Generali competing with Asiban

Other companies, such Axa and Groupama from France, Austrian Uniqa, Eurokon and Aegon from the Netherlands, Fondiaria-SAI from Italy, and Munich Re from Germany have shown interest in Asiban, but only Groupama, one of France’s largest insurance companies, and Generali and Fondiaria-SAI have expressed interest officially.

The takeover will be coordinated by the European division of the Rothschild Investment Bank, who also served as adviser for Erste Bank when it acquired the Banca Comerciala Romana (BCR).

A takeover of Asiban is part of Generali’s plan to expand in Central and Eastern Europe, and the company has allocated €1 billion. “We want to expand in Poland, where we already enjoy a dominant position in asset management, and we are also interested in the Romanian and Turkish markets,” Balbinot said.

Generali plans to reach 10 percent market share by 2012 in Central and Eastern Europe due to the joint venture established with PPF in the Czech Republic. “There is great potential for growth in life the insurance segment, especially in Eastern Europe,” Balbinot said.

Generali PPF Holding is a joint venture of Assicurazioni Generali (51 percent) and PPF Group (49 percent). The holding plans to carry out operations in 12 Central and Eastern European countries. In Romania the Italian group operates through Generali Insurances and Generali Pension Fund.

Asiban was established in December 1996. BRD-Groupe Societe Generale, savings bank Casa de Economii si Consemnatiuni (CEC), and Banca Transilvania own 25 percent each, while the Banca Comerciala Romana (BCR) and Financiara, both belonging to Erste Group, together control the remaining 25 percent.

According to statistics provided by the Supervision and Insurance Commission (CSA), Asiban was the fourth-largest insurance company in Romania in 2006, with €118 million gross premiums subscribed, following Allianz-Tiriac, Asirom and Omniasig.