AXA is to exit the Serbian market and sell both its life and savings and property and casualty operations in Serbia to Vienna Insurance Group (VIG).
Under the terms of the agreement, Vienna Insurance Group AG would acquire 100% of the life (AXA ivotno osiguranje Ado) and non-life (AXA Neivotno osiguranje Ado) entities.
The parties agreed not to disclose the terms and conditions of the transaction.
The two AXA companies generated slightly more than 12m premiums in 2015, have more than 106,000 customers and a market share of 1.8%.
Vienna Insurance Group’s existing Group company, Wiener Städtische Osiguranje, generated more than 61.6m premiums in 2015, corresponding to an increase of 7%. This represents a market share of 9.7% for the company.
The purchase will therefore increase VIG’s market share in Serbia to around 11.5%.
VIG’s market share
Together with the two AXA companies to be acquired, VIG is close to the number 3 and the fourth largest insurer on the Serbian insurance market.
VIG CEO Elisabeth Stadler said based on positive economic forecasts, Serbia is a clear growth and investment market for VIG.
She said: "Serbia is one of the four markets where we aim to reach a market share of at least 10 percent over the medium term. The two AXA companies are a very good fit for our portfolio, and their acquisition will allow this goal to be achieved far sooner."
Completion of the transaction is subject to customary closing conditions, including the receipt of regulatory approvals.