Alpha Insurance aims for $1.5m turnover

Alpha Insurance Romania estimates to collect $1.5 million in gross premiums (turnover) next year, from the sale of group insurance and goods insurance policies, general manager Gerasimos Gazis said during the official launch of Alpha Insurance’s operations.
“The development of the company will consist in two stages, with only general insurance, auto insurance not included, and group life insurance sold during the first stage. The second stage will see individual life insurance introduced, which requires developing a broader sales network, and therefore more time for preparations,” Gazis added.
The company manager says the Greek Alpha Group had three options to choose from when planning to enter the insurance market: development by its own investment, buying a large company on the Romanian market or taking over a smaller company in which to invest later. The Greek investors chose to buy a smaller company and took over Carisma insurance company two years ago.
Alpha Insurance’s main shareholder is Greece’s Alpha Bank with 65%, followed by Alpha Bank Romania – 14.98%, Alpha Insurance Greece – 14.98%, Alpha Assets Management – 0.01% and Alpha Investment Services – 0.01%. The share capital of the company is worth one million dollars  and is set for an increase early next year.
Alpha Insurance will first use Alpha Bank Romania’s distribution channel, focusing on bancassurance products. Gazis added the insurance company would use Alpha Bank’s client portfolio, which includes companies that hold the leading position on their operating markets.
The Alpha Insurance representative feels the Romanian market has too many insurance companies operating at the moment and thinks only those insurance companies backed by powerful financial groups or which have already made a brand name for themselves will survive on the market over the next two or three years.
The Alpha Bank management also announced expansion of the housing loans to be offered at variable interests, as well, both in ROL and in foreign currency.