Big insurers ceded 130m euros' worth of premiums for reinsurance in H1

The top ten general insurance companies on the Romanian market have ceded premiums worth 543 million RON (130 million euros) to reinsurers in the first half of the year, accounting for nearly 18% of the overall gross premiums underwritten in the analysed period.

However, the share of ceded premiums in the total of gross premiums underwritten varies significantly from one company to another, ranging from 3% in the case of Euroins and Carpatica Asigurări to nearly 45% in Uniqa's case, with companies choosing to take on more risks depending on their portfolio structure.
"Companies that cede a lower share of underwritten premiums for reinsurance take on a bigger risk when claims need to be settled. Insurers need to meet certain parameters, and they can keep a larger share of the premiums if their share capital allows it. Usually, local retention is higher in the case of insurers with exposure on auto insurance," says Cristian Fugaciu, general manager of Marsh insurance broker.
The portfolio of Euroins, for instance, the company with the lowest share of ceded premiums in the overall premiums underwritten, is 85% made up of auto liability insurance (RCA).