The state will reduce its ownership stake in the Hungarian business of the Vienna Insurance Group insurance group, i.e. in the Alfa and Union insurance companies, from the previous 45 percent to 10 percent, the cooperation will continue within a strategic framework, the Ministry of Economic Development announced.

The sale price was not revealed, so it is not clear what the socio-economic value of the state “adventure” of the past year and a half was in the two insurance companies, and what justifies the maintenance of 10% ownership in the overtaxed insurance companies. Another insurance announcement from the state is expected soon: the new owner of Posta Biztosítók, which is also only temporarily taken over by the state, may be revealed.

Corvinus International Investments Zrt., which is 100 percent owned by the Hungarian State, and the Vienna Insurance Group (VIG) insurance group have signed an agreement on the reduction of the 45 percent minority state ownership in the Hungarian VIG companies to 10 percent.

GFM announced.

The Hungarian State, as a minority owner of the market-leading Hungarian holding that includes Alfa Biztosító and Union Biztosító, continues to support the development of the insurance sector as a sector of strategic importance, and the further increase of its competitiveness and performance.

The Austrian major owner buys back a block of shares representing a 35 percent ownership share from the Hungarian State. The closing of the transaction is subject to the permission of the Magyar Nemzeti Bank

they added.