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TO UPDATE. Allianz Țiriac confirmed, through a press release, that he slapped Gothaer.
“Allianz-Ţiriac Asigurări and the Gothaer Group announce the signing of an agreement to acquire Gothaer Asigurări Reasigurări, this being the first acquisition of an insurance company by Allianz-Ţiriac after more than 25 years of organic growth.
The completion of the transaction is conditioned by the receipt of the approvals of the Financial Supervisory Authority and the Competition Council.
At the end of 2019, Gothaer Asigurări Reasigurări’s portfolio amounted to gross written premiums of 90 million lei and 50,000 individual and business insurance contracts.
Allianz-Țiriac Asigurări and Gothaer Asigurări Reasigurări will continue to operate independently until they receive all necessary approvals. Once the acquisition is complete, Allianz-Țiriac will integrate Gothaer Asigurări Reasigurări into its business, assuming control of the portfolio and employees, “the announcement shows.
Negotiations between the two companies also existed in 2018, but then they did not agree on the price. At the moment, Deputy Director Traian Angheluță remains in charge of Gothaer, who, according to our sources, has also been proposed to be part of the future board.
The first discussions about such a transaction date back to 2017. At the beginning of 2018, the two German companies were very close to applauding, since the price offered by Allianz at the time (about 12 million euros, according to some sources) was not being to Gothaer’s taste.
Gothaer, Germany’s oldest insurance company, entered the Romanian market in 2012, taking over the Platinum company, founded by Constantin Toma, one of the legendary leaders in insurance in Romania and former president of Omniasig.
After six years in which, despite an impeccable reputation and innovative product portfolio, it “stalled” somewhere between the bottom and the middle of the Romanian sales rankings, the group made the decision in 2018 to pass to a “controlled withdrawal”. Although he later returned announcing a new development plan, it became clear that Gothaer only needed time to “fix” the damage (leak, in technical terms) that he still had to pay for and find a buyer to allow him to exit the market according to the Solvency II rule.
Gothaer’s decision was also accelerated by a complicated lawsuit, with an American investor, who won in court the payment of an award of 4 million euros and who had demanded dozens of times more in compensation. That process, which provoked reactions even in the sphere of several foreign embassies (the businessman being an investor with noble relationships and inclinations) hastened, say sources from various areas, the decision of the Germans. In fact, after the scandal with the American investor, the former CEO of the company Anca Băbăneață was dismissed, not without conflicts. The latest data, from 2019, showed that Gotaher subscriptions decreased by 42%, to just over 90 million lei.
Details on that complicated process, the sweets in the Gothaer Romania cage, can be found HERE.
Allianz Țiriac, on the other hand, is one of the largest and most profitable insurance companies in Romania. As of nine months 2020, the company reported subscriptions of more than 1 billion lei and a profit of 124 million lei, 25% more than in the same period last year.
The news is updated
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