Russian Polis

Transcription

Russian Polis

ENGLISH EDITION
#1 (345)
127083, Yunnatov st., 18, office 201
Moscow, Russia
Tel. +7 (495) 612-1093, 612-7457, 612-8118
Fax +7 (495) 612-8128
E-mail: [email protected]
www.in-sure.ru
© Russian Polis. All rights reserved.
January 10, 2012
Editorial: K. Makidonskaya (editor); K. Malykh
Key 2011 Market Events .......................................................................................................................3
Russia ....................................................................................................................................................3
Insurance ...............................................................................................................................................3
Market: Regulation ......................................................................................................................................3
Financial Megaregulator Set Up in Russia.................................................................................................3
Regulatory Bodies: Appointments and Resignations .............................................................................3
Pankin Succeeds Milovidov as Head of Federal Financial Markets Service .............................................3
Burykina Succeeds Reznik as Head of Financial Markets Committee of State Duma..............................3
Regulatory Framework: Crop Insurance...................................................................................................4
Russia Adopts Law on State Supported Crop Insurance ..........................................................................4
Market: Development ..................................................................................................................................4
Four Expert Councils Created under FFMS...............................................................................................4
FFMS Expert Council on Insurance Creates Working Group on Life Market Development......................4
Market: Competition....................................................................................................................................5
Russian Insurers Start Signing Compulsory Liability Insurance of Dangerous Objects Contracts............5
Companies: Expansion...............................................................................................................................5
Russian Regulator Grants Non-Life License to Aviva General Insurance.................................................5
MetLife to Start Direct Life Insurance Business in Russia .........................................................................5
Lloyd’s Coverholder SeaLine Starts Operations in Russia ........................................................................6
Reunion Enters Russian Market ................................................................................................................6
Korean K-Sure Enters Russia ....................................................................................................................6
Companies: M&A.........................................................................................................................................6
RESO Acquires 25% Plus One Share in VSK ...........................................................................................6
Russian Agricultural Bank Buys Insurer Gazgarant...................................................................................7
Sberbank Acquires 100% in Allianz Life ....................................................................................................7
Otkritie Financial Corporation Buys Insurer Otechestvo............................................................................8
SCOR to Take Part of Munich Re’s Russian Life Portfolio ........................................................................8
Liberty Mutual Interested in KIT Finans Strakhovanie ...............................................................................9
VTB Acquires 25% Plus One Share in Stolichnaya Insurance Group .......................................................9
AlfaStrakhovanie Acquires Health Insurer Siberia ...................................................................................10
Russia Partners Sells Its Stake in Contact-Insurance to Genesis Capital...............................................10
EBRD to Acquire 26.7% Stake in European Pension Fund.....................................................................11
Companies: Privatisation .........................................................................................................................11
Ugoria Privatisation Delayed until May 2012 ...........................................................................................11
Companies: Withdrawal............................................................................................................................11
VIG Doesn’t Leave Russian Market Yet ..................................................................................................11
Regulator Suspends License of Rostra ...................................................................................................12
Insurer Region Stops Operations.............................................................................................................12
Asiatrans Re Stops Signing New Contracts.............................................................................................12
Companies: Reorganisation.....................................................................................................................12
Shareholders Approve Reorganization of ROSNO..................................................................................13
SOGAZ-Sheksna to Merge SOGAZ-Agro................................................................................................13
TIT Mergers Nakhodka Re.......................................................................................................................13
MSK Completes Merger with Spasskie Vorota ........................................................................................14
Megapolis Changes Name into Eastern Insurance and Reinsurance Company.....................................14
CIS & Baltic Countries........................................................................................................................14
Insurance .............................................................................................................................................14
Regulatory Framework: Compulsory Insurance ....................................................................................14
Law on Compulsory Insurance Classes Comes in Force in Azerbaijan ..................................................14
127083, Yunnatov st., 18/201, Moscow, Russia. Ph. +7 (495) 612-1093, 612-7457, 612-8118. Fax +7 (495) 612-8128
E-mail: news @ in-sure.ru, www.in-sure.ru
©Russian Polis. All rights reserved.
Regulatory Framework: Capital Requirements ......................................................................................15
Uzbekistan to Gradually Raise (Re)Insurance Capital Requirements by 2014 .......................................15
Market: Regulation ....................................................................................................................................15
Insurance Supervisory Commission of Lithuania Liquidated ...................................................................15
Companies: Expansion.............................................................................................................................15
Sava Re’s Azerbaijani Life Joint Venture Applies for Registration ..........................................................15
Axa Interested in Georgian Market ..........................................................................................................15
Grupa Europa Enters Ukrainian Market...................................................................................................16
Pasha Heyat Enters Azerbaijani Life Market ...........................................................................................16
New Insurer Registered in Belarus ..........................................................................................................16
Uzbek Regulator Grants License to New Insurer.....................................................................................17
Hamkor Sugurta Enters Uzbek Insurance Market ...................................................................................17
ICD to Set Up First Islamic Insurer in Azerbaijan.....................................................................................17
Gras Savoye Enters Georgian Market .....................................................................................................17
Broker MediHelp International to Enter Moldova .....................................................................................18
Companies: M&A.......................................................................................................................................18
EBRD Invests in Universalna ...................................................................................................................18
Allianz Sells Its Kazakh Subsidiary ..........................................................................................................18
Kazakh Insurers Pana, Alliance Polis to Merge .......................................................................................19
Georgia-Based Aldagi BCI Acquires Portfolio of Insurer Partner ............................................................19
Companies: Withdarwal............................................................................................................................19
Generali Withdraws Ukrainian Non-Life Sector .......................................................................................19
Axa Completes Merger of Ukrainian Subsidiaries ...................................................................................20
VIG to Merge Its Georgian Subsidiaries ..................................................................................................20
Seesam Latvia Transfers Portfolio to Estonian Seesam .........................................................................20
Central and Eastern Europe ..............................................................................................................21
Insurance .............................................................................................................................................21
Regulatory Bodies: Appointments and Resignations ...........................................................................21
Jakubiak to Head Polish Financial Supervision Authority........................................................................21
Buzoianu to Head Romanian Insurance Regulator CSA .........................................................................21
SOGAZ Serbia to Start Operations in 2012 .............................................................................................21
CIGNA Expands to Turkey.......................................................................................................................22
Axa Enters Serbian Non-Life Sector ........................................................................................................22
Uniqa Enters Macedonian Life Market.....................................................................................................22
Uniqa Receives Life Operating License in Kosovo ..................................................................................22
Groupama to Enter Polish Market............................................................................................................23
Wustenrot Enters Croatian Life Market....................................................................................................23
Euler Hermes Launches Credit Insurer in Turkey....................................................................................23
CIG Pannonia Enters Hungary’s Pension, Investment Srvices Market ...................................................23
Posta Romana is Setting Up Insurer........................................................................................................24
Palladium Insurance Broker Enters Romania ..........................................................................................24
Companies: M&A.......................................................................................................................................24
KBC to Divest Warta, VIG Considered as Potential Buyer ......................................................................24
Eureko Raises Its Stake in Eureko Sigorta to 100%................................................................................25
Dexia to Sell Its Life Business in Turkey to MetLife .................................................................................25
Ageas Acquires 31% Stake in Turkish Aksigorta.....................................................................................26
VIG Acquires Albanian Insurer Intersig....................................................................................................27
KBC Launches Tender Offer on DZI Insurance .......................................................................................27
Talanx to Acquire Europa Group Jointly with Meiji Yasuda .....................................................................27
VIG Buys Bosnian Insurer Jahorina.........................................................................................................28
Open Finance Acquires Link4 Life ...........................................................................................................29
Romanian Regulator Approves Moldasig to Acquire Asito Kapital ..........................................................29
VIG to Acquire Polisa Zycie .....................................................................................................................29
Aegon to Consider Acquisitions in CEE, Including ING Assets ...............................................................30
Uniqa to Acquire Private Pension Company in Albania...........................................................................30
Albanian Life Insurer Sicred Buys Local Pension Company....................................................................30
Marsh Buys 15% in Czech Broker Insia...................................................................................................31
Willis Acquires Polish Insurance Broker ..................................................................................................31
April Group Becomes Sole Owner of Polish Broker OGB .......................................................................32
Uniqa Sells Its Stake in Astra to Nova Group ..........................................................................................32
Astra Asigurari Sells Its Stake in Generali Asigurari ................................................................................32
Companies: Privatisation .........................................................................................................................32
Albanian Government to Put for Sale Up to 100% of State-Owned Insig................................................32
Companies: Withdrawal............................................................................................................................33
Cardif Asigurari to Leave Romanian Market ............................................................................................33
KD Group Leaves Romania .....................................................................................................................33
Ardaf Completes Merger with Generali Asigurari ....................................................................................33
Amplico Life Completes Merger with MetLife...........................................................................................34
VIG to Merge Its Polish Subsidiaries InterRisk, PZM ..............................................................................34
VIG to Merge Its Bulgarian Non-Life Subsidiaries ...................................................................................35
Omniasig Shareholders Approve Merger with BCR Asigurari .................................................................35
Aegon Merges Polish, Romanian Life Subisidiaries ................................................................................35
CIG Pannonia to Restructure Its Romanian Operations ..........................................................................36
International Market............................................................................................................................36
Insurance .............................................................................................................................................36
SCOR Global Life Opens New Subsidiary in Australia ............................................................................36
Willis Re to Broker Life Reinsurance Business........................................................................................36
JLT Re Enters Life Reinsurance ..............................................................................................................37
Eurasia Enters Mexican Reinsurance Market..........................................................................................37
Companies: M&A.......................................................................................................................................37
SCOR Completes Acquisition of Transamerica Re from Aegon..............................................................37
Hanover Insurance Group Acquires Chaucer ..........................................................................................38
Hannover Re Acquires Reinsurance Portfolio from Scottish Re..............................................................38
Eureko Merges Achmea...........................................................................................................................38
Companies: Reorganization.....................................................................................................................39
Swiss Re Establishes New Corporate Structure under New Holding Company .....................................39
RSA Changes Operational Structure .......................................................................................................39
Key 2011 Market Events
Russia
Insurance
MARKET: REGULATION
Financial Megaregulator Set Up in Russia
In March 2011, Russia’s President Dmitry Medvedev signed the order to set up the country’s
financial megaregulator through the merger of the Federal Service for Insurance Supervision (FSIS) and
Federal Financial Markets Service (FFMS).
The draft abolishes the FSIS, with the FFMS taking over its responsibilities. The megaregulator
would supervise Russia’s financial sector, excluding banking and auditing institutions. The Ministry of
Finance will take over the right of legislative initative. /RP Newsline
REGULATORY BODIES: APPOINTMENTS AND RESIGNATIONS
Pankin Succeeds Milovidov as Head of Federal Financial Markets Service
On April 11, Russian Prime Minister Vladimir Putin signed order on appointment of Dmitry Pankin
as head of the Federal Financial Markets Service (FFMS). At the same time, Putin approved the
resignation of Vladimir Milovidov as head of the FFMS.
Prior to this, Pankin was deputy finance minister.
In August, Putin named Igor Zhouk, Yulia Bondareva and Oleg Pilipets deputy chairs of the
FFMS. /RP Newsline
Burykina Succeeds Reznik as Head of Financial Markets Committee of State Duma
On December 17, the general council of the Russia’s ruling party United Russia (Yedinaya
Rossiya) during its meeting nominated Natalia Burykina head of the State Duma Committee on Financial
Markets succeeding Vladislav Reznik who is deputy of the new (sixth) calling of the Sate Duma.
Burykina was head of the subcommittee on tax legislation of the State Duma Committee on
Budget and Tax during the previous (fifth) calling of the State Duma. Among others, she was one of
founders of audit and consulting company Unicon (currently BDO). In early 2000s, she moved to the state
service and joined the Committee on Budget and Tax. In 2003, she was elected member of the lower
house of parliament. /RP Newsline
REGULATORY FRAMEWORK: CROP INSURANCE
Russia Adopts Law on State Supported Crop Insurance
In late July 2011, Russia’s President Dmitry Medvedev signed law on state supported agricultural
insurance, according to the President’s official web-site.
Under the draft project, the state will co-finance 50% of the crop insurance premium from the
federal budget funds. The state-supported crop insurance will cover both crops and livestock. According
to the news agency Prime, the compensation under the state-supported crop insurance should be no less
then 80% of the total value of harvest or livestock insured.
The legislative piece provides for a professional union of state-supported crop insurers. The
union shall establish a compensation fund from companies’ contributions in the amount of at least 5% of
the crop insurance premium.
The legislative piece was approved by the State Duma on July 8, 2011 and by the Federal
Council on July 13, 2011. The law comes in force on January 1, 2012. /RP Newsline
MARKET: DEVELOPMENT
Four Expert Councils Created under FFMS
The Federal Financial Markets Service (FFMS) of Russia has launched four expert councils —
Council on Securities, Council on Corporate Management, Council on Collective Investments and Council
on Insurance, according to the information published on FFMS’ web-site.
The Council on Insurance will be headed by Igor Zhouk, deputy head of FFMS. The council
comprises 28 members-representatives of the country’s largest insurance companies, professional
unions, insurance scientific and educational organizations. Particularly, Vadim Demchenko, editor-in-chief
of Russian Polis Information Group, is among the council members.
The Councils on Securities and Collective Investments will be headed by Sergei Kharlamov,
deputy head of FFMS. The Council on Corporate Management will be headed by another FFMS deputy
head Elena Kuritsyna.
Dmitry Pankin, head of the FFMS, first announced the creation of the expert councils under the
FFMS in May this year at his meeting with Prime Minister Vladimir Putin.
The FFMS expects the councils to provide timely information from market participants. In
addition, the council-members will discuss the regulator’s initiatives. Finally, the creation of the expert
councils will help the service to establish more close cooperation with the market players. The decisions
of the councils will be of advisory nature and will help FFMS in developing legislative acts. /RP Newsline
FFMS Expert Council on Insurance Creates Working Group on Life Market Development
The Expert Council on Insurance of the Federal Financial Markets Service (FFMS) of Russia
during its meeting on December 16 decided to create working group on preparation of documents for
implementation of programme on life insurance market development in 2012-2013.
The programme is expected to be implemented in 2012-2013 at the expense of the insurance
market without attracting budgetary funds. As a result of its implementation, the total premium volume in
the sector is expected to amount to RUR0.3-1.2 trillion; premium per capita — to RUR3,000-8,000; the
share of life premium in GDP — to 0.5%-1.5% in the next 7-10 years.
In 2010, the total life premium came to RUR22.7 billion; premium per capita amounted to
RUR158; the share of life premium in GDP was 0.05%.
Thus, with the state support life insurance may become significant sector of the country’s
financial market during a short period of 7-10 years. In a mid-term perspective, life insurance may
assume material part of social and pension functions from the state which are currently financed from the
budget. In addition, life market could form a significant part of long-term financial sources for resolving
important issues in the sphere of economic development. /RP Newsline
MARKET: COMPETITION
Russian Insurers Start Signing Compulsory Liability Insurance of Dangerous Objects Contracts
In mid-December 2011, Russian insurers started signing their first contracts in the sphere of
compulsory liability insurance for hazardous industrial objects.
As RP Newsline reported previously, Russia’s President Dmitry Medvedev signed law on
compulsory liability insurance for hazardous industrial objects in July 2010. On October 1, 2011, the
government approved the rates in the class. In early November, it also approved the rules. Thus, the
insurers started to apply for licenses to provide compulsory liability insurance for hazardous industrial
objects.
Particularly, SOGAZ was the first company which concluded such contract and one of the first
nine insurers which received licenses to provide compulsory liability insurance for dangerous objects.
Overall, as of December 16, the Russian financial regulator FFMS has granted 28 licenses. The first nine
were granted on December 6 to nine insurers, including Alrosa, Region Soyuz, ZhASO, Energogarant,
RESO-Garantia, SOGAZ, Transneft, VTB Insurance and Rosgosstrakh. On December 8, the regulator
granted licenses to eight more insurers, including Siberian House of Insurance, United Insurance
Company, National Insurance Group, Chulpan, Russian Insurance Transport Company, Kapital
Insurance, Gefest, and UralSib Insurance Group. On December 13, insurers Metroton and
Surgutneftegaz were also licensed to provide this class. On December 15, the FFMS has granted
licenses to nine more companies, including Guta-Insurance, Regiongarant, Insurance Business Group,
st
21 Century Insurance Company, Ingosstrakh, First Insurance Company, VSK, MAKS and
AlfaStrakhovanie.
At the same time, Russian media RBC-Daily reported that other members of the National Union
of Liability Insurers (which also applied for licenses) believe the situation is unfair and violates competition
as the already licensed companies started signing contracts (the Union already gives blanks of policies).
The insurance companies think that the regulator should have granted all licenses in the same day.
All members of the National Union of Liability Insurers may apply for licenses. Currently, the
Union comprises 53 member-companies, including Severnaya Kazna, Ergo Rus, Construction Insurance
Group, Kovcheg and Chartis which joined the association in December.
The law on compulsory liability insurance for hazardous industrial objects is in-force from January
1, 2012. The liability limit in the new class will be RUR10 million-RUR6.5 billion depending on the number
of potential victims. The upper threshold for property claims will reach RUR500,000, for injury claims —
RUR2 million per person. Death benefit is set at RUR2 million. /RP Newsline
Exchange rate as of December 31, 2011:
EUR1=RUR41.67
Source: Central Bank of Russia
COMPANIES: EXPANSION
Russian Regulator Grants Non-Life License to Aviva General Insurance
The Federal Financial Markets Service (FFMS) announced in late July 2011 that it had granted
non-life operating license to Aviva General Insurance, subsidiary of Aviva.
In particular, the regulator approved Aviva General Insurance to provide property (excluding
vehicle) and third party liability insurance services. At the same time, the FFMS refused to grant financial
risks insurance license to the company.
As RP Newsline reported previously, Aviva General Insurance applied for an operating license to
the Russian insurance regulator in June, 2010. The company was registered in Moscow in April 2010
through the re-registration of Aviva Financial Services.
