The FINANCIAL -- Subject to approval by the local authorities and the relevant boards, Vienna Insurance Group (VIG) plans to merge its Czech subsidiary Pojišťovna České spořitelny (PČS) with its Group company Kooperativa pojišťovna with effect from 1 January 2019.
The decision to merge the two Group companies in its second-largest market represents the next step in VIG’s strategy of bundling competences with a view to strengthening the bancassurance business. “Thanks to the excellent, long-standing strategic partnership of our Group companies Kooperativa and Pojišťovna České spořitelny with Erste Group subsidiary Česká spořitelna, we play a significant role in the Czech bancassurance market. We aim to enhance our position by further expanding the non-life business,” explained Vienna Insurance Group CEO Elisabeth Stadler.
Česká spořitelna customers will benefit from an extended product offer, notably in non-life insurance. This is also in line with the aim of enhancing customer service in this segment, and streamlining administrative processes, according to Vienna Insurance Group.
VIG – the clear number one
Vienna Insurance Group marked its successful entry into the CEE region with the establishment of Kooperativa in the former Czechoslovakia in 1990. “Kooperativa has developed into one of the Group’s flagship companies in every respect. Recently, Kooperativa was again named one of the country’s leading businesses, and the number one finance-sector enterprise, taking second place in the high-profile Czech Top 100 ranking,” commented Elisabeth Stadler, underlining the Czech Group company’s prominent standing.
In addition to Kooperativa and Pojišťovna České spořitelny, VIG is represented in the Czech Republic by Česká podnikatelská pojišťovna (ČPP). VIG is currently the clear market leader, with a market share of 32.3 percent. In the first three quarters of 2017, the three Czech subsidiaries reported combined premium income of around EUR 1.2 billion and total profit (before taxes) of about EUR 114 million. The combined ratio was an excellent 96.8 percent.