07.06.2005 |
The UNIQA Group has acquired 27 percent of the share capital of Romania's fifth-largest insurer SOCIETEA COMERCIALA DE ASIGURARE - REASIGURARE ASTRA S.A. from SC NOVA Trade SA, the majority share holder. Austria's leading insurance group is thus expanding its operations to yet another country. As recently as March 2005, UNIQA decided to acquire Raiffeisen Osiguranje in Bosnia/Herzegovina and commence free exchange of goods and services with Slovenia. With Romania added to the list, UNIQA is now represented in 13 European countries.
UNIQA CEO Konstantin Klien comments: "We have studied the Romanian insurance market and the options it presents in great detail and decided to take a stake in ASTRA as our first step. ASTRA is a very rapidly growing company for which we see great potential on the Romanian insurance market. What was important for our decision, besides the 6% market share that UNIQA is aiming at in the Central and Eastern European countries, is the economic potential and prospects for making a profit. I don't want to exclude the possibility that we might still be looking around in Romania for other such candidates."
The acquisition of this 27 percent stake in ASTRA SA from SC Nova Trade SA, the majority share holder, was effectuated by means of a block trade transaction through the Bucuresti Stock Exchange. This transaction still requires the approval of the appropriate local authorities. ASTRA is listed on the Bucharest stock exchange, RASDAQ.
SOCIETATEA COMERCIALA DE ASIGURARE - REASIGURARE ASTRA S.A. In 2004, ASTRA achieved a premium volume of € 48.4 million (+41%) and was able to increase its market share to 5.6%. Its portfolio consists mainly of automobile premiums, which is typical of the situation in Romania. In non-life, ASTRA's premium volume in 2004 amounted to € 47.9 million (+41.2%) or a 7.1% market share. Life insurance is still underdeveloped, with a premium worth € 0.5 million.
ASTRA's head office is located in Bucharest. A decentralized network of 161 branches and agencies exists for sales and marketing. ASTRA itself employs a staff of around 400 in the various offices and 600 in the field. The company also collaborates with about 8000 agencies and 100 brokers. 70 types of insurance are offered in all sectors of the business.
Romanian insurance market The approximately 45 insurance companies (more than half of them with foreign participation) on the Romanian market achieved a premium volume of around € 866.3 million (+23.4%) in 2004. Despite increased growth in life insurance in the past few years, non-life dominated the market as before, with 77%. Insurance premiums comprise 1.5% of Romania's GDP, which is similar to other new EU members but still markedly below the EU15 average (5.7%).
Vienna, 7. June 2005