Romanian insurer Allianz – Tiriac almost halves operational profit while slightly increasing subscribed premiums

Insurance company Allianz-Ţiriac Asigurări ended 2002 with total subscribed premiums from general and life insurance of some EUR 202 million, slightly higher than in 2011. An increase on the life insurance segment helped boost revenues, but general insurance still accounted for over 88 percent of Allianz-Ţiriac's premiums in 2012.

However, its operational profit was of around EUR 1.46 million, almost half compared to the year before, mainly because of the increase in damages payments for cars and properties, which have the largest weighting in the company's portfolio. “If we take into account the team's efforts, Allianz-Ţiriac would have deserved better results in 2012. Competition is very high on the Romanian insurance market, which is not only visible at a pricing level, but in financial strength, quality of services and, in the end, in the trust of clients,” said Remi Vrignaud, CEO of Allianz-Ţiriac Asigurări. Vrignaud, who came to the helm of the company mid 2012. He “found a very solid company, which is the more important as the local market still has some important steps to make until maturity, while the economic and financial context, both locally and internationally, continues to be complicated and challenging,” the CEO added. The company remains cautious over 2013, when it plans to restructure its portfolio of products, and become more accessible to both retail and corporate clients. Bringing the local subsidiary at a level closer to the average profitability rates within the group is among the priorities. In the general insurance segment, car insurance covered 71 percent, while insurance of goods and properties generated some 21 percent of the gross subscribed premiums. Allianz Tiriac is majority owned by German insurance company Allianz, with some 52 percent, the rest being controlled by Romanian businessman Ion Tiriac via a Cyprus based company. It is one of the largest insurance companies in Romania, among the top three. editor@romania-insider.com (photo source: the company)