If you don't exist in Romania, you don't exist
in CEE, either
One of the largest insurance groups in the world has officially launched,
on the 12th of May, its operations in Romania. Awaited for nearly
10 years, AXA enters our country, counting on life and health insurance.
French giant's decision to invest here despite the current economic
context is based on the fact that Romania is one of the largest markets
in CEE, in terms of number of inhabitants, which is creating a long-term
picture of the life and health insurance potential. Also, as stated
by Cyrille de MONTGOLFIER, CEO of AXA Central & Eastern Europe, "if
you don't exist in Romania, you don't exist in CEE, either".
AXA's investment in Romania is a positive sign for the insurance
industry and also for the economy as a whole. A sign of trust in
Romania's potential, a sign that things are about to change and that
serious business can be done in our country...
A sign that strategies must be made looking towards the future...
How was the first quarter of 2011 for the company? How did the underwritings
evolve and what were the main positive evolutions? Based on these
results, what do you expect from 2011?
Our new warranties insurance product had a positive impact
on the market, CERTASIG being one of the few insurance companies
that offer this type of policy, and this product is based on
a strong reinsurance policy.
General Manager, CERTASIG
James GRINDLEY: We are pleased to confirm an excellent start in terms
of underwritings volume in the first quarter of 2011, especially
in February and March, when a remarkable growth was registered.The
portfolio continues to diversify with products with a low claims
rate, thereby improving the profitability of the company, and this
trend has also manifested for or work points strategically located
in Constanta, Timisoara and Cluj. Sales through brokers still represent
over 80% of the volume of written premiums, and this maintains our
confidence in the success of this collaboration.
XPRIMM: The motor segment has no longer been the “growth
engine" of the market, on the contrary, the Motor Hull decrease
is one of the most significant negative evolutions in 2010. What
do you think are the 2011 trends on the motor insurance class?
J. G.: The Romanian insurance market registered a surprising
decrease of the written premiums on the Motor Hull class during 2010.
Only if the auto market, especially leasing, resumes its upward trend,
will the Motor Hull written premiums increase significantly. The
volume of the Motor Hull policies concluded by CERTASIG has been
reduced mainly because of the new adopted strategy regarding the
introduction of a less conventional system of franchise. Our goal
is to offer the lowest Motor Hull rates in the Romanian insurance
market only in the conditions in which a relatively high franchise
is accepted, thus making a more rigorous selection of our clients.
last preparations for FIAR 2011
Monday, the 23rd of May represents the start for the conferences
and special events of FIAR - The International Insurance-Reinsurance
Forum, the most important spring event dedicated to these markets.
This year's edition takes place between the 23rd and the 26th of
May and it includes 7 specialized conferences and several networking
For those who are not able to take part to the Forum, www.1asig.ro, XPRIMM
TV and the FIAR 2011 XPRIMM Newsletters will constantly deliver,
live from Sinaia, Romania, the hot news on all topics related to
the insurance and reinsurance markets.
18.2% MTPL decrease led to a 6.6% decline of the insurance market
in the first quarter
The insurance market in Romania ended the first quarter of 2011 with
a 6.6% decrease compared to 1Q/2010, with a volume of underwritings
of RON 2.14 billion, according to data released by the Insurance
Supervisory Commission (ISC) on the 12th of May, 2011. Amid a decline
of 18.2% of the MTPL insurance, general insurance segment ended the
first three months of this year with underwritings amounting to RON
1.7 billion, down by 8.84% compared to the similar period of 2010. "If
the MTPL line had remained at the same level as in 1Q/2010, the general
insurance underwritings would have decreased by only 0.9% in the
first quarter", said Angela TONCESCU, ISC President, during a seminar
held on the 11th of May, 2011. On life insurance, underwritings have
increased by 3.34% in 1Q/2011, to a total of RON 433.83 million.
relies on organic growth to enter Top 3 life insurers by the new
One of the largest insurance groups in the world has officially launched,
on the 12th of May, its operations in Romania. Expected for nearly
10 years, AXA enters our country, with a dynamic strategy, built
around the brand "we are redefining standards", counting on life
and health insurance.
