Insurance on course to top one billion euros

The insurance market rose by 40% in the first six months of the year to reach 644 million euros, according to data released by the Insurance Supervision Commission. This means the market should hit 1.1-1.2 billion euros by the end of the year.

In RON, the increase was 31%. The results, which were far above industry expectations, were aided by the expansion in lending, higher car sales and the so-called flat tax, which left the population with more money for life insurance.

“The level of one billion euros we estimated last year will be exceeded. However, even if the market is rising, we have to say that autumn will still be a difficult time for insurance companies, which must adapt to the new regulations as part of the process of adjusting to European legislation,” explained Nicolae Crisan, chairman of the Insurance Supervision Commission.

Gross underwritten premiums from general insurance rose by 38% in euros, to reach 506 million euros, while for life insurance they grew by 53%, to 136 million euros.

Allianz, Asirom and Omniasig, the top three companies in general insurance, had cumulated premiums of over 48% for this segment. ING, AIG Life and BCR hold the top three positions on the life insurance segment.

Profits were reported by 25 companies from the insurance market for the first half, with 16 companies reporting losses. Total income surged 73% in euros to reach 245 million euros, with total losses reaching 91 million euros.

The most profitable companies in the first half were Allianz-Tiriac (6.3 million euros in net income), BCR Asigurari (5 million euros), Asiban (3.5 million euros) and ING Asigurari (3.5 million euros).