At that time, the authorized capital of the newly established insurer amounted to RUR33 million.
Aleksandr Zhoukov was named the company’s CEO. Aviva General Insurance expected to provide
property, liability, A&H and financial risks insurance.
Aviva is represented in Russia by life insurer Aviva and non-state pension fund Aviva. Life insurer
Aviva was set up in 2005 while the non-state pension fund Aviva was established in 1995. In May 2009,
Aviva announced that it had finalized the acquisition of ING Group's private pension fund and its holding
company ING (Eurasia) Financial Services in Russia. /RP Newsline
MetLife to Start Direct Life Insurance Business in Russia
US-based MetLife, shareholder of Russian insurer MetLife Alico, plans to launch a direct life
insurance project in Russia, Interfax reported in mid-July 2011 referring to Robert Henrikson, chairman of
the board of MetLife.
Henrikson stated that the project will be implemented during a year. This is the first project of
direct life insurance sales through the Internet in Russia.
According to Henrikson, MetLife has direct life insurance operations in many countries. Now the
group plans to launch such project in Russian market which is considered as growth potential.
Alexander Zaretskiy, president of Russian insurer MetLife Alico, stated that only simple products
will be sold through the Internet. Complicated products will continue to be sold through the agents and
partners.
MetLife Alico (formerly Alico) has been operating in Russia since 1994. The company is part of
MetLife since November 2010. In the first quarter of 2011, the company generated RUR1.16 billion in
premium and paid out RUR310.644 million in claims. /RP Newsline
Exchange rate as of March 31, 2011:
EUR1=RUR40.02
Lloyd’s Coverholder SeaLine Starts Operations in Russia
Russia-based Genesis Group announced July 15 that SeaLine Insurance Broker became the first
partner of Lloyd’s in Russia and CIS. The broker will represent Lloyd’s interests and act as its agent in the
sphere of facultative reinsurance. The employees of Nakhodka Re, the Moscow branch of insurer TIT, will
be underwriters and managers of SeaLine.
SeaLine has signed an agreement with Lloyd’s syndicate on reinsurance in Russia, Ukraine,
Belarus, Kazakhstan, Kyrgyzstan, Uzbekistan, Azerbaijan, Armenia, Georgia and other countries of the
CIS region. Chaucer Syndicate 1084 will be the leader of the binding authority on the part of Lloyd’s.
SeaLine will underwrite risks for the maximum amount of RUR200 million (EUR5 million). In the
sphere of space reinsurance the maximum volume of the cover is set at RUR10 million.
As RP Newsline reported previously, Chaucer announced in April that, jointly with Russian
reinsurer Nakhodka Re and Lloyd’s insurance and reinsurance broker RFIB, it had formed the first Lloyd’s
Coverholder in Russia — SeaLine. According to the announcement, Chaucer and RFIB acted as
sponsors to Lloyd’s for SeaLine, which received Lloyd’s coverholder approval on March 31, 2011.
Registered in May 2010, SeaLine received operating license from the Russian regulator FSIS on
July 30, 2010. /RP Newsline
EUR1=RUR41.67
Reunion Enters Russian Market
Swiss-based insurance and reinsurance broker Reunion AG announced October 10 that it had
established Reunion Insurance Broker in Moscow, Russia. The company will be headed by Alexander
Bykov, who was named CEO.
The Russian subsidiary of Reunion will focus on direct sales development in the corporate sector.
Bykov works in the insurance industry since 1993. In particular, he worked for such companies as
AIG Russia (currently Chartis) and MDM Bank. For the last 11 years, Bykov held managerial positions at
a number of Russian insurance brokers.
Reunion was launched in 2009 in Zug (Switzerland). The company focuses on non-life lines and
cedants with origin in Central and Eastern Europe, including Russia and CIS countries. /RP Newsline
Korean K-Sure Enters Russia
The Federal Financial Markets Service (FFMS) approved Korea Trade Insurance Corporation (KSure) to open a representative office in Russia, Interfax reported June 27.
K-sure was founded by the Korean government in 1992 to operate export and import insurance
programs for the purpose of facilitating global trade. /RP Newsline
COMPANIES: M&A
RESO Acquires 25% Plus One Share in VSK
RESO Garantia agreed to acquire 25% plus one share in insurer VSK. The value of the
transaction wasn’t disclosed. The two companies will form RESO-VSK Insurance Group, the parties
announced September 19.
The transaction will be financed with the help of the European Bank for Reconstruction and
Development (EBRD) which decided to provide RESO with a five year US$110 million loan to support
acquisition.
The value of the transaction wasn’t disclosed. However, according to the news agency Prime, the
purchase price is about US$250 million. In September, RESO said that it expected to finance the
acquisition through its own funds. At the same time, the company was in advanced talks with EBRD on
financing the transaction.
“The transition impact potential of the project arises from supporting the further consolidation in
the Russian insurance sector. The potential integration of the two insurance companies into a combined
group will lead to the creation of a top-2 non-life insurance player that can challenge the other leaders
and thus introduce more competition to the market,” EBRD said in a statement earlier in November.
Both RESO and VSK are companies from the top-ten list of Russian insurers. The combined
regional network of RESO-VSK Insurance Group will comprise 1,650 branches and offices throughout
Russia. As of December 1, 2010, the group’s total assets totalled RUR65.7 billion. In 2010, the combined
premium of RESO and VSK came to RUR61.6 billion; claims paid amounted to RUR38.4 billion. The
group is the second largest player in the Russian insurance market with a share of 10.9%, based on
premium volume.
Following the closing of the transaction, the two companies will continue to operate as separate
entities. However, in a long-term period, they could be merged. The parties will decide on further
integration steps in 2013-2015.
Set up in 1992, VSK has over 840 branch offices in all Russian regions. The insurer’s authorized
capital totalls RUR2 billion. According to the FSIS, in the first half of 2011, VSK generated premium in the
amount of RUR13.884 billion.
Established in 1991, RESO-Garantia has RUR3.1 billion in authorized capital. Among the
company’s shareholders are Sergei Sarkisov (27.2%) and Nikolai Sarkisov (27.2%), Axa (36.7%), EBRD
(6.3%) and Andrei Saveliev (2.5%). According to the FSIS, in the first half of 2011, RESO generated
RUR21.709 billion in premium and became the fourth largest insurer in the Russian market. /RP
Newsline
Exchange rate as of June 30, 2011:
EUR1=RUR40.39
Russian Agricultural Bank Buys Insurer Gazgarant
Russian Agricultural Bank has acquired insurance company Gazgarant. Thus, the bank has
entered Russian insurance sector, according to the list of the bank’s affiliates.
According to the news agency Prime, Saint-Petersburg-based Gazgarant was part of SOGAZ
Group. Its authorized capital totalls RUR31.7 million. The company didn’t conduct any operations in the
first half of 2011.
The publication stated that Irina Zhachkina, advisor to chairman of Russian Agricultural Bank, will
be the company’s CEO. She joined the bank from VTB-Insurance where she was deputy CEO.
Russian Agricultural Bank considered entering Russian insurance market either through the
establishing of its own company from scratch or through buying an existing insurer. The bank decided to
buy an insurer with license. However, Russian Agricultural Bank will have to raise the company’s capital
by the year end to meet the new requirements.
As RP Newsline reported previously, on July 25, 2011, Russia’s President Dmitry Medvedev
signed law on state supported agricultural insurance. Under the draft project, the state will co-finance
50% of the crop insurance premium from the federal budget funds.
Prime reported referring to a market source that state supported crop insurance will be core for
Gazgarant. However, the company will also write other classes.
Russian Agricultural Bank is 100% state-owned bank. The bank’s network of 78 regional
branches and over 1500 additional offices covers the whole territory of the Russia and is the second
largest regional branch network in the country. /RP Newsline
Sberbank Acquires 100% in Allianz Life
ROSNO announced October 17 that it had agreed to sell 100% of its Russian subsidiary Allianz
Life, currently owned by the local non-life insurer Allianz, to Sberbank. The value of the transaction wasn’t
disclosed.
The parties expect to close the deal by the end of 2011.
Artashes Sivkov, deputy CEO and board member of ROSNO, stated that Allianz Life doesn’t put
significant impact of Allianz Russia’s financial results. Allianz provides all of its life operations in Russia
through Allianz ROSNO Life.
“The main objective set for the newly acquired company will be to develop the accumulative and
investment insurance market in Russia”, Denis Bugrov, senior vice president of Sberbank, commented.
As RP Newsline reported previously, Sberbank’s Development Strategy up to 2014 provides for
transforming the bank from a banking group to financial services group, in particular, by launching of new
services such as asset management and insurance. At the same time, Herman Gref, the bank’s CEO,
stated in September that Sberbank doesn’t plan to enter insurance market through a large acquisition.
Allianz Life is licensed to provide life, accident, health and pension insurance. The company’s
authorized capital totals RUR60 million and doesn’t meet the capital requirements to come in force on
January 1, 2012, under which the minimal authorized capital for life insurer will reach RUR240 million.
In mid-May, Allianz ROSNO Life announced that it was taking over the portfolio of Allianz Life.
According to the Russian insurance regulator FSIS, in the first half of 2011, Allianz Life generated
RUR2.182 million in premium and paid out RUR811,000 in claims.
Sberbank has a wide branch network with 17 regional head offices and over 18,880 retail outlets
with about 241,000 employees. According to Vedomosti, in the first half of 2011, the bank’s commissions
form sales of insurance policies amounted to RUR6.3 billion compared to RUR3.8 billion in the same half
of 2010. /RP Newsline
EUR1=RUR40.39
Otkritie Financial Corporation Buys Insurer Otechestvo
Russia-based Otkritie Financial Corporation announced September 12 that it had acquired 100%
of shares in insurer Otechestvo. The company changed its name into Otkritie Insurance. Dmitry Malykh,
managing director of the insurance business of Otkritie, was named head the company. Pavel Ivanushko,
previously CEO of Otechestvo, took the position of executive director.
“The acquisition will allow Otkritie Financial Corporation to boost the scope of its financial
services. Otkritie intends to actively roll out the insurance business and ramp up profit by way of cross
sales and focusing on banking insurance,” the corporation said in a statement. In addition, Otkritie
expects to gain access to over 60,000 new clients.
According to Malykh, in 2010, Otechestvo wrote premium of RUR785 million. “We intend to triple
this figure over the next three years,” he said.
As RP Newsline reported previously, Vadim Belyaev, president of Otkritie, said in June 2011 that
the corporation was in talks over the acquisition of several insurance companies. “The launch of the
insurance operations is the next step to establishing of “financial supermarket” where clients will be able
to get all the financial services,” news agency Interfax quoted Belyaev as saying.
Belyaev said that the corporation decided to buy a company with a license and insurance
technologies. This company should be a hub for further development of insurance operations of Otkritie.
Belyaev doesn’t exclude the possibility of acquisitions of other insurers. He added that Otkritie is primary
interested in bankassurance.
In August, Malykh, formerly general manager of Generali PPF Units in Russia, was appointed
head of the insurance business of Otkritie with responsibilities for development of business strategy,
products, as well as for organization of insurance sales through the branch network of Otkritie Bank.
In late August, the Federal Antimonopoly Service (FAS) of Russia approved Otkritie to acquire
Otechestvo.
Set up in 1992, Otechestvo has RUR150 million in authorized capital. According to the Russian
regulator FSIS, in the first half of 2011, the company wrote RUR366.369 million in premium and paid out
RUR136.602 million in claims.
Established in 1995, Otkritie Financial Corporation provides investment and commercial banking,
as well as brokerage and asset management services. The corporation comprises Otkritie Bank, Otkritie
Brokerage House, Otkritie Asset Management, Otkritie Debt Center and Otkritie Capital Investment Bank.
Otkritie has over 240 outlets in 58 Russian cities as well as offices in London, Frankfurt, Limassol and
Kiev. /RP Newsline
EUR1=RUR40.39
SCOR to Take Part of Munich Re’s Russian Life Portfolio
Russia-based SCOR Reinsurance, subsidiary of SCOR, said in late November that it aims to take
a part of the Russian life reinsurance portfolio of Munich Re which is closing its local subsidiary MR Life
EECA. In addition, seven specialists from Munich Re’s Russian team will join SCOR.
As RP Newsline reported previously, Munich Re announced this June that it closes MR Life
EECA. “The reason for returning the licence is the restrained development of the insurances of the
person markets and consequently a change in demand for reinsurance. In addition, the minimum capital
requirement for Russian reinsurers will quadruple as from January 1, 2012 to EUR16 million. The
business therefore cannot operate at a profit in the medium term. However, Munich Re has every
confidence in the long-term prospects for insurances of the person in the CIS markets, so that it does not
rule out the possibility of re-establishing its commitment to this line of business in the CIS at a later
juncture,” the group explained in June.
Munich Re also said that it would honour ongoing treaties. Active obligations towards cedants will
be transferred to Munich or returned to the ceding companies.
At the same time, Ludger Arnoldussen, member of Munich Re’s board of management, told RP
Newsline during this year’s Baden-Baden reinsurance meetings, that the group will continue Russian life
business. “We are actually also continuing the life reinsurance business. But we are doing this from the
Munich head office in the future,” he stated. He added that the group’s Moscow-based non-life office will
remain as the group believes that “on the non-life side” it is “quite important to have a local
representative.”
Since 2006, MR Life EECA has offered primary insurers in the CIS reinsurance cover for
insurances of the person while supporting companies in developing their business. The company’s
authorized capital totalls RUR120 million. Starting January 1, 2012, the authorized capital of a reinsurer
should be at least RUR480 million.
According to the Russian regulator FSIS, in 2010, MR Life EECA generated premium in the
amount of RUR418.686 million, including RUR69.136 million of endowment reinsurance premium and
RUR349.55 million of accident reinsurance premium.
SCOR launched its Russian subsidiary in November 2008. Prior to this, the group operated in the
CIS region through a Moscow-based rep office. Currently, the company has EUR21 million in authorized
capital. /RP Newsline
EUR1=RUR40.33
Liberty Mutual Interested in KIT Finans Strakhovanie
US-based insurer Liberty Mutual plans to enter Russian insurance market. The company is
negotiating an acquisition of local insurer KIT Finans Strakhovanie, Vedomosti reported November 7
referring to a source at KIT Finans Strakhovanie.
The publication stated that Yuri Novozhilov, chairman of the board of directors of Kit Finans Bank,
confirmed the information. He said that the parties are discussing the possible transaction for about half
year. However, he added that it is too early to make any prospects regarding reaching an agreement.
Novozhilov stated that the sales price should be equal to at least one year revenue. He expects KIT
Finans Strakhovanie to generate about RUR1.4 billion in premium this year.
Part of KIT Finans Group, KIT Finans Strakhovanie (Class until March 2008) was set up in 1994
in St.Petersburg. The insurer’s authorized capital totals RUR480.76 million. In January-September 2011,
KIT Finans Strakhovanie generated premium of RUR1.1 billion and paid claims in the amount of RUR520
million.
Based in Boston (USA), Liberty Mutual is represented in 17 countries. The group employs over
45,000 people in more than 900 offices throughout the world. As of December 31, 2010, Liberty Mutual
had US$112.350 billion in consolidated assets, US$95.372 billion in consolidated liabilities, and
US$33.193 billion in annual consolidated revenue. /RP Newsline
Exchange rate as of September 30, 2011:
EUR1=RUR43.40
VTB Acquires 25% Plus One Share in Stolichnaya Insurance Group
VTB Bank announced in February 2011 that it had bought 25% plus one share in Stolichnaya
Insurance Group, the holding company of MSK Insurance Group, as part of the acquisition of 46.48% in
Bank of Moscow. In late June, the Federal Antimonopoly Service of Russia approved VTB to buy 100% of
the voting shares of Stolichnaya Insurance Group. However, VTB hasn’t consolidated 100% of MSK yet.
At the same time, in December the news agency Prime reported referring to Andrei Kostin, CEO
of VTB Bank, that the consolidation of insurance assets is a to priority for VTB Group while the
partnership with foreign partner is the secondary issue. In addition, Russian newspaper Vedomosti said
that VTB and Italian Generali decided to delay their negotiations over the joint venture deal for a year.
Earlier, the parties planed to conclude the transaction by the end of 2011.
According to Prime, first of all, VTB plans to streamline Stolichnaya Insurance Group by
disposing of “bad assets”. “After that, the group will start consolidation and development of its insurance
assets. However, I don’t believe it will take only half a year to do it,” the publication quotes Kostin as
saying.
As RP Newsline reported previously, in February this year, Generali spent US$300 million for
about 1% of VTB shares which were up for sale at the public offering of the government’s 10% stake in
the bank. In May, Giovanni Perissinotto, CEO of Generali, told that the group was interested in
partnership in Russia and was considering a joint venture with VTB. “The venture with VTB, Russia's
second-biggest lender, would not only be for bancassurance — sales of insurance via bank branches —
but a partnership allowing distribution through various channels, he said, adding Generali would like a
51% stake in the joint venture.”
VTB is represented in the Russian insurance market by VTB Insurance.
Stolichnaya Insurance Group comprises insurers MSK Insurance Group, MSK Life, Solidarity for
Life (SOVITA), MSK Direct and Moscow Re.
Generali is represented in Russia by Generali PPF Life Insurance, Generali PPF General
Insurance and by pension fund Generali PPF, subsidiaries of Generali PPF Holding, a joint venture
between Generali and Czech-based PPF Group. In addition, PPF Investment has 38% stake in Russian
insurer Ingosstrakh. Generali planed to raise its stake in the insurer. However, the parties couldn’t reach
the agreement. /RP Newsline
AlfaStrakhovanie Acquires Health Insurer Siberia
Russian insurer AlfaStrakhovanie announced in late July that it had signed an agreement to
acquire 75% minus one share in Russian health insurer Siberia.
According to the announcement, in the nearest future, Siberia will remain independent legal entity
while its management team will remain unchanged.
