Allianz Tiriac: Insurance Market To Strengthen In 2012 If Auto Sales Pick Up

05.24.2011 By Ioana Tudor

The Romanian insurance market will face a difficult year if car sales continue to decrease, insurer Allianz-Tiriac Asigurari general manager Rangam Bir said Tuesday.

According to Bir, the local insurance market will pick up in the second half of the year and in 2012 if the auto market picks up.

He pointed out that the insurance market saw a decline in the first quarter of the year, and the situation continued in April. He said revenues from car insurance policies were impacted by a decline in car sales.

The general and life insurance market dropped 6.6% in the first quarter of the year, to 2.14 billion lei (about EUR519 million ), due to a 8.8% decrease in revenues from general insurance premiums to RON1.71 billion, according to preliminary data released by insurance regulator CSA.

In the first quarter of 2010, revenues from underwritten premiums decreased by 5.3%, to RON2.29 billion.

Car sales stood at 27,254 units in the first four months of 2011, down 14.6% on the year, said the Car Manufacturers and Importers Association (APIA).

According to CSA, mandatory car insurance (RCA) underwritten premiums in the first quarter of 2011 decreased by 18.2% compared to the same interval last year, to RON667.75 million.

Voluntary car insurance (CASCO) premiums brought insurers RON486.97 million, from RON598.93 million in March 2010.

Insurers paid claims amounting to RON1.26 billion, down 6.3%.

In 2010, the general and life insurance market dropped 5.7% to RON8.36 billion. The general insurance segment saw a 7.5% decrease in underwritten premiums, to RON6.69 billion, while revenues from life insurance premiums increased by 2.32%, to RON1.66 billion.

Allianz-Tiriac Asigurari reported a 7% decrease in underwritten premiums in the first quarter of 2011, to RON256.4 million, from RON277 million in the same interval last year. Its profit before tax stood at about RON3 million. (EUR1=RON4.1263)