TGS Baltic advised BBG AS, Baltikums Bank AS and two private individuals on the sale of insurance company Baltikums AAS to Austrian insurer Vienna Insurance Group AG (VIG).
Baltikums AAS is one of the first insurance companies established in Latvia,
and during over 15 years of operation it has accumulated substantial experience in providing non-life insurance services in Latvia, Lithuania, and Estonia, holding an 8% market share. In the financial year 2014, the company generated premiums of more than 20 MEUR. Its staff consisting of 275 employees currently work in 38 cities across Latvia and in Vilnius, Lithuania. Baltikums AAS has a broad network of agents and brokers, well-developed product sales channels, and a stable core staff of highly experienced specialists, who have been with the insurance company for many years. It is envisaged that Baltikums AAS joining the even more experienced Vienna Insurance Group AG will bring new opportunities for growth and add international experience.
With this transaction VIG intends to capitalize on local know-how and expertise. VIG has grown by around 30 percent per year in the past five years in the Baltic insurance market. The acquisition of Baltikums AAS will give VIG the opportunity to take advantage of the attractive market potential available in other lines of business, and to strengthen their position further.
For BBG AS group sale of the shares in Baltikums AAS is a step towards the strategic goal to reduce its lines of business that involve retail sales of products and services. The funds received from this transaction served for developing BBG AS group’s financial services on international markets.
Vienna Insurance Group is the leading insurance specialist in Austria,
as well as in the Central and Eastern Europe. About 50 companies in 25 countries form a Group with a long-standing tradition, strong brands and close customer relations. VIG looks back on 190 years of experience in the insurance business. With about 23,000 employees, Vienna Insurance Group is the clear market leader on its core markets.
TGS Baltic team was led by Partner Andra Rubene, supported by Senior Associate Māris Liguts and Associate Rūdolfs Vilsons.
For more information please refer to (EN): https://www.baltikums.eu/en/news-and-reviews/news/baltikums-aas-insurance-company-shares-acquired-by-austrian-company2015-07-29/
For more information please refer to (LV): https://www.baltikums.eu/lv/news-and-reviews/news/baltikums-aas-insurance-company-shares-acquired-by-austrian-company2015-07-29/
