1.     History of  Generali Insurance

Generali is carrying 90% of its activity in Europe and is among the leaders of the life insurance sector. Generali is among the first three European insurers, having an AA rating according to the most prestigious financial valuation agency, Standard & Poor’s. The 85,000 employees currently service more than 70 million clients. Present in most European states, the Generali Group is a market leader in Italy and holds key-positions in Germany, France, Austria, Spain and Switzerland.

During the last couple of years, the Generali Group has looked with interest upon the Far East, convinced by the good development perspectives of this area. Thus, it started its activity in the Philippines, Thailand and penetrated the Chinese and the Indian markets. The Group has also consolidated its position in Latin America, where it has a prosperous presence.

  Generali Group’s history in Romania starts in 1835 with the establishment of the first branch, the largest Romanian commercial city of the time, Braila, and having essentially the object of activity, insurance of goods transported.
On 19 March 1897, also in Braila, and enjoying the Romanian capital, participation Marmorosch Blank & Co. Bank., a Joint Romanian Society of General Insurance was founded.. It did, right from the start, mainly due to its strong international links that transport policies issued for the first time to be agreed by banks and foreign institutions on the same footing with the big insurance companies in the West.
After two years of operation in Braila, the company moves its headquarters in Bucharest, and then change their names in general – the Romanian Society of General Insurance. The company witnessed a rapid development, so in 1935, General Insurance is the market leader in Romania, as shareholders in several insurance companies in the country, such as Dacia, Romania, Romanian Star, First Ardelean.
In 1948, due to the political, Generali group is forced to withdraw from the Eastern European market. In 1993, Generali is on the Romanian market again. Thus, society is set up General Insurance SA, the Italian-Romanian joint venture, shareholders are Assicurazioni Generali (51%) and four other Romanian companies, mainly aimed at the general insurance business. In 1999, Generali Holding Vienna takes majority stake, the company name became General Insurance.
Year 1993 marks the return on the market of company Generali Romania, the company provides, first, its customers (individuals and businesses) a range of general insurance such as fire insurance, theft and robbery, hull, liability, insurance business interruption, construction all risks insurance cover for all risks of installation, rental insurance, maritime and transport insurance, etc..

        Starting in 2001 with expanding the portfolio by the end of life insurance, Generali pay increased attention to individuals and corporate clients. In this respect, new products were launched in the life insurance category.
Regarding infrastructure, the spatial distribution network society Generali Insurance is currently composed of 84 agencies and outlets located in major cities in the country.
The high standard of service, professionalism demonstrated in the business world, balanced financial policy, coupled with prudent underwriting, has made a General Insurance company with national and international reputation. Its merits were recognized in 2000, when the Business Initiative Directions, an organization international consulting services and expertise in quality, got the International Award of excellence and quality „Arch of Europe”.

  In 2002 the same organization awarded its the prize – „International Platinum Star for Quality”. Since 2002 until now, Generali has made progress from year to year, each time situating himself in the top 10 insurers. At the end of 2006, the company underwrote gross written premium volume of almost 300 million, a result which placed 8th place in overall ranking of insurance companies.

  2. Company Market

THE FIVE MAJOR MARKETS:

1. 1.      Italy(since 1831)

• Leader in Life sector.
• 1st insurance provider, 17.3% market share
• More than 10 million clients.
• Premium income € 21.2 billion.
• 1st insurance provider for on line business in Life, Non-Life and private Pensions.

Recently

• 1994: launch of Genertel, the first online Non-Life insurance provider in Italy.
• 1998: creation of Banca Generali.
• 2000: acquisition of INA Assitalia.
• 2006: acquisition of Toro.
• 2009: merger of Toro and Alleanza and launch of GenertelLife, the first online Life insurance provider in Italy.

1. Germany (since 1837)

• 2nd insurance provider, 8.7% market share.
• Leading player in direct channel and main provider of “Riester” pension plans and unit-linked products.
• More than 13 million clients.
• Premium income € 16.8 billion.
• Multi-brand and multi-channel strategy based on three pillars: traditional distribution channels, DVAG financial advisors, COSMOS Direkt direct channel. 

  Recently

• 1998: acquisition of the AMB Group.
• 2009: establishment of the Generali Deutschland Holding for all operations in Germany; implementation of the merger between Generali Versicherungen and Volksfürsorge.

