Sofia, Bulgaria, December 22, 2022— A new investment by IFC will help further the development of a robust private pension market in Bulgaria, reducing the risk of poverty in the country's rapidly aging population.
IFC has agreed to acquire up to 10 percent of the share capital of the Pension Assurance Company Doverie AD (Doverie), owned by Vienna Insurance Group AG Wiener Versicherung Gruppe (VIG) – Bulgaria's largest pension management company. IFC's investment will be complemented by advisory services to help Doverie develop a long-term digital strategy and capabilities.
"As part of our VIG 25 strategy program, we are intensifying our involvement in the pension fund business, where we see continued great potential for growth," said Peter Höfinger, member of the VIG Managing Board and country manager for Bulgaria. "With IFC's global expertise in this area, we can jointly continue to help strengthen private pension provision in Bulgaria."
Countries around the world are being impacted by aging populations and outward migration. Combined with stressed government finances, that has reduced financial support for the elderly and led to increased poverty. With the third-oldest population in Europe, Bulgaria is projected to move from having more than three working-age people for every person aged over 65 years to less than two by 2060. Private pension funds can help address these challenges.
"Our investment in Doverie aims to support the development of the pension system and improve access to social protection services in Bulgaria," said Vittorio Di Bello, IFC's Regional Head of Industry for Financial Institutions Group, "Strengthening institutions for sustainable growth is a key pillar of our program in the country to tackle poverty."
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
About Pension Assurance Company Doverie AD
PAC Doverie A.D. is the largest Pension Assurance Company in Bulgaria. The company operates an extensive network of 61 branch offices and has its own sales network and cooperates with external sales agents and an extensive third party distribution network. Doverie is majority owned by Vienna Insurance Group AG Wiener Versicherung Gruppe (VIG) with a 92.6% ownership stake, while 6.8% is owned by the country's largest confederation of trade unions (CITUB). VIG is the leading insurance group in the entire Central and Eastern European (CEE) region with around 50 insurance companies in 30 countries. The more than 25,000 employees in the VIG take care of the day-to-day needs of more than 22 million customers. VIG shares have been listed on the Vienna Stock Exchange since 1994, on the Prague Stock Exchange since 2008 and on the Budapest Stock Exchange since November 2022. The VIG Group has an A+ rating with stable outlook by the internationally recognized rating agency Standard & Poor's.
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