Companies active on the Romanian insurance market recorded overall losses of EUR 60 million last year, 7.5 times higher compared to 2014, according to the Financial Supervisory Authority (ASF).

19 insurers recorded total net profits of EUR 104 million whereas 16 local insurance companies saw cumulated losses of EUR 164.2 million.

The losses were mainly due to the car insurance sector, which has a high damage rate, namely over 90% of the gross premiums. This has a big impact on the entire insurance market, because the market is still highly dependent on car insurances.

The most active companies in the car insurance segment, namely Euroins, Carpatica Asig, Asirom and City Insurance, recorded cumulated losses of over EUR 125 million. Euroins, had the highest losses, of over EUR 67 million, followed by Carpatica Invest, with EUR 46 million. The two companies make over 90% of their revenues from mandatory car insurance (RCA) policies.

Companies with low exposure to the RCA segment posted some of the highest profits. These include life insurer Metropolitan Life, which ended the year with a net profit of EUR 40 million, as well as general insurers Allianz-Tiriac (EUR 18.4 million), and Generali Romania (EUR 15.3 million).

The insurance sector saw an annual growth of 8.2% in the volume of gross written premiums last year, to EUR 1.9 billion.

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editor@romania-insider.com