BANJA LUKA (Bosnia and Herzegovina), February 12 (SeeNews) – The Vienna Insurance Group (VIG) said on Monday it closed the acquisition of the Bosnian subsidiary of Merkur International Holding AG on February 8, following approval by the local authorities.
As a result, VIG moves up from eighth to third market position in Bosnia and Herzegovina, it said in a statement.
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Last week, the Sarajevo Stock Exchange reported that 6,000 shares of Merkur Osiguranje have changed hands for a total of 25.4 million marka ($15.9 million/13 million euro).
VIG said the purchase will enable the company to extend its product range in Bosnia and Herzegovina, which has so far mainly been centred on the non-life business. Represented by two Group companies, VIG is now ranked second in the country’s life insurance segment, with a market share of over 25%, it noted.
A key aspect of the Merkur acquisition was the company’s regional presence in the Bosnia's Federation entity.
The Federation and the Serb Republic are the two entities that form Bosnia and Herzegovina.
In combination with Group company Wiener Osiguranje, which was set up in 2011 and operates primarily in the Serb Republic, the Vienna Insurance Group has now significantly widened its scope in Bosnia and Herzegovina. In the third quarter of 2017, the two independent companies generated a combined premium income of around 26 million euro ($31.9 million).
(1 euro=1.95583 marka)