To be compulsory or to be nothing at all?

If not even the floods that ravaged Moldova or Dobrogea, nor the landslides due to exaggerate clearance and the earthquake warning talked on by specialists won't bring Romanians to insure their goods and properties, then there is definitely nothing left to move them. Only when it will be much too late...

In this context, the one and the only resolution regarding the population's protection seems to be the mandatory households insurance. Although in principle few agree to the "compulsory" concept, it is worth mentioning that many democracies are using systems based on coercive practices, exactly in order to forewarn the situation when the peoples' free will or their lack of education in the matter (insurance, in our case) would lead to large scale disasters. Even if controversial, the mandatory households insurance remains a real solution after all, maybe a defective one as some people might say, but definitely perfectible.

In this spirit, The Romanian Ministry of Interior and Administrative Reform and The World Bank, alongside with Media XPRIMM are organizing the 4th Edition of ICAR - The International CAtastrophic Risks Forum. This event aims to decisively contribute at informing all parties involved in the Romanian Catastrophe Insurance Program with regard to the content of the accessory legislation - application norms for the Law regarding the mandatory households insurance, and therewith show how similar problems in other countries have been solved.

Thus ICAR will also be a know-how transfer framework between experts in this area from France, India, Mexico, Austria, Great Britain, Bulgaria and from Romania.
At the same time, the Forum will debate upon some major issues that both insurance market and civilians concern about such as weather related catastrophes, global warming, flood risk reduction, catastrophic risks management for the agricultural sector and also reinsurance for these risks.
It is hence our exquisite pleasure to welcome you, between 1st and 2nd of October at the House of Parliament in Bucharest for the 4th Edition of ICAR!

All details regarding the events are available at www.icarforum.ro.

by alexandru.ciuncan@mxp.ro

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Interview with Mrs. Maria BOGHIAN,
President,
ANSDAR - National Association of Automotive Dismantling and Recycling Societies

XPRIMM: What do you think about the partnership between the dismantlers and the insurance companies?
Maria BOGHIAN: Without any doubt, at the present time, there is a good collaboration between the insurance companies and the dismantlers. This partnership has to be regarded from a professional perspective, meaning that the spare parts have to comply with ISO 9001-14001 with the TUV registry. At this moment ANSDAR can recommend several specialized companies which have not registered reclamations and are on the way of certificating their dismantling activity. Therefore, we can guarantee the fact that these economic agents have another vision over the activity and respond for the quality of the parts which are delivered.

XPRIMM: How can the insurance companies benefit from this collaboration?
M.B.: We have created AUTOSEL, a transparent system of transaction of the damaged vehicles, which eliminated the intervention of the human factor, a winner in this case being the buyer that gives the best price for these cars. It's true that until this moment the majority of the vehicles published thru this system have been total economic losses that can be repaired and reintroduced into circulation, but which register prices over the European average. Nevertheless, though the vehicles have been categorized as total economic losses, over 25% of them have been taken out of circulation and have been dismantled because of the rising demand for second-hand part for new cars.
At this moment, the insurance companies with an important market share on the motor insurance segment are in the possession of the AUTOSEL. With this occasion we would like to thank ALLIANZ-TIRIAC which has been the promoter of the apparition and the system development but also ASITRANS and ASIROM which, also, look only at performance and transparency in this process.
From the solicitations we have received we can estimate that until 2007, the system will be adopted by over 80% of the important companies on the market.

XPRIMM: Now regarding the site www.autosel.ro, how many damaged cars that came from the insurance companies have been sold on the AUTOSEL site in the last month?
M.B.: As you probably know, for the safety of the transactions, the access to this site was restricted not long ago... Nevertheless, in the last period, Romanian companies as well as foreign companies have asked to be registered in the system.
Not a long time ago, we have launched an auction system called BLITZ, through which the time of transaction of the damaged vehicle lasted no more than 12 hours. Through this, over 300 vehicles have been sold, the value of the transactions being more than 800.000 EUR (from the start in the spring of 2007 untill the present time).
The development strategy on a medium and long term of the portal has the purpose of completely satisfying the needs of our clients, for the owner - gaining real prices on the market but with the adequate security conditions and transparency of the transaction and for the insurance companies - the solving of the problem regarding the damaged cars, the reduction and elimination of the losses incurred in this sector. To summarize, we are looking to have an activity at European standards.

