September 5, 2011
CIG Pannonia Life Insurance on the road of further changes in business model strategy – the company’s profitable operations in focus
According the decisions made by the Board of Directors today the company decided to change the operations model of its Romanian subsidiary. In future the Hungarian insurance company’s sales activity in Romania will be conducted via cross boarder activity.
Since the company’s foundation the Board of Directors aimed at entering life insurance markets of neighboring countries: after the launch in Hungary in May 2008 the company entered Romania in May 2009 and the Slovakian life insurance market in September 2010. The result of the international activity shows a 7,8 % stake in the new business of the first half of 2011. Operations of Romania was lead by a branch office seated in Bucharest, while in Slovakia the company was present only via cross border activity.
Keeping in mind the secure and prudent operation and the increase of shareholder value, the Board of Directors made a decision in the near past about taking a range of measures, under which the quality of service and security of operation improves while the operational costs decrease considerably. In this, the Board assessed international sales experiences, analyzed the two different models and decided the amendment of the Romanian strategy to take over the Slovakian cross border business model.
CIG Pannonia Life Insurance does not exit the Romanian life insurance market, it aims to be a stable and innovative player of the Romanian life insurance market. The development and automation of business support functions in the Budapest headquarters will gain more emphasis, the further improvement of central administration will greatly contribute to sales goals and support the Romanian sales activity. “With the changes in our central and local operations we will be able to focus more on product development, broker and client service, and in general do business developments parallel with remarkable gain on cost efficiency!” – commented Mr. Csaba Gaál, CEO.
With the entry of PALLADIUM (local company of BROKERNET Group, the company’s strategic partner) to the Romanian life insurance brokerage market in 2011 summer, CIG plans to gain importance on the Romanian life insurance new business. “Our goal is to keep client service at maximum level and to introduce the latest innovations and features of the company’s products to the Romanian life insurance market: unique investment and bonus opportunities will be available for our clients.” – said Mr. Sándor Csepeli, CEO of CIG Romania.
Further information:
CIG Pannonia Life Insurance Plc.
Benedek Sándor
director, investor relations and communications
E: investor.relations@cig.eu , kommunikacio@cig.eu
T: +36 1 437 6652