April 24 (SeeNews) - Slovenia's biggest insurer, Zavarovalnica Triglav [LJE:ZVTG], said on Tuesday its subsidiary Triglav INT signed a deal with the Croatian unit of Austria's Raiffeisen Bank to purchase a majority stake in the Croatian pension insurer Raiffeisen Mirovinsko osiguravajuce drustvo.
Triglav Group will acquire a 75% stake in the Croatian company, minus one share, through its subsidiary for the management of insurance units outside of Slovenia. The Zagreb-based Raiffeisen Bank Austria will remain the owner of 25%, plus one share, Triglav said in a Ljubljana bourse filing.
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The agreement was signed under suspensive conditions, requiring the approval of the regulators.
"Through the acquisition of the said company, the Triglav Group enters the Croatian pension insurance market, thereby expanding its operations and strengthening its position in Croatia in accordance with its development and growth strategy," Triglav noted.
The new member of the Triglav Group is the only company that pays out pension insurance in Croatia, where it has successfully operated since 2002, Triglav said.
At the end of 2017, Raiffeisen Mirovinsko osiguravajuce drustvo managed the funds in the amount of around 70 million euro ($85.4 million) on behalf of approximately 12,000 beneficiaries.
The Croatian pension system is based on three pillars. Upon the retirement or the fulfilment of certain conditions, the funds of the insured persons are transferred from the second and third pillars to Raiffeisen Mirovinsko osiguravajuce drustvo, which manages these funds and pays out pension annuities.
"In view of the demographic trends and the confirmed system reforms in the coming years, a substantial increase in the number of new clients whose funds will be transferred from the second pillar is expected," Triglav commented.
($=0.8194 euro)
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