No. 82, April 19th, 2007

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FIAR 2007 - International Insurance - Reinsurance Forum


Month by month

"We have decided that starting with April 2007, PRIMM-Insurance&Pensions Magazine, the most famous national profile publication, to reach our readers' office monthly.

So, instead of 6 issues a year, our readers will receive 12, divided in 10 in Romanian and 2 in English. These last ones will be launched within the two most great and popular international European events - FIAR and Baden-Baden", Sergiu COSTACHE, General Manager of the publication had stated.

According to the representative of Media XPRIMM Executive Board, the constant increase of the magazine's circulation and the double growth of the issues are determined by the need to access rapidly the latest insurance and private pension news, the significant growth of the readers outside the insurance market and the increasing interest for the private pensions sector.

Also, the new periodicity of the PRIMM Magazine has been determined by the amplification on national scale of the "Where do I insure myself?" Program and by a significant growth of the demand for these magazines across the country.

"Regarding the Romanian insurance and pension markets, I can say that everything is happening more and more fulminant. There are rising, permanently, new tendencies, important events are taking place more often, new operators appear, new regulations are issued, and the common need of communication is continuously increasing. Hereby, the decision of double frequency of the magazine is obviously part of a promoting policy of these markets", Daniela GHETU, Editorial Director, PRIMM-Insurance&Pensions Magazine had stated.

To order PRIMM-Insurance&Pensions Magazine Click here.

by alexandra.sandulescu@mxp.ro

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BCR Asigurari de Viata
Club ARO
The Money Channel


Interview with Mr. Serguei ZAITSEV,
Senior Underwriter
Central & Eastern Europe

XPRIMM: What is HANNOVER Re's strategy in the CEE and CIS reinsurance markets?
Serguei ZAITSEV:
One of our major strategic objectives is the optimal diversification of the portfolio. We would like to write more business outside the regions with high concentration of insured values like USA, Japan and Western Europe. A good geographical spread is of central importance for the allocation of available equity in countries and lines of business.
Therefore, we do not neglect any countries and certainly not Romania. At the same time, we are committed to our loyal cedents which are able to merit the quality of HANNOVER Re's services provided for them.

XPRIMM: What are the major opportunities and threats of the Eastern European re-/insurance markets?
S. Z.:
The Eastern European insurance markets show the above average growth potential. The insurance penetration is still well below the Western Europe's level, so that the solvent demand will continuously grow together with the increasing income of the population.
This demand shall be meat by well capitalized insurance companies. In some respect, the fresh capital - together with the necessary know-how - will come from foreign investors.
However, the role of professional reinsurers can not be under-estimated. HANNOVER Re would like to participate in this evolution by providing the eagerly needed reinsurance capacity. In so far, we see plenty of opportunities to do business in the CEE and CIS countries, in the years to come. We do not see any threats.

XPRIMM: What do you see the Romanian evolution in the context of joining EU?
S. Z.:
Romania has always had very well educated dynamic people. Nowadays, the solid legal framework and security within the European community would give the Romanians the opportunity to become wealthier in a shorter period of time.
The insurance market in Romania will grow even faster than before. HANNOVER Re would like to take part in this development by doing profitable business with professionally operating insurance companies.

XPRIMM: How does Romania contribute to your portfolio?
S. Z.:
We are quite satisfied with the results of our operations in Romania. We are providing our cedents with reinsurance capacity in all lines of business, including property, engineering, natural perils, motor hull and motor third party liability, general third party liability, marine and aviation, agriculture risks, etc.
We would expect increased demand in casualty lines and would be happy to serve our clients with appropriate solutions. We would like to be of greater service to medium sized companies and would support new established and niche players with the respective know-how and suitable business concept.

XPRIMM: Does HANNOVER Re support the mandatory households insurance project in Romania?
S. Z.:
In our opinion, the natural perils belong to the most dangerous category of risks that may affect Romania. As HANNOVER Re is one of the leading providers of the reinsurance capacity in this region, we see in the project of the mandatory households insurance in Romania the additional opportunity to do business.
The greatest difficulty will be to determine if the rates are adequate to cover the natural perils. Our center of competence regarding catastrophic business on a worldwide basis is HANNOVER Re (Bermuda), our group will be happy to help our cedents with additional reinsurance capacity to protect their clients against the perils of earthquake, flood and landslide.