1. 3.      Spain (since 1834)

• Among the leading insurers with a 4.3% market share.
• More than 2 million clients.
• Premium income € 2.3 billion.

 Recently

• 1992: establishment of Generali España Holding as an equally owned JV with Banco Central Hispano.
• 1995: acquisition of full control of the Holding.
• 2004: creation of Cajamar Vida through a bancassurance agreement with Cajamar (900 agencies).
• 2009: creation of Generali España, start of the merger between Vitalicio and Estrella.

1. 4.      France (since 1832)

• 2nd insurance provider, 8.4% market share.
• More than 3 million clients.
• Premium income € 15.3 billion.
• Leader in online Life business; first insurer to test retail Non-Life channel.

Recently

• 1995: establishment of Generali France Holding.
• 2003: acquisition of Continent Holding.
• 2006: merger of the various companies (approximately 20) into 2 operating companies, Generali IARD and Generali Vie.

1. 5.      Central Eastern Europe (since 1832)

• More than 10 million clients.
• Premium income € 4 billion.
• Present in 14 countries.

Recently

• 1989: start-up of local expansion plan.
• 2008: creation of Generali PPF Holding, a JV combining insurance operations in CEE carried out by Generali and the global financial group PPF.

THE REST OF THE WORLD:

1. South America

• Operating in 7 countries: Argentina, Mexico, Brazil, Panama, Guatemala, Ecuador and Colombia.
• Solid presence dating back to 1925 when the first local agency opened, in Brazil.

Recently

• 1994: start of Generali Argentina.
• 1998: in Argentina, acquisition of controlling stake in La Caja, the leading market player.
• 1998: in Mexico, start-up of insurance product sales through the bancassurance channel.

  Asia

• Present in 9 Countries: China, India, Thailand, Philippines, Japan, United Arab Emirates, Hong Kong, Indonesia and Vietnam.
• A strategic area for the Group given low insurance penetration levels, high savings rates and strong economic outlook.

Recently

• 2002: in China, start-up of Life operations with China National Petroleum Corporation.
• 2005: in China, stipulation of a record-breaking pension plan covering 390,000 CNPC    employees.
• 2006: in China, expansion of operations into the Non-Life segment.
• 2007: in India, start-up of operations through a JV with Future Group.
• 2009: closure of an agreement to operate in the Asset Management industry in China.
• 2010: entrance in Vietnam.

3.Marketed services of Generali Insurance

Generali Insurance offers a wide range of products for both individuals and organizations.

3.1 Individual Insurance:

–Housing

–Civil Liability

-Holidays and travel

-Auto

–Life

-Health

3.2 Organizations

–Transport

–Employees

–Civil Liability

–Auto

– Property damage insurance for Small and Medium

–Technical Insurance

3.1 Individual Insurance

Housing

Home insurance coverage includes 5 variants:

–Standard

Standard insurance covers all damages to property caused by fire, lightning, explosion, falling aircraft, hit by road vehicles, smoke, gas, steam.

 –Average

Average insurance covers all risks caused by the Standard, plus natural disasters like landslides, earthquakes, floods, hail, and additional risks as damage caused by damage to water pipes, theft, robbery, vandalism, social and political events.

–Full

Full insurance covers all risks caused by the Average plus civil liability of the family.

–Full Plus

Full Plus insurance covers is the same as the full version but there is no deductible.

–Flexi Plus

Flexi Plus insurance covering the same risks as Full less theft, robbery, vandalism.

Civil Liability

Insurance covers unexpected incidents for which the client is legally responsible, at this insurance can buy additional insurance – legal liability insurance for owners of dangerous dogs and / or aggressive(if the dog attacks a person or an animal and the owner is held responsible the insurance will cover all the cost).

Holidays and travel

Standard insurance policy protects you travel abroad unwanted risk of an accident or sudden illness,  by taking emergency medical expenses and / or repatriation of the Insured sick, injured or died as a result of the insured risk during travel abroad in the amount insured stated in the policy. Organization of transport in Romania (repatriation) Insured sick injured or deceased are carried out exclusively by the insurer, through the company mentioned in the policy assistance.

Auto

Auto insurance covers a multitude of risks which can lead to damage, destruction or complete disappearance of your car, such as:

-accidental damage caused by collision, etc.
-theft of motor vehicle wholly or partly
-fire and explosion
-natural Events
-acts of vandalism and socio-political events
-loss or theft of keys

Also can be purchased additional clauses replacement car, if your car is no longer can move, following an accident, roadside assistance extended; driver accidents and / or people transported, water engine.

