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Insurance Newsletter, No. 187, October 13, 2011

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INTERVIEW - TOP NEWS - ICAR - FINANCIAL NEWS - PRESS CUTTINGS - EDITORIAL - POINT OF VIEW - EDITORIAL - EVENTS - STATISTICS

TOP NEWS
AXA: Revenues decrease in life insurance and increase on P&C segment
by vlad.boldijar@mxp.ro, 2011-09-30
In the first six months of 2011, total revenues of AXA Group were down by 3%, to EUR 47 billion. "The decline was particularly visible in life and savings, where revenues fell by 6.6%. In the property-casualty segment, revenues grew by almost 3% thanks to price increases and our dynamic performance in both high-growth markets and direct sales", stated Denis DUVERNE, Deputy CEO, AXA Group, at the Presentation of 2011 half-year earnings.
More Продолжение

ING Insurance Group: Administrative costs caused major expenses in CEE
by vlad.boldijar@mxp.ro, 2011-09-30
In January-June 2011, the total underlying income from the insurance operations decreased to EUR 18.88 billion from EUR 20.54 billion in the same period of 2010. Also, the total premium income of ING Insurance decreased by EUR 483 million to EUR 14.51 billion in the first half year of 2011, from EUR 14.99 billion in the same period last year, announced the company. There were decreases of business in US (EUR 336 million), US VA business (EUR 222 million) and Benelux (EUR 177 million), and increases in Asia (EUR 190 million) and Central & Rest of Europe (EUR 61 million).
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Decrease in France, increase on International Markets for GROUPAMA
by vlad.boldijar@mxp.ro, 2011-09-30
In the first half year, the premium income of GROUPAMA amounted to EUR 8.2 billion, 3% less compared to 1H/2010. Life and health premium income amounted to EUR 3.8 billion, down by 10.1%, while property and casualty premium income came to EUR 4.4 billion, representing an increase of 4.2% in reported figures, compared to January-June 2010.
More Продолжение

