Four insurers account for 99% of the net loss on Romania's insurance market in 2008

Insurers in Romania reported a net loss of 575.78 million lei (156.3 million euros) in 2008, twice as much as in 2007, and 99 percent of it was accumulated by four insurers - Ardaf, Uniqa, BT Asigurari and Asiban, the market watchdog CSA.

Insurance companies in Romania posted a net loss of 253 million lei in 2007, the second consecutive year in which they reported losses.

Insurers recorded a net loss of 666.45 million lei on the general insurance segment, while the life insurance segment remained profitable, with a positive result of 92.7 million lei at market level.

The four companies that cumulated 99 percent of the net loss at market level were taken over last year by foreign financial groups, who announced major changes in the development strategies of the companies, including the merger of BT Asigurari and Asiban, both taken over by the French group Groupama. 

The companies significantly hiked their reserves, especially those set up for general insurance, on a climb in expenses with damages.

The net profit reported by lucrative companies stood at 266.58 million lei last year, while the aggregated volume of the losses amounted to 842.36 million lei, CSA data show.

NewsIn