Two polish insurance companies member of VIG will merge

12 September 2011 — Vlad BOLDIJAR
interrisk_pzmThe VIENNA Insurance Group is planning to concentrate its resources in the Polish non-life insurance market by merging the companies InterRisk and PZM. According to the press release, it is expected that the merger - which is still awaiting formal legal and regulatory approval - will be completed during the first half of 2012. Also, the sales power of the two companies will be combined as a result of the merger and their market presence will be strengthened by using a common brand throughout the country: InterRisk.

During the first half year 2011, InterRisk registered strong growth in premiums of 11.2%. Following very strong growth in previous years, PZM continues to focus on increasing profitability and growth in the non-motor insurance division and increased its premiums by 7.5%. The two companies, InterRisk and PZM, achieved total premiums of EUR 162.5 million during the first six months of 2011.

"In general, the VIENNA Insurance Group is continuing with its very successful multiple-brand strategy, but we are constantly reviewing the efficiency of our local sales structures. If we identify potential synergies, as is the case here in Poland, mergers are the logical result. The merging of the two companies in Poland provides us with a more compact market presence in one of our key geographical markets," explains Gunter GEYER, CEO of the VIENNA Insurance Group.

During the first six months of 2011, the Polish companies of the VIENNA INSURANCE Group recorded total premiums of EUR 498.1 million, an increase of 43.7 percent compared to the same period in the previous year.

In the non-life insurance business, the VIENNA Insurance Group achieved volumes of EUR 323.3 million, representing an increase of 19.4% in comparison to the previous year. In the life insurance segment, the Polish group companies recorded premiums of EUR 174.8 million, thereby achieving strong growth of 131%.

The VIENNA Insurance Group has been active in the Polish insurance market since 1998. Following the merger, the group will be represented by five companies and three different brands. These are COMPENSA life and non-life, BENEFIA life and non-life as well as InterRisk.

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