Let the battle begin!
GROUPAMA Asigurari, the newest player on the Romanian insurance market, officially launched its activity yesterday, September 28. Thus, two years after entering in Romania, through the acquisition of BT Asigurari, and a year and a half after taking over ASIBAN, following the largest merger process on the local market, GROUPAMA Asigurari enters the fight with great objectives.
"Over the next four years, the company aims to obtain a market share of 25% on the general insurance segment (excepting motor), to reach 20% on the life insurance sector and to maintain its market share of 15% on the motor segment", Denis ROUSSET, General Manager of GROUPAMA Asigurari has stated.
GROUPAMA's objectives in Romania are overtaking the local market leaders, in the conditions in which, for comparison, in H1/2009, the three member companies of VIG (ASIROM, BCR Asigurari and OMNIASIG), added-up, made a little less than 25% of the non-motor general insurance market, while ALLIANZ-TIRIAC owned 15% of the underwritings.
To achieve these objectives, the President of GROUPAMA, Jean AZEMA, excludes, for now, other possible acquisitions in Romania. "GROUPAMA Asigurari relies on organic growth, excluding, at least temporarily, the possibility of new acquisitions", Jean AZEMA said.
One of the first steps taken by GROUPAMA to reach its goals was restructuring its territorial sales network. This was divided into 8 regions, consisting of 300 agencies and sales points, under the coordination of 150 agency managers. Meanwhile, the sales force will count over 1,200 employees and 6,000 independent agents. Currently, direct sales represent 49% of the total consolidated portfolio of GROUPAMA, while the brokers and the bancassurance channels own 51%.
The real challenge of the new company will be regaining profitability, considering that, in 2008, the three companies owned by GROUPAMA have recorded losses of almost EUR 76 million.
During a press conference held in November 2008, the French announced getting into the black as objective for 2009.
"This objective was postponed for 2010, considering that the effects of the economic crisis have been felt in Romania a lot stronger than initially expected", explained Jean Francois LEMOUX, International General Manager of GROUPAMA.
GROUPAMA ended the first half of this year with a 11.9% decline of businesses in Romania, to EUR 104 million, amid a significant reduction in the underwriting activity on life and health insurance segment.
Cumulated underwritings of the companies ASIBAN, BT Asigurari and OTP Garancia have brought the French group up to the third place on the insurance market, with a market share of about 9.6%, 3 percentage points less than the previous year.
Author: Mihaela CIRCU
on 29.09.2009
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