Based on the strong and well established cooperation in effect since 1998, the EBRD (European Bank for Reconstruction and Development) is expanding its framework agreement with UNIQA from the previous EUR 70 million to EUR 150 million, which will be available in the future for minority participations in existing UNIQA subsidiaries in Central and Eastern Europe as well as for any further acquisitions. The corresponding contracts were signed on Monday, November 12, 2007 by Kurt Geiger, EBRD Business Group Director Financial Institutions, and UNIQA Chairman of the Management Board Konstantin Klien.

As the first new project based on this expanded framework agreement, the EBRD is taking over 20% of UNIQA Osiguranje, currently the fifth-largest insurance company in Bosnia.

Since the start of the cooperation, EBRD has already participated in UNIQA subsidiaries in Croatia, the Czech Republic, Hungary and Poland. This successful, long-running cooperation forms the basis for this renewal and extension of the existing framework agreement. UNIQA views the EBRD as a strong partner with profound knowledge of these markets. In total, the EBRD has invested roughly EUR 46 million in UNIQA subsidiaries.

Dr. Konstantin Klien, UNIQA's CEO, has the following to say regarding the cooperation with EBRD: “We see the years of successful cooperation with the EBRD as an impressive recognition of our international strategy and our expertise in the industry as well as in the markets of Southern and South-eastern Europe. The enlargement of the framework agreement from EUR 70 million to EUR 150 million means an increase in our financial latitude for the expansion of the existing companies as well as for any new acquisitions. Naturally also of particular importance is the special knowledge and experience in the specific characteristics of each of the individual countries in the region that is brought to the partnership by EBRD and which forms a perfect compliment to our technical know-how and our understanding of the insurance markets.” In the next step, Klien would like to discuss with the EBRD investments in the Serbian UNIQA companies: “We will invite them to come on board with all subsidiaries that we have in the countries on which the EBRD is focused and encourage their participation in the further development of the insurance sector as a significant component of a functioning market economy.”

Kurt Geiger, EBRD Business Group Director Financial Institutions, sees the expansion of the cooperation with UNIQA as a good example of how the bank works together with outstanding strategic investors in the region, thereby contributing to the strengthening of the insurance industry. “Together with a strong partner such as UNIQA, we are expanding our activities in South-eastern Europe and promoting improved business methods and competition through the understanding we have of these countries and the professional know-how we bring,” says Geiger. The introduction of new, modern insurance products will above all serve the needs of private customers as well as small- and medium-sized enterprises.

UNIQA and EBRD – a successful partnership
In 1998, UNIQA signed the first framework agreement with the European Bank for Reconstruction and Development (EBRD), with the goals of financial investments for the establishment of insurance activities in Eastern Europe as well as promoting the exchange of market know-how with the renowned bank.

The contract initially covered five countries and comprised an investment volume of 18.8 million ECU. Already in May 1999, the first project contract for a 16.67% stake in the Czech UNIQA subsidiary was signed. This was followed in November 1999 with a 20% engagement in UNIQA Croatia. Due to further acquisitions by the UNIQA Group, the existing framework agreement with the EBRD was expanded in July 2003 to EUR 70 million and to cover all 27 operating countries of the EBRD. These are the countries of Central and Eastern Europe, the former Soviet Union as well as South-eastern Europe. At the same time, the contract term was established as the end of 2007. This investment commitment to UNIQA represented the largest volume that had yet been granted by the bank to an insurance company for expansion of its Eastern European activities. In August 2003, the project contract with the UNIQA property and life insurance company in Poland was concluded with an investment level of 30%. The entry by the EBRD into UNIQA Hungary at a level of 15% followed in December 2003. In 2007, the planned exit from the Czech UNIQA subsidiary took place after eight years of successful cooperation with the EBRD.

UNIQA Osiguranje d.d. / Bosnia and Herzegovina
In 2005, UNIQA took over from the local Raiffeisenbank the majority of Osiguranje d.d., which was founded in 1997 by Raiffeisen, and subsequently renamed the company UNIQA d.d. in accordance with the single brand strategy. With this acquisition, UNIQA simultaneously expanded its presence in the south-eastern part of Central Europe and extended the “preferred partnership” with the local Raiffeisen banks in Eastern and South-eastern Europe into one more country.

In the years since the takeover by UNIQA, the company has experienced growth in all segments significantly exceeding that of the market and in 2006 reached fifth place among insurance companies operating in Bosnia with approximately EUR 10 million in premiums and a market share of roughly 8%. In the life insurance segment, UNIQA Osiguranje already holds third place.