Agras profits dried out by drought

The company’s net loss amounts to €340,000, compared to a profit for the same period in 2006 exceeding €230,000. By the end of H1, Agras announced a net loss of €280,000, while profits in H1 2006 amounted to €78,000.

The company reported net reinsurance premiums worth €3.2 million, and loss and working costs of €3.8 million. At the beginning of October, insurance consultant Maura Klassek, former Agras President, warned that companies operating in the agricultural insurance sector, could register a loss rate of over 100 percent of gross subscribed premiums in 2007 owing to poor weather.

The Ministry for Agriculture and Rural Development (MADR) sanctioned 13 insurance companies in 2007 for insuring agricultural and animal cultures: Asirom, Asiban, BCR Asigurari, Astra Uniqa, Agras, Generali, Omniasig, Allianz-Tiriac, Carpatica Asigurari, Unita, Ardaf, Asitrans, and FATA Asigurari Agricole.

Optional agricultural insurance offered by these companies does not cover calamity risks. For such risks, farmers receive compensation from the state only if they have an optional insurance policy. In practice, insurance companies serve as a link between MADR and farmers.

By the end of Q1 2007, there were 14,100 agricultural insurance contracts, according to the Insurance Supervisory Commission (CSA). From January to March 2007, insurance companies paid out €500,000-600,000 in damages.

 Agras was established in 1992, and since 2002 has Unita as majority shareholder, which in turn is controlled by VIG.

With a joint stock of €2.53 million, VIG directly controls 97.78 percent of Omniasig and 99.99 percent of Unita on the Romanian market. Omniasig Life is 50 percent owned by Omniasig, while Agras has Unita as majority shareholder, with an 88.68 percent participation.

Sanctions
The Ministry for Agriculture and Rural Development (MADR) sanctioned 13 insurance companies in 2007 for insuring agricultural and animal cultures