Large European insurer Groupama takes over OTP insurance

  • French company Groupama operates in 11 markets with 11.5 million customers, and records EUR 14.4 billion of revenue from premiums
  • In Croatia, they will operate under the name Groupama osiguranje and offer a range of products from the life and non-life insurance segment.
  • The takeover is the result of a long-term strategic partnership between Groupama and the OTP Group

The new international insurer will start operating on the Croatian market once the Groupama group oobtains the regulatory approval of the Croatian Financial Services Supervisory Agency (CFSSA) for taking over OTP Osiguranje. It is a significant European insurer with more than a century long business tradition in France, as well as strong positions in markets across Europe, Africa and Asia. In 2020, the group generated EUR 14.4 billion of revenue from premiums and EUR 306 million of operating profit. It employs 31,000 people and has more than 11.5 million customers to whom it provides services relating to life and non-life insurance.

In line with its strategy to expand to Central and Eastern European market, Groupama has taken over OTP Insurance from OTP Group's long-term partner. The acquisition of the Croatian insurer represents a continuation of the successful cooperation of the mentioned groups in expanding the offer of insurance services in the markets where OTP banka is present, which will further expand the portfolio of products from the banking insurance segment. The strategic alliance of OTP and Groupama was concluded in 2008 and today Groupama holds a significant ownership stake in OTP banka, which makes it an important institutional investor in the largest independent bank in Central and Eastern Europe.

In its operations, Groupama osiguranje will rely on a wide range of expertise, high standards and the financial strength of the parent company, with an emphasis on innovative products tailored to the needs of Croatian clients and market. In the upcoming period, the Groupama will offer a range of quality products from the banking insurance segment and expand to life and non-life insurance through traditional and digital sales channels. Groupama osiguranje will be in the ownership of the Hungarian group member “Groupama Biztosító”, and the Croatian company will be managed by Sanel Volarić, president of the Board and Monika Brzović, member.

"We are proud of the fact that relying on the strong connection and a strategic partnership with OTP banka, we are starting to operate in the Croatian market. We believe that an important international insurer such as Groupama will contribute to the further development of the insurance market, as well as to the overall positive economic trends. In addition, we are confident that the Croatian team with the strong support of the group will continue to implement our successful business model ", said Bertrand Woirhaye, future Chairman of the Supervisory Board of Groupama Insurance and CEO of the Hungarian group member “Groupama Biztosító”.

"By taking over OTP osiguranje, which has so far focused on life insurance in the banking insurance segment, Groupama will offer the bank's clients and the market a range of appealing products from the life and non-life insurance segment. The basic goal of Groupama osiguranje will be to ensure a successful business development by relying on the strength and resources of the group while respecting the peculiarities of the domestic market. I believe that the market itself is also benefiting, given that Croatia is gaining a new and competitive international player, at the right time: at a time of economic recovery and the changeover to the euro, " said Sanel Volarić, CEO of Groupama osiguranje adding that in operational terms it wouldn’t change anatyhing for almost 60,000 existing clients of OTP osiguranje. "Our clients will retain all rights under the existing policies, and at the same time they will be able to take advantage of a number of new products and services." Volarić concluded.