XPRIMM News No. 138, August 20th, 2009

Romanians and the sense of property

by mihaela.circu@mxp.ro

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Interview with Iuliana HAMPU,
General Manager
RAI Asigurari

by oana.radu@mxp.ro

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Iuliana HAMPU,
General Manager
RAI Asigurari

ISC approved the switch to the dual system and the new management of ARDAF
ARDAF actually switched from the unitary to dual system of management, as changes made in this respect to the insurer's constituting act, adopted by the General Assembly of Shareholders in April this year, were approved by the ISC, according to a report submitted to BSE.
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by andreea.ionete@mxp.ro, 7.08.2009

The semestrial profit of ALLIANZ-TIRIAC Asigurari remains at the H1/2008 level
In the first half of the year, ALLIANZ-TIRIAC Asigurari underwrote premiums RON 676 million worth, while the correspondent operational profit was RON 18.3 million (EUR 4.4 million, a result similar to that obtained in H1/2008). "Stress tests that we conducted show that we would manage to overcome without problems even extreme situations, which would produce the most pessimistic scenarios", Cristian CONSTANTINESCU, President, ALLIANZ-TIRIAC, said.
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by mihai.cracea@mxp.ro, 7.08.2009

Business decline, and tripled profit at ING Asigurari de Viata
The life segment leader, ING Asigurari de Viata, ended the first half of 2009 with underwritings of RON 261.35 million, down 4.5% compared with H1/2008, an evolution a little lower than market average, which in the same period fell by 3% as a result of the lower appetite of customers for unit-linked products. Instead, the company's gross profit has tripled in the analyzed period, up to RON 55 million, under the circumstances of increasing income from investment and decreased administrative costs.
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by andreea.ionete@mxp.ro, 13.08.2009

Underwritings of EUR 59 million for UNIQA in H1/2009
The insurance company UNIQA underwrote, in the first 6 months of the current year, written premiums whose value approached EUR 59 million (RON 250 million). Also, in the same period, UNIQA Asigurari has increased 3.7 times the net profit in H1/2009, after it started a project to streamline claims. Thus, the company achieved a profit of RON 5.23 million (EUR 1.24 million), according to recent statement of President Ileana HORVATH.
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by oleg.doronceanu@mxp.ro, 20.08.2009

ASIROM shares, withdrawn from the RASDAQ market
National Securities Commission (NSC) approved the withdrawal from trading on the RASDAQ market of the shares of the insurer ASIROM Vienna Insurance Group, starting today, August 14 this year, according to a report issued by the company to BSE.
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by andreea.ionete@mxp.ro, 13.08.2009

GENERALI Asigurari - 15.5% growth in first half
In the first half of 2009, GENERALI Asigurari recorded a total volume of underwritings of RON 245 million, increasing by 15.5% compared to the same period of 2008, three times above the market average.
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by andreea.ionete@mxp.ro, 6.08.2009

30% of the underwritings of RAI Asigurari - made through on-line sales
"During the first 6 months of the year, there have been issued, both directly on the company's site - www.asigurarimedicale.com -, as well as through partners, 45,000 policies in electronic format (of a total of 165,000 policies), totaling a GWP volume of RON 1,380,500. This represents 30% of total GWP registered by the company", Iuliana HAMPU, General Manager RAI Asigurari, said for XPRIMM Newsletters.
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by mihai.cracea@mxp.ro, 14.08.2009

30% increase for CREDIT EUROPE Asigurari
Compared with the similar period last year, the volume of gross written premiums of the insurance company CREDIT EUROPE increased by 30%.
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by oana.radu@mxp.ro, 20.08.2009

SAFETY Broker - KIWI Finance Partnership
In July, SAFETY Broker signed a partnership with KIWI Finance, the largest loan broker in Romania, in order to provide insurance products to the potential clients. This way, KIWI Finance customers also have the possibility to buy insurance through consultants of the loans broker.
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by mihai.cracea@mxp.ro, 12.08.2009

ASTRA Asigurari and DACIA are collaborating to streamline auto repair
The insurance company ASTRA recently signed a partnership, for a period of one year, with the group DACIA, which aims to improve the services offered by the DACIA authorized repair shops network.
Based on the partnership signed between the two entities, ASTRA will advise clients who have a Motor Hull or a MTPL policy to fix their cars in DACIA units.
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by marian.mardare@mxp.ro, 12.08.2009

Over one million people save by the seatbelt
Over one million people are currently still alive, after their lives have been saved, in the past 50 years, by an invention of the same age: the three points grip seatbelt. Nils BOHLIN and VOLVO, a car manufacturer renowned for the safety of its cars, are the inventors of the three points safety belts, informs www.stiriauto.ro.
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by mihai.cracea@mxp.ro, 13.08.2009

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ALLIANZ New Europe registered a 9% decrease in H1
In the first half of 2009, ALLIANZ New Europe recorded EUR 1.9 billion in premiums, reflecting the devaluation of Central and Eastern European currencies. Compared to EUR 2.1 billion in the first half of 2008, premiums decreased by 9%, according to company's press release.
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by oleg.doronceanu@mxp.ro, 19.08.2009