XPRIMM: What is the state and which are the perspectives of the Romanian dismantling market?
M.B.: Many people passing on the highways of EU or on the roads of Romania can see the so-called "car graveyards".
Between a car graveyard and a dismantling company there is a major difference. The dismantling company is only that entity that respects the provisions of the 53/2000 Directive and whose activity is in agreement with the protection of the environment policies which impose several working procedures.
If you have the curiosity to check the lists published of the RAR web-site, you will discover many authorized economic agents, but whose main activity is the recycling of materials and not reintroducing the spare-parts into use.

From the information that ANSDAR has about Romania, at this moment there are over 1,200 economic agents that have declared they do this specific activity but there are at least 30% that do it without declaring this thing. Nevertheless, from the 1,200 economic agent, there are, at national level, only 20 whose activity is indeed in according with the European demands. The Romanian dismantling market can have an excellent development if Romania will adopt the European Directive related to the Design of vehicles (the proposal of the European Commission to modify the Directive 98/71/EC., which imposes the use of original parts).
In the conditions that we will not take into consideration the impact of this Directive we can predict in the following 5 years the development of several modern centers situated close to big cities and also the extinction of the semi-dismantlers because the use of the spare parts obtained from the dismantling activity is gaining more and more ground every day.

XPRIMM: Thank you!

by vlad.panciu@mxp.ro

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Mrs. Maria BOGHIAN,
President,
ANSDAR - National Association of Automotive Dismantling and Recycling Societies

Romanian insurance, RON 3.63 billion in the first half of 2007
In the first half of 2007, the insurance companies in Romania underwrote a volume of RON 3.63 billion, according to the preliminary data communicated by the Insurance Supervisory Commission.
General insurances contributed to this result with RON 2.96 billion, up 30.68% comparing to the similar period of last year.
In the same time, life insurance segment registered RON 673 million, meaning a nominal increase of gross premiums with 24.15%.
The claims paid by the insurance companies from our country in the first six months of 2007 rises to over RON 1.56 billion, while RON 1.48 billion for general insurances.
"The 30% growth of general insurance and 20% growth of life insurance, according to the reports remitted to the Insurance Supervisory Commission by the companies, shows that the market continues to consolidate and enhance until the end of 2007, of course under the carefully supervision of the Insurance Supervisory Commission", Angela TONCESCU, President of Insurance Supervisory Commission, has declared.
by mihaela.circu@mxp.ro, 14.08.2007

RON 357 thousands assets for Pillar III
The value of assets administrated by the companies operating on Pillar III (facultative private pensions) rose, on 3rd of August 2007, to RON 357,064, according to data published by the Supervisory Commission of the Private Pension System.
The number of participants to the five facultative pension funds is 4,239. Most of them (2,850) have opted for AZT Moderato, administrated by ALLIANZ-TIRIAC Pensii. A number of 823 participants has chosen ING Clasic, while Pensia Mea, administrated by AVIVA was preferred by 390 persons.
BCR Prudent, administrated by BCR Asigurari de Viata, has 169 participants, while AZT Vivace, 7.
The Private Pension System Supervisory Commission will weekly publish the centralized situation of the facultative private pension funds' assets.
by mihaela.circu@mxp.ro, 14.08.2007

EUR 189 million premiums for ALLIANZ -TIRIAC
ALLIANZ - TIRIAC registered, in the first half of 2007, a volume of gross premiums of EUR 189 million, increasing 23.5% in comparison to the first half of 2006.
On life insurance segment, the premiums underwritten by the company grew 6.6%, totalizing EUR 16 million, comparing to EUR 15 million in the analogical period of last year. In the first six months of 2006, the operational profit was EUR 1 million, while during the same period of 2007 the company registered a operational loss of EUR 1 million.
In the same time, general insurances registered EUR 173 million gross premiums, with EUR 35 million more than the similar interval of last year. As for the operational profit on this segment, it was kept at the same value as last year, EUR 4 million in six months. The profits' comedown reflects the last years' results when the company had a net income below EUR 9 million as compared to EUR 10 million profit in 2004 and 2005.
The financial information presented by the German group shows that ALLIANZ-TIRIAC had an almost 13% contribution to the gross premiums underwritten on general insurance segment in Central and Eastern Europe. As concern the operational profit, the division from Romania brought 35 of the income in this sector.
The gross written premiums in Romania represent 2.65 of the German groups' business on life insurance segment in Central and East of Europe.
by irina.galasanu@mxp.ro, 6.08.2007

