Seven for UNSAR
Starting with 22nd of March 2007, seven insurers became members of the
National Association of Insurance and Reinsurance companies from Romania
(UNSAR): AIG Romania, ASITO Kapital, BCR Life, FATA Asigurari, OMNIASIG,
OTP Garancia and UNITA. Thus, the number of profile companies, members
of this Association, is 24.
According to the data presented by Insurance Profile Review, the cumulated
market share of the Association reaches 95,43% comparing to 78,6% in
the previous year.
"UNSAR has increased its representation through these new members", Florentina
ALMAJANU, General Manager of the National Association of Insurance and Reinsurance
Companies from Romania declared.
The XPRIMM's editorial staff contacted the leaders of the new entered
companies for a comment on this important event of the Romanian insurance
"OMNIASIG has joined in the UNSAR to have a constructive contribution in case
the Association intends to do something for the market", Constantin TOMA, President-General
Director of OMNIASIG, has declared exclusively for XPRIMM Newsletter.
"To join UNSAR is a normal phase in the company's development, representing a
confirmation of the accelerated increase registered by our company in the previous
years", Florina VIZINTEANU, President-General Director of BCR Life, considers.
In the same time "the affiliation to a professional organization with
a high degree of representation was always UNITA's aim", Iulian DUMITRU,
President and Executive Director of UNITA, has highlighted.
"The affiliation to a professional union is a normal thing for a company with
the statute and importance of AIG", Mihnea TOBESCU, AIG's General Manager, believes.
"To join in an association of such importance for the Romanian profile market
represents a reason for us being proud", Marcel PIRCIOG, General Manager of ASITO
Kapital, has affirmed.
"Thus we wanted to emphasize our involvement in the development on long term
of the Romanian insurance market", Iulian MIHAI, Deputy General Director Non-life,
OTP Garancia has declared
According to sources from the market, others companies like AIG Life
intend to become members of the professional union.
UNSAR was established in 1994 as professional organization, nongovernmental,
apolitical, independent, nonworking character, created for the development,
expanding collaboration and cooperation in the insurance and reinsurance
field both on internal and international plan.
by email@example.com, 23.03.2007
VIG in Romania - growth over the group's average
The companies owned by the VIENNA Insurance Group in Romania (OMNIASIG,
OMNIASIG Life, UNITA and AGRAS) underwrote in the previous year almost
EUR 237 million, which means a growth of almost 57%, in comparison to
Basically, the VIG companies in Romania have expanded their business
by 40%, in comparison to the 17% average growth of the group in 2006.
That growth can be translated to RON 100 million more than the results
According to the results announced by the VIG Group in Vienna, the Austrian
group has ended 2006 with a gross profit of EUR 321 million, with 34%
more than the value registered in 2005. The underwritings in 2006 have
grown by EUR 900 million, to a total of EUR 5.9 billion.
The contribution of the insurance companies owned by VIG in the CEE,
in the total volume of underwritings of the group is of 38%. On the general
insurance segment, 52% of the underwritings of the Austrian group come
from the CEE. The gross profit achieved by VIG in Romania, in the previous
year has been of almost EUR 3 million, which is equivalent to almost
1% of the profit achieved at the group level.
According to Insurance PROFILE Review, OMNIASIG has achieved a profit
of EUR 5.47 million and AGRAS, EUR 0.27 million, while the other two
companies have registered losses. Though the VIG representatives have
not excluded a possible new acquisition in our country, they are not
under negotiations at the moment for another takeover, Gunther GEYER,
the CEO of VIG has declared at the press conference.
Be referring especially to Romania and Bulgaria, Gunther GEYER has affirmed
that the perspectives of development are optimistic and "in 15 to
20 year these countries will know a similar development to the one present
in Western Europe and this context is very favorable for the evolution
of the insurance sector in these countries".
Furthermore, the company's official has declared that the agricultural
insurance segment has a big potential and in this year a growth of almost
25% is expected by the group in Romania.