"Entering the Romanian market is a real challenge for AXA CEE. This is due
to the very high growth potential of the life insurance market in Romania. Otherwise,
without the presence in Romania, our strategy at CEE level could not be applied",
said Cyrille of MONTGOLFIER, CEO of AXA for Central and Eastern Europe.
Asigurari: net profit RON 3.86 million and 1.5% more underwritings
in Q1/2011. The 43% increase on property outweighs the motor market
ASTRA Asigurari ended the first three months of this year with an
underwritings volume of RON 335 million (almost EUR 80 million),
up by 1.5% in comparison with Q1/2010, of which RON 332 million were
represented by the non life segment, increasing by 1.5% as well.
The company also announced a net profit of over RON 3.86 million
for the first three months of the current year.
5 million loss for VIG in Romania in the first quarter
Romanian companies of the Austrian VIENNA Insurance Group VIG have
registered, cumulated, total losses of EUR 5 million in the first
quarter of the current year, after in 1Q/2010 they had achieved a
profit before tax of EUR 7.41 million, representing an over 18% increase.
This result comes amid increasing claims costs, under the circumstances
of an extremely poor combined ratio, of 110%, according to the group's
report. Underwritings of VIG in Romania totaled EUR 144.5 million
in the first quarter of 2011, 2% less in European currency, compared
to 1Q/2010, when they had registered a 12% decrease.
confirms: Mariana DIACONESCU will be the new General Manager of ASIROM
Mariana DIACONESCU was nominated on the 16th of May by the Supervisory
Board of VIENNA Insurance Group for taking over the position of General
Manager of the insurance company ASIROM, the appointment being currently
subject to approvals from relevant authorities, stated VIG representatives
for XPRIMM Newsletters.
The negative evolution of motor lines was partially offset by a 14%
increase on non-motor segment
ALLIANZ-TIRIAC Asigurari ended the first three months of 2011 with
a total income of RON 256.4 million, down by 7% in comparison with
underwritings of RON 277 million in the same period of time of the
previous year. The profit before tax, calculated according to IFRS,
stayed within positive grounds, recording RON 3 million, announced
the company. The influence of underwritings decrease in the motor
insurance activity was partially offset by a positive evolution of
the general non-motor insurance portfolio.
"The achievements from the first three months are within our expectations.
We have recorded an income growth for the whole non-motor portfolio, and this
evolution reduces the dependence level of our results from the motor insurance
activity. Regarding profitability, we are seeing the first signals towards improvement
of operational results on motor insurance classes, due to tighter prudential
underwriting policies for these lines", stated Rangam BIR, General Manager,
business slightly falling in the first three months, ING Asigurari
de Viata estimates a high appetite for protection and guarantees.
2011 will, however, be difficult
ING Asigurari de Viata's GWP volume registered a slight decrease
in the first quarter of 2011 to LEI 133.5 million, (from LEI 136
million for the similar period of 2009), as a consequence of the
reduction of the number of single premium unit-linked policies sold
in the first three months.
At the same time gross profit was LEI 11.3 million, 28.7% below the
15.6% level registered in the first three months of 2009, as the
company announced on the 5th of May, 2011. Nonetheless, the positive
signals observed by the company were: the doubling of policy renewals,
a decrease in the number of redemptions and terminations by 36% and
a high appetite for protection and guarantees.
- comprehensive insurance software that bridges the gap between modern
technology and deep industry functionality
ORACLE strategy for this year is fully influenced by Solvency II
Directive which represents the most significant regulatory change
in the insurance sector for over 30 years and its impact will be
felt in every facet of insurer's business, according to Andrea BERKOVA,
Insurance Solution Specialist, ORACLE. As Official Partner of this
year's Edition of FIAR - International Insurance Reinsurance Forum,
ORACLE will present its strategy in the CEE region for the insurance
and private pensions industries within the International Markets
Conference, taking place on May 24 at the Sinaia Casino.
Asigurari decreases on non-life, but increases by 13% on
life insurance in the first quarter
GENERALI Asigurari has registered a 13% growth on the life
insurance segment in the first three months of this year, reaching
an underwritings volume of RON 23.7 million, announced the
company on the 16th of May, 2011. These results lead to a significant
increase of the life segment share in the portfolio, up to
25%, 7% higher than in the first quarter of 2010.
