No. 98, December 6th, 2007

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Romanian Insurance Market Awards

A market with potential...

The Romanian insurance market has got potential... And these are not just simple words mean to promote the realities of an industry whose evolution is without any doubt.
We can speak about the double digit growth registered in the latest years, which actually was one of the highest of all the European countries.

We also must not neglect the official estimations, which predict underwritings of EUR 7.5 billion in 10 years time. This evolution is also based on a number of legislative projects meant to bring an impulse to the development of this field like the compulsory household insurance law.

In order to highlight the potential of the Romanian insurance market, it is necessary to underline the massive investments of this year. Therefore, GROUPAMA has bought, for an amount of 90 mil. EUR, one of the most dynamic Romanian insurers, BT Asigurari. Also, VIENNA Insurance Group intends to pay up to 150 mil. EUR to takeover ASIROM. At the same time, according to sources on the market, large financial European groups will fight for ASIBAN.

And another very important fact is, the high-interest taised by the presentations on the realities and perspectives of the Romanian insurance market, held by the XPRIMM Specialists at Prague and Saint Petersburg.

Without any intention of making a complete list of proofs, we consider that the lines above represent a couple of arguments in order to realize that the moment when Romania can proud itself with an insurance market similar to the European one is close.

P.S.: The realizations and the potential of this field in our country were highlighted with the occasion of the grandest event of the year: "Romanian Insurance Market Awards", granted by the PRIMM Magazine - Insurance & Pensions. The ceremony took place on Monday 3rd of December at The Throne Hall, Royal Palace.

by mihaela.circu@mxp.ro

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BCR Asigurari de Viata


OMNIASIG Asigurari de Viata


Interview with Mr. Cristian FUGACIU,
Country Manager,
MARSH Romania

XPRIMM: I suggest to start the discussion with the role the insurance brokerage and consultancy market has nowadays. How do you estimate this market will evolve next year and further on?
Cristian FUGACIU:
I see things in an optimistic way, as I did before, so I estimate a growth of the mediated premiums weight in total premiums, especially on the retail market. At the corporate level, most of the companies already have a culture, certain practices in the field and many of the multinational organizations are already working with an insurance broker, which means this market is better represented by the mediation companies.
From our own experience, many of the local companies that haven't worked with a broker yet are more and more opened towards the cooperation with an intermediary which will bring them added value.
They are interested in the consultancy services because they started feeling the need to have their risks identified by a specialist, who could also assess the impact of these risks on their business. After all these steps are made, the local companies wish to buy the necessary insurance with the best conditions they would get.

XPRIMM: At a corporate level, which line of business do you consider it will have a stronger evolution in 2008?
Regarding the weight in the total market, pensions will have the biggest development, especially the 3rd Pillar. In what concerns insurance, I estimate a growth of the specialty lines - producers' liability, pollution liabilities, Directors' and Officers' and professional liabilities.
Also, the positive dynamics for classes where a growth of the commercialized goods can be observed such motor insurance will continue in 2008.

XPRIMM: In 2007 D&O liability insurance became compulsory in Romania. Have you noticed any change in the weight this line has in MARSH portfolio?
We certainly felt much more interest raised by this line of business among companies, but from the weight and the volume of premiums point of view, I can not say that the legislation had too much influence, because, as it is known, the legal compulsoriness is not quite clear. There are companies that buy D&O insurance only for coming in line to the legal requirement as they are not convinced this insurance is useful in any way, so it is normal for these companies to try limiting the relevant costs not acknowledging its utility. Concluding, this year we mediated more D&O insurance than the years before but in what the value is concerned there hasn't been a spectacular, nor an impressive change. However, in my opinion the law provisions stimulated the market to provide the product, to reach the clients starting from the compulsoriness. And the target of both insurers and brokers is to promote the product on the market, to explain it. Probably, in the next years when the market will have a certain culture on this subject the clients will ask for D&O insurance.

