POLAND: VIG to merge its Polish companies

25 September 2023 — Marina MAGNAVAL
Vienna Insurance Group is consolidating its operations on the Polish market, which means that instead of the current six insurance companies, only three will operate. The aim is to make greater use of the Polish market potential as one of the key markets for the group, and to strengthen competitive position, Gazeta Ubezpieczeniowa wrote.

VIG ranks 4th on the Polish market, with a share of 9.3%. After the recent takeover of the Polish business of Aegon, the group includes six companies: three life companies (Compensa Zycie, Vienna Life, Aegon Zycie) and three non-life companies (Compensa TU, InterRisk, Wiener).

The merger of the property companies Compensa and Wiener is expected to result in the development of VIG's property business in Poland. The company, after the merger, will offer broader insurance coverage to retail clients in health and property insurance.

In the life business, Vienna Life, Compensa and Aegon will merge. As a result, one of the leading players will be created.

“In the merger process, we will use the companies' strengths and build highly competitive insurance companies. Thanks to this, we will make even better use of the growth potential on the Polish market, which is very important for VIG”, said Hartwig Loger, President of the Management Board of Vienna Insurance Group.

“Poland is the third largest market for VIG and is particularly important to us. This is reflected not only in Poland's potential, but also in VIG's investments in innovation and dynamic development of our Polish companies in recent years”, explained Harald Riener, member of the VIG management board responsible for the Polish market.

The merger process is expected to begin before the end of this year and to be finalized in the second half of 2024, subject to the consent of the Polish Financial Supervision Authority.