XPRIMM: Thank you!

by andreea.ionete@mxp.ro

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Mr. Serguei ZAITSEV,
Senior Underwriter,
Central & Eastern Europe


National currency further appreciates
The national currency yesterday, April 18th 2007, touched a new six-and-a-half-year high against the USD, with the official exchange rate announced by the National Bank of Romania (BNR) down to RON 2.4469 for one USD.
The last time when the BNR reference rate was at this level was on October 18th 2000, when the USD was put at RON 2.4594. As compared to late last week, when the USD exchange rate was RON 2.4704, the local currency gained more than 0.02 units against the USD.
Analysts believe that the depreciation is triggered by the drop of the American currency on the international markets. The Romanian financial market does not perform direct trades with the American currency, but National Bank calculates LEU/USD ratio depending on the evolution in the international financial markets.
by costi.boroda@mxp.ro, 19.04.2007

Romania paying EUR 16 million less to EU this year
Romania's contribution to the EU budget will be diminished this year by EUR 16 million, as the European Commission (EC) will return to the member status funds amounting to nearly EUR 1.9 billion, not used in 2006, under the form of deductions from the amounts owed for 2007, the institution announced.
Romania will contribute this year to the community bloc budget, according to the pledges assumed in the relation with the European authorities, with EUR 1.1 billion. The under-spending level registered in 2006 and the revenues over estimations resulted in a new budgetary surplus for the EU budget, the lowest after 2000, according to a press release from EC.
Out of the total amount to be returned to the EU member States, worth EUR 1.848 billion, EUR 950 million is the difference among the budgeted expenditures, amounting to EUR 107.4 billion, and the actual cost level registered in 2006.
"The improvement of budgetary management and a better planning contribute to protecting the interests of tax payers: budget is used more effectively, and Member State pay only what it is really needed", as the European Commissioner responsible for Budget, Dalia GRYBAUSKAITE, declared in the press release. Germany, the largest tax payer to the EU budget, will pay this year by EUR 366 million less than scheduled, and the contributions from UK, France and Italy will be diminished by EUR 308 million, EUR 291 million and EUR 232 million respectively.
by costi.boroda@mxp.ro, 18.04.2007

Romania could adopt Euro in 2014
European Central Bank recommends Romania to adopt Euro currency at the time it is ready for this, according to those declared by Jean - Claude TRICHET, the President of European Central Bank (ECB), for the daily newspaper 'Evenimentul Zilei'. The President congratulated Romania for its efforts made in respect of the economic integration and he recommended the pursuit of these efforts in the future, as well.
In keeping with the European integration programme, Romania may adopt EUR in 2014. The new economic regime will require strict limits regarding LEU - EUR fluctuation. Romania will have to meet four nominal convergence criteria related to the inflation level, long term interest rates, budgetary level deficit and public debt level as ratios of GDP.
Romania has already fulfilled the last two terms asked by the European Union. "If we speak only about nominal convergence, then Romania is able to meet this within short time but in the absence of a real convergence, adopting EUR is detrimental to Romania", BNR Governor Mugur ISARESCU specified.
In 2006, Romania registered a GDP per inhabitant amounting to EUR 4,508, compared to EUR 27,600 which is the average registered in the 'old' 15 EU Member States.
by costi.boroda@mxp.ro, 16.04.2007