XPRIMM: Do you think the same thing would happen for compulsory household insurance?
The difference between D&O and compulsory household insurance is the targeted market; the first is conceived for the corporate level, for companies and their managers while the second is addressed to the population. Consequently, reactions could be different because you depend on the financial matters, the peoples' financial resources and on the way they will perceive the compulsoriness, the real benefit coming from buying compulsory household insurance.

XPRIMM: What are the development options and scenarios for MARSH for the next years?
The future is standing on a consultative approach of the brokerage business so the brokerage must not equal to mediation but to financial consultancy provided to the client. A very important thing is that before we do brokerage business, we first offer our clients risk consultancy, because risks covered through insurance are just a small part of the global risks a company must face. Everything must be approached as a whole and centralized at the management level, there has to be a risk management politic to include insurance and implicitly the brokerage market. In the future we will focus more and more on this consultative approach. We are not the only company in this field to express this intention but I believe only a small number of brokers have the needed technical and professional capacity to provide the consultancy I am referring to.

XPRIMM: How do you think will evolve the insurance brokerage market, as presently 20% of the total premiums are mediated by brokers?
It is difficult to estimate but, as I was saying, probably the strongest growth will be posted in the retail segment. However, I estimate that the volume of mediated premiums will reach 25% of the total premiums in 2008, especially taking into consideration the wave of brokers interested in the Romanian market and the insurers coming in Romania which already have a culture regarding the cooperation with a brokerage company.

XPRIMM: Thank you!

by alexandru.ciuncan@mxp.ro

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Cristian FUGACIU
Mr. Cristian FUGACIU,
Country Manager,
MARSH Romania

Competitive Distribution Strategies For The Insurance Sector MEDICOVER

And the winner is...
On 3rd of December 2007, PRIMM Insurance&Pensions Magazine awarded the performances and value of the profile market and banking - financial sector during the Insurance Market's Awards.
Thus, ALLIANZ-TIRIAC Asigurari was awarded as the Insurance Company of the Year in the sumptuous and elegant atmosphere typical to Royal Palace from Bucharest.
As concern the insurance brokerage industry, the Insurance Broker of the Year was MARSH Romania.
On the occasion of this important event of the insurance market, MUNICH Re was nominated as Reinsurer of the Year.
Also, the most competitive insurers and brokers, products and insurance services were awarded on the occasion of Insurance Market's Award.
Click here for more details!
by mihaela.circu@mxp.ro, 4.12.2007

First 10 Romanian insurance companies underwrote over EUR 1.3 billion
In the first three quarters of 2007, the Romanian insurance market exceeded EUR 1.6 billion gross written premiums and registered a nominal growth in European currency of about 35% in comparison to the same indicator of the similar period of 2006.
The concentration degree of market is still high, the first 10 companies accounting for 82% of the market.
The leader of the market continues to be ALLIANZ-TIRIAC, with a volume of written premiums of EUR 228 million, representing over 17% market share. The company's nominal growth in EUR is over 17%.
OMNIASIG holds the second position, with the most significant increase, over 80% more than the similar interval of last year. In the analyzed period, it obtained EUR 187 million written premiums and holds 11.6% share market.
With EUR 144 million written premiums, up with 8%, ASIROM is on the third place. The company has a 9% market share.
BCR Asigurari, ASIBAN, ING Asigurari de Viata, UNITA, ASTRA- UNIQA, GENERALI and BT Asigurari complete in this order the Top 10.
The complete results of the insurance market for the first 9 months of 2007 one can read in Profile Insurance Review, no. 4/2007
by alex.rosca@mxp.ro, 27.11.2007

