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XPRIMM News - THE ROMANIAN INSURANCE MARKET NEWSLETTER
No. 114, August 14th, 2008
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INSURANCE PROFILE
ICAR FORUM 2008
  EDITORIAL


Now it's time to overhaul the pension system

Let's not be afraid to say it: a super-cautious private pension system , with guarantees too many (and therefore too expensive) may not be effective and will not deliver the results expected in the form of pensions large enough to offset costs made today in the form of contributions. For the social effort assumed by a mandatory private pension system to be worthwhile, pension funds' yields over scores of years should compensate management fees, other expenses of operation (in particular those related to guarantees) and even the inflation rate. And, of course, to bring the replacement rate higher to the one provided by the public pension - that is to even bear down the politicians' natural predisposition towards populism.
The mandatory private pension system finally got started, already collecting the first money and even starting to invest it. The moment has been waited for more than ten years, so the satisfaction of all parties involved, from fund managers to the Supervisory Commission and even the specialized press, was perfectly motivated. But for things to go as we would like the next issue on the agenda is by all means the improvement of the system - the reasons are, again, enough.

The investments' efficiency, meaning cumulated yields as higher over years and years must now be the main target of the market. Although now may not seem, the mandatory pension system still has a lot of obstacles to break through. The first would be its own operating costs - administrative commissions and other expenses related to the guarantees of the system - technical provisions, contributing to the guarantee fund and others. These expenses will react, directly or indirectly, on the funds' expenditures. As a result, they must be offset by sufficiently high yields.

Then, we will always have inflation as the first benchmark for funds. Americans say that there are only two truths in the world: death and taxes. In our case, inflation is an unseen tax (but still there) that will wear down pension funds also, as it scours any income in the economy. The funds will therefore have to offset inflation in order to have the argument of earnings in real terms. Perhaps, paradoxically, the system must bear down the inflation alone, through efficient investments in the long term, and not by any legislative provision. In this case, funds would invest massively in super-safe and super-cautious instruments (state bonds and maybe bank deposits) with results matching expectations.

The discussions about the necessary guarantees of the system and about the effect of inflation on the pension funds are going towards a single point. "Risk is risk, it can not be legislated away" - as Dinko NOVOSELEC, President of the ALLIANZ pension unit in Croatia, was saying at this years' FIAR. The risk of investment and the market risk are there, and they can not be offset by a vote in Parliament - nor in Romania or anywhere else.

And asking excessive guarantees from the private pensions system (who needs them more, funds' participants or politicians? How expensive are they and who will support them, if not the participants again? - Here are some interesting questions), especially that the public PAYG pension system offers basically no guarantee, is illogical and maybe even immoral. Thus the State would require funds, by law, to outrun inflation and to have large and constant outputs regardless of the financial markets' evolution. Unfortunately, it is impossible - if it was possible, the solution had already existed somewhere in the world and hadn't to be invented in Bucharest. Eventually, the best guarantee that the system needs is a mixture between competition between funds and the participants' freedom of movement from one fund to another - namely the common sense laws of the free market.

Why we had brought the argument about politicians in discussion? Simple: because funds will have to compensate their natural predilection to populism. Maybe over 20 years, when the mandatory pension system will make its first payments, politicians will have decided that the state pension should represent 60% of the average wage, compared to about 40% -45% now, despite obvious demographic trends and limited budgetary capacity. People then will make their first calculations: I contributed with these amounts at the public system, which brought me the pension I have today. What about the private system, was the replacement rate better or worse? Was it worthwhile? Thus, the pension funds must perform well enough to pass this exam too.

Here are the reasons for improvement since today, not tomorrow, of the system. How can this be done? Most of the burden falls also upon the authorities: an increasingly flexible law, to allow more efficient investments and do not require pension funds aberrant guarantees. The other part, at all insignificant, falls upon the funds' administrators which must always find and capitalize on investment opportunities for delivering growth to these funds. And for this, funds must overcome soon, both aided by legislation, as well as on its own initiative, the super-careful attitude (in fact the feature of any start) of the '80% fixed income and no more than 20% equity' investment type.