Tripled profits, in 2006, for BSE
The Bucharest Stock Exchange (BSE) reported for year 2006 net profits of LEI 15.5 million (EUR 4.4 million), about three times more than in 2005, and an almost double turnover of LEI 30.4 million (EUR 8.6 million), Mediafax reports.
The increase was triggered by large transaction volumes, and it may be fully incorporated in the equity. In 2005, BSE reported LEI 5.39 million in gains and LEI 13.6 million in turnover. BSE will propose its shareholders in a general assembly scheduled for May 4th 2007, to raise the equity from LEI 34.8 million to LEI 49.4 million, by incorporating reserves from the 2006 net profits (LEI 14.5 million).
According to Septimiu STOICA, the BSE Chairman, the achievements were triggered by the increase in transaction volume, diversification of trading methods and tools and by the Romanian capital market having drawn closer to maturity.
"It is also a consequence of the new regulations introduced. We worked a lot these past years on the regulations in the new Stock Exchange Code. I dare say that we are prouder with the institutional progress than with the financial results, which are by no means insignificant for a trade company", STOICA has mentioned.
by costi.boroda@mxp.ro, 6.04.2007

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Only one week

We remind you that only one week remains for registration at the 10th Edition of FIAR - International Insurance and Reinsurance Forum from Sinaia.
So, 28th of April 2007 is the last day when you can confirm your participation to FIAR , the most important spring event B2B for the insurance markets from Central and East Europe.
Over 200 participants from Austria ,Belarus Belgium, Bulgaria, Canada, Czech Republic, Cyprus, Denmark, Switzerland, France, Georgia, Germany, Greece, India, Ireland, Italy, Kazakhstan, Lebanon, Great Britain, Poland, Moldova Republic, Romania, Russian, Slovakia, Slovenia, Spain, United States, Sweden and Ukraine will be present at the anniversary edition of FIAR.
Click here for details
Click here to see the participants' list
Click here to register
by irina.galasanu@mxp.ro, 19.04.2007

BCR Asigurari launches a policy for commercial credits
BCR Asigurari launches a new product exclusively for the commercial companies called "the insurance of commercial credits given to legal persons by commercial companies".
The new product is for legal persons and covers the financial losses caused by the no cash in of the invoices' counter value from the clients on contractual term because of insolvency or payment incapacity of debtors
BCR Asigurari offers an insurance product very efficient in the creation of the development strategy of any commercial company, with its headquarters or residence in Romania, which wants to have a rigorous control over incomes from merchandises delivery or services providing. The advantages of this kind of insurance (improvement of the cash flow, the increase of the insured company's business volume), sustained by an entire analyze process and management, offers the fundamental of a healthy business.
"The insurance of commercial credits given to legal persons by commercial companies" comes to support the producers, the importers, the distributors and the providers who give commercial credits (invoices with fixed term payment) as a practical and easy modality of the business and company's assets protection, of improvement of cash-flow and of increase of the insured company's liquidity degree. Supporting the financial solvency of the insured, this product gives the possibility to increase the insured company's business volume, to increase the market share and to improve the competitive position, to have financial flexible relations with clients and to disperse the finance sources.
The real insurance's cost (the amount of the insurance premium) is established according to the level of the figure business on credit of the insured and to the debtor clients' dispersion degree (a higher dispersion degree is got if there are many debtor clients). Thus, a small premium quota can get the insured companies with high business figure and dispersion degree (usually corporations) and a higher premium quota have companies with small business figure.
by mihaela.circu@mxp.ro, 5.04.2007

Health Insurances, debated
Waited by the profile market for more than 2 years, the Methodology Norms regarding facultative health insurances have been finally approved by the Public Health Ministry
The lack of a adequate legislative framework, especially the lack of the application norms, has represented an obstacle in the development of the facultative health insurances' system.
Though the content of the normative act was elaborated together with the representatives of the profile companies, the final form of it is different from the agreed form at negotiations, according to market's sources.
Despite the legislation's lack, health insurances knew in 2006 the most accelerated enhance of the market , its gross written premiums growing with 208%.
All these issues were discussed at the CNS - National Health insurance Conference, coordinated by XPRIMM Publications and which took place today, 19th of April at the Parliament Palace with the support of Insurance Supervisory Commission, National Association of Insurance and Reinsurance Companies from Romania and National Union of Insurance Brokerage and Consultancy Societies from Romania.
by mihaela.circu@mxp.ro, 18.04.2007

