Loss of over EUR 50 million for insurers in 2007
Romanian insurance market posted significant loss in 2007, especially due
to motor insurance segment claims rate.
According to statements made by Cristian CONSTANTINESCU, President of UNSAR
and also General Manager of ALLIANZ-TIRIAC, insurance companies have reached
total loss of over EUR 50 million.
"The general trend now oriented towards market share to the detriment
of profitability as well as motor insurance claims rate have generated
a significant
loss exceeding EUR 50 million on the whole in 2007", Cristian CONSTANTINESCU
estimated.
Nevertheless, some market signals show that local insurers might change
their strategies to follow a more profit-oriented activity.
"I think pressure coming from the shareholders of the Top 10 companies
is rising and will intensify even more if the markets aims at a sustainable
development on a medium to long term", the quoted official added.
Though audited results are not yet known, a number of important companies
reported losses for 2007. Thus, ASIROM registered a EUR 9 million loss,
while ARDAF lost over EUR 17 million. Meanwhile, ASTRA-UNIQA posted negative
results of EUR 21 million and UNITA - EUR 5 million.
Profitability remains a challenge for Romanian insurers. Thus, in 2006
only 20 companies gained profit, according to the Insurance Supervisory
Commission report, a total value of EUR 51.88 million.
At the same time 21 companies posted losses of EUR 72.14 million, leading
to a aggregate financial result of EUR 20 million.
Author: Oleg DORONCEANU
on 13.05.2008
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