Hungarian branch recorded EUR 10.6 million in underwritings
ASTRA Biztosito, the branch opened in Budapesta based on the
establishment right of the insurance market's leader in Romania,
underwrote in the first three months of this year premiums
worth EUR 10.61 million - HUF 2.8 billion, announced the company
on May the 10th of 2011, within a conference in Budapest. Paid
claims and reserves set goes up to little over EUR 1 million
- HUF 268 million.
EUROPE Asigurari: Collaboration with independent brokers
continues to be our strategic priority
The difficulties caused by the financial crisis over the last
years lead to a tighter collaboration between insurers and
brokers, as they understand the importance of a relationship
based on trust and mutual respect. The Client - Broker - Insurer
relationship is one of the subjects to be debated during this
year's edition of the Brokers' Day at FIAR - International
Insurance-Reinsurance Forum. Already a tradition now, CREDIT
EUROPE Asigurari supports the conference as Main Partner and
speaks about the importance of an efficient collaboration with
Worldwide expands the AIR Pan European Earthquake Model
coverage on 24 additional countries in Europe, including
In 2011, AIR Worldwide's catastrophe modeling software platforms
will feature a significant expansion of the AIR Pan European
Earthquake Model, adding 24 countries throughout Western, Central
and Eastern Europe, including Romania, according to Milan SIMIC,
Senior Vice President of the company. Thus, the model will
encompass a total of 30 countries and will feature an updated
estimation of the region's seismicity based on the latest research
and the model's damage functions will better reflect regional
variations in construction practices and building codes over
| VIDEO: CERTASIG
executive management is extremely pleased with 1Q results
Last Wednesday 11th May, CERTASIG organized their third edition
of the traditional broker cocktail party for their business
partners and collaborators. More than 50 representatives of
brokerage companies with whom CERTASIG work attended the exciting
event at RAMADA North Hotel. The evening was relaxed with a
short break for speeches. The main topics of the evening included
very pleasing Q1 results and future projects for 2011.
Brokers Day - challenges and solutions
Despite a good evolution lately, the brokerage activity on
the Romanian market is not lacking challenges. "Some of these
depend on the legislator, as an example the health reform or
Pillar II for employees from national safety, premium deductibility
for life insurance or mandatory household insurance - all these
being in different stages of evolution that might create multiple
opportunities for the brokerage market players and not only",
Alexandru APOSTOL, General Manager, MAXYGO Broker, stated for
CSEPELI is the new CEO of CIG Romania
Sandor CSEPELI was named the new CEO of CIG Romania, replacing
Istvan KADAR, who accepted another position within CIG Group,
in Hungary. Before joining CIG Romania, Sandor CSEPELI was
CSO (Chief Sales Officer) within ING Insurance Hungary, his
main responsibility being the development of multi - channel
distribution type: sale force, brokers and bancassurance.
of common data base on motor hull insurance remains a disadvantage
Lack of a common data base on motor hull for all the motor
insurance companies, available in real time, is a major disadvantage
for the Romanian insurance market. That is because of the fact
that without necessary information, underwritings, claims and
anti-fraud departments cannot take decisions that can prevent
and stop events with financial loss consequences.
and Asian markets boosted AEGON's new-business
In the first quarter of 2011, the new-business volume registered
by the Dutch group AEGON on the life insurance segment was EUR 501
million with higher sales in the New markets (Central and Eastern
European and Asia) and the Netherlands, offset by less favorable
evolutions in the UK. The Dutch insurer ended the first three months
of 2011 with total sales worth EUR 1.41 billion, with a slight decrease
compared to the similar period of last year, when sales amounted
to EUR 1.44 billion.
Re developed its business in CIS and CEE
Reinsurer EASTERN Re, one of the market leaders in Russia and CIS
region, increased its share of external business to 25% of the total
portfolio in 2010, meaning a 159.5% growth of underwritings outside
the country. In 2010 EASTERN Re collaborated with 37 countries (from
30 countries in 2009), including those in CIS and Central Europe,
the amount of taken risks recording a significant increase on these
"Due to the participation at FIAR - International Insurance Reinsurance
Forum, EASTERN Re met worldwide leaders and specialists in insurance and at the
same time developed collaboration relationships with the profile companies in
Romania", declared Dmitry DANILENKO, Chancellor of General Director, EASTERN
Re for XPRIMM Publications.