As RP Newsline reported previously, Russian media sources stated in late April that
AlfaStrakhovanie was in talks to acquire several compulsory medical insurance (CMEI) companies.
According to Vladimir Skvortsov, CEO of AlfaStrakhovanie, the acquisition of regional CMEI insurers
would help the company to expand its regional presence in this class.
Earlier, in February 2011, AlfaStrakhovanie acquired health insurance company AsStra. Overall,
for the last three years AlfaStrakhovanie completed a merger with Magnitogorsk-based insurer SKM and
Tula-based health insurer Virmed. In 2010, the group acquired aviation insurers AVICOS and AFES. On
February 1, 2011, AlfaStrakhovanie became the sole shareholder of aviation insurer Moscow previously
owned by Aeroflot Russian Airlines.
Siberia has been operating in Russia for 20 years. The company provides compulsory and
voluntary health insurance services in Central, Siberian, South and North-West Federal Districts of
Russia. According to AlfaStrakhovanie, currently, Siberia is the sixth largest Russian health insurer. The
company has 19 branches, six rep offices, 17 departments and 130 additional offices throughout Russia.
AlfaStrakhovanie jointly with AlfaStrakhovanie Zhizn, AlfaStrakhovanie-MS, Medicine of
AlfaStrakhovanie, AVICOS, AFES, Virmed, AsStra, Moscow and AlfaMedProject forms AlfaStrakhovanie
Group. The group’s consolidated equity totalls RUR8.5 billion. The company has over 400 regional rep
offices throughout Russia. According to the Russian regulator FSIS, in 2010, the company wrote
RUR20.463 billion in premium and paid RUR10.482 billion in claims. /RP Newsline
EUR1=RUR40.33
Russia Partners Sells Its Stake in Contact-Insurance to Genesis Capital
Genesis Insurance Group announced April 8 that private equity investment fund Russia Partners
had withdrawn the shareholders structure of Russia-based direct insurer Contact-Insurance through the
sale of its 50% stake to Victor Yun, the insurer’s CEO and owner of investment company Genesis Capital.
As a result of the deal, Genesis Capital will be 100%-owner of Contact-Insurance. The parties agreed not
to disclose the value of the transaction.
According to the announcement, the authorized capital of Contact-Insurance will be raised to
RUR120 million from RUR40 million till the end of the current year. Yun doesn’t plan any changes at the
company’s management and will continue to head the insurer.
According to Yun, the share of direct sales doesn’t exceed 10% of the total market premium but it
is growing sharp. Direct insurance business becomes less costly and its efficiency will exceed the
traditional sales channels, Yun believes.
Set up in 2006, Genesis Capital has RUR37.8 million in authorized capital and RUR212.505
million in additional capital. The company controls 50% of Genesis Insurance Group, which comprises
Russian Insurance Traditions as well as Nakhodka Re and TIT which are merging.
Contact-Insurance provides direct motor hull insurance. The company’s authorized capital totalls
RUR40 million. As of January 1, 2011, the company’s assets totalled RUR170 million, reserves amounted
to RUR76 million. According to the Russian regulator FSIS, in 2010, the insurer wrote RUR81.561 million
in premium and paid out RUR92.288 million in claims. /RP Newsline
EUR1=RUR40.33
EBRD to Acquire 26.7% Stake in European Pension Fund
Russia-based European Pension Fund announced October 6 that it had signed an agreement
with the European Bank for Reconstruction and Development (EBRD) under which the bank will acquire
26.7% stake in the pension fund.
According to the announcement, the investments of EBRD will help European Pension Fund in
implementation of a number of projects, such as launching new products; development of new sales
channels; development of operating platform and IT; increasing of information security and strengthening
of data protection.
As RP Newsline reported previously, European Pension Fund announced EBRD plans to invest
in its capital in late June, 2011. In late July, the board of directors of EBRD approved the investment in
the Russian pension fund.
European Pension Fund was set up in 1994. /RP Newsline
COMPANIES: PRIVATISATION
Ugoria Privatisation Delayed until May 2012
The government of Yugra, the Khanty-Mansiysk district, decided to delay the privatization of
100% of Russian insurer Ugoria until May 2012. According to the Russian Auction House which will
organize the sale of the insurer, the value of 100% of Ugoria will be about RUR5-7 billion.
As RP Newsline reported previously, initially, the government of Yugra planed to privatize Ugoria
in 2012. However, in late May 2011, Yugra stated that it plans to privatize the insurer already in 2011.
Ugra-TV reported in December that about ten Russian and foreign investors are interested in
acquisition of Ugoria. The source doesn’t name any of the potential buyers.
Established in 1997, Ugoria is 100% owned by Yugra, the Khanty-Mansiysk district represented
by the State Property Department. The company’s authorized capital totals RUR1.833 billion. In JanuarySeptember 2011, the insurer generated RUR6.96 billion in premium and paid out RUR3.79 billion in
claims. /RP Newsline
EUR1=RUR43.40
COMPANIES: WITHDRAWAL
VIG Doesn’t Leave Russian Market Yet
Vienna Insurance Group doesn’t leave Russian market yet, the news agency Prime reported
November 9 referring to a market source.
As RP Newsline reported previously, in late March 2011, VIG said that it had received and
accepted an offer from its business partners to sell its about 25% share in Russian insurer MSK-Life as
well as its minority stakes in MSK Insurance Group (about 5%) and SOVITA (about 15%). The transaction
was expected to be concluded by the end of May 2011.
According to Prime, the group has withdrawn only from the capital of SOVITA but retained its
minority stakes in MSK Insurance Group and MSK-Life. Furthermore, the group has taken part in share
issue of MSK-Life which is currently raising its capital from RUR90 million from RUR240 million in
accordance with the regulatory changes to be in-force on January 1, 2012.
VIG entered the Russian insurance market in 2005 by acquiring about 25% share in MSK-Life.
MSK Life, SOVITA (Solidarity for Life) and MSK Insurance Group are subsidiaries of Stolichnaya
Insurance Group, the holding company of MSK Insurance Group, which also comprises insurers Spasskie
Vorota, MSK Direct and Moscow Re.
In late February 2011, VTB Bank bought 25% plus one share in Stolichnaya Insurance Group as
part of the acquisition of 46.48% in Bank of Moscow. In late June, the Federal Antimonopoly Service of
Russia approved VTB to buy 100% of the voting shares of Stolichnaya Insurance Group. However, in
March, a source at VTB stated that the bank doesn’t take part in the transaction on sale of minority stakes
in Russian companies by VIG. /RP Newsline
Regulator Suspends License of Rostra
The Federal Financial Markets Service (FFMS) announced October 27 that it had suspended
license of Russian insurer Rostra, one of the top-20 motor insurers.
According to the announcement, the license was suspended as the insurer didn’t fulfill the
regulator’s order “during the established period.”
Set up in 2000, Rostra has RUR1 billion in authorized capital. In 2010, Rostra generated RUR5.9
billion in premium and paid out RUR2.3 billion in claims. According to the insurance regulator FSIS, in the
first half of 2011, Rostra generated RUR2.165 billion in premium and paid out RUR1.217 billion in claims.
/RP Newsline
EUR1=RUR40.39
Insurer Region Stops Operations
Russia-based insurer Region, part of Sampo Group, announced that, as of October 24, it had
stopped retail sales of all insurance products. The company will fulfil all of its existing obligations.
The insurer said that it had decided to stop its retail sales due to continued deterioration in
Russian market conditions.
Region is solely owned by If, a subsidiary of Sampo Group. If is also represented in Russia by If
Insurance. If plans to continue development of its corporate insurance business.
Set up in 1993, Region is part of Sampo since 2008. At the end of 2010, the company’s
authorised capital totalled RUR300.3 million. According to the FSIS, in the first half of 2011, Region
generated RUR78.022 million in premium and paid out RUR148.717 million in claims.
At the same time, in January-June 2011, premium of If Insurance amounted to RUR85.788
million, claims paid came to RUR2.86 million. /RP Newsline
EUR1=RUR40.39
Asiatrans Re Stops Signing New Contracts
Russian reinsurer Asiatrans Re stopped signing new reinsurance contracts, starting August 8,
2011. The decision is driven by the new regulatory capital requirements to be in-force on January 1,
2012. Under the new requirements, the minimal authorized capital required to provide reinsurance
services will be RUR480 million while Asiatrans Re has only RUR190 in authorized capital.
The reinsurer said in a statement, that it will fulfill all of its obligations under existing contracts.
The company agreed to transfer its portfolio to another Russian reinsurer Prom Re (Industrial
Reinsurance Company).
Set up in 1994, Asiatrans Re is headquartered in Khabarovsk. According to the Russian regulator
FSIS, in the first half of 2011, the company’s premium amounted to RUR51.111 million; claims paid
totalled RUR47.601 million.
Headquartered in Moscow, Prom Re was set up in 2003. The company’s authorized capital totals
RUR630 million. According to the FSIS, in January-June 2011, Prom Re generated RUR11.028 million in
premium and paid out RUR1.026 million in claims. /RP Newsline
EUR1=RUR40.39
COMPANIES: REORGANISATION
Shareholders Approve Reorganization of ROSNO
Russian insurer ROSNO announced December 5 that its extraordinary general shareholders
meeting on December 2 approved the company’s reorganization through the merger of Russian insurers
Allianz, Progress Garant, Progress and Riskon. The shareholders also decided to change the company’s
name into Allianz.
In addition, the shareholders meeting decided on increasing of ROSNO’s authorized capital due
to transformation of 30,234,347 shares of Allianz, Progress Garant, Progress and Riskon into the shares
of ROSNO. As a result, the authorized capital of the combined entity will be about RUR6 billion.
As RP Newsline reported previously, in July 2011, Allianz SE decided to consolidate its Russian
non-life subsidiaries: Allianz, Progress Garant, and ROSNO. The consolidated company was scheduled
to commence operation in the first quarter of 2012. Later, ROSNO also said that it will also merge
Progress and Riskon.
In early November, ROSNO stated that the most critical phases of the Integration project of
Allianz’s Russian subsidiaries had already been implemented. Particularly, the group had received legal
approval, selected a single IT-platform, developed a single product line, elaborated the new company
strategy and approved the new organizational structure.
ROSNO was established in 1991. 100% minus one share in the company is held by Allianz SE.
ROSNO’s authorized capital totalls RUR5.125 billion. The insurer has 89 branches and 383 agencies in
all Russian regions. According to the Russian regulator FSIS, in 2010, the company wrote RUR20.587
billion in premium and paid out RUR17.385 billion in claims. /RP Newsline
EUR1=RUR40.33
SOGAZ-Sheksna to Merge SOGAZ-Agro
The Federal Antimonopoly Service (FAS) of Russia announced November 29 that it had
approved SOGAZ-Sheksna to merge SOGAZ-Agro. Both companies are parts of SOGAZ Group.
Established in 1994, SOGAZ-Sheksna (formerly Sheksna) is part of SOGAZ since 2009. The
company’s authorized capital totals RUR550 million. According to the Russian regulator FFMS, in the first
nine months of 2011, the insurer generated RUR2.110 million in premium and paid out RUR242.681
million in claims.
Set up in 1999, SOGAZ-Agro (former Nefterpolis) provides crop insurance services. The insurer
has RUR35 million in authorized capital. According to the FFMS, in January-September of 2011, the
insurer wrote RUR275.196 million in premium and paid out RUR151.433 million in claims.
SOGAZ Group incorporates insurance companies SOGAZ, SOGAZ-Agro (former Nefterpolis),
SOGAZ-Med (formerly Gazprommedstrakh), SOGAZ-Life, SOGAZ-Sheksna, Sheksna-M, asset
management company Leader and medical service company Gazprommedservice. Currently, the group’s
regional network includes over 600 units throughout Russia and a rep office in Kazakhstan. /RP
Newsline
EUR1=RUR43.40
TIT Mergers Nakhodka Re
Russian insurer TIT, part of Genesis Group, announced April 18 that it had completed merger
with Nakhodka Re. The reinsurer has officially stopped its activities on April 6, 2011. As a result of the
merger, the authorized capital of the combined entity came to RUR480 million.
As RP Newsline reported previously, Genesis Group said that its shareholders decided to merge
TIT and Nakhodka Re in December 2010.
Beside Nakhodka Re and TIT, Genesis Group comprises Russian Insurance Traditions. The
group was set up in 2008.
Established in 1993, TIT provides voluntary and compulsory property, A&H and liability
insurance. The company focuses on aviation insurance. Since 2008, TIT is part of Genesis Group. In
2010, it generated RUR646.6 million in premium and paid out RUR125.9 million in claims. As of January
1, 2011, the company’s assets came to RUR967 million, equity totalled RUR240 million.
Set up in 1992, in 2010, Nakhodka Re wrote RUR224 million in inwards reinsurance premium
and paid claims in amount of RUR72 million. At the end of last year, the reinsurer’s assets amounted to
RUR555 million, reserves totalled RUR224 million. /RP Newsline
EUR1=RUR40.33
MSK Completes Merger with Spasskie Vorota
MSK Insurance Group announced April 11 that it had completed its merger with insurer Spasskie
Vorota. The combined entity will have RUR9.5 billion in authorized capital and 161 branches in Russia. It
will operate under the MSK Insurance Group brand.
Spasskie Vorota and MSK Insurance Group are affiliated with Stolichnaya Insurance Group. The
holding group also comprises MSK Life, Solidarity for Life (SOVITA), MSK Direct and Moscow Re.
As RP Newsline reported previously, on October 11, Sergei Savosin, CEO of MSK Insurance
Group, was appointed first deputy CEO of Spasskiye Vorota. In early December, Prime-TASS stated that
in the third quarter of 2010 75% minus one share of Spasskie Vorota were transferred to Stolichnaya
Insurance Group. Boris Khait, the key shareholder of Spasskie Vorota, joined the list of affiliated persons
of Stolichnaya Insurance Group and MSK Insurance Group.
Established in 1992, MSK Insurance Group merged with Moscow Insurance Company and MSKStandard in February 2010. According to the Russian regulator FSIS, in 2010, the company wrote
RUR10.02 billion in premium and paid out RUR7.32 billion in claims.
Registered in 1995, Spasskie Vorota has RUR1.125 billion in authorized capital. According to the
Russian regulator FSIS, in 2010, the company wrote RUR8.604 billion in premium and paid out
RUR6.579 billion in claims. /RP Newsline
EUR1=RUR40.33
Megapolis Changes Name into Eastern Insurance and Reinsurance Company
Russia-based Megapolis announced May 31 that it had changed its name into Eastern Insurance
and Reinsurance Company as a result of the merger with insurer Eastern Reinsurance Company (VPK).
The companies completed merger in March 2011. The authorized capital of the combined entity came to
RUR600 million.
Eastern Insurance and Reinsurance Company (formerly Megapolis) provides reinsurance (since
2001) and insurance (since 2002) services. The company’s authorized capital totals RUR600.01 million.
Headquartered in Moscow, the insurer has seven branches in Russian regions and one rep office in Kiev
(Ukraine). In the first quarter of 2011, its premium, including premium of VPK, amounted to RUR191.136
million. /RP Newsline
EUR1=RUR40.02
CIS & Baltic Countries
Insurance
REGULATORY FRAMEWORK: COMPULSORY INSURANCE
Law on Compulsory Insurance Classes Comes in Force in Azerbaijan
The law on compulsory insurance classes came in force in Azerbaijan in mid-September. The
new law is expected to drive a growth in the country insurance market, Day.az reported September 17.
The law regulates four insurance classes, including compulsory real estate insurance,
compulsory MTPL insurance, compulsory passengers’ insurance and compulsory TPL insurance of real
estate owners.
Compulsory real estate insurance will cover all types of buildings, individuals and legal entities’
residential buildings, apartments and state property. The maximum claim to be paid will be AZN25,000.
Compulsory TPL insurance of real estate owners will cover individuals and legal entities. The
indemnity for health injury will be AZN50,000 (AZN5,000 per person); property indemnity — AZN50,000.
The indemnity under the compulsory passengers’ insurance will be AZN5,000 per person
irrespective of the type of vehicle.
Under the compulsory MTPL insurance, the insurance rate will depend on the type of vehicle.
The health injury indemnity will be AZN50,000; property indemnity — AZN5,000. Until recently, this class
was regulated by a law which was adopted in 1996. Currently, health injury indemnity is AZN5,000;
property indemnity — AZN1,000.
The publication stated that implementation of this law is expected to result in increase in annual
premium per capita to AZN50 from the current AZN13 by 2015. In the mid-term, this figure is expected to
grow to AZN100. In addition the insurance penetration (ratio of premiums to GDP) is expected to grow to
2-3% from the current 0.4%. /RP Newsline
EUR1 = AZN1.06
Source: Central Bank of Azerbaijan Republic
REGULATORY FRAMEWORK: CAPITAL REQUIREMENTS
Uzbekistan to Gradually Raise (Re)Insurance Capital Requirements by 2014
Under the Resolution of the President of Uzbekistan "On additional measures to increase
financial strength of insurance companies in 2012-2014", local (re)insurance companies will have to raise
their authorised capitals by 2012 and 2014, Uzreport.com reported June 9.
In particular, by July 1, 2012, non-life insurers shall raise their capital to EUR1.125 million from
EUR0.750 million, life insurers — to EUR1.5 million from the current EUR1 million, insurers operating in
compulsory classes — to EUR2.25 million from EUR1.5 million, and reinsurers — to EUR5 million from
EUR4 million.
As of July 1, 2014, non-life insurers will have further raise their capitals to RUR1.5 million, life
insurers — to EUR2 million, insurers operating in compulsory classes — to EUR3 million, and reinsurers
— to EUR6 million.
Previously, it was planned that the local (re)insurance companies will have to raise their
authorized capitals by 2015. Non-life insurers were supposed to raise their capital to EUR1.5 million from
EUR0.750 million by 2015, life insurers — to EUR2 million from the current EUR1 million, insurers
operating in compulsory classes — to EUR3 million from EUR1.5 million, and reinsurers — to EUR6
million from EUR4 million. /RP Newsline
MARKET: REGULATION
Insurance Supervisory Commission of Lithuania Liquidated
The Insurance Supervisory Commission of the Republic of Lithuania announced December 2 that
it shall be liquidated. Starting January 1, 2012, its functions will be implemented by the Bank of Lithuania.
