30 September - 6 October 1999

Gasan-Galdes & Mamo merger comes about

by Noel Grima and Anthony Manduca

Gasan Insurance Agency and Galdes & Mamo Ltd have finally merged after having announced their merger intention a year ago. The chairman of the new Gasan & Mamo Insurance Agency is Albert Mamo while the managing director is Joseph Grech. Joe Gasan and Julian Mamo are the two other directors of the company.

Gasan & Mamo Insurance Agency is now Malta's largest private insurance operation, and employs over 90 people with offices and representatives all over the Maltese islands. The new company will represent CGU plc, one of Europe's largest insurance asset management groups, which was formed as a result of an international merger between General Accident, already represented locally by Gasan Insurance, and Commercial Union, which used to be represented in Malta by R von Brockdorff.

Galdes and Mamo used to represent Royal Insurance in Malta, but the latter company merged globally with Sun Alliance, represented locally by Elmo Insurance, and formed Royal & SunAlliance. This transaction presented Galdes & Mamo with the option of joining forces with Elmo as local representatives of the newly merged international company or merging with a different insurance agency altogether, which they did. Today Elmo Insurance is the sole representative of Royal & SunAlliance.

Speaking to the media at a launch of Gasan & Mamo Insurance Agency managing director Joseph Grech compared the merger to a marriage. "This is not a shot-gun wedding," he said. "The two companies met, liked each other, found out they spoke the same language and got engaged. The process took its time, like all engagements, because many things had to be sorted out, such as ensuring compatibility in computer systems. It was only when all this preparatory work was completed that the two companies agreed to get married," he said.

During the long engagement, the two companies' slogan was "We are merging for you" with the accent being on "for you". From now on the accent will be on the fact of the merger; trying to get across the message that through the merger the company will be better able to service the needs of its clients.

Mr Grech said that through the merger the company's employees will be in a better position to specialise in various fields of the insurance business and can thus provide a better service to clients in a wider context. This merger, he said, comes at a time when the European insurance market is being liberalised and when the Malta insurance market is becoming more competitive.

One important element in the new company's manner of presenting itself to the public lies in its logo: a lantern. For the company, the lantern is both a landmark and a trusted sight in the surrounding darkness. "It can be a landmark and a trusted light because it is based on solid foundations.

The message that the company wants to transmit to its clients is that while operating in a very competitive market, it is built on solid foundations. For the company, its solid foundations do not lie in the financial backing, but more in the trust it is given by its clients, past, present and future.

Gasan Insurance Agency was established in 1975 and Galdes & Mamo has been operating since 1947. The two companies merging combine a wealth of experience and a formidable team of some 90 insurance professionals.

The new company will now serve its business and personal clients through its head office in Gzira, in front of the former national stadium, and its six branches, plus other agents and brokers.

The chairman of the new company, Albert P. Mamo, said that "We intend to use the strength of the two organisations and that of our principal, CGU, to our clients' advantage. Our position as market leaders, the experience and dedication of the staff, management team and board of directors, will all result in better service, as well as innovative and competitive policies in line with the requirements of our existing and new clients."

GasanMamo, the company's officials told the media, will be the market leader. It will have a strong voice and it enjoys the respect of its competitors and of the public. Its aim is to keep the sector stable and to grow further.

Joe Gasan, chairman of the Gasan Group of Companies, said that the culture of mergers still has to develop root in Malta. He said he had no doubt that this merger was a good step. He said that the most important thing about the merger is that it has received the full support of the staff of both companies. "The more that one can merge the better for many businesses. If you have to negotiate, it is important to negotiate from a position of strength," he said.

Galdes & Mamo, he said, proved to have the same way of thinking and the same ideology as Gasan Group. The 15 months of engagement have shown the two sides that they can work together. The merger will prove to be a seamless operation for the clients and will now concentrate on providing the clients with a more efficient service. Answering questions by the media, the company's spokesmen said that no jobs will be lost as a result of this merger. On the contrary, the company is at present recruiting people. As a result of this merger, too, the company's staff will have better opportunities coming their way.

Once the merger is out of the way, the company will come out with new products, especially in the fast- changing insurance world where financial services are being expanded.