ING Nederlanden slows down, yet remains market leader

ING Nederlanden Asigurari de Viata (ING Nederlanden Life Insurance) collected 445bn lei in H1 premiums this year, up 55% as compared with the year-ago period, that is an actual growth of nearly 20%, without taking the 37% inflation into account.

“The market was undoubtedly influenced by other major competitors in H1 this year, as they are trying to position themselves, but Nederlanden consolidated its position on the market, though,” sources in the company told Ziarul Financiar, in an attempt to explain why the sales growth pace did not maintain as high as in 2000.

The company in 1999 sold 238bn lei’s worth, accounting for 47% of the market, only to have its gross premiums collected double in 2000, that is 625bn lei, reaching 60% in market share. ING Nederlanden entered the Romanian market in 1997, when it sold some 4bn lei in policies, only to account for 22% market share in 1998 and 43bn lei in turnover.

Of the first six months’ receipts, 40% were collected from the sale of traditional products, while the remaining percentage was collected from the sale of unit linked products.

The company has invested about $30 million in Romania so far, and has 68 offices opened in 63 cities across the country.

ING Nederlanden Asigurari de Viata has $28.1 million in share capital, with the latest increase operated by capital inflow from the main shareholder in February this year. The company has more than 120,000 clients, for which it manages some 180,000 policies. It sells insurance policies through its own insurance consultants (more than 2,000 people).

ING Nederlanden Asigurari de Viata is part of the ING Group, which has more than 90,000 employees, a 50 million-client portfolio and is currently operating in 65 countries.

With 75.5bn euros in market value and 11.98bn euros in net profit in 2000, ING Group ranks 9th among the leading financial institutions worldwide.

The insurance market in Romania, although a small one ($50 million in 2000, compared with more than $1bn in Poland), has become more and more crowded lately.