Cooperative Movement eyes insurance market

The Cooperative Movement is paving its way towards an entry on the Cypriot insurance market and is expected to make some crucial decisions towards the end of the month.

Last August, the Cooperative Movement had a round of negotiations with German insurance giant Allianz, which were aimed at creating a joint venture in the insurance field. Since then, very little has been said regarding the possibility of an agreement between the two companies, as one of the two sides had requested that the negotiations stay away from the limelight.

According to information obtained by Phileleftheros, the Cooperative Movement intends to move into the insurance sector with or without cooperation with Allianz and has thought of alternative scenarios should an agreement with the German company fall through.

Things are expected to become a little clearer by the end of the month following the AGMs of Lefkoniko (June 20), the Cooperative Central Bank (June 26) and Demetra (June 27), all of which fall within the Cooperative Movement.

The Cypriot Coop has had links to Allianz since 1994. In 1998, net premium income resulting from the cooperation of the two companies amounted to £4m compared with £650.000 in 1992, when the Cooperative Central Bank cooperated with UK company Legal & General.

Translated from Phileleftheros