27 April - 3 May 2000

Atlas Insurance to represent PPP healthcare in Malta

by Anthony Manduca

PPP healthcare has announced that with effect from 1 May 2000 Atlas Insurance Agency, agents for AXA Insurance, will act as its representatives in Malta subject to and with the approval of the Malta Financial Services Centre. Atlas Insurance will be replacing Laferla Insurance Agency, who have represented PPP in Malta for many years.

Following the acquisition of PPP healthcare by Guardian Royal Exchange (GRE) in 1998 and the subsequent acquisition of GRE by AXA Assurance, a decision was taken to consolidate the agency representation within the AXA group in Malta into one agency.

Contacted by The Malta Business Weekly, Walter Camilleri, chairman and joint managing director of Atlas Insurance Agency, said that both PPP and the Atlas Group have the greatest respect for the Laferla organisation. "The change in agency is not a reflection in any way on the performance by Laferla Insurance Agency. The business requirements of the AXA group made the change inevitable," he said.

Mr Camilleri is known to be very keen on mergers and some observers have found it strange that no merger took place between Altas and Laferla. The history of Atlas is riddled with mergers, very often due to international mergers. The first merger took place in 1981 when Formosa & Camilleri was set up. In 1998 the company first merged with Von Brockdorf Insurance and then with Arva Insurance to form Altas Insurance. Two months ago Atlas merged with Capital Insurance. When this history of mergers was pointed out to Mr Camilleri, he said: "I regret that this time it was not possible to take advantage of the synergies that existed."

PPP healthcare said in a statement to its members in Malta that it held Laferla Insurance Agency and its staff and management in the highest regard and that the change in agency resulted from global business changes. The statement said that Atlas Insurance Agency is to continue to provide the excellent level of service that PPP healthcare customers have always received. PPP said that there will be no change to members' policy terms and conditions as a result of this change of agency and membership will be renewable subject to normal terms. As from 1 May PPP members whose renewal policy falls after this date will receive a statement of renewal from Atlas Insurance Agency.

Atlas will also start assessing claims after 1 May. No medical history will have to be declared by PPP members as a result in the change in agency representation unless one transfers to another plan.