Insurers lose 20m euros

For the first time in five years, 2006 saw the insurance market experiencing net losses, which amounted to almost 20 million euros, according a report by the Insurance Supervision Commission (CSA) on last year, which was released on Wednesday. Total losses seen in 2006 by insurance companies on the domestic market exceeded net profits by 39% reaching around 70 million euros (almost 244 million RON). In the same year, the insurers’ net profits stood at 50 million euros (175.4 million RON). In 2005, the reverse was true: profits exceeded (by 39%) the losses cumulated by companies on the market. Against 2005, last year losses increased by 147% in euros, in other words they were more than double, given that profits rose at a five times slower rate, by approximately 29%. Insurance company Ardaf reported the biggest losses last year by far, almost 35 million euros (122.3 million RON). The company was put under special supervision by the CSA, due to the decline seen by solvency and liquidity indicators, which were below the limit set by legislation.