The third largest insurance company in Europe - the Italian Assicurazioni Generali SpA, has acquired Romanian insurers Rai and Ardaf and thus increased its market share in the country, the company reported.

Trieste-based company has purchased 73% of Ardaf and almost 100% of Rai by the private group for equity investment PPF Investments, was said in an e-mail of the insurer sent yesterday. Generali did not disclose the financial parameters of the deal.

"Romania is a strategic market for the company, which in recent years has the highest growth in the European Union'', said Sergio Balbinot, CEO of Generali.

This transaction will double the market share of Generali in Romania to 11.7%.

S.C. Asigurare si Reasiguare Ardaf operates in both general insurance and life insurance sectors. The company generates gross premium earnings of 48.4 million euros in 2007. The company benefits a network of 35 branches, 222 agencies and over 5 100 agents.

Roumanie Assurance International (Rai), which sells products, including medical and travel insurance, reported gross premium income of 7.8 million euros last year.

Generali PPF is already present on the Romanian market through Generali Asigurari, which operates both in general and life insurance sectors, and through Generali Fond de Pensii, which is the third largest pension fund in the country.

Romania is the second largest economy among countries that have entered the EU in the period between May 2004 and January 2007, but its insurance market, relatively small and with annual premium income of 1.6 billion euro, ranked in the sixth place among countries of Central and Eastern Europe in 2006.