AXA said it has entered into an agreement with Vienna Insurance Group to sell its life & savings insurance operations in Romania and exit the Romanian market.
Under the terms of the agreement, Vienna Insurance Group would acquire 100 percent of AXA Life Insurance SA through its BCR Life and Omniasig entities. (AXA Life Insurance SA is AXA’s life & savings operating entity in Romania.)
The parties agreed not to disclose the terms and conditions of the transaction. Completion of the transaction is subject to customary closing conditions, including the receipt of regulatory approvals, AXA said in a statement.
The purchase agreement for the life insurance company AXA Life Insurance S.A. (AXA Life) was signed on 3 August 2016. The buyers are the two VIG Group companies, BCR Life and Omniasig. The acquisition is subject to approval by the local authorities.
AXA Life generated more than €4.5 million ($5 million) gross premium income in 2015, primarily from traditional life insurance business, said Vienna Insurance Group in a statement.
The CEO of the Vienna Insurance Group Elisabeth Stadler, discussed the prospects for growth in the Romanian market by saying:”The Romanian life insurance market grew 11 percent in 2015. Our existing VIG Group company, BCR Life, the second-largest player in the Romanian life insurance market with a market share of 14.4 percent, also recorded significant growth in the previous year.”
GDP growth forecasts for Romania are promising as well, Stadler said. “Thanks to a rapid increase in private consumption, experts expect GDP to grow by more than four percent this year. GDP growth in 2017 and 2018 is expected to be around 3.5 percent.”
AXA announced on July 7, it entered into an agreement with Vienna Insurance Group to sell both its life & savings and property & casualty operations in Serbia and exit the Serbian market.
Source: AXA and Vienna Insurance Group
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