OREANDA-NEWS. Vienna Insurance Group (VIG) – the leading Austrian insurance group and a market leader in Central and Eastern Europe – has signed an agreement to purchase 100 % of insurance company Baltikums shares. The transaction is expected to be completed after obtaining the necessary permissions from the relevant authorities.

Currently, 50 companies represent VIG in 25 countries. In Latvia, VIG life insurance is represented by the Latvian branch of Compensa Life Vienna Insurance Group. After the acquisition of Baltikums, VIG will be one of the top five insurance companies in Latvia.

Peter Hagen, CEO of Vienna Insurance Group stated: “In the past five years, VIG has grown on average by 30% annualy in the Baltic insurance market. The acquisition of Baltikums now gives us the opportunity to continue our prosperous development. We will take advantage of the attractive market potential to further strengthen our position”.

Baltikums provides insurance for all kinds of risks to private and corporate customers, excluding insurance. The company employs more than 250 people, and has 50 customer service centres in 28 cities of Latvia, as well as branches in Lithuania and Estonia.  With an 8 % market share, Baltikums currently ranks 6th in the Latvian insurance market.

SORAINEN performed the legal due diligence of Baltikums and assisted VIG in the transaction negotiations. SORAINEN is continuing work on the transaction by assisting VIG to receive the approvals required for completion of the deal.

The client was advised by SORAINEN Latvia managing partner Eva Berlaus and senior associates Jenis Bite and Santa Rubena.