Newly formed Generali Romania to put EUR 3 mln into promotion campaign

Generali Group officials have announced that Generali Romania will officially start operations in Romania, after the merger between Generali Insurance and Ardaf. The newly formed company becomes the seventh biggest player on the local insurance market, with a combined market share of 6.7 percent in the first half of 2011. In 2010, Generali Insurance held a 6 percent market share of the life segment and 8 percent of the non-life segment.

In March, shareholders of Generali Insurance and Ardaf decided in favor of the merger of the two companies by absorption. In August, they and the Romanian Insurance Supervisory Commission approved the merger and the following month the process was finalized.

Speaking at a press conference last week to announce the move, Gianluca Colocci, responsible for merger and acquisitions operations for Generali PPF Holding, said that Romania had potential in the growth of its population and GDP, along with the low insurance penetration. Colocci predicts further growth in the life and non-auto insurance segments and named Romania, Russia, Poland and Turkey as growth clusters for the Generali Group.

Adrian Marin, CEO of Generali Romania, said that the newly formed company has a balanced portfolio: 48 percent auto, 19 percent life, 24 percent property, 6 percent liability and 2 percent travel. Marin added that the firm will have over 500 partners, including insurance brokers, banks and leasing companies.

Marie Kovarova, member of the supervisory board of Generali Romania, said that the merger process would last approximately one year. She added that Ardaf and Generali Insurance have different client profiles and are targeting different customer segments. Generali Romania will benefit from the complementarity of the two distinct brands in gaining ground on the local insurance market. Ardaf is well established in the retail segment while Generali is perceived as a powerful brand, mainly in urban areas.

Hence the two separate brands and networks will be kept and a multi-brand strategy will be established for Generali Romania. EUR 3 million will be allocated to promoting the image of the new insurer. On the long term, Generali Romania wants to increase its market share to 10 percent.
Marin will lead the new management team at Generali Romania. He has held various positions at Generali Insurance. He was deputy managing director before becoming CEO of the newly formed insurer.

Ovidiu Posirca