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XPRIMM News - THE ROMANIAN INSURANCE MARKET NEWSLETTER
No. 92, September 13th, 2007

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ICAR Forum INSURANCE PROFILE
  EDITORIAL


Saving money for halcyon days


Happy old people playing tennis, golf, or even cruising... This is the image of the pensioners in Western countries. And many people already convinced themselves this is real life and not only some idyllic vision from movies or commercials.

Against this comes reality - old people crowded in pharmacies for medicines, former university teachers begging in the street, humiliation and a care-laden age...

Feature reports made by televisions urge us to do something. But what should we do? Wouldn't be more convenient to let the State to do something?

Passing by debates over the opportunity of increasing the social pension we could at least find ourselves in the position of making something for us... This is one of the incontestably advantage at the pension reform...

Thus, with a monthly contribution of maximum 15% of the gross income, one could get further earnings for the retirement age. The earlier you begin saving the money, the more substantial the collected sum will be.

Studies made in the last few years show that Romanian are not much into saving, although popular culture proves that our peoples' line of thoughts is directed towards saving money for less happy days.

Now comes the moment when we can make a difference and start saving money for halcyon days!

by mihaela.circu@mxp.ro

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MUNICH Re
WILLIS

BCR Asigurari de Viata
ASIBAN
ASIGEST

ASIGEST Agri

MICROSOFT
OMNIASIG Asigurari de Viata
ARDAF
 
Competitive Distribution Strategies For The Insurance Sector ASIBAN
EDITORIAL | INTERVIEW | TOP PRESS | CEE, RUSSIA & CIS | FINANCIAL NEWS
 INTERVIEW

 

Interview with Dr. Crinu ANDANUT,
CEO,
ALLIANZ-TIRIAC Pensii Private

XPRIMM: At the beginning of the private pensions on the 2nd Pillar, what do you think are the perspectives for the next five years? But as regards the 3rd Pillar?
Crinu ANDANUT:
We intend to reach a 30% market share on the 2nd Pillar which will lead to assets in administration of EUR 800 million over five years.
As to the 3rd Pillar, we think the success of this Pillar is strongly connected with the success of the 2nd Pillar. If the 2nd Pillar is not functioning in good condition it will question the entire pension system as the participants will lose the trust which we are now trying to build.
Even in the 3rd Pillars' case we set ourselves a 30% market share target which will bring assets exceeding EUR 200 million over five years.

XPRIMM: Which do you think are the main difficulties you will face, especially at the beginning of the adhesion period?
C. A.:
The lack of information before the adhesion will be one of the main problems. Although an advertising campaign sponsored by the Private Pension System Supervision Commission (CSSPP) has already started, we consider it is much too late. As the administrators are not allowed to launch advertising campaigns by 17th of September, the market will host a great affluence of messages from that day on, which will certainly confuse the participants.
So far, the collection of the contributions is uncertain as the IT system is still under construction in charge of the Ministry of Economy and Finance and the Ministry of Labour. If this situation will not be handled by the time administrators will begin collecting the contributions then they will have nothing to administrate.

XPRIMM: There are many comments about the financial output that private administrated funds would provide for their participants. From your own estimations, what would be a realistic rate of this output in order to provide a superior income than the income obtained from hypothetically keeping the contributions in the social pension area?
C. A.:
The difference is very clear because in the private pension systems' case contributions are invested by administrators on behalf and on the account of their participants, while contributions for social insurance are not invested and they are used for paying the pensions for the current pensioners.
As for the 2nd Pillar funds' output, we consider this will have a lot to do with market issues, such as the Romanian states' politic with regard to the governmental obligations (outputs and the provided volume) and to the economic factors like the evolution of the currency rate, the funds' risk level and the legal restrictions imposed to the administrators.