A EUR 11 million profit for ALLIANZ-TIRIAC
Last year, ALLIANZ-TIRIAC grew the income from its insurance activity with more than 30%. Thus, the company kept its leading position on the Romanian insurance market, with a market share of about 20%.
Also, it has confirmed the fact that it is one of the most profitable local insurance companies. On the general insurances segment, ALLIANZ-TIRIAC got a EUR 11 million operational profit.
The amount of gross premiums underwritten by ALLIANZ on the general insurance segment increased with 6.5%, from EUR 1.77 billion in 2005 to EUR 1.89 billion in 2006. Romania had the higher increase rate at this insurance class. The amount of gross premiums enhanced with almost 33%, from EUR 220 million to EUR 292 million.
The improvement of the sales' efficiency and the continuous development of the insurance portfolio for legal persons have principally contributed to this evolution.
"This region will continue to be one of the increase engines. Taking into consideration the existed potential, we expect to increase rates of the incomes from premiums formed from two figures", Werner ZEDELIUS, member in the Board Meeting of ALLIANZ, responsible for the development of the group's activity on the growing markets comments referring to the evolution of ALLIANZ in the Central and East Europe.
Not only, had we kept our excellent position in the Central and East Europe, but we have succeeded in having a constant evolution", the quoted official declared. The ALLIANZ Group has been present in Central and East Europe since 1989, and in ex Soviet Union since 1990, operating on the 8 most important markets in the region. In each of these countries, the member company of ALLIANZ active in that country is in Top 5 best local insurers.
With a market share of around 12% in 2005, ALLIANZ is the leader of the international insurers in Central and East Europe and occupies the second place among the insurance companies in the region.
by mihaela.circu@mxp.ro, 5.04.2007

10 years in Romania for GRAS SAVOYE
On 10th of April 2007, the insurance broker GRAS SAVOYE Romania celebrated its 10 years of activity in Romania. 2007 is an important year both for the Romanian branch and for GRAS SAVOYE, which celebrates this year 100 years since its establishment in 1907.
Patrick LUCAS, the President of GRAS SAVOYE participated at this important anniversary event beside the Romanian team formed by 16 persons and managed by Laurent CHARLIER. Patrick LUCAS has been working for this company for over 20 years. In 1979 he was appointed President and CEO and in 1991 he became Managing Partner.
He was nominated Honorary President of the French Federation of Insurance and Reinsurance Brokers in 1997, President of the Forum for Towns' Administration in 1986, member of the management of the Reinsurance Central House and President of the French patronage Medef International for Africa, Pacific, Caribbean in 1989.
Outside borders, GRAS SAVOYE has a branch network in 30 counties of Europe, Africa, Middle East and Extreme Orient.
In 2006, the company mediated a EUR 11.64 million premiums (RON 41.03 million), the real increase in national currency being 51.89%.
According to the Insurance Profile Review, GRAS SAVOYE Romania is the leader on the mediated premiums from goods polices. Its share market on this segment is 35% meaning EUR 4.5 million. The weight of this type of insurance in the company's portfolio represents over 40%, business figure in 2006 exceeding EUR 1.1 million.
by andreea.ionete@mxp.ro, 11.04.2007

Gross profit of EUR 4.2 million for ASIROM in 2006
In 2006, ASIROM posted a EUR 4.2 million income and gross written premiums worth EUR 26.11 million for life insurance and EUR 153.4 million for non-life insurance.
ASIROM has finally managed to become profitable after two years of loss in a row. In 2004 and 2005, the company posted a total loss of EUR 17.7 million.
The insurer held, at the end of 2006, the second place in the local market on the underwritings volume basis and had a 10 per cent market share, according to Insurance PROFILE Review.
As the company's officials stated, ASIROM recorded the most important growth, of 35%, for fire and natural catastrophe insurance and 18.5% for agricultural insurance.
The gross claims the insurer paid to its clients last year amounted to EUR 119.4 million.
"The society's management constant concern was maintaining the financial balance of ASIROM, as the company it is now profitable and the financial indicators are above the limits set by the Insurance Supervisory Commission", Boris SCHNEIDER, General Manager of ASIROM has declared.
"For this year we aim for a 15 per cent growth of the automotive insurance segment", SCHNEIDER added.
by alex.rosca@mxp.ro, 18.04.2007

