AXA announced today the acquisition of Omniasig Life. With this operation, AXA enters the Romanian Life insurance market, in line with its objective of accelerating the development of its activities in the emerging countries, notably in Central and Eastern Europe.
After the buyout of the minority interests of its Hungarian, Czech and Polish subsidiaries held by the EBRD in December 2009, the acquisition of Omniasig Life represents for AXA an excellent opportunity for its development in a high growth potential market of Central and Eastern Europe.
The Romanian market, with its low life insurance penetration rate1 compared to the rest of the European Union (0.4%2, with a life insurance market of ca. Euro 0.5 billion in 2008), offers to AXA an important growth potential.
Created in 1997, Omniasig Life sells protection products, representing premiums of Euro 12 million in 2008, through a network of ca. 1,400 agents (o/w a quarter is proprietary channel).
The closing of this operation is subject amongst others to regulatory approval and is expected to take place during the 1st half-year of 2010.
Note:
1 Premiums / GDP.
2 Western Europe: 5.25% and Central & Eastern Europe: 0.74% (source: Swiss Re, sigma No3/2009).
