AXA has said goodbye to Serbia as the French insurer sells all of its business within the country to a competitor.
Vienna Insurance Group has agreed to purchase AXA’s Serbian businesses AXA Zivotno osiguranje Ado and AXA Nezivotno osiguranje Ado. The two businesses were responsible for taking in more than €12 million (£10.3 million) in premiums during 2015, and their customer count is over 106,000.
City AM has reported the details of the deal have been kept private.
Chief executive of VIG Elisabeth Stadler said Serbia is a growth market for VIG.
“Serbia is one of the four markets where we aim to reach a market share of at least 10% over the medium term,” she said. “The two AXA companies are a very good fit for our portfolio, and their acquisition will allow this goal to be achieved far sooner.”
Shareholders for both companies appeared to welcome the sale. Shares in AXA closed up 0.5% and VIG 1.1% for the day.
The deal is still subject to approval from regulators.
This is the latest in a series of recent developments at AXA in recent months.
Insurance Business UK recently reported on the company’s incoming CEO Thomas Buberl meeting investors to address the future of the business in the face of falling yields.
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