Romanias largest insurance group VIG turns to loss in 2011.

By bne IntelliNews March 30, 2012
Vienna Insurance Group (VIG) said its Romanian operations turned to a EUR 12.8mn loss last year from a net profit of EUR 28.5mn in 2010. VIG is a market leader in Romania, where it operates four insurance companies - Astra, Omniasig and the two branches of BCR Asigurari (life and general). VIG said on its website it holds around 29% of the Romanian insurance market. The group's profit in Romania slipped into the red last year after halving to EUR 28.5mn in 2010 and EUR 24.2mn in 2009 from EUR 57.5mn in 2008. With revenues of EUR 509mn last year, the Romanian units of VIG accounted for 5.6% of the Austrian group's total revenues, down from 7.7% in 2008. The sharp deterioration of VIG's business in Romania was prompted by a combination of weaker underwritten premiums and higher payments made to car insurance recipients. Thus, the general insurance premiums underwritten last year dropped by EUR 33mn (7.6% y/y) to EUR 402mn, while the premiums for the life insurances increased by only EUR 7.8mn (8.4% y/y) to EUR 101mn. All in all, the group's revenues decreased by more than EUR 25mn. Furthermore, the payments made to car insurance recipients increased by EUR 14.9mn to EUR 79.2mn, further damaging the group's profitability.

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