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VIG takes over Nuremberg Insurance for 1.38 billion euros!
The Vienna Insurance Group is taking over Nürnberger Versicherung for 1.38 billion euros. Largest takeover in VIG history.
VIG takes over Nuremberg Insurance for 1.38 billion euros!
Vienna Insurance Group (VIG) has taken a significant step in the European insurance market by acquiring Nürnberger Versicherung for 1.38 billion euros. This deal not only caused a stir, but is also the largest takeover in VIG's history. Loud Wall Street Online VIG is offering 120 euros per share in Nürnberger Beteiligungs-AG, which has already led to an increase in the share price of Nürnberger Versicherung. In the last month, the share price rose by over 80 percent and reached a value of 118.50 euros on Friday.
A significant portion of the shareholders have already accepted the takeover offer. 64.4 percent of major shareholders have signaled their consent to sell their shares. VIG, which previously only operated in Germany through the insurer InterRisk and as a reinsurer, is significantly expanding its market position with this acquisition.
Market development in the insurance sector
The acquisition of Nürnberger Versicherung comes at a time when the global market for mergers and acquisitions (M&A) in the insurance sector is declining. Only 346 M&A transactions were completed in 2023, compared to 449 last year. This decline is driven by high inflation and market uncertainty, making it difficult for many companies to find financing for transactions. How ProContra Online notes, these factors have caused transaction partners to enter a wait-and-watch mode, which has negatively impacted the overall number of transactions.
However, the recovery in M&A activity is forecast for 2024, with Europe potentially taking a leading role. Expectations of interest rate cuts by central banks could also lead to higher M&A levels. International insurers are particularly interested in new investment opportunities, particularly in areas with high volume but low premium contracts.
The takeover of Nürnberger Versicherung by VIG could therefore be seen as a sign that, despite current challenges in the market, there is potential for strategic expansion and integration.