In the previous year, according to the Insurance PROFILE Review, AGRAS
underwrote agricultural insurance of only EUR 6.18 million, in decrease
of almost 40% in comparison to the results of 2005. Basically, according
to GEYER's statement, AGRAS has as objective for this year a total volume
of underwritings on agricultural segment of almost EUR 8 million.
"In 2006 we have made important steps towards the development of VIG in
the CEE and Austria. We have achieved a grater market share on all the segments
in Austria and in CEE we have extended our underwritings' share comparing to
other international insurers. The evolution of the activity can also be seen
in the financial result which has registered a strong evolution. This situation
determines the groups' management to take into consideration a growth of about
25% of the dividends", GEYER has added.
by firstname.lastname@example.org, 29.03.2007
New players on the private pension market
The representatives of the Romanian Private Pension Supervisory Commission
(CSSPP) announced that Romanian Commercial Bank (BCR) applied for a
licence as a depositary of facultative pension funds at the beginning
Between 1st and 21st of March, also in order to operate on the Pillar
III, ING Life put in for the authorization of the second facultative
pension fund and DELOITTE Audit for the appraisal as audit of these types
For the first fund, ING Life made the request for the appraisal in the
same time with the request for the authorization as administrator of
facultative pension funds as the legislation provides.
At present, according to CSSPP, the only authorized bank as depositary
of facultative pension funds' actives is BRD - Groupe Societe Generale
and ERNST YOUNG Assurance Services is the only financial audit for these
by email@example.com, 26.03.2007
Capital infusions of RON 435.32 million
The capitalization of the Romanian insurance market in 2006 grew at the
end of 2006, to over RON 1.3 billion, compared to RON 876.66 million
registered in 2005.
The insurers with the largest capital are ASTRA-UNIQA with RON 192.71
million, UNITA with RON 114.29 million, OMNIASIG with RON 103.24 million,
ASIBAN with RON 76 million and ASIROM with RON 63.79 million.
The 50% capital growth of the insurance market players can be explained
by the need to cover the losses on the motor insurance segment.
"About 90% of the EUR 130 million funds have been allocated to covering
the losses of the previous years on the motor insurance segment, in order to
maintain the solvability at the level agreed by the authorities", Cristian
CONSTANTINESCU, the President of UNSAR (The National Union of the Insurance Companies
in Romania) has declared.
by firstname.lastname@example.org, 3.04.2007
Bucharest vs. Cluj - 1 : 0
Ioan VREME, known as Deputy General Director of BT Asigurari, a renowned
insurance specialist, announced his leaving from the company after
more than 12 years of activity on 27th of March 2007. According to
his declaration, on the ground of his decision stay exclusively personal
reasons, Ioan VREME intending to establish his residence in Bucharest
(together with his wife and two children). He was involved in the majority
of company's development plans on many activity fields: IT, actuarial-
reinsurance, insurance analyze, life insurances, administrative, advertising
and public relations.
According to the preliminary data of 2006 published in the Insurance
PROFILE Review, BT Asigurari occupies the 9th position in the general
insurances' top, with a 4.38% market share.
by email@example.com, 2.04.2007
The most expected debut: Pillar II
The official debut of the Pillar II - the compulsory private pension
scheme- was made in a press conference held by Gheorghe BARBU, Minister
of Labor, Social Solidarity and Family, Sebastian VLADESCU from the
Ministry of Public Finance, Mihai SEITAN, President of the National
House of Pensions and Other Social Insurance Rights and Mircea OANCEA,
President of the Romanian Private Pension Supervisory Commission on
the 29th of March.
The four officials, personalities with a substantial involvement in the
reform of the Romanian pension scheme, presented the main coordinates
of the reform, its functional principles and the implementation calendar
of Pillar II. Also, the beginning of the authorization process for the
establishment of the functional structures of compulsory private pensions'
market (operators, depositaries, audits and pension schemes) was announced.
