euro adhoc: Generali Holding Vienna AG
Mergers - Acquisitions - Takeovers /
Generali enters Bulgaria: Acquisition of 51% in Orel-G Holding
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10.07.2006
Generali enters Bulgaria: Acquisition of 51% in Orel-G Holding
The Orel-G Group is a leading player in the Bulgarian insurance market, holding top positions in life and health insurance.
Generali Holding Vienna AG has signed an agreement for the acquisition of a 51% share-holding in Orel-G Holding AD from Orel-Consult AD. With the entry in Bulgaria, which follows the recent acquisitions in Serbia, Croatia and Ukraine, Generali has taken a further step to strengthen and expand its strategic presence in Central and Eastern Europe, where it now operates in ten countries.
The Orel-G Group closed 2005 with a premium income of approximately EUR 28 million, recording a strong acceleration of business on a like-for-like basis with respect to 2004 (+22%). The result was driven principally by sickness insurance (+ 34% from 2004) and by life business (+30% from 2004). The Orel-G Group operates in the Bulgarian market through three companies: Orel AD in the non-life sector, Orel Life AD in the life, and Zakrila AD in the health insurance business.
Zakrila AD is by far the dominant player in health insurance, holding a 60% share of the market thanks to a polyclinic it owns and to agreements with 270 health institutions across the country. Orel Life AD, holding a market share of 10%, ranks fourth in Bulgarian life insurance. Orel AD, on the other hand, focuses on non-life business with auto insurance representing 64% of its portfolio.
The Orel-G Groups sales network is evenly distributed across the country with 87 territorial offices and approximately 8,000 salesmen. Besides the traditional selling channels, the Orel-G Group can rely on a series of bancassurance agreements for the distribution of mainly its life insurance products.
Generali in Central and Eastern Europe
In 2005, the Generali Group ranked fourth among foreign players in central and eastern Europe, closing the year with a premium income of EUR 936,8 million, up 22% from the previous year. Currently Generali has a significant presence in Eastern Europe with approximately 4 million clients, operating in ten countries with a historically known brand (Hungary 1989, Czech Republic and Romania 1993, Slovenia 1996, Slovakia 1997, Poland 1999, Croatia 2002, Serbia, Ukraine and Bulgaria 2006).
end of announcement euro adhoc 10.07.2006 14:30:00
Further inquiry note:
Generali Holding Vienna AG
Josef Hlinka
Tel.: (++43-1) 534 01-1375
Fax: (++43-1) 534 01-1593
mailto:josef.hlinka@generali.at
http://www.generali-holding.at
Branche: Insurance
ISIN: AT0000661350
WKN: 873075
Index: WBI, ATX Prime
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