Austria-based Vienna Insurance (VIG) has entered into an agreement with Skandia Retail Europe Holding, a member of Old Mutual Group, to purchase its Polish life insurer firm Skandia Zycie (Skandia Poland).

Terms of the transaction, which is subject to the receipt of certain regulatory and competition authorities, have not been disclosed.

With more than 14 years presence in Polish market, Skandia Poland sells its products, including unit-linked life insurance policies, primarily through financial intermediaries such as banks, insurance brokers and insurance platforms.

In the first half of 2013, Skandia Poland reported premiums written of €45m.

VIG CEO Peter Hagen said, "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," Hagen concluded.

In Poland, VIG is represented by three non-life insurance companies, Benefia, Compensa and Interrisk, and three life insurers, Benefia Life, Compensa Life und Polisa Life.