AIG Romania sees 9m euros in premiums

Life insurance company AIG Romania, part of the American International Group (US) logged premium-related revenues worth 372.1bn ROL (some 9 million euros) in the first six months. This is 5.3% more than at the end of June 2003, while revenues progressed 17.8% to 383.8bn ROL.

If compared with the 12% rate of inflation from June 2003 through June 2004, revenues increased approximately 6% in real terms, while the gross premiums underwritten fell 1%.

“June 30 is not the best date for AIG Romania to file half-year financial reports, because the number of contracts concluded is lower during the summer. Financial results may at first look like they are not positive, which is especially true for the premiums underwritten, but we will witness a rebound because contracts previously concluded will be renewed in the meantime. On the other hand, results are in line with this year’s spending and revenue budget,” said AIG Romania’s chief executive Mihnea Tobescu.

As for the net profit, this index fell 42.1% to 13.4bn ROL (more than $400,000), compared with 23.1bn ROL in mid last year.

“The net profit is calculated under the Romanian Accounting Standards. However, we use the GAAP standards for our reports to AIG, which point to a net profit of approximately $1.5 million between December 2003-May 2004, the first half according to AIG’s internal practices,” Tobescu explained.

The Romanian subsidiary plans to make 572.4bn ROL in revenues from premiums underwritten during the AIG 2004 financial year (December 2003-November 2004).