The global diversification of Australian insurer QBE continues to grow, with the company set to open a branch in Romania by early next year.

Australia’s largest insurer by gross premium is reportedly preparing to enter the Romanian market by opening a subsidiary in the country via its UK operations.

QBE last tried to establish a beachhead in Romania during its failed acquisition of local insurer ARDAF Cluj in 2001.

The eastern European nation is an attractive target for foreign investors, with GDP growth of nearly 8% in 2006 and the country preparing for full integration into the European Union.

Romania’s capital, Bucharest, has a population of more than 2 million and economic growth of 8.4% in 2006 – the fastest of any capital city in eastern Europe.

QBE Marketing Executive Europe Sandra Villanueva told Romanian daily paper Ziarul Financiar the company is approaching the Romanian market with caution.

“QBE has considered many acquisition opportunities in Romania but has failed to find a company at a price that could generate value for its shareholders,” she said.

“We’ve been in talks with several Romanian companies in recent years. At the moment, though, we are not in talks for any acquisitions and believe the best strategy for QBE is to open a subsidiary in Romania through our company based in Great Britain.

“European Union integration will lead to the development of infrastructure, both in the public sector and the private one, which means business opportunities for insurers.”

QBE is not the only insurer interested in Romania. This month, Allianz announced it had purchased a new office portfolio in Bucharest for its property-managing arm Degi.