KBC to enter banking-insurance market
Last week Belgium's KBC, an insurance and banking firm, increased its stake in Warta to 51 percent, as part of its overall goal to increase its market position in Central Europe. The new majority stake in Warta adds to KBC's existing position in Poland via its 81.4 percent stake in Kredyt Bank; this combined investment makes KBC better able to realize its plans to be the first major competitor in providing bancassurance products - both banking products through Warta's sales channels and insurance products via Kredyt Bank.
"This could be very interesting," says Artur Szeski, banking analyst at CDM Pekao. He explains that KBC, which applies the bancassurance model throughout Europe, has a window of opportunity today because its main competitor, state-owned insurer PZU, has a litany of corporate issues to confront before dipping into bancassurance seriously.
"We've always said that we're trying to establish a bancassurance in Poland," says Stephane Leunens, KBC spokesman. "On the one hand there's Warta and on the other there's Kredyt Bank. We now have 51 percent in Warta. The deal is now closed." Now Warta and Kredyt Bank will work more closely with each other.
Gert Rammeloo, a managing director at Kredyt Bank, is optimistic about the future of bancassurance in Poland. He says that his first order of business is to prove to customers that the bancassurance model can work - that salespeople can cross over from banking to insurance expertise and vice versa.
"It takes time to convince people that someone can be both a successful banking and insurance agent," Rammeloo says. "But this is the goal of the group." He also realizes that creating a Warta-Kredyt Bank group will take time: "We know that the growth will be slow, but we will notice in time (the success of our strategy)," he says.
"This could be very interesting," says Artur Szeski, banking analyst at CDM Pekao. He explains that KBC, which applies the bancassurance model throughout Europe, has a window of opportunity today because its main competitor, state-owned insurer PZU, has a litany of corporate issues to confront before dipping into bancassurance seriously.
"We've always said that we're trying to establish a bancassurance in Poland," says Stephane Leunens, KBC spokesman. "On the one hand there's Warta and on the other there's Kredyt Bank. We now have 51 percent in Warta. The deal is now closed." Now Warta and Kredyt Bank will work more closely with each other.
Gert Rammeloo, a managing director at Kredyt Bank, is optimistic about the future of bancassurance in Poland. He says that his first order of business is to prove to customers that the bancassurance model can work - that salespeople can cross over from banking to insurance expertise and vice versa.
"It takes time to convince people that someone can be both a successful banking and insurance agent," Rammeloo says. "But this is the goal of the group." He also realizes that creating a Warta-Kredyt Bank group will take time: "We know that the growth will be slow, but we will notice in time (the success of our strategy)," he says.
