Insurance market undergoes reorganization – Uniqa acquires Basler in Serbia and Croatia for EUR 75 mil

The Uniqa company signed the contract on acquisition of Croatian insurance companies of the Swiss Baloise Group, operating within Basler insurance. The acquisition is currently undergoing the approval process with the responsible regulatory institutions and anti-monopoly commissions in both countries and it is expected to be fully completed in Q1 2014. The transaction for both companies totals EUR 75 mil.

Wolfgang Kindl, member of the Managing Board of the Uniqa Insurance group and CEO at Uniqa International says this is an extraordinary opportunity for Uniqa to improve its market positions in Croatia and Serbia, as well as in Southeast Europe.

- We believe there is a huge potential for the future growth in the region. The acquisition completely supports our strategic program of Uniqa" 2.0 and is in line with the business model of profitable, long-term growth at our key markets.

The Road of Basler

Baloise has announced today that both companies (subjects to sales) in 2012 generated a business scope of 68, 4 mil of Swiss francs (EUR 55,4 mil). Now, Baloise calculates on a one-time loss of 30 mil of Swiss francs (EUR 24,3 mil) due to business operations halt expected during 2014.

When it comes to plans for the upcoming period, Baloise is planning to direct its activities to its main markets even to greater extent, the Swiss group said.

Otherwise, Basler started its operations in Serbia in 2007. The insurance company has some 110 staff, 35.000 clients and in 2012 it generated premium of EUR 3,7 mil. With a market share of 0,7% the company took 13th place at the Serbian market at the end of 2012.

The company Basler previously acquired at the Croatian market was set up in 1991. In Croatia, Basler has some 470 staff, 148.000 clients and in 2012, it generated premium of EUR 53,7 mil. With a market share of 4,5%, the company took 6TH place at the Croatian insurance market at the end of 2012.

New goal for Uniqa Insurance

Zoran Visnjic, Managing Board member at Uniqa International, responsible for Southeast Europe region, says for eKapija that this acquisition is an excellent opportunity for their company:

- After the acquisition ends, expected in Q1 2014, it is estimated that Uniqa Srbija will increase its market share to 8%. Apart from that, premium increase and clients number rise in Serbia is expected.

He adds that market share increase in Croatia is even more important and that after the acquisition ends, change of key players at the insurance market will be more dramatic – Uniqa will increase its market share to 7% and take the fourth position at the Croatian market which is a significant move from 11th position which Uniqa Hrvatska had in 2012.

- Since there is a huge growing potential, this an extraordinary opportunity for the whole Uniqa group ti improve its market positions in the whole Southeast Europe and to use the potential the region offers – Visnjic says for our portal.

(Zoran Visnjic)

What will happen with Basler clients?

After the acquisition is over, in early next year, it will be known whether Basler will change the name and what the next moves are.

- As for the clients, they will become a part of a large Uniqa system, whose basis in business focus on well-being of clients who always come first, innovative approach, implementation of new communication tools, products and services tailored for clients’ needs, punctuality and speed, consulting and partnership relation.

Listening to the needs of its current and future clients, Uniqa is constantly investing in improvement of products and services so current clients of Basler insurance will have the best possible treatment – Zoran Visnjic says.

Ratio of strength at the Croatian and Serbian insurance market

There are 24 insurance companies operating at the Serbian market at the moment. A total insurance premium in 2012 totaled some EUR 550 mil. The life insurance share in total premium totals 19%. With an average giving for insurance of EUR 76 per citizen, penetration rate totaled some 1,8% of gross domestic product.

Neighboring Croatia has two companies more than we do. Their total premium in 2012 totals some EUR 1,2 billion. The life insurance share in total premium totals 27%. With an average giving for insurance of EUR 274 per citizen, penetration rate totaled some 2,7% of gross domestic product.

Uniqa in Serbia and Croatia

In Serbia, Uniqa has been operating in the field of life and property insurance since 2007. In 29 branch offices in Serbia, apart from Belgrade-based headquarters, the company has 563 staff taking care about 509.000 clients. With a premium of some EUR 39 mil and a stake of 7, 3% at the end of 2012, Uniqa Srbija fifth position at the insurance market. Together with the local Basler, Uniqa would increase market share at 8% in Serbia.

In Croatia, Uniqa has been operating in the field of life and property insurance since 1999. In 43 branch offices in Croatia, apart from Zagreb-based headquarters, the company has 409 staff taking care about 177.000 clients. With a premium of some EUR 30 mil and a stake of 2,5% at the end of 2012, Uniqa Hrvatska took 11th place at the insurance market. Together with the local Basler, Uniqa would increase market share at 7% and took over the fourth place in Croatian market.

J.DJ.