RON 1 billion for life insurance in Romania
In the first nine months of the year, the insurance market in Romania registered RON 1 billion, almost EUR 317 million representing 19.6% of the insurance market's gross written premiums. The first ten companies totalized premiums of around EUR 297 million, accounting for 80% of the market.
ING Life, AIG Life and ASIBAN are the first 3 companies on the Romanian life segment. They hold 35.53%, 14.72% and 7.91% market share.
During the analyzed period, ING Life, the market's leader, underwrote an amount of EUR 110 million, up with 23% than similar period of 2006. Thus the company added to its premiums underwritten in the first 3 quarters of 2006 about EUR 21 million.
AIG Life underwrote premiums of EUR 45 million and rose 70% compared to the similar period of last year. The company grew almost EUR 19 million and holds a 15% market share.
ASIBAN occupies the third position according to data issued according to Insurance PROFILE Review. The volume of premiums underwritten by ASIBAN exceeded EUR 25 million, increasing almost 110% in comparison to the analyzed period of the previous year. Thus, ASIBAN climbed 4 positions in TOP 10, adding EUR 13 million to the last year amount of premiums.
The complete results of the Romanian insurance market one can read in the 4th number of Profile Insurance Review.
by alex.rosca@mxp.ro, 5.12.2007

The insurance market will triple till 2017
The Insurance Supervisory Commission estimates that in 10 years the Romanian insurance market will reach EUR 7.5 billion written premiums.
"At the end of 2017, the volume of gross written premiums will reach almost EUR 7.5 million while the life insurance weight will grow to 45%", Angela TONCESCU, President of Insurance Supervisory Commission" stated during the EU - COFILE conference organized at Sinaia by BNR-The National Bank of Romania, ALPHA Bank and Romanian Association of Banks.
Though, at present, life insurances represent 18.5% of the volume of written premiums, the quoted official believes that in the next years the insurers' clients will consider the life segment as Romania entered the European Union, where the life insurances are very developed.
In addition, the Commission forecasts that during this period the Romanian insurance market will have a new solvency regime, a functional insurance education system, a flexible and professional structure of the insurance companies and a supervision authority compatible with the new attributions and European demands.
by andreea.ionete@mxp.ro, 27.11.2007

2 months, 2 millions
The recent estimations emphasize that the number of employees aged till 45 who haven't chosen a private pension fund is about 2 millions. One million represents the persons under age of 35, who are obliged to contribute to one of the 18 funds and the other half is represented by the people who can voluntary direct 2% of the gross income towards a private pension fund.
"At present, the adhesion process is on a downward trend, which will improve before Christmas and go downward during winter holidays", Besim JAWAD, CEO INTERAMERICAN Pensii, has declared. Moreover, the quoted official has stated that"in the last week, before the closing date of the adhesion process, the contributors' number to the private pension funds will reach high quotas as in the first week after 17th of September 2007.
Those who haven't chosen a private pension fund until the closing date of adhesion will be redistributed according to a lottery organized by the Supervisory Commission of Private Pension System.
"We would like that in Romania as in Poland the companies with a 10% less share market to be excluded from the redistribution process thus preventing the excessive concentration of the market", the representative of INTERAMERICAN has added.
The lottery's rules hasn't been established yet by the Supervisory Commission of Private Pension System and the discussions about the excessive concentration of the market has occurred since the first two operators account for over 50% of the market.
On the 21st of November 2007 the official site of Supervisory Commission of Private Pension System revealed that 137,631 persons have chosen INTERAMERICAN - Fond de Pensii Administrate Privat.
by liviu.huluta.@mxp.ro, 29.11.2007

Brokers' weight on market is growing
The premiums underwritten by insurers with the help of brokers will rise next year in a more accelerated rhythm than the whole insurance market.
"I estimate that premiums underwritten by insurers with the help of brokers will reach around 25% of the insurance market's premiums, taking into consideration the large number of brokers interested in Romania and the foreign insurers which are used to collaborate with brokers", Cristian FUGACIU, Country Manager, MARSH Romania, has stated.
Between January and September 2007, brokers underwrote premiums of EUR 310 million, increasing 42% comparing to the similar period of last year, according to the Profile Insurance Review. Thus, brokers account for 19.17% of insurance market.
by mihaela.circu@mxp.ro, 5.12.2007

