Ten insurers sell mandatory car insurance in Romania: Allianz-Tiriac Asigurari, Asirom, Astra, Carpatica Asig, City Insurance, Euroins Romania, Generali Romania, Groupama, Omniasig și Uniqa, according to financial watchdog data.
The company said economic conditions, lower purchasing power, higher repair prices, lack of predictability of damage claims for injures and death and tougher conditions for reinsurance on the RCA segment show mandatory car insurance policies are not a desirable business line.
In January-September 2014, ABC Asigurari had understandings of RON5.5 million on the RCA segment, RON1.4 million lower than in the same period in 2013. The RCA segment made up nearly one third of the company’s portfolio.
RCA underwritings in Romania grew 11% in Romania in January-September 2014, to RON1.94 billion.
Founded in 1997, ABC Asigurari sells general insurance. The company had a loss of RON262,950 in 2013, from a net profit of RON48,879 in 2012. It is majority owned by Hidroconstructia, which owns 56.11% of its share capital.