EximBank receives authorization to set up insurer CARE, expects EUR 471,000 of premiums

Romanian state-owned bank EximBank has received the authorization for its insurance company CARE in Romania (Compania de Asigurare Reasigurare Exim - the Exim Insurance Reassurance Company), which will offer insurance for commercial loans on short term, as well as insurance for guarantees. The company expects a volume of gross subscribed premiums of RON 2 million (around EUR 471,000) in the first year of activity. “The new company will offer instruments which will allow Romanian companies, especially exporters and small and medium enterprises, to manage more efficiently the commercial loans, which will increase their competitiveness,” said Ionut Costea, president of EximBank (in picture). The company was set up following the European Commission's reccomendations for the state not to support the insurance of short term export loans against market risks. However, the European Commission has said that setting up a subsidiary entity obeys the European regulations. EximBank already offers several insurance products, which it will continue to sell after the creation of CARE Romania. The bank cashed in over RON 2 million in insurance premiums in 2009, which was a 1.6 times increase compared to the year before, according to Ionut Costea. EximBank is a state-owned bank which offers financing, guarantees and insurance for companies with export activities and small and medium companies, among others.