“Underwritings on the RCA segment fell 35.8% to RON63 million. Groupama decided in 2013 to voluntarily reduce exposure on the RCA segment which, in Romania, generates losses unless tariffs are calculated correctly or subsidized by other insurance categories,” the company’s general manager Calin Matei told a press conference Monday.
He also said revenues generated by the asset and property insurance policies were down 3.1% to RON105 million, on the backdrop of lower sales of voluntary policies.
According to data released in August, the insurer reported profit of RON8.8 million (under the IFRS standards) in the first half of 2014, compared to a loss of RON18.9 million in the year-earlier period.
Groupama official also said the insurer will increase tariffs on the RCA segment, for individuals, by on average 7% in October.
According to data from the Romanian Financial Supervision Authority, the insurer posted a loss of RON45.7 million in 2013, from a loss of RON87.9 million the year before.
French group Groupama entered the Romanian market in October 2007, when it bought BT Asigurari for EUR100 million.