Times of Malta speaks to GasanMamo Insurance managing director Julian Mamo, who has been working at the company since 1987, prior to the merger between Gasan Insurance Agency and Galdes & Mamo Ltd.
GasanMamo Insurance was formed in 1999 and is the result of a merger between two leading insurance providers – Gasan Insurance Agency and Galdes & Mamo Ltd. This year GasanMamo Insurance is celebrating its 20th anniversary. With the benefit of hindsight, how do you look back on the decision to merge?
Julian Mamo: As one might imagine, the environment was very different then to what it is today – it was still pre-EU and pre-euro days. Malta’s insurance market was made up mainly of insurers with UK roots represented by agents in Malta. International insurance markets were in a state of flux at that time and companies were looking to consolidate and alter strategic direction.
This resulted in merger and acquisition activity at this level. It was this activity by our then principals that triggered Gasan Insurance Agency and Galdes & Mamo Ltd to enter discussions with a view to merge. Both sides immediately recognised the benefits that could be derived once the businesses were brought together.
This was a quantum leap for all shareholders who had the foresight to see the trajectory for growth, increased depth and quality in our offering.
How have you seen GasanMamo evolving in the local insurance industry?
While staying faithful to the values shared by both companies, GasanMamo Insurance has evolved to the point that it is almost not recognisable. The company has grown exponentially in terms of revenue as well as resources with the headcount more than doubling. Activity has expanded beyond our shores where we now generate a substantial portion of our premium.
Given that another major milestone was the transition from agent to insurance company, what in your opinion makes GasanMamo Insurance Malta’s leading insurance company?
There is no doubt that the transition from representing another (foreign) insurer to becoming an insurer in our own right was the most significant development during the last 20 years. Our values and many of the processes remained constant, however, capital requirements and responsibility certainly shifted a few gears.
We are committed to remain at the cutting edge of these developments
The transition was smooth, and I’m extremely proud of our excellent track record. We have earned the respect of insurers, reinsurers and clients and we are very well placed to continue this journey. This would not have happened without the input of everyone concerned, from the board, management, staff and intermediaries.
Following 20 successful years, what are the main challenges GasanMamo Insurance faces?
The biggest challenge ahead is the speed of change. Past success is certainly no guarantee for a successful future. The main drivers for this change are technology and human behaviour. It is almost a cliché to say it, but it is a fact. Several disruptive elements lie ahead, and customers’ needs and wants are very different to those of previous generations. We are committed to remain at the cutting edge of these developments.
What do you think the insurance industry will look like two decades from now?
The insurance industry, like many others will evolve drastically. Compliance and regulatory pressures combined with the changes in the market demands I previously referred to, will drive companies to find a way to be large yet nimble.
Technology will be fundamental in security and integrity of data, market knowledge as well as distribution and convenience for customers.
It is set to be a fascinating onward journey, one that I relish for GasanMamo.
Meeting the challenges ahead
Times of Malta also spoke to Joseph A. Gasan, the chairman of Gasan Group Limited, GasanZammit Motors Limited, Gasan Mamo Insurance Limited and several companies constituting the Gasan Group.
He commented that the merger between Gasan Insurance Agency and Galdes & Mamo was a natural step for both companies to take things to the next level benefitting from improved economies of scale and synergies.
“I recall that discussions progressed very fast due to the like-minded and principled approach to business.
“I was certain that this step would prepare us to meet the challenges ahead and grasp the opportunities that would arise. Indeed, looking back over this time, this is certainly what happened.
“I am proud of what has been achieved and am confident that there is much more to come. I would like to commend all the team who have contributed to this success at the various levels, but a special thanks is due to Albert Mamo, who led the company successfully through some very significant transitions,” said Mr Gasan.
GasanMamo Insurance is authorised by the MFSA.