Bulgaria’s Bulstrad, part of Vienna Insurance Group (VIG), has completed the acquisition of the country’s bancassurer UBB-AIG, VIG said on Tuesday.

Simultaneously with the acquisition, a cooperation agreement with United Bulgarian Bank (UBB) has been signed, VIG said in a statement.

UBB, owned by the National Bank of Greece (NBG) group, was Bulgaria’s fifth-largest bank by assets at the end of November 2015, according to statistical data of Bulgaria’s central bank.

“As a result, Vienna Insurance Group has expanded its portfolio in Bulgaria, enhancing sales potential in the country as part of the Group’s multi-brand distribution strategy,” VIG said. 

“By acquiring UBB-AIG Bulstrad took advantage of the opportunity to strengthen its presence in the Bulgarian market and open up further customer segments,” commented Peter H?finger, member of the VIG managing board.

UBB-AIG posted net profit of BGN 1.38 M (EUR 700,000) on premium income of BGN 4.5 M (EUR 2.3 M) in 2014, according to the statement.