The insurance regulator will be liquidated in accordance to the law on Reform of the Financial
Market Supervision System, which was adopted on November 17, 2011. The Insurance Supervisory
Commission shall carry out its functions set out in the laws and other regulating legal acts until December
31, 2011. /RP Newsline
Sava Re’s Azerbaijani Life Joint Venture Applies for Registration
Azerbaijan-based AtaHolding has submitted documents for registration of its life insurance joint
venture with Slovenia-based reinsurer Pozavarovalnica Sava (Sava Re) to the Ministry of Finance,
Abc.az reported in late October referring to Farid Asadov, chairman of AtaHolding.
According to Asadov, the capital of new company will be about AZN7-8 million compared to
AZN5 million which was initially planed.
As RP Newsline reported previously, in mid-June Sava Re signed a memorandum of
understanding with AtaHolding on cooperation to develop life insurance business in Azerbaijan.
The parties intend to establish the life insurance company AtaHeyat Sigorta. In June, Sava Re
specified in the statement that its “equity contribution will be in the form of know-how”.
AtaHolding is represented in the financial market of Azerbaijan by Ata Bank, Ata Sigorta, Ata
Leasing, VTB Bank Azerbaijan.
Set up in 1990, Pozavarovalnica Sava is the parent company of Sava Re Group. The reinsurer’s
authorized capital amounts to EUR39.069 million. In 2010, the company’s gross premium totalled
EUR142.862 million. /RP Newsline
Axa Interested in Georgian Market
French-based Axa is interested in acquisition of a Georgian insurer, Business Georgia reported
November 1 referring to the local insurance association.
The publication doesn’t specify which insurer may be bought by the French group. However, it
stated that the representatives of Axa had already visited Georgia and held negotiations.
According to the National Bank of Georgia, as of July 1, 2011, there were 16 insurance
companies operating in Georgia. In the first half of 2011, the local insurers generated GEL188.2 million
(about EUR78.4 million) in gross written premium and paid out GEL116.8 million (about EUR48.7 million)
in claims. /RP Newsline
EUR1=GEL2.40
Source: National Bank of Georgia
Grupa Europa Enters Ukrainian Market
Polish-based Grupa Kapitalowa Europa announced in mid-May that it plans to enter Ukrainian
insurance market in the nearest future. The Ukrainian branch will be the first representative office for the
group.
The Ukrainian branch will provide life and non-life insurance services. The group said in a
statement that it plans to focus on bankasurance business model in Ukraine just as it does in Poland.
GK Europa stated that expansion is part of its long-term development strategy. The group added
that it decided to enter Ukrainian market as it finds it growth potential.
GK Europa comprises life insurer TU na Zycie Europa and non-life company TU Europa.
GK Europa was set up in 2004, when TU Europa (set up in 1995) acquired 100% of shares of
TUnZ Europa (set up in 2002).
The group specialises in insurance products targeted for the Polish financial sector
(bancassurance), with particular stress on mortgage loan insurance. The group works in Poland
with about 300 banks, leasing companies and financial intermediaries.
According to the Polish Financial Supervision Authority (KNF), in 2010, TUnZ Europa generated
premium of PLN3.916 billion. The company accounted for 12.46% of the local life market ranking second
insurer in the sector. In the same period, premium of TU Europa came to PLN499.780 million. The
insurer’s market share was 2.2%. /RP Newsline
EUR1=PLN3.96
Source: National Bank of Poland
Pasha Heyat Enters Azerbaijani Life Market
The State Insurance Supervision Department under the Ministry of Finance of the Republic of
Azerbaijan has granted a life operating license to Pasha Heyat. The company became the third
specialized life insurer in Azerbaijan, Abc.az reported February 15.
As RP Newsline reported previously, starting from March 2011, the Azerbaijani state separated
life and non-life insurance operations. As a result, a number of new specialized life insurers entered the
country’s market. In early November 2010, Ateshgah Life was the only specialized life insurer in
Azerbaijan. In late November, Qala Sigorta received a life operating license as the company decided to
concentrate on life business. In line with the new strategy, Qala Sigorta has changed its name into Qala
Heyat. Also, Ata Sigorta and Alfa Sigorta plan setting up of life subsidiaries. The local unit of Axa may
follow the trend, as well. Another local insurer Qarant Sigorta will decide on the establishment of a life
insurance company in 2012.
According to the State Insurance Supervision Department under the Ministry of Finance of the
Republic of Azerbaijan, in the first half of 2010, Azerbaijani life insurance premium increased 77% and
came to AZN704 million. Claims paid in the sector fell 34% to AZN172 million. At the same time, the
minimal required capital of a specialized life insurer should be at least AZN5 million. However, the market
players believe that these costs are legitimate. /RP Newsline
Exchange rate as of July 1, 2010:
EUR1 = AZN0.98
Source: National Bank of Azerbaijan
New Insurer Registered in Belarus
Vartma Insurance has entered Belarusian market. The new company was registered by the
Ministry of Finance of the Republic of Belarus on August 8, 2011, Belarusian Association of Insurers
reported in early September.
The newly launched insurer will be headed by Irina Sluk who was named director. In addition,
Lyudmila Voronovich will be the company’s chief accountant.
th
Vartma Insurance will be 25 insurance company in Belarus. According to the data of the finance
ministry, at the end of June 2011, there were 24 insurance companies operating in the Belarusian market,
including 19 non-life insurers, four life insurers and one reinsurer. In the first six months, local insurance
companies wrote BYR887.2 billion in insurance and coinsurance premiums and paid out BYR532.2 billion
in claims. /RP Newsline
EUR1=BYR7,152.13
Source: National Bank of Belarus
Uzbek Regulator Grants License to New Insurer
On August 9, the newly launched Uzbek insurance company DD General Insurance received
operating license to provide voluntary non-life insurance services, Uzreport.com reported August 10.
DD General Insurance is licensed to operate in 13 insurance classes, including accident, health,
land vehicle, railroad vehicle, cargo, fire and allied perils, property, MTPL, general liability, credit,
warranty, financial risks and legal expenses.
DD General Insurance was founded by Uzbekistan-based pharmacy retailer Dori-Darmon. The
insurer was registered at the Ministry of Justice of Uzbekistan on June 14.
Dori-Darmon works in the pharmaceutical market of Uzbekistan for over 85 years. The company
cooperates with over 100 pharmaceutical manufacturers and suppliers from 50 countries. The company
has its regional offices, including eight joint-stock companies and ten subsidiaries. Today, the regional
network consists of 228 pharmacies, 822 pharmacy branches, out of them 655 are located in rural areas,
including 565 branch pharmacies in rural health centers.
At the end of the first quarter of 2011, there were 33 insurance companies, one reinsurer, three
brokers, and two actuarial companies in the Uzbek insurance market. 31 companies provided non-life
insurance services and two companies specialized in life insurance. In the reporting period, the ten
largest insurers accounted for 78.3% of the total premium while the market share of the top-five insurers
came to 56.9%. /RP Newsline
Hamkor Sugurta Enters Uzbek Insurance Market
Hamkor Sugurta has entered the Uzbek insurance market. Aziz Rashidov will be CEO of the
newly created company, Uzreport.com reported January 28.
According to the announcement, the company received its operating license on January 20,
2011. Hamkor Sugurta is licensed to provide voluntary non-life insurance, including A&H, land vehicle,
railway vehicle, cargo, fire and allied perils, property, credit, warranty, financial risks and legal expenses
insurance.
As of January 1, 2011, there were 33 insurance companies in Uzbekistan, including two life
insurers and one reinsurer. According to the preliminary data, in 2010, the total premium of Uzbekistanbased insurers came to UZS171.4 billion (about EUR79.164 million); claims paid amounted to UZS27
billion (about EUR1.25 million). /RP Newsline
EUR1=UZS2 165.13
Source: Central Bank of Uzbekistan
ICD to Set Up First Islamic Insurer in Azerbaijan
Islamic Corporation for the Development of the Private Sector (ICD) plans to establish first
Islamic insurance company Kaufad in Azerbaijan, Abc.az reported December 2 referring to Hisham Nazih
Al-Nasser, ICD director for assets management and advisory work.
According to the State Insurance Supervision Department under the Ministry of Finance of the
Republic of Azerbaijan, at the end of 2010, there were 27 insurance companies operating in the
Azerbaijani market. In 2010, their total premium came to AZN155.586 million (about EUR146.8 million),
claims paid amounted to AZN53.829 million (about EUR50.8 million). /RP Newsline
EUR1 = AZN1.06
Source: National Bank of Azerbaijan
Gras Savoye Enters Georgian Market
French-based insurance broker Gras Savoye has established a branch office in Georgia. The
broker will serve from this office to clients from Armenia and Azerbaijan, Business Georgia reported
December 6.
Gras Savoye will provide the local clients services in the sphere of reinsurance, HR training,
improving of internal processes, development and implementation of new products, risk management and
insurance programs development.
Gras Savoye is the leading French broker and the tenth broker in the world, with offices in 40
countries (mainly Europe, Africa, Middle East and Asia) and using the Willis network in more than 120
countries. In 2010, the company recorded a turnover of EUR563 million. /RP Newsline
Broker MediHelp International to Enter Moldova
Health insurance broker MediHelp International announced January 21 that it plans to enter the
Moldavian market in 2011. The company is currently in negotiations with local insurance companies.
Established in 1999, MediHelp International is represented in Romania, Hungary and Bulgaria.
The broker regards entering Moldova “as a natural organic growth step.”
“Moldavia seems like the next logical step for us,” Zahal Levy, president of MediHelp
International, commented. “Moldavia is an emerging market and our research is telling us that we need to
be there at the beginning, in order to ensure a leader position. We are now in the process of finding the
right products and market strategy in order to start activities in full force,” he added.
According to the National Commission of Financial Markets (NCFM) of the Republic of Moldova,
in 2009, Moldovan insurers generated MDL38.562 million (about EUR2.2 million) in health insurance
premium. Claims paid in the sector came to MDL9.425 million (about EUR0.5 million). /RP Newsline
EUR1= MDL17.63
Source: National Bank of Moldova
COMPANIES: M&A
EBRD Invests in Universalna
Ukrainian non-life insurer Universalna announced October 19 that the European Bank for
Reconstruction and Development (EBRD) had invested UAH85 million in its capital. As a result, the bank
became the company’s second largest shareholder with a share of 23%.
As RP Newsline reported previously, the shareholders meeting of Universalna on June 8 decided
to raise its authorised capital by 30% or by UAH37.947 million to UAH164.447 million through the
issuance of 37.947 million new shares with a par value of UAH1. The issuance price was UAH2.24 per
share. EBRD has bought all the new shares.
According to the company’s web-site, among other shareholders of Universalna are Whiteford
Limited (53.71%), Goldman Sachs (10.54%), Emerging Europe Growth Fund (managed by Horizon
Capital, 10.65%), Genesis (9.89%). Their shares remained unchanged following the capital increase, the
insurer said in a statement.
According to the announcement, the decision to attract new investor is in line with the company’s
strategy for the next five years. The investments will be spent on improving of asset structure, financial
performance, as well as development of the regional network, client services and IT. In addition,
Universalna said that it continues to diversify its portfolio and to decrease the share of motor class in the
portfolio.
Set up in 1991, Universalna has over 200 agencies throughout Ukraine. In the first half of 2011,
the insurer generated UAH113.877 million in premium and paid out UAH34.362 million in claims. /RP
Newsline
EUR1 = UAH11.50
Source: National Bank of Ukraine
Allianz Sells Its Kazakh Subsidiary
Allianz SE sells 100% of its Kazakhstan-based subsidiary to the company’s chairperson Zhanar
Kalieva. Allianz Kazakhstan announced December 2 that the National Bank of the Republic of
Kazakhstan approved the transaction on November 25. The parties agreed not to disclose the value of
the deal.
“The transaction is made in a format of management buy-out (MBO), that is the repayment of all
addressing shares of the company by its managing director,” the company said in a statement. The
transaction received all necessary regulatory approvals.
Kalieva was named chair of the management board of Allianz Kazakhstan in January 2009.
Allianz Kazakhstan, former ATF Polis, was established by ATF Bank in 1999. In autumn 2007
Allianz acquired 100% of ATF Polis shares from ATF Bank. Currently, the insurer operates in 14 regional
centers of Kazakhstan. According to the Agency of the Republic of Kazakhstan for Regulation and
Supervision of Financial Markets and Financial Organizations, in 2010, Allianz Kazakhstan generated
KZT7.651 billion in premium. The insurer accounted for 4.98% of the local insurance market ranking fifth
insurer in the country. /RP Newsline
EUR1=KZT195.23
Source: National Bank of the Republic of Kazakhstan
Kazakh Insurers Pana, Alliance Polis to Merge
Kazakhstan-based insurers Pana Insurance and Alliance Polis plan to merge, InterfaxKazakhstan reported October 26.
The publication stated that the combined shareholders meeting of both companies on October 12
decided to reorganize Pana Insurance through the merger with Alliance Polis.
Alliance Polis already owns 9.5% stake in Pana Insurance. Furthermore, the two companies have
a number of common individual shareholders.
According to the data of the Agency of the Republic of Kazakhstan for Regulation and
Supervision of Financial Markets and Financial Organizations, in 2010, Pana Insurance generated
premium of KZT2.080 billion and accounted for 1.36% of the local insurance market.
In the same period, premium of Alliance Polis amounted to KZT2.737 billion, the company’s
market share was 1.78%. /RP Newsline
EUR1=KZT195.23
Georgia-Based Aldagi BCI Acquires Portfolio of Insurer Partner
Georgia-Based insurer Aldagi BCI announced in early December that it had acquired insurance
portfolio of another local insurer Partner.
The local media Business Georgia reported that Partner has “financial problems”. Particularly, the
insurer couldn’t meet capital requirements.
According to the National Bank of Georgia, in the first six months of 2011, Partner generated
premium of GEL2.314 million and accounted for 1.23% of the local insurance market.
Aldagi BCI was formed in 2007 as a result of merger between insurers Aldagi (founded in 1990)
and BCI (established in 1998). Currently, the insurer has 300 sales points. According to NBG, in JanuaryJune 2011, the company’s premium amounted to GEL31.825 million. Aldagi BCI accounted for 16.91% of
the local market ranking second largest insurer in Georgia. /RP Newsline
EUR1=GEL2.40
COMPANIES: WITHDARWAL
Generali Withdraws Ukrainian Non-Life Sector
Ukraine-based insurer Generali Garant announced April 21 that its general shareholders’ meeting
on April 20 decided to change the company’s name back to Garant Auto. The shareholders also elected
new supervisory board. The changes resulted from the decision of Generali Group to withdraw ownership
structure of Garant Auto. However, the group added that it remains a key business partner of the insurer.
The supervisory board of Generali Garant will comprise five members, including Werner Moertel,
Yuri Lakhno, Natalia Bei, Mikhail Reznik and Vakhtang Vasadze. At the same time, the company’s
management board remained unchanged.
According to the data published on the official web-site of Generali Garant, Generali Group
controls 52.39%, Vasadze holds 35.05% and Lakhno has 10.1% stake in the insurer.
On April 22, Kommersant Ukraine reported referring to a source close to the matter that the most
probable buyer of Generali’s share is Vasadze. The source also said that the transaction could value at
EUR10 million.
“We’ve analyzed the potential and the future development of Ukrainian insurance market in the
life and non-life sectors and decided to continue operations in the country through Generali Life,” the
publication quotes press office of Generali Group. The group added that it is selling its stake in Generali
Garant to non-Ukrainian investor.
As RP Newsline reported previously, in June 2010, Generali sold its 51% stake in Ukraine-based
Generali Garant Life Insurance to the previous owners. As a result, Generali Garant Life Insurance has
changed its name back to Garant-Life
Generali continued to be represented in the Ukrainian life market by Generali Life Insurance
(formerly Czech Insurance Company Ukraine Life Insurance). The decision on sale of the group’s second
Ukrainian company was a result of reorganization of the local business processes.
Set up in 1992, Generali Garant was part of Generalі since 2006. As of December 31, 2010, the
company’s authorized capital totalled UAH83.490 million. In 2010, the insurer generated UAH273.623
million in premium and paid out UAH162.227 million in claims. At the end of December 2010, the
company’s insurance reserves amounted to UAH162.811 million, total assets came to UAH371.27 million.
/RP Newsline
EUR1 = UAH10.57
Axa Completes Merger of Ukrainian Subsidiaries
Axa Ukraine, the local group of Axa companies, announced April 5 that it had completed the legal
merger of its local subsidiaries Axa Insurance and Axa Ukraine under Axa Insurance name on April 1,
2011.
Under the merger process, Axa Ukraine has transferred its property, liabilities and assets to Axa
Insurance. Axa has merged operating activities of both companies, including IT, HR, finance and
marketing, in 2008. In 2009, the group also merged the sale and loss settlement units of the two
Ukrainian subsidiaries.
According to Philip Votle, chairman of Axa Ukraine, the merger will simplify the legal and tax
activities, such as license obtaining, tax management and reporting. The merger will lead to increasing
efficiency and cutting administrative costs.
Axa Group is represented in Ukraine by Axa Insurance (former Vesko) and Axa Ukraine (former
Ukrainian Insurance Alliance). Axa Insurance was set up in 1994 and Axa Ukraine was set up in 2001.
Both companies became parts of Axa Group in 2007. In 2010, Ukrainian companies of Axa generated
premium of UAH722 million. /RP Newsline
EUR1 = UAH10.57
VIG to Merge Its Georgian Subsidiaries
Vienna Insurance Group (VIG) plans to merge its Georgian insurance companies GPI Holding
and IRAO, Forinsurer.com reported October 3. According to the National Bank of Georgia, the combined
entity will account for over 25% of the local insurance market.
