Romanian Dailyhttp://romaniandaily.ro/cat00676fresh business news about Romaniahttp://romaniandaily.ro/cat006762010-07-30T01:15:48+00:00Romanian DailyenTiriac auto insurance based on driving historyhttp://romaniandaily.ro/cat00676/art0372459971/ source ]]>2006-07-27T07:55:00+00:00Financial Services (Insurance)IulianBulandraIncreasingly more Romanians are interested in life insurancehttp://romaniandaily.ro/cat00676/art8955286766/
In the opinion of ING Insurance director general Bram Boom, in Romania there
is a big deficit of protection on the market, of some 40 million euros.
"This is the difference between the population's available incomes and the
needs appeared in the case of an unforeseen event," says Boom. ING Insurance
- the biggest company in Romania on this segment - launched recently a
package of simple products, which cover the death risk of any cause, and
also hospital-related and surgery costs in the event of an accident.
The company's management considers that the local market has passed the
"emerging market" phase and is now mature. Consequently, it has adapted its
marketing strategy from high-income people to medium-income people. If a
person aged 39 signs an ING Smart policy, they pay annually 100 RON for an
insured amount of 10,000 RON. ING designed this product with a standard
duration of five years, the premium being constant along the period of the
contract, whereas the sum insured grows annually. Another direction the
company focuses on is adapting the distribution strategy. Thus, for the
middle class, ING will sell products also in the alpine resorts. AIG Life
has in view new marketing approaches as well. The average life insurance
premium on capita stands at some 10 euros per annum in Romania, whereas it
is 12 times higher in neighbouring countries.
source ]]>2006-07-21T07:23:00+00:00Financial Services (Insurance)IulianBulandraArdaf plunges on stock exchangehttp://romaniandaily.ro/cat00676/art7106323346/ source ]]>2006-07-21T05:45:00+00:00Financial Services (Insurance)IulianBulandraArdaf shareholders have to come up with 31 million euroshttp://romaniandaily.ro/cat00676/art6336335245/
The insurer currently has a share capital of 14 million euros (50 million
RON), but the CSA decision says if the company is to bounce back, it needs
at least 160 million RON (44.9 million euros) in capital.
The company is controlled by businessman Ovidiu Tender, who owns 70.69% in
Ardaf through Tender SA. The remaining shareholders are Clairmont Holding
Limited (12.71%), Raiffeisen Zentralbank Austria (10.19%) and other minority
shareholders. Ovidiu Tender is currently in custody, and is being tried in
the Rafo case.
"The recovery plan proposed by the CSA is very good and helps Ardaf. In
theory, the company sees to its business as usual, we sell policies,
underwrite, and settle claims," Octavian Manastireanu, chairman of Ardaf's
Board of Directors told ZIARUL FINANCIAR.
He specified the shareholders of the company were those that suggested the
capital increase amount and the deadline for subscribing it, that is 30.9
million euros by September 30.
CSA has appointed Costea Radu, an independent lawyer, to be the receiver of
the company. Besides the capital increase, the recovery plan also includes
other steps the company will have to take during this period.
The most important factors are the ban on investment, the reduction of the
expenses made to run each branch of the company and the ban on the sale of
any assets of the company, CSA's decision reads. Ardaf's assets stood at
50.8 million euros at the end of last year.
"We were not planning to sell assets or make investments in the upcoming
period, anyway, so that CSA's list of prohibited things does not affect our
business," says Manastireanu.
Ardaf shares listed on the RASDAQ market of the Bucharest Stock Exchange,
resumed trading yesterday but were down 25%, the maximum admitted for this
market. They had been suspended for two days after the announcement of the
CSA about placing the company under receivership.
Therefore the company lost 11 million euros of its market value in a single
day, falling to a capitalisation of 34.27 million euros, from the 45.27
million euros before suspension from trading. Ardaf had about 3,000 euros
worth of buy orders placed yesterday, and then there were no more buyers,
despite a sell order for almost 950,000 shares, worth over 65,000 euros.
The company was the object of another recovery plan last autumn, after a
similar decision issued by the CSA in October 2005. Two months and a 5
million-euro capital increase later, CSA considered the plan as
fulfilled.
source ]]>2006-07-21T05:14:00+00:00Financial Services (Insurance)IulianBulandra World Bank is against the draft for compulsory home insurancehttp://romaniandaily.ro/cat00676/art4547711367/
“ This opinion was expressed on several occasions by Mr. Eugene Gurenko,
World Bank expert in insurance and reinsurance matters.”, Cristian
Constantinescu said.