A bigger slice for BCR Asigurari
BCR Asigurari underwrote in the first semester of 2007, gross premiums of RON 345 million, rising 85% comparing to the similar period of 2006, according to a press release of the company.
The insurance classes with significant growths in the portfolio of BCR Asigurari were the damages to property insurances, motor insurances, electronically equipment insurances, engine, installation and installation for accidental wound insurances and montage-building work insurances - all risks and the constructor's liability.
BCR Asigurari aims a 14% market share on medium term. "The last year's results demonstrated that BCR Asigurari is an important company and we intend to remain like this", Mihai TECAU, President and General Director of BCR Asigurari declared for XPRIMM Newsletter.
"However, the real challenge will be next year when we will have passed the first year on unique market and we will know clearly our competitors. This year new players have appeared", the quoted official added.
by vlad.panciu@mxp.ro, 7.08.2007

BT AEGON authorized on Pillar II
BT AEGON Fond de Pensii, the newest company of the Financial Group Banca TRANSILVANIA (BT), was authorized by The Private Pensions System Supervisory Commission as administrator of a privately administrated pension fund, according to a BT press release.
At the same time, The Private Pensions System Supervisory Commission authorized the scheme prospect of the VITAL pension fund, administrated by BT AEGON.
VITAL is a pension fund privately administrated, with moderate risk profile, the strategic allocation of invested assets being 70% in placement with low risk, as state bonds and bonds issued by foreign nongovernmental organism ( World Bank, BERD and BEI) and 30% in mobile values transacted on regulated and supervised markets from Romania, European Union's member states or from the Economic European Space, but also in instruments of monetary market.
"Now BT AEGON Fond de Pensii is preparing for the final phase of the authorization process the authorization of VITAL fund, established as compulsory private pension fund (Pillar II). We are waiting for 17th of September, the official date according to law, for the start of the campaign of collecting the adhesion documents from population. In order to facilitate the clients' access to the fund, among the classical sell channels, constituted in marketing agents natural persons and brokers, all persons under 45 years, who work, will be able to subscribe to VITAL fund in the units of BANCA TRANSILVANIA and BT Asigurari from the country", Silvia SARB, General Director of BT AEGON, has declared.
The BANCA TRANSILVANIA - AEGON partnership was made public in January 2007, being the first joint-venture officially announced on the private pension market this year. This has materialized in the establishment of BT AEGON Company, which expand the range of financial products offered by the Financial Group BANCA TRANSILVANIA.
by oleg.doronceanu@mxp.ro, 27.07.2007

AIG concentrates on rural zones
AIG Life intends to launch a distribution system of life insurance in rural zones, through a network of small brokers by the end of 2008 and by the beginning of 2009.
"The market of life insurances hasn't yet reached its real potential. We believe that the next development phase consist in rural zones", Theodor ALEXANDRESCU, General Manager of AIG Life, declared for the XPRIMM Newsletters.
According to the official of AIG Life, the company's assault in territory will have as model France, where over 4,000 of small brokers have as activity to promote life insurances in rural zones.
Also, AIG Life aims on short time to develop the territorial network through a franchise system. At present, Bucuresti accounts for 35% of the total volume of company's premiums.
by vlad.panciu@mxp.ro, 13.08.2007

