AIG Romania sees profits rise

AIG Romania insurance company made $3.1 million net profit in 2004, according to the American accounting standards, compared with the $1.7 million in the previous year. Gross premiums subscribed went up 18% to $17.5 million (13.5 million euros). The year 2004 is already over as far as AIG Romania is concerned, because the company files its spending and revenue budget report to the parent company between December 1 and November 30. “We made higher profit on almost every line of our business because we had better underwriting, we had bigger retention. In terms of gross premiums subscribed we are in line with the anticipated budget,” chief executive Mihnea Tobescu explained. When an insurance company assigns part of the risk to a reinsurer, it also assigns part of the premium, so that it makes money off the fees only. Talking about segments, Tobescu says the financial products, that is liability policies for bankers or top management, witnessed quite a significant growth. The company does not sell insurance against loan defaults. The bulk of the premiums subscribed came from property insurance, which only increased 6% ZF