XPRIMM: What are the advantages of the company you represent beside the competitors?
C. A.:
ALLIANZ-TIRIAC Pensii Private is a Romanian juridical entity founded in 2007, having an excellent private pension management.
The majority owner of the company is ALLIANZ-TIRIAC Asigurari with an experience of over 12 years in the Romanian insurance industry, the leader on this market, standing out by earnest and consistency in promoting the highest quality standards for its clients. ALLIANZ-TIRIAC Pensii Private is member of German ALLIANZ Group, represented in over 70 countries, serving more than 60 million clients.
Most of the companies from the FORTUNE 500 chart are clients of ALLIANZ Group which was designated by Dow JONES as the most stable financial group in the world in 2006.
At the same time, ALLIANZ launched the first private pension fund for its employees in 1903 while the start of the groups' pension fund management activity started in 1995 in Czech Republic and extended afterwards in all states from that area Poland, Hungary and so on.
ALLIANZ is the leader of the private pension markets from Bulgaria, Croatia and Slovakia from where the group gained 2.7 million clients, the pension funds' assets in CEE region reaching EUR 2.5 billion.

XPRIMM: What is, in your opinion, the most important message private pension operators should communicate to the public?
C. A.:
First of all, people should found out some information regarding administrator at whose fund each adhere and should acquaintance the pension scheme prospect they choose, chasing a long and very long term partnership.

XPRIMM: How long do you think it will take for the private pension market to become stabile so we can put in discussion the pension funds' performances?
C. A.:
We estimate that a stabilization of the private pension market would come within a year from the moment when the first contributions are transferred in the funds' account and we hope this will happen right on time.

XPRIMM: How do see the position of the company you represent on this market (in terms of market share, personality, specifity) at that moment of stability we talked about?
C. A.:
I see ALLIANZ-TIRIAC Pensii Private as market leader with at least 30% share on the 2nd Pillar. In Romania, the company aims at a partnership with all the participants of the private pension funds, based on trust, transparency and communication, quality and excellence in the services we are providing and also caution and efficiency regarding the investments made on the participants' account.

XPRIMM: Thank you!

by daniela.ghetu@mxp.ro

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Crinu ANDANUT
Dr. Crinu ANDANUT,
CEO,
ALLIANZ-TIRIAC Pensii Private

EFW MEDICOVER
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 TOP PRESS

ICAR 2007


The International CAtastrophic Risks Forum
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CSSPP announced almost 90,000 agents
The number of marketing agents announced by the Private Pensions System Supervising Commission (CSSPP) for Pillar II reaches 90,000.
Therefore, according to the supervising authority website, five entities authorized 88,278 agents. Until now, the biggest number of marketing agents has been announced by ING Fond de Pensii (33,856).
According to some estimations, the pension funds put stake on the selling force formed of 250.000 agents, which will be remunerated with a commission of about 30 EUR for each adhesion.
By this moment, CSSPP announced 14 administrators which will subscribe in Pillar II competition. The adhesion period of the participants to the privat administrated pensions' funds will start in less than one week. Thus, September 17, 2007, will mark the official debut of Pillar II in Romania.
by mihaela.circu@mxp.ro, 11.09.2007


Towards a EUR 2 billion market
In the first semester of this year, the Romanian insurance market passed the EUR 1 billion threshold as business volume. Thus, the value of gross written premiums by the Romanian insurance companies reached RON 3.6 billion, representing EUR 1 billion.
"We speak about a market that has all the premises to pass over, at the end of this year, the EUR 2 billion threshold as volume of business", Angela TONCESCU, President of the Insurance Supervisory Commission (ISC) stated.
Compared to the similar period of 2006's results, non-life insurance line of business increased with 29.41%, while the life insurance sector registered a positive evolution of 25.37%.
The non-life sector represents 81.18% of the total insurance business, compared to 80.69% in the first semester of 2006.
The life insurance business's evolution is justified by the incoming start of the Pillar II's private pension. The life insurance companies focused their forces on preparing their entrance into private pension sector.
The first 10 companies on the market made almost 84% of the total underwritings. ALLIANZ-TIRIAC, OMNIASIG and BCR Asigurari are, in this order, the first three companies in this line of business. With a market share of about 19%, ALLIANZ-TIRIAC holds its position as leader. OMNIASIG climbed one spot, compared to the position occupied at the end of the first semester of 2006, reaching second position. The company registered a nominal growth, in EUR, of over 76%, compared to first 6 months of 2006.
The level of paid claims, in the entire Romanian insurance market, increased by 36% in the first semester of 2007, compared to the similar period of the previous year, reaching RON 400 million (EUR 121 million).
by mihaela.circu@mxp.ro, 11.09.2007