PZU's net profit increased by EUR 99 million
by vlad.boldijar@mxp.ro, 2011-10-03
The first half of this year represented for the Polish insurance group PZU SA a net financial result of EUR 391.44 million, representing an absolute value increase of EUR 99.28 million, compared to 1H/2010, according to Interim Consolidated Report published by the Group.
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ROMANIA: Major European groups have resumed market share growth on the motor segment
by andreea.ionete@mxp.ro, 2011-10-03
The cumulated value of gross written premiums on motor insurance in the first half of 2011 of member companies of the major European insurance groups present in Romania (ALLIANZ, GENERALI PPF, GROUPAMA, VIENNA Insurance and UNIQA) was EUR 372.2 million. The figure represents 72.3% of all businesses registered in the motor insurance market (Motor Hull, MTPL and Green Card, added up), up 3 percentage points compared to the first six months of 2010. Last year, the market share of major profile groups had descended dramatically to 69%, from 80% a year before.
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VIG: The policy of merger of its own companies continues in Bulgaria
by vlad.boldijar@mxp.ro, 2011-10-11
After Romania, Poland and Georgia, VIG also announces the consolidation of its presence on the Bulgarian insurance market, through the merger of two companies specialized on the non-life segment: BULSTRAD (2nd place in the market at the end of 1H/2011) and BULGARSKI IMOTI (10th place).
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EULER Hermes operations in Romania will be integrated into a new structure: EULER Hermes Europe. From October 1st, the group operates in Romania through a new branch
by andreea.ionete@mxp.ro, 2011-10-04
Following reorganization activities of EULER Hermes (EH) in Europe, starting October 1st, the activity of the new branch of EULER Hermes in Romania, namely EH Credit Insurance Belgium Bruxelles, Bucharest Branch, was launched. It will replace the German branch (EH Kreditversicherungs'AG Hamburg), whose activity ceases with the same date, and will undergo in the coming months a rebranding process, to align with the name EULER Hermes Europe. The company also announced its intention to transfer the entire insurance portfolio in Romania of the German branch to the branch EH Credit Insurance Belgium.
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Strong profit in second quarter for KBC Group
by vlad.boldijar@mxp.ro, 2011-09-30
KBC Group ended the second quarter of 2011 with a consolidated net profit of EUR 333 million, compared with a net profit of EUR 821 million in the previous quarter and EUR 149 million in the year-earlier quarter. "On a cumulative basis, this means that the KBC group has generated a net profit of EUR 1.15 billion in the first half of 2011, almost double the corresponding figure for 1H/2010", according to the earnings statement published by the company.
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Azerbaijan: Possible delay in applying tax incentives for insurers, reinsurers and banks?
by olesea.serghiescu@mxp.ro, 2011-10-13
For preventing the effects of the global crisis upon the financial market of Azerbaijan, on January 1st, 2009, came into force the Law regarding the "Increasing the degree of capitalization of banks, insurance and reinsurance companies", that provides "their release from paying the income tax and share capital increase until 2012", said Leila ABDULLAEVA, Expert, Center of Analytics, TREND Agency.
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Exchange of experience in Tirana between supervisory authorities from 10 countries
by vlad.boldijar@mxp.ro, 2011-10-13
Albanian Financial Supervisory Authority (AFSA) in cooperation with the Hungarian Financial Supervisory Authority (HFSA), held on October 10th-11th, in Tirana, the second regional meeting with the Insurance Supervisors from Central Europe, Eastern and South-Eastern Europe countries (CESEE). The meeting had a wide presence from homologue supervisory authorities from Albania, Austria, Hungary, Macedonia, Moldova, Montenegro, Poland, Romania, Serbia and Slovakia.
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INGO Group has underwritten about EUR 985.4 million in the first half of 2011
by olesea.serghiescu@mxp.ro, 2011-10-07
According to preliminary data, the volume of gross premiums underwritten by insurance companies that are part of the INGO group, in the first six months of the year, amounted to RUB 39.8 billion (EUR 985.4 million), up by 11,3% compared to the same period in 2010; at the same time, the claims paid by insurers fell by 2.6%, to RUB 25.0 billion (EUR 620.3 million).
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A.M. BEST assigns rating "B+" to Russian reinsurer UNITY Re
by oleg.doronceanu@mxp.ro, 2011-09-30
UNITY Re, the leader of the reinsurance market in Russia, received the financial strength rating of "B+" (Good) and an issuer credit rating of "bbb-" from the international agency A.M. BEST, reads the press release issued by the company. The outlook assigned to both ratings is stable.
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VIG analyzes the Polish company WARTA before making an offer
by mihai.cracea@mxp.ro, 2011-09-29
VIENNA Insurance Group, the largest insurer in Central and Eastern Europe, could begin next month the due-diligence process in the Polish company WARTA, before making a concrete offer.
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RESO Garantia increased by 22% in the first six months of 2011
by olesea.serghiescu@mxp.ro, 2011-10-04
In the first six months of 2011, RESO Garantia has underwritten premiums worth RUB 21.7 billion (EUR 549.2 million), up by 22% compared to the same period of 2010. During the reported period, the amount of claims paid by the insurance company increased by 18% compared to 1H/2010, reaching RUB 10.7 billion (EUR 271.4 million).
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Georgia: VIENNA Insurance Group plans to merge its companies GPI Holding and International IRAO
by olesea.serghiescu@mxp.ro, 2011-10-10
VIENNA Insurance Group, main shareholder of insurance companies GPI Holding and IRAO in Georgia, plans to start the merger of the two companies, so that the Austrian group will own over 25% of the market share, according to representatives of the National Bank of Georgia.
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ICAR FORUM NEWS
Marius BULUGEA, General Manager, PAID: "Mayors should at least make people sign that they are aware about the compulsory home insurance"
by andreea.ionete@mxp.ro, 2011-10-10
According to a set of studies conducted by international experts, the damages that would occur in the case of an earthquake similar to the one in 1977 would amount to EUR 4.8 billion, according to Marius BULUGEA, General Manager of PAID.
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Marinela NEMES, ISC: "The fine is not the only penalty"
by mihai.cracea@mxp.ro, 2011-10-10
"The law regarding compulsory home insurance has a very high social significance and time has shown that the insurance premium is not a tax. There have already been granted compensations to those who suffered damages", said Marinela NEMES, Director of the Legal Department, Insurance Supervisory Commission.
More

