VIG to merge Hungarian insurance units
Vienna Insurance Group (VIG) is merging its three Hungarian units - Erste Biztosító, Union Biztosító and Vienna Life Biztosító - into one company operating under the name “Union” as of the beginning of next year, according to a press release sent to the Budapest Business Journal on Monday.
With the decision, VIG expects to strengthen its commitment to the Hungarian market, as Hungary has been named as one of the four markets where the group is aiming to reach at least a 10% market share. By the end of last year, the three units had a joint market share of 7.6%, with revenues from premiums standing at a combined HUF 69.8 billion — including HUF 43.6 bln from life policies and HUF 26.1 bln from general insurance policies.
By merging the units, VIG sees its insurance activities becoming more efficient in the country, as well as optimizing operating processes. At the same time, the group expects to concentrate resources on digitalization developments, which VIG sees will significantly contribute to client satisfaction in the future.
“The three units together serve almost one million clients. In the new operation size we will be joining up our resources and optimizing our sales structure to enable us to respond to client demands more efficiently,” said Gábor Lehel, president and CEO of Union Biztosító. He added that the merger will not affect the contracts of current clients, and that the company aims to offer more perks to current clients after the merger.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.