Allianz – Tiriac operational profit down 41 percent to EUR 1.4 million on higher damage claims

Newsroom 05/03/2013 | 16:35

The operational profit of insurer Allianz – Tiriac, controlled by German Allianz group, fell by 41.4 percent to RON 6.5 million (EUR 1.4 million), due to an increase in the paid damage claims in the non-life segment, while the gross written premiums grew by 0.3 percent to RON 908.9 million (EUR 204 million).

The non-life segment accounted close to 90 percent of the gross written premiums, while the life segment increased its contribution to 11.3 percent.

“Allianz-Tiriac was able in 2012 to stabilize the subscription revenue and to register a slight growth in the overall portfolio, considering that premiums fell in the past years, sometimes with two digits,” said Remi Vrignaud, CEO of Allianz – Tiriac.

Gross written premiums in motor, which represents 71.4 percent of the insurance portfolio, fell by 1.4 percent to RON 576 million (EUR 129 million). The largest share of the business was generated by Casco, while the mandatory insurance RCA rose to RON 174.6 million (EUR 39.1 million).

The property segment lost 1.9 percent to RON 174.5 million (EUR 39.1 million), while the other insurance classes (healthcare, civil liability) rose by 12.3 percent to RON 59.5 million (EUR 13.3 million).

The insurer’s combined ratio grew by 1.5 percentage points to 105.9 percent because of higher damage claims. Operational expenses, meanwhile, lost 5 percent to RON 243 million (EUR 54.5 million).

The life insurance segment rose by 8.2 percent to RON 102.4 million (EUR 23 million), helped by new business. Both the traditional and unit-linked insurance grew by more than 8 percent each to RON 49.6 million (EUR 11.1 million) and RON 52.9 million (EUR 11.8 million) respectively.

Virgnaud said the insurer will have a cautious underwriting policy this year and expects a moderate growth.

Allianz – Tiriac aims to cut process costs and improve efficiency and launched an online service for damage notification and observation scheduling. The insurer said that 140 observation centers across the country are included in this system.

Company officials said this system reduces the noticing period and enhances the transparency of the damage files.

Ovidiu Posirca

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