Andreas BRANDSTETTER, Member of the Board, UNIQA Group Austria
The Austrian market has its limitations, as regards the number of population and market potential.
Therefore UNIQA decided to expand its activities in the CEE region, where the potential in insurance is very high and the insurance penetration and density is still on a very low level.
XPRIMM: Austria is presently the most important investor in the Romanian
insurance market and also the most significant player. How do you explain
this and how do you think this tendency will evolve, particularly in
the CEE region?
UNIQA: The Austrian market has its limitations, as regards the number
of population and market potential.
Therefore UNIQA decided to expand its activities in the CEE region, where
the potential in insurance is very high and the insurance penetration
and density is still on a very low level.
XPRIMM: Can you share with us some features, particularities of the Austrian
non-life market and how does UNIQA work there?
UNIQA: The Austrian insurance market is a more mature market, so
that the motor insurance has only a 19 % contribution to the total GWP,
comparing to the Romanian 61%.
In 2007, 41.7% of the premium volume was contributed by property and
casualty insurance, (in the CEE & EEM regions the premium written
in this line on business grew by 23%, thereby contributing 24% to the
Group premiums in property and casualty insurance) 41,1% by life insurance
and 17,2% by health insurance.
UNIQA Group obtained a very good core activity performance, by decreasing
its combined ratio with 9%, to a very efficient 86,8% . This proves that
despite the financial environment that it is not so favorable lately,
our core activity is a solid an efficient one, giving us the security
for our clients.
Wolfgang KINDL
Managing Director
UNIQA International
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XPRIMM: On what grounds have you taken the decision to take over UNITA
and what is the development strategy of UNIQA in Romania from now on.
What will make the difference between UNIQA and your competitors?
UNIQA: UNITA is the number 4 player in the non life insurance market,
a very important insurance company in a core market for UNIQA. By acquiring
UNITA, a 7% market share is also gained, which gives us the solid basis
for a long term growth in Romania.
We differentiate by our client approach, which is going to be a long
term partnership approach, offering comprehensive solutions for medium
and long periods and, coming up in front in a very proactive way, with
innovative answers to their insurance needs.
XPRIMM: When will you start the rebranding process, what costs it
would imply and what is the brand orientation for the new UNITA?
UNIQA: The rebranding process will start in the first quarter 2009.
The new UNIQA company will follow the corporate image of UNIQA Group,
following the Group guidelines in this respect. We are proud with a brand
that gained several times the "Most trusted brad" award by Reader's Digest.
Also, after less than 10 years of existence of UNIQA brand, it has a
he brand awareness of 90% on the Austrian market, and over 35% in most
of the countries it entered. UNIQA stands for uniqueness: both in clients
approach and in products and services solutions rendered.
XPRIMM: Regarding your strong cooperation with RAIFFEISEN Bank, what
share in total business of UNITA do you expect bancassurance operations
to have? What do you think about the potential of bancassurance as alternative
distribution channel in the Romanian market?
UNIQA: Due to the preferred partnership UNIQA has all around Europe
with its partner, RAIFFEISEN Bank, we expect a consistent growth of the
bancassurance segment in UNITA. The partnership grants us the growth
potential in this sector, in which we expect an over the market average
increase.
XPRIMM: How do you appreciate ASTRA's performance in the recent period
and what are your plans regarding this company? Are you going to sell
the 27% stake you have in ASTRA?
UNIQA: We respect the company's business development, which is in
accordance with the strategies set up together with UNIQA in our former
years of collaboration.
Our participation in Astra will remain at 27% and we will no longer be
involved in company's activity.
XPRIMM: What plans do you have for AGRAS, as you have now a majority
stake of 92.31% in the company?
UNIQA: For the moment we are in the phase of evaluating our options
regarding AGRAS and we will decide upon this issue in the next period.
XPRIMM: Romania is now the second market for UNIQA after the Austrian
one in terms of business. How do you envisage the local insurance market
development by 2010 and what are the plans UNIQA made for Romania for
this three years period?
UNIQA: Although the economic crisis will lead to a relative slowing
down of the market increase, it will for sure become profitable in the
future years, as other voices in the market were saying. For the next
5 years the market will reach EUR 10 billion.
As UNIQA is regarded in Romania, we intend to develop our portfolio,
from a very good base position that UNITA has, as a no. 4 company in
the non life industry. Therefore, we intend to balance our portfolio
with property, health and life insurance products.
XPRIMM: The lack of profit is the biggest problem of the Romanian
insurance market. What strategic orientation will you adopt here - profit
or market-share?
UNIQA: As compulsory products as MTPL are not a profit driver but
a market share one, we will use the opportunity that UNITA gives us with
its large MTPL clients database, by using it as a cross selling and up
selling tool in order to implement the profitable lines of business.
XPRIMM: Given the co reorientation towards profit as pressure from
shareholders grows when do you think the Romanian insurance market will
return into the black? Are there any threats on this market?
UNIQA: In about 3 years, companies will go over the profit line,
despite the present economic situation.
XPRIMM: Thank you!
| Published on 08.12.2008 |
