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Groupama takes Hungary’s OTP insurance business

OTP Bank Nyrt and French insurance company Groupama S.A. agreed yesterday on an exclusive long term regional partnership covering the distribution of life insurance, non-life insurance and banking products, writes Groupama’s website.

Groupama agreed to purchase from OTP Bank 100% of OTP Garancia Zrt, together with its wholly-owned insurance subsidiaries in Bulgaria, Romania and Slovakia. As part of its commitment to a regional partnership with OTP Bank, Groupama also pledged to acquire up to 8% of the existing shares of OTP Bank. The Ft 164 billion purchase price of Garancia will serve the further expansion of OTP, said president-CEO Sándor Csányi at the press conference jointly held with Groupama CEO Jean Azéma. “The CEE and CIS regions are attractive markets for Groupama, which views this transaction as a unique opportunity to enhance its presence in this promising region. The increasing prosperity as countries join the EU or converge to EU levels as well as a relative under-penetration of insurance products in countries with large populations are significant future growth catalysts for the region,” said Azéma, adding that the company aims to reach a 5% market share and about €1 billion worth fee revenues a year in the region by 2016. (Napi Gazdaság, Gazdasági Rádió)