Insurance mediation business: about EUR 200 million
The estimated value for the Romanian insurance mediation market passed over EUR 195 million in the first half of 2007, marking a 21% increase in comparison to the estimation for the similar period of the previous year.
Practically, the mediation market represents over 18% of the insurance underwritings in the mentioned period. The first 10 companies in this business totaled mediated premiums in value of over EUR 105 million, which is more than half of the insurance brokerage market.
PORSCHE Broker, MARSH and AON Romania are, in this order, the first three companies in the TOP 10.
You can read the complete results of the Romanian insurance and mediation markets only in the next issue of the Insurance PROFILE Review.
Click here for orders.
by alex.rosca@mxp.ro, 11.09.2007


The operators go for the validation system modification
"One of the biggest difficulties forecasted in the Pillar II debut of privately administrated pensions refers to the validation system of the pensions funds participants. The actual regulations foresee that if it is registered a double option from one participant, this will be invalidated for both pension funds he opted for and will be automatically included in the repartition 'lottery'", Dr. Crinu ANDANUT, Executive Director of ALLIANZ-TIRIAC Pensii Private, declared within a press conference organized yesterday, on September 11.
"In the practical plan, this system can generate a massive wave of invalidations, especially if we take in consideration the public disinformation. It wouldn't be impossible that 30-50% of the expressed options to be invalidated. The disadvantage is double: from one point of view, there will be multiple situations when faithfully expressed options will be canceled; from another point of view, for the operators, this will determine an extremely substantial volatility of the participants' portfolio, fact that generates numerous problems, and obviously, useless costs", the stated official considers.
According to him, the purpose of the operators, sustained by the majority of important private pensions administrations companies, is to set up series of successive validation phases, in order that options expressed and validated during each phase can't be modified anymore by simply expressing another option. "From our sources, this kind of system could be applied without major additional efforts. Therefore the benefits could be very important for all those implicated. That's why we hope that the availability of CSSPP to settle the best legal framework for the system functioning will perform in this case, as well as in the rest of situations in which we fruitfully collaborate with the supervising authority", Dr. Crinu ANDANUT added.
ALLIANZ-TIRIAC Pensii Private has as objective the leader position obtaining on the private pensions sector (Pillar II and Pillar III), investing over EUR 4 million in the marketing campaign.
Concerning Pillar III, the company estimates the attraction of over 20.000 participants by the end of this year. Also, the society forecasts an administrating asset volume of EUR 60 million in 2010 and EUR 300 million in 2015.
ALLIANZ-TIRIAC Pensii intends to reach a market share on Pillar II of 30% (number of participants), therefore by the end of 2008 to own assets in administration of over EUR 60 million. ALLIANZ-TIRIAC Pensii Private supports, as Official Partner, the cycle of Private Pensions Regional Forums. After Cluj-Napoca (June 28 this year) and Sibiu (August 2 this year), the Municipal Iasi will be the host, on September 13 c.y., of the next Private Pensions Regional Forum, which will take place with the CSSPP Official Support.
by daniela.ghetu@mxp.ro, 12.09.2007


AVIVA acquires CERTINVEST in Romania
Insurer AVIVA has entered into an agreement in Romania to purchase 99.8% of the shares of CERTINVEST, a Romanian asset management company, from Eugen VOICU, the CEO of CERTINVEST and the Romanian-American Enterprise Fund (RAEF), a private US corporation.
"This acquisition is an important strategic move for AVIVA right before the launching of the private pension system. CERTINVEST will be an essential part of our strategy, providing our clients with high quality asset management services and exceptional financial outputs in pensions, life insurance and long term savings. At the same time, CERTINVEST will continually develop and become part of the AVIVA's Global Investments Network, offering access to the international expertise of the group for their clients", Shah ROUF, CEO AVIVA Romania declared.
Tidjane THIAM, CEO of AVIVA Europe, said: "This acquisition is part of our European strategy to continually adapt our range of long term savings products and services to meet our customers' needs. This acquisition confirms our clear ambitions for growth in Romania and more broadly in Central and Eastern Europe".
The purchase is subject to regulatory approval and is expected to complete by the end of the year.
CERTINVEST, which had gross assets of EUR 1.1 million (as at 30 June 2007), manages approximately EUR 24 million in four open-ended funds and also offers individual investment accounts for high net worth individuals.
AVIVA is the leading provider of life and pensions to Europe with substantial positions in other markets around the world, making it the world's fifth largest insurance group based on gross worldwide premiums at 31 December 2006.
The groups' principal business activities are long-term savings, fund management and general insurance, with assets under management of EUR 554,1 billion at the half of this year, growing EUR 19,1 billion since 31 December 2006.
by andreea.ionete@mxp.ro, 13.09.2007