State bonds are just a win-lose kind of game for the Government, which wants to privatize the pension system, but keeps financing or even subsidizing this privatization by making the pension funds buy its bonds - and thus the state postpones the final step is has to take back out of the private pension system. In other words, the state walks some money between two of its pockets, and the convenience of investing money from private pension accounts in state bonds isn't beneficial neither for funds nor for their participants.

Both parties (the authorities and the pensions' companies) must therefore have a single target in mind: the best interest of the participants. And barriers needed to be overcome by private pension funds, the ones described above, mean that the system needs all the support it can get, from all parties involved.

by mihai.bobocea@mxp.ro

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BCR Asigurari de Viata
ASIBAN
ASIGEST

ASIGEST Agri

AUDATEX
WILLIS
POLISH Re
ASIBAN
FADATA
EDITORIAL | INTERVIEW | TOP PRESS | CEE & CIS | FINANCIAL NEWS | EVENTS
 INTERVIEW

 

Interview with Mr. Fanel PLOPEANU
General Manager
FATA Asigurari

XPRIMM: How did agricultural insurers react to the year 2007? What is the estimated claims ratio for this segment between 2006 and 2007?
Fanel PLOPEANU:
Insurance companies who are present in the agricultural insurance segment perceived 2006-2007 as a warning to take action on an economical and technical level. It seems that global warming is making its presence felt in our country. We are facing unusual weather phenomenon for Romania which are more frequent and more aggressive. Having this in mind, the claims ratio (crops and livestock) for 2007 climbed to 100-200%. That is why insurers have to take measures to cover the costs of these risks.

XPRIMM: What is your opinion on the proposition from the Minister of Agriculture regarding the cover for draught and floods through insurance?
F.P.:
We believe that this measure is premature for Romania. Considering that the notion of insurance in our country is relatively new in comparison to other countries, companies do not have the reserves and the financial strength to cover catastrophic risks.

XPRIMM: Which are the modifications you think are required on a legal level so agricultural insurance to be stimulated?
F.P.:
First of all, the 50% subvention for insurance premiums should be reintroduced, together with widening the list of crops and animals that will benefit from this. Private producers don't have the possibility to cover the insurance at their own expense like the ones from more developed countries do.
On the other hand, insurers must reanalyze how premiums will grow according to the specific risks, the use of the "malus" system and introducing new types of insurance to cover all their needs.
The Committee for Agriculture of UNSAR, with the participation of MAPDR can start debates to establish a plan for this situation.
If the appropriate measures are not taken, this type of insurance will disappear because will prove not to be profitable and investors will drop agricultural insurance.

XPRIMM: What do you think about the potential of this segment?
F.P.:
The potential as an area is large, 70-80% of the crops and livestock. Presently, only 15-20% of the surface is covered but as far as and some animal farms are concerned insurance is insignificant and also improfitable.

by mihaela.circu@mxp.ro

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Fanel PLOPEANU
Mr. Fanel PLOPEANU
General Manager
FATA Asigurari

MEDICOVER
YALTA 2008
EDITORIAL | INTERVIEW | TOP PRESS | CEE & CIS | FINANCIAL NEWS | EVENTS
 TOP PRESS

ICAR FORUM 2008


ICAR Forum - officially launched
ICAR - The International CAtastrophic Risks Forum, the main European catastrophic risks event, was officially launched. This edition takes place at the Parliament Palace in Bucharest, Romania, on October 14th, 2008 and it's the first to be focused on agricultural risk management.
ICAR 2008 provides with an open debate upon the key challenges of Romania's agriculture, focusing on the public-private partnerships for mitigating specific risks which affect this sector.
The main objective of ICAR 2008 is to create a regional discussion platform regarding the use of insurance systems as a tool for the development of the agricultural sector.
Click here for details!
by mihaela.circu@mxp.ro, 14.08.2008


www.privatepensions.ro - Everything about private pensions in Romania!
Today, Media XPRIMM officially launches the web portal www.privatepensions.ro - the essentials of the Romanian private pension system and market, in English language. The portal includes the latest news, relevant parts of market legislation, the market players and pension funds available, the latest statistics, data and market analysis, together with other useful links regarding the Romanian private pensions market. The newly launched www.privatepensions.ro is the primary information source for everything related to pensions in Romania.
by mihai.bobocea@mxp.ro, 14.08.2008


