Certinvest, with assets worth 250 million lei under management, reportedly filed the necessary documents for the takeover of AXA Asigurari with the financial watchdog ASF. If the deal is okayed, Certinvest would become the first fund manager to expand on the insurance market, a field dominated by foreign financial groups.
The move would be the more surprising as Certinvest was acquired in 2007 by Britain’s insurance group Aviva and operated for three years, until 2010, under Aviva’s wing. In 2010, Eugen Voicu, Certinvest’s founder, repurchased the company from Aviva, which withdrew from the local market, and became its main shareholder with 95% in its stock.
AXA Asigurari ended 2013 with underwritten premiums worth RON34 million and assets of RON151 million. French AXA planned to exit the local market though it had been present here for only four years, and even reached a sales agreement with Astra, the company owned by businessman Dan Adamescu. However, the deal was cancelled because of Astra’s problems. Astra is now under special administration.
Contacted by ZF, Eugen Boicu chose not to comment on the information regarding his interest in the insurer. AXA representatives could not be contacted by edition close.
Asked whether he’s interested in expanding on the insurance market, Certinvest founder said: “Our strategy for the next three years envisages expansion on the market of insurance and private pensions”.
The company is reportedly also in talks to acquire a private pension fund, according to the same sources. For three years, from 2007 to 2010, when the fund manager was part of Aviva, Certinvest managers got involved in Aviva’s pension and insurance management businesses.
In September 2012, Viva private pension fund, managed by Aviva Pensii, was sold to Alico. Now, the mandatory private pension fund managed by Alico is the third largest such fund, with assets worth RON2.5 billion.
The same year, Aviva also sold its life insurance unit, to MetLife.
Certinvest ended 2013 with total revenue worth RON5.5 million, up 10% on the year, and net profit of RON270,000, double the 2012 level.
AXA entered the local market in 2010 after buying the life unit of Omniasig, for which it paid less than EUR10 million. The French company invested around EUR40 million overall in the promotion and development of the distribution network and initially had big plans, wanting to climb among the top five life insurers in three year.
However, it managed to reach a total number of just 40,000 clients. The insurance company ended 2013 with losses of RON46 million, from losses of RON44 million in the previous year.
Since 2010, when Certinvest went back into its founder’s hands, total assets under management increased 2.6 times to RON250 million. Starting 2010, the manager shifted from mass products toward the niche of products destined to wealthy clinets.
Certinvest launched the first art fund, Certinvest Arta Romaneasca, which raised EUR2 million from investors. The company also manages a fund with placements in green energy projects.
(English version by Catalina Apostoiu)