The biggest insurance merger was approved by shareholders: BCR Insurance increases its share capital and takes over OMNIASIG's name

6 March 2012 — Andreea IONETE
The biggest insurance merger was approved by shareholders: BCR Insurance increases its share capital and takes over OMNIASIG's name
omniasig150The shareholders of BCR Insurance decided during the Extraordinary General Meeting the increase of the social capital by RON 207.1 million (EUR 47.7 million), thus reaching a total of RON 250.3 million, as a result of the merging process with OMNIASIG. Also, they decided on taking up the name and logo of OMNIASIG after the process ends in April.

The increase of the capital will be achieved through the issuance of 59.163.667 new shares, with a nominal value of RON 3.5 each, which will be given to the OMNIASIG shareholders, company which, after the approval of the merger by ISC (Insurance Supervisory Commission) and the registration at The National Trade Register Office, will be dissolved without dissolution.

Before this, BCR Insurance reduced its social capital by RON 80.2 million, to RON 43.19 million, in order to cover the losses registered after the merger. Although the company ended the year with a RON 1.2 million profit, the losses registered by BCR Insurance in 2008-2009 exceeded RON 60 million.

Announced by VIENNA Insurance Group in 2011, the merger between BCR Insurance and OMNIASIG will be complete this year. OMNIASIG will be absorbed by BCR Insurance in order to increase the efficiency of VIG's operations in Romania, and also in order to create the number 1 company on the market, with business over RON 1.4 billion and a market share of 17.9%.

The shareholders decided to keep the higher notoriety brand, thus the company resulting after the merger will take up the OMNIASIG name.

The consolidation of its market position and the improvement of its operations are the reasons behind VIG's decision of merging the two companies. The Austrian group, which also owns in Romania BCR Life Insurance and ASIROM, has so far maintained and promoted the same multi-brand policy applied in all the other regional markets on which it operates.

"The two companies work in the same domain, non-life insurance, and the purpose of the merging process is the consolidation of the market position and the increase of the activity's efficiency. Taking into account the current economic context, an integrated management system will mean the improvement of the financial performance", is written in the merger plan.

In 2010, OMNIASIG held the 3rd place on the Romanian non-life insurance market, with a RON 916 million business, decreasing by 17% compared to 2009, and with a market share of 11%. BCR Insurance VIG was placed the 5th in the same classification, with a market share of 6.3% and underwritings of over RON 522 million (approximately EUR 125 mil.), decreasing by 9% compared to 2009.

Hence, the two companies sum up a business of RON 1.44 billion in 2010, with RON 300 million more than the current leader of the Romanian insurance market, ASTRA Insurance, which ended 2010 with underwritings of RON 1.1 billion.

3104 views