“We are content with what we have achieved in the first half of the year, especially in terms of profitability,” company general manager Remi Vrignaud said in a press release Tuesday.
In the first half of the year, the Romanian insurer underwrote general insurance premiums of RON409.4 million, RON2.3 million more than in the first half of 2012.
Operating profit from general insurance activities increased more than 30%, to RON5.8 million, mainly due to the company maintaining the damage rate for its car insurance portfolio at 75-76%. Car insurance policy sales increased 2%, to RON290.6 million.
Revenues from property insurance stood at RON86.8 million, around RON4 million lower than in the first half of 2012.
“New regulations forcing all homeowners to get mandatory home insurance will lower the Allianz-Tiriac average premium by around 20%. We hope to make up for this by increasing the number of clients on the property insurance segment,” said Vrignaud.
Life insurance policy revenues rose to RON55.2 million in the first half of the year, from RON53.1 million in the same period last year. Traditional life insurance stood at RON27 million, while unit-linked policies stood at RON28.2 million.
Operating profit from life insurance activities increased nearly 10%, to RON3 million.
Vrignaud said the main challenges for the insurance industry on the medium and long term are mandatory home insurance, which will force insurers to seek solutions to sell more voluntary property insurance policies, and the auto market, which shows no sign of recover.
Allianz-Tiriac is the third largest local insurer by underwritten premiums in 2012, after Astra and Omniasig.
With a share capital of RON99.4 million, the Romanian insurance company is woned by German group Allianz with 52.16% and Cyprus-registered Vesanio Trading Limited, owned by Romanian businessman Ion Tiriac, with 44.48%.