"From our analyzes, Pillar II will totalize about 2.3 million members, over EUR
135 million administrated actives, meaning 0.14% of GDP, in 2008. We estimate
that in the next three years, until 2011, the members will reach over 1 million",
Gheorghe BARBU stated.
Being known that the amounts corresponding to the contribution to Pillar
II will come from the present public system's contributions, the officials
affirmed that the budget deficit from the public system will be covered
by the state. "This deficit represents the cost of the reform's implementation,
cost assumed by the state, being conscious that it's an investment. It
will be covered through the finance of the consolidated budget deficit",
Sebastian VLADESCU declared.
"It may seem an unbelievable affirmation from the part of a Minister of Public
Finance , but this cost makes me happy because we all know that the future benefits
will be important both from social aspects and from the contribution aspect on
which the private pension market's development can increase the economy, as a
whole", the official added.
"Private pensions pass from the solidarity approach to the introduction of the
market economy in the pension field: we talk about property- the counts are the
contributors' property-, profit - money is invested and capitalized through a
professional administration, individualization - the prosperity at the retirement
age depends in a great measure on the personal saving options through private
pensions. So, in time, the existence of this complex pension system will have
an important contribution to the mentality's change, to the education of population's
entrepreneurial spirit. I am glad that finally, after long hesitations, we have
succeeded in creating this project", Mihai SEITAN, known supporter of the pension
reform and who had a major contribution to the promotion and practical creation
of it, affirmed.
The announced calendar provides four months for the authorization process,
followed by five months in order to join in one of the pension fund and
to distribute the members as starting 2008 the first contributions to
by firstname.lastname@example.org, 30.03.2007
EFG Eurobank invests in two insurance companies
The Greek financial group EFG Eurobank, the majority shareholder of BANCPOST,
has invested RON 24.12 million in the establishment of two insurance
companies in Romania.
The two entities, EFG Eurolife Asigurari Generale and EFG Eurolife Asigurari
de Viata were registered in the Trade Register Office on the 16th of
EFG Eurolife Asigurari Generale has a RON 11.23 million social capital,
the majority shareholder being EFG Eurolife AEGA (Greece) with 85%, together
with EFG Eurobank Egasias with 9,9% and EFG Eurolife AEAZ (Greece) with
As concerns EFG Eurolife Asigurari de Viata, EFG Eurobank Egasias will
hold 9,9% of the RON 12.88 million social capital The main shareholder
of the company is EFG Eurolife AEAZ with 85% while EFG Eurolife AEGA
Until now, important financial groups from Greece have shown their interest
in the Romanian financial services market.
So, ALPHA Bank, ATE, EFG Eurobank, EGNATIA Bank, EMPORIKI Bank, NBG and
PIRAEUS Bank hold an about 11% market share.
In the same time, NBG was one of the two finalists at the CEC's privatization.
Greek companies hold shares also to insurers like GARANTA, NBG Insurance
and ATE Insurance.
by email@example.com, 26.03.2007
COFACE enters the insurance market
COFACE Austria Kreditversicherung AG, the credit insurance division of
COFACE, has begun its insurance activity on the Romanian insurance
market on April, and the main segment will be the credit insurance
for local and external debts.
"The insurance of the credit risks for local and external credits is the principal
COFACE Group's object of activity and starting now this service will be offered
on the Romanian market", the representatives of the company has announced.
"We count on 15-20 clients in the first year, multinational companies and big
national companies", Cristian IONESCU, COFACE's General Director, declared at
the end of 2006.
COFACE is the only company which has notified its intention of opening
a branch in Romania according to the establishment right.
by firstname.lastname@example.org, 26.03.2007
Pillar III, functional from May
"May might bring at least 4 operators on the facultative pension market, which
will administrate 5 pension funds, with contribution to the system", Mircea OANCEA,
President of the Romanian Private Pension Supervisory Commission stated.