As RP Newsline reported previously, in late August, VIG said that it plans to merge its Polish nonlife insurance subsidiaries InterRisk and PZM under InterRisk brand. Earlier, the group also decided to
merge a number of its other foreign subsidiaries, particularly, in Ukraine and Croatia.
GPI Holding is part of VIG since July 2006, while IRAO became member of VIG in January 2007.
According to the data of the National Bank of Georgia, in the first half of 2011, GPI Holding
generated gross written premium in the amount of GEL33.577 million. The company accounted for 17.8%
of the local market ranking first largest insurer in Georgia. In the reporting period, IRAO generated
premium of GEL14.416 million and accounted for 7.7% of the local market. The company ranked sixth
among 16 Georgian insurance companies. /RP Newsline
EUR1=GEL2.40
Seesam Latvia Transfers Portfolio to Estonian Seesam
Latvian Financial and Capital Market Commission approved local insurer Seesam Latvia to
transfer its portfolio to its Estonian sister-company Seesam Insurance, Delfi.lv reported October 6.
As RP Newsline reported previously, Finish-based Pohjola Group plans to merge its insurance
subsidiaries from the Baltic States. In particular, Seesam Latvia and Seesam Lietuva will be merged into
Estonian Seesam Insurance and will act as branch offices of the Estonian company. Pohjola plans to
complete reorganization by 2012.
Seesam Latvia stated that all its employees will retain their jobs.
“The main objective of the reorganization is improvement of the company's capacity and
competitiveness, improvement of the service level, as well as a full and purposeful exchange of corporate
experience,” Seesam Latvia said in a statement.
According to Aigars Freimanis, director and member of the board of directors of Seesam Latvia,
the company's reorganization should be considered as a "muscle building" that will significantly increase
the company's potential, among other things, creating the opportunity to participate in more ambitious
non-life insurance purchases.
Pohjola Group provides banking, non-life insurance and asset management services. /RP
Newsline
Central and Eastern Europe
Insurance
REGULATORY BODIES: APPOINTMENTS AND RESIGNATIONS
Jakubiak to Head Polish Financial Supervision Authority
Polish Prime Minister Donald Tusk appointed on October 12, 2011 Andrzej Jakubiak chairman of
the Polish Financial Supervision Authority (KNF), according to the Government Information Center.
In this role, he replaced Stanislaw Kluza.
Jakubiak started his professional career in 1982 at the Ministry of Labour and Social Policy where
he worked until 1991. Since 1991 until 2006, he worked for National Bank of Poland (NBP). Since August
1992, he was advisor to chairman of General Inspectorate of Banking Supervision (GINB). In December
1992, he was named deputy director of GINB. On February 6, 1998, Jakubiak was appointed director of
the legal department of NBP. Since 1998 until 2006, he was member of the bank’s board. In December
2006, Jakubiak became deputy mayor of Warsaw. /RP Newsline
Buzoianu to Head Romanian Insurance Regulator CSA
On September 27, the Romanian Parliament approved Constantin Buzoianu as president of the
Insurance Supervisory Commission (CSA) in Romania for a five years term, the local media XPRIMM
reported September 28.
In addition, Tudor Balta and Cornel Coca Constantinescu were approved as vice presidents while
Doru Claudian Frunzulica was approved as member of the CSA council.
“The other three members of the ISC council are Albin Biro (reinvested for a five years term,
starting September 12, 2007), Dan Constantinescu (reinvested for a five years term, starting February 1,
2010) and Daniela Popa (appointed for a five years term, starting February 1, 2010),” the publication
stated. /RP Newsline
SOGAZ Serbia to Start Operations in 2012
Russian-based SOGAZ, subsidiary of Gazprom, announced that SOGAZ Serbia, its joint venture
with Serbian gas company Srbijagas, received operating license from the National Bank of Serbia. The
insurer will start operations in January 2012.
SOGAZ Serbia’s authorized capital will be EUR6 million. SOGAZ and Srbijagas will control 51%
and 49% in the insurer, respectively. The parties plan to invest about EUR7.5-8 million into the company
during the next three years.
The development strategy of SOGAZ Serbia for the next three years provides for setting up direct
contacts with the local organizations. Later, the insurer also plans developing of relationships with brokers
and banks as well as establishing retail sales.
Initially, SOGAZ Serbia will provide insurance services to such companies as NIS – Nafta
Industrija Srbije (51%-owned by Gazpromneft), Ugorosgaz, Banatski Dvor and other companies engaged
in implementing of South Stream project.
SOGAZ expects that in 2012 premium of SOGAZ Serbia will amount to EUR7.5 million, in 2013
— EUR13 million, in 2014 — EUR18 million, in 2015 — EUR21 million. The company is expected to
account for 3% of Serbian insurance market in 2012.
As RP Newsline reported previously, SOGAZ first announced its plans to set up a Serbian insurer
jointly with Srbijagas in January 2010.
SOGAZ Group incorporates insurance companies SOGAZ, SOGAZ-Agro (former Nefterpolis),
SOGAZ-Med (formerly Gazprommedstrakh), SOGAZ-Life, SOGAZ-Sheksna, Sheksna-M, asset
management company Leader and medical service company Gazprommedservice. Currently, the group’s
regional network includes over 600 units throughout Russia and a rep office in Kazakhstan. /RP
Newsline
CIGNA Expands to Turkey
CIGNA, a global supplemental health, life and accident insurance provider, announced August 9
the launch of a new office and operations in Turkey.
CIGNA Hayat Sigorta, based in Istanbul, will offer supplemental health care and financial
protection products and services through affinity partners and direct channels, such as the Internet and
Direct Response Television.
CIGNA initially will offer personal accident and life policies that are simple to understand,
affordable and easy to access through a variety of direct marketing channels. Additional insurance
products will be added to the portfolio in the future.
CIGNA’s decision to enter Turkey follows a detailed analysis of the local insurance industry and
the insurance needs and behaviors of the Turkish people. According to CIGNA, entry into Turkey
represents a strategic step in the company’s global expansion plans.
CIGNA has more than seven million health, life and accident policies in force around the world
and sales capability in 30 countries and jurisdictions. /RP Newsline
Axa Enters Serbian Non-Life Sector
The National Bank of Serbia, the country’s financial megaregulator, announced in June that it had
granted non-life operating license to Axa Nezivotno Osiguranje, owned by Axa Mediterranean Holding
(Spain), part of Axa.
“This is the twelfth Greenfield investment in the insurance business since 2006 and is worth
EUR7 million,” the regulator said in a statement.
As RP Newsline reported previously, in May 2010, Axa Mediterranean Holding agreed to buy
Credit Agricole Life Serbija from Credit Agricole Assurances. The value of the transaction was not
disclosed. The company now operates under Axa Zivotno Osiguranje name.
According to Osiguranje.hr, Antonio Marchitelli, director of Axa Zivotno Osiguranje, stated that
Serbia will be a center for Axa to expand in the region, including Bulgaria, Albania and former Yugoslavia.
/RP Newsline
Uniqa Enters Macedonian Life Market
Insurance Supervisory Agency of Macedonia (ASO) announced May 27 that it had approved
Uniqa (formerly Sigal), the local non-life subsidiary of Uniqa, to establish a life insurance company and
granted a respective license to the newly launched insurer.
Uniqa Life will be headquartered in Skopje (Macedonia) and will provide its services through 22
offices across Macedonia as well as through sales agents, according to limun.hr.
Sigal (now Uniqa) was established at the end of 2004 and started its operations in 2005. In June
2009, the company changed its name into Uniqa. According to ASO, in 2010, the company generated
premium of MKD411.781 million. Uniqa accounted for 6.7% of the local non-life market.
In 2010, the total premium of the Macedonian insurers amounted to MKD6.481 billion (about
EUR105 million). Life premium totalled MKD354.507 million (about EUR5.8 million). The share of life
insurance was 5.5%.
According to the ASO, there were three life insurers (Croatia, Grawe and QBE) in Macedonia in
2010. In addition, in December 2010, ASO granted a life insurance license to Winner Life-Vienna
Insurance Group Skopje, subsidiary of VIG. /RP Newsline
Exchange rate as of January 1, 2011:
EUR1=MKD61.49
Source: National Bank of the Republic of Macedonia
Uniqa Receives Life Operating License in Kosovo
Uniqa announced November 21 that in September this year it received life operating license in
Kosovo.
Sigal Uniqa has been operating in the Kosovo non-life market since October 2003.
Headquartered in Pristina, the company has a network of five main branches (Pristina, Prizren, Peja,
Ferizaj, and Gjilan) and two sub-branches (Gjakova, Mitrovica) and more than 45 agencies throughout
Kosovo. In the first half of 2011, the insurer generated ppremium of around EUR5 million. Sigal Uniqa
ranked second insurer in the local market with a share of 12.9%.
Uniqa is currently active in 21 markets and “sees excellent opportunities for growth in the markets
of Albania, Kosovo and Macedonia.” The group services the markets in Albania, Kosovo and Macedonia
through a central competence center in Albania. /RP Newsline
Groupama to Enter Polish Market
French-based Groupama plans to enter Polish insurance market in the spring next year. The
group will operate in the country under Proama name, Warsaw Business Journal reported December 22.
The publication stated that initially Proama will sell motor insurance through various distribution
channels, including internet, telephone, multi-agencies and banks.
“Our consumer research carried out in Poland shows that the Groupama name is mainly
associated with Groupon, and not with the insurance business. Also, some Polish customers had
problems with pronouncing the company’s English name,” the publication quotes Robert Sokolowski,
head of Groupama in Poland, as explaining the choice of the name.
Groupama is a mutual insurance, banking and financial services group. Besides France, the
group is represented in 13 countries, including Italy, Spain, Great Britain, Portugal, Turkey, Greece,
Hungary, Romania, Slovakia, Bulgaria, China and Vietnam. In 2010, the volume of the group’s revenue
amounted to EUR17.6 billion. /RP Newsline
Wustenrot Enters Croatian Life Market
The Croatian Agency for Supervision of Financial Services (HANFA) announced October 27 that
it had granted operating license to Wustenrot Zivotno Osiguranje. The new insurer is licensed to provide
life and A&H insurance classes.
The agency approved Austria-based Wustenrot Versicherungs Aktiengesellschaft to acquire a
qualifying holding of over 50% in voting rights and initial capital of the new insurer.
In addition, HANFA approved Igor Duric and Durda Gojmerac to perform duties of members of
the management board of Wustenrot Zivotno Osiguranje.
According to the data of HANFA, at the end of 2010, there were 27 insurance and reinsurance
companies, including one reinsurer, in Croatia. In particular, six companies specialized in life insurance,
ten companies — in non-life insurance and ten companies provided both life and non-life services. In
2010, the total premium of Croatian (re)insurance companies amounted to HRK9.72 billion (about
EUR1.3 billion). /RP Newsline
EUR1=HRK7.39
Source: Croatian National Bank
Euler Hermes Launches Credit Insurer in Turkey
Euler Hermes, credit insurance subsidiary of Allianz, announced in March that it had launched a
company in Turkey — Euler Hermes Sigorta.
Based in Istanbul, Euler Hermes Sigorta will provide trade receivables management services to
Turkish companies.
Euler Hermes said in a statement that it had been cooperating with its parent Allianz in Turkey
since 2005.
“We look forward to playing a part in the Turkish economic growth,” Wilfried Verstraete, Euler
Hermes’ CEO, commented. The company said that the Turkish economy rebounded strongly in 2010
after it had fallen in recession during the global economic crisis. After 7.5% growth in 2010, GDP is
expected to increase by 4% to 5% in 2011.
“We anticipate that the credit insurance market in Turkey will significantly grow in the coming
years. The number of credit limit requests relating to Turkish companies was up 32% and the volume of
coverage amounted EUR1,8 billion in 2010,” David Santos, CEO of Euler Hermes Sigorta, stated. /RP
Newsline
CIG Pannonia Enters Hungary’s Pension, Investment Srvices Market
Hungary-based life insurer CIG Pannonia announced August 4 that it had registered an
investment services company and a pension fund services company jointly with Pannonia Pension Fund.
According to Budapest Business Journal, Pannonia Investment Services Company and
Pannonia Fund Services Company were registered with the Municipal Court of Budapest.
As RP Newsline reported previously, in late March 2011, CIG Pannonia signed a memorandum
on strategic cooperation with the electricity industry pension fund VIT. The agreement involved the
establishing of an investment company and pension service company in which CIG would buy stakes.
CIG holds 20% stake in investment company, with an option to buy another 70%, and 20% stake in the
pension services company with an option for a further 29%.
Registered in January 2008, CIG received a life operating license from the Hungarian Financial
Supervisory Authority in spring of the same year. In 2009, the company entered the Romanian life
insurance market. In the future, CIG also plans to enter Bulgaria, Serbia and Ukraine. Long-term
expansion plans include Russia. In the first quarter of 2011, the insurer generated premium of HUF7.896
billion. /RP Newsline
EUR1=HUF268.32
Source: National Bank of Hungary
Posta Romana is Setting Up Insurer
Romania's national postal company Posta Romana is currently in the process of launching of an
insurance company. Furthermore, the company is also considering the possibility of entering the banking
sector in 2012, according to the local media XPRIMM.
"We have started two important processes of founding two commercial societies, insurance and
financial-banking services development, aiming for opening our own bank. We currently have a contract
with an insurance broker through which we became associates in the view of selling premiums in the
Romanian Post Office network", the publication quotes Dumitru Daniel Neagoe, general manager of
Posta Romana.
Regarding the financial-banking sector, Posta Romana is analyzing the European business
models of postal administrators. The company is considering the possibility of establishing of its own
banking subsidiary or a joint venture with another financial institution as well as the possibility of
distribution of financial and banking products through its own network.
“Romania is an under-banked country, according to the institution's analysis, therefore there is
still room for one more bank on the market, especially in the country side, where the services offered by
the bank are not developed and where the Romanian Post Office will benefit from unique territorial
coverage,” XPRIMM stated.
Posta Romana is the national postal operator and is owned by the Romanian state, represented
by the Ministry of Communications and Information Technology (75% of shares) and the Property Fund
(25% of shares). The company has 7,000 post offices in Romania. /RP Newsline
Palladium Insurance Broker Enters Romania
Hungary-based Brokernet Group announced July 5 that its insurance brokerage subsidiary
Palladium will start its operations in Romania in mid-July.
The company received operating license from Romanian Insurance Supervisory Commission
(CSA) on May 26, 2011. Headquartered in Cluj-Napoca, Palladium plans to open ten offices in Romania
by the end of the current year. The broker aims to double the number of offices in 2012.
Brokernet has been operating in the region for 11 years. The group has operations in Hungary
and Slovakia. Brokernet has US$500 million in assets under management. /RP Newsline
COMPANIES: M&A
KBC to Divest Warta, VIG Considered as Potential Buyer
KBC announced in late July 2011 that it had received approval from the European Commission to
amend its 2009 strategic plan. Particularly, the group decided to divest its banking (Kredyt Bank) and
insurance activities (Warta) in Poland and sell or unwind selected ABS and CDO assets instead of
floating minority stakes of CSOB Bank (Czech Republic) and of K&H Bank (Hungary). According to the
media sources, Vienna Insurance Group (VIG) is the most probable buyer of Warta.
Thus, in late September, Bloomberg reported referring to Guenter Geyer, CEO of VIG, that VIG
may begin due diligence on the insurer in October. Based on the due diligence, the group will decide
whether to make an offer. “We’ll look closely at the data and review whether we’re going to buy,”
Bloomberg quotes Geyer as saying. Geyer declined to comment the value of the possible transaction.
The acquisition of Warta could help VIG to become the second biggest insurer in Poland after PZU.
According to Alexander Dibelius, regional manager at Goldman Sachs Group, which advising
KBC, Warta may attract more than a dozen bidders.
KBC is selling Warta as well as its Polish banking subsidiary Kredyt Bank in order to repay state
aid. Initially, the group planed to flotat its Czech and Hungarian banks (CSOB and K&H). However, in
mid-July, KBC applied to the EC to amend the strategic plan.
“KBC group has a sound bancassurance business model which is and remains at the core of our
strategy. We will continue to develop this model within our home markets of Belgium, the Czech Republic,
the Slovak Republic, Hungary and Bulgaria. These strong fundamentals will remain the cornerstone of
our group’s future. Moreover, divesting our Polish banking and insurance activities will help us to become
an ever more focused and less complex group, while maintaining economies of scale and scope.
Maintaining our stake in our Czech (CSOB Bank) and Hungarian (K&H Bank) banks will help us to retain
our growth options for the future,” Jan Vanhevel, KBC CEO, commented.
Warta Group has been operating in Poland since 1920. In 2000, KBC Group acquired 40% of the
Polish group’s shares. Since 2006, Warta Group is 100% owned by KBC. In the first quarter of 2011,
premium of Warta TUiR and Warta TUnZ exceeded PLN1 billion (about EUR249 million).
In particular, gross premium of non-life insurer Warta TUiR amounted to PLN562.5 million, up
12.8% on the same quarter of 2010. In January-March 2011, the insurer reported net income of PLN26
million.
In the reporting period, life insurer Warta TUnZ wrote PLN516.7 million in gross premium. The
company’s net income came to PLN6.7 million. /RP Newsline
EUR1=PLN4.01
Eureko Raises Its Stake in Eureko Sigorta to 100%
Eureko announced July 19 that it had closed the transaction with Turkish Garanti Bank to acquire
20% in local insurer Eureko Sigorta. As a result, Eureko became the 100% owner of the Turkish insurer.
Regulatory authorities approved the transaction.
“For Eureko, the expansion of the business in Turkey fits perfectly within our international
strategy in which Turkey is, next to Russia and Greece, one of the three focus countries,” Eureko stated.
