Insurers continue to hope for this upward trend, although they admit revising a portion of their plans due to the financial crisis.
AIG Life Romania posted revenues from insurance premiums worth RON 220 million (€60 mln) in the first nine months of 2008, up 49 percent year-on-year, while its gross profit doubled, up to some RON 43 mln (€12 mln), according to company officials. These indicated that the company’s business was not affected by the problems faced by its mother company in the United States. “We registered record sales in the past two months. Thus, the company posted $10 million [€7.75 mln] in monthly subscribed gross premiums, compared to a monthly average of some $9.3 million [€7.21 mln] registered in the previous quarter,” said Theodor Alexandrescu, General Manager of AIG Life Asigurari.
However, the company will not pay dividends. “Shareholders decided that AIG Life Asigurari Romania’s net profit will remain with the company and contribute to the development of business,” Alexandrescu added.
Grawe Romania revised its 2008 growth forecast downward to 20 percent from 30 percent, considering the population’s “obvious reluctance in terms of investments”, said Peter Kasyk, the firm’s General Manager, but the company is maintaining its development strategy. Grawe Romania posted more than RON 110 mln (€30 mln) in subscribed gross premiums in the first three quarters of 2008, a 24 percent annual increase. As of November 2008, Grawe will enter the general insurance market, according to a company report published yesterday.
