HUNGARY: VIG to merge ERSTE, UNION and VIENNA Life into one company
According to a press release, the new insurer will operate under the "UNION brand" as of the beginning of next year, as Budapest Business Journal (BBJ) informed.
"The three units together serve almost one million clients. In the new operation size we will be joining up our resources and optimizing our sales structure to enable us to respond to client demands more efficiently," said Gabor LEHEL, president and CEO of UNION Biztosito. He added that the merger will not affect the contracts of current clients, and that the company aims to offer more perks to current clients after the merger, BBJ informed.
The mentioned source pointed out that VIG expects to strengthen its commitment to the Hungarian market, "as Hungary has been named as one of the four markets where the group is aiming to reach at least a 10% market share".
According to the most recent statistics published by MABISZ - the Hungarian Insurance Association, at the end of 2016 the three VIG units had a aggregate market share of 7.6%, (GWP of HUF 69.8 billion / EUR 225 million).
Per units, UNION was the largest VIG subsidiary - GWP of EUR 117 million (3.94% market share, ranked 9th of 30 insurers), followed by ERSTE - GWP of EUR 59 million (1.98% market share, ranked 13th) and VIENNA Life - GWP of EUR 49 million (1,66%, ranked 14th).