KD invests €10 mln in mandatory pensions
Slovenian-based group KD, which is present in Romania with investment management, life insurance and brokerage companies, is preparing to enter the mandatory pensions market, according to Ziarul Financiar.
On Tuesday, the group submitted its proposal to the Private Pension Supervision Commission (CSSPP) to form a company to manage second pillar pension funds, with a €10 million ($13.4 million) investment earmarked for the new company, explained Ian Harrocks, general manager of the group’s insurance company, KD Life. “There are companies on the market that decided against the management of private pensions. We thought long and hard whether to enter this market or not, as the legislation on private pensions was very unclear,” stated Ian Harrocks, who explained why the company initiated formalities for managing mandatory pensions just one month before the start of the system, which is scheduled for September 17.
The current deputy manager of KD Life, Carmen Radu, will run the new pension company. Harrocks estimates the number of clients who sign mandatory pension contracts with the company will reach 100,000 by yearend. “The pension company’s capital could be increased to €15 million ($20 million) next year. Within 5-6 years, the company will be able to step into the black, and the initial investment will be recouped in about 8 years,” believes the manager of KD Life. Out of the €10 million earmarked for investments in the pension company, €2 million will be allocated for an advertising campaign. At the beginning of next year, KD Life will submit to the CSSPP its proposal to secure a manager licence for voluntary pensions (the third pillar). “I think voluntary pensions are more important than mandatory ones for clients. In terms of profitability, in comparison, I believe that the voluntary pension business will become profitable at a faster rate, but this largely depends on sales volumes,” says Harrocks. (zf.ro)
ADVERTISEMENT
Continental Dohányipari Revenue Nears HUF 64 bln in 2022
Parl't Approves Amendments to Legislation on Judiciary
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