Mesut YETISKUL: "The campaign for selling mandatory household insurance has had two significant effects upon the household insurance segment"
by oana.radu@mxp.ro, 2011-10-04
The moment of review for the household insurance in Romania is getting closer, as the results of mandatory household insurance system and not only are going to be reviewed on the occasion of ICAR - International CAtastrophic Risks Forum 2011.
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Credit Europe Asigurari
FINANCIAL NEWS
OECD launches new report on measuring well-being
by daniela.ghetu@mxp.ro, 2011-10-13
Do you like your job? How's your health? Are you spending enough time each day with your children? When you need them, are your friends there for you? Can you trust your neighbours? And how satisfied are you, overall, with your life?
A new OECD publication named How's Life? , looks at these questions and others, offering a comprehensive picture of what makes up people's lives in 40 countries worldwide. The report assesses 11 specific aspects of life - ranging from income, jobs and housing to health, education and the environment - as part of the OECD's ongoing effort to devise new measures for assessing well-being that go beyond Gross Domestic Product.

Investment sustains OECD GDP growth in Q2 2011, but slowdown in private consumption continues
by daniela.ghetu@mxp.ro, 2011-10-13
Real GDP in the OECD area grew by 0.3% in the second quarter of 2011. Gross fixed investment was the main contributor, adding 0.2 percentage point to overall growth. The contribution from private consumption continued to slow in the second quarter of 2011. At 0.1 percentage point the contribution from private consumption fell to its lowest level since the second quarter of 2009. The negative contribution from net exports reduced overall GDP growth by 0.1 percentage point.

IMF encourages the planned unification of financial supervision authorities in Lithuania
by daniela.ghetu@mxp.ro, 2011-10-13
Lithuanian economy has staged an impressive recovery, based on a supportive global environment and determined policy adjustment, is the main finding of the Concluding Statement afetr the IMF Staff recent visit in Vilnius. After contracting sharply in 2008-09, economic activity grew by 1½ percent in 2010 and a robust 6¼ percent in the first half of 2011. The export-led recovery broadened to domestic demand and employment growth accelerated. The recovery reflected both the global upturn and strong policy action, including sizeable fiscal consolidation, the maintenance of confidence in the banking system, and significant wage adjustment that underpinned gains in competitiveness.

Greek recovery not expected sooner than 2013
by daniela.ghetu@mxp.ro, 2011-10-13
Greek the recession will be deeper than was anticipated in June and a recovery is now expected only from 2013 onwards, concludes the final document released after the fifth joint review mission carried out by he European Commission (EC), European Central Bank (ECB), and International Monetary Fund (IMF) in Greece. There is no evidence yet of improvement in investor sentiment and the related increase in investments, in part because the reform momentum has not gained the critical mass necessary to begin transforming the investment climate.
EDITORIAL

Well deserved thanks

Lots of changes have emerged in the CEE and CIS countries during the recent crisis years, but whatever and however deep they were, as far as the insurance business is concerned at least one thing didn't change: the growth potential lies still here, in the young markets of the Central and Eastern Europe and former soviet countries. Read more

vlad.boldijar@mxp.ro


BCR Asigurari de Viata
ALICO

POINT OF VIEW

Anton NEDVEDSKY
External Relations Manager
Belarusian Association of Insurers

Despite the steady growth of insurance market, insurance density in Belarus is rather low, only USD 49. The share of insurance premiums in the country's GDP is 0.85 percent.
In the first half, the insurance market has the traditional view - more than 80 percent of insurance premiums were provided by the state-owned companies. This is due to the fact that the state gives to its insurance companies a number of significant preferences that allow state-owned insurance companies dominate the market. Read more
JLT

Klime POPOSKI
President of the Council of Experts
Macedonian ISA

In times of crises the solution is introduction of innovations, through creation of new products that will satisfy the needs of the clients for insurance with optimal coverage and fair price. This is complemented with introducing new efficient canals of distribution with the lowest costs per product. Also, their strategy was focused on direct access to customers. Read more

ASTRA ASIGURARI

EVENTS
3rd Baden-Baden XPRIMM Reception
Launch of XPRIMM Insurance Report
October 23rd, 2011, 19.00 - 21.00
Kurhaus Casino, Runder Saal

Be the first to receive a FREE COPY of The 5th Edition of XPRIMM Special Report - containing the CEE, Turkey, Russia & CIS insurance markets results for 1H/2011.
Moreover, you will also get your unique password that will provide Full Free Access until December 31st to www.xprimm.com. Read more


