ATOS Osiguranje will be absorbed by GRAWE and will cease to exist, the cited source mentioned. The consolidation of both companies received the approval of the Council of Competition, which stated that the merger will not lead to a concentration within the market that exceeds the limits set in the Law on Competition.
As a result of the merger, GRAWE will raise its capital through the issue of shares amounting BAM 5.6 million. GRAWE share capital will reach BAM 13.6 million after the increase. The share capital will be distributed through 13,600 ordinary shares.
GRAWE entered the Bosnian insurance market in 1998 (1998 - Federation of Bosnia and Herzegovina / 2001 - Republika Srpska). In September 2018, GRAWE successfully purchased ATOS Osiguranje, the former "Bobar osiguranje", becoming the owner of 99.62% shares in the company in the exchange of BAM 23 million.
At the end of the first half of 2019 GRAWE BiH was the leader of the life sector out of a total of 10 life insurance companies. GRAWE BiH held a total market share of 29.7% (by combining GRAWE FBiH 18.4% and GRAWE RS 11.3% together) for a volume of gross premiums written amounting BAM 22.7 million (~ EUR 11.6 million). Per political divisions, GRAWE was the 3rd life insurer in FBiH and the first life insurer in RS.
For the same period, in non-life sector, out of 27 non-life companies, GRAWE FBiH ranked 10th with a market share of 4.4% and a GWP volume of BAM 13.3 million (~ EUR 6.8 million), while GRAWE RS was absent from this sector. ATOS RS, non-life specialized, ranked 15th, with a market share of 3.9% and a GWP volume of BAM 8.3 million (~ EUR 4.2 million).