The International Finance Corporation (IFC), a member of the World Bank Group, will acquire approximately 20% of each of USG and Kniazha, two Ukrainian non-life insurance companies owned by the Vienna Insurance Group (VIG), through a capital increase, subject to regulatory approval.
With IFC’s support, the companies are expected to expand their product portfolios and accelerate their digital strategies.
VIG said it also intends to play an active role in Ukraine’s post-war reconstruction, building on its existing partnerships with Aon and Lloyd’s.
IFC, VIG Holding and two local companies have reportedly signed corresponding agreements.
VIG said that with the support and comprehensive expertise of IFC as an important partner, it will promote the growth of the Ukrainian insurance market and further expand its strong position in Ukraine.
Peter Höfinger, Deputy CEO of Vienna Insurance Group, commented: “We have been working with IFC since the end of 2022 when IFC acquired a stake in our Bulgarian pension fund Doverie. While the focus in Bulgaria is on expanding pension fund operations to strengthen capital-financed pension provision and combat old-age poverty, expanding insurance coverage in Ukraine is critical for the country’s future reconstruction. With IFC and our partnership with AON With our existing partnership with Lloyd’s, we are ready to take proactive action to play an important role in this country’s recovery.”
Harald Riener, Member of the Management Board of Vienna Insurance Group and responsible for Ukraine, said: “We consider IFC’s investment in our Ukrainian company not only as a sign of confidence and recognition of our expertise in the Ukrainian market, but also a commitment to this country and its great potential, which both IFC and we will continue to see. Ukraine is and will continue to be part of our core market in Central and Eastern Europe.”
“We are very proud of the tremendous resilience of our Ukrainian colleagues, whose unwavering commitment ensured the company’s stability and profitability despite difficult war conditions.
“Together with IFC, we will leverage the expertise of our teams and partners in the country to provide high-demand insurance solutions for the country’s reconstruction once the war is expected to end soon.”
Vittorio Di Bello, IFC Group Director for Financial Institutions for Europe, Latin America and the Caribbean, said: “By protecting key sectors, with a focus on transport, logistics, energy, agriculture, housing and health, the insurance industry can help protect assets, manage risk and promote growth.
“IFC’s equity investment in Ukrainian insurance companies injects scarce long-term capital into the sector, sends a strong signal of confidence in its resilience and provides the private sector with the stability it needs to weather challenges and drive recovery.”
