|
EBRD cooperates with Wiener Städtische in Poland's life insurance sector
In support of the rapidly growing life insurance sector in Poland, the European Bank for Reconstruction and Development (EBRD) is taking a 10 per cent equity stake of PLN 3.0 million (EUR 0.72 million) in Wieden Zycie S.A., a life insurance company recently established by Wiener Städtische.
The EBRD plans to make a further equity investment of PLN 1 million (EUR 0.24 million) in Wieden Zycie in 2001.
"Life insurance in Poland has developed at a dramatic pace over the past two years, and this transaction will strengthen the Bank’s portfolio in this key sector. It will also help to diversify the range of life insurance products available to individuals and smaller businesses in Poland," says Jonathan Woollett, director for non-banking financial institutions at the EBRD. "The EBRD’s involvement in Wieden Zycie is a natural extension of our excellent cooperation with Wiener Städtische in the Polish non-life sector through Heros S.A."
The EBRD intends to participate in further capital increases alongside Wiener Städtische to ensure the long-term development of Wieden Zycie. Once it is granted a life insurance licence, which is expected shortly, Wieden Zycie will offer a range of life insurance and voluntary pension products to individuals and corporates under the voluntary pension reforms. It will also provide all the classes of life insurance currently allowed under Polish law.
Wieden Zycie S.A. is the sister company of Wiener Städtische’s existing non-life company, Heros S.A., in which the EBRD already holds a 10 per cent stake. Subject to the receipt of its licence, it will start operations on 3 January 2000. Wieden Zycie’s initial capital will be PLN 30 million (EUR 7.2 million).
Wiener Städtische is the largest Austrian insurance company with a strong commitment to central and eastern Europe. It has subsidiaries in the Czech Republic, Hungary, Poland, the Slovak Republic, and more recently in Croatia. In 1998, Wiener Städtische acquired a controlling stake in the existing non-life company, BTUiR Heros S.A., where the EBRD was already a shareholder.
The EBRD has invested in the insurance and pensions sectors throughout central and eastern Europe, undertaking 11 equity investments in Croatia, the Czech Republic, Estonia, Hungary, Poland and Russia.
|
