger, Vienna Insurance Group as the leading non-life insurer in Bulgaria will offer its services under the Bulstrad brand.
In the Polish non-life market, VIG plans to merge InterRisk and PZM in order to further streamline its business activities. The two companies will use the InterRisk name to market their products nationwide in the future.
Vienna Insurance Group is also working on reorganising its investment in Romania. The merger of the two non-life insurers Omniasig Non-life and BCR Non-life was begun in August 2011.
The highly successful multi-brand strategy will be maintained, as a rule. If, however, there is an opportunity to realise synergies (as in the cases above), a merger is the right path to follow. By merging companies, Vienna Insurance Group makes sure that local distribution structures are efficient, thereby ensuring its earning power in those markets.