Aviva, one of the leading providers of insurance, pensions and asset administration services, has signed an agreement with the majority shareholders in Certinvest, Romanian-American Enterprise Fund (RAEF) and Eugen Voicu to buy its shares (subject to the necessary approval).
Aviva, one of the leading providers of insurance, pensions and asset administration services, has signed an agreement with the majority shareholders in Certinvest, Romanian-American Enterprise Fund (RAEF) and Eugen Voicu to buy its shares (subject to the necessary approval).
Certinvest is the oldest asset administration company in Romania. The company was set up in 1994 and launched its first mutual fund, Capital Plus, in that same year. Aviva is the oldest life insurance and pensions group in the world, dating back to 1696. The Romanian-American Enterprise Fund (RAEF) was set up in 1995 by the US Congress, and is a leading institution in the private investment funds sector and that of financial consultancy for investment services in Romania.
The purchase of Certinvest by Aviva represents the combination of the most experienced asset administration company in Romania and the most experienced provider of life insurance and pensions in the world. As a result of this purchase, Aviva will gain 99.8% of Certinvest shares and will integrate the company into its operations in Romania, alongside already existing life insurance and pension companies.
Pierre-Olivier Bouée, director - Central and Eastern Europe, Aviva Europe, says: "This purchase marks a new phase in the meeting of our development objectives in Central and Eastern Europe and our objective of achieving the position of market leader for long-term savings plans in Romania. At the same time, this deal will help us to meet the requirements of our customers in Romania through the diversification of the range of products and services on offer."
Shah Rouf, CEO Aviva Romania, has underlined the significance of the purchase of Certinvest, as this will lead to ever greater consolidation of Aviva's presence in Romania: "Through the purchase of Certinvest and the recent establishment of our private pensions company, Aviva Romania is becoming a provider of diversified financial services with a deep understanding of the portfolio of asset administration products. Certinvest will be an essential component of our strategy, providing our pensions, investments and life insurance customers with the highest-quality asset administration services and exceptional return on their money.
Rouf goes on to state that: "At the same time, Certinvest will continue to develop and will become part of Aviva's Global Investments Network, offering customers access to Aviva's international experience."
Horia Manda, chief investment officer and senior vice-president of RAEF states: "While we are aware that the Romanian asset administration market is in its very early stages, we wish to offer to the Certinvest company and team the chance to benefit from all the opportunities of a developing market, by being a part of one of the most esteemed international groups specialising in asset administration. The price of the deal clearly reflects the very strong development of funds administered by Certinvest, the company's current market position and its potential for development."
Eugen Voicu, CEO Certinvest, has commented that: "Through the purchase of Certinvest by Aviva, our customers will benefit from the security offered by a leading international financial group, whilst at the same time maintaining the performance level of investments and the close relationship to which our customers have become accustomed and which they expect from Certinvest. In addition, by being part of the Aviva group, the company and its employees will have greater opportunities for development."
Eugen Voicu will keep his position as CEO of Certinvest, under the co-ordination of Shah Rouf, CEO Aviva Romania. Alongside this, he will also hold the position of director of investments for the Aviva Administration Company for a Private Pension Fund SA (Aviva's pensions company).
The purchase is due to be completed by the end of 2007.
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For further information:
Giliola Ignat
Telephone: 0723 310 378
E-mail: giliola.ignat@aviva.ro
Note for editors:
Asset administration in Romania
The mutual funds industry has been developing constantly in Romania in recent years, with an annual rate of growth of over 50%. There is also considerable potential for growth in the future, as the market value is only 250 million euros, whilst the value of assets in mutual funds in Central and Eastern Europe exceeded 34 billion euros in 2006.
Source: CNVM for Romania and the Financial Times, April 2007 for CEE
About Certinvest
Certinvest currently administers 24 million euros in 4 mutual funds, each of them based around a different type of investment: Intercapital - a shares fund, Capital Plus - a balanced fund, Orizont - a fixed-income (bonds) fund and Tezaur, a capital market fund. Certinvest also administers individual investment accounts for high-earning customers.
Certinvest has shown throughout the years that it is one of the most dynamic and innovative administrators in the market. The company launched the first commission-free sales fund on the Romanian market (Tezaur) and the first bonds fund in Romania (Orizont). Certinvest is also proud to support the bull market for investment funds in Romania.
About the Aviva group
Aviva is the oldest insurance group in the world and the largest in Great Britain, dating back to 1696. Today, Aviva has 59,000 employees and 40 million customers in 27 countries across the world.
Aviva is the market leader for life insurance in Europe.
Aviva has revenue from insurance premiums and investments totalling 61 billion euros and administers over 535 billion euros' worth of funds.**
Aviva began operating as a provider of life insurance in Romania in 2000 (Aviva Life Insurance SA) and currently insures over 400,000 Romanians.
In August 2007, Aviva received approval from the Oversight Committee for the System of Private Pensions to set up a company to administer private pensions (Aviva Private Pensions Fund SA) and is now awaiting final approval to participate in the mandatory pensions market due to be launched on 17 September 2007.
* in terms of new sales in 2006
** at an exchange rate of 1 GBP / 1.47 EUR