Moldova: 6% decrease for the insurance market in 3Q/2009

8 December 2009 — Oleg DORONCEANU
Insurance companies from the Republic of Moldova underwrote, in the first nine months of this year, MDL 595,5 million (EUR 39,9 million) of gross premiums, down by 6% compared to the same period of last year. On the other hand, insurance claims raised by 43,3%, to MDL 270,9 million (EUR 18,1 million), according to National Commission of Financial Markets (NCFM).
 
"The situation is due to a decrease in insurance demand of the population and, at the same time, caused by an increase of claims paid on the motor segment", noted Vladimir STIRBU, the Director of Insurance Department of NCFM.

Mandatory insurance classes hold the biggest weight in the total volume of written premiums, amounting 42.9%, followed by property insurance (36.6%) accident and illness (14.2%) and liability (5.9%). The most important claims were paid on the property (52.6%) and health insurance segment (30.2%).

At the same time, total assets of the companies climbed by 16,2%, to MDL 711,7 million (EUR 47,7 million) and the paid-up capital rose by 18,7%, totalizing MDL 371,6 million (EUR 24,9 million).

Nevertheless, "11 companies will be obliged to increase their capital to MDL 9 million (approximately EUR 600 thousands) untill April 6, following legal requirements, and other 4 players will face serious difficulties to reach this limit, although they've reported positive results", added STIRBU.

At the same time, the profit of the insurers represented MDL 74,2 million (EUR 5 million), down by 50% compared to last year, and 8 companies out of 27 had a negative result in the total amount of MDL 12,1 million ( EUR 812 thousand).
 
Moldavian insurance market continues to be highly concentrated, thus, the first 2 companies own a 55% share. The insurance market leaders are MOLDASIG and ASITO, with 32.3% and 22.8% market share, followed by GRAWE Carat - 10%, DONARIS - 6.1%, and MOLDCARGO - 4.4%.

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