STATISTICS: ROMANIA 1H2015: MTPL helps market recover but hits overall profitability
Life insurance saw an overall increase of the GWP volume of 7.5%, to RON 838 million (EUR 188 million), mostly driven by the double digit growth achieved for the unit-linked products (+14.8% y-o-y).
On the non-life insurance side, GWP went up by 9.02%, to RON 3.48 billion (EUR 783 million), the highest contribution, in absolute terms, to this growth being provided by the MTPL insurance class.
A 10% increase in the number of new passenger cars sales, as well as the 23.5% growth of the commercial vehicle sales supported the GWP growth for the MTPL business. In fact, by the end of 1H2015, the total number of active MTPL contracts was with about 200 thousand units highger than 12 months ago. Another driving factor was the about 5% increase of the MTPL tariffs. However, the combined ratio for the MTPL class stood - according to the latest data provided by the market watchdog -, at 127.83%, somehow improved as compared with the 133.09% from 1H2014, indicating possible further increases of the tariffs.
Despite the increased cars sales, the Motor Hull insurance GWP volume continue to decrease (-3% y-o-y GWP, RON 825 million). The combined ratio for this class, although still exceeding 100%, is however better than the MTPL one, of 115%, in part favoured by the 14% decrease of the claims expenses.
The property insurance segment saw mixed results, with GWP increasing by 5% on the fire insurance line, and falling by 2.25% on the "damages to property" class. Claims paid for the fire insurance class also increased by 5%. Still, with a combined ratio of 62%, the fire insurance line remains one of the most profitable.
Access www.xprimm.com and download the 1H2015 Romanian insurance market statistics.