GENERALI Fond de Pensii bets on young people
GENERALI Fond de Pensii intends to obtain 10-12% market share of the total private administrated pension funds market. The company's officials estimate that ARIPI, the fund administrated by the company will have over 300,000 participants with the age between 18 and 45 years.
Ioan VREME, General Director of GENERALI Fond de Pensii: "We will invest 45% of ARIPI total assets in financial instruments with high risk level, and with superior profitability rates respectively - circular assets, monetary market instruments etc".
The company put stake, therefore, on an interesting marketing strategy that will focus especially on young persons that have, in GENERALI Fond de Pensii officials' opinion, "a higher appetit for risks". The advertising campaigns budget represent about EUR 2 million, 10% of the total investment made by GENERALI Group in GENERALI Fond de Pensii.
The administrator will compete on this market with other almost 14 profile companies, part of some powerful financial-banking groups or companies owned by life insurance companies and not only.
by alexandru.ciuncan@mxp.ro, 12.09.2007


AIG Fond de Pensii and RAIFFEISEN Bank aim 15% of the private pension market
AIG Fond de Pensii, the company specialized in the private administrated pensions of AIG Life, has concluded a partnership with RAIFFEISEN Bank, which aims the distribution of private pensions through the bank units and the credit institution's achievement of being a depositary for the pension company. The administrator has as an objective the attainment of a 15% market share in the mandatory private pension market (3rd Pillar), according to the company officials.
AIG Fond de Pensii will administrate a fund with a moderate risk degree, 70% of the assets being invested in government and non-government bonds, state titles and treasury certificates.
The adhesion of participants to a private administrated pension fund will begin at the 17th of September and will last for 4 months. After this period, those who haven't chose a private retired pays fund will automatically be distributed to the authorized funds.
by alexandru.ciuncan@mxp.ro, 13.09.2007


BCR Fond de Pensii, ready for the start
Placing in stake on its member status of the most important financial group in Romania, BCR Fond de Pensii settled its targets for the mandatory private pension hot market (2nd Pillar).
"For the next period of time, BCR Fond de Pensii wants leadership in the 2nd Pillar market with a market share of over 30%. I think the launching of this pension system is a major step for us, Romanians, and will make a big difference from the social system at the time people should receive their pension", Simona DITESCU, CEO of the private pension administrator has declared, exclusively for XPRIMM Newsletters.
According to the official, BCR Fond de Pensii's advantages are strong reputation, high quality professional team, well-known selling force of BCR Group, as well as the great experience of ERSTE in Central Europe both in asset management and pension funds management, all this completed by a vast client network and a honest and transparent relation with them.
"We must understand how important is to save money and to profitably invest our savings for a better life. BCR Fond de Pensii investments orientations are, of course, taking into consideration the estimated economic growth, the pension fund managed by us having a medium risk degree", Simona DITESCU added.
BCR Fond de Pensii is part of BCR Group and has a initial share capital of RON 50 million.
by andreea.ionete@mxp.ro, 4.09.2007


The authorizations continue...
The Private Pension System Supervising Commission (CSSPP) authorized during the Wednesday meeting (September 5) the company BANCPOST Fond de Pensii as administrator of mandatory private pension fund (Pillar II), as well as the prospect of its scheme.
Additionally, with regard to this occasion, the arbiter of private pensions authorized two funds on mandatory private pensions sector: OMNIFORTE, managed by OMNIASIG Pensii and privately administrated pensions fund BCR part of BCR Fond de Pensii.
The regulation authority also authorized the following companies as private pension brokers on Pillar II: CAPITAL&ALLIANCE, ALLINVEST, PRIM NET, ALFA Private Pensions Broker, POOL Private Pensions Broker, FAMILLIO Private Pensions Broker and SAIMA Private Pensions Broker.
In the same time, CSSPP authorized during the Tuesday meeting (September 11) the company KD Fond de Pensii as administrator of mandatory private pension fund (Pillar II), as well as the prospect of its scheme, and also the individual documentation attached to the scheme.
The new company, that will be managed by Carmen RADU, presently Vice General Director within the life insurance company of KD Group, intends to attract over 100.000 participants on Pillar II.
For pensions' distribution, KD bases on its own force, the relation with the brokers and the partnerships with the patronages.
Until now, CSSPP had authorized 14 entities which will start, on September 17th, the race for Pillar II.
Also, during the Tuesday meeting, CSSPP authorized, as well, as marketing agents corporate bodies SOLIDARITATEA Broker de Pensii Private, RENTABILITATEA Broker de Pensii Private and SEF Pension Broker de Pensii Private as brokerage companies.
by mihaela.circu@mxp.ro, 12.09.2007


