Baltikums AAS Insurance Company Shares Acquired by Austrian Company
July 29, 2015
Based on an agreement signed this Wednesday, July 29, 100% of shares in insurance company Baltikums AAS was acquired by Austrian insurer Vienna Insurance Group AG (VIG).
Baltikums AAS was founded in 1998, with its largest shareholders being BBG AS (80%) and Baltikums Bank AS (19%). It is one of the first few insurance companies established in Latvia, and in more than 15 years of operation, it has accumulated substantial experience in providing non-life insurance services in Latvia, Lithuania and Estonia, holding aт 8% market share. Its staff of 250 currently work in 38 cities across Latvia and in Vilnius, Lithuania.
“We have a broad network of agents and brokers, well-developed product sales channels, and a stable core staff of highly experienced specialists who have been with us for many years. The company closed the year 2014 with more than 20 million Euros in gross written premiums,” said Baltikums AAS Chairman of the Board Eduards Reinicāns, describing his company. “I am convinced that Baltikums AAS joining the even more experienced Vienna Insurance Group AG will bring us new opportunities for growth and ensure international experience for each employee. VIG intends to capitalize on local know-how and expertise. There will be no changes for our customers: all insurance policies that have been concluded will remain in force”, Eduards Reinicāns adds.
„VIG has grown by around 30 percent per year in the past five years in the Baltic insurance market. The acquisition of Baltikums AAS now gives us the opportunity to take advantage of the attractive market potential available in other lines of business, and to strengthen our position further,” stated Peter Hagen, General Manager of Vienna Insurance Group AG.
“Sale of the block of shares in Baltikums AAS is a step towards the strategic goal of BBG AS group to reduce its lines of business that involve retail sales of products and services. The funds received from this transaction will be allocated towards developing our financial services on international markets”, Dmitrijs Latiševs, Chairman of the Board, Baltikums Bank AS commented on the decision.
Superia Corporate Finance and TGS Legal acted as financial and legal advisers to the sellers in relation to the transaction.
Vienna Insurance Group (VIG) is the leading insurance specialist in Austrian as well as in Central and Eastern Europe. About 50 companies in 25 countries form a Group with a long-standing tradition, strong brands and close customer relations. VIG looks back on 190 years of experience in the insurance business. With about 23,000 employees, Vienna Insurance Group is the clear market leader on its core markets.
Corporate Finance Director