Vienna Insurance Group (VIG) has agreed to acquire an additional 35% stake in its Hungarian business from Corvinus.

The deal will increase the Austrian insurer’s stake in VIG Magyarország Befektetesi Zrt to 90% from 55%.

Corvinus will continue to hold the remaining 10% stake in the business through its investment management company, Corvinus International Investments Zrt.

The companies did not reveal the financial terms of the deal.

Subject to approval by the Hungarian National Bank, the deal is slated to close by the end of November 2023.

Commenting on the deal, VIG CEO Hartwig Löger said: “In Hungary, as in all our countries, we are pursuing a long-term market strategy. With the buyback, we are emphasising our long-term commitment to the Hungarian market and are looking forward to continuing the strategic partnership with the Hungarian Government.”

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By GlobalData

Last year, VIG acquired Dutch insurance company AEGON group’s Hungarian companies for €620m ($675.88m).

VIG acquired Aegon Hungary Holding and Aegon Hungary Holding II, which hold a 100% stake in Aegon’s Hungarian arm.

At that time, VIG CEO Elisabeth Stadler said: “With the closing in Hungary, we will achieve our target of being among the top three in the market by the end of 2025 already in 2022 and take over the market leadership in Hungary.”

VIG, which has been operating in Hungary since 1996, has a market share of more than 19%.

In the first half of 2023, VIG’s two operating insurance companies, Alfa and UNION, reported a premium volume of €403m.