BCR Asigurari inaugurates the first claim centre
BCR Asigurari, in collaboration Romanian Police, has inaugurated a claim centre in Bucharest. This action was determined by the desire of simplify the claims procedure in case of auto accidents of BCR Asigurari's clients, but also to ease the purchase of motor third party liability insurances and motor hull insurances. The investment in this centre exceeds EUR 100,000.
"The centre will have late opening hours and within it a specialized police unit will operate to ascertain road accidents. The mission of this centre is to maximize the efficiency of motor damage' solving, respectively appraisal and payment and to accelerate the ascertain process. The coverage area as concern the accidents' ascertain won't be conditioned by the sector where the accident happened", Mihai TECAU, President - General Manager of BCR Asigurari stated.
Thus, all drivers who had a car accident in Bucuresti will be able to address to this centre.
BCR Asigurari underwrote, in the first half of 2007, an amount of RON 345 million, equivalent of EUR 109 million, up with 85% in comparison to the analogical period of 2006.
BCR Asigurari, with RON 30 million social capital operates exclusively on general insurances' market, through a 148 territorial units network, offering to its clients, juridical and natural persons, a completed range of products and having as main objective for this year to gain a 14% market share.
by irina.galasanu@mxp.ro, 8.08.2007

RON 189.84 million premiums for ASTRA-UNIQA in first semester
The amount of gross premiums underwrote by the company in the first six months of 2007 was RON 189.84 million, the premiums on general insurances segment representing RON 187.81 million.
Life insurance registered a growth of 128% comparing to the first semester of 2006, gross written premiums totalizing RON 2.02 million. The enhancement is due to the implementation of internal measures for sustaining this activity, materialized in the establishment of a new life insurance department, to the strengthen of the managerial structure and to the launch and promotion in the sell network of particular new insurance products.
In addition, in the first part of 2007, the company oriented its attention towards the promotion of facultative insurances, launching a new product for small and medium size entrepreneurs (PrIMMa Afacere&Protectie).
On insurance classes, ASTRA-UNIQA , in the first half of 2007, achieved great results on motor hull insurances (RON 56.2 million, up with 84.8%), aviation hull (RON 3.4 million, meaning 259% growth) and liabilities for ships (RON 5.6 million, comparing to RON 1.52 million in the first 6 months of 2006). On motor third party liability insurance segment the enhancement was 4%, totaling RON 92.9 million. The modest variation registered as compared to the first semester of 2006 is due to the change of strategy on MTPL sector made from the early 2006, when a new segmented tariffs system was implemented in order to equilibrate the portfolio and to improve the technical result.
The paid claims in the analyzed period registered an increase of 30.36% comparing to the similar period of last year, from RON 57.1 million in 2006 to RON 74.3 million.
Mostly, the growth was registered at paid claims on general insurance segment.
For 2007, the main objectives of the company are the portfolio's development, especially of life insurances, the development of the partnership with RAIFFEISEN Group and with other banks, the territorial expansion and the development of new sell channels and the implementation of a new underwriting politic oriented towards profitability which means a careful risks' selection, orientation of sells towards facultative insurances.
by costi.boroda@mxp.ro, 3.08.2007

GENERALI Asigurari, RON 189 million in the first semester
In the first half of the current year, GENERALI Asigurari underwrote an amount of RON 189 million gross premiums, with 41% more than the analogical period of 2006 (RON 133.6 million).
Thus, the value of gross premiums on life insurance segment was RON 27.7 million, rose with 54% comparing to January- June interval of 2006 (RON 18.1 million). Out of the total of gross premiums underwritten on this segment, RON 20.5 million come from individual contracts, while de rest of RON 7.2 million are afferent to the group insurances.
Also, the gross written premiums on general insurance segment reached RON 161.3 million, with approximate 40% more than the first six months of the last year.(RON 115.5 million). The most sold insurances from the company's portfolio were auto insurances, followed by the building and content insurances and by individual life insurances.
"The financial results are beyond our expectations, taking into account that in the first half of the year we achieved 66% of the objective set for the entire year 2007. Also, one must notice that during this period, the company had profit", Tudor MOLDOVAN, General Manager of GENERALI Asigurari has declared.
In addition, the authorization of GENERALI Fond de Pensii in July, which will administrate a compulsory pensions fund, is another strategic development phase, which demonstrates that in Romania there is a significant potential as concern financial services. So GENERALI Group has a strategy made for expansion and strengthen on this market", Tudor MOLDOVAN completed.
The core objective of company continue to include the launch of new insurance products, new partnerships with banks, maintenance of the market share and, not at last, improvement of profitability in accordance with the strategic development direction of the Group at regional and global level.
Also, during the analyzed period, The General Shareholders Board approved the social capitals' increase of the company, by cash contribution, from RON 50 million to RON 120 million, by issue of 700 million of nominative stocks with a nominal value of RON 0.1 each.
by irina.galasanu@mxp.ro, 7.08.2007

