The Vienna Insurance Group AG Wiener Versicherung Gruppe is the new majority shareholder in the Jahorina Osiguranje AD Pale (Jahorina) insurance company in the Republic of Bosnia and Herzegovina. The Vienna Insurance Group has acquired approximately 91.7 percent of the company's overall capital and approximately 96.6 percent of the voting shares in the company, which results in the entry of the Vienna Insurance Group into its 25th market. The Vienna Insurance Group will subsequently issue a takeover bid to all remaining voting shareholders of the company in accordance with local legislation.
Jahorina was established in 1992 as a non-life insurer in Pale (autonomous region Republika Srpska) and currently employs approximately 215 staff. Since the first quarter of 2010, the company has also offered life insurance. In the first half of 2011, Jahorina registered premiums of approx. EUR 5.7 million. Of this amount, approx. 98 percent was in the non-life sector, especially motor insurance; 82 percent of the premium revenues are generated in the Republika Srpska. In recent years, Jahorina has achieved very high growth rates and is the market leader in the Republika Srpska, with a market share of 13.6 percent. In terms of the overall market in Bosnia-Herzegovina, the company ranks 9th with a market share of 4.5 percent.
Current market data illustrates the potential in the Bosnian insurance market: The insurance penetration (annual premiums per capita) was approximately EUR 63 in Bosnia-Herzegovina in 2010 as compared to approximately EUR 75 in Serbia und more than EUR 2,500 in the EU-15 countries.