Allianz-Tiriac boosts operations in Romania, but sees profits hurt by fine
Allianz-Ţiriac, the second largest insurer in Romania, increased its sales by more than 7% in 2018 to RON 1.3 billion (EUR 280 million), but its operating profits grew by only 4% to RON 135 million (EUR 29 million), Ziarul Financiar has…
Romania Insider · Journalist
· Updated · 1 min read
Allianz-Ţiriac, the second largest insurer in Romania, increased its sales by more than 7% in 2018 to RON 1.3 billion (EUR 280 million), but its operating profits grew by only 4% to RON 135 million (EUR 29 million), Ziarul Financiar has calculated based on information submitted by the company.
"The sales grew by 8% last year and the operating profit by 4%. Generally, we manage to increase our profit more than sales. [But] last year it was not the case, because we had the impact of the Competition Council's fine and we had to make provisions," explained Virgil Soncutean, general manager of Allianz-Tiriac.
In December 2018, the Competition Council sanctioned nine Romanian insurers for collusion in setting the prices for compulsory third-party car insurance (RCA) fees. The fines totaled EUR 53 million and Allianz-Tiriac got the highest sanction - EUR 9.3 million.
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