A new Life Insurance Manager for ASTRA-UNIQA
Considering the importance of life insurance in ASTRA-UNIQA development strategy, Diana MITROI joined the management team starting the 16th of April as Life Insurance Manager.
Diana MITROI has been working in the insurance field since 2001 as Life Insurance Consultant within ING Life.
Before she was Office Manager for INTERAMERICAN Romania, then Deputy Manager Pension Office within OMNIASIG Asigurari de Viata.
The new Life Insurance Manager brings also the reinsurance broker experience at ASTRA-UNIQA.
Diana MITROI graduated the 'International Relations and European Integration Faculty' and has two master degrees in Public Politics and Financial Management.
Last year, ASTRA-UNIQA posted gross written premiums of EUR 86.6 million, more 81.1 per cent than in 2005.
For 2007, the insurer aims gross written premiums earnings of EUR 140 million, rising 63% from the last years' figures, as well as growing the profitability and the portfolio and carrying on the territorial expansion.
by andreea.ionete@mxp.ro, 17.04.2007

ASITRANS is proposing a claims reduction solution
Insurer ASITRANS has recently proposed a solution for decreasing the claims rate by setting up a investigation company in which the companies in the market should be interested parts.
"We have advanced a business plan to the main insurance societies' General Managers in order to found an investigation company in which they could be interested parts. They embraced the idea and the effective implication in the project is now needed", Bogdan STAN, CEO of ASITRANS Group has stated exclusively for XPRIMM Insurance Newsletters.
"I would stress the fact that UNSICAR proved a remarkable professional attitude as for a intermediary company to be a member of this professional organization grants the insurers of its earnestness", the quoted official added.
Setting up a strong community through an active contribution to finalizing a common data base which could grow the efficiency of the risk assessment and also through introducing elements to rise the level of responsibility for clients, has been one of the claims rate reducing solutions proposed within The National Motor Insurance Conference, organized by Media XPRIMM in March.
by mihaela.circu@mxp.ro, 16.04.2007

PORSCHE Finance Group - No. 1 on the motor financing market
With a business figure of LEI 206.5 million, rising by 38% and a net profit of LEI 33.3 million, with 52% more than in 2005, the PORSCHE Finance Group has succeeded in the previous year to consolidate it's position on the motor financing market.
Based on the "one stop shop" concept, the PORSCHE Finance Group financed in 2006 almost 20.000 vehicles (19,759), which can be translated into a growth of 24% in comparison to 2005. At the same time, the number of the contracts under the groups management has risen to over 45,000.
"Our results for 2006 are excellent and actually exceed our expectations, due to the sustained retail activity in all of the group's components: PORSCHE Bank, PORSCHE Leasing, PORSCHE Broker de Asigurare and PORSCHE Mobility. This way we succeeded in financing about 1 of 2 cars imported by PORSCHE Romania and insuring about all of these cars thru our specialized company", Peter DEMMER, the CEO of PORSCHE Finance Group has declared.
"As far as 2007, we are intending to achieve a profitable growth on all the business fields and, at the same time, controll our expenses and invest in factors which lead to growth", Peter DEMMER has added.
The net profit registered by PORSCHE Broker de Asigurare in 2006 rose to LEI 5.9 million, while the turnover has reached LEI 18.3 million, with 37% more than in 2005. Also, in the previous year, PORSCHE Broker de Asigurare has registered over 20,000 motor hull policies and 18,000 MTPL policies.
by vlad.panciu@mxp.ro, 18.04. 2007