Partnership for private pensions
EUROBROKERS and GENERALI signed a partnership on the distribution of the life insurance policies and private pensions (Pillar II).
The announcement was made during the opening festivity for the new EUROBROKERS's headquarters, situated in Otopeni.
"We consider this partnership a challenge for us to demonstrate our experience and professionalism in selling business", Ioan Mircea PETRICA, CEO, EUROBROKERS, stated with this occasion.
"We are excited about this newly created connection with EUROBROKERS, one of the most reliable brokerage company present on the Romanian market", Ioan VREME, General Manager, GENERALI Fond de Pensii, mentioned.
"The distribution of GENERALI Aripi fund (N.B.: pension fund administrated on Pillar II by GENERALI Pensii) is an opportunity for our agents, because it is one of the most dynamic", Ioan Mircea PETRICA concluded.
by mihaela.circu@mxp.ro, 3.09.2007


ARDAF launched rebranding campaign
By relocating its Headquarters to Bucharest, from Cluj-Napoca, the insurance company ARDAF launched a full rebranding campaign with "Pentru zile senine" (N.B.: English translation: "For clear days") as a marketing slogan.
"The campaign has the role to communicate a change in the company's image, strategy, relation towards market, clients and its own staff. The new identity of ARDAF reflects the major restructuring, consolidation and optimization process, following the change of shareholders and management after PPF Investments took over the insurance company", Alina NASTASE, Marketing&PR Manager, ARDAF, stated.
A wide range of media channels will be used by ARDAF to communicate its new message and campaign (television, radio and so on), combined with various actions that will take place at the company's territorial offices.
The rebranding campaign meant also the launching of a new web-site; build in the spirit of ARDAF's new identity.
PPF Investments, part of the Czech Group PPF, one of the financial and insurance markets' leaders in the Central and Eastern Europe, is a strategic investor focused on repositioning ARDAF between the elite of Romanian insurers. The group also plans to consolidate and develop its insurance business in Romania.
by andreea.ionete@mxp.ro, 10.09.2007


Pillar III pensions assets, close to RON 1 billion
The accumulated assets' into the facultative private pension system is near RON 1 billion.
Therefore, according to the Private Pension System Supervision Commission (CSSPP) data, between August 25 and 31, the assets reached RON 916,697, which is 23.09% higher than the previous week.
The total number of participants into this pension system is 8,092, from which 4,370 have chosen AZT Moderato, administrated by ALLIANZ-TIRIAC Pensii and 1.806 people opted for ING Clasic pension fund.
Market specialists estimate that the number of persons choosing to enter into the facultative private pension system will increase after the beginning of the adhesion period, on September 17.
by mihaela.circu@mxp.ro, 10.09.2007


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INSURANCE PROFILE
WILLIS
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 CEE, RUSSIA & CIS


November Business Meetings of Reinsurers is waiting for its guests
All-Russian Insurance Association (ARIA) organizes, between November 19th-21st, 2007, in Moscow, November Business Meetings of Reinsurers.
The Meetings give the chance to negotiate with a maximum number of partners representing insurance, reinsurance and broker businesses.
The November Meetings of Reinsurers in Moscow have been held each year since 2002, with interest in them growing steadily. In 2002, taking part in the Meetings were 61 specialists from 40 companies in nine countries, while the 2006 Meetings attracted 192 participants from 109 companies apart from guests, experts and journalists - in all, a 350-strong audience coming from Europe, Asia and America.
Traditionally, PRIMM-Insurance&Pensions Magazine is Media Partner of the event.
by irina.galasanu@mxp.ro, 13.09.2007


