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.
The Vienna Insurance Group (VIG) reported a 10.5% increase in pre-tax profit to €531.4 million in the first half of 2025 compared to the same period in 2024, partly due to significantly lower overall claims development.
According to the Reinsurance News website, citing data from the insurer, gross written premiums also increased to €8.57 billion (up 8.7%).
According to VIG, all areas of its business recorded growth, with the highest rates observed in life insurance (+32.7%) and life insurance linked to investment funds and indices (+26.4%).
Meanwhile, health insurance grew by 15.0% and motor vehicle liability insurance by 12.5%.
VIG also added that premiums in special markets grew by 19%, with Turkey (23.8%), Poland (15.2%), and the wider Central and Eastern Europe region (10.1%) being the main growth drivers, with Romania (+14.4%) and the Baltic states (+10.7%) making the largest contributions to this figure.
At the same time, insurance premiums grew by 6.7% in the Czech Republic and 5.2% in Austria.
As reported, VIG’s net combined ratio for the first half of 2025 improved to 91.9% compared to 93.3% in the first half of 2024. This is due to significantly lower costs caused by weather conditions and natural disasters during the period.
In Ukraine, VIG is represented by PJSC “IC ”Knyazha Vienna Insurance Group“, PJSC ”IC “Ukrainian Insurance Group” and PJSC “IC ”Knyazha LIFE Vienna Insurance Group”.
In January-June 2024, Vienna Insurance Group (Austria) collected gross written premiums (GWP) of EUR 7.887 billion, which is 7.9% more than in the previous year.
According to VIG, premiums increased in all segments and all lines of business. Underwriting income increased to EUR 5.9 billion (+10.0%), and profit before tax rose to EUR 481.0 million (+3.9%).
Special Markets (Germany, Georgia, Liechtenstein and Turkey) developed particularly well, with premium growth of 32.0%, Extended CEE (Albania including Kosovo, the Baltic States, Bosnia and Herzegovina, Bulgaria, Croatia, Moldova, North Macedonia, Romania, Serbia, Slovakia, Ukraine and Hungary) with premium growth of 11.5% and Austria with premium growth of 6.5%.
Technical income from insurance contracts (income from insurance services) increased to EUR 5.919 billion (+10.0%). The increase was primarily driven by growth in property and casualty insurance. All segments recorded growth, with significant growth in Special Markets (+21.5%), Extended CEE (+14.5%), Poland (+14.0%) and Austria (+6.5%). The Special Markets segment was driven by growth in Turkey, and the Extended CEE segment by growth in Romania, Slovakia, the Baltic States, Bulgaria and Hungary.
Profit before tax increased to EUR 481.0 million in the first half of 2024. Profit growth was 3.9%, mainly driven by Austria, Poland and the expanded CEE region.
The annualized operating return on equity improved to 16.2% (15.1% at the end of 2023), and the net combined ratio improved to 93.3% in the first six months of 2024 (first half of 2023: 94.0%), primarily due to the positive development of the loss ratio.
According to the report, VIG’s solvency ratio at the end of the first half of 2024 remains at a very high level of 265% (including transitional measures) and emphasizes the group’s extremely high capital strength.
In 2023, the insurance company “Knyazha Vienna Insurance Group” (Kyiv) collected UAH 1.992 billion of insurance payments, which is 62.13% more than in 2022, according to the website of the rating agency “Standard Rating” in the information on the confirmation of the financial strength rating / credit rating of the insurer at the level of “uaAA+” for the specified period.
According to the RA website, during this period, the insurer’s revenues from individuals increased by 58.98% to UAH 1.427 billion, and from reinsurers – by 94.23% to UAH 3.970 million. At the end of 2023, the share of individuals in the company’s gross premiums amounted to 71.65%, and the share of reinsurers – 0.20%.
In 2023, insurance payments sent to reinsurers increased by 68.76% compared to 2022 – up to UAH 698.056 million. Thus, the ratio of participation of reinsurance companies in insurance premiums increased by 1.37 p.p. to 35.04%.
The company’s net written premiums increased by 58.77% to UAH 1.294 billion, while earned premiums increased by 40.54% to UAH 1.122 billion.
The volume of insurance payments and reimbursements made by Knyazha VIG in 2023 increased by 55.39% compared to the same period in 2022, to UAH 634.159 million. The claims ratio decreased by 1.38 p.p. to 31.83%.
RA also notes that in 2023, the insurer’s operations were profitable, and its financial results improved significantly. In particular, the financial result from operating activities amounted to UAH 29.920 million, and net profit amounted to UAH 80.540 million, while in 2022 the insurer received a net and operating loss.
As of January 1, 2024, assets increased by 33.56% to UAH 1.782 billion, equity – by 25.19% to UAH 448.703 million, liabilities showed an increase of 36.63% to UAH 1.334 billion, cash and cash equivalents increased by 0.75% to UAH 50.045 million.
The agency also notes that as of January 1, 2024, the insurer made financial investments in the amount of UAH 939.367 million, consisting of government bonds (73.78% of the investment portfolio), as well as deposits in banks with a high credit rating (26.22% of the portfolio).
PrJSC “IC “Knyazha Vienna Insurance Group” is a part of IFG Vienna Insurance Group Ukraine, the main shareholder of which is Vienna Insurance Group AG Wiener Versicherung Gruppe (Austria). The group also includes PrJSC IC Ukrainian Insurance Group – 100%, PrJSC IC Knyazha Life Vienne Insurance Group – 97.8%, LLC USG Consulting – 50.7%, LLC VIG Services Ukraine – 78.7%, LLC Assistance Company Ukrainian Assistance Service – 100%.
INSURANCE COMPANY, Knyazha, PAYMENTS, premiums collection, VIG
The shareholders of Ukrainian Insurance Group on December 19 approved an agreement to merge Globus Insurance Company with Ukrainian Insurance Group (both based in Kyiv), the insurer has reported in the public information base of the National Commission on Securities and the Stock Market. It was also decided to issue shares to convert the shares of Globus: 694,001 common registered shares with a nominal value of UAH 100 per share in the amount totaling UAH 69.400 million.
As reported, Ukrainian Insurance Group and Globus are part of Vienna Insurance Group, one of the largest insurance groups in Central and Eastern Europe.
Ukrainian Insurance Group has been operating in the Ukrainian market of conventional insurance since 2000. Globus insurance company with additional liability was founded in 1994. Both companies specialize in risk insurance.
In addition to these two companies, the Vienna Insurance Group in Ukraine also includes Kniazha Vienna Insurance Group and Kniazha Life Vienna Insurance Group.
The volume of premiums received by Vienna Insurance Group (VIG) in 2018 amounted to EUR9.7 billion, which is 3% more than a year before, and pretax profit was EUR485 million (up by 10%), according to the website of Globus insurer (Kyiv), part of the group. According to the report, the combined ratio at the end of last year was 96% (a decrease of 0.7 percentage points), the solvency ratio stood at 239% (an increase of 19 percentage points), while financial result was EUR1.037 billion (12% more).
The report also notes that the group intends to use its high capitalization for further growth. VIG’s supervisory board approved the board’s proposal to increase dividends from EUR0.90 to EUR1 per share.
As reported, Vienna Insurance Group in Ukraine is represented by four insurance companies: Globus, Ukrainian Insurance Group, Kniazha Vienna Insurance Group and Kniazha Life Vienna Insurance Group.
