After a 21.7% GWP growth in 2017, Gothaer's Romanian unit reports 37% increase in premiums in 1Q2018

23 May 2018 —
For Gothaer Asigurari Reasigurari, 2017 meant a two-digit growth y-o-y increase in GWP (21.7%), to about RON 119 million. Related to the Romanian non-MTPL non-life insurance market's trends (up by 8.2%)*, this result confirms the solid development of Gothaer in Romania.

"For the third consecutive year, we managed to keep our performance in line with our goals: solid growth on the main insurance segments, and a net actual result above plan, thus taking a step forward towards the break-even point and profit. In our 5-year presence in Romania, we deployed our best efforts to support Gothaer to grow at the best pace, and remain sustainable on a market prone to many changes and challenges," declared Anca BABANEATA, General Manager, Gothaer Asigurari Reasigurari.

There are two other ratios of essence for the stability of the company: gross loss ratio below 40%, which shows a sound portfolio, and keeping the number of grounded complaints down to 0 (zero), which shows that the investments made in the optimization of claim processing and not only, pay off.

"The business of Gothaer in Romania follows an ascending trend, which we are happy to witness, and shows that our plans are sustainable, and that all the investments we have made over the years in this company would eventually return the results we envisaged when we made the decision to enter the Romanian market. We look confidently into the future, supplying full support from the Gothaer Group for a continued healthy growth on the Romanian insurance market. Professionalism, flexibility, innovation and a customer-centred approach are the keywords of Gothaer brand, and pillars of its mission on the local insurance market," declared Dr. Christopher LOHMANN, CEO Gothaer Allgemeine AG and Chairman of the Board of Directors of Gothaer Asigurari Reasigurari.

The business volume growth was supported in 2017 by all business lines, with Motor Hull virtually taking off. Still, Gothaer continues to report a 40.3% share of motor insurance out of its total portfolio, which remains, as desired, way below the share reported for motor insurance out of the total Romanian non-life insurance market.

"The first quarter of 2018 shows a 37% growth of gross written premiums v. the same period of last year, and this gives us faith that we will be able to reach our very ambitious targets set for this year and the years to come, when the company is expecting an increased profitability. We rely on the support of the Group we are part of, the support and trust of our partners, and of a young and highly dynamic team, boosting of ideas and eager to show that with Gothaer details make the difference on the Romanian insurance market. And the steps that we take reinforce our strong belief in a fair and sustainable approach that finally would always bring value to our customers," added Anca BABANEATA.

In 2017, the Gothaer Group reported a 5.6% increase of the net income (to EUR165 million) and 8% of equity (standing at EUR2,154 million), while the solvency value of the Group have seen a further upward trend, better than the previous year, standing at 257% in the fourth quarter of last year. "We have reached important milestones in the implementation of Gothaer 2020 Group strategy: the digitization of our business model is progressing in all parts of the Company and new, more efficient structures and processes have been set in motion," said Dr. Karsten EICHMANN, Group CEO.

*source: report of the Financial Supervisory Authority, internal determinations of Gothaer (annual evolution out of the Total Non-Life Gross Written Premiums, less insurance Class 10, where MTPL and similar polices account for more than 97%)