The FINANCIAL — Vienna Insurance Group AG Wiener Versicherung Gruppe (VIG) has concluded an agreement with Skandia Retail Europe Holding GmbH, member of Old Mutual Group, to acquire 100 percent of shares in Polish life insurance company Skandia Zycie TU S.A. (Skandia Poland).
It is agreed not to disclose the purchase price. The acquisition is subject to approval by the relevant regulatory and competition authorities, according to Vienna Insurance Group.
“This purchase marks a very satisfying and important step in our development in our core market Poland which has high growth potential. The addition of the Skandia Poland product range will significantly expand our portfolio of unit-linked life insurance policies. The company also has an extensive sales network that will provide VIG with an excellent opportunity to attract new customer groups, as well as enhance our long-term position as one of the country’s leading insurers,” said Peter Hagen, CEO of Vienna Insurance Group.
“We are very pleased to have reached this agreement with VIG. Our decision to sell Skandia Poland is driven by our strategic commitment to simplify our operations in Europe and focus on a select number of core growth markets. Skandia Poland is a profitable business which is expected to continue to thrive within VIG. We look forward to working with them to ensure a smooth transfer of the business for our customers, distributors and staff,” said Paul Feeney, CEO of Old Mutual Wealth.
In the first half of 2013 Skandia Poland recorded premiums written of around EUR 45 million, making it the number 14 on the Polish life insurance market. Its premium income totalled about EUR 91 million in 2012. Skandia Poland has been operating on the Polish market for 14 years and sells its products – primarily unit-linked life insurance policies – particularly through financial intermediaries such as banks, insurance brokers and insurance platforms. The company currently employs 150 people.
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