“The result of underwritings was influenced by the decline in car insurance sales,” Generali Romania said in a press release.
The volume of underwritten general insurance premiums declined to RON155 million in the first half of the year, from RON189.1 million in the same period a year ago.
Despite the decline on the car insurance segment, the company posted growth in travel insurance (+32%), home insurance (+17%) and property damage insurance (+7%).
“Unlike other companies, where the auto segment accounts for 60 to 90% of the business, we have managed to take it down to 40%. This does not mean we will not continue to support the auto segment, on the contrary, but our main concern will be to attract clients with good track records in traffic. Our goal is a healthy and profitable business not chasing market share at any cost,” said company general manager Marie Kovarova.
In the first half of the year, Generali posted a 22% increase on the segment of life insurance for employees. Overall, the company’s revenue son the life insurance segment increased 1.5%, to RON46 million from 45.3 million in the first half of 2010.
Life insurance has come to account for 23% in the insurer’s portfolio since the year before, while the car insurance segment dropped to 40% of the portfolio from 52%. Home insurance gained an extra four percentage points in the company’s portfolio and travel insurance grew one percentage point.
Founded in 1993, Generali Romania has a share capital of RON29.45 million and is part of Italian group Generali, one of the world’s oldest insurance groups. The group is 83.8% controlled by Generali Holding Vienna.
In June, Generali Holding Vienna bought 16.03% of Generali Asigurari from Romanian insurer Astra for an estimated EUR24 million.
By the end of this year, Generali will be absorbed by Ardaf, which will change its name to Generali Romania.
(EUR1=RON4.262)