Alexandrescu, AIG: Insurance market will slide into idleness in 2009

Life insurance market will stagnate in 2009, but AIG Life will return profit, said Theodor Alexandrescu, managing director of the company that reported profit of 62 mln lei at the end of last year.

“Life insurance market will stagnate in 2009, but AIG will outperform the market. We will everything possible to defend our leading position in guaranteed life insurance market,” said Alexandrescu.

Thus, AIG Life Insurance Romania announced revenue of 62 mln lei at end-2008 or 16.8 mln euros, double from 30.93 mln lei a year earlier, as the incomes rose 30% up to 286 mln lei.

Alexandrescu added that the profit was driven last year by the effective operating cost management but also by the customer retention rate. The AIG clients who relinquish their insurance policy are below 30%.

Moreover, the earning drivers were fueled by the diversification of insurance product distribution means. The company expanded its sale network in 2008, strategy that continued in January-February 2008 in Satu-Mare and will march further in Sibiu and Targu-Mures.

The main focus of the company this year will be the expansion of health insurance product segment, AIG’s managing director said.

At the end of 2008, AIG Life Romania had 750,000 clients and 15.09% market share.

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