Towards EUR 2.5 billion
 • During the first 9 months of 2008 the Romanian insurance market grew by 13.54% up to an amount of EUR 1.8 billion
• In absolute value, the market grew by EUR 220 million
• The total amount of the claims paid during the analyzed period exceeded EUR 800 million.
• Motor Hull insurnace grew more than 30% and gained 5 percentage points share in the market.
• The gross technical reserves for non-life insurance amounted EUR 1.6 billion covered by assets in a share of 118.4%
During the first 9 months of the current year the Romanian insurance market overcame a total amount of business of EUR 1.8 billion. As compared to the value recorded during the simillar period of the past year, the nominal growth in euro amounted 13.54% almost twice lower than the value of the same indicator recorded at the end of September 2007. In the frame of keeping the actual growing trend the value of the Romanian insurance market might reach by the end of 2008 a total volume of EUR 2.5 billion.
In absolute value the insurance market grew with EUR 220 million. On the life insurance field the absolute growing amounted EUR 55 million while the non-life insurance classes cumulated a consolidate growing which exceeded EUR 164 million. The increasing in the Motor Hull segment overcame EUR 172 million, the MTPL insurance grew with about EUR 11 million while the Property insurance grew with EUR 36 million. The Credit and Warranties insurance recorded a decrease by EUR 50 million.
Even if the MTPL segment grew by EUR 11 million, the nominal growth recorded on the mention insurance class was about 3% with about 10 percentage points less than the market average. This development conducted to the decrease of the mentioned insurance class in the total amount of gross written premium.
After the first 9 months of the previous year, the mentioned insurance class held 23.26 from the insurance industry, by the end of the corresponding period of the current year, the MTPL insurance class represent 21% from the total amount of premiums, with 2 percentage points less than during the first three quarters of the preceding year.
As a consequence of the decreasing recorded on the credit and warranties sector, the mentioned insurance field lost about 3.5 percentage points share in the market. The credit and warranties segment owns a share of 2.45% from the total amount of the market.
The growing of more than 30% recorded on the Motor Hull insurance, more than double than the market average, increased the share of Motor Hull insurance with 5 percentage points in the market, up to 40.17% share in the market.
You can see the actual structure of the consolidate portfolio on insurance classes during the analyzed period in the above chart. Other changes in the market portfolio on insurance classes except the one already mentioned took place also on the life insurance field +0.7 percentage points up to 19.8% share from the market. Also the Property Insurance class gained 0.6 percentage points up to a share of 11.92% from the market amount.
Premiums amounting EUR 1.8 billion generated paid claims amounting EUR 800 million
The insurance companies paid, during the analyzed period, claims which amounted more than EUR 800 billion, rising in euro with about 14.17% as compared with the value of the same indicator recorded during the corresponding period of the past year. The claims dynamic overcame by little the rising recorded on the gross written premiums segment.
The claims paid for Motor Hull insurance grew, in an absolute value, with more than EUR 140 million more than the value of the mentioned indicator recorded during the first three quarters of the past year.
By the end of the third quarter of 2008 the insurance companies owned gross technical reserves for non-life insurance amounting about EUR 1.6 billion. The mentioned reserves were covered by assets amounting EUR 1.9 billion thus in a share of 118.4%. For the life insurance activity the gross technical reserves amounted about EUR 900 million covered by assets that totaled about EUR 1 billion meaning a covering of 115.14%
Changes in TOP 10
The first ten companies in the market ranked by market share totaled, during the analyzed period, gross premium that exceeded EUR 1.45 billion meaning about 79.3% from the life insurance. Thus, the concentration degree of the market decreased by 1 percentage point as compared to the value of the similar indicator recorded during the first 9 months of the past year.
The absolute value of the premiums written by the first 10 companies in the market grew by EUR 157 million. 7 companies from Top 10 recorded growing rates below the market average thus losing market share. In absolute value, the evolution recorded among the top 10 companies differs from EUR -28.71 million up to EUR +65.22 million. The first three companies in the hierarchy kept its position while 4 among the top 10 companies change their places. BT Asigurari left the top 10 and switched places with ARDAF company which came back in top 10.
ALLIANZ-TIRIAC is still the market leader. The company recorded a nominal increase in EUR by 2.03% with about 11 percentage points below market's average. ALLIANZ-TIRIAC wrote gross premiums amountig more than EUR 283 million, with EUR 5.64 million more than the value recorded by the company during the corresponding period of the past year. The below the market growing rate evolution of the company lead to a market share loss of about 1.74 percentage points. The claims paid by the company overcame EUR 149 million and the market share reached 15.44%.