Eureko entered the Turkish market in 2007 with the acquisition of 80% in Eureko Sigorta and
15% in Garanti Emeklilik, Garanti Bank's life and pension business. Part of that agreement was a put
option for Garanti Bank on the remaining 20% of the shares of Eureko Sigorta. Garanti Bank chose to
exercise its right to sell the shares. On May 31, 2011, the group announced the agreement with Garanti
Bank to acquire 20% in Eureko Sigorta.
Eureko Sigorta (formerly Garanti Sigorta) was established by Garanti Bank in 1989. According to
the report of the Insurance Supervisory Board of the Undersecretariat of Treasury of the Prime Ministry of
the Republic of Turkey, in 2009, Eureko Sigorta generated premium of TRY539.181 million. The company
accounted for 5.36% of the local non-life market. /RP Newsline
EUR1 = TRY2.15
Source: Central Bank of the Republic of Turkey
Dexia to Sell Its Life Business in Turkey to MetLife
Dexia announced June 27 that it had agreed to sell its 99.86% stake in DenizEmeklilik, the life
insurance and pension subsidiary of DenizBank in Turkey, to MetLife for a consideration of EUR162
million.
MetLife will buy Dexia's stake through its Turkish business. The agreement also includes a 15year exclusive agreement for the distribution of MetLife's life, pensions, personal accident and
unemployment insurance products and solutions through DenizBank's branch network.
Closing of the transaction is expected to take place before the end of 2011 and is subject to
standard regulatory approvals.
According to the announcement, this transaction will add significantly to MetLife business in
Turkey, a key strategic growth market. The agency agreement with DenizBank will provide another
important national distribution channel and build MetLife's presence in the pension market.
For Dexia, this divestment is part of the agreement with the European Commission providing for
the disposal of DenizEmeklilik by October 31, 2012 at the latest. The transaction is expected to generate
a capital gain of about EUR119 million after taxes at closing.
The agency agreement will ensure that DenizBank will continue to provide its customers with a
full range of life, pensions, personal accident and unemployment insurance products and solutions. The
agency agreement also entails a profit-sharing mechanism whereby part of the future profits generated
from the sales of DenizEmeklilik products through DenizBank branches over the next 15 years will be
distributed to DenizBank.
As RP Newsline reported previously, the European Commission imposed certain conditions on
Dexia, including the divestment of its public financing operations in Italy, Spain and Slovakia, as well as
its insurance business in Turkey, in exchange for the bailout it received from Belgium, France and
Luxembourg in 2008.
Dexia is represented in Turkey by DenizBank and Deniz Hayat Sigorta.
Being part of Dexia Group since 2006, Deniz Hayat Sigorta provides life and pension insurance
services. In 2009, the insurer generated TRY55.865 million in premium and accounted for 2.52% of the
Turkish life and pension market, according to the Insurance Supervisory Board of the Undersecretariat of
Treasury of the Prime Ministry of the Republic of Turkey.
Currently, MetLife is represented in Turkey by MetLife Alico (formerly AIG Hayat). Established in
1988, the insurer provides life, individual and group accident as well as group medical. In 2009, the
company generated premium of TRY82.851 million. The insurer accounted for 3.74% of the local life and
pension market. /RP Newsline
EUR1 = TRY2.15
Ageas Acquires 31% Stake in Turkish Aksigorta
Sabanci Holding, Turkey’s industrial and financial conglomerate, announced in late July that it
had completed the sale of a 31% stake in non-life insurer Aksigorta to Ageas (formerly Fortis).
“The sale of 9,482,940,100 Aksigorta shares that equals to the 50% of 18,965,880,200 total
shares which are possessed by our company for US$220,029,000 — (except for corrections) to Ageas
Insurance International N.V. have been completed and the sale price have been collected,” Sabanci said
in a statement. “Subsequent to the aforementioned sale Ageas and our company have created a joint
venture based on equal partnership (30.99% - 30.99%) for Aksigorta management,” the holding added.
The transfer of 31% of Aksigorta shares to Ageas by Sabanci Holding was completed on July 28.
Zafer Kurtul, CEO of Sabanci Holding, stated that Sabanci held 62% of Aksigorta shares while
the remaining 38% was publicly held before the acquisitions and also highlighted that the publicly held
part will not change but the partnership will be shared as 31% each between Sabanci and Ageas.
Kurtul also said that together with Ageas, they would consider the growth opportunities for
Aksigorta both organically and via acquisitions.
“Turkey’s prosperous economy is flourishing. Turkish people that reach a certain quality of living
believe in insuring, to control their risks and to maintain successful while eliminating the uncertainties.
Moreover, in the developing economies the fast growing SMEs are presenting opportunities for us. We
foresee a growth of 17% for the next ten years period for the non-life insurance industry,” Haluk Dincer,
president of Sabanci Holding Retail and Insurance Group, commented.
As RP Newsline reported previously, Ageas announced the agreement with Sabanci to acquire a
31% stake in Aksigorta through the sale by Sabanci of half its stake in the company in February this year.
According to Ageas, Aksigorta is the fourth largest non-life insurer in Turkey with gross written
premiums of TRY886 million (EUR415 million) in 2010 and a market share of 8%. Motor insurance
represents almost 50% of its premium income, followed by fire (18%) and health (14%). The company
combines an agency network with bancassurance distribution through Akbank, which is controlled by
Sabanci. Currently, the network of Aksigorta comprises ten regional directorates, three regional
representative offices, 960 Akbank branches and over 1,500 independent agencies.
As part of the transaction, Aksigorta will enter into a 15-year exclusive agreement with Akbank for
distribution of non-life products that can be renewed for periods of five years
“Turkey has a fast growing population (75 million) and has experienced high economic growth in
recent years. With non-life insurance penetration just above 1% of GDP — compared with 3% in the
European Union — Turkey is a very promising country for the insurance sector,” Ageas said in a
statement in February. However, in late July 2010, the group announced the sale of its pension and life
business in Turkey — Fortis Emeklilik ve Hayat to BNP Paribas Assurance. “This divestment is in line
with the company's intention, announced in September 2009, to streamline its current portfolio against
certain criteria,” the group explained in a statement.
Sabanci Holding has controlling interests in 11 companies also listed on the ISE. Sabanci Group
companies currently operate in 18 countries and market their products in various regions in Europe, the
Middle East, Asia, North Africa and North and South America. In 2010, the consolidated revenue of
Sabanci Holding was US$13.0 billion with an EBITDA of US$3.0 billion. /RP Newsline
EUR1 = TRY1.97
VIG Acquires Albanian Insurer Intersig
Vienna Insurance Group (VIG) announced August 24 that it had agreed to acquire 75% plus one
share in the Albanian insurance company Intersig Sh.a. The parties agreed not to disclose the purchase
price.
VIG has been operating in the Albanian market since 2007 when the group acquired the local
non-life insurer Sigma. In December 2010, the group acquired another local non-life insurer Interalbanian.
With the acquisition of Intersig, VIG expects its market share to rise to about 30% and premium volume to
amount to about EUR20 million. The group ranks – subject to official approval of the transaction – second
on the Albanian insurance market and is the market leader in the motor insurance segment.
“This acquisition will enable the group to broaden its base in Albania considerably. Our positive
experience with the business development of our existing Albanian group companies has encouraged us
to decide to strengthen our presence further. The catch-up process in the Albanian market means we are
expecting increased demand for insurance products in the coming years. The country’s stable economic
development over the past few years has created a good foundation for this,” Gunter Geyer, VIG CEO,
commented.
Founded in 2001, Intersig provides non-life services. The insurer generated the majority of its
premium in the motor insurance sector. With a total market share of around 9% in 2010, Intersig ranks
sixth overall in the market. In 2010, premium volume was around EUR5.3 million. Headquartered in
Tirana, Intersig is represented in all 12 regions of Albania. The company operates 140 sales outlets and
around 90% of its products are distributed through its own sales force.
According to the data of VIG, Albania has 3.2 million inhabitants and almost a quarter of the
population lives in the metropolitan area of Tirana. The economy grew by 3.5% in 2010 and is forecast to
grow 3.4% in 2011. In 2010, an overall premium volume of just under EUR60 million was generated.
Motor insurance is the dominant line of business with around a 60% share of total premium volume.
At present there are ten companies operating in the Albanian insurance market. Seven of these
only operate in the non-life sector, two companies are purely involved in life insurance and one insurance
company is active in both segments. Insurance density (per capita annual premiums) in Albania stood at
around EUR18 in 2010. In the same year, this figure came to around EUR75 in Serbia and around
EUR2,500 in the EU-15 countries. Insurance penetration (premiums as a proportion of GDP) was around
0.67% in Albania, compared with 1.8% in Serbia and 8.7% in the EU-15 countries. /RP Newsline
KBC Launches Tender Offer on DZI Insurance
KBC announced October 5 that KBC Insurance will launch a public tender offer on its Bulgarian
insurance subsidiary DZI. The bid price is set at BGN71 per share, while the maximum total consideration
amounts to BGN26.5 million (approximately EUR13.5 million).
KBC Insurance currently holds 90.35% of DZI. The tender offer is expected to start in the fourth
quarter of 2011 and to expire early 2012.
The European Commission has granted KBC permission to proceed with this bid, which is still
subject to the approval of the Bulgarian regulatory authorities.
KBC said in a statement that “the transaction will not have a relevant impact on KBC’s capital and
solvency positions and fits within KBC’s ambition to further implement its bancassurance business model
in Bulgaria, while at the same time increasing corporate governance and optimising DZI’s shareholder
structure.”
Established in 1946 as a state insurer, DZI Insurance is part of KBC since 2007. DZI provides
both life and non-life insurance services through DZI and DZI-General Insurance, respectively. The
company focuses particularly on the retail sector. The network of DZI comprises 26 main agencies, 27
sub-agencies and 63 offices.
According to Bulgarian Financial Supervision Commission, in 2010, life insurer DZI generated
BGN32.820 million in premium and accounted for13.20% of the country’s life market, ranking second
insurer in the sector. In the same period, DZI-General Insurance was also the second best in the non-life
sector with premium of BGN201.946 million and market share of 13.86%./RP Newsline
Exchange rate as of October 5, 2011:
1EUR = 1.96BGN
Source: National Bank of Bulgaria
Talanx to Acquire Europa Group Jointly with Meiji Yasuda
Talanx AG announced December 14 that it jointly with its Japanese partner Meiji Yasuda Life
Insurance Company are entering into a long-term strategic bancassurance cooperation with the Getin
Holding Group in Poland and selected Central and Eastern European countries. As part of the agreement
Talanx International AG and Meiji Yasuda will take over from Getin Holding the insurance companies TU
na Zycie Europa and TU Europa (Europa Group).
According to the announcement, Talanx and Meiji Yasuda agreed on a strategic cooperation
consisting of capital and business alliance about a year ago. The transaction still has to be approved by
the regulatory authorities. The group said that a public tender offer will be launched to all existing
shareholders of Europa Group, given its status of publicly traded company on the Warsaw Stock
Exchange. After the transaction has been completed, which is likely to be in the second quarter of 2012,
Talanx will become the majority shareholder in Europa Group, while Meiji Yasuda and Getin Holding will
each hold a meaningful stake.
“Poland is already one of the countries with the strongest sales in the Talanx International Retail
division and this designated core market continues to remain on a growth path. We are convinced that
bancassurance will be the main driver for future growth in CEE countries”, stated Torsten Leue, board
member of Talanx AG and chairman of the management board of Talanx International AG.
Europa Group comprises life insurer TU na Zycie Europa and non-life company TU Europa. The
group was set up in 2004, when TU Europa (set up in 1995) acquired 100% of shares of TUnZ Europa
(set up in 2002). The group sells its insurance products mostly through bancassurance channels with its
biggest partners being banks belonging to Getin Holding. The group’s product range includes credit
insurance as well as unit-linked life insurance and investment products.
Europa Group employs approximately 250 employees; the gross premium written was about
EUR1.1 billion in 2010 – about EUR988 million in life insurance and EUR126 million in non-life insurance,
according to Polish Accounting Standards (PAS).
According to the Polish Financial Supervision Authority (KNF), in 2010, TUnZ Europa generated
premium of PLN3.916 billion. The company accounted for 12.46% of the local life market ranking second
insurer in the sector. In the same period, premium of TU Europa came to PLN499.780 million. The
insurer’s market share was 2.2%.
Up to now, Talanx has been operating in Poland with two companies in automotive, liability,
general property and casualty insurance (HDI Asekuracja) and in the life insurance segment (HDI-Gerling
Zycie TU). According to the KNF, in 2010, HDI Asekuracja generated PLN969.676 million in premium and
accounted for 4.26% of the local non-life market ranking sixth insurer in the sector. In the same period,
premium of HDI-Gerling Zycie came to PLN443.430 million, life market share was 1.41%.
Thus, after closing of the transaction, Talanx expects to become one of the largest insurance
groups in Poland. /RP Newsline
EUR1=PLN3.96
VIG Buys Bosnian Insurer Jahorina
Vienna Insurance Group announced October 20 that it had acquired approximately 91.7% of
overall capital and approximately 96.6% of the voting shares in the Bosnia and Herzegovina-based
insurer Jahorina Osiguranje. As a result, the group is now represented in 25 markets.
In December, the group said in a statement posted on the website of the Banja Luka Stock
Exchange that it is making a takeover bid for the shares it does not already own in Jahorina. The group
offered to pay BAM386.55 per share, according to Limun.hr.
VIG first announced the agreement to acquire a majority stake in Jahorina Osiguranje in
September 2011.
According to the data of VIG, Jahorina was established in 1992 as a property insurer in Pale
(autonomous region Republika Srpska) and has about 215 employees by now. Since the first quarter of
2010, the company has also offered life insurance. In the first half of 2011, Jahorina registered premiums
of approximately EUR5.7 million. Of this amount, about 98% are in the non-life sector, especially motor
insurance; 82% of the premium income is generated in the Republika Srpska. Jahorina is the market
leader in the Republika Srpska, with a market share of 13.6%. Based on the overall market in Bosniath
Herzegovina, the company ranks 9 with a market share of 4.5%.
The Republic of Bosnia-Herzegovina consists of the two autonomous regions, the Republika
Srpska and the Federation of Bosnia-Herzegovina, and has a total population of approximately 4.6
million.
“In recent years, the political and economic stability of the country has improved significantly and
today provides a sound environment for promising development of the Bosnian insurance market. The
insurance penetration (annual premiums per capita) was approximately EUR63 in Bosnia-Herzegovina in
2010 as compared to about EUR75 in Serbia und more than EUR2,500 in the EU-15 countries,” the
group said in a statement. /RP Newsline
EUR1=BAM1.96
Source: Central Bank of Bosnia and Herzegovina
Open Finance Acquires Link4 Life
In June 2011, the Polish Financial Supervision Authority (KNF) approved Polish-based financial
advisory firm Open Finance to acquire Link4 Life from the local direct insurer Link4, subsidiary of RSA
Group. As a result, on August 1, Open Life started operations.
Open Life was launched on the basis of Link4 Life. Open Finance signed an agreement to
acquire Link4 Life in late February.
Link4 Life was set up in 2007. In November 2010, the company transferred its life insurance
contracts to Signal Iduna Zycie Polska.
Headquartered in Warsaw, Open Finance is a subsidiary of Noble Bank S.A. /RP Newsline
Romanian Regulator Approves Moldasig to Acquire Asito Kapital
The Romanian Insurance Supervisory Commission (CSA) approved the largest Moldavian insurer
Moldasig, part of Rosgosstrakh, to acquire a 99.9% stake in the Romanian insurer Asito Kapital, XPRIMM
reported in mid-October referring to Moldasig’s officials.
Moldasig is 80%-owned by Russian insurer Rosgosstrakh. At the same time, Asito Kapital is also
affiliate to Rosgosstrakh.
In late April 2009, Danil Khachatourov, president of Rosgosstrakh, first announced the company’s
plans to develop its Romanian operations.
“Romania is the next market of interest for us. We became the owner of Asito Kapital when we
acquired Kapital Insurance Group. Currently, we are preparing a development strategy for the Romanian
company. We don’t know the volume of investments yet but we intend to be among the market leaders”,
Khachatourov stated in 2009. He also added that Rossgosstrakh plans to become one of the leading
companies in Romania during the next five years.
Asito Kapital was set up in 1998 under Lukoil brand. Currently, the company is 99.932%-owned
by Norcross Insurance Company Limited, registered in Man Isle in Great Britain and indirectly owned by
Russian insurance group Kapital (formerly Lukoil Insurance), according to market sources. In August
2008, Cyprus-based Syneron Holdings Limited, which is controlled by the shareholders of Rossgosstrakh,
bought Kapital for US$500 million. According to XPRIMM, in 2010, Asito Kapital generated premium of
EUR9.75 million.
Headquartered in Chisinau, Moldasig was set up in 2002. In July 2008, Rosgosstrakh acquired
80% of Moldasig through Cyprys-based Linekers as a result of the capital increase of the Moldovan
insurer. Moldasig own equity totals MDL298.5 million, insurance reserves – MDL108.8 million, assets –
MDL506.9 million. The insurer’s authorized capital totals MDL60 million. In 2010, Moldasig generated
MDL262.2 million in premium and paid out MDL102.8 million in claims. The company was the largest
insurer in Moldova with a market share of 28.7%. /RP Newsline
EUR1=MDL16.11
Source: National Bank of Moldova
VIG to Acquire Polisa Zycie
Vienna Insurance Group announced November 29 that it had signed an agreement for the
acquisition of at least 75% plus one share in Polish-based life insurer TUnZ Polisa Zycie.
The transaction is subject to the necessary regulatory approvals.
“With about 38 million inhabitants, Poland is one of the largest markets in Central and Eastern
Europe and a core market for the Vienna Insurance Group. In relation to the total market, the Vienna
Insurance Group achieved an excellent fourth place in the market ranking in Poland in the first half year of
2011. The purchase of Polisa has no significant influence on this market share,” VIG said in a statement.
“Poland is seeing positive development in spite of economically challenging times. In particular in
the life insurance market there are good opportunities for growth,” Gunter Geyer, CEO of VIG,
commented.
