Austrian groups become financial market leaders

The insurance market share of local companies owned by  Austrian financial groups already exceeds 42 percent. The Uniqa group, leader of the Austrian insurance market, yesterday announced it has increased its participation in the Astra insurance company to 50 percent from 27 percent, thus obtaining controlling interest. The transaction is estimated to be worth some €10 million.

Local regulators must yet approve the transaction, to be posted on the Rasdaq electronic market of the Stock Exchange, where the company is listed. According to stock exchange rules, Uniqa will launch a mandatory public offering for the remaining shares, owned by small shareholders.

The main competitor of Uniqa on the Austrian market is Vienna Insurance Group (VIG), which en-tered Romania in 2001 by purchasing 51 percent of the Unita insurer for some DM 6 million (€3 million). One year later, VIG acquired the remaining 49 percent of Unita and the Agras agriculture insurance company. In 2005, the Austrian group purchased a staggering 73 percent of Omniasig, one of Romania's largest companies, for €64 million.

BCR Asigurari, the second-largest company on the local insurance market, with a 10.67 percent market share, is controlled by  Austrian Erste Bank, which also owns BCR Asigurari de Viata and the Asiban insurance company.

By 2005, the Austrian Grazer Wechselseitige Versicherung (Grawe) Group, had invested some €8 million in Romania. Grawe later took over another Austrian insurance company, Sara Merkur. In March 2007, Grawe Romania had sold gross premiums worth €4.6 million, ranking 20th on the insurance market, with less than one percent share. "The insurance market through-out the world is dominated by major players with financial strength. The fact that almost all large international groups are operating in Romania shows that it is becoming integrated into the European market," according to analyst Constantin Nastase for Business Standard. "We have here all the big names, which provides stability for the insurance market," he added. 41 insurance companies are  authorized to operate in Romania. By the end of 2006, their share capital exceeded €415 million, according to the Insurance Supervising Commission (CSA).

"We have here all the big names, which provides stability for the insurance market "Constantin Nastase economic analyst