FITCH: CEE exposure will hit Austrian insurance groups
 Exposure in the region of Central and Eastern Europe of the Austrian insurance groups, such as VIENNA Insurance or UNIQA, could drag their profitability behind, amid fewer sales, increases in fraud and currency translation losses, warns the rating agency FITCH.
Exposure in Romania of the two groups is significant, local companies of VIG generating here 15.5% of the group's CEE businesses, while UNIQA achieves over 10.5% of operations in the region in our country.
The CEE region generated, at the end of 2008, 40% of the revenues of the Austrian insurance market, considerable exposure, leading to increased risks in the industry, FITCH signals.
"The negative prospects reflect the uncertainty over Austrian insurers' exposure to central and eastern Europe, the lower investment result going forward and the sustainability of the economic recovery in addition to the prospect of further setbacks on international capital markets,", the FITCH analysts explained.
Romania is the fourth market for VIG, by size, after Austria, Czech Republic and Slovakia, the Austrian group holding here the market leader position, with a 30% share and with underwritings of EUR 606.7 million in 2009.
UNIQA, through UNIQA Asigurari, is the fifth European group present on the Romanian market, based on the business volume, and it ended last year with a market share of 5.44% and with underwritings of almost EUR 115 million.
Author: Andreea IONETE
on 15.04.2010
Comment this article
0 comments
|
