The profit went down despite higher sales of policies and lower claim settlement spending. They were unable to offset the decline in revenue from investments to RON19 million, from RON120 million in 2011. Astra recorded higher spending on its premium reserve and reinsurance ceded increased, too.
The company, however, remains one of the few local insurers to have constantly posted profit during the crisis on a market where aggregate losses widened every year. It posted its last annual loss in 2007, RON70 million.
Revenue from investments dropped to one sixth of the previous level as the investments of the insurer shrank to RON192 million. Its investments in deposits decreased by 45% to RON107 million. It collected 2% to 8% a year in interest from its bank deposits, according to its annual report.
Astra was the insurance market leader for the third year in 2012, with more than RON1.1 billion in gross written premiums. It aggressively developed its auto liability policy and home insurance business at the onset of the crisis and then started to expand abroad. Its main competitors are Omniasig (VIG Austria) and Allianz-Tiriac. (EUR1=RON4.3663)
(English version by Loredana Fratila-Cristescu)