The covering of losses in 2012 generated by error corrections and of losses in 2013, which amounted to RON15.4 million, will be achieved using dividends distributed for 2012, to be returned, and from profits to be made in the following years, the company said in its report.
In 2011, BCR Asigurari de Viata posted a net profit of RON19.62 million and RON24.99 million in 2012. The profit of 2011 was divided into RON1.3 million constituting legal reserves and RON15.57 million into dividends, scheduled to be paid by October 2012, and reserves of RON2.75 million.
In 2012, the insurer’s shareholders placed RON1.39 million into the legal reserve, RON16.26 million into the company’s own financing sources and RON7.43 million into covering the loss of 2011.
Early April 2014, Austria’s Vienna Insurance Group (VIG) announced it revised 2012 underwriting revenues down by EUR39.7 million, following an audit that led to the restructuring of BCR Asigurari de Viata and the replacement of the company’s management.
The insurer’s underwriting revenue increased 23.4% in 2012 compared to 2011, t RON425.2 million.
Before the announcement, BCR Asigurari de Viata shareholders had approved a capital raise by RON120.5 million, from RON32.97 million.
In 2013, BCR Asigurari de Viata underwritings declined 49.8%, to RON213.35 million and the company lost 10 points in market share, from 23.59% la 13.05%.
The insurer has a share capital of RON150.85 million, owned by Vienna Insurance Group (VIG) – 92.36%, Banca Comerciala Romana (BCR) – 5.41% and several individual shareholders – 2.23%.