Reinsurance News

VIG increases its stake in Hungarian business from 55% to 90%

21st November 2023 - Author: Jack Willard

Vienna Insurance Group (VIG) has signed a purchase agreement to acquire 35% stake of the Hungarian holding company VIG Magyarország Befektetesi Zrt., which is currently held by the Hungarian state holding company Corvinus.

Once the transaction has been completed, VIG’s stake in the Holding will increase from 55 to 90%, with Corvinus keeping a stake of 10%.

The transaction, which is subject to approval by the Hungarian National Bank, is expected to close at the end of November 2023.

If you recall, in March 2022, VIG acquired the Hungarian companies of Dutch Aegon group. The company purchased it for for EUR 620 million.

Moreover, the holding company – VIG Magyarország Befektetesi Zrt. –  was established to manage the Hungarian VIG companies, in which the Hungarian state holds a 45% stake.

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In addition, Corvinus International Investments Zrt., an investment management company of the Hungarian state, continues to hold a 10% stake in the Hungarian holding company.

However, the parties have agreed not to disclose the purchase price.

Hartwig Löger, CEO of Vienna Insurance Group, commented: “In Hungary, as in all our countries, we are pursuing a long-term market strategy. With the buyback, we are emphasising our long-term commitment to the Hungarian market and are looking forward to continuing the strategic partnership with the Hungarian government.”

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