Remaining markets

The Remaining Markets include Albania, Bosnia-Herzegovina, Bulgaria, Croatia, Estonia, Georgia, Germany, Hun gary, Latvia, Liechtenstein, Lithuania, Macedonia, Moldova, Serbia, Turkey and Ukraine. The Remaining Markets generated 12.8% of Group premiums in 2014.

The Group companies in the Montenegro and Belarus markets were not included in the VIG consolidated financial statements.


After declining in 2013, premium income in the Albanian insurance market rose by 36.7% in local currency terms in 2014. The non-life area, which represents around 90% of total premium volume, recorded an increase of 40.5%. This increase was mainly due to stabilisation of motor vehicle liability rates. As in the previous year, life insurance also grew in 2014, recording an increase of 6.9% in premiums.

The merger of the two VIG companies Sigma and Interalbania was concluded successfully in 2014. The Company has operated in the Albanian market under the Sigma Interalbanian brand since then and is also represented by a branch in Kosovo. VIG is also represented in Albania by Intersig. Both companies operate in the non-life insurance segments and together hold first place in this area of the market. VIG holds second place in the market as a whole.


In local currency terms, Bosnia-Herzegovina recorded a year-on-year increase of 13.5% in premium volume in 2014. Both the life (+26.9%) and non-life (+10.3%) insurance segments contributed to this increase. Growth was especially high for non-life products outside the motor vehicle sector, even though claims also increased greatly due to the serious flooding in May 2014.

The Group company Jahorina that represents VIG in Bosnia-Herzegovina was renamed Wiener Osiguranje in 2014. VIG has a 4.5% market share of total premium volume, putting it in seventh place in the Bosnian market.


In local currency terms, the Bulgarian insurance market recorded an overall year-on-year increase of 4.8% in the first three quarters of 2014. The 4.0% increase in non-life insurance was partly due to motor vehicle liability insurance, but motor vehicle own-damage insurance also grew again in the 1st–3rd quarters of 2014, following a decline in the last two years. Life insurance recorded an increase in spite of a sharp drop in unit-linked products (+8.3%). Since 2014, Bulgarian health insurance funds have been required by law to obtain an insurance licence. Twelve new insurance companies entered the market as a result, with some also offering insurance in other areas.

VIG is represented by Bulstrad Life and Bulstrad Non-life in Bulgaria. Together, these two companies have a market share of 13.7%, putting the Group into second place in the Bulgarian market. VIG also holds second place in both the life and non-life insurance segments. Moreover, the Bulgarian pension insurance company Doverie was fully consolidated retrospectively in 2014.


The German insurance market recorded positive growth in premium income in 2014. This was primarily due to dynamic growth in the single-premium life insurance business and continued strong growth in property and casualty insurance at the expected rate of 3%. When regular premium income is included, life insurance grew by around 3% compared to the previous year (preliminary figure).

VIG operates two companies in Germany, InterRisk Non-life and InterRisk Life. The InterRisk companies distribute exclusively through brokers. InterRisk Non-life specialises in casualty and third-party liability insurance, as well as selected property and casualty insurance products. InterRisk Life focuses on retirement provision and occupational disability solutions, as well as protection for surviving dependants. The VIG companies once again operated successfully as highly profitable niche providers in the German market in 2014.

Estonia, Latvia and Lithuania

The Baltic States continued the positive trend from the previous year in 2014. The Estonian insurance market grew 7.5% year-on-year in 2014. Premium volume in Latvia recorded a similar year-on-year increase of 7.6% in the 1st–3rd quarters of 2014. Lithuanian premium income rose 6.9% in local currency terms in 2014. Life insurance showed particularly dynamic growth in all three markets.

VIG operates in Estonia via the Group company Compensa Life, which also operates branch offices in Latvia and Lithuania. The Group is also present in Latvia and Lithuania through branch offices of the Polish Group company Compensa Non-life.


Development of the Georgian insurance market was heavily influenced in 2014 by elimination of the government health insurance programme and the resulting decrease in this line of business. Since health insurance represents around 50% of total premium volume, this also had a major effect on the overall market, which fell year-on-year by 44.4% in local currency terms in the 1st–3rd quarters of 2014.

VIG is represented by GPIH and IRAO in Georgia. Together, they hold a market share of 36.4%, putting them in first place in the overall market.


In local currency terms, total premium volume dropped 5.7% year-on-year in the Croatian insurance market in 2014. This was driven by market liberalisation in the motor vehicle liability line of business since accession to the EU in 2013. Average premiums fell by more than 20% in this line of business. Premium income in life insurance, on the other hand, rose 3.9% compared to 2013 thanks to growth in single-premium business.

VIG is represented by two companies in Croatia. Wiener Osiguranje offers both life and non-life products, while Erste Osiguranje focuses on life insurance business in cooperation with the local Erste Bank company. VIG has a market share of 8.4%, which puts it in fourth place in the Croatian insurance market. It holds second place in life insurance, and fifth place in non-life insurance.


