ING Asigurari de Viata: business fell by 5.4%, profits increased 2.4 times in 2009
The volume of gross written premiums of ING Asigurari de Viata in 2009 stands at RON 527.1 million, compared to RON 557.5 million in 2008, down by 5.4% (the decrease of the company's business, in European currency, is of 17.83%, from EUR 151.38 million in 2008 to EUR 124.40 million last year). However, the leader of the Romanian life insurance has achieved a gross profit of RON 92.07 million (EUR 21.25 million), 2.4 times higher than the level of RON 38.25 million registered in the previous year.
On the life insurance segment, the value of the financial assets under management has reached over RON 1.79 billion at the end of 2009, up 18.8% compared to the previous year.
Also, the value of the benefits paid last year by the company, for insured events and contracts that had reached maturity, was RON 52.96 million (EUR 12.5 million), with over 7% higher than in 2008.
In the portfolio of new contracts concluded at ING in November 2009, there is noted a growth of the customer preferences for products that offer protection and guaranteed returns. Thus, in the total of the policies underwritten by ING last year, the traditional type insurance has a share of 78%, up from 65% in 2008, the company said.
"2009 marks a turning point in the life insurance consumers' attitude, that understand more and more that insurance is primarily an effective tool to ensure their loved ones with the financial protection for key risks, and, secondary, an investment product", said Cornelia Aurelia COMAN, General Manager of ING Asigurari de Viata and President of the Administration Board of ING Fond de Pensii.
Regarding the lapsing rate, it decreased continuously throughout last year. Thus, the total number of contracts terminated and re-bought in the period October-December fell by 26% compared to the first three months of the year, by 21% compared to the second quarter and, respectively, by 4% compared to the third quarter.
Meanwhile, the number of people who have chosen to reinforce the contracts after, due to financial difficulties, had to cancel their policies, has increased.
"At ING, the proportion of clients who returned last year to the company, buying a new contract, after in the past they had to give up insurance, was of about 10% of the total new policies concluded in 2009. I expect that in the next period this trend will be maintained and, once the economy starts to recover, it will become more visible", said Cornelia Aurelia COMAN.
The average annual premium allocated to clients who bought a life insurance policy at ING in 2009 was RON 1,251, 3% more than the previous year.
Financial plans for children were the most requested products in the portfolio of ING Asigurari de Viata in 2009, with a share of 29%, 45 more compared to 2008. The category of products for children is followed by composite life insurance (which combines the protective component with the long-term savings one), with a share of 27% of the portfolio of contracts concluded in 2009, and by protection plans, with 23%.
Also, in terms of unit-linked products, the company noted that customer preference for such products was maintained in 2009 at about the same level as in 2008, this category of investment products totaling 12% of the portfolio of insurance concluded in 2009 by ING Asigurari de Viata.
"The excellent yields obtained and the flexibility these policies offer are arguments that make me believe that, in the future, we will witness a more important revival of this category of products", said the General Manager of the company.
Author: Andreea IONETE
on 25.02.2010
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