Romania's insurance market – 8% rise of gross written premiums, H1

By Andra Beltz
The insurance companies authorized and regulated by the Financial Supervisory Authority (ASF) have recorded, in H1, 2017, a 5.04 billion lei overall gross written premiums, up by 8% y-o-y, reads a press release of ASF.
According to ASF, on the segment of general insurance, insurers have gross written premiums (GWP) worth 3.97 billion lei, by 2% more y-o-y. At the same time, the segment of life insurance has registered a 36% advance as compared to the first six months of 2016, the insurance companies recording a 1.07 billion lei GWPs level. The analysis of the data reported by insurance companies reveals that Romania's insurance market is characterized by a high concentration level. In the first half of 2017, 88% of the overall volume of underwritten gross premiums was made by 10 insurance companies, of the 31 companies that were conducting insurance/reinsurance businesses on June 30, 2017.
The report also mentions that the overall value of the underwritten insurance premiums for the mandatory motor vehicle liability insurance (RCA) reached 2,041,889,248 lei in in H1, 2107, the rest to the overall amount of A10 class (2,105,340,326 lei) representing the transporters' insurance for the merchandise carried as transporter and the RCA written on the territory of the EU member states, on the basis of the right to free service supply.
In 2016 and H1, 2017, the companies with the largest share in the RCA insurance market were Euroins, City Insurance and Asirom, holding together over half of the market (54% on December 31, 2016 and 71% on June 30, 2017).
ASF mentions that at the level of the entire insurance market, the net result of the activity in H1, 2017 was positive, reaching 260.3 million lei, up 115% y-o-y.
'Based on good capitalization, Romania's insurance market is still dominated by general insurance (especially in the automotive area) but an enhanced growth trend of the life insurance segment can be noticed. This is a signal that the market is entering a new development stage on sustainable foundations, which stands for a paradigm shift, from the risk-safety insurance to the rise of the consumers' interest in protection and saving instruments,' stated Cornel Coca Constantinescu, vice-president of ASF, in charge with supervising the insurance market.(rbj/25.09.2017)

Groupama Asigurari recorded 462 million ROL gross written premiums in the first half of 2017, up 5%

By Andra Beltz

The gross premiums written by Groupama Asigurari, owned by the French Groupama Group, increased by more than 5% in the first half of 2017, compared to the same period last year to 462 million lei, the company reported on Tuesday.

'The results recorded in the first half of the year confirm that our strategy is working and that we are on the right track to win the Romanians' preference by delivering quality products and services at a fair price due to the high commitment of all our colleagues' said Francois Coste, General Manager of Groupama Asigurari.

As a result of the company in the first half of the year, non-life insurance had a contribution of 445 million lei, up 5.3% compared to last year, while the net technical result after commissioning improved, being supported to a great extent improving the results on the Health, Accident and Property segments (including Agro).

Overall, the value of gross written premiums in the Health and Accident category grew by 87% in the context of the high potential of this market segment and due to the sustained efforts to develop this business line. The Property Area (including Agro) had a significant evolution over the same period last year, marking an increase of over 8% to 100 million lei. On the Auto segment, the CASCO policies increased 9% to 189 million lei, while the RCA decreased by 11% to 109 million lei.

In addition, the line of 'other non-life insurance - transport, civil liability and travel' insurer registered a 9% increase.

As far as life insurance is concerned, compared to the same period last year, they had a stable evolution in the first half of 2017, being a focus of the company for the next period.

'We also remain the insurer with the lowest number of complaints registered with ASF (according to data published monthly on insurance companies' websites) and the largest employer in the market, convinced that our team's commitment is decisive in building a long-term relationship with our customers and our partners, "says company representatives. Groupama Asigurări has 1.1 million individual clients and 67,000 companies and is part of an international insurance and financial services group with 32,600 employees serving 13 million clients globally.(rbj/05.09.2017)

Insurance market in Romania, 8% increase of subscribed gross premiums in Q1 2017

By Theo Moreni

The Romanian insurance market recorded in the first quarter of 2017 subscribed gross premiums, cumulated for insurance companies and branches, worth a total of 2.73 billion lei, up by 8% as compared to the same period of the previous year, according to the analysis regarding the insurance market evolution in the first quarter of 2017, conducted by the Financial Supervisory Authority (ASF).

The general insurance segment recorded a 1% increase in the first quarter of 2017 as against the same period of 2016, and the life insurance segment increased by 35.8 %.

The value of gross premiums subscribed by insurance companies and branches, only on Romanian territory, was 2.71 billion lei, up 9% year-on-year (2.48 billion lei). (rbj/28.07.2017)

The ASF Board has decided to close the financial recovery procedure of City Insurance

By rbj

During yesterday's meeting the Board of the Financial Supervisory Authority has discussed and analysed the situation of the Societate de Asigurare Reasigurare City Insurance S.A., a company undergoing a financial recovery based on a plan.

The members of the Board have been informed about the recovery of the insurer's financial situation on March 31, 2017, based on the documents submitted by the company and the verifications made by the ASF specialty directorates regarding the granting by the existing main shareholder of a subordinated loan, in cash, in the amount of EUR 50 million.

In this respect, the ASF Board has ordered the closure of the financial recovery procedure of City Insurance, in accordance with the provisions of Art. 20 letter a) of Law no. 503/2004 on financial recovery, bankruptcy, dissolution and voluntary liquidation in the insurance business.

At the same time, ASF has instructed the insurer's management to implement a set of measures for a period of 6 months starting the date of receipt of the decision, whereby the Authority will monitor the way in which the RCA claim files are handled as well as the investment policy of the company.

The Board of ASF decided to open the Financial Recovery Plan procedure for City Insurance in April 2016, through ASF’s Decision no. 901 / April 18, 2016.

The Financial Supervisory Authority (ASF) was established as an autonomous, specialized, with legal status, independent, self-financed administrative authority, exercising its duties by taking over and reorganizing all duties and powers of the National Securities Commission (CNVM), the Insurance Supervisory Commission (CSA) and the Private Pension System Supervisory Commission (CSSPP).(rbj/20.07.2017)

The Romanian Business Journal
Constantin Radut
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