ING Nederlanden to become profitable in 2002

The year 2002 will be ING Nederlanden Asigurari de viata’s first profitable year, compared with the $2.3 million losses estimated for 2001 and the $4.5 million level registered in 2000.

“It is a well known fact that setting up a life insurance company entails large investments, which are recovered in seven years on the average, but ING Nederlanden will start making profit in five,” Violeta Ciurel, general manager of the company, said.

The company on Tuesday celebrated four years in business on the Romanian life insurance market, announcing it had collected 365bn lei in premiums over the first five months of this year, up 52% since the same time last year.

The company at the end of 2000 registered 57% in market share compared with 8% in 1997 when it entered the market.

“The 2001 targets are consolidating our market leader position, diversifying our portfolio, while the long-term goal is providing integrated financial services on the individual and group insurance market, through distribution channels selected by the clients,” Ciurel added.

What does this channel selection done by the clients mean? “I think the clients in Romania are beginning to resemble those on the mature markets, and whoever succeeds in meeting their demands will be the winner.

In our opinion, these channels are, apart from the traditional ones, the Internet, the call centre (advice provided to clients over the phone) or bancassurance,” Ciurel explained.

The company was the first to announce in May this year it had launched the cross-sale of banking products and insurance-bancassurance products, in co-operation with ING Bank’s retail division.