GROUPAMA is officially the only shareholder in ASIBAN
GROUPAMA has officially signed the transaction to takeover ASIBAN for EUR 350 million from the four previous shareholders - BCR, BRD - Groupe Societe Generale, TRANSILVANIA Bank and CEC Bank. Thus, GROUPAMA becomes the third largest player on the Romanian market, considering the results of all the companies owned by the French group in Romania - BT Asigurari, OTP Garancia and ASIBAN, with a 12.6% share of the market.
Click here to read more!
by andreea.ionete@mxp.ro, 06.08.2008


EUR 212 million in H1 (+12%) and EUR 5 million profit for ALLIANZ-TIRIAC
Written premiums for ALLIAZ-TIRIAC increased by 12.1% in the first semester of this year to EUR 212 million, in comparison to EUR 189 million in June 2007, according to the results published by the ALLIANZ Group. The operational profit from the top of the Romanian insurance market grew from EUR 3 million to EUR 5 million, as a consequence of the life insurance segment.
Click here to read more!
by andreea.ionete@mxp.ro, 08.08.2008


ASIROM establishes a new Claims Call Center
A Call Center Service was founded by ASIROM aiming to accomplish the connection between the company and the clients that were involved in car accidents and need information in order to solve their claims, ASIROM VIENNA Insurance Group announced.
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by andreea.ionete@mxp.ro, 11.08.2008


The first season of Pillar II transfers: only 322 transfer requests were submitted
The mandatory private pension companies (pillar II) processed and sent to CNPAS only 322 requests of transfer to other mandatory pension funds, all received from the participants, stated the management of the National House for Pensions and Social Security (CNPAS) for the www.privatepensions.ro portal. The first season of transfers between mandatory pension funds took place on Friday, the 1st of August, when the companies reported to CNPAS the participants' transfer requests.
Click here to read more!
by mihai.bobocea@mxp.ro, 14.08.2008


LLOYD's has its eyes on Romania
LLOYD's intends to expand its activities in Central and Eastern Europe, Romania being an important point in this strategy.
"For next year we plan to enter the markets in Romania, Hungary and Turkey", declared Enrico BERTAGNA, Regional Manager for Europe.
Click here to read more!
by mihaela.circu@mxp.ro, 11.08.2008


The private health insurance - the most desirable benefit at the workplace
About a quarter of the employees in Bucharest (24.5%) and more than 20% of the provincial ones (from towns with more than 100.000 people) declare that, among the other benefits they have from their employer, they would like to receive, more than anything else, the private health insurance, the ASIBUS Study, realized by MEDNET Marketing Research Center and Media XPRIMM indicates.
Click here to read more!
by vlad.boldijar@mxp.ro, 4.08.2008


GENERALI Asigurari grows by 12% in six months
In the first semester of this year Romanian GENERALI Asigurari has reached a total volume of gross written premiums of RON 212.2 million, 12% more in comparison with the same period of last year (RON 189.1 million). Life insurance increased by 53.6%, from RON 27.8 million in H1/2007 to RON 42.7 million, while general insurance have grown by 5.12%, reaching RON 169.6 million. The profit of the company for the first half of 2008 was RON 15.9 million compared to RON 21.6 million for H1/2007.
Click here to read more!
by andreea.ionete@mxp.ro, 4.08.2008


ING Life: Flat premiums and profit in Q2
ING Life, the leader of the local life insurance market, came to a standstill in business and in underlying profit before tax, in the second quarter of 2008, with EUR 37 million gross written premiums and a EUR 2 million operational profit, according to the results published by ING Group yesterday. After the first half of the year, the Romanian insurer has grown with only 4% as compared to H1/2007, from EUR 71 million to EUR 74 million, while the operational profit has dropped down to EUR 3 million, from EUR 4 million, the group announces.
Click here to read more!
by andreea.ionete@mxp.ro, 12.08.2008


CSSPP asked the Ministry of Finance for variable deductibility on voluntary pensions, up to EUR 2,000 per year
The Private Pension Supervisory Commission (CSSPP) submitted a notification to the Ministry of Economy and Finance (MEF), requesting the increase of the fiscal deductibility for voluntary private pensions (pillar III) up to a maximum of RON 3,500 per year (EUR 1,000 per year), both for the employee and for the employer, stated Mircea OANCEA, president of CSSPP, for www.privatepensions.ro.
Click here to read more!
by mihai.bobocea@mxp.ro, 14.08.2008


