Waberer's is buying Hungarian Post insurers
Gránit Biztosító has today agreed to acquire a 66.925% stake in Hungarian Post Insurance Plc. and Hungarian Post Life Insurance Plc., which are significant players in the domestic insurance market with a complex portfolio of life and non-life insurance products.
The Posta Insurance Companies' combined earned premiums were HUF 60.7 billion, while their net after-tax profit was HUF 2.2 billion in 2023.
For comparison, Waberer's turnover was €711 million in 2023, which (at last year's average exchange rate of 381.85 EURHUF) corresponds to HUF 271.5 billion. The Post Insurance Companies' revenue would have increased this by 22.4% last year.
Waberer's after-tax profit in 2023 was €29.7 million, or HUF 11.3 billion at last year's average EURHUF exchange rate. In comparison, the post insurers' after-tax profit of HUF 2.2 billion is therefore significant, as it would have increased Waberer's 2023 profit by 19.4%. But since Waberer's does not own 100% of the two insurers, the profit per company would theoretically be only around HUF 1.47 billion.
The closing of the transaction is subject to customary anti-trust clearance and conditions set out in the sale and purchase agreement and is expected in autumn 2024. Waberer’s will provide a more detailed presentation about the acquired companies and the Group’s strategy regarding the insurance activities after the closing of the transaction, it said in a filing on the website of the Budapest Stock Exchange (BSE).
The acquisition is closely linked to the Waberer's Group's strategy until 2027, one of the key objectives of which is to further expand the Group's presence in the Hungarian insurance market.
"Waberer's Group entered the insurance market 16 years ago to cost efficiently insure its own fleet. Subsequently, it started selling 3rd party commercial vehicle and passenger car insurance products, and within a few years achieved a Top-5 position in the MTPL segment," commented Zsolt Barna, Chairman and CEO of Waberer's International Plc.
"The Group's strategic objective is to further diversify its currently successful but focused insurance business and to actively participate in the consolidation of the Hungarian insurance market. After the closing of the transaction, we intend to jointly manage a successful company with Hungarian Post as co-owner and strategic partner, exploiting synergies in existing products and distribution channels and with a dominant market share in the Hungarian insurance market," he added.
Waberer's Group’s aim with the transaction is to diversify the activities of its insurance subsidiary, Gránit Insurance, which currently provides mostly passenger and commercial vehicle and transportation related insurance services, and to leverage the identified sales and operational synergies.
As a result of the transaction, the Group's non-life insurance activities will be complemented by retail insurance products such as home insurance, travel insurance and accident insurance (which are in the main focus of Hungarian Post Insurance).
By acquiring a stake in Hungarian Post Life Insurance, the Group will acquire a share in one of the largest players on the Hungarian life insurance market and will be present in the life insurance segment. We also see significant synergy potential in the cross-selling opportunities through the physical points of sale, which are the main distribution channel of Post Insurance, and through the digital distribution channels of Gránit Insurance.
Waberer's share price rose 4.2% on the announcement and gained 9.1% this year.
Cover photo: Getty Images
