The FINANCIAL -- VIG Group company Bulstrad has entered into an agreement to acquire a 100 percent stake in the company UBB-AIG and conclude a cooperation agreement with United Bulgarian Bank (UBB).
This acquisition allows the Group to diversify its portfolio in Bulgaria and to increase – in the sense of its multi-channel distribution strategy – its sales potential, according to VIG.
"Bulgaria is one of our core markets. Bulstrad took advantage of the opportunity to acquire UBB-AIG and strengthen its market presence. Moreover, this new distribution channel allows us to open up further customer segments.”
Peter Hagen, CEO of Vienna Insurance Group
UBB-AIG was established in 2006 as a bank-assurance company for UBB, and has recorded stable development in recent years: BGN 4.5 million (around EUR 2.3 million) in premiums were generated in the financial year 2014 and the net result for 2014 was BGN 1.38 million (around EUR 0.7 million). The company operates in the segment non-life insurance.
UBB is the third-largest Bulgarian retail bank with more than one million customers. Its branch network has more than 200 branches and points of sale. Distribution of insurance products takes place almost exclusively via the UBB network.