Finance minister: We shall at least double fiscal deductibility for voluntary pensions
Fiscal deductibility for voluntary private pension funds (pillar III) shall be subject to an increase from simple to double, at least, namely to at least EUR 400 per year, most likely beginning with the 1st of January 2009, stated for the www.privatepensions.ro portal the minister of economy and finance, Varujan VOSGANIAN. He mentioned that a more significant increase (more than double) might apply, but this is still debated at ministry level. VOSGANIAN also added that the increased deductibility might become effective on the 1st of October this year.
Click here to read more!
by mihai.bobocea@mxp.ro, 14.08.2008


Change of leader on Romania's voluntary private pension market
ING Life Insurance became last month the new leader of Romania's voluntary private pension market (pillar III), based on the administered net assets, taking over this position from BCR Life Insurance, according to a survey conducted by the www.privatepensions.ro portal. ING has already become the largest voluntary private pension administrator based on the number of participants to its funds, taking this position from ALLIANZ-TIRIAC Private Pensions. The fight is close at the top, with many changes of positions in the ranking.
Click here to read more!
by mihai.bobocea@mxp.ro, 14.08.2008


ARDAF aims to double its business in 2008
For the year 2008, Romanian insurer ARDAF aims for more than EUR 90 million underwritings in gross written premiums, which represents twice the volume for 2007, of EUR 45.13 million (RON 157.34 million), and in the same time it is trying to develop a balanced portfolio, the representatives of the company have declared.
Click here to read more!
by andreea.ionete@mxp.ro, 8.08.2008


BT Asigurari increased its capital
GROUPAMA increased the capital of BT Asigurari by RON 80 million to RON 207.5 million, according to the Official Gazette.
Before this increase, BT Asigurari had a capital of RON 127.5 million. This was carried out through an issue of 80.000 shares with the value of RON 1.
Click here to read more!
by vlad.boldijar@mxp.ro, 01.08.2008


Radu VASILESCU resigned from the management of ING Pension Fund. Emilia BUNEA, the new CEO
Radu VASILESCU resigned from the management of ING Pension Fund, to focus on financial consulting, he said for www.privatepensions.ro. ING Pension Fund is the largest private pension fund administrator (mandatory and voluntary) on the Romanian market.
Click here to read more!
by mihai.bobocea@mxp.ro, 14.08.2008


Top mandatory private pension funds with the most "valuable" clients in Romania
ING, AIG, BRD and BCR attracted the most "valuable" clients on the mandatory private pension market (pillar II) according to an assessment conducted by the www.privatepensions.ro portal, based on data from CSSPP and CNPAS. The assessment, the very first one in this respect, underlined the net average assets value for each participant attracted by the mandatory pension funds, three months after the system started to collect the contributions.
Click here to read more!
by mihai.bobocea@mxp.ro, 14.08.2008


Pillar II in CEE: 29 million clients and EUR 55 billion worth of assets in 2007
The ten states from Central and Eastern Europe that have introduced the mandatory private pension reform so far (pillar II) counted 28.8 million clients for the mandatory pension fund and administrated total assets of EUR 54.6 billion at the end of last year, according to an exclusive survey conducted by the PRIMM Insurance&Pensions Magazine. Compared to 2006, the number of participants to pillar II in the region increased by 24%, and the net assets went up by 30%.
Click here to read more!
by mihai.bobocea@mxp.ro, 14.08.2008

