“Thus, in the reporting period, the volume of premiums brokered increased by 10% compared to the first half of the previous year (reference period), from 418,503.7 thousand lei to 458,766.5 thousand lei. The turnover exceeded 60 million lei and the net profit was close to 5.5 million lei, even though, against the background of the limitation of the intermediation commission and the decrease in the intensity of the intermediation activity on the insurance market, the income from the distribution activity decreased by 15%, while the net result was 30% below the level of the same period of the previous year. In the unfavourable insurance market environment, the average commission decreased from 17% in the first half of 2022 to 13.12%, the level for the first six months of 2023”, the report shows.
The volume of premiums brokered increased by 10% on the year to RON458 million in the first half of 2023. The intermediated volume of voluntary insurance premiums grew almost 20%, while volumes for compulsory insurance categories rose 7.4%.
At the same time, the company saw an increase of 37% in the volume of health insurance policies and of 27% for life insurance, annuities and supplemental life insurance, respectively.
“The insurance and insurance distribution market was strongly distressed in the first half of 2023 by the withdrawal of Euroins Romania’s operating license and the opening of bankruptcy proceedings against the company, an event that was followed by the government’s decision to limit prices for compulsory motor third party liability insurance (MTPL) policies at the end of February level and the MTPL distribution commissions at 8%, for a period of six months, respectively, until 11 October 2023. Transilvania Broker de Asigurare S.A. has not been dramatically affected by this crisis in the insurance sector, due to a relatively lower degree of dependence on MTPL than that of many other distributors, but also to the strategy of diversification of the offer, distribution channels and customer segments that has been systematically pursued over the last five years”, as per the report.
Transilvania Broker de Asigurare has a market value of RON100.5 million and is 42.1%-owned by Gabriel Login, General Manager, and 26.5% by Dan Niculae, Chairman of the Board of Directors.
TBK shares have gained 13% so far in 2023, amid deals worth RON17 million, in line with stock market data.