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.
Notice: Undefined index: social in /var/www/html/application/views/scripts/index/article.phtml on line 259

Related Articles

Romania to spend EUR 37mn in 2013 to close down loss-making coal mines.

Romania's government has earmarked RON 163mn (EUR 37mn) worth of subsidies for 2013 under a programme aimed at closing down the loss-making mines of local company CNH located in the southwestern ... more

Romanias Hidroelectrica sells nearly 0.3TWh of electricity on free market.

Romanian state-controlled hydropower company Hidroelectrica sold on Thursday, March 21, in several separate contracts a total of 0.3TWh of baseload electricity deliverable between April 1 and the ... more

Romania to start privatisation of cargo railway company on April 6-8.

The Romanian government will publish the privatisation call for freight railway company CFR Marfa immediately after the consultants complete their work, probably on April 6-8, Romanian transport ... more