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 CEE & CIS


Russian Insurance Market: H1 2008 Results
In the first half of 2008, Russian insurance companies generated EUR 12 billion in premiums, an increase of 23.8% compared to the same period of the previous year, and paid claims of EUR 7,73 billion, a 28.6% increase from January-June 2007, Ilya LOMAKIN-ROUMYANTSEV, Head of the Federal Service for Insurance Supervision (FSIS), announced on August 6.
As of June 30, 2008, the united state register of insurance organizations included 830 insurance companies. For the first half of 2008 the FSIS received electronic data from 775 insurers, 45 insurers failed to provide data as required and 10 companies didn't carry out insurance operations during the reporting period.
As noted by the FSIS, in the non-life segment 127 insurers accounted for 90% of the total premiums and 94 companies for 90% of the total losses. In the life market, 14 companies accounted for 90% of the gross life premiums and 24 insurers for 90% of the total claims paid.
In the reporting period, the highest grossing insurance classes were CMEI (38% of total market premiums), property insurance (32.9%), and personal lines (15.1%). Compulsory MTPL business accounted for 8.3% of the market, liability insurance for 2.5%, while the share of life premiums was only 1.8%. Therefore, the non-life segment represented 98.2% of the Russian insurance market.
Life premiums amounted to EUR 0.23 billion, a decrease of 32.1% from January-June 2007. Premiums generated in the property segment totaled EUR 4.26 billion, a 21.5% increase compared to the first half of 2007. A&H insurance premiums totaled EUR 1.93 billion (a 26.1% growth), compulsory MTPL premiums EUR 1.07 billion (up 12.9%), liability premiums EUR 0.3 billion (a 7.5% increase).
According to the FSIS, top three companies in the Russian life market are AIG Life, Russian Standard Insurance, and SOGAZ-Life. In the non-life segment, the top-three list includes SOGAZ, INGOSSTRAKH and RESO-Garantia. Among reinsurers, the leaders are INGOSSTRAKH, KAPITAL Reinsurance, and National Energy Insurance Company.
In the first half of 2008, the FSIS withdrew 13 insurance licenses, suspended 17, and restricted one license. Furthermore the regulator conducted 110 inspections and uncovered 105 violations. In general, the FSIS has planned 210 inspections for the current year. In the first six months of 2008, the supervisory body issued 1309 instructions, of which 261 resulted from complaints of insureds. Between January and June, the FSIS received over 6,500 grievances against insurance companies from customers, a ten times increase from the 2004 figure, LOMAKIN-ROUMYANTSEV pointed out. "Claims usually show us that either the market faces a fundamental problem or a concrete company does," explained the FSIS head. "For example, the ratio of grievances to one hundred compulsory MTPL contracts is currently 0.3%. When this figure reaches 1%, we understand that the problem needs to be investigated", he added.
by RP Newsline, 8.08.2008


EUROINS Insurance Group raises capital to EUR 122.1 million
The EUROINS Insurance Group increased its capital to EUR 122.1 million in return of cash injection in amount of EUR 26 million from Greek investment found GLOBAL Finance, the company said. As a result of transaction, Global FINANCE will control a 20% stake in Bulgarian insurer.
EIG also made changes in its management structure electing former CEO Mr. Kiril BOSHOV to become the new Chairman of the Board of Directors. Mrs. Zlatolina MUKOVA was elected to become the new CEO of EUROINS Insurance Group. The former Chairman of the Board of Directors Mr. Velislav HRISTOV will remain member of the Board of Directors.
by oleg.doronceanu@mxp.ro, 14.08.2008


OTP sold two subsidiaries in Bulgaria
Hungarian OTP Bank's subsidiaries have sold their stakes in Bulgarian insurers DSK Garancia and DSK Garancia Life to GROUPAMA International, OTP said in a statement.
The transactions are part of the closing of the sale of GARANCIA, the Hungarian insurance unit of OTP, to GROUPAMA, which is one of France's top insurance companies.
"Along with the closing procedure of the Garancia transaction, further transactions related to the insurance firms of OTP Group will follow in the coming months when the required supervisory approvals will be obtained", OTP said, without disclosing further details.
by oleg.doronceanu@mxp.ro, 11.08.2008


Insurance against natural disasters should be introduced in Ukraine, says president
Ukrainian President Viktor YUSCHENKO says an effective system of insurance against natural disasters should be introduced in Ukraine. The president said this to reporters at a press conference in the village of Yasinia, Zakarpattia region, according to INTERFAX.
At present, "Ukraine is cleaning up after natural disasters using funds from the state budget, as there are no other sources of financing", YUSCHENKO said.
Unlike in Europe, there is no system of insurance against natural disasters in Ukraine.
The president said that Ukraine is the last country in Europe in which the state undertakes such great expenses to help natural disaster victims. However, the state cannot stand aside when such a disaster happens, the president said.
He believes that Ukraine should introduce voluntary insurance of at least a part of property against natural disasters.
by daniela.ghetu@mxp.ro, 11.08.2008


