STATISTICS: ROMANIA, FY 2015: 8.22% GWP increase, reversing the last years' negative trend

According to data recently presented by the Romanian Financial Supervising Authority (FSA), the Romanian insurance market ended 2015 with GWP of EUR 1.97 billion, 8.22% up y-o-y. The total figure includes GWP by ASTRA in the first half of the year, before triggering the bankruptcy proceedings of the company. Disregarding the ASTRA results both for 2015 and 2014, the market growth stood at about 14.3% y-o-y.

However, although reversing the downsize trend seen in the previous year, the market still lacks some EUR 500 million in premium production to reach historic peak recorded in 2008, of EUR 2.4 billion.

Life insurance lines have recorded an overall growth in GWP of 10.8%, to EUR 408.1 million, the segment's share in the market portfolio increasing by some 0.5pp, to 20.7%. Unit-Linked insurance products saw the highest GWP growth rate, of 12.8%.

On the non-life side, GWP went up by 7.5%, to EUR 1.56 billion, an increase mainly supported by the MTPL insurance lines which saw a double digit increase in GWP, of 17.44%, to EUR 739.9 million and currently accounts for a 37.6% share of the market premium production. Remaining in the motor insurance field, it is worth noting that after years of continuously decreasing, also the Motor Hull line saw a slightly positive trend, with GWP going up 0.2%, to EUR 379.67 million. The 15% hike in the new cars sales recorded in 2015 certainly is one of main drivers of the GWP growth, along with the increasing MTPL tariffs.

Top 3 Romanian insurers in 2015 were ALLIANZ-TIRIAC, with a 12.05% market share, OMNIASIG VIG (11.16%) and GROUPAMA (9.20%). Only one pure life insurer is present in Top 10 ranking, namely NN Life Insurance (6th rank; 7.2% market share), while ASTRA still holds the last position in Top 10 despite considering only its 1H results.

It should also noted that a share of almost 60% of the market GWP represents the contribution of the insurance brokers' activity to the premium production of 2015, percentage which is by about 3pp higher than in 2014. The evolution seen by the insurance brokerage market contradicts the fears expressed by some of the market's observers last year when the FSA issued a new rule on the authorization and operation of insurance and/or reinsurance brokers, requiring an increase of the share capital of insurance brokers to RON 150,000 prior to 31 December 2015. Although at the time many felt that the new requirement may cause a weakening of the brokerage market through the loss of an important number of players, the result was quite opposite. Thus, although the total number of active insurance brokers apparently decreased, the overall activity was not affected because many of the small insurance intermediation companies have merged of became brokerage agents for larger brokers, continuing thus to do business. At the end, the insurance brokerage segment found itself in a better position, with stronger players and an increased volume of intermediated premiums.

Access www.xprimm.com and download the FY2015 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

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

GENERALI Group results for year 2018

In 2018, GENERALI Group operating result reached EUR 4,857 million (+3.0%), with a net profit of EUR 2,309 mil. (+9.4%). The total gross written premiums (GWP) of the Group amounted EUR 66,691 mil. (+4.9%).

14.03.2019

MetLife announced leadership changes as part of CEO transition

MetLife announced a series of changes to its senior leadership ranks in connection with its CEO transition, all of which are effective May 1, 2019. In January 2019, the BoD announced that Michel KHALAF, President, U.S. Business and EMEA, will become MetLife's President, CEO and Member of the Board effective May 1, replacing Steven KANDARIAN, who is retiring.

14.03.2019

HANNOVER RE launches an insurtech innovation platform

Germany-based Hannover Re launched a platform designed to bring the insurance companies and insurtech innovators closer. Through the "hr | equarium" platform, Hannover Re wants to facilitate the connection between supply and the demand for insurtech solutions, taking advantage of its worldwide spread.

14.03.2019

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