GENERALI underwrote RON 296 million in 2006
In 2006, GENERALI Asigurari underwrote an amount of RON 296 million gross premiums, the increase in national currency being 129% comparing to 2005.
The 2006's results highlight the upward trend of the insurance company, with a growth rhythm which position it in the Top 10 of the insurance companies in Romania, according to the Insurance Profile Review.
This growth was determined both by the activity on the general insurances segment, on which the gross premiums registered RON 255 million (135% more than in 2005) and by the activity on the life insurance segment on which gross premiums amounted RON 41 million, up with 97% than in 2005.
All the insurance classes increased, but especially the liability insurances, perils, motor hull and individual life insurances.
In order to obtain such results, the company used all the sale channels , Central Division, Bucharest Branch , the 76 units and the brokers. The number of insurance agents grew along the last year from 1,552 to approximate 3,000.
2006 brought a series of new products in the company's portfolio: GENERALI Investment Unit Solution - a life insurance with investment component, Green Card and Asist Plus Extra, road assistance service.
Also, in the previous year GENERALI concluded a partnership with ING BANK for the distribution of households insurances and motor hull and, not last, must be mentioned the increase of the social capital from RON 30 million to RON 50 million.
by mihaela.circu@mxp.ro, 11.04. 2007

USD 9 million profit for AIG Life
In the previous year, the company underwrote almost RON 140 million (almost USD 53 million), up with over 33% in RON and 40% in USD comparing to 2005.
In the same time the insurer's assets grew 45% to RON 310.7 million (USD 120 million)
The gross profit reached RON 24 million (USD 9 million), 68%more than in 2005.
These financial results are based on the increase number of new sales both as number of clients and as average premium per client , on the diversity of the distribution with accent on direct and alternative one and on the high retention degree of the existed portfolio.
"The active management of the investment portfolio and the rigorous control of expenses made AIG Life one of the most profitable life insurance companies on the Romanian insurance market", the representatives of the company declared.
AIG Life is an active participant at the pensions' reform supporting the development of the private pension scheme.
'We want to involve ourselves in founding the new market and we will create long-term investment products which to offer supplementary income at retirement and new insurance products which to offer a supplementary benefit in case of illness, completed with medical benefits and services", the officials of AIG added.
AIG Life Romania was established in 1998 and its majority shareholder is American life Insurance Company (ALICO). ALICO, one of the most important international life insurance companies in the world is owned by American International Group. Other 2 AIG companies operate in Romania: AIG Romania - general insurances company and an investment fond -AIG New Europe Fund.
by vlad.panciu@mxp.ro, 13.04. 2007

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International Conference "Insurance in Russia & CIS", at the 7th Edition

The 7th Edition of the Annual International Insurance Conference in Russia & CIS, organized by MARCUS Evans, will take place this year, traditionally, between the 29th and 30th of March 2007.
The Conference will offer an excellent opportunity for the assembled delegates from international and local insurance companies, brokerage, reinsurance firms, top investment banks and governmental institutions to review the key issues in the industry.
The main topics of the Conference are: legislation & regulation update throughout the region, integration of foreign companies into Russian & CIS markets as well as the expansion of Russian companies, needs and demands of a big corporate client and other vital interactive panel discussion with industry leaders.
The conference has been designed in a highly participative format, allowing the maximum amount of personal contact with the speakers and other participants during the many panel sessions, discussions and social events.
The PRIMM Insurance & Pensions Magazine is Media Partner of the Conference.
by oleg.doronceanu@mxp.ro, 16.04.2007

