VIG’s acquisition of AXA Serbia reinforces its CEE growth strategy

Vienna Insurance Group (VIG) has reiterated its commitment to its growth strategy in Central Eastern Europe (CEE) following its recent acquisition of AXA’s life and non-life insurance companies in Serbia.

The Austrian-based insurance group recently completed its acquisition of non-life AXA Nezivotna Osiguranje and life insurer AXA Zivotno Osiguranje (AXA Serbia), which will increase its market share in Serbia to around 11.5 percent.

As part of its strategy announced in the spring of 2016, VIG identified four CEE markets where it wants to increase its market share to at least 10 percent over the medium term (three to five years), which are Poland, Hungary, Croatia and Serbia.

“The quality of life is improving steadily in CEE markets, and this also generates an increasing demand for insurance solutions. VIG aims to take advantage of this potential,” said Elisabeth Stadler, CEO of VIG.

VIG earns approximately half of its premiums in the CEE region, and in terms of profits this rises higher than 50 percent.

The insurer is maintaining its business focus on the region, and has examined 25 markets for further potential growth.

“Based on positive economic forecasts, Serbia is a clear growth and investment market for VIG. The two AXA companies are a very good fit for our portfolio, and their acquisition will allow this goal to be achieved far sooner,” Stadler continued.

With this acquisition of AXA Serbia, VIG has already reached this goal of minimum 10 percent market share in Serbia.

Peter Höfinger, the managing board member responsible for Serbia at VIG, added: “The two companies have a range of products in the casualty, motor, household and life insurance business.

“This is similar to the products we are already offering very successfully through our existing company Wiener Städtische Osiguranje. This fits very well with our sales strategy and moreover, we will have the opportunity to significantly strengthen our sales force through this acquisition. AXA Serbia also counts to the leaders in the future-oriented area of digitalisation.”