AIG Life, the second biggest domestic life insurance company, underwrote gross premiums worth 14.2m euros in the first quarter of this year, up 78% on the 8m euros registered in Q1, 2006.
"The increase was largely due to the growth on the segment of new policies, but was also the consequence of a 30% higher average premium per customer," stated Theodor Alexandrescu, general manager with AIG Life. AIG Life's current average annual premium stands at 500 euros.
The growth rate of AIG Life's turnover surpassed the 60% level registered by the life insurance market for the first three months of 2007.
The gross income derived exceeded 2m euros in Q1, an 80% increase against the same period last year. The insurer's profitability is higher than the market average considering that in Q1, Allianz-Tiriac generated a gross income of 1m euros, while the Vienna Insurance group, which includes within its portfolio the insurers Omniasig, Omniasig Viata, Unita and Agras, reported an income of 1.3m-euros.
"We expect 2007 to be a very good year, with our growth rate remaining above the market average," stated Alexandrescu.
Last year, the company underwrote gross premiums worth 40m euros, growing at a rate of 33%, around three times faster than the level of the life insurance market.
Within the next few weeks, the US insurer is set to launch a health insurance product allowing for clients to be diagnosed in US hospitals. Domestically, AIG Life will work with the MedLife group of clinics and will also enter into partnerships with other hospitals in Romania.
AIG Life's private health insurance will be sold in three packages titled: Silver, Gold and Platinum, with the prices being determined by the insured persons' age. The prices range between 70 RON and 150 RON per month. AIG Life has estimated it will sell 6,000 Extra Med policies within the first year.
This year, AIG Life launched two medical insurance products in partnership with AsiLife, the insurance unit of MedLife - AsiLife Silver and AsiLife Gold.
Both policies are designed for corporate customers.
Private health insurance products accounted for 5% of AIG Life's portfolio in 2006. Alexandrescu predicts that the private health insurance segment will account for 10-15% of AIG Life's overall underwritten premiums within the next two years.
Regarding private pensions, AIG Life has stated that it is interested in entering this market announcing it has recruited a team of 50,000 enrollers (staff whose role is to attract customers to private pensions funds), dealing with an average of 5 customers every month, whilst covering all distribution channels.
AIG Life currently employs a staff of 103, with 1,200 agents, and 90 distribution managers, whilst also collaborating with 32 insurance brokers and three banking institutions - Raiffeisen Bank, ABN Amro and City Financial.
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