AXA Central & Eastern Europe announced the acquisition of 80 percent of B&B Insurance, the second largest insurer in Belarus, and its largest private insurer. AXA said the acquisition is another step in its "expansion in Central & Eastern Europe (CEE), one of its key growth areas."
B&B Insurance is focused on the P/C insurance market, "where it enjoys a 10 percent market share overall (?29 million [$40 million] revenues in 2009) and a voluntary market share between 20 percent and 40 percent depending on business lines," AXA said. "This performance is supported by a network of ca. 260 exclusive agents."
The bulletin also pointed out that the "Belarusian insurance market offers AXA a very significant potential for growth, as less than 20 percent are covered with casco insurance and less than 15 percent of households benefit from a home insurance."
Cyrille de Montgolfier, CEO of AXA Central & Eastern Europe, commented: "The acquisition of B&B is an excellent opportunity for AXA to enter a fast developing Belarusian market. In this market, we would like to replicate AXA's success in Ukraine, where we've become market leader in 3 years, by leveraging on geographical and cultural ties between the two countries."
The Acquisition is subject to regulatory approvals and other conditions. It is expected to take place in the first quarter 2011.