ING Viata drops 9% in the first nine months
 The business of ING Asigurari de Viata during the first nine months of this year decreased by 9%, to RON 387.6 million, compared to RON 426.8 million in the same period last year, amid lower appetite of customers for unit-linked products.
Company's gross profit was RON 75.5 million, double to that obtained in the same period of 2008, of RON 32.4 million, in the conditions of a 11% growth for assets under management, up to RON 1.72 billion, in the first three quarters.
In the last three months we have seen a decline in the number of contract cancellations, the decrease of financial availability and the unemployment being the main reasons that have emphasized the phenomenon in the first half of this year. In the period July - September, however, the situation improved, and ING announced a 17% reduction on the number of lapsed contracts compared to the second quarter, respectively a 23% one compared to the first three months of the year.
In addition, in September, the number of customers who have re-enforced existing contracts increased by 25% compared to August, current year.
These positive evolutions have generated a net increase of 14% of the portfolio of ING Asigurari de Viata's contracts, compared to the second quarter of the year, complemented by an increasing interest in protection products, the insurer noting an increase in the share of traditional type contracts, from 34% to 58% in the first three quarters of this year.
"We notice, on one hand, the constant decrease in the contracts lapsing number and a higher appetite of the customers for protection products. On the other hand, the perpetuation of the financial impact of the crisis on people and companies, coupled with the instability of the Romanian political environment, makes us more reserved regarding a rapid recovery of the insurance market, up to the positive evolution area", Cornelia COMAN, General Manager of ING Asigurari de Viata said.
"The reasons why clients choose to buy a life insurance remain unchanged regardless of economic conditions. If we analyze the preferences of those who bought a life insurance policy at ING in the first nine months, we see that the desire to ensure their children a secure financial future is an increasingly important objective, given the fact that the share of these products has increased to 29% in 2009, from 25% in the same period last year", COMAN added.
Meanwhile, the amount of benefits paid by ING Asigurari de Viata for insured events and contracts that reached maturity during January - September 2009 was RON 39.4 million, up 15% compared to the same period of the previous year.
Author: Andreea IONETE
on 12.11.2009
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