32nd Baden-Baden Meeting 2011
October 23rd-27th, 2011
Baden-Baden, Germany
For details: www.badendirectory.com
Baden-Baden XPRIMM Reception
October 23rd, 2011
Kurhaus Casino, Runder Saal
Baden-Baden, Germany
Organizer: PRIMM Magazine - Insurance&Pensions
For details: www.xprimm.com
WorldPensionSummit 2011
November 2nd-4th, 2011
Amsterdam, Olanda
Partener Media: PRIMM Asigurari & Pensii
For details: worldpensionsummit.com
Health Insurance Conference - Republic of Moldova
November 14th, 2011
Codru Hotel, Chisinau, Republic of Moldova
Organizer: Media XPRIMM
Fraud Management in Motor Insurance - Conference
November 14th, 2011
Codru Hotel, Chisinau, Republic of Moldova
Organizer: Media XPRIMM
European Banking & Insurance Fair 2011
November 15th
IFEMA - Feria de Madrid, Madrid, Spain
6th European Pension Funds Congress
November 15th, Frankfurt am Main
Organizers: EFRP and MALEKI Group
Media Partner: PRIMM Publications
For details: www.malekigroup.com
EIOPA Conference
November 16th, Frankfurt am Main
Organizer: MALEKI Group
Media Partner: PRIMM Publications
For details: www.malekigroup.com

International Insurance Forum 2012
March 5th-6th, 2012
Istanbul, Turkey
Organizer: Media XPRIMM si Istanbul Underwriting Center
INTERVIEW

Ramunas BARAVYKAS
Deputy Chairman
Lithuanian ISC

As the economy continues to grow, insurance business - in particular corporate segment - will generate more revenue. Clearly, assessing the global trends, we cannot exclude the possibility of a recessionary scenario, but even in this case, the insurance sector for some time will have the same trend because of inertia and the adverse developments will affect next year results. Read more


Kunden Broker
OXYGEN Insurance

STATISTICS
Albania
Armenia
Bosnia Azerbaijan
Bulgaria Belarus
Croatia Georgia
Czech Rep. Kazakhstan
Estonia Kyrgyzstan
Hungary Moldova
Kosovo Russia
Latvia Turkmenistan
Lithuania Tajikistan
Macedonia Ukraine
Montenegro Uzbekistan
Poland  
Romania  
Serbia  
Slovakia  
Slovenia  
Turkey  


PRESS CUTTINGS
AZERBAIJAN: Results of Olympiad among Azerbaijani insurers dismayed the sector regulators

BELARUS: The insurance market increased by 54% in the first eight months

BOSNIA: Insurance companies pay BAM 25m

BULGARIA: Bulgarian Insurer Euroins Premium Income Rises 5.7% Y/Y in Sept

CROATIA: Croatia's HPB Invest Fund Gets Nod To Acquire Over 20% of Croatia Osiguranje

CZECH REPUBLIC: Largest Czech health insurer VZP runs out of cash

HUNGARY: CIG Pannonia strategic private pension fund partner integrates peers

LATVIA: Survey: 50% forget to buy OCTA policy in time

MACEDONIA: Macedonian Insurer Vardar Osiguruvanje Renamed to Triglav Osiguruvanje

RUSSIA: Construction risks insurance market - trends and issues

SLOVENIA: Slovenian Insurers 2010 Gross Premiums Written Flattish at 1.9 Bln Euro - Regulator

UKRAINE: New MTPL policies will be issued starting October 11

THE EDITORIAL STAFF:

President: Sergiu COSTACHE CEO: Adriana PANCIU
Business Development Director: Alexandru D. CIUNCAN
New Media Director: Mihaela CIRCU

Project Manager XPRIMM.COM: Daniela GHETU
Coordinating Editor: Andreea IONETE
International Column Coordinator: Vlad BOLDIJAR
Senior Editors: Vlad PANCIU, Oleg DORONCEANU
Editors: Oana RADU, Mihai CRACEA, Andreea STATE
Junior Editor: Olesea SERGHIESCU

Accounts Manager: Georgiana OPREA
IT Department: Octavian GRIGOR, Dorin PALADE, Cosmin ARMASESCU

e-mail: xprimm@primm.ro
PUBLISHED BY: Media XPRIMM

Reproduction or use without permission of editorial or graphic content, in any manner, is prohibited. The Editorial Staff is not responsible for the truthfulness or the accuracy of the presented data. The Editorial Staff has the right to present the data in it's own manner. In what concerns the use, in any manner, of the information contained in this e-mail, Romanian laws apply.

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