East meets West under the EUREKO's umbrella
On 30th of November 2007, the financial group EUREKO organized the first international pension conference. The event's aim was to stimulate the parallel debate regarding what happens on the pension markets of European Union and the perspectives of the Pan - European pension system
The PRIMM Insurance&Pension Magazine was represented at this event by Sergiu COSTACHE, General Director.
"The EUREKO's idea of gathering the markets of new Europe, the emerged markets in Central and East of continent , is welcomed by the operators on private pension market", Romeo JANTEA, President of FINCOP Broker de Pensii Private, declared.
"The conference's structure allowed both operators from West Europe and East to share their experience contributing to the development of European private pension markets", Mihai SEITAN, General Director of FINCOP Broker de Pensii Private, highlighted.
The event organized by the group of whose member is also INTERAMERICAN was unique because it brought together EUREKO's top managers and opinion leaders of mature and emerged markets where the Netherlands group operates.
by liviu.huluta@mxp.ro, 30.11.2007

EUR 3 billion written premiums for ALLIANZ in Central and East of Europe
The accelerated development rhythm of the member companies of ALLIANZ Group from Central and Eastern Europe and in Poland, Romania and Russia especially had a significant contribution to the German groups' business in the first nine months of 2007. Thus, the total revenues of ALLIANZ in the above mentioned region grew 38.5%, from EUR 2.07 billion to EUR 2.87 billion.
"These results highlight our power on each of these markets and show that we are on the right way in Central and Eastern Europe. During January - September 2007, the revenues from gross written premiums are equivalent to EUR 293.4 million, with 24% more than the similar period of last year. The registered increase is due to positive evolution of the revenues from the sale of goods and properties insurances, respectively motor hull and motor third party liability insurances. On life segment, the sale of unit-linked insurances had a remarkable evolution resulting in a revenues' growth of over 44% comparing to the analyzed interval of 2006. The general insurances operations kept their high level of profitability and registered a 55% increase as concern the volume of written premiums. Regarding the life business, we're content by the subsidiaries' evolution from Hungary and Slovakia. Moreover, we want to be the first clients' choice in the context of a bigger demand for planning products of resources for people of third age in Central and East of Europe", Werner ZEDELIUS, member of the ALLIANZ's Board of Directors, responsible for markets' development has stated.
"The growth to EUR 707 million of written premiums on general insurances' segment after the first 3 quarters of the current year represents both the motor insurances' contribution in Poland and Romania and the operations' consolidation in Russia after the acquisition of majority share of ROSNO and taking over of PROGRESS Garant in June 2007. Once again, the results reflect the company's capacity in valuing the opportunities and increase potential of this region. For 20 years from our activity's start in this region, the business of ALLIANZ has developed. That's why, we'll continue to invest in this important part of Europe, reiterating our declared goal: becoming the most reliable financial services provider", Werner ZEDELIUS has added.
In the first nine months of 2007, in Romania, ALLIANZ-TIRIAC has posted written premiums of EUR 257 million, up with 19.53% compared to the similar period of 2006.
by andreea.ionete@mxp.ro, 27.11.2007

Towards a EUR 2 billion market
At the end of 2007, the Romanian insurance market will exceed EUR 2 billion.
"The Insurance Supervisory Commission estimates that at the end of this year the gross written premiums will surpass EUR 2 billion, among which EUR 1.63 billion represent premiums underwritten on general insurances' segment, meaning 81.5% of the insurance market", Angela TONCESCU, President of Insurance Supervisory Commission" stated during the EU - COFILE conference organized at Sinaia by BNR, ALPHA Bank and Romanian Association of Banks.
"At present, the first 3 Romanian insurance companies are: ALLIANZ-TIRIAC, OMNIASIG and ASIROM", Angela TONCESCU declared.
As concern the general insurances, the gross written premiums registered a 24.22% increase during January - September 2007. Among general insurances, the most important weight holds the insurances for terrestrial means of transport other than rail, with 44.5%. In exchange, the most important dynamics registered the credits and warranties insurances, with 94.5% more than the similar period of last year.
On life insurances' segment the growth rhythm was 26.39%.
On the Romanian insurance market, gross paid indemnities had a positive trend and the modification rhythm at the end of September 2007 was 31.35%.
by mihaela.circu@mxp.ro, 26.11.2007

