Allianz Is Confident About The Egyptian Market: Udo Krüger
Published Saturday, 12 May 2012 13:08 | Written by Sherine Taha
Allianz Insurance Egypt targets to expand in the Egyptian insurance market through getting license to conduct takaful insurance operations and form a holding company encompassing Allianz Insurance (Life), Allianz Insurance (Property) and a new Allianz Takaful Insurance.
Udo Krüger, chairman of Allianz Insurance Egypt and CEO of Allianz insurance (Life), said "We'll be seizing the chances in the Egyptian market". Those were his first words to Egyptian press after being chairman following Raymond Cham.
Krüger said the political transitions and the ideological changes in Egypt and some of the Arab countries were of the main reasons that made Allianz considers offering takaful insurance services.
How do you outlay Allianz’s business worldwide?
Allianz Group serves approximately 78 million customers in more than 70 countries with approximately 142,000 employees worldwide. It is the 20th largest company by revenues in the world. The Group is also in advanced ranks in market value and a leading company in credit insurance sector. Allianz Group provides accident, property and life insurance services, banking products and services and asset management services.
When did you enter the Egyptian market?
Allianz Insurance life and property companies substituted Arab International Insurance Company (AAIC) that was established in 1976, being the first private insurance joint venture. In 2000, Allianz increased its share to 80%, giving it the right for management.
In 2001, Arab International Insurance Company, subsidiary of Allianz, extended its work from only free zones to work across Egypt and launched commercial and personal insurance products. Arab International Insurance (Life) was established in 2001. AAIC in Egypt was renamed as Allianz Egypt.
What is the Group’s strategy in Egypt?
Allianz targets reaching an advanced position in the Egyptian market through our technicians, professionals and experts who work on meeting market requirements.
Allianz has 13 branches and 15 offices in Cairo, Alexandria, Port Said, Assiut, Mansoura and Hurghada. The company is working on restructuring branches and its responsibilities to meet the customers’ requirements.
What are the implications of last year’s revolution on the Company?
The turmoil that followed 25th revolution has affected negatively Egypt’s economy, companies and individuals. 30% of insurance coverage cases were cancelled and insurance companies incurred many claims because of the security lax, especially that Allianz offers insurance coverage with conditions suitable to the revolution’s repercussions.What are the main features of the company’s expansion plan?
Allianz intends providing Takaful services (Islamic insurance). The company will either file an application to Egyptian Financial supervisory Authority demanding a license to offer Takaful services and that will take 6 months, or choose from the existing companies after studying their portfolios and balance sheets. I expect the decision about this matter will be after three months at most.
In addition, the Company is studying restructuring its training center to comply with international standards to train its employees and employees from other insurance companies in Egypt.
Allianz also plans to form a holding company encompassing Allianz Insurance (Life), Allianz Insurance (Property) and Allianz Takaful Insurance to be in line with the conditions set by Egyptian Financial Supervisory Authority. The Company’s headquarters will be moved by next year.
What are the incentives that drive the Company to enter the Takaful market?
Allianz has international experiences in Takaful services. The Company decided to enter the market because of the recent political changes as Islamists surge to power in the Parliament. In addition, family takaful insurance companies exited the Egyptian market and that made Allianz encouraged to seize this chance.
I expect that takaful insurance will witness a high demand in Egypt.
What is the Company’s financial result for 2011?
Allianz insurance (life) was in the second rank, registering EGP 883.6 million in paid premiums in FY 2010/2011 with a market share of 22%, net profit of EGP 75.8 million, 276 employees, 438 agents and 276 bank insurance agents. Allianz insurance Egypt was ranked the fifth in Egypt with a market share of 4%, underwritten premiums of EGP 248.3 million in FY 2010/2011, net profit of EGP 5.3 million, 187 employees and 104 agents.
What is the volume of Bancassurance portfolio?
Bancassurance activities represent 60% of Allianz insurance life’s portfolio. Allianz is dealing with some banks to facilitate the process for customers including Arab Bank, Banque Misr, Banque Du Caire, Bank BNP Paribas, Credit Agricole Egypt, Pireaus Bank Egypt, NSGB and ABC.
When do you expect compulsory insurance policies to be issued again?
Allianz is currently studying resuming the issuance of compulsory insurance policies. This sector is expected to be fully restructured by June or July at most. After discovering selling fraud policies in the name of the Company, Allianz stopped issuing compulsory civil liability insurance policies of vehicle owners for damage caused as a result of a road traffic accident.
Allianz asked Egyptian Financial Supervisory Authority to stop issuing compulsory insurance policies till detecting the fraud policies.
Most Popular »
- First in Middle East, Cairo Chocolate Museum Rocks on March18
- Sawiris: Egypt’s Economy Needs US$60 bln to hit 5% Growth
- BREAKING: Egypt announces Minor Cabinet Reshuffle, sacks Police Minister
- Fire Blazes at Major Cairo Convention Centre; 16 Injuries Reported
- Barclays African Unit may buy Parent’s Zimbabwe, Egypt Banks