[attach id=247003 size="medium"]Albert Mamo will continue to serve as a non-executive director and lead Gasan Mamo’s Solvency II project. Photo: Chris Sant Fournier[/attach]

Opportunities for selected new lines of business will arise in the insurance market although they will materialise slowly, in keeping with local culture, according to Albert Mamo, who has just retired as managing director of Gasan Mamo Insurance.

Mr Mamo, who has enjoyed a 47-year career in the sector, has been succeeded by Julian Mamo. He will continue to be involved in the business as a non-executive director and will lead Gasan Mamo’s Solvency II project. Outside the business, he chairs boards of some family companies, and is involved with a committee of the Malta Insurance Association.

Mr Mamo outlined how after a meticulous succession planning process, he leaves behind a “strong and cohesive” management team, supported by a motivated staff complement, with the right qualities to grow the business.

“Growth in this business is fundamental, considering that some 64 per cent of our budget is salary-related,” Mr Mamo explained, “which, with most other expense items are always increasing. This has to be made up by increased revenue. You can only do this by either increasing prices or increasing premium income. It is very difficult to increase pricing in the current market conditions, but can you achieve the second without winning business at uneconomic pricing?

In overall EU terms, we will always be a small player coming from a small market

“In comparison to the EU average, the local market demand is much lower and underdeveloped, so there may still be scope for introducing some selected new lines of business. However, this will manifest itself slowly since demand for insurance is mostly in response to legislative or social change, and in many ways, we as a nation change very slowly in both. That can have a direct and substantial effect on projected premium income.”

Mr Mamo explained that Gasan Mamo has taken advantage of Malta’s EU membership and slowly adopted a policy of trying to seek out small niche opportunities overseas, basing decisions on fundamental principles. The company has, however, accepted very few of numerous proposals which have come its way.

“In overall EU terms, we will always be a small player coming from a small market into a much larger pond. Extreme caution has to be the by word,” he said.

Mr Mamo – who has witnessed the local sector’s growth from just one local company and the impact of technology and regulation on operations over the years – points out it is only the size of Malta’s general insurance business market which limits some of the products on offer as pricing and cover would be uncompetitive.

Mr Mamo joined the family business, Galdes and Mamo Ltd, in October 1965, after 10 years as a boarder at St Edward’s College. The firm had six partners, including Mr Mamo’s father, and two members of staff. He was assigned various tasks – from bookkeeping, collecting shipping documents, and delivering goods from the family’s import business. He became managing director of Galdes and Mamo in 1990 and later of Gasan Mamo in 2000.

He recalls three major challenges throughout his career. He was appointed managing director of Galdes and Mamo in 1990, under tragic circumstances with no handover. He admitted he was “terrified” at the prospect but encouragement from friends and family served as a strong enough incentive.

In late 1997, the company lost its principal but just when options for the future seemed limited, Joe Gasan called with a proposal to merge the Gasan and Mamo insurance businesses. The conclusions of a technical report paved the way for the merger to become reality.

Not long afterwards, the merger’s principal decided to pull out of most overseas markets and offered its help to find a replacement. It did suggest Gasan Mamo consider taking the plunge to become an insurance company. Gasan Mamo Insurance came to be on January 1, 2003.

Now, 20 years later, Mr Mamo looks back with no regrets “whatsoever”, pleased with a “good run” and acknowledges it is time to start a new chapter in life. He says he will dedicate his free time to volunteering with heritage society Din l-Art Ħelwa and to his role on St Edward’s board of governors and finance committee.