The net losses on the market decreased by more than five times in 2009, to RON 103 million
After having reported losses for the past three consecutive years, it was only natural for the insurance market to report negative financial results for 2009, given the financial crisis. However, the net loss recorded last year on the insurance market was more than five times lower than the one in 2008, going down from RON 576 million to RON 103 million.
20 out of the 45 insurance companies reported profit in 2009, whereas 25 sustained losses, according to the data presented today by the Insurance Supervisory Commission during the MAIN CONFERENCE at FIAR 2010.
The cumulated value of the profit increased in real terms by 12.83% compared to 2008, reaching more than RON 315 million, whereas the total volume of losses was down by 44%, from RON 850 million in 2008 to RON 418 million in 2009.
"This repositioning of the financial results was influenced by the fact that 6 insurance companies that reported losses in 2008 had a positive result in 2009, stated Angela TONCESCU, President of ISC.
The insurance penetration share in the GDP was 1.8% in 2009, with a slight increase compared to the 1.77% in 2008, despite the decrease in underwriting. Thus, the degree of penetration of non-life insurance was 1.47%, with 0.33% for life insurance.
As for the insurance density, calculated as a ratio between the volume of gross written premiums and the number of inhabitants, it decreased by 2.38% compared to 2008, from RON 415.62/inhabitant to RON 413.27/inhabitant.
At the end of 2009, the paid-up share capital of the insurance companies amounted to over RON 3 billion, where 1 billion represented the share capital increases made by the shareholders of the insurance companies in 2009, despite the difficult economic context.
"As of December 31st, 2009, we had 8,575,377 non-life insurance contracts in place, namely 529,720 more than in 2008. On the same date, we had 7,732,947 life insurance contracts in place, representing 962,486 more than in 2008. The life insurance segment was however hit harder by the financial crisis than non-life insurance. The trend was anticipated both by the Insurance Supervisory Commission and by the insurance companies based on higher unemployment rates, lower income and uncertainties regarding the business climate", according to the data provided by the commission.
The main feature of the Romanian insurance market is the high concentration level. Thus, the turnover of the first ten insurers on the market totaled over RON 6.8 billion, namely almost 77% in the overall market.
Author: Andreea IONETE
on 25.05.2010
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