BCR Asigurari Switches To RON14.4M Pretax Profit In 2010

04.18.2011 By Gavrila Oana

Romanian insurer BCR Asigurari posted a pretax profit of 14.43 million lei (EUR1=RON4.0966) in 2010, under international reporting standards, from a RON55.54 million loss in 2009, the insurer said Monday.

Romanian insurer BCR Asigurari posted a pretax profit of 14.43 million lei (EUR1=RON4.0966) in 2010, under international reporting standards, from a RON55.54 million loss in 2009, the insurer said Monday.

BCR Asigurari said in a press release it switched to profit due to increased efficiency and improved cost control, despite the difficult economic environment.

"BCR Asigurari implemented last year a strategy to render back-office and damage claim activities more efficient and has improved its administrative and procurement cost control," the insurer said.

The insurer posted revenues from underwritten premiums of RON522 million, 9% lower than in 2009, and ranks fifth in the top of general insurers in Romania.

The company said its portfolio has changed as general civil liability insurance premiums have increased 40% compared to 2009, civil liability car insurance (RCA) increased 25% and property insurance increased 6%.

Voluntary car insurance (CASCO) has joined the general downward trend of the auto and leasing markets.

BCR Asigurari paid total damage claims of RON357 million in 2010, 7.9% lower on the year, according to financial reports of Austria's VIG, the Romanian insurer's owner.

With a share capital of RON123.39 million, BCR Asigurari started operations on the Romanian market in 2005. Its main shareholder is Vienna Insurance Group (VIG), with a 95.91% stake.

In 2010, Romania's insurance market declined 5.7% on the year, to RON8.36 billion, as the general insurance market declined 7.5% to RON6.69 billion and the life insurance market increased 2.32%, to RON1.66 billion.