Losses worth €4 million on the insurance market

Local insurance companies registered losses totaling €4.2 million in the first half of 2008 on the general insurances segment. However, this sector could become profitable by the end of 2008, after two consecutive years of losses.

Half of local insurance companies were profitable in H1, but market players have different opinions regarding profit in 2008, since insurers should change calculation methods for auto liability insurances (RCA) reserves, which could lead to new tax increases for RCA policies.

"The net losses are five times lower in the first six months of 2008 compared to H1 2007," proving the insurance market is on a growth trend, the President of Insurances Supervision Commission (CSA), Angela Toncescu, said.

Insurer's net profit totaled €33 million in H1, 50 percent higher year-on-year. 22 companies posted profit and 21 posted losses. The general insurances segment registered total losses worth €21.88 million. In 2007, the insurances companies net result was negative, at €75.8 million.

Business Standard