Groupama gains a foothold in Romania

Groupama has just completed the purchase of the insurance company BT Asigurari from Banca Transilvania.

BT Asigurari is the 9th largest non-life and the 12th largest life insurer in Romania, with a market share of 4% and a premium income of €60 million in 2006.

In the first six months of 2007, BT Asigurari earned premium income of nearly €40 million, a 40% increase over the same period in 2006. The company achieved growth of 162% between 2004 and 2006, while the market overall was up 54% during the same period.

BT Asigurari has the 2nd largest Romanian distribution network, with over 270 branches and sales outlets throughout the country. This network is developing rapidly.

The transaction included the signature of an exclusive bancassurance agreement for non-life products with Banca Transilvania. the 5th largest bank in Romania.

The Romanian market, with its 21 million inhabitants, has very significant potential based on the country’s strong economic growth and the low penetration of insurance products. The insurance sector represented only 1.7% of Romanian GDP (just 0.3% for life insurance), with premiums of €75 per capita in 2006.

Groupama is already present in Central Europe through its Hungarian subsidiary Groupama Biztosito, particularly active in the motor insurance, multi-risk home insurance and personal life insurance sectors. Groupama Biztosito was the first Hungarian insurance company to launch unit-linked policies denominated in euros.

This acquisition is in keeping with the strategic development plan for Groupama, whose goal is to be among the leading pan-European insurance companies. Groupama is actively pursuing acquisition opportunities, targeting Central, Eastern and Southern Europe.