German group Gerling, one of the largest insurance companies in the world, is probing the Romanian market, searching for a company to take over in order to start direct operations in Romania, sources within financial circles said.
Gerling conducted a series of preliminary talks with Grup AS for the time being, but the latter has recently negotiated the sale of an important stake with a Romanian investor.
Dumitru Simion, Grup AS chairman, said that talks with Gerling might continue. “We keep in touch with them, especially if current negotiations fail to bring us an agreement,” Dumitru Simion said.
The German group, through its life insurance division, Gerling General Life Insurance, is interested in Grup AS Viata, a small company established last year and needing to increase the share capital.
However, insurance market analysts feel that Gerling is quite unlikely to come to Romania, especially because the endorsement of 32/2000 Law, which regulates the insurance market, is still being delayed.
Gerling group has indirect business ties with some Romanian companies operating in the field of industrial insurance and re-insurance.
Gerling group last year registered DM18.3 billion in revenues derived from premiums. More than 40% come from its operations outside Germany. It has 11,000 employees and is present in most industrialised countries.
Gerling operations in Central Europe include its divisions in the Czech Republic, Hungary, Poland and Slovakia.
The group’s name comes from its founder, Robert Gerling, who established an insurance office in Cologne in 1904. Gerling is now the only international insurance company that remained a family business.
Rolf Gerling, the founder’s grandson, is currently the company’s main shareholder and President of the Management Board. The other important shareholder is Deutsche Bank, which purchased a 30% stake in Gerling in 1992.
Grup AS, the only Romanian company that has carried talks with Gerling, began its activity in August 1995, bearing the name of AXA and having a share capital of 175 million lei. The company’s portfolio focussed on accident insurance.
The company’s shareholding structure is made up mainly of natural persons. The current president Simion Dumitru holds 51% shares in Grup AS.
The company changed its name to Grupul de Asigurari Roman Grup AS in April 1998, when it also began to expand throughout the country.
The name was changed in order to avoid a possible confusion or misunderstanding with French financial group AXA. Grup AS currently has two offices in each Romanian county and a share capital of 30 billion lei.