Only three Romanian companies – Astra, Allianz-Tiriac and Omniasig – featured in last year’s ranking; two other insurers, Groupama and ING Asigurari, are newcomers. Unlike Romania, countries like Poland and the Czech Republic have double as many insurers in the ranking.
The largest Romanian-based insurance company in the top 50 is Astra, coming in at no. 30, with EUR257 million in premiums underwritten in 2010. The company climbed five places against the ranking published last autumn.
Compare this to the EUR3.6 billion in annual sales of the largest insurer in Central and Eastern Europe, Poland’s PZU. The Polish market is three times larger than Romania’s and grew nearly 17% last year. The Romanian market fell more than five percent, with the second half accounting for the bulk of the decline.
“The insurance market has been on a steady decline lately and we expect a 10% drop this year, as well, to around EUR2 billion,” said Radu Mustatea, chairman of Astra’s board.
Astra, controlled by Dan Adamescu, is the only Romanian-controlled company to feature in the ranking of the largest insurers in Central and Eastern Europe; the other four companies are controlled by foreign groups.
Romanian insurance companies underwrote RON4 billion (EUR0.94 million) in gross premiums in the first half of this year, down 7.4% against the similar period of last year, amid the sharp decline of auto insurance policies, according to data from the Insurance Supervisory Commission (CSA).
The market decline deepened in the second quarter, after the insurers’ sales had declined 6.6%. Voluntary car insurance (CASCO) plummeted by nearly 21%, with gross underwritten premiums reaching RON996 million (EUR233.4 million) amid a significant price decline, which did not, however, bring about more contracts.
Mandatory auto insurance (RCA) also fell 17.5%, to RON 1.13 billion, following the price cuts. Auto insurance generated around RON2.1 billion (EUR0.49 billion in revenues, down 19% on the first half of 2010.
Auto insurance policies account for two thirds of general insurance policies, but were strongly affected in the last two years by the decline of car sales and of the leasing market. They fell 10% in the first six months, compared to an 8.8% decline in the first three months of the year.
(EUR1=RON4.2657)
(English version by Daniela Stoican; Editing by Radu Bostan)