Vienna Insurance Group (VIG) has agreed to acquire an additional 35% stake in its Hungarian insurance business from Corvinus. The companies did not reveal the financial terms of the deal.
The deal will increase the Austrian insurer’s stake in VIG Magyarország Befektetesi Zrt to 90% from 55%.
Subject to approval by the Hungarian National Bank, the deal is slated to be closed by the end of November 2023.
Corvinus will continue to hold the remaining 10% stake in the business through its investment management company, Corvinus International Investments Zrt.
In Hungary, as in all our countries, we are pursuing a long-term market strategy. With the buyback, we are emphasising our long-term commitment to the Hungarian market and are looking forward to continuing the strategic partnership with the Hungarian governmentHartwig Löger, VIG CEO, Chairman of the Managing Board
Last year, VIG acquired Dutch insurance company Aegon group’s Hungarian companies for €620 mn.
VIG acquired Aegon Hungary Holding B.V. and Aegon Hungary Holding II B.V., which hold a 100% stake in Aegon’s Hungarian arm.
With the closing in Hungary, VIG will achieve our target of being among the top three in the market by the end of 2025 already in 2022 and take over the market leadership in Hungary.
VIG, which has been operating in Hungary since 1996, has a market share of more than 19%.
In the first half of 2023, VIG’s two operating insurance companies Alfa and UNION reported a premium volume of €403 mn.
VIG achieved gross written premiums in the amount of EUR 7,306.7 million in the first half of 2023. This represents a significant increase of 10.8% compared to the previous year’s figure of EUR 6,595.1 million. All reportable segments show premium growth compared to the first half of the previous year. Poland, Extended CEE and Special Markets segments performed particularly well.