Garanta Asigurari Net Profit Down 64.4% In 2010, To RON3.83M

04.21.2011 By Bostan Radu

Romanian insurer Garanta Asigurari last year posted a net profit of 3.83 million lei (EUR936,293), one third of its result in 2009, while underwritten premiums declined by 28% to below RON100 million.

Romanian insurer Garanta Asigurari last year posted a net profit of 3.83 million lei (EUR936,293), one third of its result in 2009, while underwritten premiums declined by 28% to below RON100 million.

In 2009, Garanta posted profit of RON10.76 million, while underwritten premiums totaled RON134.75 million. The indicators are below the market average, although the management was looking forward to "a profitable rise in sales" and the market share in 2010.

The insurer's shareholders approved in early April the company's financial statement for 2010 and decided to pay dividends worth RON3.61 million.

Financial risk insurance made up the largest share of underwritten policies in 2010 - 52.8% (+1.3 points from 2009), followed by goods insurance - 19.3% (+2.2 ponts), CASCO - 18.6% (+2.2 points) and life insurance - 4.2% (-6.6 points).

Garanta paid damage claims worth RON90 million, down from RON98.01 million in 2009.

The company has been selling general and life insurance on the Romanian market since 1997. It is 94.96% owned by The Ethniki, Hellenic General Insurance Company, from Greece. Other shareholders include businessman Jean Valvis - 4.01%, the Romanian Radio-Communications company - 0,43%, telecom operator Romtelecom - 0.34% and the Romanian Post Office - 0.25%.

(EUR1=RON4.0906)