Based in Warsaw, Polisa Zycie was founded in 1995. The company focuses on group insurance
and “it thus rounds off the portfolio” of VIG. Polisa Zycie has over 120 employees. The company has 16
regional offices and 30 representative offices. In 2010, Polisa Zycie generated premium of about EUR21
million in 2010, according to VIG data. According to the Polish Financial Supervision Authority (KNF), in
2010, Polisa Zycie generated PLN85.806 million in premium and accounted for 0.27% of the local life
market.
VIG operates in Poland through six companies and four brand names. Particularly, in the life
market, the group is represented by two Compensa TUnZ and Benefia TUnZ. In 2010, the group’s life
premium in Poland amounted to EUR188.3 million. According to the KNF, in 2010, Compensa TUnZ and
Benefia TUnZ generated premium of PLN302.036 million and PLN452.768 million, respectively. Benefia
TUnZ accounted for 1.44% of the local life market, the share of Compensa TUnZ was 0.96%. /RP
Newsline
EUR1=PLN3.96
Aegon to Consider Acquisitions in CEE, Including ING Assets
Aegon plans to expand in the Asian and Central and Eastern European markets. The group
would consider acquisitions of insurance assets in the regions, including the assets of ING, Reuters
reported September 27 referring to Alex Wynaendts, CEO of Aegon.
In mid-June, Aegon has repaid EUR3 million of state aid which it received in 2008. As a result,
the group is now able to resume paying dividends and making acquisitions.
The publication stated referring to Wynaendts that Aegon, which writes the majority of its
business in the US, could now focus on expansion in the fast-growing markets. Aegon CEO added that
the group would focus on those markets where it already has a presence. Thus, the key markets for
Aegon in Asia are India, China and Japan, in CEE — Poland, Hungary and Turkey.
"The focus is on organic growth," Wynaendts said, adding that now Aegon has repaid the state
and thus has "the flexibility to consider acquisitions." These could even include some of ING's insurance
assets if those were sold piecemeal.
ING decided to divest its insurance operations in 2009 to repay the state aid. However, in August
this year, the group said “it will not launch a stock market flotation for its insurance operations any time
soon, adding that trade buyers were expressing interest in the assets.” The group also stated it continues
with its plans for two IPOs – one for the US businesses and one for the European and Asian businesses.
"ING has said it wants to IPO the business," Wynaendts told Reuters, adding that if ING chose to
sell the assets piecemeal "we certainly would be interested in looking." /RP Newsline
Uniqa to Acquire Private Pension Company in Albania
Uniqa plans to enter the Albanian private pension market through the acquisition of over 51%
stake in the local pension company Capital through the group’s Albanian insurance subsidiary Sigal Life
Uniqa Group Austria, Norbert Heller, head of the group’s press office, confirmed to RP Newsline.
Uniqa notified the Albanian Competition Authority that it plans to acquire a stake in Capital in
January 2011. “We see a huge potential in general in the market of Albania, especially in the insurance
and private pension industry,” Heller stated.
According to the Albanian Financial Supervisory Authority, in 2010, there were three companies
operating in the local private pension market, including Raiffeisen Pensions, Capital and Sigma IPP. The
total number of contributors was 4,992. The total volume of contributions to the country’s private pension
system was ALL111.920 million (about EUR0.8 million). The volume of contributions rose 53.38%
compared to the 2009 figure.
Currently, Capital is 100%-owned by the local car dealer AVEL. According to the Albanian
Financial Supervisory Authority, in 2010, the volume of the total contributions of Capital amounted to
ALL45.066 million (over EUR0.3 million). The number of contributors was 2,191. The company ranked
second, based on contributions volume, in the local private pension sector with a market share of
40.27%. Based on number of contributors, Capital was the market leader with a share of 43.89%.
Uniqa is represented in Albania by non-life insurer Sigal and Sigal Life.
Established in September 2004, Sigal Life started its operations in March 2005. Since March
2007, Sigal Life became member of Uniqa Group Austria. Since 2008 the company operates under the
name Sigal Life Uniqa Group Austria. According to the Albanian Financial Supervisory Authority, in 2009,
Sigal Life generated premium of ALL396.233 million. The company was the first largest life insurer in the
country with a market share of 54.75%. /RP Newsline
EUR1=ALL138.77
Source: Bank of Albania
Albanian Life Insurer Sicred Buys Local Pension Company
Albanian life insurer Sicred has entered the local private pension market through the acquisition
of 75% of shares of pension company Sigma IPP. The value of the transaction wasn’t disclosed,
Balkans.com reported April 12.
Sicred is not the only Albanian life insurer that aims to enter the local private pension sector this
year. As RP Newsline reported previously, in January, 2011, Uniqa notified the Albanian Competition
Authority that it plans to acquire over 51% stake in pension company Capital through its Albanian
subsidiary Sigal Life Uniqa Group Austria
According to the Albanian Financial Supervisory Authority, in 2010, there were three companies
operating in the local private pension market, including Raiffeisen Pensions, Capital and Sigma IPP. The
total number of contributors was 4,992. The total volume of contributions to the country’s private pension
system was ALL111.920 million (about EUR0.8 million). The volume of contributions rose 53.38%
compared to the 2009 figure.
In 2010, the volume of the total contributions of Sigma IPP amounted to ALL16.420 million (over
EUR0.118 million). The number of contributors was 1,015. The company was the smallest player in the
country’s private pension sector, according to the regulator.
Sicred was the second largest life insurer in Albania in 2010 with a market share of 27.93%. Last
year, the company wrote premium of ALL237.058 million, according to the Albanian Financial Supervisory
Authority. /RP Newsline
EUR1=ALL138.77
Marsh Buys 15% in Czech Broker Insia
Marsh, global insurance broker and risk adviser, part of Marsh&McLennan Companies (MMC),
has acquired a 15% stake in insurance broker Insia, which operates in the Czech Republic and Slovakia,
the local media Czech Position reported April 12.
The value of the transaction wasn’t disclosed. The remaining 85% of Insia will be controlled by
the company’s founders Petr Marek and Ivan Spirakus.
“We are looking at the combination of two different segments of the market,” the publication
quotes Richard Radford, Marsh’s general manager for Central and Eastern Europe. He added that the
minority stake in Insia was Marsh’s first acquisition in the region for years.
Combined, the companies estimate that their local turnover will be around CZK4.5 bilion. The
cooperation has also been described as a launch pad for expansion in Poland, Hungary and Italy.
“Poland is our biggest goal,” Spirakus said.
Insia was founded in 1992 by Marek and Spirakus. The company specializes in providing
insurance brokerage for small and medium-sized enterprizes. It grows through franchising its operations
and expects to have around 1,400 partners, mainly in the Czech Republic and Slovakia, by the end of the
year.
Marsh provides advice and transactional capabilities to clients in over 100 countries. According to
the publication, among the company’s Czech customers are Tesco, food producer Hame, steelmaker
ArcelorMittal and high-voltage electricity network operator CEPS. /RP Newsline
Willis Acquires Polish Insurance Broker
Willis Europe, a division of Willis Group Holdings, announced August 25 that it had acquired
100% of the shares of Polish insurance broker, Brokerskie Centrum Ubezpieczeniowe (AMA). The parties
agreed not to disclose the terms of the transaction.
Willis expects that the deal, effective immediately, will further strengthen its presence in the
country, in particular in the employee benefits and construction sectors.
“Major civil engineering projects are set to increase the growth of the Polish construction market
by around 11% this year, while the IMF says that a rebound in employment growth is being driven by
increased activity in the services sector,” Willis said in a statement.
Established in Warsaw in 1998, BCU AMA focused on specialty insurance lines, developing a
significant book of business providing insurance brokerage services to the rapidly expanding employee
benefits and construction industries.
Willis Polska, a wholly-owned subsidiary of Willis Europe, has been trading in Poland since 1991,
and has 47 employees and three offices in Warsaw, Katowice and Gdansk. Its latest acquisition will see
12 BCU AMA staff transfer to the Willis’ office in Warsaw.
“As the Polish economy continues to grow at a rate of around 3.8%, the expansion of the
employee benefits and construction markets, along with other industries, will need to be accompanied by
robust risk management. By joining with BCU AMA, we now have leading expertise in these lines of
business and can help our clients put in place holistic insurance programmes to mitigate their increased
exposure to risk,” Jacek Cichy, CEO of Willis Polska, said.
“In addition, BCU AMA’s clients will also benefit from access to a much broader range of
services, backed by the vast global resources of Willis Group, in areas like Energy, Marine, Aviation and
Financial and Executive risks,” he added. /RP Newsline
April Group Becomes Sole Owner of Polish Broker OGB
French-based April Group has acquired another 30% of Polish brokerage company OGB from its
founder Mariusz Apelski and became the sole owner of the broker, Gazeta Ubezpieczeniowa reported
March 30. The publication stated that Slawomir Apelski will take the position of chairman of the
management board while Mariusz Apelski will be vice chairman of the supervisory board, effective April 1,
2011.
As RP Newsline reported previously, April Group acquired 70% of OGB’s shares in April 2008.
OGB, founded by Mariusz Apelski in 1998 and headquartered in Warsaw, specialises in
brokerage services to corporate clients and in particular car fleet insurance.
Created in 1988, April Group is a multi-specialist insurer offering health, personal protection,
property and casualty insurance services to individuals, companies and organisations using a multichannel strategy which involves coordinating a 15,000 strong network of brokers, a chain of companyowned stores, and online distribution. In 2010, the group’s net profit amounted to EUR79.7 million. /RP
Newsline
Uniqa Sells Its Stake in Astra to Nova Group
Uniqa sold its remaining 27% stake in Romanian insurer Astra to The Nova Group Investments
(Nova Group), the majority shareholder of Astra, for EUR25 million, Balkans.com reported June 24.
Set up in 1991, Astra Asigurari was part of Uniqa Group since 2005, when the group acquired a
27% stake in Astra for EUR10 million. As RP Newsline reported previously, the group planned to
purchase an additional 23% stake in Astra, thus raising its stake to 50% plus one share. However, Uniqa
didn’t do so and sold its stake in the Romanian insurer to the company’s majority shareholder Nova
Group in August 2010.
In the first quarter of 2011, Astra Asigurari generated premium of RON334.744 million and paid
out RON105.272 million in claims. Compared to the first quarter of 2010, its premium grew 1.49%. The
company entered the Hungarian market in the fall of 2010, opening the Astra Biztosito branch in
Budapest.
Nova Group is owned by Romanian businessman Dan Adamescu who also owns the Unirea
Shopping Center in Bucharest, as well as a similar shopping center in Brasov.
Uniqa will remain represented in Romania through the 100% subsidiaries Uniqa Asigurari and
Uniqa Asigurari de Viata. /RP Newsline
EUR1=RON4.11
Source: National Bank of Romania
Astra Asigurari Sells Its Stake in Generali Asigurari
Romanian insurer Astra Asigurari sells its 16.03% stake in the local insurer Generali Asigurari to
Generali Holding Vienna. The transaction has to be approved by the Insurance Supervisory Commission
(CSA), Balkans.com reported June 29.
Overal, Astra sells 207,498,174 shares of Generali Asigurari with a par value of RON0.10 each.
Astra owns 16.03% stake in Generali Asigurari since 1994, when the Italian financial group Generali
entered the local market.
Currently, Generali PPF Holding is represented in Romania by Generali Asigurari, Ardaf, RAI
Asigurari, Generali Fond de Pensii and FATA Asigurari Agricole. In February, the group received approval
from CSA to transfer the general insurance portfolio of RAI Asigurari to Ardaf. In addition, in early 2011,
Generali decided to merge Generali Asigurari and Ardaf under the umbrella brand Generali Romania. /RP
Newsline
Exchange rate as of July 1, 2011:
EUR1=RON4.24
COMPANIES: PRIVATISATION
Albanian Government to Put for Sale Up to 100% of State-Owned Insig
The government of Albania decided to make changes to the law on the privatization of the stateowned insurer Insig. The government plans to offer for sale up to 100% of the insurer, according to
Balkans.com.
"We shall put on sale 100% of the shares in an international tender open to domestic and foreign
investors with experience in the insurance market," Lindita Rusmali, head of the Finance Ministry's legal
department, told Reuters. "All this will follow a new evaluation," Rusmali added.
The decision came after several failed attempts to sell the state-owned insurer. Thus, in
December 2008, Albanian Finance Ministry said that it agreed to sell its 61% stake in Insig to American
Reserve Life Insurance Company for EUR25 million. However, the transaction was never signed.
Insig was set up in 1991 and is headquartered in Tirana (Albania). The company provides both
life and non-life insurance services in the home country as well as in Kosovo and Macedonia. In 2010,
Insig generated ALL782.973 million in premiums. In the non-life sector, the insurer reported 30.59%
premium decline. /RP Newsline
EUR1=ALL138.77
COMPANIES: WITHDRAWAL
Cardif Asigurari to Leave Romanian Market
The Insurance Supervisory Commission (CSA) of Romania announced December 13 that it had
withdrawn operating license of insurer Cardif Asigurari, part of BNP Paribas Group.
According to the local media XPRIMM, the license was withdrawn in accordance with the
decision of the company’s shareholders meeting. Furthermore, CSA approved Cardif Asigurari to transfer
its life portfolio to Cardif Assurance Vie Paris and Cardif Assurance Risques Divers Paris. Both
companies have branches in Bucharest. Thus, BNP Paribas will be operating in Romania on the EU
cross-border basis.
BNP Paribas started its activity in Romania in January 2007, through the distribution of life
insurance products through the subsidiary Cardif Asigurari. Starting February 2008, BNP Paribas began
as well its operations in the general insurance market, based on the principle of the free circulation of
services. Since 2009, BNP Paribas Assurance has operated in Romania through its branches Cardif
Assurance Vie (for life insurance products) and Cardif Assurances Risques Divers (for general insurance
products). /RP Newsline
KD Group Leaves Romania
KD Group leaves the Romanian life insurance market. Its local subsidiary KD Life Asigurari has
transferred its portfolio to its Slovenian parent KD Zivljenje. The portfolio transfer was approved by the
Romanian Insurance Supervisory Commission (CSA), the local media XPRIMM reported in January.
KD Zivljenje operates in Romania on the basis of European freedom of services concept. The
Slovenian company will continue to serve the existing portfolio of KD Life Asigurari. The portfolio transfer
doesn’t affect the interests of the insureds, according to the CSA.
As RP Newsline reported previously, in February 2010, KD Group annouced plans to close its
Romanian subsidiary as further work in Romania “would require too large a capital investment for too
small a share of the local life market”. In early March 2010, the CSA placed KD Life Asigurari under
special administration.
In late 2010, CSA revoked the special administrator and withdrew the insurer’s license, along with
the approval of the portfolio transfer, XPRIMM stated.
Headquartered in Bucharest (Romania), in 2008, KD Life Asigurari generated RON6.65 million
(about EUR1.81 million) in premium and paid RON0.07 million (about EUR0.02 million) in claims. The
company accounted for 0.36% of the Romanian life market.
KD Group provides banking, investment, asset management, insurance and other financial
services. The group has insurance subsidiaries in Slovenia, Slovakia, the Czech Republic, Croatia,
Bulgaria, Romania and Ukraine. /RP Newsline
EUR1=RON4.04
Ardaf Completes Merger with Generali Asigurari
Generali Romania announced September 5 the completion of merger of Romanian insurers Ardaf
and Generali Asigurari. The company will have new management team led by CEO Adrian Marin, who
works for Generali Asigurari for 15 years and was deputy CEO until recently.
According to the announcement, the combined entity is the seventh largest insurer in Romania
with a share of 6.7%, based on the data of the Insurance Supervisory Commission (CSA) of Romania for
the first half of 2011. The company will operate with two independent brands, Generali and Ardaf, and
maintaining two sales networks.
Generali decided to merge Generali Asigurari and Ardaf under the umbrella brand Generali
Romania in February 2011. The merger was approved by shareholders in March and by CSA in late
August.
According to Gianluca Colocci, Member of the executive committee of Generali PPF Holding,
responsible for M&A and for the country, with this merger, Generali strengthened its positions in Romania
by creating more efficient and profitable company. He added that the decision on merger proves the
commitment of Generali to Romanian market which is considered as a strategic market for the group’s
development in Central and Eastern Europe.
“In the short term, we plan to streamline internal processes, to improve services, while seeking
for recovery of sales and customer retention. In the medium-term, we aim to build a solid basis for sure,
constant and profitable development,” Marin stated adding that the company aims to become one of the
market leaders in Romania.
Currently, Generali PPF Holding is represented in Romania by Generali Asigurari, Ardaf, RAI
Asigurari, Generali Fond de Pensii and FATA Asigurari Agricole. In addition, in February, the CSA
approved the transfer of the general insurance portfolio of RAI Asigurari to Ardaf. /RP Newsline
Amplico Life Completes Merger with MetLife
On November 30, Polish insurers Amplico Life and MetLife completed merger. Thus, starting
December 1, the combined entity operates under MetLife Amplico brand. The company’s registered name
will remain Amplico Life Pierwsze Amerykansko-Polskie Towarzystwo Ubezpieczen na Zycie i
Reasekuracji, Gazeta Ubezpieczeniowa reported December 2.
As RP Newsline reported previously, the merger of the polish companies follows the acquisition
of Alico by MetLife Group from AIG which was closed on November 1, 2010. On June 27, 2011, the
Polish Financial Supervision Authority (KNF) approved merger of Polish-based Amplico Life and MetLife.
In June, the local media sources stated that the combined entity will be headed by Lukasz
Kalinowski (chairman of Amplico Life since 2009 and chair of MetLife since November 2010).
According to the data of KNF, in 2010, Amplico Life generated premium of PLN1.307 billion and
accounted for 4.16% of the local life market. In the same period, premium of MetLife totalled PLN175.179
million. The company’s market share was 0.56%. /RP Newsline
EUR1=PLN3.96
VIG to Merge Its Polish Subsidiaries InterRisk, PZM
Vienna Insurance Group (VIG) announced August 31 that it plans to merge its Polish non-life
insurance subsidiaries InterRisk and PZM under InterRisk brand. The transaction is expected to close in
the first half of 2012 and is subject to regulatory approval.