VIG: H1/2009 results
In the first six months of 2009, VIENNA Insurance Group recorded a total of written premiums (consolidated) of EUR 4.25 billion. Based on EUR, this corresponds to an increase of 0.9 percent compared to the same period of the previous year. The net earned premiums rose by 4.1 percent (in EUR).
Based on local currencies, VIENNA Insurance Group registered a plus of 6.3 percent of written premiums, while the net earned premiums climbed by 9.7 percent.
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by eugen.spivacenco@mxp.ro, 20.08.2009

Russia: Insurance market - up by 4.2%
In the first six months of this year, Russian insurance companies underwrote EUR 11.1 billion in premiums, that is 4.2% more than in the same period of 2008. In the same time, the paid claims rose by 24.7%, to EUR 7.9 billion, according to Federal Service for Insurance Supervision (FSIS).
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by oleg.doronceanu@mxp.ro, 17.08.2009

Moldova: 11% decrease for the insurance market in H1/2009
Insurance companies from Republic of Moldova underwrote in the first half of this year MDL 379.75 million (EUR 26 million) of gross premiums, down by 11% compared to the same period of last year, according to National Commission of Financial Markets (NCFM). Non-life segment has a 93.6% market share, with MDL 355.4 million (EUR 24.4 million), while the life segment recorded MDL 24.2 million (EUR 1.6 million).
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by oleg.doronceanu@mxp.ro, 13.08.2009

Bulgarian healthcare ministry wants to introduce the second pillar of health insurance
Bulgarian healthcare ministry has decided to kick-start the long-awaited reforms, by introducing the second pillar of health insurance, according to DNEVNIK. The plan calls for cutting the scope of the basic medical services package reimbursed by the national health insurance fund (NHIF) to make room for private players to join in and build on. To this end, the ministry can tap the NHIF's reserves of some EUR 204 million parked with the central bank or seek a state subsidy - Healthcare Minister, Bozhidar NANEV, said, ruling out an increase in the health contribution rate sooner than 2010.
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by oleg.doronceanu@mxp.ro, 11.08.2009

Croatia: insurance - down by 1.5% in 7 months
The insurance companies operating in Croatia reported a combined premium income of HRK 5.95 billion (EUR 814.5 million), in increase by 1.53% compared to the same period of last year (EUR 826 million).
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by eugen.spivacenco@mxp.ro, 18.08.2009

SOCIETE GENERALE Osiguranje has operating license in Serbia
The National Bank of Serbia granted an operating license to the Belgrade-based joint-stock insurance company SOCIETE GENERALE Osiguranje, whose core activity is providing life insurance services (life insurance, annuity insurance, supplementary life insurance and other types of life insurance envisaged by the law).
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by seenews, 12.08.2009

Serious accident on the largest Russian power plant
In the morning of August 15, on Sayano-Shushenskaya dam in the Khakasia, a Siberian region in Russia, a serious accident took place. Sayano-Shushenskaya hydroelectric power station, which is situated on the Yenisei River, is the largest power plant in Russia and the fifth-largest hydroelectric plant in the world, by average power generation.
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by eugen.spivacenco@mxp.ro, 19.08.2009

IX International Yalta Finance Forum
14-18 September 2009 the IX International Yalta Finance Forum will take place traditionally in Yalta, Ukraine, INTOURIST Hotel. The event is dedicated not only for insurance market participants, but also with the participation of representatives of other financial services - banking, investment businesses, credit unions, pension funds and others. The Organizer is Business Strategy Center «Perspektiva», with the support and assistance of the League of Insurance Organizations of Ukraine and the government.
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The 5th International Conference "World Views for LIFE INSURANCE in Eastern Europe, CIS and Asia"
17th - 18th November 2009, Hotel Baltschug Kempinski, Moscow, Russia
In November, Moscow will once again host one of the key conferences on life, banc-assurance and asset management in emerging markets.
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November Business Meetings in Moscow
On 24-25 November 2009, for the 8th time, Russian capital, Moscow will be the venue of the November Business Meetings of Reinsurers, organized by All-Russian Insurance Association and "Business Character" Group, with the support of PRIMM - Insurance & Pensions Magazine as Media Partner. The event will be held at Holiday Inn SOKOLNIKI.
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The largest capital increases operated by banks in H1
Recapitalizations of local lenders in the first six months of this year totaled EUR 169 million, according to data provided by the National Trade Register Office (ONRC), equal to nearly six percent of the total foreign direct investments (FDI) in Romania in the same period. Last year, recapitalizations in the banking system represented three percent of the value of FDIs.
The largest capital increase, worth EUR 53.6 million, was operated by BANCPOST, while Banca Romaneasca and MILLENNIUM Bank rank second and third, with EUR 43.5 million and EUR 34 million, respectively.
Analysts said that these recapitalizations are in response to the outsourcing process, developed by companies within groups. "Banks have undergone an outsourcing process and had to choose between two solutions: capitalizations or subordinated loans. Also, banks increased their share capital to protect even more their solvency indicator, which is affected by the rise in provisions", the Secretary General of the Chartered Financial Analyst (CFA) Association Romania, Adrian MITROI, said.
by standard.ro, 19.08.2009

