The business of ING Asigurari de Viata increased by 4.5% in Q1, but profit reduced by half
 In the first quarter of 2010, the profit earned by ING Asigurari de Viata has halved compared to the level registered in the same period of the previous year, reaching RON 15.8 million (RON 31.3 million in Q1/2009). Also, the volume of gross written premiums of ING in the first three months of the year stands at the value of RON 136 million, up 4.5% compared to RON 130 million, as it was recorded in the same period of 2009.
General Manager of the company, Cornelia COMAN, said that both the ING initiatives designed to improve customer services and benefits, but also the level of professionalization of the sales force, and the investments generated by significant developments of the activity of Pillar III pensions had an impact on the profit.
"The first three months of 2010 have shown a mature attitude of Romanian consumers, consolidated after 2009, that showed increased awareness regarding the need of protection and the need to save money for future. Thus, among ING customers we notice a significant reduction of the number of those who choose to give up insurance contracts, and also a higher appetite for products that offer multiple benefits", said Cornelia COMAN.
Continuous decrease in the number of ING customers who choose to give up insurance contracts confirms the positive evolutions noticed at the end of last year. Thus, the total number of contracts terminated and repurchased in the period January-March 2010 fell by 13% compared to the end of 2009 and by 21% compared with Q1/2009.
Regarding changes in the top of ING customer preferences, in the first quarter there was a revival of interest for unit-linked insurance, which holds a 40% share of the policies newly signed in the first quarter, compared to 22% at the end of last year. According to Cornelia COMAN, appetite was enhanced by the excellent yields obtained in 2009, by the high flexibility of these products and by the measures the company has adopted, embodied in reducing certain types of taxes for the unit-linked contracts.
The amount of benefits paid by ING Asigurari de Viata in the first quarter for insured events and matured contracts was RON 12.82 million, of which the portfolio of concluded contracts paid benefits of RON 4.13 million, 5% more compared to the similar period of 2009.
In the first three months of 2010, the average level of the insured sum (which expresses the level of protection and is a sum established from the start and guaranteed by the contract) also increased, to over RON 45,029, compared to RON 39,816, in the same period of the previous year.
"Like I said, we expect that in 2010 the effects of the difficult period of 2008-2009 will also be felt, at international level, so that measures taken by the Government following the agreement with IMF will determine us to keep a reserved attitude regarding the future evolutions. We hope that the period we have all been through will make us more responsible regarding our financial future", concluded the General Manager of ING Asigurari de Viata.
Author: Andreea IONETE
on 12.05.2010
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