Slovenian Government sells 75% of Zavarovalnica TRIGLAV
Slovenian Government decided to run the privatization of the insurance group Zavarovalnica TRIGLAV. The state will keep at least 25% plus 1 share of the insurer, the Ministry of Finance of Slovenia announced in August.
In the official statement of the Ministry of Finance, the decision to sell 75% of the group was explained by the necessity to develop the insurance industry in Slovenia. "The decision was adopted because of TRIGLAV'S importance in the insurance sector and also because of national interest", the Ministry of Finance stated. The decision envisages the state to keep the stake for a long period, while it wants active management to be carried out by the private sector. The decision will allow the state to maintain influence on the insurer's key management decisions, the Finance Ministry commented.
The act on legal successors of authorized investment firms, which entered into force at the end of July, states that such companies have to initiate procedures for listing on the stock market within 30 days of the act's validity. TRIGLAV also falls under the scope of the act.
by RP Newsline, 3.09.2007


VIENNA Insurance Group plans to acquire two Ukrainian insurers
Austria-based VIENNA Insurance Group has been considering an option of acquiring two insurers in Ukraine. The Group's holdings in Ukraine already include three companies, JUPITER Life Insurance Vienna Insurance Group as well as GLOBUS and KNYAZHA, non-life insurers. JUPITER Life Insurance Vienna Insurance Group officially denied that the Austrian Group took this move because of the disappointment regarding the development of its existing Ukrainian subsidiaries. It reported that the Group's companies have been posting growth. In particular, premiums of JUPITER rose by 84.24% as compared with January-June 2006.
Also, JUPITER denies that VIENNA Insurance Group may acquire Ukrainian insurers to sell them later to other investors. The Group's move was driven by its strategy to expand its business in Ukraine. The report does not disclose whether the Group wants to purchase life or non-life insurers.
by irina.galasanu@mxp.ro, 12.09.2007


10% rise for the Hungarian insurers in H1/2007
The Hungarian Financial Supervisory Authority (PSZAF) announced earlier this month the financial results of Hungary-based insurers for the first six months of 2007. The companies wrote USD 2.31 billion in premiums, up by 10.1% compared to the same period of 2006.
During the reporting period, the Hungarian market was represented by 26 insurance companies, including nine non-life and six life insurers. 11 companies were engaged in both sectors.
Life insurers generated a premium income of USD 1.15 billion, up by 17.1% compared to the equivalent period a year ago. Non-life premiums rose 3.9% to USD 1.16 billion.
The premium structure has not changed significantly compared to January-June 2006. In the first half-year 2007, life business accounted for 49.8% of the companies' total premium income, while in January-June 2006, the figure was 46.8%.
Unit-linked business accounted for 61.9% of the companies' total life premium income, endowment insurance - for 24.5% and other insurance classes - for 12.2%. Vehicle owners and drivers' liability accounted for 28.4% of total non-life premium income (including 28.1% in the sector of compulsory MTPL). The proportion of hull business was 23.8%, that of fire risks insurance - 19.2%. Total share of the other insurance classes came to 28.6%.
During the reporting period, the Hungarian insurers paid USD 1.12 billion in claims, up by 27.7% compared to the same period a year before. Life insurers paid USD 617.9 million of claims, 52.3% up. Non-life losses rose 6.6% to USD 500.8 million, accounting for 44.8% of total claims paid, against 53.7% in January-June 2006.
by irina.galasanu@mxp.ro, 11.09.2007

 

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RUSSIAN POLIS

AUDATEX

Hotel CARMEN

NBM Reinsurance
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 FINANCIAL NEWS


BCR - newer, stronger, better
Banca Comerciala Romana (BCR) launched on September 3rd the new logo of the bank, the result of blending the experience and renown of the most important Romanian bank with the prestigious ERSTE brand, one of the most successful financial services providers in Central and Eastern Europe.
"The launch of the new BCR logo will be a memorable day for our bank, for our shareholders and especially for our customers. I am sure that the launch of the new logo represents only the beginning of a new successful stage in BCR's history and the reinforcement of its position as a leader of the Romanian banking market and an important member of ERSTE Group. If, by now, the changes have taken place only inside the bank, the moment has come to see these changes from outside as well. The change of the most important identification element of the bank, the logo, proves that BCR steps into a new era", Nicolae DANILA, CEO of BCR, stated.
The new logo adopts elements in the visual identity of the mother Group, namely the graphic and colors, while it stands for the integration within the ERSTE universe, a very successful European financial family which provides its partners with top quality banking products and services.
by costi.boroda@mxp.ro, 4.09.2007


