Wiener Staedtische Wins Over Albanian Market

Austrian Wiener Staedtische insurance company purchased at least 60 percent of Albanian Sigma insurance company.

Sigma was founded in 1998, with branches in Macedonia and Kosovo, while it employs around 160 workers in total.

Development potential

Sigma will enable Vienna Insurance Group the opportune breakthrough on three new insurance  markets at the same time, with vast potential for business development, said director Guenter Geyer.

The Albanian company realised income of 15 million euro in Albania, Macedonia and Kosovo last year. It is second positioned in the Albanian market, wit ha market share o 19 percent. Basis of its business is car insurance.

Trend of growth in the next 20 years

Potential for the growth of the Albanian market is so great, seeing how singling out insurance money per capita is only a tenth of that in Georgia and Belarus, while backlog behind new EU members is even greater, Geyer claims, anticipating long- term trend of growth in the next 20 years, while western European insurance market level is reached.

Albanian insurance market recorded profit in 2005 from insurance premiums in the amount of 32 million euro, with market coverage rate (premiums in GDP percentage) of only 0.5 percent in relation to 8.6 percent at more mature markets of western Europe.