Losses worth €4 million on the insurance market

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Losses worth €4 million on the insurance market

Half of local insurance companies were profitable in H1, but market players have different opinions regarding profit in 2008, since insurers should change calculation methods for auto liability insurances (RCA) reserves, which could lead to new tax increases for RCA policies.

“The net losses are five times lower in the first six months of 2008 compared to H1 2007,” proving the insurance market is on a growth trend, the President of Insurances Supervision Commission (CSA), Angela Toncescu, said.

Insurer’s net profit totaled €33 million in H1, 50 percent higher year-on-year. 22 companies posted profit and 21 posted losses. The general insurances segment registered total losses worth €21.88 million. In 2007, the insurances companies net result was negative, at €75.8 million.

The local market leader, Allianz Tiriac, posted profit worth €5 million in H1, while Omniasig-Vienna Insurance Group posted gross profit worth €5.4 million and Asirom VIG lost €7.4 million.