Astra-Uniqa, poised to enter unit-linked insurance

Astra-Uniqa, an insurance company controlled by Austria’s insurance group and businessman Dan Adamescu, will enter the market of unit-linked insurance early next year. Unit-linked insurance entails life insurance policies linked to investment funds that besides covering risks invest the premiums paid by customers in funds managed either by the insurance company, or by an external manager. “We’ve made this decision because there is demand on the market for these products and Uniqa is experienced on this market and manages several funds,” explains Radu Mustatea, the company’s general manager. He states the company considerably boosted its sales of life insurance this year, whereas in 2006 they accounted for less than 1% in the insurer’s turnover. “The increase followed the management changes at the life insurance unit and the launch of new products,” says Mustatea. He estimates the company will end this year in the red and turn into the black in 2008. In H1, the insurer reported 57m-euro gross underwritten premiums, slightly higher against the same period in 2006.