Groupama Sees Steeper Turnover Decline In H1

08.05.2011 By Ciprian Botea

Groupama, the fourth largest insurer, in the first six months underwrote gross premiums worth EUR84 million, down 12% from a year ago, on weak car policy sales.

The insurer's turnover slid faster than in the first half of 2010, when premium revenue had dropped by 9%. Instead, the company managed to turn profitable after two years in the red.

The company is still in the phase of making investments, with the French group having posted losses from the Romanian operations over the past two years. Losses amounted to 50 million lei (around EUR12 million) in 2010.

In the first six months of 2011, the domestic company had a positive EUR1 million contribution to the group's net income, after a negative EUR4 million contribution in the same period of 2010.

The French group also reports a positive trend of home insurance policy sales, with the increase from January-June 2010 amounting to 167%.

"Property insurance rocketed after the launch of a new product. Life and health policies were stable on a market hurt by the weak sales of new loans", reads the company's report.

(English version by Catalina Apostoiu)