Insurance market up 28% in Q1

The insurance market has gained 28% in ROL in the first quarter, totalling 5,978bn ROL. If it keeps progressing as fast as it did in Q1, the companies could see revenues up to $580-$590 million by yearend, therefore tenfold higher than ten years ago. “The premiums collected in the first three months of 2003 amounted to 5,978bn ROL, as highlighted by the filings of the insurance companies. Considering the gross premiums collected in the same time in 2002 were worth 4,674bn ROL, the nominal growth was of 27.9%,” Mirela Antohi, Insurance Supervision Commission  (CSA) press officer said. If taking the about 17% inflation between both periods into account, the actual growth is of 9%-10%. The very slow progress of the US currency against the ROL over the last year brings the growth in dollars up to 25%, from $144 million to $180 million. Fanel Plopeanu, Omniasig deputy general manager says he expects 40% overall growth for the market by yearend. A significant contribution to the market growth in Q1 came from the massive increase in the credits for durable goods, prompted by rate cuts. ZF