Groupama becomes Star's Strategic Partner by acquiring a 35% equity stake in the Tunisian Insurer

15 July 2008

Paris, 15 July 2008 – The Tunisian government has just chosen Groupama as provisional successful bidder of the capital increase deal of the STAR (Société Tunisienne d’Assurances et de Réassurances). As part of this deal, Groupama will acquire 35% of STAR’s shares and voting rights for € 72 million.

The Tunisian government and state enterprises together hold a 60% majority stake in STAR.

STAR is Tunisia’s biggest non-life insurer with a 29% market share in this sector. It also ranks 9th in life insurance with a 5% market share.

This leading company reported premium income of € 121.3 million and a net profit of € 3.4 million for 2007. It employs 660 people.

STAR has the country’s largest retail network with 11 branches, 146 agents and 16 non-exclusive brokers.

It is a major player in a € 458 million market growing at a 10% annual rate since 1995. The market is expected to grow just as rapidly for the next 15 years. The insurance market penetration rate as compared to GDP is 1.95% per capita.

This world-class alliance will enable Groupama to play an active role in a potentially fast-growing market by providing STAR with a level of expertise which has proven its worth in 11 countries, mainly in Europe.

The shareholders’ agreement provides for a real involvement in STAR’s management whereby Groupama will lend the Tunisian insurer its expertise in tightly managing how non-life insurance is granted, particularly motor insurance, which makes up 43% of STAR’s premium income and is Groupama’s leading business outside of France. Groupama will help STAR to expand its life insurance business, which now makes up 10% of the market in Tunisia, to spearhead a multi-network retail operation and to improve its computer systems.
Groupama expects to close the deal during the third quarter 2008.

Ends

July 2008