Bulgaria's Bulstrad Acquires UBB-AIG to Boost Sales

Bulgaria-based Bulstrad, part of Vienna Insurance Group (VIG), has signed a deal to acquire 100% of UBB-AIG and conclude a cooperation agreement with United Bulgarian Bank (UBB), VIG said on Tuesday.

The price of the deal wasn't disclosed but Bulstrad said last month it planned to acquire full control of UBB AIG by buying five million ordinary shares for a total of EUR 3.2 M.

Through the acquisition VIG plans to diversify its portfolio in Bulgaria and to increase its sales potential, the insurer said in a press release.

"Bulgaria is one of our core markets. [?] this new distribution channel allows us to open up further customer segments," VIG CEO Peter Hagen commented.

UBB-AIG was set up as a bank-assurance company for UBB in 2006. It reported a net profit of BGN 1.38 M on premium income of BGN 4.5 M (EUR 2.3 M) for the financial year 2014.

UBB is the third-largest Bulgarian retail bank with more than one million customers.