“We are a retail insurer and when one operates on this segment, one must have auto insurance policies,” Paul Swoboda said.
Grawe will enter the comprehensive insurance (Casco) segment next year and plans to file its application for a license this week or the next. Ideally, it should begin selling such policies in May 2016, the executive added.
Swoboda says he has not set a target for auto insurance sales because he wants step by step sound growth.
Grawe is also considering entry on the auto liability insurance (RCA) segment, but would rather wait and see how the market goes first, considering the recent changes and the exit of Astra Asigurari.
The bankruptcy of Astra Asigurari might result in an increase in the auto liability insurance prices, thus attracting more foreign-held insurers to the segment.
Market sources say even Germany’s Ergo, which has a life insurance company in Romania, is interested to enter the auto liability insurance segment via an acquisition.
There is also talk about Grawe being interested in Carpatica Asig, a company that is looking for an investor to come with capital. Paul Swoboda says Grawe had no intention to buy it because Carpatica’s portfolio was too big and difficult to manage.
Grawe will end the year with 5% decline in gross written premiums, which means revenue should reach about 48 million lei (EUR10.7 million) revenue.
The decline is because this is the first year when policies reached maturity and customers did not renew them, Swoboda said, adding he expected revenue to increase again next year by about 3%, the same as the entire market. Grawe will end 2015 with RON5.5 million profit.
(English version by Loredana Fratila-Cristescu)