18 new members for UNSICAR
Starting with 21st of November 2007, the National Union of Insurance Brokerage and Consultancy Societies from Romania has 18 new members, announced during its Awards Gala.
The new members come from seven counties of Romania: AL Broker Invest, Crown Partners, G&P Asiguranta ,OMNICONS 2000 and QUALITY Asig - Arad, ROCREDIT Broker - Baia Mare, STAR Insurance Broker - Botosani, ASSES Broker, CREDO Insurance Broker, E-CLAIMS Management, IRIB (Insurance - Reinsurance International Broker), MILLENIUM Insurance Broker, ONE Broker si PROTRUCK Asigurari - Bucharest, ROGRUP Broker - Cluj-Napoca, EXA broker and ROMAGENT Consulting - Oradea, and HERMANNSTADT Broker - Sibiu.
Thus the members' number reached 69.
by andreea.ionete@mxp.ro, 26.11.2007

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Jacob Fleming

"Bancassurance in Emerging Markets" - 15th & 16th January 2008, Budapest
The next year's beginning will bring along the first steps needed to be done for building the future success of a business just as for learning the best practices to improve your performance in bancassurance, with the occasion of "Bancassurance in Emerging Markets" Conference, organized by Jacob Fleming on 15th-16th of January 2008 in Budapest, Hungary.
Developing bancassurance in retail markets with lower insurance penetration is a very promising business opportunity both for banks and insurance companies. However, the experience from the emerging markets where some successful market penetrations have been observed - such as Russia, Turkey, CEE & CIS region - proved that simply bundling and cross selling of various banking and insurance products does not always bring expected results.
This exclusive event, "Bancassurance in Emerging Markets", supported by PRIMM-Insurance&Pensions Magazine as Media Partner will gather executives and industry experts from banking and insurance business environment who will be presenting and discussing failures and successes faced along the difficult way to follow for delivering bancassurance.
For more information, click here!
by andreea.ionete@mxp.ro, 6.12.2007

FONDIARIA Sai expanding in Serbia
Italian Group FONDIARIA-SAI SpA has won an auction to buy a 83.32% stake in Serbia's second largest insurance group DDOR at a price of EUR 220 million.
The stake was sold by the Deposit Insurance Agency of Serbia and the transaction is expected to be completed by the end of the first quarter of 2008, according to Serbia & Montenegro Today Agency.
Among the bidders for the Slovenian insurer were also important international groups as ALLIANZ, AXA, GROUPAMA, BALOISE, CESKA Pojistovna, EUREKO, FONDIARIA, GENERALI, KBC Group and Zavarovalnica TRIGLAV.
By November 19, FONDIARIA Sai was the only bidder, and sources familiar with the talks said it had previously offered EUR 184 million for an 83.3% percent stake in the insurer.
A further 10% stake will be acquired through a public offer to be launched 120 days after the deal is closed.
The company said the move is a first step in its strategy of expanding into foreign markets with a significant growth potential.
DDOR has a 30% market share in the Serbian insurance market and this year its premium income is seen rising 20% to EUR 180 million compared to 2006.
FONDIARIA-SAI specializes in insurance, banking and other financial services. In 2006, the group wrote EUR 9.9 billion in insurance premiums that assure company the third position among the largest Italian insurers.
by oleg.doronceanu@mxp.ro, 30.11.2007

