The value of insurance companies is dropping, as the insurance market is free-falling. In 2010, Allianz, Omniasig and Groupama were worth over EUR650 million together. The domestic insurance market has been declining for the past three years and is currently below the EUR2 billion threshold it had topped in 2008.
Allianz-Tiriac remains the most valuable insurance company even though it is no longer the top insurer on the market by sales.
However, the company’s market value has decreased 28% from last year and is currently estimated at EUR198 million, which is 80% of the gross premiums it underwrote last year.
The value of Allianz-Tiriac decreased as its business has not shown signs of recovery after the first three quarters of the year, when its underwritten premiums dropped 18% to EUR142 million. Allianz-Tiriac’s sales declined 20% throughout the last year, when it was demoted to second place after seven years in the row as market leader.
The insurer is ranked 64th in the top 100 most valuable companies, from the 52nd place last year, and the company’s value decreased by 28% since 2010. Allianz-Tiriac posted net loss of EUR4.5 million in 2010, after ten years of profit.
The second most valuable insurer in Romania is Omniasig, held by Vienna Insurance Group (VIG). Omniasig has a market value of EUR168 million, down 28% from last year. The insurer is currently ranked 83rd in the top 100 most valuable companies in Romania, from 58th last year.
Omniasig posted a profit of just EUR800,000 in 2010, compared with a profit of EUR12 million in 2009. The insurer will merge next year with BCR Asigurari, also owned by VIG, and the new insurance company is expected to become the market leader.
For the first time included in the top 100 ranking, insurer Astra is worth an estimated EUR135 million. The company underwrote gross premiums of RON870 million in January-September and its profit increased four times on the year, to RON78 million. This summer, businessman Dan Adamescu bought back a 27% stake in Astra from Austrian insurer Uniqa, for about EUR25 million. Uniqa has bought the 27% stake from Adamescu in 2005 for EUR10 million. The initial plan was for Uniqa to become Astra’s majority shareholder, but the deal fell through.
French-owned Groupama has been losing market share over the past two years but managed to stay on the fourth spot among local insurers, and underwrote about EUR118 million in premiums in January-September, down 10% on the year.
Groupama entered the Romanian market in 2007 and has since bought three local insurers – Asiban, BT Asigurari and OTP Garancia – and invested more than EUR500 million.
Groupama is valued at EUR132 million, down 8% from last year, when its market value was estimated at EUR144 million.
(English version by Oana Gavrila)