Vienna Insurance Group will merge its Bulstrad and Bulgarski Imoti non-life units in Bulgaria in a bid to strengthen its market positions under the Bulstrad brand, the Austrian insurer said on Wednesday.

The merger is subject to regulatory approval and is expected to be completed during the first half of 2012, it said in a statement.

"By merging the two property insurance companies, the Vienna Insurance Group will achieve a integrated and clear presence in the Bulgarian market. This will increase our efficiency and make use of earnings-based synergies," commented Günter Geyer, CEO of the Vienna Insurance Group.

Bulgaria is one of the Vienna Insurance Group's strategic core markets in Central and Eastern Europe.

The Vienna Insurance Group with its Group companies claims to be the biggest player on the Bulgarian insurance market with a 15.4 percent market share in the first half of 2011.