A new group on the battlefield...
VIENNA Insurance Group (VIG) announcing it will have exclusive negotiations with UNIQA Group for the sale of Romanian insurance company UNITA took by surprise the local insurance market as the favorites for this deal were MUNICH Re and AXA.
The amount UNIQA will pay to VIG for this deal will rise to EUR 140-150 million, according to market sources. This price would correspond to the UNITA's underwriting volume in 2007.
It is also rumored that MUNICH Re was offering EUR 120-140 million EUR for the Romanian society.
The price above may be considered low compared with the 2 EUR to 1 EUR of turnover that GROUPAMA paid for ASIBAN or with the 1.2 EUR/1 EUR given by VIG for the insurance division of ERSTE. At the same time, for example, VIG paid only 0.7 EUR per 1 EUR of turnover when the group took-over ASIROM.
Contacted by XPRIMM Insurance Newsletters, VIG representatives said the two parties involved in the transaction have agreed keeping confidential the price of UNITA.
This takeover, which also includes insurer AGRAS, will increase UNIQA's presence on the local market to three companies, thus becoming the fourth insurance group in Romania, at less than one percentage point behind French GROUPAMA.
"VIG decided to sell UNITA after the acquisition of the insurance division of ERSTE, namely BCR Asigurari and BCR Life, to fulfill the EU anti-trust requirements", Alexander JEDLICKA, Coporate Communications EEC within VIG has declared.
"We see this transaction in a very positive way, basically we can say that a new insurance group was born in Romania", Radu MUSTATEA, General Manager ASTRA-UNIQA, has stated.
Specialists are now questioning about the strategy that UNIQA will adopt for the Romanian market.
"Everybody who knows the realities of the insurance market in Romania also knows that UNITA hasn't always had favorable periods, so this change should bring a review of the companies' organizing methods and operational process", Romeo JANTEA, Consultant, JANTEA Profesional stated. "Unlike VIG, a multi brand strategy adept, which grants a broad autonomy to its owned companies, UNIQA will be involved in an active and dynamic administration of UNITA", Romeo JANTEA explained.
Author: Alexandru CIUNCAN
on 30.05.2008
|
