site.btaIFC Acquires Stake in Bulgarian Pension Fund Doverie

International Finance Corporation (IFC), a member of the World Bank Group, has acquired a stake of around 10% in Bulgaria's pension fund Doverie, said Vienna Insurance Group (VIG) Thursday. VIG holds a majority stake in Doverie.

The cooperation aims to strengthen and jointly further expand the Bulgarian pension insurance market, the statement said.

Peter Höfinger, member of the VIG Managing Board and and country manager for Bulgaria, is quoted as saying that his company still sees great potential of growth on the pension insurance market. "With IFC on board, which contributes its global expertise in this business segment, we can jointly contribute even more efficiently to the necessary strengthening of private pension provision in Bulgaria”.

Demographic developments are putting further pressure on the financing of state pension systems in many CEE countries. The pension and insurance business in Bulgaria thus represents an important system for ensuring social protection and preventing poverty in old age. IFC will also support Doverie in the technical expansion of its planned digital business activities and the use of digital channels to attract new members.

The company recalls that Bulgaria adopted the World Bank’s 3-pillar pension system in early 2000 to ensure the stability of the pension system. IFC’s investment in Doverie is in line with IFC’s strategy and objective to contribute to the improvement of the pension system in the CEE markets. 

Vienna Insurance Group holds a stake of around 93% in Doverie. The pension fund has been the market-leading pension fund in Bulgaria for 15 years and has a market share of 25%. As of mid-2022, assets of around EUR 2.3 billion were managed for around 1.2 million clients.