AXA's agreement with BNP Paribas gives it an entrance into the Ukranian property and casualty market
AXA and BNP Paribas has reached an agreement to set up a partnership in the Ukrainian property and casualty insurance market.
AXA will acquire from BNP Paribas' subsidiary UkrSibbank a 50% stake in its insurance subsidiary, Ukrainian Insurance Alliance (UIA).
UIA sells mostly individual motor and property insurance through UkrSibbank’s 1,000 branches. In 2006, it more than doubled its revenues compared to the previous year to $35m.
Following this operation, UIA will be able to seize the growth prospects of the Ukrainian market, by combining the strength of UkrSibbank’s network and AXA’s expertise in insurance product development, client service and claims management, AXA said.
“The Ukrainian insurance industry is still very fragmented with the top 10 players... controlling just above 40% of the market
The Ukrainian insurance industry is still very fragmented with top 10 players, including UIA, controlling just above 40% of the market.
It enjoys very strong growth potential,among the cvoluntry's 47 million inhabitants and has a very low penetration rate.
Completion of the transaction is expected to take place before year-end.
