AIG Romania, the general insurance subsidiary of American International Group, in the first three months of this year generated net income worth almost 2.5m RON (0.7 million euros), 3.5 times higher than in the same period last year.
"The financial result is directly tied to the underwriting policy. We had a healthy policy and we are not willing to make any compromises in terms of underwriting just to boost turnover," Mihnea Tobescu, AIG Romania general manager, told ZF.
While the company's income surged 3.5 times, turnover registered a slight drop, (4.6%), and fell to around 59.9 million RON (more than 16.2 million euros).
AIG Romania specialises in corporate customers and is not involved in car insurance policies, which are the growth driver of most companies on the Romanian market.
AIG relies on property insurance, which accounted for almost 85% of business in the first quarter, with gross underwritten premiums worth 50.8 million RON (13.8 million euros). Compared with the same period in 2007, there was a 6.3% drop in terms of gross underwritten premiums.
Fire and natural disaster insurance also hold a significant weight in the company's portfolio - 8.3%.
Premiums on this segment reached almost 5 million RON (over 1.3 million euros) at the end of the first quarter, 10.4% above the level registered in the same period of 2007.
On the segment of general liability insurance, which accounted for 3.6% of overall turnover, gross underwritten premiums stood at around 2.2 million RON (0.6 million euros), 23.3% below the level reached during the first three months of 2007.
"One reason for the lower gross underwritten premiums was the fact that the policies of some multinational programmes were not renewed, but the domestic business was not hurt," Tobescu added.
AIG Romania has a share capital of 8.6 million RON (2.4 million euros), controlled by AIG Central Europe & CIS Insurance Holding Corporation (99.99%).
AIG group also owns a life insurance company in Romania, AIG Life, the second biggest player on this market, and a private pension manager, AIG Fond de Pensii, which ranks sixth on this market.
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