Life, health and property insurance segments had the strongest contribution to the business growth. GWP increased overall by 10%, reaching close to EUR 82 million.
Virgil SONCUTEAN, CEO of ALLIANZ-TIRIAC Insurance, said:
"The crisis we are going through confirms that our strategy of maintaining a balanced business mix is the right one. The balanced portfolio allows us to more easily absorb the shock generated in the economy by the new coronavirus, and the excellent results of the first quarter will help reduce the impact that began to be felt in our sales, especially since the second quarter. We are not immune to this crisis, but we are prepared both operationally and financially to overcome these challenges. Allianz-Tiriac Insurance continues to remain strong for its customers, employees and partners. Our team is ready to stand by our customers even in adverse conditions."
Non-motor insurance sales increased by 16% y-o-y in the 1Q2020, and came to represent 44% of GWP in the non-life insurance segment. Motor insurance sales rose slightly.
Premiums underwritten for life and health insurance recorded an advance of 31%, respectively 25%. Cumulatively, non-auto and life and health insurance, two strategic business lines for ALLIANZ-TIRIAC, accounted for over 50% of total sales at the end of March 2020.
In the first quarter of 2020, ALLIANZ-TIRIAC Insurance paid claims to customers and third parties of over EUR 40 million, 4.4% more than the same period in 2019. Starting with the end of March, a reduction in the number of damage notices was observed, on the car segments. This trend was determined by the lower traffic, as well as by a possible postponement of the claims reporting and ascertainment during the state of emergency.
The combined rate at the level of the entire company improved in the first quarter of 2020 and was below 90%, amid a rigorous discipline of operational costs, but also due to the portfolio mix. As a result, the operating profit went up by over 43% y-o-y.
Note: calculations made at an average exchange rate for Q1 of1 EUR =4.7958 lei