The International Finance Corporation (IFC), a member of the World Bank Group, will acquire a stake in Knyazha Vienna Insurance Group (Knyazha VIG) and Ukrainian Insurance Group (USG) (both based in Kyiv), owned by Vienna Insurance Group (VIG), through a capital increase.
According to a press release from Knyazha VIG, subject to regulatory approvals, IFC will acquire approximately 20% in each of the two VIG companies, USG and Knyazha VIG.
The relevant agreement has been signed by IFC, VIG Holding, and the two Ukrainian companies.
“Thanks to the support and extensive expertise of IFC as a key partner, VIG plans to promote the development of the Ukrainian insurance market and further strengthen its position in Ukraine. IFC will provide support in the development of new products, sales development, and digitalization,” the statement said.
In addition, it is noted that with the support of the IFC, the companies plan to expand their product portfolio and accelerate digitalization. Building on its existing partnership with AON and Lloyd’s, VIG also intends to play an active role in the reconstruction of Ukraine after the end of the war.
“We have been working with the IFC since the end of 2022, when they acquired a stake in our Bulgarian pension fund Doverie. In Bulgaria, the main focus is on developing the pension business. In Ukraine, however, expanding insurance coverage is key to the country’s future reconstruction. Together with the IFC and our existing partners AON and Lloyd’s, we are preparing to play an active role in the country’s renewal process,” emphasized Peter Göflinger, Deputy CEO of Vienna Insurance Group.
According to Harald Riener, member of the Vienna Insurance Group’s Executive Board responsible for the Ukrainian market, Ukraine is and will remain part of VIG’s key market in Central and Eastern Europe.
“We are extremely proud of the resilience of our Ukrainian colleagues, whose unwavering dedication ensures the stability and profitability of companies even in the difficult conditions of war. Together with IFC, we are combining the experience of our teams and partners to offer highly sought-after insurance solutions for the country’s reconstruction after the end of the war, which we all sincerely hope for,” he said.
VIG has been operating in Ukraine for 21 years. The company currently ranks second in the market with an 11% share. Three VIG companies in Ukraine — USG, Knyazha VIG, and Knyazha Life VIG — achieved insurance premiums of EUR128 million in 2024.