"As it known, ALLIANZ TIRIAC has already got the authorization as pension company,
and it is on the point of getting the authorization as administrator of facultative
private pension. In the next two weeks, other 4 operators will be authorized
as administrators of facultative pension funds. Also, it's about to be authorized
a new depositary", the official added.
The four companies which are about to be authorized as administrators
of private pension funds are the Administration Company of Facultative
Pension Funds ALLIANZ TIRIAC, ING Asigurari de Viata (2 funds), AVIVA
Asigurari de Viata and BCR Asigurari de Viata . BRD- GSG is the first
bank authorized as depositary, while ERNST & YOUNG Assurance Services
and DELOITTE Audit are authorized for the audit activity.
The authorization period for Pillar III exceeded the public's expectations
and ours. Let's not forget this is a pioneered action in Romania both
for operators and Commission. In the last 5 months from the launch of
authorization process, we've had plenty of discussions with operators
regarding the procedures and the documents' content, defining many aspects.
I believe this phase has already passed and in short time we will have
a functional market in this field, with a rich offer", Mircea OANCEA
explained. He also added that" these 5 months represent a useful experience
which will be used in the authorization process on the Pillar II. In
consequence, we will carry on this phase in the proposed rhythm".
by email@example.com, 29.03.2007
The first pensions' scheme is...
The Council of the Private Pensions System Supervisory Commission (CSSPP)
has granted the right to administer private pensions funds to ING Life.
Also, on this occasion, the first decision of authorization of a prospect
of the private pension scheme ING CLASIC has been approved.
Therefore, after this approval, ING can begin advertising ING CLASIC.
According to the CSSPP the administrators can collect the contributions
of the participants and invest the funds' assets in the interest of the
participants and beneficiaries in stock market instruments.
"This year, in may there could be about 4 players on this market, which
will administer 5 pension funds", Mircea OANCEA, The President of the Private
Pensions System Supervisory Commission has recently declared.
"It is a well-known fact that ALLIANZ-TIRIAC has already received the authorization
to act as a pensions' specialized company; now, it has only to receive the authorization
as a private pensions administrator. In about two weeks, another 4 companies
will be authorized as administrators of private pension funds", the CSSPP
official has added.
by firstname.lastname@example.org, 3.04.2007
Heath insurance abroad for Romanians
The free circulation of the financial services has started producing the
first effects in the private pensions field. The insurance companies usually
offer thru a Romanian partner services with international coverage.
An good example is the company MEDIHELP International, a part of SOS Medical
Group, the exclusive representative of GOODHEALTH Worldwide, BUPA International
and SOS International.
About the benefits and possible disadvantages of the products, Antonio
SOUVANNASOUCK, Managing Partner, ASIGEST has declared: "The national
products momentarily cover only the minimum needs of the costumers, the
market being at the beginnings of its development. Nevertheless there are
much more complex policies which are already offered on the Romanian market.
If the standards of the medical infrastructure of the country don't correspond
to the requirements, the medical services can be offered in medical facilities
abroad. In this context, the most frequent destination is Vienna".
Needless to say that the supplementary benefits can be translated into
Therefore is the case of the examples above, the initial purpose was to
offer medical services at an international standard to the employees of
a foreign company that work in Romania. Because of the fact that once Romania
entered the EU, the foreign companies can now sell medical insurance policies
also to Romanians. Nevertheless there are a couple of practical limitations.
Antonio SOUVANNASOUCK explains: "The foreign companies close contracts
of collaboration with Romanian medical clinics. I know the example of a
British company that provides medical services thru two medical clinics
situated in Bucharest. It is obvious that this small territorial coverage
makes possible to address only to a small audience. In the case in which
the necessary medical services are not available in Romania, the insured
persons have the possibility of choosing a clinic abroad. But in this case,
the travel costs are not covered by the policy which means new complications".
Therefore in order to fully-satisfy the needs of a large audience, the
real solution is to develop the national services.
At the National Health Insurance conference all the important aspects of
development of this segment of the insurance market will be debated.
by email@example.com, 29.03.2007