One of the world's largest insurance companies, Allianz AG, bought the majority stake (51%) in the Romanian insurance company Asigurari Ion ?iriac from Ion ?iriac businessman, who stated that this is the most important partnership he had sealed during the last ten years of activity.
"It seems logical to me that in all my businesses, excepting sports ones, I should find a partner so that I might have a different opening and potency," ?iriac stated.
The new name the company will operate under is "Allianz - ?iriac Asigurari" SA and the Romanian businessman is to directly hold, through Ion ?iriac Bank and his group, 45 percent of stock, the rest belonging to managers. "It seems to me I did a good job, with the right persons," ?iriac said.
In Romania, where the insurance activity is just flourishing, the partnership with Allianz AG, an international insurance leader, with the highest rating possible granted by all evaluation agencies in the world, certainly represents a guarantee for responsibilities assumed through insurance policies by Allianz-?iriac Asigurari SA, as well as for responsibilities related to life insurance policies and pension funds.
Allianz has tackled the Romanian since 1991, holding discussions with all large insurance companies.
ASIT is the most powerful private insurance company and Cristian Constantinescu, the company's chairman, considers it is number one from the point of view of value and capacity to honour assumed obligations.
ASIT needed a foreign partner for its image, because there are many foreign investors who choose their partners depending on who is behind the respective insurance company, and Allianz is very well known. Within the first stage, "Allianz-?iriac Asigurari" will let the Romanian market on what Allianz means as financial strength and investment possibilities.
"Our great advantage will be when Romanian get to understand what Allianz is. During the last 110 years, it has not left any countries it entered. No matter the price, it does its job," ?iriac mentioned.
The new company intends to introduce new insurance products, such as health insurance products and to get involved in the administration of private pension funds.
ASIT has constantly been, since 1995, the main rival of the two companies that separated from the former State Insurance Administration - ADAS, namely Asirom and Astra, holding a market share that has constantly increased from 6-7 percent in 1995, to the 9-10 percent at present, in the context where shares of the former two companies decreased each year.
The company registered cash-ins from premiums standing at 350 billion lei ($23m) in 1999, holding about 10 percent of the market, as compared to approximately 9% in 1998, when cash-ins amounted to 193 billion lei ($22m).
ASIT comes first in the domain of person direct insurance, within the maritime and transport insurance, fire, damage and general civil responsibility insurance, with shares ranging between 20 and 30%.
"Allianz's presence shows that the Romanian insurance market is a serious market, full of potential. The largest European insurance companies are now present on the Romanian market. This confirms the fact that, beginning 1992, the Romanian insurance market has become a competition market," says Nicolae Crisan, director of the Office for the Surveillance of the Insurance and Re-insurance activity in Romania.
The Romanian life and non-life insurance market already hosts renowned companies, such as American International Group - AIG, Nederlanden Dutch company, the Italian company Generali, the British group CGU and the Greek one Interamerican , which are leaders on their countries of origin.
In 1999, Allianz recorded turnover worth 53 billion euros, 15% higher year-on-year, amid net profit of 2.2 billion euros, having the highest market capitalisation among European insurance companies.
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