The Austrian insurance company Grazer Wechselseitige Versicherung, which owns Grawe Romania, has bought the life insurance company Sara Merkur from another Austrian company.
"As of January 1, 2005, Grazer Wechselseitige Versicherung AG (Grawe) is the new majority stakeholder in Sara Merkur. As far as customers are concerned, insurance contracts will not be modified," Sara Merkur representatives announced late last week.
Grawe Romania forecast a turnover of 5.4 million euros for last year, while Sara Merkur recorded gross subscribed premiums of 2.8 million euros in 2004.
If Grawe manages to maintain a level of growth similar to last year's level of almost 70% and succeeds in reviving Sara Merkur sales, the new entity will be able to generate a turnover of over 10 million euros next year, giving it a strong position on life insurance market.
In 2003, Grawe held a 1.8% share of the life insurance market, slightly ahead of Sara Merkur's 1.5%. In 2004, Grawe's market share rose to 2.3-2.5%, while Sara Merkur's share remained the same. Following acquisition of Sara Merkur, the "new" Grawe could this year attain a market share in the region of 4%. The cumulated market share would mean eighth position for 2004, three positions higher than in 2003.
Grawe, which entered Romania in 2000, has so far kept a low profile, dealing exclusively through brokers.
The company has seen constant growth each year since entering the market and made gross profits in the first nine months of last year of more than 400,000 euros.
"The acquisition of Sara Merkur is proof of the confidence we have in the Romanian market," said Adina Mandoiu, marketing and PR manager with Grawe Romania.
The value of the deal has not been disclosed.
At one time, Sara Merkur ranked third on the Romanian life insurance market but was unable to keep up with the Western European and US multinationals that entered the market after 1998 and invested tens of million euros.
Both Grawe and Sara Merkur have regional coverage: both operate in Central and Eastern Europe and have their central headquarters in Graz, Austria.
In 2003, Grawe logged deals of over 530 million euros, while turnover derived by Merkur Versicherung amounted to around 300 million euros.
Merkur Versicherung became a majority shareholder in Sara Merkur in 1996, after it acquired 51% in the stock of another Austrian company, Bawag Versicherung.
sorin.pislaru@zf.ro
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