Floods and accidents drive Allianz-Tiriac profit down

Allianz-Tiriac, the leader of the insurance market, posted a 9 million-euro net profit last year, derived from the general insurance business. The profit was down 10% from 2004, despite a 30% increase in the amount of gross premiums underwritten on the market to a total of 220 million euros. The profit rate is nearly 4.1%. The insurer did not go public with the profit from the life insurance business. In 2004, a 10 million-euro profit from the general insurance business was posted, and 14 million euros in 2003. “The decline in profit was caused by the increase in the loss ratio, especially for auto insurance. At the same time, we settled higher claims for property insurance due to the floods last year,” says Marius Onofrei, head of Allianz-Tiriac”s communication department. The company witnessed a loss ratio of 75.7% on the general insurance market in 2005, compared with 71.1% in 2004 and 61.6% in 2003. Simply put, the loss ratio is the ratio between the claims settled and the gross premiums underwritten. Gross premiums underwritten on the auto insurance market (auto liability, comprehensive and green card policies) account for 75% of the company”s general insurance portfolio, that is 165 million euros. Gross claims settled on the auto insurance market stood at 105 million euros, almost 45% more than in 2004. Gross premiums underwritten by Allianz-Tiriac on the property insurance sector amounted to about 26.4 million euros last year. Gross claims settled on this market tripled from 2004, to a total of around 12 million euros. ZF