AIG Romania general insurance company, part of AIG US group, has budgeted a volume of gross underwritten premiums of more than $30m (22.6 million euros) for this year.
"This year, we plan to continue with what we've been doing so far and grow in line with the market," Mihnea Tobescu, the general manager of AIG Romania, told ZF. The Romanian insurance market last year went up by 33% against the level of 2005, to 1.6 billion euros, and is forecast to advance by more than 20% this year.
AIG Romania last year generated income worth 3.14 million RON (0.9 million euros), in line with Romanian accounting standards and of 2.86 million dollars, in line with US AIG's accounting standards. The leaders of the general and life insurance markets Allianz-Tiriac Asigurari and ING Asigurari de Viata last year reached gross incomes worth 11 million euros and 14 million euros, respectively.
The company underwrote gross premiums worth 75.17 million RON (21.32 million euros) in 2006, 6% below the level posted in 2005 in RON and 4% lower in euros.
"This year, we will further promote a product we've had in our portfolio for ten years, but which has become compulsory, namely directors and officers insurance," explains Tobescu.
According to him, D&O insurance will come to account for some 5% in the company's 2007 revenues, namely 1.5 million dollars. With 19 employees, one of the smallest number of employees domestically, AIG Romania handles 95% of policies through insurance brokers, constantly working with 10-15 companies in this sector, and occasionally working with another 10 brokers.
Domestically, in terms of general insurance, AIG addresses only the corporate segment. Domestic customers include Sidex Galati, Alro, as well as most major hotel chains and real estate projects on the market.
The main types of policies AIG sells on the Romanian market include goods insurance (around 82% of the portfolio), civil liability insurance (around 10%) and accident insurance (5%). AIG Romania was set up in 1994 and has a share capital worth around 8.5 million RON (2.4 million euros), controlled by AIG Central Europe & CIS Insurance Holding Corporation.
AIG group is present on the Romanian market not only through AIG Romania, but also through AIG Life, operating on the life insurance market, and also through AIG-CET Capital Advisors investment fund. The Romanian general insurance market amounted to 1.3 billion euros in 2006, accounting for around 77% of the domestic insurance market. This is likely to see further growth this year given that around 66 EU insurance firms have notified the Insurance Supervision Commission about their intention to operate on the Romanian market directly from their country of origin. At the same time, the market may also be boosted by the decision of some financial-banking groups such as Credit Europe or EFG to enter this market segment this year.
AIG Romania
Has budgeted a volume of gross underwritten premiums worth over $30m (22.6m euros) for this year
Last year generated income worth 3.14m RON (0.19m euros) in line with Romanian accounting standards
Underwrote gross premiums worth 75.17m RON (21.32m euros), 6% lower in RON and down 4% in euros against 2005
Is set to further promote a D&O insurance, estimated to account for some 5% in the company's 2007 revenues
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