“In the first five months of 2020, which were marked by pandemic-related restrictions, Uniqa registered 1.7% growth on the general insurance segment. We continued to focus mainly on increasing profitability and diversifying our portfolio. We registered significant growth on the non-auto segment, while the auto insurance segment continued to narrow under the impact of travel restrictions,” said Paul Cazacu, CFO of Uniqa Asigurari.
On the life insurance segment, while Uniqa registered 17% in the first quarter, it posted 11% decline in the first five months.
“The lockdown period had a major impact on the sale of new policies,” said Valentin Coroiu, CEO of Uniqa Asigurari de Viata.
For the upcoming period, on the general insurance segment, Uniqa expects growth similar to that registered last year, while the life insurance company expects underwritings to drop by around 5% compared with 2019.
Uniqa’s non-auto general insurance posted 21% growth in the first five months, while on the third-party motor vehicle insurance segment the company continued its reduction strategy and reached a 35% annual decline. Third-party motor vehicle insurance has come to account for 8% of the company’s portfolio from 12% in the same period last year.
The voluntary car insurance segment registered a 6% decline in the first five months, impacted by lower new car sales and due to the company’s moves to clear its portfolio of high-damage customers.
Cazacu said the Romanian insurance market is expected to end 2020 at the same level as in 2019.
“Despite a good start to the year, I expect the market will likely end this year at the same level as in 2019. The drop in new car sales and massive losses registered in certain industries like hospitality, tourism, transport are bound to have significant impact on the insurance market,” said Cazacu.
On the other hand, the life insurance segment is expected to decline this year.
Uniqa’s two insurance companies in Romania had total underwritings of RON115.2 million in the first quarter, down 6.3% on the year.