The Latvian Financial and Capital Market Commission (FKTK) aprooved the transaction between Austrian VIENNA Insurance Group and the local non-life insurer AAS Baltikums. In late July, VIG announced it signed an agreement to purchase 100% of Riga-based insurer. At the moment, VIG is present in Latvia through local insurer COMPENSA Life while non-life products are offered by a EU branch of COMPENSA Poland. The acquisition of BALTIKUMS AAS makes VIG one of the top 5 insurance companies in Latvia.

"The clients will not be affected by this transaction because all the active insurance policies and all obligations to BALTIKUMS AAS clients remain valid", FKTK announced on its web-site.

"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", declared in July, BALTIKUMS AAS Chairman of the Board Eduards REINICANS.

"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 LATISEVS, Chairman of the Board, BALTIKUMS Bank AS commented on the decision.

BALTIKUMS AAS was founded in 1998, with its largest shareholders being BBG AS (80%) and BALTIKUMS Bank AS (19%). BALTIKUMS AAS is a non-life insurer with an 8% market share, making it number 6 in the Latvian insurance market. The company also operates via branches in Lithuania and Estonia. In the financial year 2014, the company generated premiums of more than EUR 20 million. Among others, its product portfolio includes motor and liability insurance, health and travel insurance. Products are sold through their own sales staff as well as through a large network of brokers and agents. Baltikums AAS presently employs about 250 people.