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.
Vienna Insurance Group (VIG) intends to enter the top three leaders of the Ukrainian insurance market, and is mulling the possibility of acquiring another risk insurance company. “We came here to stay. Our goal is to be a leader in the insurance market, to enter the top three,” member of the board of Vienna Insurance Group Franz Fuchs said at the first joint press conference of Ukrainian insurance companies that are part of VIG.
At the same time, he noted to date, according to the group, VIG ranks fourth in the insurance market of Ukraine.
He also noted that VIG adheres to a conservative mode of management, has enough funds for investment and Ukraine could become one of the countries in which the money will be invested.
He stated the insurance market of Ukraine is very complicated, with confusing legislation and unsettled communications.
“More than 100 insurance companies work in the market, but if you look at how they really work, then this figure will be reduced to 23-27. There are 45 million people in Ukraine, and if everyone pays EUR9-10 for insurance, then we have something to work on,” he stressed.
According to the expert, many investors leave the Ukrainian market, because they do not see short-term advantages. VIG has the plan of development for three, five and seven years, because there are millions of uninsured cars and houses in Ukraine.
Vienna Insurance Group (VIG) acquires 100% of the Polish insurance company Gothaer Towarzystwo Ubezpieczen (Gothaer TU), according to the website of Ukrainian Insurance Group (Kyiv), which is part of VIG.
The contract of purchase and sale for the acquisition of this subsidiary of the German company Gothaer Finanzholding AG was signed on June 6, 2018. The purchase must be approved by the local authorities.
The Polish insurance subsidiary Gothaer Group is based in Warsaw. It works in the non-life insurance segment, and mainly through intermediaries and agents. Gothaer TU has six branches and an extensive network of agents. In 2017 the company formed a premium volume of about EUR 150 million. Gothaer TU serves more than 632,000 customers and manages about 2 million insurance policies. Currently the company has 530 employees.
Vienna Insurance Group is the leading insurance group in Austria, as well as central and eastern Europe. The group includes 50 companies in 25 countries.