OMNIASIG, 66% more
In the first half of 2007, OMNIASIG underwrote RON 378 million gross premiums, with 66.22% more than the similar period of the previous year (RON 226.8%). By the end of the current year, the insurer's officials estimate RON 730 million premiums.
In the same time, the company succeeded in increasing its gross profit up to RON 19.6 million, with 240% more as compared to the first six months of 2006. According to the representatives of OMNIASIG, this evolution is due to the significant premiums' enhancement and higher prudence in the risks' evaluation.
The most important growths of the first half of 2007 were registered by the motor insurances, credits insurances, good insurances and accidents and disease insurances. As concern the paid claims, in the first half of the current year these totalized RON 100 million. However, they can notice an improvement of the damage raid on motor third party liability segment as a consequence of the restriction imposed by the new road cod.
In 2006, OMNIASIG, member of VIENNA Insurance Group, held the second position in the Romanian insurers' Top, regarding general insurances, with RON 536.08 million premiums, the equivalent of EUR 152.10 million and a 9.33% market share.
by vlad.panciu@mxp.ro, 15.08.2007

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Russian Insurance Industry: H1 2007 Results
In January-June 2007, Russian insurance companies generated EUR 10.5 billion in premiums, up 23.6% compared with the same period of the previous year, and paid out EUR 5.8 billion, a 31.2% increase on H1 2006, Yana MIROSHNICHENKO, Deputy Head of the accounting and economic analysis department of the Federal Service for Insurance Supervision (FSIS) reported on August 7.
As of July 1, 2007, there were 911 registered insurance companies in Russia. 171 insurers are licensed to write compulsory MTPL, 133 companies are licensed to offer CMEI, 30 companies focus exclusively on reinsurance business and 29 companies specialize in brokerage operations. 15 companies did not carry out insurance operations in the reporting period, one company violated fixed requirements on the reporting and 55 companies did not present the reporting form 1-C by e-mail to the FSIS.
According to the FSIS, 50 leading companies accounted for 51.5% of gross market premiums in H1 2007. Loss ratio came to 55.1%.
Property insurance posted the most rapid premium growth in the non-life segment - at 22.7%. Liability insurance, on the contrary, showed only a 7.2% increase in premiums. Compulsory MTPL premiums rose 17.6%. The FSIS expects that in the future the MTPL loss ratio for many companies will exceed the maximum limit, claims and loss ratio are forecasted to increase as well.
In January-June 2007, property insurance accounted for 35.0% of gross premiums written, CMEI - for 31.6%, A&H insurance - for 15.5%, compulsory MTPL business - for 9.5% of total premium income of Russian insurers.
Premiums written in the life insurance segment jumped to 50.9%. According to MIROSHNICHENKO, the rapid growth is connected with transfers of life insurance portfolios to specialized companies in accordance with the Law on Organization of Insurance Business in Russia.
by RP Newsline, 8.08.2007

