AXA to Sell its Romanian Operations to VIG

axaAXA and Vienna Insurance Group (VIG) announced that they signed an agreement on August 3, 2016, through which the Austrian insurer would acquire 100% of AXA’s Life & Savings insurance operations in Romania (AXA Life Insurance) through its BCR Life and OMNIASIG entities, says 1asig.ro.

The parties agreed not to disclose the terms and conditions of the transaction. Completion of the transaction is subject to customary closing conditions, including the receipt of regulatory approvals.

AXA Life Insurance generated more than EUR 4.5 million gross premium income in 2015, primarily from traditional life insurance business.

The CEO of the VIENNA Insurance Group, Elisabeth STADLER, emphasizes the growth prospects in Romania: “The Romanian life insurance market grew 11 percent in 2015. Our existing VIG Group company BCR Life, the second-largest player in the Romanian life insurance market with a market share of 14.4 percent, also recorded significant growth in the previous year.”

According to STADLER, GDP growth forecasts for Romania are promising as well: “Thanks to a rapid increase in private consumption, experts expect GDP to grow by more than four percent this year. GDP growth in 2017 and 2018 is expected to be around 3.5 percent.”

It’s worth mentioning that on December 18, 2014, the French insurer announced that it had entered into an agreement with the leading independent asset manager in Romania – CERTINVEST and with the financial investment company listed on the Bucharest Stock Exchange – SIF Transilvania to sell its loca insurance operations. Under the terms of the failed agreement, CERTINVEST was supposed to acquire a stake of 70% in AXA’s Romanian subsidiary, while SIF Transilvania – the remaining 30% stake. Later, in July 2015, AXA said that the agreement with CERTINVEST and SIF Transilvania has failed. “AXA is reviewing its strategic options considering the interests of its clients and employees in Romania”, AXA Group officials declared at that moment.

 

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