AXA and UkrSibbank, the Ukrainian banking subsidiary of BNP Paribas, have announced that they have reached an agreement to acquire 99% of the share capital of Vesko, Ukraine's 6th largest property & casualty insurer.
Vesko's revenues for 2006 of $28 million were well balanced between individual and commercial lines and between proprietary and non-proprietary distribution.
In June 2007, AXA and UkrSibbank agreed to join forces in the Ukrainian P&C insurance market, establishing a joint-venture called Ukrainian Insurance Alliance (UIA) Transaction subject to regulatory approvals and expected to take place before year-end.
The consolidation of Vesko and UIA's market shares will give AXA and BNP Paribas the third place (ca. 7% market share) on the fast growing Ukrainian market. Both companies will be held jointly by AXA and UkrSibbank and both will be under the management control of AXA.
Completion of this transaction is subject to the customary regulatory approvals and is expected to take place before the end of 2007.
Source: BNP Paribas