AIG Romania turnover falls, but profit rises

AIG Romania, the local general insurance subsidiary of the American International Group, saw its gross underwritten premiums down 3% in the first half of the year, compared with the same time last year, to 73.3 million RON (20 million euros). Over 70% of the turnover derived in the first half was accounted for by property insurance, where gross underwritten premiums amounted to around 51.4 million RON (14 million euros). Compared with the same time last year, underwriting fell by around 6% on this segment. AIG Romania works exclusively with corporate clients, and the volume of business derived each year depends both on new contracts, and on whether existing contracts are renewed or not. The insurer offers all types of general insurance, apart from auto insurance, which is the growth driver for insurance companies on the local market. Although AIG Romania’s turnover was slightly down in the first half, its profit increased. The insurer posted net profit worth 3.3 million RON (0.9 million euros) in this period, 4.7 times higher than in the first half of 2007, when net income amounted to 0.7 million RON (over 0.2 million euros).