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Eureko set to invest 20m euros to strengthen operations

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04.02.2009, 18:23 9

Interamerican insurer, whose rebranding process under the name of its Dutch shareholder Eureko is ongoing, will focus on private pension, health and life insurance operations as of this year, having a 20m-euro investment plan.

"We are going to invest 20m euros this year to our operations. The sum demonstrates the strength of Eureko group during a global crisis period. We project a 10% increase for life insurance in 2009 and of 30% for health insurance," stated Frans van der Ent, 41, country manager for Romania of Eureko insurance group.

At the same time, the company announced that starting May 1, it will no longer seal general insurance contracts for goods, car policies, civil liability and Cargo insurance, focusing instead on its core business lines.

"We made this decision because we have a minor position on this market. Given the estimates we have for this segment, we'll give up underwriting these policies, which have proven to be completely unprofitable. We'll take care of the customers that already have such contracts sealed," Van der Ent said.

Eureko has been present in Romania for 14 years, and has more than 350,000 contracts signed.

In 2008, the insurer registered gross underwritten premiums worth 34m RON (9.23m euros) for life insurance, up 16% from 2007. To expand on the life insurance segment, the company plans to launch unit-linked products in February.

On the segment of medical services, Eureko's revenues in 2008 reached 24.5m RON (6.65m euros). Revenues are 99% generated from the operation of Euroclinic hospital of Bucharest, where over a third of customers hold Eureko insurance policies.

"This year, we'll invest 2.5m euros in medical services, inclusively in specialised policlinics (...)," said Catalin Popa, Euroclinic general manager.

Eureko also plans to develop the pension segment. On Pillar III, the company will launch another voluntary pension fund, with a high-risk profile, Eureko Activ, beside the one with a medium-risk profile authorised late last year.

"There will be further projects. Another change is our headquarters. We will move to Olympia Tower, on the basis of a rental contract valid until 2016," Van der Ent said.

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