Re: We evaluate the opportunities in order to increase our presence
and involvement in the region
Factors such as the drastic effects of the global financial crisis
in these markets, and take-over activities of local players by large
European groups, have made it even more difficult for new entrants
to penetrate these markets. Consequently, MILLI Re would like to
continue our activities in these markets, to maintain our support
to existing clients and evaluate the opportunities in order to increase
its presence and involvement in the region. Also in line with this
strategy, MILLI Re is attending and supporting as Strategic Partner
the 14th edition of FIAR - International Insurance Reinsurance Forum,
taking place on May 23-26 in Sinaia, Romania.
capital for BULSTRAD VIG
The Bulgarian insurance company, BULSTRAD, is planning a capital
increase, by issuing new shares, on the 18th and 26th of May, 2011,
with EUR 3.1 million, according to the Bulgarian Stock Exchange web
10-15 pc, Bucharest stock market growth potential in 2011
The Stock Exchange could grow by 10 to 15 percent this year, say
ERSTE-BCR analysts, the potential being calculated based on the estimates
on Government credit, RON/EUR exchange rate and yield of specific
euro Government binds, and most of the information indicating the
end of recession being included beforehand.
oil reserves, third largest in EU
Romania's estimated oil reserves of 600 million barrels are
the third largest in the European Union, Capital.ro reveals.
The quantity represents around 11 percent of total EU reserves.
Great Britain has the largest oil reserves in the EU (3.1
billion barrels) followed by Denmark (1.1 billion barrels).
pulled Romania out of recession
The 0.6 pc-rise in GDP in the first quarter of 2011 was the
result of a 40 pc-rise in exports, largely backed by DUSTER,
whose exports rose by 500 pc in Q1, an analysis of "Ziarul
Financiar" indicates. Figures show that the DUSTER pushed Romanian
exports, which reported a boom in the first quarter of 2011,
compared to the same interval of 2010, rising by 40 pc, at
EUR 11 billion.
EXIMBANK's best offer for companies running EU funded-projects
EXIMBANK offers companies which run EU funded-projects all
the classical banking products - letters of intent, pre-financing,
co-financing -, but the bank's strong point on this segment
is the fact it can offer state guarantees for all forms of
loans needed to draw European funds, the bank officials stated,
during the conference titled "Solutions for enhancing the absorption
of European funds".
seeks to build new plant in Romania
BOSCH is set to build yet another factory in Romania, a Greenfield
investment, and to expand the component manufacturing unit
at Blaj, Mediafax cited Brigitte EBLE, General Manager at Robert
BOSCH Tool Corporation, the Romanian subsidiary of the BOSCH
Group, to have said on the 17th of May, 2011.
THE EDITORIAL STAFF:
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Editor in Chief: Mihaela
Scientific Advisor: Daniela
International Column Coordinator: Andreea
Senior Editors: Vlad
PANCIU, Oleg DORONCEANU
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ALECU, Olesea SERGHIESCU
Accounts Manager: Georgiana
IT Department: Octavian
GRIGOR, Dorin PALADE, Cosmin ARMASESCU
PUBLISHED BY: Media
Reproduction or use without permission of editorial or graphic
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information contained in this e-mail, Romanian laws apply.
Copyright©2011 Media XPRIMM
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|FIAR - International Insurance-Reinsurance Forum
May 23rd-26th 2011
Organizer: Media XPRIMM
Official web-page: www.fiar.ro
|The 3rd International Istanbul Insurance Conference
May 25th-26th 2011
Organizer: Istanbul Underwriting Center
Official web-page: www.iiicturkey.com
|3rd CEA International Insurance Conference - "Insurance
reform: opportunity or threat?"
June 16th, 2011
Divani Apollon Palace & Spa, Vouliagmeni, Athens, Greece
Organizer: CEA - Comite Europeen des Assurances
For details: conference.cea.eu