Ernst Jansen, Vice Chairman of the Executive Board of EUREKO NV
Mr. Jansen, you are one of the highest-ranking managers of the European Insurance Group EUREKO, owner of the Bulgarian Insurance Company ‘Interamerican Bulgaria’. A manager of such rank does not visit Bulgaria that often. What is the purpose of your visit?
- Bulgaria demonstrates significant development and that’s why I try to visit it at least twice a year. Of course, I also meet the managing body of ‘Interamerican Bulgaria’ abroad on regular terms. We keep in touch by telephone, too. We think that in Sofia the managing body should manage the local business. Insurance is in its essence a local business – you have to be acquainted with the culture, the mentality and the way of thinking of the local people. Even if things are getting on well in certain country, it wouldn’t mean that they would do so on another market. But at the same time, it is far better to learn from someone else’s mistakes than from your own. I am here to meet the managing board of ‘Interamerican Bulgaria’ and to find out to what extent the company has made progress and also to discuss our future plans.
Are you satisfied with the results achieved up till now?
- Yes, we are encouraged by the company’s start. Yet, ‘Interamerican Bulgaria’ is an early-stage company on that market. It is, however, part of an important and serious group which is more experienced. We believe in the future of the Bulgarian market and therefore we will make investments here. We plan to develop our current business and to widen its scope in the future.
May we make a short presentation of EUREKO to our readers? To the best of my knowledge, you’re amongst the top 10 European insurance companies and have representative companies in ca 10 countries.
Yes, it’s true. EUREKO owns companies bearing the name of ‘Interamerican’ in Bulgaria, Romania and Greece. In Ireland we work under the trade name Friends First, in the Netherlands – under Achmea, in Cyprus – we are called InterLife, in Slovakia - UNION and in Poland – PZU. We are a growing and ambitious financial group.
I think that if we consider EUREKO as an alliance, including our share-holders in France, Portugal, the Great Britain, Germany and Switzerland, would we then rank amongst the seven largest insurers. EUREKO BV is a leading insurance company on the Dutch market, being bigger even than ING after the merge with Interpolis. We lead also on the Polish market and in Ireland we rank fifth on the life-insurance market. In Greece we are first in that branch and forth in the general insurance. On the rest of the markets our positions are quite weaker. Our strategy aims that allied companies be drawn together simultaneously with Europe’s unification. On these markets we aim merging, while on new markets our main goal is acquisition. The reason for this is that we can see a sharp contrast between West European markets, on the one hand, which are mature and consolidated but lack potential for development, and the big opportunities for development on the new markets on the other hand.
Some of the biggest companies have representative companies here – QBE have chosen to establish an office in our country, AIG is represented by a company that works only with cooperative clients, Alianz is also represented, but they have directed their attention both to the cooperative and to the common client. What is your concept for Interamerican – Bulgaria?
- We think that Bulgarian market will undergo rapid growth in the next years but that process will be largely dependent on people’s living standard. Insurance does not direct that tendency but follows it. We expect that Bulgaria will benefit a lot from its EU membership (as well as Poland, Slovakia and Romania). Great opportunities will appear and if one visits the country now and then, one would see a great deal more of these opportunities than those who actually live here. Every time I come in Bulgaria I see new activities taking place, which makes me feel very optimistic. Presently, the insurance market here goes through certain difficulties due to lack of discipline. A market of mandatory insurance, for example, should normally be profitable but here I can see things typical of a new and developing market, which is apparently the case with your market. In insurance one needs to make long-term predictions and have stable financial positions. And what is needed in terms of European markets is an international presence. Only companies like ours, having serious financial positions and being able to afford long-term development, will still be here in 10 years. This is how we regard the market. In the next few years we will for sure invest considerable amounts in the development of our company. And as might be expected, we will be conservative about execution of contracts, because we are insurers and not cowboys.
Are you interested in merging the insurance company operating currently in our country whereby strengthening fast and notably your presence on the market?
- We follow with close attention the development of your insurance business because the Bulgarian market is of high priority for us and we are very interested in it. But for the time being I cannot
say anything more specific.
Do you plan to establish new companies that would deal with life-insurance or with health or retirement insurance?
- It is logical for us to have own companies that offer life and health insurance services since in most countries we are leading insurers in these spheres. We have requested that the local managing body suggest possible scenarios for development in these directions.
Are you acquainted with the fact that ING plans to register its own insurance company in Bulgaria?
- Yes, I heard about that.
You are a strong competitor on the markets you work on …
We are a formidable competitor to the ING on the Dutch market. Having merged with Interpolis, we are larger that ING now which means that we can compete with them. But ING consists of highly-skilled professionals and I am sure that if they have taken up something, they would handle it seriously and professionally. It is of great significance that they share our opinion regarding the importance of the Bulgarian market in the future because they, too, have wide experience in Europe.
Can you tell us more about your attitude towards and your expectations as to the market share of your company?
- I prefer to talk about us putting forth efforts to make the company the best and strongest rather about the expected market share; it will be the clients that would make the final decision. In this connection, I want to point out that clients are going to hear more and more about us, as I consider it important that the public should understand that Interamerican is a part of EUREKO and has serious ambitions of development.
As you mentioned the company’s name and your plans of popularizing it, I’d like to ask you if you have considered changing the brand name. It doesn’t ring a bell to the Bulgarian consumer or, for those who have heard of it, it has association with the Greek market.
We do not think of changing the brand name, we’d rather change that concept. Our aim is to explain to the clients that Interamerican is a brand under which we work on three different markets with long-term perspectives. It would be more beneficial to us if we maintain the brand name and that’s why from now on we will work on its popularization.
Almost all of the large insurers in Bulgaria have a bank in their group or at least are in partnership with one. Does EUREKO have a partner bank here?
- At this stage we have not yet found a partner bank in Bulgaria.
