Ardaf grows 67% on general insurance

Ardaf Insurance Reinsurance Company has reported 67% higher year-on-year revenues from gross underwritten general insurance premiums for 2004, according to preliminary financial data.

Gross premiums underwritten in the general insurance segment at the end of 2004 amounted to 1,745 billion ROL (43 million euros), while in 2003 they reached 1,045.3 billion ROL (27.8 million euros).

In the life insurance segment, the year-on-year increase of gross premiums underwritten was 38%, representing an increase to 62 billion ROL (1.5 million euros) from 44.9 billion ROL (1.2 million euros).

“This year, we’ll have to focus more on the life insurance segment, since starting January 1, 2006 the life/general insurance split will happen”, said Octav Manastireanu, the chairman of the Ardaf board.

According to Manastireanu, strong growth was seen in 2004 in the segments of civil professional liability insurance (particularly in terms of malpractice by doctors) and insurance for buildings and content.

The total value of gross premiums underwritten by insurance customers in both the life and general insurance segments last year amounted to 1,807 billion ROL (44.5 million euros), some 65.7% more than the previous year.

“We tried to reduce the proportion of car insurance in our insurance portfolio due to the high damage rate,” said Manastireanu.

Around 4-5 years ago, car insurance accounted for about 90% of their entire portfolio. This has since fallen to 75%, according to preliminary data, added the Ardaf board chairman.
ioana.leaua@zf.ro