The SPB group, which designs and administers affinity insurance programmes, is announcing the acquisition of two insurance services firms: PC Garant in Germany and Citymain in the UK. By establishing itself in these two key insurance markets the group is consolidating its presence in Europe. SPB is pursuing an acquisition-led expansion strategy to tap into new sources of growth while helping clients implement their Europe-wide services programmes.

Stronger European presence
SPB has been gradually extending its international reach for several years, opening subsidiaries and branches in Italy, Spain, Belgium, Switzerland, Poland and Romania. Now, with a view to offering services in the leading markets of western Europe, the group has taken majority stakes in two insurance services firms in the UK and Germany:

-    Citymain: Formed in 1986 Citymain has earned a solid reputation in the British insurance services market and enjoys an excellent image. With a 40-strong workforce, it was the first company to offer mobile phone insurance in the UK market and has acquired significant expertise in insuring other mobile products such as laptop computers and gadgets. It also designs products for the banking industry, missed-event covers and other solutions. With this acquisition SPB is securing a foothold in Europe's largest insurance market.

-    PC Garant: Formed in 1992 and based in Nuremberg, Germany, the company is specialised in warranty extensions for computer hardware, working with a network of more than 10,000 retailers and distributors. It is now extending its offering to include electronic products such as game consoles and specialised devices, as well as home appliances (white goods).

The acquisition agreements – signed in March with PC Garant and April with Citymain – are based on majority ownership interests.

Commenting, SPB Chairman Jean-Marie Guian said: "Unfettered by borders, our clients are increasingly asking us for assistance with programmes spanning multiple countries. Today half our growth comes from business outside France. With the acquisition of these two companies, which are well established and highly regarded domestically, SPB is setting up in two new, significant European markets and also generating major synergies for the group".

With Citymain and PC Garant, the group is consolidating its expertise in insurance solutions for the high-tech sphere. Leveraging its market leadership in mobile phone insurance, breakage and theft insurance for technology products, and its highly successful breakdown cover offering new-for-old replacement, the group intends to forge ahead with its innovation policy in this constantly changing sector.


The deals also give PC Garant and Citymain the backing of a solid group, enabling them to grow their business and sales forces and to expand their product ranges.

The former owners will hold the remaining shares and will retain the local management of their companies on a day-to-day basis.

In the UK the tie-up with SPB will give Citymain the clout and credibility it needs to pitch its products to key players in the banking and telecoms industries.

The two acquisitions are entirely consistent with the external growth strategy that SPB adopted in 2008: its priority for 2010 is to consolidate its European base.


Concluding, Jean-Marie Guian said “Our ambitions for 2010 are squarely focused on international development. With these two acquisitions, the SPB group is now present in the five major markets of the European Union. Alliances with key domestic players give us a solid base in Europe, enabling us to assist our clients as effectively as possible in implementing pan-European programmes and to grow our local business more efficiently”.

2009 results: a year of contrasts
In an unstable economic environment the SPB group, which has more than 800 employees, reported mixed results for 2009. Net commission income grew 7% to €65.1 million, compared with a 13% increase in 2008.
Operating profit fell 40% to €3 million. The decline was due to fee reductions combined with significant growth in policyholder relations activity spurred by heavy reliance on insurance during the recession and by the “smartphone effect”. The latter factors prompted a significant recruitment drive and hence a large increase in payroll and overheads.

For more information click here
Citymain Press Release