Herbert Schimetschek, Chairman of UNIQA Versicherungen AG: “We have studied the Polish insurance market very carefully in the past few months, and finally decided on POLONIA as our partner. Whilst we initially considered setting up a new company, we were finally convinced by the know-how of the Polonia staff and consequently the potential of the company, that moving forward together would be the better path to follow.”

Together with the POLONIA management, UNIQA has already drawn up a list of measures for the next few months. The main emphasis is on strengthening the capital base and expanding in terms of staff and EDP.

With this partnership, UNIQA brings not only finance, but also the security and size of a major European group.  In addition to its home country of Austria, UNIQA is active and successful in Italy, Switzerland, Spain, Liechtenstein, Croatia, the Czech Republic, Slovakia and Slovenia, and in 1999 the Group achieved a premium volume of more than 31.5 billion ATS (9.15 billion PLN/2.289 billion EUR).

“With the additional finance and the incorporation into the network of an experience European insurance group, UNIQA will support the staff and marketing partners of POLONIA in helping the existing potential of the company to be realized more effectively. Thus we shall be able to further strengthen the market position of POLONIA and “Polonia Leben” and have completely new strategic options – especially in the growth area of life assurance”, added POLONIA’s Chairkman, Dr. Lech Michalik.

The signature of the outline agreement was accompanied by the start of intensive contacts between the POLONIA headquarters in Lodz and UNIQA headquarters in Vienna. Schimetschek: “The goal of constant improvement, respect, decency, a common cause and flexibility are the core values of the corporate philosophy of UNIQA. We are very pleased to give fresh life to these values with our colleagues in Poland and enrich them with Polish experience.”

First discussions on the participation of EBRD (European Bank for Reconstruction and Development) concerning the restructuring of the two Polish companies under the leadership of UNIQA were very positive. EBRD is already participating in the two UNIQA subsidiaries CRP in the Czech Republic and UNIQA Osiguranje (Croatia).

Polonia
"Polonia" was founded in 1990 as a purely private undertaking. The total premium income of “Polonia” amounts to about PLN 278 million (ATS 973 million/EURO 70.71 million), with a market share of about 2.5%. The core business of "Polonia" is in motor insurance, which plays a dominant role in the market as a whole.

"Polonia Leben" was founded in 1994 as a subsidiary of Polonia. The large majority of the share capital is in the sphere of influence of the majority shareholder of Polonia. The premium income  ( PLN 4 million /ATS 14 million /EURO 1,02 million ) of the young company is still relatively small. However, in view of the increasing importance of private car (e.g. introduction of obligatory pension funds in May 1999) a huge growth is forecast for this field. Membership of the UNIQA Group and hence the additional capital becoming available will now make it possible to get an extensive licence and to offer all forms of life assurance in future. The combined headquarters of "Polonia" and "Polonia Leben" is in Lodz, where they employ around 200 professionally managed staff.. The insurance products are marketed by 58 representatives and 570 agencies with about 2,700 freelance agents. "Polonia" and "Polonia Leben" are to date the only Polish insurance companies using this form of selling.

UNIQA Group Austria 
With a premium volume of 31.5 billion ATS (EUR 2.29 billion./PLN 9.15 billion) and about 6,500  staff Austria is one of the leading insurance groups in Central Europe. UNIQA came into existence in 1999 as a result of a merger between the traditional Austrian companies Bundesländer-Versicherung and Austria-Collegialität. All the international activities of the Group are co-ordinated by UNIQA International Versicherungs-Holding - a 100% subsidiary of the stock exchange listed UNIQA Versicherungen AG.

With this acquisitionof the majority holding in POLONIA the UNIQA Group Austria is firmly promoting the internationalization of its core business. Its involvement in the significant and future-orientated market of Poland represents UNIQA’s largest foreign venture so far. Only a few weeks ago UNIQA reached agreement with the Generali Group on a take-over of Camica Versicherung, and thus strengthened its presence in the Italian market.

The UNIQA Group Austria has many years of experience in Eastern and Central European markets and is active in insurance business not only in Austria, its core market, but in nine further European countries.