Romania's insurance market to idle or inch slightly next year on financial turmoil, player saysPublish date: 15-12-2008
The Romanian insurance market could remain still or increase below 10 percent next year following the economic crisis, the most affected segments being Casco and credit insurance, said the general manager of insurance company EuroIns Romania, Bogdan Stan.
The insurance market could reach 2.5 billion euros at the end of the year, Stan estimates, up 15 percent versus the previous.
Casco and credit insurance will be affected next year especially by the brake of lending, said Stan, adding the life insurance market will decrease too in 2009 as Romanians have a lower purchasing power at a higher unemployment rate.
Romanian insurers posted gross premiums written (GPW) of 6.7 billion lei in the first nine months, up 25.6 percent versus the same period in the previous one. In 2007, players recorded GPW of 2.15 billion euros, 25.2 percent higher compared to 2006.
EuroIns Romania revised downwards turnover target for 2009, to 53 million euros, following the financial crisis, according to Stan. The company initially planned to reach GPW of 70 million euros in 2009.
Stan estimates a 40 million euro turnover for EuroIns this year, up 40 percent compared to last year. The insurer registered 200,000 euros profit in 2007, after 450,000 euros losses in the previous year.
The company hiked business by 42 percent year-on-year in the first nine months, to 94 million lei, underpinned by boost on the agriculture segment.
EuroIns Romania, former Asitrans, uses only the new name starting June, a year after the Bulgarian group Eurohold took over the company. Eurohold spent 12.5 million euros last summer to take over more than 75 percent of Asitrans Asigurari and the majority stake of Asitrans Leasing.
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