TRIGLAV Group to enter pension insurance market in Croatia

Slovenia's largest insurance group - TRIGLAV said it is buying a majority stake in RAIFFEISEN Bank's Croatian pension business, RAIFFEISEN Mirovinsko osiguravajuce drustvo.

Thus, TRIGLAV Group through its subsidiary TRIGLAV INT, which manages the insurance subsidiaries of the Group outside Slovenia, signed an agreement with RAIFFEISEN Bank to purchase the majority stake (75% of all shares of the company minus one share) in the Croatian pension insurance company RAIFFEISEN Mirovinsko osiguravajuce drustvo. RAIFFEISEN will keep the remaining 25% plus one share in the company.

Through the acquisition, the TRIGLAV Group enters the Croatian pension insurance market, thereby "expanding its operations and strengthening its position in Croatia in accordance with its development and growth strategy. The new Group member is the only company that pays out pension insurance in Croatia, where it has successfully operated since 2002".

At the end of 2017, RAIFFEISEN Mirovinsko osiguravajuce drustvo managed the funds in the amount of around EUR 70 million on behalf of approximately 12 thousand beneficiaries.

The Croatian pension system is based on three pillars; upon the retirement or the fulfilment of certain conditions, the funds of the insured persons are transferred from the second and third pillars to the pension insurance company RAIFFEISEN Mirovinsko osiguravajuce drustvo. The latter manages these funds and pays out pension annuities. In view of the demographic trends and the confirmed system reforms in the coming years, a substantial increase in the number of new clients whose funds will be transferred from the second pillar is expected.

According to HANFA - Croatian Financial Services Supervisory Agency - on the local pension market, there were four voluntary and four mandatory pension companies owned by ALLIANZ, ERSTE, CROATIA osiguranje and RAIFFEISEN, and only one pension insurance company: RAIFFEISEN Mirovinsko osiguravajuce drustvo.

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