Vienna Insurance Group (VIG) has signed an agreement to acquire Axa’s life and non-life operations in Serbia for an undisclosed sum.
VIG will acquire non-life firm Axa eživotno osiguranje Ado and life company Axa Životno osiguranje Ado.
With around 106,000 customers and market share of 1.8%, the two companies generated around €12m premiums in the last year.
The transaction is subject to customary closing conditions, including the receipt of regulatory approvals.
The deal allows VIG to become the third or fourth largest insurer in the Serbian insurance market.
VIG’s Wiener Städtische Osiguranje generated around €61.6m premiums in the last year.
VIG CEO Elisabeth Stadler said: "Based on positive economic forecasts, Serbia is a clear growth and investment market for VIG. Serbia is one of the four markets where we aim to reach a market share of at least 10 percent over the medium term.
"The two AXA companies are a very good fit for our portfolio, and their acquisition will allow this goal to be achieved far sooner."
VIG Serbia managing board member stated Peter Höfinger said: "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."
VIG provides insurance services in Austria, the Czech Republic, Slovakia, Poland, Romania, Bulgaria, Croatia, Hungary, Serbia and Ukraine.
Image: Vienna Insurance Group to acquire Axa’s life and non-life firms in Serbia. Photo: courtesy of Vienna Insurance Group / Robert Newald.