First estimates: 5.5% interest rate on Romania's Eurobonds
Romania could issue bonds in euro on the foreign market at interest rates ranging from 5.25-5.5 percent, according to investment managers interviewed by Business Standard.
The Ministry of Public Finance (MFP) will continue to receive proposals from investment banks until Monday for brokering new issuances, worth a minimum EUR 500 million and with a maturity of at least five years, scheduled for the second part of this year. The leader of the brokerage group could receive 0.3-0.6 percent of the value of the issuance, according to analysts.
"MFP is trying to benefit from the window of opportunity created by the agreement with the IMF [International Monetary Fund], which improved the perception of foreign investors regarding Romania, and raised their confidence that the National Bank of Romania has the situation under control, and from the low interest rates in the euro zone", said Nicolae ALBU, Investment Manager of Erste Asset Management Romania (EAM).
The minimum limit of the interest rate estimated above is the same as the coupon rate for the EUR 300 million bond issue for the local market, which is to take place today. However, analysts warn about the short validity of the maximum limit, due to market volatility, and the perception regarding uncertainties related to Romania's macroeconomic indicators. "I believe this opportunity should be exploited in one month or two at most, otherwise it could be too late", the General Manager of Explore Asset Management, Cristian TUDORESCU, said.
Hungary launched a successful issuance of EUR 1 billion on five years with an interest rate of 6.75 percent one month ago. "I cannot see why Romania's operation would not be a success also. The degree of confidence and the appetite for risk at the international level, and at the emerging Europe level are rising", said David OXLEY, analyst Capital Economics.
by standard.ro, 14.08.2009

New money raises personalized investments by 70%
The individual accounts of rich clients attracted by investment administration companies (SAI) are worth 70 percent more than at the beginning of this year, mainly due to the subscription of new resources, and the appreciation of the quotations of shares.
The seven SAIs, of a total 19, members of the Association of Fund Administrators (AAF), that offer personalized investment administration services, were managing accounts worth nearly RON 44 million (over EUR 10 million), according to AAF's July report. To this are added over RON 6 mln (EUR 1.5 mln), administered by Explore Asset Management, a company that is is the only one on the market handling personalized accounts exclusively.
Three administrators dominate this market segment: RAIFFEISEN Asset Management, with a 45 percent share, AVIVA Investors Romania, with 28 percent, and Explore Asset Management, with 13%.
RAIFFEISEN Asset Management is mainly responsible for the increase in assets on the market segment. "At the end of last year, we had some RON 16 million. Now we have 23 million, with the administered amounts higher due to subscriptions. The number of portfolios remains the same throughout the year, while the individual accounts that we administer belong to some institutional investors, namely insurance companies investing in "unit linked" products", the President of RAIFFEISEN Asset Management, Mihail ION, told Business Standard.
Investment administrators only partially confirm the influence of gains on the stock exchange on the rise in personal account assets. Since the beginning of the year, stock exchange indexes gained some 26-66 percent, but only "some of the clients have more recently raised their exposure on shares. Others preferred a more conservative approach", Cristian TUDORESCU, General Manager of Explore Asset Management, said.
by standard.ro, 13.08.2009

Investment managers prefer conservative placements and gold
The crisis has led to a change in the behavior of investment fund managers, who are now opting for assets as liquid (bank deposits, monetary mutual funds) and as conservative as possible (gold), who are no longer taking out loans to make investments, engaging in only strictly necessary expenses, and are carefully monitoring the prices of products, according to responses to a survey by Business Standard.
"Obviously, everybody is more cautious these days", said Cristian NACU, Partner of the Enterprise Investors private equity administrator.
"I appreciate fixed-revenues assets more than before. The change is long-term and I believe that the excellent returns that the equity funds registered [Ed. n. before the crisis] will be difficult to match in the future", said Eugen VOICU, Chief Executive Officer of AVIVA Investors Romania, a company that administers mutual funds and individual investment accounts worth some EUR 10 million.
Investment managers look at rises on the stock exchange with skepticism, and they plan to allocate part of their resources to gold, despite deposit-related expenses. Some consider a 10-20 percent share of gold in their portfolio to be appropriate. "Gold cannot hide inflation. Central banks have "printed" large quantities of currency, which are not yet reflected in the inflation statistics. As far as I know, the gold stock increases 2.5 percent annually, so any higher rise in demand is only influencing its price", Manager for Romania of Middle Europe Investments, Cristian R. FAEDER, said.
Daniel STIFTER, Head of EFG Eurobank Fund Management Romania, said he would not invest in gold, but rather plans to raise his exposures on the Stock Exchange, while waiting for quotations to bounce back. EFG EFM administers two mutual funds worth some EUR 17 million.
Adi LUPSAN, broker at INTERCAPITAL Invest, also focuses on the capital market. "As long as you guess the way the market is heading, you can make a profit. Even on a downward market there are instruments available to post a profit or protect your investment", LUPSAN said, referring to derivatives.
by standard.ro, 12.08.2009

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