Liechtenstein benefits from a central location that gives it unique access to the European Economic Area and Swiss market. The insurance companies located there offer international insurance solutions. 22 life insurance, 15 property insurance and five reinsurance companies had registered offices in Liechtenstein at the end of 2014. Premium income for the overall market in 2014 is expected to remain at the same level as the previous year.

VIG is represented by Vienna-Life in Liechtenstein. The company operates exclusively in the life insurance segment and concentrates predominantly on unit-linked and index-linked products. The focus is on insurance solutions tailored to individual customer needs.


In local currency terms, total premium volume in the Macedonian insurance market grew by 6.1% year-on-year in the 1st–3rd quarters of 2014. The market is dominated by non-life insurance, which represents around 90% of the market. Around 60% of this, in turn, is due to motor vehicle insurance. As a result, the non-life business, which grew 4.6% in the 1st–3rd quarters of 2014, remains the most important driver of growth in the Macedonian insurance market. However, even though life insurance currently still plays a secondary role, it recorded very high growth of 21.9% in the first nine months of 2014.

In addition to Winner Non-life and Winner Life, VIG has also been represented in Macedonia by Makedonija Osiguruvanje since 2013. Acquisition of this company put the Group in first place in the insurance market, with a market share of 22.8% in the 1st–3rd quarters of 2014. VIG is also the market leader in non-life insurance, and holds third place in life insurance.


The 16 insurance companies operating in the Moldovan market increased total premiums by 3.3% year-on-year in local currency terms in the 1st–3rd quarters of 2014. Both the non-life area (+3.1%), which dominates the market, and life insurance (+7.7%) contributed to this increase.

VIG entered the Moldovan market in 2014 by acquiring the insurance company Donaris. This allowed the Group to open up the final country still left in the CEE region, thereby extending its presence to 25 countries. Donaris was established in 1998, has its headquarters in the Moldovan capital city of Chisinau and is currently ranked third in the market. Insurance products are sold through the company's own business offices, agents and in cooperation with brokers, banks and leasing companies.


In spite of weak economic conditions, premium volume in the Serbian insurance market recorded a year-on-year increase of 5.2% in local currency terms in the 1st–3rd quarters of 2014. Although life insurance has shown steady growth for years, given that it only generates around 20% of total premium volume, in overall terms it still plays a secondary role compared to non-life products. This area recorded an increase of 2.5% in the first nine months of 2014. Insured losses, however, rose at the same time as a result of the flooding in May 2014. Compared to the losses actually caused, insured losses were relatively small, which means there is also still a great deal of growth potential remaining in the non-life insurance segment.

Vienna Insurance Group is represented in Serbia by Wiener Städtische Osiguranje, which operates in both the life and non-life insurance markets. The company holds a total market share of 9.7%, putting it in fourth place in the overall market. It holds second place and fifth place in the life and non-life insurance markets, respectively.


Following double-digit growth in the previous year, the Turkish insurance market rose by 7.3% in local currency terms in 2014. Non-life insurance premiums increased by 9.0%, mainly driven by products other than motor vehicle insurance. The motor vehicle line of business recorded lower growth at 2.0%. Premium volume fell by 3.4% in life insurance.

The Group is represented in the Turkish insurance market by Ray Sigorta, which operates in the non-life area. VIG's 1.5% share of total premium volume places it in 13th place in the market.


The Ukraine fell into a deep recession as a result of military conflicts. This also affected the insurance market, where total premium volume suffered a year-on-year drop of 20.0% in local currency terms in the 1st–3rd quarters of 2014. Life insurance recorded a drop of 12.0%, and non-life insurance a decrease of 20.7%. With 389 insurance companies (at the end of September 2014), the Ukrainian insurance market is highly fragmented. The top 10 insurers only have a market share of around 30% of total premium volume.

VIG is represented by four insurance companies in the Ukraine: three non-life insurers – UIG, Kniazha and Globus – and the life insurance company Jupiter. The companies have a combined market share of 4.2%, which puts them in second place in the market. VIG is the market leader in non-life insurance, and holds ninth place in life insurance.


In local currency terms, total premiums rose by 4.2% in the Hungarian insurance market in 2014, with non-life insurance recording an increase of 3.9%. The effects of the insurance tax introduced in 2013 continue to be noticeable and the competitive situation and customer price sensitivity make it very difficult to pass the costs on to policy holders. After declining for many years, motor vehicle liability insurance recovered well in 2014, achieving an increase of 9.2%. Life insurance premiums rose 4.4%. At the end of November 2013, the Hungarian parliament passed a law giving preferential tax treatment to pension insurance starting in 2014.

VIG is represented in Hungary by the life and non-life insurer Union Biztosító and the life insurance company Erste Biztosító. An agreement was reached on the acquisition of AXA Biztosító in 2013 and the acquisition was concluded in 2014. This means VIG is now being represented by another company – which has since been renamed Vienna Life. The Group has a market share of 7.4%, putting it in seventh place in the overall market, sixth place in the non-life area (with a market share of 6.1%) and seventh place in life insurance (with a market share of 8.6%).