Austrian insurer Vienna Insurance Group posted premiums of EUR 361.8 million in Romania in the 2013 financial year, a decrease of 11.5 percent against the previous year, according to the company’s recent financial results. In 2012, VIG reported premiums of EUR 408.6 million.

“The ongoing irrational price competition in the motor business, which was extensively cut back by the group companies, led to a decrease in premiums to EUR 361.8 million (-11.5 percent),” according to VIG.

The insurer also recorded a negative result before taxes of EUR 98.7 million, “which had a substantial effect on the combined ratio, moving it far above the 100 percent mark”.

The loss recorded in 2013 was double the one posted a year before, of EUR 44.9 million.

However, Peter Hagen, CEO of Vienna Insurance Group, said that the insurer expects to make a profit in Romania this year, according to Reuters.

VIG is represented by three insurance companies in the Romanian market, namely Omniasig, Asirom and BCR Asigurari de Viata.

Irina Popescu, irina.popescu@romania-insider.com