Astra becomes leader of insurance market

The first quarter of this year saw a reversal in the insurance market ranking: Astra, held by businessman Dan Adamescu, climbed to the no. 1 spot from fourth place last year.

Adamescu's company underwrote 330 million RON (80 million euros) in gross premiums in the first three months of the year, while last year's market leader Allianz-Tiriac posted 274 million RON (67 million euros) in underwritten premiums.

Seeking to gain market share, Astra strongly focused on RCA (mandatory auto liability insurance), thus achieving 66% growth, while the other insurers in the top five fell by up to 30%.

However, the first quarter of the year is not always decisive: Omniasig was leader in the first three months of 2009, having outstripped Allianz-Tiriac, but by the end of the year it had fallen back to second place.

Astra posted growth on RCA segment because it cut prices on certain client segments, although RCA proved to be an unprofitable business line. "Our revenues were pushed up by RCA, we positioned ourselves on certain market segments, especially those dedicated to individuals, with affordable prices, though not the lowest on the market," says Radu Mustatea, Astra's general manager.