Omniasig, ranked second on the domestic insurance market, last year generated gross income worth 12m euros (40m RON), double the level derived in 2006.
Therefore, the insurer is among the few insurers that managed to derive significant profit on a market where most players had to cope with losses, or generated low gains due to the high level of claims on the segment of car insurance.
"We've focused on non-car insurance to offset the losses generated by car insurance, and we had a very solid result from financial investments because of some profitable placements," Constantin Toma, Omniasig chairman, told ZF.
Allianz-Tiriac, leader of the market, last year posted an operating income worth 11m euros, flat from 2006 and 2005, while BCR Asigurari, which ranked fifth on the market, reported net income worth 2m euros, half the figure of the previous year. General insurance policies are not highly profitable because of the high claims settled for car policies, which account for half of turnover in the case of most insurers.
"It's very clear that the market of general insurance is dominated by a fierce battle to gain solid positions, which has forced several players to take on the risk of losses," added Toma.
Omniasig reached turnover worth 265m euros (884m RON) in 2007, up 74% in euros from the previous year. The company posted fast growth on the segment of comprehensive car insurance - 132% in euros, from 52.8m euros in 2006 to 122.6m euros last year. From auto liability insurance (RCA), the company registered gross underwritten premiums worth 71.3m euros, after the weight of comprehensive and auto liability insurance in Omniasig's portfolio reached around 73%.
Omniasig has budgeted a 30% turnover increase this year, and forecasts gross underwritten premiums to go beyond the 300m-euro mark. The company's chairman estimates turnover to reach 1.15bn RON (around 324m euros) by yearend, while profit will reach at least the 2007 level (12m euros) in gross terms.
"We're working to reach a balance in our portfolio, considering the car segment reached a 'delicate' threshold of 75%, and we don't want to go beyond this level. This year, our efforts will focus on a review of the auto portfolio and when results are negative ones, we'll have to renegotiate with customers. I cannot afford the luxury of losing market share, but I want to become more selective," states Toma.
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