21. 06. 12. - 16:56
VIG looking again to invest in eastern real estate
The stock-exchange listed Vienna Insurance Group (VIG) plans to invest more heavily in Central and Eastern European real estate, local media reported on Wednesday.
"Central and Eastern Europe are a more interesting objective for us than western countries," new VIG CEO Peter Hagen said in an interview in the Wednesday edition of the "Handelsblatt."
The real estate market slump in that region is of no concern, Hagen said, because the issue comes down to attractive locations.
"The center of Prague will always be the center of Prague," he said.
Hagen added that the growth potential for insurance policies in Eastern Europe is high, and a per-person doubling of life insurance plans to 20 dollars would result in an extra premium value of $500 million.
"Those would be contributions that we in the west could only dream of," he said, adding that an expansion to Russia was not planned due to various complexities in the market and because of its much larger size.