EuroBusiness Media (EBM): Groupama is presenting its new strategic plan for 2010-2012. Jean-François Lemoux, welcome. You are Managing Director International of Groupama. Before we discuss the strategic plan, let’s first discuss the fact that, over the last few years, Groupama has acquired a truly international dimension by taking over a number of insurance companies in Europe. Can you explain the rationale behind these investments from Groupama’s point of view? Also, what are your criteria for choosing one market rather than another?
Jean-François Lemoux (JFL): The rationale behind our investments is selective and controlled business development. Nothing is left to chance: we first undertake a strategic analysis, because we are determined to set up in countries that seem to have real potential for business development. This means, in practice, those insurance markets that will grow faster than the French market. Our intention is to acquire significant shares of these markets as fast as possible. And when I say “significant market shares”, ideally this means putting us in the top five players on each of those markets.
EBM: The recession has particularly affected the economies of Southern, Central and Eastern Europe, that is to say, exactly the markets in which you have invested. What’s your take on this situation and what are the consequences of this for the Group?
JFL: It’s true that in many markets on which we operate, 2009 has been a difficult year in economic terms. It’s true in Spain, where we know that the recession has been particularly deep. This is also true in Central European countries, such as Romania and Hungary, but also in Turkey. Nevertheless, when we look at the situation today, we realise that, of course, our premium income in these countries has tended to fall in terms of volume. However, with the exception of Romania, where restructuring is still in progress, all of these subsidiaries remain highly profitable. True, some of the business plans we drew up at the time of the acquisitions have been slightly delayed, but this has not changed our vision of medium and long-term business prospects on these markets. We have invested in these markets because we believe in their potential, and this potential remains intact, in spite of the crisis over the last few months.
EBM: Finally, as part of the new strategic plan for 2010-2012, how do you expect to develop your current international presence?
JFL: First, by investing in distribution, the key factor of success in our line of business. This means continuing to open new branch offices, restructuring our sales networks, making them more professional, and signing new distribution partnership agreements. Also by working, as we have done over the last few months, on our integration projects in order to generate maximum synergies. We have been doing this, for example, through our IT projects for setting up a number of regional platforms. This is to ensure our existing subsidiaries develop. Needless to say, we don’t exclude the possibility, in some markets, of making further acquisitions to complete our distribution networks.
EBM: Jean-François Lemoux, Managing Director International of Groupama, thank you.
JFL: Thank you.
