Asirom expects to step into the black after two years of losses

Asirom, the third largest company on the insurance market, expects to see a profit this year, according to general manager Boris Schneider, after in 2007 and 2008 the insurer cumulated around 28 million euros in losses. “Our goal for this year is profit, profit, profit. After the first quarter, we are already seeing a profit of a few million euros. For this year, we have budgeted substantial income, and a combined ratio of under 100%,” Schneider says. The combined ratio is one of the most important ways to measure an insurance company’s profitability. This ratio comprises of the value of claims settled plus the policy acquisition cost (brokers’ and agents’ commissions) plus administrative costs, divided by the value of premiums collected. A ratio above 100% means the insurance sale is unprofitable because costs exceed revenues. In the case of Asirom, the combined ratio is of over 99% at present, with head of the company saying he wants to reduce it to 97%.