EUR 516 million for the Bulgarian insurance market
For the first 9 months of 2007 gross written premiums of Bulgarian insurance companies came to EUR 516,4 million, an increase by 21.1% compared to similar period of 2006, according to Bulgarian Financial Supervision Commission. Insurance claims totalized EUR 181, 4 million.
The gross premiums in the field of non-life insurance amounted EUR 435.7 million, up by 18.84% on an annual basis.
The compensation payments made in the field came to EUR 161,9 million, i.e. 21.83% more in comparison with the results for the same period of last year. The technical reserves augmented by 27.86% on an annual basis and amounted to EUR 409,4 million.
In the reporting period, the assets of the insurers came to EUR 615,8 million, a 25.59% increase compared to January-September 2006.
Motor insurance is still dominating the non-life insurance market with a total percentage of 65.97% of premiums and 86,2% of the compensation payments.
The gross premiums amount in the field of life insurance for the first 9 months of 2007 came to EUR 76,8 million, a 27.43% increase compared to similar period of 2006.
The compensation payments made in the field amounted to EUR 19.3 million, i.e. 14.18% more in comparison with the same period of last year. Gross technical increased by 37.08% to the amount of EUR 168,9 million.
In the end of the 9-month period of 2007 the assets of the life insurance companies totalized EUR 367,3 million, up by 80.79% increase.
The premiums that have increased the most are from sales of life insurance (51.87%), accident insurance (48.85%) and unit-linked life insurance (24.92%).
by andreea.ionete@mxp.ro, 29.11.2007

Limit on Foreign Investments in Russian Insurers will be increased after WTO entry
After the WTO entry, Russia is planning to increase the limit on foreign participation in authorized capitals of Russian insurance companies to 50% but strengthen requirements on subsidiaries of foreign insurance companies, which will be obliged to meet the same requirements as local companies, Yekaterina MAYOROVA, Head of the Trade Negotiations Department of the Ministry of the Economic Development and Trade, said on November 28.
Foreign companies presently account for 4-5% of the Russian insurance market, whereas the foreign participation quote in the Russian insurance segment is 25%, noted MAYOROVA.
Russia would lift the restriction on foreign investments in Russian companies writing life and compulsory insurance classes within five years after the country's entry into the World Trade Organization. Within nine years after the entry, subsidiaries of non-resident insurers will get full access to the Russian insurance market, Mayorova added.
by RP Newsline, 2.12.2007

Ukrainian insurance market to reach EUR 2.3 billion in 2007
Ukrainian insurance companies will collect EUR 2.3 billion in premiums in 2007, according to the forecast of the League of Insurance Organizations of Ukraine. The compensation payments will reach EUR 652,1 million, the loss ratio - 26-27%, Alexander FILONYUK, President of the League has noted.
He mentioned that the annual growth of the Ukrainian insurance market will make about 30 % while life insurance is likely to keep a 60-70% increase in the long term, considering the estimated development of unit-linked insurance classes.
The volume of the generated insurance reserves will make more than EUR 1,1 billion, assets - EUR 4.3 billion and the aggregate authorized capital of the insurance companies - up to EUR 1.3 billion.
In opinion of LIOU analysts the basic engine of growth in 2007-2008 will become motor, agricultural and life insurance classes.
"Ukraine faces a rapid growth of construction sector, so we expect the building and assembly insurance market to grow. Also, the Ukrainian government will support it" Alexander FILONYUK has declared. He added that the Ukrainian Cabinet of Ministers has already put forward an initiative to introduce compulsory builders' risks lines, including financial risks (commissioning of a facility in time), accident insurance and builders' liability.
LIOU also predicts that insurance industry's penetration level will grow to 2,5 % of GDP while the and premiums per capital will reach UAH380 (about US$76).
by irina.galasanu@mxp.ro, 1.12.2007

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Club ARO

GDP increases with 5.7% in 2007
The 5.7 percent advance of gross domestic product (GDP) in the third quarter, higher than predicted by analysts, is likely to lead to an appreciation of the national currency. The previous forecast for economic growth in Q3 was 5.5 percent.
GDP rose to RON 266.59 billion (EUR 75.46 billion) in the first nine months of 2007, according to data from the National Institute of Statistics (INS). Although the institute did not provide details on GDP growth, analysts say the rise is due to the advance of the construction segment, which partly compensated the negative impact of the effects on agriculture of the severe drought.
Construction is the Romanian economy's most dynamic segment, with 37 percent growth in the third quarter. Retail sales and services also performed well.
As for the whole of 2007, economic growth is likely to amount to 5-5.8 percent. In their Economic Overview Romania study, RAIFFEISEN specialists foresee a 5 percent advance of GDP, while UNICREDIT analysts estimate growth of 5.8 percent by the end of the year.
by standard.ro, 4.12.2007

