Romania's biggest insurer: 4.5% decline in first quarter

Allianz-Tiriac, Romania’s largest insurer reported premiums written down 4.5% in first quarter, down to 351.3 million lei, and a pre-tax profit of 35 million lei.

Representatives said the company’s operations attuned to the general trend of the insurance market, which is expected to drag down insurers’ revenues from gross written premiums in 2009.

In life insurance segment, Allianz-Tiriac has successfully managed to boost gross premiums written by 7.4%, up to 27.8 million lei in first quarter 2009, from 25.9 million lei a year earlier.

“Same as the entire insurance industry, we feel the effects of the crisis, but we manage to withstand better the pressures generated by the deterioration of market conditions”, said the managing director of Allianz-Tiriac Insurances, Cristian Constantinescu.

The growth was driven primarily by traditional life insurance products (life policies that cover the risk of death and safe capital investment in the event of financial market turbulence).

As for general insurance segment, revenues from gross written premiums shrank 5.4%, from 341.9 million lei in first quarter 2008, to 323.5 million lei in first three months of 2009.

The car insurance product range that hold the majority share in Allianz-Tiriac non-life segment, have taken a different pathway: casco segment dropped 2.2% of revenues from premiums (from 186.7 million lei in Q1, to 182.5 million lei in Q1 2009) while for the liability coverage, premiums increased by one million lei (+1.4%), up to 68.7 million lei in first quarter 2009 (from 67.7 million lei in prior-year period).

The freeze of car parks’ development process is fueling a contraction of demand for new casco policies. At the same time, dissolution of a number of leasing contracts is encouraging consumers to terminate the insurance policies before maturity. These are the main reasons that led to a slight decrease in gross premiums written for own damage policies.

As for general liability insurances for damages to third parties resulted from car accidents, the good performance of Allianz-Tiriac sales reflects the segmented offer program developed by the company. The rigorous correlation of premiums with the driver’s risk profile and features of the car lifts Allianz-Tiriac’s offer to top of the most competitive and cost-effective insurance solutions.

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