The transaction will be implemented after the necessary authorizations are obtained from the industry supervisory institutions.
AAS "BTA Baltic Insurance Company" (BTA Baltic) shareholder base, which is now 100% of "BTA Insurance Company" SE joins the Austrian insurer "Vienna Insurance Group AG" (VIG). Changes in the structure of BTA Baltic shareholders provides autonomous development of the Baltic market, while maintaining an operational decision-making and high-quality service to BTA clients. The company's brand and its values will remain.
„With this transaction we have achieved an important goal of VIG’s strategic development in the Baltics. We rank among the top players in life as well as in non-life in the Baltic States, for economic reasons a particularly interesting region within the EU. Moreover this expansion opens up very good opportunities for cross selling of life and non-life products”, said Franz Fuchs, responsible among others for the Baltic markets in the VIG Managing Board.
"Vienna Insurance Group AG" (VIG) is a leading insurance group in Austria and Central and Eastern Europe. About 50 companies in 25 countries consolidates the Group with a strong name and close cooperation with customers. The Group has 190 years of experience in the insurance industry, it employs 23 000 employees and it is a clear leader in its key markets.
AAS "BTA Baltic Insurance Company" (BTA Baltic) is a subsidiary of "BTA Insurance Company" SE (BTA) that started operations in the Baltic States as of 1st of July, 2015, following the successful completion of the reorganization process by separating business activities in the Baltic States and the rest of Europe. BTA Baltic has received a license for all types of insurance services, which allows the company to offer customers all kinds of insurance services in the Baltic countries – Latvia, Lithuania and Estonia.
In 2014 BTA Baltic recorded gross premiums of around EUR 117 million (2013: EUR 112 million), with Lithuania accounting for 46.1 percent of the total, Latvia for 40.5 percent and Estonia for 13.4 percent. Some 40 percent of premiums were attributable to motor liability insurance and over 20 percent to casco insurance. Property generated 10 percent and health insurance around 9 percent of premiums respectively. Profit before tax in 2014 amounted to EUR 10.6 million (2013: EUR 6.6 million) and BTA Baltic’s combined ratio was at impressive 94 percent last year.
BTA has more than 20 years of experience in the Baltic countries, it has one of the leading market positions in Latvia and Lithuania, with 12% market share in the Baltic.
The company has a market share of about 20 percent in Latvia, where it is the second-largest insurer on the non-life market. It is also the second-largest non-life insurer in Lithuania, with a market share of around 14 percent. BTA Baltic is Estonia’s seventh-biggest insurance company, with a market share of about 6 percent. Through the acquisition of BTA Baltic VIG will become one of the top 3 insurers in the non-life market of the Baltic States. BTA Baltic has one of the largest sales networks, particularly 154 units in the Baltics. At present, the company employs 951 staff. BTA Baltic is included in the list of leading taxpayer's companies.
Janis Lucaus, AAS "BTA Baltic Insurance Company" Chairman of the Board: "BTA Baltic financial results confirm the success of the business strategy by separating BTA Company’s business according to geographical territories. Continuing business activities in the Baltic States, we have kept the existing framework for the operations - to offer the highest quality of insurance services, to use the latest technologies for enterprise development, to guarantee stability and the credible commitments towards BTA customers. We are pleased that the Austrian insurer VIG has decided to invest into BTA Baltic, which will provide us new development opportunities and an international experience in the use of insurance services in the Baltic countries. "
BTA was advised by KPMG Corporate Finance and law firm Vilgerts in the transaction.
Vienna Insurance Group (VIG) is the leading insurance specialist in Austria 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 in its core markets. It is therefore excellently positioned to take advantage of the long-term growth opportunities in a region with 180 million people. The listed Vienna Insurance Group is the best-rated company of ATX, the leading index of Vienna Stock Exchange; its share is also listed on the Prague Stock Exchange.
If you have any questions, please contact:
|AAS “BTA Baltic Insurance Company”
Linda Upeniece +371 26756841, firstname.lastname@example.org
|VIENNA INSURANCE GROUP
Alexander Jedlicka +43 50 390-21029, email@example.com