Ardaf halves its 2007 losses

The Ardaf Bucuresti company reduced its losses last year by 51.9 percent, to RON 58.8 million (€16 mln), while revenue from premiums dropped 18.7 percent, to RON 159.86 mln (€43.7 mln), according to final data reported by the insurance company.

Results are down by some 50 percent, both in terms of receipts and losses, compared to preliminary data posted in February. The insurer’s management justifies the final value of subscribed premiums in 2007 compared to preliminary data announced earlier as resulting from the cancellation of subscribed insurance contracts in previous years for which initial premiums due were not received and which, under normal circumstances, should have been cancelled. Furthermore, some 4,000 claims for damages were either not registered by the company until 31 December 2006 or inappropriately recorded. General insurance policies generated revenue from subscribed premiums worth RON 157.34 mln (€43 mln), while life insurance policies, which the company recently announced it intends to give up completely, and brought in RON 2.52 mln (€695,000).

The company presently has a share capital worth RON 188.239 mln (€52 mln), which will drop to RON 72 mln (€19.6 mln), as a result of a decrease in net assets of the insurer to a value lower than 50 percent of the share capital, according to a decision by shareholders last week.