Top insurers engage in private pension battle

ING is the life insurance field leader, with a 41.21 percent market share. Allianz-tiriac ranks fourth on this segment, with 8.33 percent, while AVIVA ranks sixth, with 6.11 percent, according to data available at the end of last year.
“I think ING has an advantage over other companies, because the company is European life insurance and private pension market leader, and Romanian leader,” insurance market analyst Constantin Nastase said. “It’s important for potential clients to know that there is an administrator who is very good at investing their money,” he added.
The three companies have broad experience in asset administration, as they have developed unit-linked insurance before optional pension legislation was passed. Net assets of investment programs for unit-linked insurance in lei administered by ING Asigurari de Via¡a totaled €186.5 million, a 35 percent increase year-on-year (€128.9 million). Foreign currency investments totaled €71 million by the end of last year’s third quarter.
ING Asigurari de Via¡a will operate private pensions through the ING Clasic fund. Its assets will be invested in fixed income products (75 percent) and shares (25 percent).
By the end of 2006, Allianz-Tiriac had made placements worth over €25 million for its ALLIAT unit-linked insurance buyers.
As for AVIVA, its lei denominated investment programs, with placements in bonds and shares listed on the Bucharest Stock Exchange, rose in 2006. The Practic Max program, with 50 percent placements in bonds and 50 percent placement in shares, increased 19.53 percent last year year-on-year.
Aviva Asigurari de Via¡a  administers the Pensia Mea (My Pension) retirement fund. Some 75 percent of funds will be invested in fixed income instruments and 25 percent in shares.
Unit-linked products entered Romania in 1998, when ING launched the first insurance of this type on the market. Six companies are currently selling unit-linked insurance: ING Asigurari de Via¡a, Aviva Asigurari de Via¡a, Allianz-tiriac, Interamerican, Generali and KD Life. Private pensions became operational in Romania several years after most Central and Eastern European countries. The Private Pension Funds Supervisory Commission estimates retirement funds will have about 200,000 subscribers in the first year, with contributions totaling €40-50 million.