The International Finance Corporation (IFC), a member of the World Bank Group, will acquire a stake of around 20% in each of Vienna Insurance Group’s (VIG) two Ukrainian non-life insurers, USG and Kniazha, through a capital increase, subject to regulatory approvals.
Building on its existing partnerships with Aon and Lloyd’s, VIG said it also intends to play an active role in the reconstruction of Ukraine after the end of the war.
Thus, a corresponding agreement has reportedly been signed by IFC, VIG Holding and the two local companies.
With the support and comprehensive expertise of IFC as an important partner, VIG said it will promote the growth of the Ukrainian insurance market and further expand its strong position in Ukraine.
Peter Höfinger, Deputy CEO of the Vienna Insurance Group, commented, “We have been working with the IFC since the end of 2022, when it acquired a stake in our Bulgarian pension fund Doverie. While the focus in Bulgaria is on expanding the pension fund business to strengthen capital-funded pension provision and combat poverty in old age, extending insurance cover in Ukraine is essential for the future reconstruction of the country. With IFC and our existing partnerships with AON and Lloyd’s, we are preparing to take an active role in the renewal process of this country.”
Harald Riener, member of the Managing Board of Vienna Insurance Group and Managing Board member responsible for Ukraine, said, “We see IFC’s investment in our Ukrainian companies not only as a sign of confidence and recognition of our expertise in the Ukrainian market. It is also a commitment to the country and its great potential, which both IFC and we continue to see. Ukraine is and will remain part of our core market CEE.
“We are very proud of the immense resilience of our Ukrainian colleagues, whose unwavering commitment ensures the stability and profitability of the companies despite the difficult war conditions.
“Together with the IFC, we are leveraging the expertise of our teams and partners in the country to provide high demanded insurance solutions for the country’s reconstruction once the war hopefully comes to an end soon.”
Vittorio Di Bello, IFC’s Director of the Financial Institutions Group for Europe, Latin America and the Caribbean, said, “By safeguarding critical sectors — with a focus on transport, logistics, energy, agriculture, housing, and health — the insurance industry can help protect assets, manage risks, and enable growth.
“IFC’s equity investment in the Ukrainian insurance companies injects scarce long-term capital into the sector, sending a strong signal of confidence in its resilience and giving the private sector the stability needed to weather challenging conditions and drive recovery.”
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