Financial performances in Q1 Euroins Romania – Report
•According to the latest report of the Financial Supervisory Authority, Euroins Romania ranks first in the ranking of insurance companies by gross premiums written for general insurance in the first quarter of 2022, with a market share of 23.2%.
• The key indicators included in the Q1 2022 Report are a sign of the company’s consolidated position in the insurance market, together with a balanced portfolio.
Bucharest, July 12, 2022: Euroins Romania continues its improvement with better financial indicators in Q1 2022. Euroins Romania ranks first in the ranking of insurance companies by gross written premiums for general insurance in the first quarter of 2022, with a market share of 23.2%. In addition to the ASF report, Euroins provides additional key indicators of improved financial data in the Q1 2022 Report.
“We are in an accelerated and visible process of extremely challenging, long-term transformation, which we started last year with the change of the entire management board of the insurance company, continuing with significant capital increases (over 300 million lei) from our shareholders and also from the EBRD, which has shown its commitment to continue investing in this industry.
Despite the challenges that the insurance market in Romania shows us every day, we put a lot of attention and execute operational activities to fulfill a very ambitious recovery plan, which we have undertaken, being strictly supervised by the authorities. The positive results of the efforts ours can already be seen in our official indicators in the area of insurance and also in the behavior of the market – faster payments, reliable and transparent relations with our customers and partners, the decrease in the number of complaints. Our results were confirmed by both the latest official report published on June 24 by the ASF and the press release published by the EBRD on June 26, 2022.
Key indicators of Euroins Romania – T1 report
• Euroins sales in Q1- strengthening the visibility of optional insurance and positive signs of stabilization of its position on the RCA insurance market
Trust in Euroins has grown steadily over the past year and more and more customers have chosen the insurance policies offered by the company.
1.2 million policies across all insurance products were sold in the first quarter, compared to 0.9 million last year, which means that the number of customers trusting Euroins increased by 36% in Q1 2022 compared to Q1 2021.
The highest percentage of growth was recorded in the area of optional insurance – subscriptions here are three times higher than last year, resulting in a subscribed premium of 55 million lei.This significant sales growth is driven by the company’s focus on diversifying its insurance product portfolio and paying attention to the changing needs of its customers.
The biggest increase was recorded in the CASCO product, over 800%, showing a clear increase in confidence in the company. Other products that are increasing by more than 3 times are travel, health, property and civil liability insurance (RCA).
According to the ASF report[1], Euroins market share in RCA in Q1 2022 was 36%, growing less than its competitors after distribution to City Insurance customers. The current development shows that by the end of the year Euroins will reach a market share of RCA below 30%. This is a sign that the insurance market is stabilizing in a more balanced distribution of RCA, where Euroins holds a stable position, while the company focuses and develops mostly in the area of optional insurance, showing a serious intention to balance its product portfolio.
• The payment period for material damages was reduced by 86%
The evolution of the material damage payment period is a significantly improved indicator.The payment period from the date of customer request to the date of payment has been reduced by 86% – in Q1 2022 the average payment of all claims – in which there were no victims – is only 5 days, after submitting the payment request, compared to Q1 2021, where the average compensation payment time was 34.5 days.
[1] The latest report of the Financial Supervisory Authority
Another important indicator of the improvement of internal processes is that the number of complaints, reported year-on-year, normalizes with a decrease of 84% to less than 0.01% of all complainants. That is, less than 700 claimants or customers from over 40,000 claims paid and 1.2 million policies completed were seeking more detailed answers through claims in Q1.
“We believe that all our customers should benefit from quality services at fair prices, that’s why we decided to conclude collaborations with a growing number of car services. Thus, the number of contracts with auto repair shops increased from 485 in Q1 last year to 771 in Q1 2022, an increase of 59%.
But not only material damages are important figures. We have 411 million lei in claims paid in Q1. The largest compensation paid for an RCA insurance was R3.1 million for an accident involving a car colliding with a parked lorry and then another car. 4 passengers died and 5 others were injured. Such payments indicate that guilty drivers are not only responsible for crashing cars after causing serious accidents, since the payment of premiums of up to 800 lei for RCA also covers compensation for such serious cases.”said Tanja Blatnik, CEO of Euroins Romania.
• The stability of the company is also seen through financial indicators
As part of a recovery plan and under the strict supervision of the ASF, many financial indicators have been significantly improved already in Q1 2022.
“The only indicator that is very difficult to influence in the case of the RCA product is the frequency and severity of road accidents in Romania and abroad. But to ensure the coverage of all future liabilities arising from damages, Euroins’ technical reserves, which are set aside by the company, are more than double compared to the same period last year, reaching 2.7 billion lei. This demonstrates the company’s strong commitment to increasing confidence in its business model and the products it offers. In addition, the policy of the company’s new cost efficiency management can be seen in the official data, decreasing costs by 31% compared to last year”, added Tanja Blatnik, CEO of Euroins Romania.
Euroins has been a pillar of the insurance industry in Romania for 28 years. The company has put its vast experience and expertise at the service of more than 4 million customers over time, who rely on their insurance every day.
“We consider these data to be our responsibility and obligation to offer Romanians the best possible services so that they can see all the benefits of insurance, and we promise to constantly and transparently communicate our progress and achievements. With this positive development, we are confident that we can contribute to a safer and less worrying future for Romanians”,said Tanja Blatnik, CEO of Euroins Romania.
About Euroins Insurance Group (EIG)
Euroins Insurance Group AD (EIG) is one of the most important insurance groups operating in Central, Eastern and South-Eastern Europe. Euroins Insurance Group offers a full range of insurance products, serves more than 4 million customers in 14 countries and has more than 3,000 employees. EIG is part of Eurohold Bulgaria AD, a large financial and energy group operating in the region and active in electricity distribution, supply and trading, insurance, leasing, car sales, investment services and asset management. Eurohold is listed on the Bulgarian and Warsaw Stock Exchanges. In 2021, Eurohold acquired through its unit Eastern European Electric Company the subsidiaries of the Czech energy company CEZ Group in Bulgaria, which have more than 3.www.euroins.ro; www.eig.bg; www.eurohold.bg
