Bulgarian group enters health insurance segment in Romania

Local insurer Euroins, which is part of Bulgarian group Eurohold, has announced its entry on the health insurance segment. The move is part of the company’s strategy to diversify its portfolio, which has been heavily reliant on mandatory car insurance (RCA), a market segment with high loss ratios. Euroins will sell health insurance policies both to individuals and companies. The EuroProtect health insurance can be used in 460 private clinics and medical practices. The premiums start from RON 99 (EUR 22) per year for the basic package and reach RON 449 (EUR 100). Euroins was the fifth-biggest insurance company in Romania by gross premiums underwritten in the first quarter of 2016, with a market share of 10.5%. In 2015, the company recorded gross premiums worth EUR 161 million but had losses of EUR 67.5 million. The mandatory car insurance premiums (RCA) accounted for 95% of its portfolio. Thus, Euroins received the most damage claims files last year, over 31,400, which represented more than a quarter of the total market. The insurer’s loss ratio amounted to 77.5%. Euroins has been under financial recovery since October 2015. The Financial Supervisory Authority (ASF) has asked the company’s shareholders to come up with fresh capital and increase the company’s reserves, which were low compared to its activity volume. Euroins got some EUR 45 million worth of new capital from its shareholders in April this year. In September, the company’s shareholders will discuss another capital increase worth some EUR 22.4 million. Romania's insurance market goes up by 9% in the first quarter Romanian insurance market sees EUR 60 mln losses in 2015 editor@romania-insider.com