The search for new business opportunities
A certain number of milestones have already been crossed by the mutual insurance companies in the Group. Covéa is established in particular in Spain (Caser), in the United Kingdom (MMA Insurance, Swinton, etc.), in the United States (CSE - Civil Service Employees Insurance Group) as well as in Luxembourg, Canada, etc.
In order to increase this share, Covéa is studying the possibility of making investments and setting up partnerships outside France.
This strategy replies to 3 issues:
- with nearly 20% of the private individual market in car and property insurance, the potential for external growth is now limited in France;
- the implementation of the so-called Solvency II rules, reinforcing the solvency requirements in the insurance sector, must be anticipated, forcing each company to seek solutions in terms of risk diversification; geographical diversification is one;
- finally, co-operations designed to optimise costs and improve services for members can be extended overseas, particularly in the fields of reinsurance, asset management, etc.
Preference is given to the development of partnerships with groups which share the values of Covéa in a spirit of common reinforcement.
Acquisition projects are also under study. They focus on companies involved in countries and business activities that the Group is capable of controlling.
In 2010, the turnover of all foreign subsidiaries and companies in which we hold an equity stake totalled 420 million euros, over 3% of Covéa Group's consolidated turnover.
This performance was posted by subsidiaries in the United States and the United Kingdom.
Two acquisitions illustrate the company's growth objectives in mature markets outside France : Provident Insurance in the United Kingdom and the Banca Popolare di Milano insurance company in Italy, in the second quarter of 2011. In 2011, Covéa's earned premium income worldwide will increase by a factor of three.
Covéa is also a member of Eurapco. |
