News
The Pojišťovna České spořitelny was sold
Erste Bank sold the insurance company to VIG
Austrian Erste Bank sold s Versicherung, including its subsidiaries Pojišťovna České spořitelny and Poisťovna Slovenskej sporiteľne, to the Vienna Insurance Group (VIG). The Austrian bank will gain EUR 1.445 billion (approx. CZK 36.8 billion) on the sale of the insurance activities. The Czech News Agency (ČTK) was informed by the Erste spokesperson Hana Cygonková. The deals have to be approved yet by the relevant anti-trust offices and local authorities supervising insurance companies.
Erste has sold one package of Central and Eastern European subsidiaries – insurance companies in the Czech and Slovak Republics, Hungary and Croatia as well as both of the Romanian insurance companies of Banca Comercial_ Rom_n_, said Cygonková. Erste Bank and its bank subsidiaries in Central and Eastern Europe will retain a five percent stake in each local insurance company.
Erste Bank and VIG have signed distribution contracts for the period of 15 years. "They will mutually distribute their products to more than 20 million clients on the market with more than 120 million inhabitants," added Cygonková.
Erste will use the net yield of the transaction which is expected to be concluded this third quarter to increase its capital base. The equity indicator will increase by approx. 70 basis points.
Pojišťovna České spořitelny is the fourth biggest insurance company in the Czech Republic and it had been owned by Česká spořitelna (55.25 percent) and s Versicherung (44.75 percent). The income of Pojišťovna České spořitelny from the paid up premiums, i.e. the gross premium written, reached EUR 232.9 million in 2007. Česká spořitelna will retain a five-percent stake.
Poisťovna Slovenskej sporiteľne ranks ninth among the insurance companies on the Slovak market with regard to the gross premium written in the amount of EUR 24.8 million. One third is owned by Erste Bank, one third by Slovenská sporiteĺna and one third by s Versicherung.
The Austrian insurance company Sparkassen Versicherung AG ranks second on the Austrian life insurance market. Ninety percent had been owned by Erste Bank. The income from the paid-up premium in Austria was EUR 808.5 million last year. Austrian Erste Bank increased its net profit by 26 percent to EUR 1.17 billion (approx. CZK 29.5 billion) last year. Two years ago the bank made a profit of EUR 932.2 million.
Source: ČTK
