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.

Share |

Related articles

Bogdan BICHINET to join GENERALI Romania as CFO

Bogdan BICHINET will join the management team of GENERALI Romania as Member of the Board and Chief Financial Officer - CFO starting March 1st, after this week the Board of the Romanian Financial Supervisory Authority (ASF) approved its appointment.

2019-02-28

FITCH Affirms EUROINS Romania at IFS 'BB-'; Outlook Stable

FITCH Ratings has affirmed EUROINS Romania Asigurare Reasigurare SA's (EUROINS Romania) Insurer Financial Strength (IFS) rating at 'BB-', and EUROHOLD Bulgaria AD's (EUROHOLD, the group's ultimate holding company) Long-Term Issuer Default Rating (IDR) at 'B'. The Outlooks are Stable.

2018-08-06

ON THE MOVE

Bulgaria: Boiko ATANASSOV appointed as FSC's head

The Parliament of the Republic of Bulgaria appointed Boiko ATANASSOV as Chairperson of the Financial Supervision Commission (FSC) on March 15, with 134 votes in favour, none opposed or abstained.

21.03.2019

TOP EVENT

Conclusions: TBILISI - the first Georgian International Insurance Conference

Today takes place in Tbilisi the first Georgian International Insurance Conference, an event that will put under scrutiny the current status and the future development perspectives of the local market, in an attempt of identifying the main growth opportunities. The forthcoming launch of the mandatory MTPL system is the most important topic on the agenda, as this new line of business has the potential to provide for a significant growth, but also to become a market disruptor.

14.03.2019

Motor insurance - becoming more financially efficient and consumer friendly

Under the strong pressure put by the technological evolution, the motor insurance business is rapidly changing, both in operational terms and, most visible, in the way insurers are interacting with their customers. Step by step, the insurers' relationship with customers evolves from simply indemnifying insureds for the losses suffered because of road incidents, to helping them prevent incidents and rapidly recover after the accidents that couldn't be avoided.

27.02.2019

See all