Ardaf transfers less for reinsurance

The value of premiums transferred for reinsurance purposes by Ardaf halved last year, although the company”s revenues grew by 30% in RON, according to its annual report, published on the RASDAQ. Reinsurance means insurance bought by insurance companies, which transfer some of their underwritten premiums to a reinsurance company and, in case the insured risk occurs, the reinsurer has to pay for part of the damages. In 2005, Ardaf trasferred premiums worth almost 9.5 million RON (2.6 million euros) for reinsurance purposes, a 52% drop against 2004, when such transferred premiums amounted to 19.6 million RON (over 4.8 million euros). The insurer registered underwritten premiums worth almost 233.9 million RON (64.6 million euros) last year, 227.7 million RON (62.9 million euros) of which from general insurance and some 6.2 million RON (1.7 million euros) of which from life insurance. The percentage of premiums transferred for reinsurance purposes from the total underwritten premiums dropped from almost 11% in 2004 to 4% last year. ZF