Vienna Insurance Group has entered into an agreement to acquire 100% interest in Latvian insurance firm Baltikums.

Baltikums is a non-life insurer, which is claimed to have a 8% market share in the insurance market of Latvia.

The firm also carries out operations through its branches in Lithuania and Estonia. It generated premiums of around €20m in the financial year 2014.

With around 250 employees, the company offers products, including motor and liability insurance, health and travel insurance.

Vienna Insurance Group CEO Peter Hagen said: "VIG has grown on average by around 30 percent per year in the past five years in the Baltic insurance market.

"The acquisition of Baltikums AAS now gives us the opportunity to continue the prosperous path of our teams. We will take advantage of the attractive market potential and further strengthen our position."

The acquisition of Baltikums is subject to regulatory approvals, said Vienna Insurance.

Through its Compensa Life, Vienna Insurance is already offering products in the Latvian life insurance segment. It is also providing non-life insurance products in the country through Compensa Poland.