US insurer Watford leaves Romanian market

05 August 2020

US insurer Watford announced that it would cease activity in Romania starting September, less than two years after entering the market, Economica.net reported.

Watford entered the Romanian market with a focus on the mandatory car insurance segment (RCA), dominated by City Insurance and Euroins, but it was disappointed.

The no-deal Brexit also contributed, as the US insurer entered the Romanian market through a British-registered entity.

Watford Romania has decided to stop issuing to new insurance policies from September 1, 2020, "due to the low level of premiums and the high level of inflation of damages in recent years," according to a note the company sent to the brokers it worked with on the local market.

The lack of an agreement to follow Brexit has visibly accelerated Watford's decision grounded on the low profitability of the RCA segment.

Watford group entered the Romanian market through Watford Insurance - a wholly-owned subsidiary of Watford Re Ltd., registered in British overseas territory Bermuda.

But as Watford acquired French insurer Axeria IARD, the US insurer can, at least in principle, return to the Romanian market.

(Photo: Pixabay)

editor@romania-insider.com

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US insurer Watford leaves Romanian market

05 August 2020

US insurer Watford announced that it would cease activity in Romania starting September, less than two years after entering the market, Economica.net reported.

Watford entered the Romanian market with a focus on the mandatory car insurance segment (RCA), dominated by City Insurance and Euroins, but it was disappointed.

The no-deal Brexit also contributed, as the US insurer entered the Romanian market through a British-registered entity.

Watford Romania has decided to stop issuing to new insurance policies from September 1, 2020, "due to the low level of premiums and the high level of inflation of damages in recent years," according to a note the company sent to the brokers it worked with on the local market.

The lack of an agreement to follow Brexit has visibly accelerated Watford's decision grounded on the low profitability of the RCA segment.

Watford group entered the Romanian market through Watford Insurance - a wholly-owned subsidiary of Watford Re Ltd., registered in British overseas territory Bermuda.

But as Watford acquired French insurer Axeria IARD, the US insurer can, at least in principle, return to the Romanian market.

(Photo: Pixabay)

editor@romania-insider.com

Normal
 

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