Romania, among the first growth rates
Romania will register the third-highest financial wealth growth rate in Central and Eastern Europe (CEE), of 19 percent in 2008-2009, following Russia, with 31 percent, and Bulgaria, with 21 percent, according to a study by UNICREDIT Group, one of Europe's largest banking and financial service organizations. UNICREDIT forecasts average annual Romanian inflation at 4.7 percent by the end of 2007, an increase of up to 5.7 percent by the end of 2008, followed by a drop at the end of 2009 to 4.4 percent.
The bank further expects the RON to strengthen in the coming two years, to reach an average exchange rate of RON 3.34/EUR by the end of this year, RON 3.33/EUR by the end of 2008, and RON 3.35/EUR by the end of 2009.
The group is also considering a current account deficit of 13.5 percent of GDP by the end of 2007, 14.1 percent by the end of 2008, and 13.8 percent by the end of 2009.
by standard.ro, 5.12.2007

Investments in Romania economy up 29.1% to 39.36 billion RON
Investments in the Romanian economy in the first nine months of 2007 amounted to 39.36 billion RON, a 29.1% increase from the similar period last year, the National Statistics Institute informs. In the third quarter of the year, the total value of the investments stood at 17.44 billion RON, which is 5.29 billion RON above the value of the previous year.
Works at new construction sites attracted investments of 19.25 billion RON in the mentioned period, representing 48.9% of the total value in the sector.
The industry sector attracted 38.7% of investments, while constructions 28.3% and trade and services - 21.9%. At the other end of the spectrum, the agriculture field benefited of only 0.7% of investments.
by hotnews.ro, 30.11.2007

The state will issue bonds
The Economy and Finance Ministry (MEF) plans to issue state bonds worth RON 1.5 billion (EUR 342 million), of which RON 0.3 billion (EUR 86 million) will be issued as treasury certificates.
Two bids for bonds were scheduled on December 6 and 20. The first issue bonds will have a three-year maturity and a 6 percent yield, while the second issue will have a ten-year maturity and a 6.75 percent yield. The treasury certificate will be issued on December 12. They will have a 364-day maturity, according to the ministry.
To date, the ministry has issued bonds and treasury certificates worth a total RON 9 billion (EUR 2.57 billion), of a total of RON 12 billion (EUR3.43 billion) scheduled for 2007.
by standard.ro, 3.12.2007

125 years of Stock Exchange in Bucharest
The Bucharest Stock Exchange (BVB) celebrated yesterday 125 years of stock market in Romania. The event was hosted by the National Library, the Bourse's former quarters. The Bucharest Bourse was founded on December 1, 1882 by a royal decree issued by King Carol I at a proposal by bankers and merchants. In 1914, no fewer than 63 series of stock and 58 series of fixed-interest bonds were being floated on the stock exchange.
The peak inter-war trading volume was reached in 1939. Year 1945 set a new record-high trading amid high inflation. The Bourse was closed in 1948, following the nationalization of the means of production.
A number of 24 real estate firms decided on April 27, 1994 to establish the Bucharest Stock Exchange. In September 1997, the BET - the first stock exchange index calculated by the BVB - was launched. Year 2001 saw the listing of the stock of two large companies: BRD and the National Oil Company PETROM (SNP). The BVB and RASDAQ shareholders decided in November 2005 that the two institutions should merge, and August 2006 saw the listing of the first instruments issued by a foreign issuer - World Bank bonds. In January 2007, the BVB became a full member of the European Federation of Stock Exchanges. The BVB market capitalization comes to EUR 24.53 billion, and the value of transactions in 2007 reached EUR 15.95 billion.
The BVB trading was on the rise yesterday, for the fifth consecutive day, up 4.52% on the back of SIF Muntenia stock going up.
by costi.boroda@mxp.ro, 5.12.2007

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XPRIMM Newsletters


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

Editor in Chief: Mihaela CIRCU
Scientific Advisor: Daniela GHETU

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

Edition Responsible: Mihaela CIRCU
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.

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