STATISTICS: ROMANIA, 1Q2018: life insurance business slightly slowing down after the outstanding 2017
In European currency, GWP figures show a bigger negative y-o-y difference, given the RON depreciation against euro. For example, total market GWP fell by about 4%, considering the results denominated in EUR.
The local branches of the insurers domiciled in other EU Member States wrote in 1Q gross premiums worth over RON 174.2 million, up 4% compared to the same period of the previous year.
Life insurance GWP amounted to RON 529 million, 1.7% less y-o-y, while on the non-life side they reached RON 1.998 billion, 1.36% down y-o-y, a press release issued by the market authority said. GWP figures don't include premiums written by branches of foreign insurers operating in Romania (FoE), as for example premiums written by Metropolitan Life (RON 73.13 million). Indemnities paid for life insurance (excluding partial and total maturities and redemptions) totaled RON 46.58 million, up by 22% y-o-y, while on the non-life segment paid claims amounted to RON 1.18 billion, 23% up y-o-y.
MTPL remained the main non-life insurance line, accounting for about 46.4% of the sector's GWP. Thus, premiums written for MTPL amounted to RON 927 million, the remainder up to the total A10 class (ROL 965.6 million) representing premiums written for the carrier's insurance for the goods transported or MTPL insurance underwritten on the territory of other EU Member States based on the freedom to provide services.
For the whole of the market, the annualized average MTPL premium decreased by about 19% in 1Q2018 compared to the same period of the previous year, amounting to RON 589 (EUR 126.45). Also, MTPL insurers concluded a number of 93,478 direct settlement clauses throughout the period, corresponding to GWP of RON 6.49 million.
At the level of the entire insurance market, the number of insurance contracts in force at the end of 1Q2018 was of 14,426,910, up 9% from the previous year.
The mediation degree in 1Q was of 60.8%, GWP intermediated by the insurance brokers decreasing by about 4.9% y-o-y, to RON 1.54 billion.
The beginning of 2018 was characterized by an improvement in solvency ratios. At the end of 1Q, all insurance companies fulfilled both the Solvency Capital Requirement (SCR) and Minimum Capital Requirements (MCR). The SCR and MCR rates at the market level imp0roved as compared with the previous year. The MCR rate at the market level increased by 5.68% while the SCR rate saw an increase of 0.43%.
1 EUR = RON 4,6576 (as at 31 March 2018)