Allianz-Tiriac, the local subsidiary of German insurance group Allianz, registered total gross premiums underwritten of over RON 906 million (EUR 202 million) in the first nine months of this year, up 17% compared to the same period of 2015.

The company’s consolidated operating profit went up by more than a quarter (27%) to EUR 15.6 million.

The group’s general insurance business went up by 18%, to EUR 182 million, mainly driven by the auto insurance segment, which increased by 19% to EUR 128 million.

“The significant growth in this business line is conjunctural and has been determined by a customer base that remained uncovered after several insurers with a relevant activity on the mandatory car insurance segment went out of the market,” said Aurel Badea, Technical Director Allianz-Tiriac.

The bankruptcies of Astra Asigurari and Carpatica Asig, two of the biggest players in the car insurance market, and the financial troubles of several other insurers, has led to higher sales for the insurers that are part of big international groups as well as an increase in the mandatory car insurance (RCA) prices. The Government intervened recently by capping the RCA prices for six months, a measure highly opposed by the insurers.

“The significant effects of controlled RCA prices will be visible starting 2017,” the Allianz-Tiriac representative said.

editor@romania-insider.com