AIG Romania's gross profit up 78%, to 2.5m euros

AIG Romania, the local general insurance subsidiary of the AIG group, saved by the American state from collapse with 170 billion euros in overall financial aid, ended last year with gross profit worth around 9.1 million RON (2.5 million euros), up 78% against 2007, according to non-audited results. Gross premiums underwritten by the insurer, which works only with corporate clients, amounted to over 100.3 million RON (27.3 million euros), 4% above last year’s level. “The profit outgrowing premiums was due to the fact that 2008 was a year with lower overall claims settled. The number of claims settled rose, but their overall value was down,” said Mihnea Tobescu, general manager of AIG Romania. In terms of value, most claims settled come from the goods insurance segment, which accounts for the largest share in the company’s business. However, in terms of frequency, the most claims settled are generated by the group accident segment and by the segment of travelling abroad.