Market development in Ukraine, due to classical insurances
In 2006, Ukrainian insurance companies underwrote over USD 2. 65 billion in insurance premiums, up by 4.1% over the 2005's results and paid out USD 514.8 million in claims, a 37% increase against the previous year's figure, according to the Ministry of Finance. Also, gross written premiums on the life insurance segment scored USD 89.26 million.
"For the first time in the last period insurance market has grown due to classical insurances, instead of the optimization of insurance schemes, as it was in the previous years.
The increase from 5 up to 10 % for each insurance class goes basically due to attraction of new clients. For example, in 2006 insurance companies have accounted 515 thousand contracts (in 2005 - 344 thousand) on MTPL insurances and 540 thousand contracts (149 thousand in 2005) on medical insurances", Sergey KORENI, Director of Department for Insurance Supervision of the Ukrainian Ministry of Finance noted.
The market's annalists predict that the growth tendency of the market due to classical insurances will continue, as CASCO and MTPL insurances continue actively to develop.
In the current year, the supervising commission will pay a special attention to the consolidation of the insurance reserves of the IC. The insurance reserves totalized USD 1.2 billion in 2006, and not even half of them were covered by real actives, KORENIA added.
"In 2007 our problem is to verify and 'clean' actives of the IC. If some companies try to form their reserves on fake actives, we will apply necessary sanctions", KORENIA declared.
Other important task of the supervising authority in 2007 is to contribute to the increase of trust of consumers in IC. This will be possible by an active involvement of the insurers and settlement of all their obligations in due time. In the past year, the supervising authority received 541 complaints from clients, referring to motor insurances. In order to react operatively to similar complaints, special telephone line will be launched to cope with the clients' requests.
by oleg.doronceanu@mxp.ro, 13.04.2007

New perspectives for the Russian D&O Insurance Market
"In view of the IPOs planned by many Russian companies, the number of directors in need of Directors' and Officers' liability insurance (D&O) is growing", Christoph Leuzinger, senior underwriter of the Swiss-based financial group Zurich, pointed out at the conference "IPO: Directors' risks" on April 12th organized in Moscow.
Leuzinger discussed the major trends in the world's D&O insurance market, underlining that the regulatory and legal framework for settlement of claims against companies' managers is strengthening. The greatest experience in settling such legal actions belongs to USA, where group claims against top management of companies are filed quite often, pattern that is not typical to Europe, Leuzinger added.
Pasi Heikkenen, Director of HOWDEN INSURANCE BROKERS LIMITED, declared that the world's risk environment has undergone many changes in the last several years. Legislative demands on corporate financial performance have become stricter. That is why heads of companies especially need an insurance class protecting their personal finances in case of insured loss. D&O is especially valuable for directors of companies launching IPOs.
According to article 221 of the Federal law "On the stock market", one can demand settlement of potential IPO losses from the issuing companies and their managers, Vadim Rak, Financial Risks Director of the insurance brokerage company Malakut declared. According to Russian law, directors incur secondary liability. This means that the issuing company is held liable in the first place, but if the issuer is not able to pay out claims, its liability falls on the company's head. For this reason, D&O insurance has good growth prospects on the Russian market.
by RP Newsline, 17.04.2007

80% of agriculture insurance in Moldova, subsidized by the Government
According to the amendments to the law on the subsidized insurance of risks in agriculture, approved by the Government of Moldova, the state will pay 80% of expenses supported by the agriculture operators, legally registered, for the crop and animal insurance.
Anatoly Gorodenko, the Ministry of Agriculture, declared that at the conclusion of the contract with the insurance companies, agriculture operators should present a certificate issued by the local authorities, which confirms the existence of the insured property.
In that case, they will pay 20% of the size of the insurance payments stipulated by the contract, and other part will be covered from the state budget.
Until 11th of April, when the Government approved these amendments, the size of grants constituted 60% on insurance of long-term plantings and 50% for other cultures and animals.
The state budget for 2007 provides for subsidizing of risks in agriculture up to USD 1.2 million.
by irina.galasanu@mxp.ro, 16.04 2007

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XPRIMM Newsletters


General Director: Sergiu COSTACHE Executive Director: Adriana PANCIU
Coordinator: Alexandru CIUNCAN

Editor in Chief: Mihaela CIRCU

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Edition Responsible: Costi BORODA
e-mail: xprimm@primm.ro


Reproduction or use without permission of editorial or graphic content, in any manner, is prohibited. The Editorial Staff is not responsible for the truthfulness or the accuracy of the presented data. The Editorial Staff has the right to present the data in it's own manner. In what concerns the use, in any manner, of the information contained in this e-mail, Romanian laws apply.

Copyright©2007 MEDIA XPRIMM

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