Life

General insurance has a wide range of life insurance, which also includes the health and private pensions. These life insurance customers may be concluded for themselves or their children under certain conditions:
-for children, age of entry into insurance is at least 1 day and up to 13 years, and not suffer from incurable diseases.
-for adults, age of entry into insurance is at least 16 years and maximum 75 unfulfilled, and not suffer from incurable diseases
In both cases, both children and adults before concluding the insurance have to complete a medical questionnaire, who is send to be reviewed by experts in the field

3.2 Organizations

Transport

Covered by this insurance are all risk of material loss or damage to goods transported both by road, rail, sea or air, water or combined, more secure and intermediate storage of goods transported, normal for long distance.

Employees

This type of insurance can be concluded by any company that wants to motivate employees, offering them protection and their families through multiple risk coverage:
-death from any cause
-total or partial permanent disability due to accident / any cause
-hospitalization due to accident / any cause
-post-hospital convalescence of accident or any cause
-surgery following an accident / any cause
-fractures / burns
-medical expenses from accident or any cause
-serious diseases.
-the sums insured can be fixed or salary (only in death and disability)

The Civil Liability and Auto insurance for legal persons have the same coverage as for Individual Insurance, the only difference being the civil liability where those who are covered by this insurance company are the employees who commit certain accidents against third parties.

Property damageinsurancefor SmallandMedium

Is an insurance that covering all risks (fire, earthquake, flood, theft, improper use of equipment, stopping temporal business, etc …) which may be caused to their property such as furniture, equipment, etc and buildings companies.

Technical Insurance

This insurance covers risks such as damage, theft, fire, robbery, earthquake, flood, bad handling, etc. of the construction machinery and electronic equipment

4.Financial status of the group

In 2009, the Romanian insurance market reported a 1.1% contraction in the value of gross written premiums, down to 8837.01 million lei. In absolute terms, the GWP value decreased by   100 million lei compared to 2008.

Generali Insurance in 2009

The 2009 reports of Generali Asigurari indicated the highest profit in its history on the Romanian market. Profit after taxes is 15.9 million lei, in accordance with the Romanian accounting standards and accounts for a 166% increase compared to 2008.

4.1Non-life insurance

In non-life insurance, gross written premiums totalized approximately 422.57 lei in 2009, namely 27.24% higher than in the previous year. In absolute terms, the company recorded an additional amount of 90.47 million lei in premiums. In aggregate terms, the Generali Asigurari portfolio follows the market trends. The three major classes in the non-life insurance industry: Motor Hull, MTPL and fire and natural catastrophes insurance covered approximately 90% of the total market underwriting in 2009. These three large pillars accounted for an 89.3% share at Generali Asigurari. Individually, we witness a rebalancing of the portfolio, as the Motor Hull share in the total written premiums at Generali Asigurari reached 46% in 2009, compared to 57.1% in the previous year, and the MTPL and Green Card categories increased their share to 25.9% compared to 12.5% in 2008. Nevertheless, the company continues to be less dependent on the motor segment. At the end of the last year, the motor class share (Motor Hull and MTPL) reached 71.9%, while the industry reported 77.1%.

In 2009, the income from premiums generated by Motor Hull contracts totaled 194.34 million lei, 2.4% more than in 2008. This is a remarkable result, given the difficulties experienced by the market and reflected in a 6.5% compression of this segment. For motor third party liability insurance class, a higher contribution to the company’s income was substantiated by a 163.12% premium increase, up to 109.33 million lei. The third relevant pillar, fire and natural calamities insurance, experienced a 19.34% increase in the GWP value, thus reaching 73.73 million lei.

  1.2 Life insurance

For 2009, Generali Asigurari reported 84.37 million lei in gross written premiums for life insurance. The slight decrease compared to 2008, of only 1.2%, can be seen as a remarkable result, given last year’s 13% compression of the life insurance market.

Moreover, Generali managed to underwrite premiums worth 71.81 million lei on the traditional life insurance segment, up 2.8% compared to 2008. The increase is even more relevant, as the market reported an almost 22% regress.

Student: Bacanu Maria Marilena Grupa VI, Finante Banci