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Groupama completes acquisition of 35% stake in Tunisian insurer Star
Source: BI-ME , Author: Moussa Ahmad
Posted: Sun October 19, 2008 12:00 am
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TUNISIA. Groupama has completed a €72 million transaction giving it 35% of the capital and voting rights of Société Tunisienne d’Assurances et de Réassurances (Star).

“We are proud and happy to have been selected as Star’s strategic partner and plan to participate actively in developing the company’s business as well as the Tunisian insurance market,” said Jean Azéma, Groupama’s Chief Executive Officer.

Star is Tunisia's leading insurance company, ranked number one in the property and casualty segment with 29% of the market and number nine in the life segment, with a 5% market share. In 2007, the company reported revenue of €121.3 million and net profit of €3.4 million, with 660 employees. It has the country’s largest distribution network, comprising 11 branches, 146 agents and 16 non-exclusive brokers.

Star is a major player in a €458 million market that has been growing by around 10% a year since 1995 and should continue to expand at a similar rate over the next  15 years. The insurance industry’s penetration rate, measured as a percentage of GDP, is 1.95%.

“We plan to make this partnership a robust and profitable link in our expanding Mediterranean and international network,” commented Jean-François Lemoux, Managing Director of Groupama International. “The strategic venture will enable us to participate actively in the growth of a high potential market by giving Star the benefit of our expertise which has already been successfully deployed in 12 countries, mainly in Europe.”

Groupama is France’s leading mutual insurance company. In 2007, it reported revenue of €14.9 billion and net profit of €938 million, with 37,500 employees worldwide. Some 30% of revenue is generated in international markets, where the company sustains its growth dynamic by investing in distribution, leveraging its expertise along with all available cross-border synergies and actively pursuing its acquisition strategy.

Backed by Groupama’s 100 years of experience, Tunisia's largest insurer will be a leading player capable of expanding in all promising segments of the Tunisian insurance market.

Groupama will share with Star its high-level expertise in bancassurance, its proven track record in teaming up with public sector enterprises and its know-how in such areas as marketing innovation, distribution network management and Customer Relationship Management, as well as in life and health insurance and in agricultural insurance.

Speaking on behalf of the Tunisian government, Rachid Kechiche, Finance Minister, has said that the strategic partnership is essential to give Star the scale needed to compete effectively in the insurance market of the future and as such, it must be successful.

"We’ve received the message loud and clear and are fully aware of our responsibilities as a participant in this ambitious programme,” concluded Jean Azéma.

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