The insurance company Groupama has once again postponed its listing on the stock exchange. A press release announces that the initial public offering will be launched on a date to be defined around 2015. "For the next two years, a policy will be needed that allows cutting costs and increasing profitability", explains Jean Azema, CEO of the institute, to the newspaper Les Echos.
The downgrading by Standard & Poor's from BBB+ to BBB must not have pleased the French group. "The management's strategy of bringing capital to acceptable levels may no longer be sufficient" explains Jean Azema, "our priority will be to commit ourselves to increase profitability rather than trying to go public”. This clarifies the reason for a new plan that provides for cost reduction, "our expenses are 5% higher than our competitors" added the general manager in the interview.
In fact, Groupama finds itself competing with numerous unlisted insurance agencies and the intention is to reduce costs by 300 million euros by the end of 2013. “This type of measure will allow the group to return to previous levels, in this period we do not plan to make any type of acquisition” suggests Azema, however opening the doors to a listing on the stock exchange for 2015.
Again Azema was asked if the 4.2% stake that the group holds in the French bank Societe Generale and the possible losses that may derive from it weighed in these choices. However, the CEO of the insurance company clarified that those investments must be evaluated in the long term and that the causes of the group's difficulties must instead be sought in the exposure that Groupama has towards Greece, Ireland and Portugal which net amounted to 770 million. But also towards Italy (1.5 billion) and towards Spain of 670 million.
