Vienna Insurance Group completes acquisition of Merkur in Bosnia and Herzegovina
Significant improvement to third place on the market
A purchase agreement on the full acquisition of Merkur Osiguranje d.d. (Merkur) was signed on 30 October 2017. The transaction was closed on 8 February 2018 following approval by the local authorities. As a result, Vienna Insurance Group (VIG) moves up from eighth to third market position in Bosnia and Herzegovina.
Merkur, which mainly specialises in life insurance, was acquired from Austrian-based MERKUR International Holding AG. The purchase will enable VIG to extend its product range in Bosnia and Herzegovina, which has so far mainly been centred on the non-life business. Represented by two Group companies, VIG is now ranked second in the country’s life insurance segment, with a market share of over 25 percent.
A key aspect of the Merkur acquisition was the company’s regional presence in the Federation of Bosnia and Herzegovina. In combination with Group company Wiener Osiguranje, which was set up in 2011 and operates primarily in Republika Srpska, the Vienna Insurance Group has now significantly widened its scope in Bosnia and Herzegovina. In the third quarter of 2017, the two independent companies generated combined premium income of around EUR 26 million.
