Fire and natural disaster insurance has boosted the business of AIG Romania to 17.7 million euros (64 million RON) in the first nine months of the year.
The Romanian general insurance branch of the US financial service group AIG posted a 52% growth in the premiums underwritten in euros, compared with the first nine months of last year.
The amount of premiums underwritten for fire and natural disaster insurance went up by 60% compared with the same time in 2004, to 14.3 million euros (more than 51.8 million RON).
AIG officials say this growth was due to the company selling more policies for higher insured amounts.
The insurer ended the first nine months of the year with net profit of more than 590,000 euros (2.1 million RON), an increase of 24% on the corresponding period of 2004.
The highest growth out of all the insurance segments in the first three quarters was for financial loss insurance, which generated a volume of underwritten premiums that stood at nearly 340,000 euros (1.2 million RON), 74% higher than in the same period last year.
"The growth was mainly due to Directors & Officers Liability (D&O) policies. The D&Os come with above-average insurance premiums and were taken out by some Romanian companies listed on the Bucharest Stock Exchange," explained Mihai Lucanu, Financial Lines & Marine Manager with AIG Romania.
The D&O policies account for some 75% of the total financial loss policies concluded by the company. Companies buy D&O insurance for managers, as this insurance covers the financial losses incurred by the company or third parties as a result of the errors and omissions made by administrators and chief executives in their management activities.
Besides D&O, the financial losses category includes insurance against risk of fraud, including acts of fraud that can be pinned on employees (such policies are generally called Crime/Fidelity) as well as insurance for crisis situations, such as when a person is kidnapped; in cases of contamination; where products are recalled from the market; or embezzlement. angela.placinta@zf.ro
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