As many as 18 insurance companies in Romania increased their share capital January through June this year by more than 352 million lei (some 96 million euros), with the amount representing 63.5% of the value of such operations last year.
According to data released by the National Insurance Supervision Commission (CSA), as many as 24 insurers operated in 2007 such increase in the share capital on the domestic market, from the 42 authorized, with the quantum of the operations having exceeded 554 million lei (approximately 166 million euros) Ziarul financiar daily reads on September 29.
“Even with the insurers having closed the 2007 fiscal year on loss, the market is stable and solvable, with an average solvability rate exceeding 2 in the case of the general insurance, and almost 4 in the case of the life insurance, in the context the minimum requested by the in force cautious norms of the CSA is 1 in the case of both indexes,” Angela Toncescu, CSA Chairman explained.
She also appreciated that the increases in the capital operated this year “are to consolidate even more the stability of the market and are to contribute also to the development of the business.”
She also appreciated that the increases in the capital operated this year “are to consolidate even more the stability of the market and are to contribute also to the development of the business.”
In mid-year, the number of such insurance companies authorized by the CSA to operate general and life insurance policies reached 43. The last such companies having got the certification was Signal Iduna Life Insurance. Part of the German group Signal Iduna, the local branch got the final authorization from the CSA early in June this year and has a share capital of some 22 million lei.
The CSA is currently checking to authorize the local branches of such other international players as Credit Europe (Turkey), Ergo (Germany) and Sogecap (France).
These Groups are to operate via Credit Europe Life Insurance, Ergo Life Insurance and BRD Life Insurance. Besides the three companies, Aegon Life Insurance too got the authorization to set up in late May, with the company currently completing the necessary documents to get the functioning authorization, Toncescu said.
In the case of BRD Life Insurance, the representatives of the company stated that they expect to start subscribing activity in late 2008.
Credit Europe (which was Finansbank before) is already present on the Romanian market via Credit Europe Insurance-Reinsurance (former FIBA Insurance until 2007), a company authorized to operate on the general insurance segment.
“Life insurance segment has a great development potential, with so many companies having shown their interest in such a short while in this segment confirming this fact. That’s why, I believe that in 5-6 years, Romania will have a much more developed sector in terms of life insurance than we have now,” the CSA Chairman also said.
Last year, the life insurance sector weighted for some 20% of the total subscriptions on the entire insurance market.
Last year, the life insurance sector weighted for some 20% of the total subscriptions on the entire insurance market.
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