Albania
Acquisition of majority interest in Sigma Sh.a. completed
The Vienna Insurance Group successfully completed its entry into the Albanian insurance market in mid-September 2007. After all official approvals were obtained, the TBIH Financial Services Group N.V. (TBIH) obtained a majority interest of 75.00% plus one share of Sigma. In addition, a contractual agreement was reached with the remaining minority shareholders, under which they will have the right to sell 12.50% of the shares to TBIH in the first half of 2011 and the remaining shares in the first half of 2012.
Sigma, founded in Tirana in 1998, is active in the property insurance business. The company has a subsidiary in Macedonia, a branch office in Kosovo, and has about 160 employees in total.
Estonia, Latvia and Lithuania
Acquisition of Seesam Life Insurance SE
In December 2007, the Vienna Insurance Group entered the Baltic insurance markets through the signing of a purchase agreement for acquisition of 100.00% of Seesam Life Insurance SE (Seesam). The seller was the Finnish Suomi Mutual Life Assurance Company. The Seesam Life Insurance SE, with headquarters in the Estonian capital Tallinn, was established in 1993. Its life insurance business subsequently expanded into the Latvian (1999) and Lithuanian (2001) markets.
Seesam has more than ten branch offices in these three countries, with about 200 employees. Besides classical life insurance, it also offers unit-linked policies and term insurance.
Turkey
Acquisition of majority interest in Ray Sigorta A.Ş.
When the purchase by TBIH Financial Services N.V. (TBIH) of 58.20% of the shares of Ray Sigorta A.Ş. closed in early June 2007, the Vienna Insurance Group successfully completed its entry into the Turkish insurance market. The shares were acquired from the former majority owner, Turkish company Doğan Şirketler Grubu Holding A.Ş. (Doğan), which continues to hold around 20% of the shares of Ray Sigorta A.Ş. Furthermore, TBIH made a public takeover offer (valid: 6–20 August) for around 22% of the shares of Ray Sigorta A.Ş. in circulation in August, and now owns around 74.26% of the company.
Ray Sigorta A.Ş. is a listed Turkish insurer based in Istanbul. The company, which was founded in 1958, is active in the non-life insurance segment, with an emphasis on motor vehicle insurance.
Ukraine
Expansion of market position through purchase of Ukrainska Strakhova Grupa
The Vienna Insurance Group also significantly expanded its involvement with the Ukrainian insurance market, thereby continuing its course of expansion in Central and Eastern Europe. In November 2007, TBIH Financial Services Group N.V. (TBIH) signed a contract to purchase 62.00% of the share capital of Ukrainska Strakhova Grupa (USG).
USG, which is headquartered in the capital Kiev, has been active on the Ukrainian insurance market since 2002. Of its approximately 460 employees, around 360 are active in sales. With 50 branches and an additional 20 regional sales offices, the USG is represented throughout the country. Along with motor vehicle liability insurance, it also focuses on sales in the rapidly growing motor third party liability insurance segment.
More shares acquired in the Ukrainian company Kniazha
As part of a capital increase, the Vienna Insurance Group intensified its activities in the Ukrainian insurance market and boosted its interest in Kniazha from the previous just above 50.01% to 80.00%.