OMNIASIG strengthened its second place in the market by accomplishing the most significant increase in the market. The company wrote during the analyzed period more than EUR 252 million, with EUR 65 million higher than the figures recorded during the first 9 months of the past year. OMNIASIG recorded a nominal growing in euro with about 35% and gained 2.17 percentage points increasing its market share up to 13.75%. The total amount of claims paid by OMNIASIG exceeded EUR 133 million.
With a total amount of business close to EUR 158 million the third place in the market is held by ASIROM which recorded a nominal growth in EUR of about 9.15%. The evolution with about 4 percentage points less than the market average conducted to a decrease of the company's market share with about 0.35 percentage points down to 8.59% market share. ASIROM grew with EUR 8.6 million during the analyzed period.
ASTRA-UNIQA is the company that accomplished the highest leap in places of the Romanian insurance companies. ASTRA climbed 4 positions from the 8th place up to the 4th place in the classfield. The company recorded a nominal growth in EUR of 61% as compared with the figures recorded during the first three quarters of 2007. ASTRA-UNIQA also gained the highest percentage points added to market share (+2.22) increasing its market share up to 5.3% from the market. The total amount of the premiums written by the company during the mentioned period overcame EUR 137 million, with more than EUR 52 million as compared to the figures recorded during the similar period of the previous year.
ASIBAN occupies, as at the end of the similar period of 2007, the fifth position in the profile companies. The amount of the gross written premiums in the analyzed period was near EUR 129 million, decreasing with 4.84% compared with the figures from the end of September 2007, which means underwritings with EUR 6.55 million less. The company lost 1.35 percentage points from the market share.
ING Asigurari de Viata also kept its position in top. The company occupies the sixth place in the chart, with underwritings of more than EUR 113.75 million, increasing with over 2.86%, with over 11 points above the market average. ING Asigurari de Viata has obtained premiums with more than EUR 3.17 million compared with the results from the similar period of the previous year, and in these conditions, it lost 0.64 points from the share, reaching to 6.19% from the market.
BCR Asigurari has registered, in the mentioned period, a nominal decreased of 20.8% and cedded three positions in the Romanian insurers chart. In the first three quarters of this year, the company wrote with almost EUR 29 million less than in the same period of the previous year, the amount of premiums decreasing with almost EUR 109 million. The claims paid by the company have summed over EUR 69 million, while the market share has decreased with 2.6 points, to 5.94%.
UNITA also lost a position in the chart, reaching on the eight place, with just EUR 1 million distance from the seventh place. EUR 107.82 million is the value of the gross written premiums of UNITA in January-September 2008. UNITA, a company recently brought by UNIQA, has recorded a growth of the business figure with 5.6%, expressed in European currency, with almost 8 points under the market average. In the analyzed period, the company lost 0.44 points market share, and paid claims of over EUR 79 million.
GENERALI remains unmoved in the chart. The company occupies the 9th position, as in September 2007. The amount of underwriting made by GENERALI is near EUR 88 million, increasing 2.88%, with almost 0.5 point, under the market average. Thus, the company holds 4.8% from the insurance market, with 0.5 points less than in Q3/2007. Expressing in absolute value, GENERALI has written with EUR 2.46 million more. The amount of paid claims surpassed EUR 40 million in the analyzed period.
By reaching the highest relative growth in Top 10, ARDAF has succeeded in climbing a position and to make a comeback between the first top 10 companies from the insurance market. The company has written EUR 78.5 million, which represents an increase of business with over 130%, compared with the similar period from the previous year. In absolute terms, ARDAF has raised the amount of business with more than EUR 44 million. With a growth ten times higher than the average, ARDAF has doubled the market share from 2.11% in Q3/2007 to 4.27% in Q3/2008. In the first three quarters, the claims paid reached almost EUR 34 million.
Profitability?
The first half of this year came with positive signals concerning the profitability of the market, or, better saying, of diminishing the losses. In the first six months of the year, the total loss of the market was almost 5 times smaller than the one from the firts 6 months of 2007. Unfortunately, the available figures are not sufficient to conclude on an evolution of the market from this point of view. Nevertheless, we present the results received from some of the companies who provided theis financial result.
Thus, from the 16 companies that published figures regarding this chapter, 11 have obtained profit, while 5 have finished the period with losses. Among the Top 10 companies who supplied the data, UNITA has a loss of over EUR 5 million.
From the companies with profit, we mention: AIG Life + EUR 11.8 million, OMNIASIG + EUR 7.79 million, ING Asigurari de Viata + EUR 7.25 million, BCR Asigurari + EUR 3.37 million, BCR Life + EUR 1.87 million, GARANTA + EUR 0.74 million, CREDIT EUROPE Asigurari + EUR 0.37 million EUR.
Author: Alex ROSCA
on 04.12.2008
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