6% decrease of the ALLIANZ-TIRIAC business after the first nine months
The insurance market leader in Romania, ALLIANZ-TIRIAC, decreased by 6% in underwritings income, after the first nine months of the year, to EUR 229.6 million (RON 971 million). For the whole year 2009, the company estimates that the decreasing evolution of the volume of gross written premiums will be kept around that percentage.
General insurance, responsible for 93% of the company's business, decreased 5%, to RON 905 million, from RON 951 million in Q3/2008, amid sales reduction of Motor Hull policies related to vehicles bought in leasing, in the conditions of the major decline of car sales this year. Thus, gross written premiums on the Motor Hull segment, that owns the largest share of the non-life portfolio of AZT, fell by RON 33 million, to RON 547 million.
"The loss of income caused by the process of cleaning the Motor Hull portfolio was a conscious one, as it had positive effects on the profitability of this insurance class", said Cristian CONSTANTINESCU, General Manager of ALLIANZ-TIRIAC Asigurari.
Cleaning the portfolio involved a reduction of the degree of renewals for policies that have registered a high claim rate following the company making certain adjustments required by co-relating the casualty and theft insurance premiums with the client's risk profile.
Regarding the MTPL segment, the evolution was different, with underwritings increasing by 12%, to RON 166 million, at the same time with a higher damage rate up to 100%, the highest level registered so far by the company.
The considerable increase of claims on this segment has eroded the operational result on the non-life segment for the first three quarters, as the gross profit halved compared to Q3/2008, to RON 18 million (EUR 4.25 million). Meanwhile, the company's activity on the life insurance market generated a gross result of RON 8 million (EUR 1.9 million), 25% more than the same period in 2008.
Regarding the evolution of life insurance, the underwritings of AZT have decreased on this segment down to RON 66 million in the January-September period, under the circumstances of policies lapsing and of the reduction of the new-business volume.
"Even if we are not satisfied with the obtained results, after drawing a line, it is important that we remain one of the few profitable composite insurance companies, in difficult times for the business environment, in general, and for the insurance field, in particular. We will continue to put on the first place the financial security and the profitability of business", the General Manager of ALLIANZ-TIRIAC concluded.
Author: Andreea IONETE
on 10.11.2009
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