STATISTICS: ROMANIA 1H2014: MTPL insurance went up 8.7% in GWP terms, but recorded a combined ratio of 131%

The Romanian insurance market decreased 6.8% y-o-y in the first half of 2014 to RON 3.97 billion (EUR 890 million), as the Financial Supervisory Authority (FSA) announced in the half-year Report.

The net result of the insurance market was negative: the total loss stood at RON 54.25 million (~EUR 12.2 million) against a net loss of RON 49.96 million reported for 1H2013. According FSA, 16 insurers reported profit (of RON 164.91 million), while 21 insurers ended the firs half-year in red (totaling RON 219.16 million). At the end of 2013, the Romanian insurance market reported the highest loss in its history: then the record aggregate loss totaled RON 1.28 billion.

On the main insurance classes, the non-life segment decreased by 6% y-o-y, totalling RON 3.2 billion or 80.4% of total market. According to FSA Report, the two mandatory insurance classes (motor TPL and the mandatory households policies issued by PAID) reported significant increases and accounted for about 45% of the non-life GWP.

FSA noted that the positive evolution of the MTPL sector (to RON 1.33 billion, 8.7% more y-o-y) was due to the increasing tariffs: "At the end of 1H2014, the average annualized premium on MTPL sector was RON 488, as compared to RON 484 in 1H2013". At the same time, the number of issued contracts increased by 4% to 3.75 million, while the number of policies in force at June 30th was 4.45 million, 3.78% more y-o-y. On MTPL segment, the claims ratio was 99%, while the combined ratio was 131% (up 14% y-o-y).

On the other hand, PAID reported GWP of RON 56.9 million, about 15 times more y-o-y "due the changes in the Law 260/2008 in August 2013". As a result, the class B VIII (fire and allied perils) - which includes both - voluntary and mandatory households insurances - decreased almost a quarter to RON 462.2 million.

An extended analysis of the Romanian insurance market evolution in 1H2014 will be available in the forthcoming issue of XPRIMM Insurance Report 1H2014, to be released on October, 19th, on the occasion of the Baden-Baden XPRIMM Reception (Kurhaus Casino, Runder Saal, 18:30 - 20:30 hours - register here).

Access www.xprimm.com and download the 1H2014 Romanian insurance market statistics.

Market indicators (in EUR and RON):
  • GWP
  • Claims 
  • Growth rates
  • Portfolio
Market rankings (in EUR and RON):
  • All insurance market
  • Life insurance
  • Non-life insurance
  • Motor hull
  • MTPL
  • Property

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

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