"In general, the Vienna Insurance Group is continuing with its very successful multiple-brand
strategy, but we are constantly reviewing the efficiency of our local sales structures. If we identify
potential synergies, as is the case here in Poland, mergers are the logical result. The merging of the two
companies in Poland provides us with a more compact market presence in one of our key geographical
markets," explains Gunter Geyer, CEO of VIG.
VIG has been active in the Polish insurance market since 1998. Following the merger, the group
will be represented by five companies and three different brands. These are Compensa life and non-life,
Benefia life and non-life as well as InterRisk.
In the first half of 2011, the premiums of the group Polish companies of the VIG increased by
43.7% to EUR498.1 million from EUR346.5 million. In particular, non-life premium grew 19.4% and
totalled EUR323.3 million as life premium increased over two-fold to EUR174.8 million from EUR75.7
million. The combined ratio was about 100%. The group’s profit before tax in Poland grew almost 2.5-fold
and amounted to EUR24.6 million.
According to the announcement, in the first six months of 2011, the two companies, InterRisk and
PZM, achieved total premium of EUR162.5 million. “The sales power of the two companies will be
combined as a result of the merger and their market presence will be strengthened by using a common
brand throughout the country,” the group stated.
VIG also said that it considers Poland, with a population of approximately 38 million, as one of the
largest markets in CEE and as a core market for the group. In 2010, the Polish market had an insurance
penetration ratio (premiums as a percentage of GDP) of approximately 3.8% (EU15: 8.7%) and an
insurance density (per capita premiums) of EUR356 (EU15: approximately EUR2,500).
Being part of VIG since 2007, PZM provides non-life insurance services. According to the Polish
Financial Supervision Authority (KNF), in 2010, the company wrote PLN183.197 million in premium and
accounted for 0.81% of the local non-life market.
InterRisk is part of VIG since 2005. According to KNF, in 2010, the insurer generated premium of
PLN1.046 billion. InterRisk was the fifth largest Polish non-life insurer with a share of 4.6%. /RP Newsline
EUR1=PLN3.96
VIG to Merge Its Bulgarian Non-Life Subsidiaries
Vienna Insurance Group (VIG) announced October 5 that it plans to merge its Bulgarian non-life
insurance subsidiaries Bulstrad and Bulgarski Imoti under Bulstrad brand. Subject to official approval, the
merger is expected to be completed during the first half of 2012.
"By merging the two property insurance companies, the Vienna Insurance Group will achieve an
integrated and clear presence in the Bulgarian market. This will increase our efficiency and make use of
earnings-based synergies. The leading position will also be further strengthened by pooling sales
functions," Gunter Geyer, CEO of VIG, commented.
In late August 2009, VIG also merged its Bulgarian life companies — Bulgarski Imoti Life and
Bulstrad Life — by transferring the portfolio of Bulgarski Imoti Life to Bulstrad Life.
In addition, as RP Newsline reported previously, in late August 2011, VIG said that it plans to
merge its Polish non-life insurance subsidiaries InterRisk and PZM under InterRisk brand. Earlier, the
group also decided to merge a number of its other foreign subsidiaries, particularly, in Ukraine and
Croatia. Furthermore, in early October media sources stated that VIG plans to merge its Georgian
insurance companies GPI Holding and IRAO.
VIG said in a statement that Bulgaria is one of its core strategic markets in Central and Eastern
Europe. The group with its companies is number one in the Bulgarian insurance market with a 15.4%
market share in the first half of 2011.
In particular, in the non-life sector the two companies, combined, are at the top of this market
segment with a market share of 16.3%. During the first half of 2011, Bulstrad generated premium of
around EUR43.3 million, Bulgarski Imoti wrote premium of over EUR14.1 million. /RP Newsline
Omniasig Shareholders Approve Merger with BCR Asigurari
The extraordinary shareholders meeting of Romanian insurer Omniasig, part of Vienna Insurance
Group (VIG), on August 4 approved merger with another local insurer BCR Asigurari, also subsidiary of
VIG, the local media XPRIMM reported August 10 referring to market sources.
According to the publication, Omniasig was the third largest non-life insurer in Romania in 2010,
with business worth RON916 million. BCR Asigurari was the fifth best in the sector last year, with
premium of over RON522 million. Therefore, the combined premium of the two companies was RON1.44
billion in 2010.
VIG is represented in Romania by four insurance companies, including Omniasig, Asirom, BCR
and BCR Life. In the first quarter of 2011, the group’s Romanian subsidiaries generated premium of
EUR144.5 million. Non-life premium amounted to EUR117.4 million, life premium totalled EUR27.1
million. The group reported loss before taxes in Romania of EUR5 million. /RP Newsline
Exchange rate as of January 1, 2011:
EUR1=RON4.27
Aegon Merges Polish, Romanian Life Subisidiaries
The Polish Financial Supervision Authority (KNF) on August 9 approved merger of Polish insurer
Aegon TU na Zycie and Romanian life company Aegon Asigurari de Viata, Gazeta Ubezpieczeniowa
reported August 10.
According to the announcement, Romanian life insurer Aegon Asigurari de Viata will transfer its
assets to Aegon TU na Zycie. In exchange, Aegon Asigurari de Viata will receive Aegon TU na Zycie’s
shares.
As RP Newsline reported previously, in late July, Aegon Asigurari de Viata announced that
Aegon TU na Zycie will open a branch in Romania, which will merge with Aegon Asigurari de Viata.
According to the announcement, the move is part of Aegon’s plan for strategic development in
Central and Eastern Europe aimed at increasing business efficiency and improvement of client services.
Aegon Asigurari de Viata was established in 2008. As of the end of 2010, its authorized capital
totalled RON61.680 million (about EUR14.48 million), equity came to RON34.556 million (about EUR8.17
million).
Set up in 1999, Aegon TU na Zycie is part of Aegon since 2005. Headquartered in Warsaw, the
company has PLN333 million (about EUR83.67 million) in authorized capital. /RP Newsline
CIG Pannonia to Restructure Its Romanian Operations
Hungary-based CIG Pannonia announced September 5 that it had decided to change the
operations model of its Romanian subsidiary. In the future, the company plans to operate in Romania on
a cross boarder basis.
The insurer said in a statement that it aimed at expanding life markets of neighboring countries
since its foundation in 2008. Thus, in May 2009, CIG Pannonia entered Romania by opening a branch; in
September 2010, the insurer started cross boarder activities in Slovakia. In the first half of 2011, the
share of international operations in the company’s new business reached 7.8%.
According to the announcement, the company’s board of directors “analyzed the two different
models and decided the amendment of the Romanian strategy to take over the Slovakian cross border
business model.”
“With the changes in our central and local operations we will be able to focus more on product
development, broker and client service, and in general do business developments parallel with
remarkable gain on cost efficiency,” Csaba Gaal, CEO, commented.
CIG Pannonia added that it expects to grow its Romanian business due to the entry of Palladium
(local company of Brokernet Group, strategic partner of CIG) to the Romanian life insurance brokerage
market this summer.
Registered in January 2008, CIG received a life operating license from the Hungarian Financial
Supervisory Authority in spring of the same year. In 2009, the company entered the Romanian life
insurance market; in 2010 it started operations in Slovakia. In the future, CIG also plans to enter Bulgaria,
Serbia and Ukraine. Long-term expansion plans include Russia. In the first quarter of 2011, the insurer
generated premium of HUF7.896 billion. /RP Newsline
EUR1=HUF268.32
Source: National Bank of Hungary
International Market
Insurance
SCOR Global Life Opens New Subsidiary in Australia
SCOR announced May 18 that SCOR Global Life SE had opened a new subsidiary in Australia
covering the Australian and New Zealand markets.
The Australian subsidiary is headed by Craig Ford and is part of SCOR’s Singapore Hub, which
acts as the headquarters of the Asia-Pacific region with network offices in Beijing, Hong Kong, Kuala
Lumpur, Labuan, Mumbai, Seoul, Taipei and Tokyo.
SCOR Global Life Australia Pty Limited received authorisation to conduct reinsurance business in
the Australian market from the Australian Prudential Regulation Authority on May 10, 2011. This follows
on from approval received earlier in the year to operate in the New Zealand market.
“With annual life insurance premiums approaching EUR7 billion and historical and forecast
annual growth averaging 10%, the Australian and New Zealand markets offer attractive profitable growth
opportunities for the group. Current annual life reinsurance premiums totall EUR1.75 billion on these two
markets,”the group said in a statement.
SCOR has been operating on the Australian P&C reinsurance market since 1976. /RP Newsline
Willis Re to Broker Life Reinsurance Business
Willis Re, part of Willis Group, announced May 13 that it had established a Life Solutions Group
to provide the market with advice on risk mitigation and financial leverage. The broker appointed Rick
Hodgdon, Mike Kaster and Brian Holland to lead the new team.
According to the announcement, Willis Re Life Solutions Group will initially focus on North
America, providing capital management, structuring and advisory, and program enhancement solutions
for the life insurance and annuity marketplace.
“Industry capital pressures and the demands for enhanced capital efficiency in the life and
annuity marketplace have created an opportunity for Willis Re to establish a unique platform that will help
clients improve their capital efficiency,” Mark Hvidsten, executive vice president and managing director,
Willis Re, commented on the move into the life reinsurance space.
Hodgdon, senior vice president, brings over 30 years experience in reinsurance, business
development and capital management to his new role at Willis Re. He joins from Fortegra Financial where
he was president of the Life Solutions Group. In his career, he has held senior management positions
with some of the largest financial services organizations, both domestic and international, including most
recently Imagine Advisors Inc., Navigant Consulting Inc. and Transamerica.
Kaster, FSA, senior vice president, has over 25 years experience in insurance and has served as
chief actuary, corporate actuary and chief product actuary for major insurance organizations, including
Conseco, Irish Life of NA, and Allstate International. He joins from Kaster Actuarial Resources. Kaster
has also held a senior consulting position with Watson Wyatt, as well as other life insurance company
roles. Kaster currently chairs the marketing and distribution section for the Society of Actuaries.
Holland, senior vice president, brings 30 years experience in reinsurance marketing and risk
management. He has held chief marketing officer and board level positions for several domestic and
international reinsurance organizations, including amongst others Annuity & Life Re America, ING Re and
Transamerica Reinsurance. He joins Willis Re from Mann Conroy Eisenberg & Associates, an
international risk advisory firm where he was a principal. /RP Newsline
JLT Re Enters Life Reinsurance
JLT Re announced June 13 the opening of its new office in Basel, Switzerland following the
acquisition of US Re's Basel based treaty reinsurance business portfolio and assets. JLT
Re's Basel branch is headed up by Mark Lucas and signals JLT Re's entry into life reinsurance.
Lucas has nearly 30 years of industry experience, initially working for Guy Carpenter
in Europe and most recently for US Re where he established their branch office, responsible for
production and placement of European non-life and life reinsurance business into the world market as
well as product development.
"Basel will give JLT Re a base from which to expand in all areas of reinsurance into
mainland Europe and extend our relationships with our European International network colleagues," Alan
Griffin, chairman, JLT Re, commented.
Established in 2006, JLT Re is a part of JLT Group. JLT Re is headquartered in London, and
other three production and marketing centers of the company are in New York City, Bermuda and
Singapore. In 2008, JLT Re acquired Harman Wicks & Swayne (HWS), a premier reinsurance broker
specialising in non-marine (property and casualty) treaty reinsurance. /RP Newsline
Eurasia Enters Mexican Reinsurance Market
Kazakhstan-based insurer Eurasia received the approval to provide reinsurance services in
Mexico, Interfax-Kazakhstan reported November 15.
According to the data of Eurasia, Mexican insurance market is the second largest market in Latin
America. Earlier, in 2011, the insurer also entered Brazil and Paraguay.
Set up in 1995, in 2010, Eurasia generated KZT18.9 billion in premium and paid out KZT2.3
billion in claims. As of August 1, the company’s assets totalled KZT65.1 billion. /RP Newsline
Exchange rate as of November 21, 2011:
EUR1=KZT199.99
COMPANIES: M&A
SCOR Completes Acquisition of Transamerica Re from Aegon
SCOR has finalised the acquisition of the mortality portfolio, including the operational assets and
personnel, of Transamerica Re, a division of Aegon, the parties announced August 10.
The transaction amounts to a total consideration of US$912.5 million, including a statutory equity
of US$497 million for the Irish entity per closing date. It is financed by SCOR without the issuance of new
shares.
SCOR has obtained all the necessary approvals from the relevant regulators, notably the Texas
Department of Insurance, the Delaware Insurance Department and the Central Bank of Ireland.
The agreement was first announced in late April 2011. Under the agreement, Aegon has divested
its global life reinsurance activities with the exception of select blocks of business. The retained
businesses comprise mainly variable annuity guarantee business.
Aegon has transferred to SCOR EUR1.2 billion (US$1.8 billion) of assets in cash and securities,
and corresponding liabilities (numbers subject to customary closing adjustments).
The activities of SCOR Global Life and Transamerica Re on the American continent have been
combined into a single new SCOR Global Life entity, SCOR Global Life Americas, managed by Paul
Rutledge, who until now was the president of Transamerica Re. Rutledge also joins SCOR’s executive
committee.
“This major acquisition increases the volume of premiums written by SCOR Global Life by around
50%. The business being acquired represented a gross premium volume of US$2.2 billion in 2010, 87%
of which was underwritten in the United States,” SCOR said in a statement. /RP Newsline
Hanover Insurance Group Acquires Chaucer
US-based Hanover Insurance Group announced July 1 that, having received shareholder,
regulatory and court approvals, it has completed the acquisition of Lloyd’s insurer Chaucer Holdings,
effective the same day.
The total consideration paid for this transaction is approximately US$474 million1, including
approximately US$13 million1, to be paid in the form of loan notes to shareholders who have elected to
receive such loan notes in lieu of cash.
Hanover announced the acquisition of Chaucer in April 2011. Robert Stuchbery will continue as
CEO of Chaucer.
Chaucer is a specialist Lloyd’s insurance group. Through its in-house syndicates 1084 and 1176,
Chaucer underwrites business in all the major insurance classes, encompassing global marine, energy,
non-marine and aviation, as well as UK motor and nuclear. In 2010, Chaucer reported gross written
premium of GBP849 million (US$1.333 billion), net earned premium of GBP589 million (US$925 million)
and total assets of GBP2.3 billion (US$3.7 billion). Headquartered in London, the company has regional
operations in Whitstable, England and international operations in Houston, Singapore, Buenos Aires and
Copenhagen.
The Hanover is a holding company for a group of property and casualty insurance companies
that offers commercial, specialty and personal insurance products and services through an extensive
network of independent agents. Headquartered in Worcester, Massachusetts (US) and listed on the New
York Stock Exchange, The Hanover ranks among the top 25 property and casualty insurers in the US
and, as at April 19, 2011, had a market capitalisation of approximately US$2.0 billion. The Hanover had
net written premiums in excess of US$3.0 billion in the year ended December 31, 2010. /RP Newsline
EUR1=GBP0.86
Source: Bank of England
Hannover Re Acquires Reinsurance Portfolio from Scottish Re
Hannover Re announced April 18 that it had reached agreement with Scottish Re (US) on the
acquisition of a reinsurance portfolio as part of a transaction.
The acquired portfolio covers the mortality risk under term life and endowment policies that were
reinsured by Scottish Re in the underwriting years 2000 to 2003. The business is 100% assumed by
Hannover Re with effect from January 1, 2011.
The business is expected to generate an annual premium volume of around US$80 million.
Hannover Re is to assume the technical liabilities associated with the portfolio and will in return receive
the necessary assets from Scottish Re.
The transaction, which is expected to close in May 2011, still requires regulatory approval and is
therefore subject to the customary reservations.
"This transaction superbly complements our acquisition of the ING life reinsurance portfolio in
2009 and further strengthens our traditional US life business", Ulrich Wallin, CEO of Hannover Re,
commented. /RP Newsline
Eureko Merges Achmea
Eureko announced November 19 that the merger deed between Achmea Holding NV and Eureko
BV, assigning all the former's rights and obligations to the latter, was signed on November 18, 2011. As a
result, Eureko's name has been changed to Achmea.
In late August 2011, Eureko announced the planned merger of Achmea and Eureko holding
companies. The merger was part of the group’s strategy, announced in 2009 primary aimed at reducing
the complexity of its organisation. /RP Newsline
COMPANIES: REORGANIZATION
Swiss Re Establishes New Corporate Structure under New Holding Company
Swiss Re announced February 17 that it plans to establish a new corporate structure under a
newly-formed holding company. The new holding will comprise three separate business units, including
Swiss Re’s existing reinsurance business and two new entities for Corporate Solutions and Admin Re®.
/RP Newsline
RSA Changes Operational Structure
RSA announced November 11 changes to its operating structure and executive team. Effective
January 1, 2012, the group will be organised into four regions, UK & Western Europe, Scandinavia,
Canada and Emerging Markets.
Under the new structure, Mike Holliday-Williams, CEO Scandinavia, and Rowan Saunders, CEO
Canada, will join the group executive team. Furthermore, Adrian Brown, currently CEO UK, will become
CEO UK and Western Europe. This region will comprise UK, Irish and Italian businesses, as well as
specialty operations in Spain, France, Germany, the Netherlands, Belgium and Italy. Emerging Markets
structure remains unchanged under Paul Whittaker leadership.
Previously, the group had three core business units: UK (UK and specialty operations in Spain,
France, Germany, the Netherlands, Belgium and Italy); International (Canada, Ireland, Italy, Scandinavia)
and Emerging Markets (Latin America, Asia, Middle East, CEE).
“This new structure reflects the significant contribution our Scandinavian and Canadian
businesses make to the group’s results and will drive improved performance across our UK and Western
European region,” Simon Lee, group CEO, commented. /RP Newsline

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