Finance Minister Mihály Varga has confirmed that the Hungarian state will acquire 45 percent stakes in insurers Aegon Biztosító and Union Biztosító.
After signing the deal on the acquisition with representatives of Vienna Insurance Group (VIG) on Monday, the minister said the investment is “hugely advantageous” for Hungary. Minister Varga noted that Aegon and Union hold a combined 20 percent share of Hungary’s insurance market and have a combined annual revenue of HUF 240 billion (EUR 671.8m). The acquisition serves to increase public wealth and to return strategic assets to state ownership, the minister said. He added that between 2002 and 2010, the left-liberal governments had sold off a significant chunk of state assets, privatising roughly 190 companies. The Fidesz-led government put an end to the sale of state assets, he said, adding that the previous system had been replaced by thoughtful policies. “Thanks to this, by 2020, the value of state assets increased to HUF 20,000 billion from HUF 11,000 billion in 2010,” Minister Varga said.
Photo credit: Facebook/Varga Mihály