TRANSSIB Re increases capital through additional share issue
TRANSSIBERIAN Reinsurance Corporation (TRANSSIB Re) has increased its authorized capital by EUR 1.64 million to EUR 5.09 million, the company informed on August 5.
During an extraordinary meeting on December 29, 2007, TRANSSIB Re's shareholders decided to increase the company's authorized capital through the additional issue of one million ordinary shares. The board approved this decision on January 11, 2008. The face value of shares (RUR 60 - EUR 1.64) was equal to their offering price. Additional shares were placed via closed subscription.
TRANSSIB Re was set up in 1992. Its regional network consists of five underwriting offices in Moscow, St. Petersburg, Krasnoyarsk, Nakhodka and Prague (Czech Republic). According to Russia's Federal Service for Insurance Supervision (FSIS), in the first quarter of 2008, TRANSSIB Re generated EUR 5.41 million in reinsurance premiums and paid out EUR 1.2 million in claims.
by RP Newsline, 8.08.2008


Ukrainian government to support exporters
Ministry of Economy of Ukraine has submitted a new amendment which aims to support Ukrainian exporters throw subvention of the insurance premiums and loans from the state budget funds, announced KOMMERSANT.
This mechanism of incentives from the Government operates in over 60 countries members of the World Trade Organization (WTO), including Russia and the EU countries, Central and Eastern Europe.
In this context, it follows the establishment of a state insurance company to ensure exports, for witch the Government will allocate EUR 7 million and other EUR 48.6 million for the insurance operations. According to officials' estimates, these amounts will cover insurance for 4% of the Ukrainian exports and will boost the growth rate with 3% annually (333.5 million euros). At the same time, authorities intend to facilitate credit access for exporters through state bank, which implies the establishment of reserves amounting EUR 13.8 million from the state budget.
However, experts believe that partial coverage by the state of the insurance premiums can be appreciated by WTO specialists as unfair practice. Also, private insurance companies could easily cover these risks, the situation in which establishment of a state-owned company is inefficient.
by andreea.ionete@mxp.ro, 12.08.2008

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 FINANCIAL NEWS

Romania, 4th in the EU in terms of annual industrial production growth
Romania is fourth in the European Union (EU) in June 2008, with an annual industrial production growth rate of 5.9 percent, following Poland (7.3 percent), Slovakia (6.3 percent), and Ireland (6.1 percent), according to data published on Wednesday by the EU's statistical office Eurostat.
The data for 21 of 27 member states shows that industrial production dropped 0.3 percent in the European Union and 0.5 percent in the EUR zone in the June 2007 - June 2008 period, with the sharpest drops registered in Spain (9 percent), Latvia (5.2 percent), and Estonia (4.7 percent).
By category, production of durable consumer goods (FMCG) dropped most significantly, by 3.7 percent in the EU and 5.3 percent in the EUR zone, followed by intermediary goods, 0.9 percent and 1.1 percent, respectively. Energy production also fell 0.3 percent in the EU, and 0.8 percent in the EUR zone, while the production of non-durable goods dropped 0.7 percent in EU member states and 0.6 percent in the EUR zone.
The only category of industrial production that saw an advance in June was capital goods, up 1.4 percent in both areas.
As concerns the whole of the European Union in the June 2007 - June 2008 period, industrial production rose in 12 member states and dropped in nine.
by Business Standard, 12.08.2008


Romania's central bank injects EUR 385 million into the banking market
Romania's National Bank (BNR) intervened on the currency market yesterday by injecting RON 1.37 billion (EUR 385 million), for the first time in one year. This is the first repurchase agreement (repo) operation in one year, necessary because of low market liquidity.
This operation means that BNR is purchasing assets eligible for trading from market participants, while sellers commit to buy back those assets at a certain moment and at a price set when the deal was closed.
Ten banks participated in the repo operations and the average interest for repurchase was 11.69 percent. "The banks needed liquidities, given that interest rates on the market are very high," according to a dealer of Banca Comerciala Romana (BCR), Narcis NOAGHEA, for NewsIn. The date of payment for these deals is 18 August 2008.
The last such operation was made in August 2007, when BNR placed RON 500 million (EUR140.2 million) in one-week maturity repo deals.
by Business Standard, 12.08.2008


