Romania will become the most important market in the region for French insurance group Groupama, whose business stands at 16 billion euros a year. The company invested almost 600 million euros on the local market in buying Asiban, BT Asigurari and OTP Garancia and in covering the losses of these companies.
"Romania is currently the second biggest market in the Central and Eastern Europe after Hungary for us, but in a few years it will take the top spot, because of the growth potential, of our network of agents and of the distribution agreements we have signed with several banks," Jean Azema, chief executive of the group told ZF.
The French at Groupama, who officially launched their insurance company on the local market yesterday, a company created by the merger of Asiban with BT Asigurari, set out to gain a quarter of the general insurance market - except for auto insurance, over the next few years, after having invested almost 600 million euros in acquisitions and capital increases.
Groupama bought BT Asigurari, Asiban and OTP Garancia for 450 million euros in 2007 and 2008 and later invested 128 million euros in capital increases to cover the losses of the three insurers. This is the biggest investment made on the Romanian insurance market so far.
"The acquisition of the three companies in a very short time allowed us to get a significant market right from the start," said the CEO of the group with a turnover of 16.2 billion euros in 2008. Groupama has operations on the insurance, banking and asset management markets in Europe and Asia. The group also owns a private equity fund.
Groupama accounted for 9.6% of the local insurance market at the end of the first half, ranking third after Allianz-Tiriac and Omniasig. The new company, registered with the Trade Registry early in August will absorb OTP Garancia, the smallest insurer the Frenc
