VIG acquires further 35% stake in Hungarian holding company

Written by Michael Griffiths

21/11/2023

Vienna Insurance Group (VIG) has signed a purchase agreement to acquire 35% of the Hungarian holding company, VIG Magyarország Befektetesi Zrt.

The company is currently held by the Hungarian state holding company, Corvinus.

Following the transaction’s completion, VIG’s stake in the holding will increase from 55% to 90%, with Corvinus to keep a stake of 10%. Subject to approval by the Hungarian National Bank, the closing is expected to take place at the end of November, although the parties have agreed not to disclose the purchase price.

VIG has been operating in Hungary since 1996, for 27 years, and is the market leader with a market share of more than 19%. The two operating insurance companies Alfa and UNION generated a premium volume of €403m in the first half of 2023.

In March last year, VIG acquired the Hungarian companies of Dutch Aegon group. The holding company VIG Magyarország Befektetesi Zrt was established to manage the Hungarian VIG companies, in which, until this deal, the Hungarian state had held a 45% stake.

“In Hungary, as in all our countries, we are pursuing a long-term market strategy,” said VIG CEO, Hartwig Löger.

“With the buyback, we are emphasising our long-term commitment to the Hungarian market and are looking forward to continuing the strategic partnership with the Hungarian Government.”

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