Following approval by the relevant competition and local regulatory authorities in Austria, Croatia, the Czech Republic, Slovakia and Hungary, the Vienna Insurance Group has completed the acquisition of the insurance operations of Erste Group Bank in Austria and in central and eastern Europe. The total value of the transaction amounts to EUR1.45 billion.
It is reported that a crucial part of the deal is a long-term distribution agreement, which provides the Vienna Insurance Group with access to the nationwide sales network of Erste Group, consisting of more than 16 million customers and over 2,900 branches. In return, Erste Group will obtain access to the approximately 10 million customers of the Vienna Insurance Group in those countries in which both partners are currently active.
The mutual distribution agreement has been concluded for a 15-year period and forms the basis for a close sales co-operation between Erste Group and Vienna Insurance Group. Both corporate groups are committed to preferentially distribute the products of the other partner via their sales networks. The already concluded local distribution agreements forming the basis of the co-operation between Vienna Insurance Group companies and Erste Group companies underline expectations with respect to the positive contributions of the new group companies to the overall results of the Vienna Insurance Group.
With the conclusion of this transaction, Vienna Insurance Group has an approximately 95% holding in each of the following: Austria’s Sparkassen Versicherung Aktiengesellschaft; Czech Republic’s life insurance provider, the Pojist ovna Ceske sporitelny; Slovakia’s Poist ovna Slovenskej sporitel ne; Croatia’s Erste Sparkassen osiguranje dd za zivotno osiguranje and Hungary’s Erste Sparkassen Biztosito Zartkoruen Mukodo Reszvenytarsasag.
In Romania, the Vienna Insurance Group acquires, subject to official approvals, approximately 88.5% of the shares in the life insurance company BCR Asigurari de Viata and the non-life insurer BCR Asigurari. Banca Comerciala Romana will retain 5% of the Romanian life insurer. The remaining holdings of both companies are owned by minority shareholders.
Erste Group has no insurance companies in Serbia and Ukraine that are to be sold in line with this transaction. However, a distribution agreement will also be concluded with the companies of Erste Group and the insurance companies of Vienna Insurance Group in these countries.