Vienna Insurance negotiates to acquire major ownership share in Sigma

TIRANA, March.18- The general director of the Sigma insurance company, Qemal Disha, announced on Monday that the Austrian firm “Vienna Insurance”, has started negotiation to acquire 60 percent of the ownership of the company. The negotiations so far has been satisfactory, Disha has added. The Austrian firm is trying to expand its activities through this purchase not only in the Albanian market but also in he Kosovar and Macedonian one. Sigma has been classified third in the country given its annual 2006 revenue figure of 15 million euro. Albanian activities only generated around 8 million. Vienna Insurance is the second largest group that possesses eastern European companies after the large German group “Alianz”.
Four insurance companies in Albania could change ownership in the upcoming months, according to different sources. In February, 51 percent of the medium-sized company InterAlbanian was sold to Aspis Group of Greece, for 2.1million euro.
Last week, Vienna Insurance Group, agreed to buy 60 percent of Sigma, the second largest insurer in the country. SIGAL, is expected to sign the agreement in the next week.
Meanwhile, the Albanian government has said that it would like to sell its 51 percent stake in the state owned INSIG within this year. Till now, the insurance market, which with an overall annual revenue estimated at USD 42 million, has been under the control of local businesses. However, increasingly companies have been searching for experienced foreign investors aiming to strengthen their operations. During last years, insurers in Albania have accumulated debts of $ 12 million. This debt has been incurred mainly from Albanian owned vehicles that have been in accidents outside of the country. The Insurance Authority has introduced new rules, which require a minimum capital level as well as the level of risk coverage. Debts make up the accumulated profit of the least three years.