The leasing market: financed assets of EUR 2,170 million
The total of the Romanian leasing market as of 30th of June, 2007 (ALB, ASLR, nonaffiliated lessors), according to a study conducted by the Leasing and Non Banking Financial Services Association - ALB and the Association of the Leasing Companies of Romania - ASLR, has a total volume of financed assets worth about EUR 2,170 mil.
Bank affiliated leasing companies register the largest market share with 65% of the total, followed by the independent companies with 26% and captive companies with 9%. The growth rate, between June 30th 2006 and June 30th 2007, is of 46%.
During the first half of 2007, the financed assets by ALB totaled EUR 1,540 million (71%) while ASLR total assets reached EUR 537 million (25%). The total financed assets as of 30th of June, 2007 both by ALB and ASLR valued EUR 2,077 million.
The total number of the leasing contracts signed by the ALB and ASLR members as of 30th of June, 2007 is 72,370 (ALB - 44.700 and ASLR - 27,670).
The diversity of the financing granted to the sectors of the national economy is shown in the fact that 22% (EUR 454 million) of the total financing was represented by industrial equipment, 7% (EUR 149 million) by real estate and 71% (EUR 1,473 million) by the transport sector.
ALB and ASLR are members of LEASEUROPE, having a Romanian market share of 96%, 4% of the lessors not being affiliated.
by costi.boroda@mxp.ro, 13.09.2007


FORD buys AUTOMOBILE Craiova
Romanian Authorities have signed the contract of privatization of AUTOMOBILE Craiova with American producer FORD at the Auto Lounge in Frankfurt.
Calin Popescu TARICEANU, the Romanian Prime Minister, underlined after signing the document that "Romania is offered an opportunity to become the greatest producing country in vehicle industry from Eastern Europe. The transaction is an advantage to both parts".
President of FORD Europe, John FLEMING, also mentioned that the American group has taken over a factory "he had been always dreaming of", and appreciated the great evolving of the negotiations, given the fact that both Romanian authorities and FORD representatives wanted the transaction to be successful.
By this transaction FORD obtains control over a share package of 72.4% from the capital of AUTOMOBILE Craiova, paying EUR 57 million.
The American producer plans to make some direct investments of EUR 675 million, for modernizing and technologically updating the factory, and for increasing the number of employees from 3,900 to 9,000 persons.
Production will begin at the end of 2008, "with a small-sized car, produced only in Craiova", John FLEMING explained. FORD officials added that cars produced in Craiova will not be low-cost models. 80%-90% of FORD production in Craiova is destined to be exported on European markets, the President of FORD Europe added.
The number of vehicles will reach 48,000 units in the first year of production, 245,000 units in 2011 and 300,000 units in 2013. FORD intends to make an annual income of EUR 2.8 billion, whereof EUR 2.5 billion will be obtained from exports.
by costi.boroda@mxp.ro, 13.09.2007


Foreign Direct Investments in Romania, close to EUR 3 billion
Foreign Direct Investments (FDI) volume, over the first half of 2007, was EUR 2.98 billion worth, based on the statements made by Vergil VOINEAGU, President of National Institute of Statistics (INS), quoted by Rompres.
The highest share belongs to investors from The Netherlands - 17.44% of the total, followed by Austria - 12.965, France - 10.56% and Germany - 9.79%. Last year, FDI volume exceeded EUR 9 billion, and it amounted to EUR 5.21 billion in 2005.
The economic growth was 5.6%, in the first quarter of 2007, respectively 5.8% for the second half. The main contribution to this result was made by services - 3.2%, constructions - 1.7% and industry - 1.6%, whereas agriculture and net product taxes accounted for a negative share of -0.2% and -0.5% respectively.
In spite of the difficulties experienced in 2007, induced by drought, Vergil VOINEAGU underlined that GDP growth rate during the second quarter of 2007 was among the highest in Europe, over the EU 27 average - 2.5%. Romania GDP growth rate was by 2.5% over Germany, by 3.9% over Spain and by 3.8% over Austria.
by costi.boroda@mxp.ro, 10.09.2007

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