]]>2006-07-20T07:16:00+00:00Financial Services (Insurance)IulianBulandraCSA places Ardaf Cluj under special administrationhttp://romaniandaily.ro/cat00676/art6858400211/
The three measures are, in that order: special supervision, special
administration, receivership / bankruptcy. The company was under special
administration in the autumn of last year, but came out of it after it put
into practice a recovery plan primarily based on a 5.4 million-euro capital
increase.
source ]]>2006-07-20T06:11:00+00:00Financial Services (Insurance)IulianBulandraAllianz-Tiriac posts 37% growth in five monthshttp://romaniandaily.ro/cat00676/art7318603166/
Allianz-Tiriac intends to break down the comprehensive policy client
portfolio into segments depending on the client profile and history with the
company.
As for the general insurance segment, Allianz-Tiriac underwrote gross
premiums worth 115 million euros in the first five months of the year, an
increase of 31% from the same time in 2005. The growth of the life insurance
business was 126%, to 13 million euros, company representatives stated
yesterday.
Besides the doubling of the life insurance business, the other segments that
helped achieve 37% growth in the first five months were car policies, home
insurance and the contract to insure Tarom's fleet, the company said. The
increase in sales of non-mandatory auto policies (comprehensive car
insurance policies) by 29% in the first five months of the year is not the
news the management of Allianz-Tiriac would have wished for.
Last year Allianz-Tiriac had a 36% share of the comprehensive policy market,
with this type of insurance accounting for 60% of its portfolio. "This share
does not make us that enthusiastic, because we do not have a balanced
portfolio. Still, this is the trend of the market," stated Cristian
Constantinescu, Allianz-Tiriac Asigurari's chief executive.
"The situation on the auto insurance market is bleak and unacceptable for
any insurer," he says. The rate of claims settled for Allianz-Tiriac's
individual clients exceeded 103% last year, which means the claims the
company settled were 3% higher than the premiums it collected. In other
words, the company lost money on the segment of comprehensive car insurance
sold to individual customers.
source ]]>2006-07-20T06:05:00+00:00Financial Services (Insurance)IulianBulandraHome insurance may become compulsoryhttp://romaniandaily.ro/cat00676/art2548938377/
For the compulsory insurance of the home, every owner will have to pay 20
euros/year, approximately 800 thousand ROL.
But the National Union of Insurance Companies of Romania is dissatisfied
with the draft as presented by the Ministry of Administration who wishes to
set up a Company of Reinsurance Against Disasters.
Vasile Blaga, the minister of Administration and Interior stated for the
BBC” Insurance companies, not only from Romania but from the whole world,
have a certain fear when there are disasters, as they become bankrupt if
they are not reinsured”, minister Blaga mentioned.
All companies who want to sell home insurance policies will support the next
Company for Reinsurance Against Disasters to be set up by September.
Insurers consider that the sums for reinsurance should be managed and
invested on international markets.
Minister Vasile Blaga says that insurers need to accept home insurances even
if they don’t like them: “ The State has sufficient ways of
intervention.
We have to start the compulsory home insurance as we all have homes exposed
to flooding”.
The Government proposed the introduction of a compulsory home insurance
after the system ofcar insurance.
In this way, the authorities consider, those who lose their houses due to
flooding, earthquakes or landslides would receive damages from the insurance
companies.
At present, they depend on governmental aid. source ]]>2006-07-19T08:06:00+00:00Financial Services (Insurance)IulianBulandraArdaf under special administration http://romaniandaily.ro/cat00676/art9868082561/
The institution explained in a press release that the measure does not have
any implication for the commercial activity of Ardaf as they were only meant
to contribute to the financial recovery of the company and to protect the
rights of the insured. CSA insisted that all insurance contracts would carry
on under normal conditions. This is the second time Ardaf has undergone
financial recovery procedures after September 2005. Back then, the council
closed the procedure three months later.
source ]]>2006-07-19T07:29:00+00:00Financial Services (Insurance)IulianBulandraRomania's general insurance market to reach 1.44 billion euroshttp://romaniandaily.ro/cat00676/art3272581269/
According to the estimates presented in annual report of the Insurance
Supervision Commission, general insurance will reach 1.103 billion euros,
while life insurance policies will amount to 338 million euros. Consumer and
housing loans, car sales in leasing and increased tariffs for car insurance
will back the rise.
The officials of Interamerican insurance say that the insurance industry
will reach some 1.7 billion euros in end-2006, while the life insurance,
attached to loans, will reach 370 million euros. In the opinion of director
general of Allianz-Tiriac, Cristian Constantinescu, quoted by Saptamana
Financiara publication, the group insurance policies will gain ground in
terms of life insurance. He says that the increased retail crediting will
back the growth, both in the segment of life insurance and the one of
optional car insurance. Constantinescu estimates new tariffs for the
compulsory car insurance and optional one, with 2006 being the first year in
which prices are completely liberalized.