Zedelius: I’m very pleased that we’ve been able to further improve our already strong position. We haven’t taken a rest but have consistently worked on finding growth potential and converting it into profitable business.
This is especially the case in life insurance and asset management, and we see particularly good opportunities for growth here in the future too. A regional group’s strength is not defined by growth in turnover alone, however. The after-tax result is the main indicator for sustained success.
Our customers can rely on Allianz in Central and Eastern Europe. We have very sound balance sheet structures, and our local managers know what really matters. In the long run, it’s only through financial strength that you gain your customers’ trust.
"We continue to improve our market leadership in CEEMA"
Board member Werner Zedelius comments on Allianz's mid-year results in Central and Eastern Europe Markets (CEEMA). He sees particularly good opportunities for growth in life insurance and asset management. An interview with Allianz.com News.
Allianz board member Werner Zedelius
Allianz.com News: Another successful half-year for Allianz in Central and Eastern Europe. Premium growth stood at 17 percent, and the after-tax result of 135 million euros was a whopping 56 percent up on the first half of 2004. How was this result achieved?
? Can you give some examples of Allianz’s activities in the region?
Zedelius: In autumn 2004, together with our Russian partner, Sistema, we set up Allianz Rosno Life and Allianz Rosno Asset Management in Russia. The life market in Russia is growing exponentially. In the first half-year, we built up a team of 700 life specialists who have been specially trained to Allianz standards to give advice on and sell life insurance policies.
In the same period, our asset management company became one of the top ten asset managers in Russia, with 450 million US dollars of assets under management. This is a remarkable achievement for a company that was only set up in autumn 2004. In Slovakia, at the beginning of 2005 we started a new pension fund, the Allianz Slovenska DSS. Six months on, the fund already has 242,000 members and is among the market leaders, with a market share of 26 percent.
In the same period, our asset management company became one of the top ten asset managers in Russia, with 450 million US dollars of assets under management. This is a remarkable achievement for a company that was only set up in autumn 2004. In Slovakia, at the beginning of 2005 we started a new pension fund, the Allianz Slovenska DSS. Six months on, the fund already has 242,000 members and is among the market leaders, with a market share of 26 percent.
Zedelius: "The further optimization of processes and products is important"
? Does this mean that you’re expanding business mainly by setting up new companies?
Zedelius: To some extent, but not exclusively. The further optimization of processes and products and our customer service also plays an important part. Here too, we are seeing pleasing results. Take Hungary, for example. There at the start of the motor renewal season in autumn 2004 we introduced a new tariff system that is more closely related to individual risk profiles. Many customers will benefit from more equitable and favorable premiums.
We also speeded up claims settlement, offered new assistance products and improved the information given to customers via the Internet and call centers. As a result, by the end of March alone, we managed to increase the number of motor policies by 30,000, further improving our traditional position of market leader in a market that new competitors are entering with each successive year.
We also speeded up claims settlement, offered new assistance products and improved the information given to customers via the Internet and call centers. As a result, by the end of March alone, we managed to increase the number of motor policies by 30,000, further improving our traditional position of market leader in a market that new competitors are entering with each successive year.
? Are you going only for internal growth, or are you planning further acquisitions?
Zedelius: We have no concrete plans regarding the latter. Our position in Central and Eastern Europe is currently very strong and we’re not under any pressure to make acquisitions. If any interesting opportunities arise, we’ll certainly consider them – under one condition: we’re not looking for premium growth alone. Any acquisition would have to be profitable.
? Along with China and India, Russia is one of Allianz’s key growth markets. How are you getting on there?
Zedelius: Better than planned. In the first half-year, Rosno recorded premium volume of around 242 million euros - a 52 percent increase on the first half of 2004! Rosno is one of our fast-growing units in Central and Eastern Europe, and together with our joint-venture partner Sistema we will further step up our activities, especially in life insurance and asset management.
? Has the Ukraine become more attractive in recent months as a result of political changes?
Zedelius: We see great potential for growth in the Ukraine and have already been observing this market for some time. The political, institutional and legal systems have stabilized, and the country has certainly been enjoying positive economic development for some time. In view of the new government's planned pension reforms, we see opportunities for sustained, profitable growth, particularly in the area of life insurance and pension funds.
Our Russian joint venture Rosno has already acquired licenses to operate in the Ukraine. Subject to final approval of the regulatory authorities, which we expect in the coming weeks, we will soon offer property and life insurance to our clients in the Ukraine.
Our Russian joint venture Rosno has already acquired licenses to operate in the Ukraine. Subject to final approval of the regulatory authorities, which we expect in the coming weeks, we will soon offer property and life insurance to our clients in the Ukraine.
? Finally, a look back. Well over a year ago now, four of the countries of Central and Eastern Europe in which Allianz operates joined the EU. Has this had any effect on business?
Zedelius: Indirectly, this ought to have an impact on our business, as membership ought to increase growth in these countries and thus also demand for insurance.
However, I see hardly any direct effects. We pursue a strategy of entering markets early on and we were therefore operating in Poland, Slovakia, the Czech Republic and Hungary long before they joined the EU. Our commitment in and to these countries was not affected by the EU-accession in 2004. This also holds for Romania and Bulgaria, whose entry to the EU is scheduled for 2007. In these countries too, EU membership will make little change to our business, as we are already the market leader in both countries.
As with all content published on this site, these statements are subject to our Forward Looking Statement disclaimer, provided on the right.
However, I see hardly any direct effects. We pursue a strategy of entering markets early on and we were therefore operating in Poland, Slovakia, the Czech Republic and Hungary long before they joined the EU. Our commitment in and to these countries was not affected by the EU-accession in 2004. This also holds for Romania and Bulgaria, whose entry to the EU is scheduled for 2007. In these countries too, EU membership will make little change to our business, as we are already the market leader in both countries.
As with all content published on this site, these statements are subject to our Forward Looking Statement disclaimer, provided on the right.
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