VIG reported profit before tax (PBT) of EUR28.5 million in Romania in 2011.
“The economic situation in Romania is under the impact of governmental consolidation measures and a consequently subdued economic development. This affects also the insurance sector, in particular the motor leasing business,” Austrian Group VIG said in a press release Thursday.
It also said the EUR12.8 million loss is due to adjustments of premium receivables, the decline in the motor leasing business, as well as the claims development in the car insurance segment.
In the life insurance segment the Group increased premiums by 8.4% to EUR101 million, a trend supported particularly by sales through BCR Bank, which forms part of Erste Group. The non-life insurance segment posted a 7.6% decrease in underwritten gross premiums, to EUR401.9 million.
With its Group companies, VIG has strengthened its number one position on the Romanian insurance market, holding a market share of about 29%. VIG controls in Romania insurance companies Asirom, Omniasig, BCR Asigurari and BCR Asigurari de Viata.
In August 2011, shareholders of insurer Omniasig Vienna Insurance Group and of insurer BCR Asigurari approved the preliminary merger between the two companies, which is due for completion on April 1, 2012. Following the merger, BCR Asigurari will change its name to Omniasig Vienna Insurance Group. The insurance company created after the merger is set to become the leading insurer on the Romanian market, according to the merger plan.
VIG is one of the biggest insurance groups in Central and Eastern Europe and is listed on the Vienna Stock Exchange.