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EBRD supports expansion of UNIQA insurance
Extension of multi-project facility paves way for acquisition of stake in Bosnian subsidiary
Building on a strong and well-established partnership, the EBRD is increasing its multi-project facility for the subsidiaries of the Austrian insurance group UNIQA in the Bank’s countries of operations from €70 million to €150 million. UNIQA sees this region as an important part of its business development and has successfully contributed to the establishment of best practice and international standards on local markets.
As a first sub-project under the extended facility, the EBRD will acquire a 20 per cent stake in UNIQA Osiguranje, currently the fifth largest insurance company in Bosnia and Herzegovina.
The EBRD has invested in insurance companies of the UNIQA Group in Croatia, the Czech Republic, Hungary and Poland over the past nine years. Thanks to the successful cooperation the insurer has now requested a renewal and extension of the existing multi-project facility. UNIQA intends to further expand its activities in eastern Europe, south eastern Europe, is screening opportunities for a market entry in Russia and sees the EBRD as a strong partner that provides extensive knowledge of these markets.
UNIQA Osiguranje offers a range of non-life and life insurance products to a variety of customers, including businesses, associations, professionals and individuals. The Bosnian insurance market is growing rapidly, but is still in its early stages of development. UNIQA Osiguranje has managed to achieve growth rates above the market and is expected to continue its expansion.
Kurt Geiger, EBRD Business Group Director Financial Institutions, said the extension of the cooperation with UNIQA was a good example of how the Bank works successfully with key strategic investors in the region and contributes to the deepening of the insurance industry. “Together with a strong partner such as UNIQA we are expanding our activities to south eastern Europe, bringing knowledge about the countries and professional know-how to raise business practices and enhance competition”, he said. The introduction of new products in more countries will serve to accommodate the needs of individual costumers as well as small and medium-sized enterprises.
Konstantin Klien, CEO and Chairman of the Management Board of UNIQA, said: the expansion of our cooperation with the EBRD is an impressive recognition of our international strategy in eastern and south eastern Europe. With the signing of the new contract, the EBRD endorses UNIQA’s strategy and concentration on core markets. The EBRD’s commitment demonstrates the Bank’s recognition of our expertise, while financially it increases our capacity to further expand on our target markets,” Mr Klien added.
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