(The Insurer) – Vienna Insurance Group (VIG) has submitted a bid to acquire 80% of the shares of Moldovan insurer Moldasig in a bid to further bolster its footprint in central and eastern Europe.
Chișinău-based Moldasig is one of Moldova’s leading non-life insurance companies and maintains a market share of around 14%.
This transaction follows a multi-stage bidding process initiated by the Moldova’s Cabinet of Ministers last month and designed to cut the state’s ownership of the insurer while bringing in fresh capital to develop the country’s domestic insurance market.
VIG has been present on the Moldovan market since 2014 when it acquired the insurance company Donaris, which currently serves more than 120,000 clients.
After the acquisition of Moldasig, VIG would secure a market share of around 30%. The Moldovan National Bank has already approved VIG as a potential buyer of Moldasig.
Peter Höfinger, deputy CEO of VIG and responsible board member for Moldova on the intended acquisition, said: “We welcome the government’s decision to attract international investors who aim at accelerating the local economy.
“As the market leader in the CEE region VIG brings in deep expertise that takes insurance protection to the next level. The attractiveness of Moldova’s economy has grown steadily. With the planned investment we express our trust in Moldova’s EU accession path and will further develop the local insurance market for the benefit of our customers.”
It comes after VIG in March acquired a stake in Phinance, one of Poland’s largest financial brokers, in a deal designed to grow the insurer’s presence in the Polish market. This followed the January launch of a new life insurance subsidiary in Albania.