VIG’s Remaining Markets segment includes Albania, Bosnia-Herzegovina, Bulgaria, Croatia, Estonia, Georgia, Germany, Hungary, Latvia, Liechtenstein, Lithuania, Macedonia, Serbia, Turkey and the Ukraine. The Montenegro and Belarus markets were not included in the VIG consolidated financial statements.
A number of special events in the countries in the Remaining Markets segment are presented below.
Estonia: 20th anniversary of Compensa Life
2013 was a special year for Compensa Life, which used its twentieth anniversary to celebrate VIG’s success in the Baltic countries. Compensa Life was established in 1993 under the name Seesam and is one of the oldest life insurance companies in Estonia. The company operates in all three Baltic States. Its headquarters are in Estonia and it operates branch offices in Latvia and Lithuania. VIG acquired the company in 2008 and changed its name to Compensa a year later.
The company’s twentieth anniversary was not the only reason for celebration in 2013, as business development was also highly positive. Compensa Life’s premium volume in the Baltic States recorded an increase of more than 30%.
Croatia: successful completion of the merger between Kvarner and Helios
The two Croatian companies Kvarner and Helios were merged in 2013 and the resulting company renamed Wiener Osiguranje. The merger was performed to create a strong company to meet the challenging market conditions. VIG is now represented by two companies in the Croatian market. Wiener Osiguranje offers life and non-life products, while Erste Osiguranje operates in the life insurance market only and distributes its products exclusively through local Erste Group branches.
Serbia: 10th anniversary of Wiener Städtische Osiguranje
Anniversary celebration for Wiener Städtische Osiguranje, Serbia
More than ten years have passed since Wiener Städtische Osiguranje was established and began operations in Serbia. Today it holds second place in the life insurance market with a market share of 21.6%. The tenth anniversary celebration in February 2013 took a look back at the path followed from the founding of the company until today. More than 750,000 policies have been issued since that time and around 50 branch offices were opened country-wide. VIG had around 1.270 employees in Serbia in 2013, compared to 80 in its founding year. They serve approximately 200,000 customers and are dedicated to further improving the company’s market position in the future.
Hungary: acquisition of AXA Biztosító
Vienna Insurance Group operates in the Hungarian market through the two companies Union Biztosító and Erste Biztosító and considers this country to be one of its core markets. An agreement to acquire all of the shares of AXA Biztosító was concluded in December 2013 – subject to approval by the regulatory and antitrust authorities – and allows VIG to expand its market position in Hungary. AXA Biztosító operates nationwide and focuses on the life segment, in particular unit-linked life insurance products. Distribution is performed by the insurer’s own sales company with around 120 employees as well as through brokers and banks.
Moldova: planned market entry
At the end of January 2014, VIG announced that it planned to open up a new insurance market by acquiring the Moldovan insurance company Donaris. The company was established in 1998 and has its registered office in Chisinau, the capital city of Moldova. Its market share of 8.4% puts it in fourth place in the Moldovan non-life market, where it focuses on the motor vehicle line of business. The acquisition is subject to official approval.