Kazakh Pensions Market: H1 2007 Results
In H1 2007, pension funds operating in the Republic of Kazakhstan attracted USD 6.5 billion in contributions, 33.5% up against the same period of 2006. Pension payments to individuals and transfers to insurance companies came to USD 445.8 million, a 31.6% growth on January-June 2006, the Kazakhstan Agency for Regulation and Supervision of the Financial Market and Financial Organizations reported.
In H1 2007, there were 14 pension funds licences to operate in Kazakhstan. VALYUT-TRANZIT Fund is currently under liquidation. In January-June 2006, the market consisted of 14 funds as well. In the first half of the current year, three market leaders accounted for 65% of total contributions, or USD 4.2 billion, compared with 66% in the same period of 2006.
In H1 2007, the top 3 list of Kazakh pension funds didn't change compared with the first half of the previous year. Pension Fund of HALYK Bank of Kazakhstan ranked first, accounting for 25.2% of the market. In H1 2006, the fund was runner-up with the share of 24.7%. The STATE NATIONAL Pension Fund ranked second in H1 2007 with a share of 23.2%. In January-June 2006, the fund took the first place, accounting for 25.2% of total contributions. In May 2007, the European Bank for Reconstruction and Development (EBRD) acquired a 9.99% stake in the fund. Other shareholders of the STATE NATIONAL Pension Fund are the National Bank of the Republic of Kazakhstan with a 57.61% stake and the Government of Kazakhstan with a 32.4% interest.
Pension fund ULARUMIT increased its market share from 16.1% to 16.6% and kept the third position in the ranking. Kazakhstan-based KAZKOMMERZBANK is the fund's main shareholder, owning a 49.35% interest.
As of July 1, 2007, total pension savings of Kazakhstan pension funds came to USD 8.34 billion, growing by 35.3% compared with January-June 2006. Aggregate equity capital reached USD 199.2 million (a 22.4% increase), total assets amounted to USD 213.8 million (a 24.3% rise).
by RP Newsline, 6.08.2007

One month before the 7th International Yalta Forum
The 7th International Yalta forum of the insurance market participants will take place between September 17th-21st, 2007. It will be traditionally organized by the League of Insurance Organization of Ukraine.
The forum, which was founded in 2001, has reached the level of a significant international event in the insurance markets in the European and Asian countries. In 2006, about 680 participants from 26 countries were accredited there.
The development of the integration processes on the international insurance market, consolidation of the insurers activities, exchange of better experience, presentation of the innovations, and besides the business meetings of the insurers and the development of good partnership relations are the main goals of the forum.
The main topic of the forum is dedicated to the most important events and the latest changes in the insurance industry sphere. A special attention will be paid to the international aspects of collaboration, insurance management, motor insurance risks and assistance, the conceptual questions of the development of reinsurance and nuclear insurance, the tendencies of the life insurance.
PRIMM-Insurance&Pensions Magazine, Media Partner of the event, will be represented by Mr. Oleg DORONCEANU, Russia&CIS Markets Responsible, and Mr. Vlad PANCIU, International Markets Responsible.
by irina.galasanu@mxp.ro, 16.08.2007

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Analysts predict net profit for PETROM of EUR 218-303 million
Romania's oil giant, PETROM, is expected to post profits worth EUR 218.5-303.2 million later this week, up to 45 percent lower year-on-year, analysts told Business Standard. PETROM's profits in H1 2006 exceeded EUR 400 million.
The main reason for lower profits includes a drop in oil production and the appreciation of the national currency, which has led to a 14 percent decrease in the company's revenue. "In the first quarter, the appreciation of the RON lowered PETROM's earnings by RON 125 million (EUR 39.13 million)," according to WOOD&Co investment bank Analyst Bram BURING.
Contacted by Business Standard, PETROM officials declined to comment on the analyst's outlook, because the company is listed on the Bucharest Stock Exchange (BVB), and is to publish its financial results this Thursday. PETROM's net profits in Q1 amounted to EUR 112.7 million, with turnover of EUR 815 million.
by Business Standard, 15.08.2007

Foreign investments exceed EUR 1 billion in June
Foreign investors in the real estate and financial services sectors generated an increase of 85 percent in capital subscribed in June 2007, up to EUR 1.14 billion for the first half of 2007, according to The National Trade Register Office (ONRC).
Spanish Gran Via, player on the real estate market, ranks first among top foreign investors, through the Gran Via Ghencea companies, in which they have invested EUR45.7 million, and the Gran Via Lujerului Imobiliar company, with investments worth EUR 9 million.
The second-largest investor in June was the Greek ATE Bank, new owner of MIND Bank, where the value of subscribed capital amounts to EUR 23 million. The first companies to enter the private pension fund market, INTERAMERICAN, OMNIASIG, BRD, and PRIMA Pensie, have invested some EUR 3.2-6.2 million. Foreign investments between January-June 2006 amounted to EUR 613.1 million. In June, foreign investments in Romanian company capital reached EUR 250 million, up 28 percent from the June 2006 level of EUR195.2 million, according to ONRC. The number of new companies with foreign participation established in the first six months of this year totaled 7,989, compared to 6,092 in H1 2006, leading to a total of 139,932 companies with foreign participation.
by Business Standard, 10.08.2007

