Australia's QBE group, one of the world's leading insurance groups, is preparing to enter the Romanian market and expects to start operating by early next year.
"We've decided that the best strategy for entering the Romanian market is to open a new subsidiary on the basis of the free movement of services through our British-based company. We have already recruited a general manager, Gabriel Sauer, who has been working in insurance for the past 15 years. The last position he held was as the maritime and aviation insurance manager of Asiban," Sandra Villanueva, Marketing Executive with QBE Europe, told ZF.
Australia's QBE has been present in the Republic of Moldova for many years, where it purchased one of the biggest insurance companies.
The group has attempted to enter Romania in the past, via an acquisition, but all discussions have so far failed. In 2001, the Australians attempted to acquire the Ardaf Cluj insurance company.
"QBE has considered many acquisition opportunities in Romania, but has failed to find a company at a price that could generate value for its shareholders. We've been in talks with several Romanian companies in recent years. At the moment, though, we are not in talks for any acquisitions and believe the best strategy for QBE is to open a subsidiary in Romania through our company based in Great Britain," explains Sandra Villanueva.
The QBE manager believes the Romanian insurance market is currently boasting a high growth potential, given Romania's high number of inhabitants and the country's entry into the European Union.
"European Union integration will lead to the development of infrastructure, both in the public sector and the private one, which means business opportunities for insurers," maintains Villanueva.
QBE is Australia's biggest insurance group and one of the top 25 at a global level. The insurance company has offices in 44 countries and over 10,000 employees. The group underwrote gross premiums standing at 10.37 billion dollars in 2006, 10% higher than in the previous year, with the increase primarily due to acquisitions. The group's net income advanced by 36 percentage points and reached almost 1.5 billion dollars.
The largest part of the group's turnover is accounted for by its Lloyds unit (2.7 billion dollars), followed by QBE Insurance Europe (2.5 billion dollars) and the company in Australia (2.49 billion dollars).
QBE is not the only company outside the European Union that has decided to enter the Romanian market through an office in a EU member state. Other companies that followed a similar strategy include First Title Insurance, Liberty Mutual Insurance (both from the United States), Mitsui Simitomo Insurance and Sompo Japan Insurance (both Japanese).
QBE in brief
One of the world's leading insurance groups; is set to enter the domestic market early next year
Intends to open a subsidiary in Romania through its company based in Great Britain
Attempted to enter Romania before, but all efforts have been unsuccessful
Underwrote gross premiums standing at $10.37bn in 2006, 10% higher than in the previous year, with the increase primarily due to acquisitions
Net income advanced by 36% to almost 1.5bn dollars
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