Loading ...The losses insurers are posting will become unsustainable as shareholders will no longer be
able to pump tens of million euros to cover them and small firms are likely to experience the biggest problems, the Ziarul financiar informs quoting Generali’s new CEO Marie Kovarova as saying.
able to pump tens of million euros to cover them and small firms are likely to experience the biggest problems, the Ziarul financiar informs quoting Generali’s new CEO Marie Kovarova as saying.
The financial crisis will put pressure on insurance companies to make profit because shareholders will no longer be able to pump money in, as before, Generali official stressed adding that the insurance market registered net losses worth 76 million euros, and companies’ shareholders have brought tens of million euros from home to increase the capital, without exactly knowing when they can recoup the money.
“I believe the insurance market will step into the black by 2010. Had it not been for this financial crisis, it would have probably taken more for this to happen,” Kovarova added. Before coming to Romania, Kovarova, 36, Czech-born, was chief operating officer with the Ceska Pojistovna, the biggest company part of Generali PPF group, and of Generali in the Czech Republic. She has replaced Tudor Moldovan, who now coordinates Generali PPF’s development projects in CEE.
The new CEO plans to keep the company profitable and expand its operations in retail and countrywide, as its turnover is now largely generated by Bucharest-Ilfov area and corporate deals.
“We further focus on profit, because this is the only way to survive on the market. Also, we want a more balanced portfolio, meaning higher geographical diversification and a stronger focus on retail. For this, we must enhance our territorial visibility and strengthen our presence in the media, because this is how you get retail customers,” Kovarova says.
“We further focus on profit, because this is the only way to survive on the market. Also, we want a more balanced portfolio, meaning higher geographical diversification and a stronger focus on retail. For this, we must enhance our territorial visibility and strengthen our presence in the media, because this is how you get retail customers,” Kovarova says.
In late September, Generali’s gross underwritten premiums hit 318.9 million RON (over 87.6 million euros), with around 73% of these coming from Bucharest, the Ziarul financiar reads on.
Kovarova says Romania is a strategic location for Generali PPF holding owing to the size of the country and its considerable growth potential. Beside Generali Asigurari, the holding also owns insurers such as Ardaf and RAI, at home, which took over from PPF Investment for around 80 million euros, and the three insurers will seek synergies in their activities, probably using the same IT platform, but this does not mean they will sell the same products and operate the same prices, the Ziarul Financiar concluded.
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