BRD-GSG, profit higher than BCR
BRD - Groupe Societe Generale, the second-largest player in the Romanian banking system, had a higher profit than market leader Banca Comerciala Romana (BCR) in the first half of 2007, due to an increase in retail loans.
The Romanian subsidiary of the French Societe Generale giant, whose market value exceeds EUR 6 billion, posted EUR 133 million worth of net income in H1 2007, up 32 percent year-on-year, almost equal to the profit of the entire BCR group (EUR 139.5 million).
According to the General Meeting of Shareholders, profit targeted in 2007 is RON 790 million (EUR 246 million) for the entire BRD - SocGen group. Company officials say that the profit target for this year has already been surpassed. The bank alone (without factoring, leasing and other divisions) made half of the profit budgeted for the whole year.
"It is an evolution that matches our expectations, generated by the expansion of the distribution network and the promotion of attractive offers, especially in the area of consumer loans and mortgages," Petre BUNESCU, Deputy General Manager of BRD - Groupe Societe Generale, told Business Standard exclusively. He added that the bank has developed its traditional relations with large corporations, including multinationals, offering them classic loans and modern banking services for fund management and transfer.
Loans granted by BRD SocGen in H1 exceeded EUR 6.5 billion, up 51 percent from the first six months in 2006.
by Business Standard, 10.08.2007

ALLIANZ Real Estate enters Romania
The real estate investment division of German group ALLIANZ, Deutsche Gesellschaft fur Immobilienfonds (DEGI), acquired 3 office buildings in Bucharest for some EUR 110.5 from British investment fund European Convergence Property Company (ECPC), owned by Charlemagne Capital.
The acquisition represents DEGI's entry onto the Romanian market. The Romanian consultancy company, EURISKO, assisted DEGI to finalize the transaction. ECPC bought the three buildings MILLENIUM Business Center, PGV Tower and CONSTRUDAVA last year for EUR 89.1 million, and decided to sell due to a drop in the Romanian real estate market's yield, reads a press release presented to the London Stock Exchange. The final price depends on an audit scheduled for November, after the close of the transaction. ECDC's income of approximately EUR 110.5 million does not include the EUR 5.5 million asset adjustments and transaction costs. The company net earnings will amount to some EUR 49.9 million, including a profit of EUR 15.9 million.
MILLENIUM Business Center, initially bought by ECPC from a group of companies owned by Greek investors, was sold for EUR 52.6 million. The PGV Tower, developed by Jaguar Development, and owned by Greek and Israeli investors, was sold to the German group for EUR 27.4 million. CONSTRUDAVA, built by Romanian developer Impact, was bought by DEGI for EUR 26.5 million. All office space in the three buildings has already been rented.
The yield of the three transactions - 6.4 percent, 6.5 percent and 7.2 percent, respectively, corroborates estimates by analysts that the Romanian real estate market is closing in on the regional average (Poland, Hungary and the Czech Republic).
ECPC representatives have confirmed that the group has no intention of reinvesting profits due to a drop in yields. Charlemagne Capital also owns the European Convergence Development Company that entered the Romanian market last year.
by andreea.ionete@mxp.ro, 3.08.2007

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THE EDITORIAL STAFF:

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

Editor in Chief: Mihaela CIRCU
Senior Editor: Costi BORODA
Editors: Vlad PANCIU, Oleg DORONCEANU, Mirabela POSTOLACHE, Andreea IONETE, Liviu HULUTA, Irina GALASANU, Alexandra SANDULESCU, Vlad BOLDIJAR

Account Manager: Georgiana OPREA
IT Department: Octavian GRIGOR, Dorin PALADE

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

PUBLISHED BY: Media XPRIMM

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