Triglav Acquires Majority Stake in Raiffeisen Pension Insurance Company

Raiffeisenbank Austria (RBA) and Triglav Group signed an agreement on Tuesday for the sale of a majority stake in Raiffeisen Pension Insurance Company (RMOD), whereby RBA sold the majority of its stake in RMOD of 75 percent minus one share, while retaining 25 percent plus one share.

In accordance with the business strategy in the Croatian market and strengthening the position of banking and financial services, Raiffeisen Bank decided to reduce its stake in the insurance services segment, it is stated in the announcement which does not disclose the value of the transaction.

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RMOD remains the only pension insurance company in Croatia authorized to pay pensions from mandatory and voluntary pension insurance based on individual capitalized savings (II and III pillar) and has been successfully operating for over 15 years, it adds.

After the completion of the savings period in mandatory and voluntary pension funds, more than 24,000 users have contracted a pension with RMOD, with a good portion of users from voluntary pension funds having already fully received their temporary pension payments contracted for five years, while some users of pensions from mandatory pension funds returned to the Croatian Pension Insurance Institute to take advantage of a more favorable pension.

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As of April 1, 2018, there were a total of 11,557 active pension contracts in payment, of which 276 contracts were from mandatory pension insurance, it is stated in the announcement.

“Considering the fact that RMOD has been successfully operating for over 15 years, we can say that the business is stable and that RMOD finishes each year with a positive profit account,” it adds.

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The business cooperation with Triglav does not affect the operations nor change the business policy towards Raiffeisen Company for Managing Mandatory and Voluntary Pension Funds d.d. (RDMF), with which RBA successfully continues further operations, RBA emphasizes.

Raiffeisen Company for Managing Mandatory and Voluntary Pension Funds d.d. manages three mandatory pension funds and seven voluntary pension funds.

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At the end of March 2018, there were more than 561,000 members in Raiffeisen mandatory pension funds and the total assets under management were over 28 billion kuna, while Raiffeisen voluntary pension funds had more than 75,000 members, and the total assets of all funds exceeded 1.3 billion kuna, it is stated in the announcement.

From the start of operations until the end of March 2018, the average annual return of the Raiffeisen mandatory pension fund category B was 5.84 percent, while the Raiffeisen mandatory pension fund category A achieved a return of 8.3 percent, and the Raiffeisen mandatory pension fund category C a return of 7.53 percent, it is stated in the RBA announcement.

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Triglav Insurance also reported the signing of the contract via the Ljubljana Stock Exchange, noting that the contract was signed with deferred conditions, primarily obtaining the consent of the regulator.

With this purchase, the Triglav Group enters the Croatian pension insurance market, expands its operations, and strengthens its position in Croatia in accordance with the group’s development and growth strategy, Triglav Insurance emphasizes.