BRD posts net earnings worth record-high EUR 140 million
BRD - Groupe Societe Generale (BRD-SocGen), the second-largest player on the local banking system, in terms of assets and network, posted EUR140.3 million in net earnings for the first half of 2008. This is the largest half-year profit ever registered by the bank, and is 23 percent higher than in H1 2007.
However, the profit was below market expectations. BRD's quotation declined as much as 1.5 percent on the Bucharest Stock Exchange (BVB), where the lender is listed. Analysts interviewed by Business Standard had estimated net earnings worth EUR 141-161 million for BRD. "The market reacted slightly to the bank's results. Otherwise, results are explained by an increase by only 21 percent of revenues from fees and higher expenses", CA IB Securities Analysis Department head, Adriana MARIN, told Business Standard.
"The first half of 2008 was marked by difficult market conditions and increasing competition. BRD adapted to this context with proper commercial operations and maintaining, and simultaneously with the implementation of strategic project related to optimizing information technology tools and developing distribution channels", the lender's President and General Manager, Patrick GELIN, explained.
Societe Generale's Romanian subsidiary registered assets worth EUR12 billion in the first half of the year, 12.93 percent higher than in H1 2007. The growth rate is five times higher than that of market leader, Banca Comerciala Romana (BCR), owned by Austrian ERSTE group.
by Business Standard, 11.08.2008


Industrial production drives annual growth by 4% in June
Industrial production increased in June by 4 percent compared to June 2007, due to a 5.1 percent advance in the processing segment, although the extractive and energy industries decreased by 3.1 percent and 2.3 percent, respectively.
According to data from the National Institute of Statistics (INS), industrial production rose by a mere 2.7 percent in May compared to May 2007.
The production of long-term consumer goods increased 10.9 percent in June, while that of fast-moving consumer goods (FMCG) advanced 9 percent. The production of capital goods increased 5.8 percent and that of intermediary goods by 1 percent. The energy production industry declined by 3.5 percent.
by NewsIn, 8.08.2008

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EDITORIAL | INTERVIEW | TOP PRESS | CEE & CIS | FINANCIAL NEWS | EVENTS
 EVENTS


5th ICAR - The International CAtastrophic Risks Forum
October 14th, 2008
Bucharest, Romania
Organizer: Media XPRIMM
Media Partner: PRIMM Magazine - Insurance&Pensions
Details: www.icarforum.ro


8th Yalta International Forum
September 15th-19th, 2008
Yalta, Ukraine
Organizer: The League of Insurance Organizations of Ukraine
Media Partner: PRIMM Magazine - Insurance&Pensions
Details: www.cbs.org.ua


Life Insurance Securitisation Conference
September 17th-18th, 2008
London, Great Britain
Organizer: JACOB FLEMING Conferences
Media Partner: PRIMM Magazine - Insurance&Pensions
Details: www.jacobfleming.com


10th Insurance & Reinsurance Conference Hydra
September 18th-20th, 2008
Spetses, Greece
Organizer: The Hellenic Association of Insurance Companies
Media Partner: PRIMM Magazine - Insurance&Pensions
Details: www.eaee.gr


"Joining Forces to Raise Your Game" - The Future of Bancassurance, Assurbanking & the Affinity Business
September 25th-26th, 2008
Prague, Czech Republic
Organizer: UNIGLOBAL Research
Media Partner: PRIMM Magazine - Insurance&Pensions
Details: www.uniglobalresearch.eu


IV International Conference "Development of Insurance Brokerage Markets in Eastern Europe and CIS"
October 6th-7th, 2008
Imperial Park Hotel & Spa*****, Moscow Region
Organizer: RUSSIAN Polis
Media Partner: Revista PRIMM - Asigurari&Pensii
Details: www.in-sure.ru


The Russian and CIS Reinsurance Forum
October 8th-10th, 2008
Zurich, switzerland
Organizer: C5
Media Partner: PRIMM Magazine - Insurance&Pensions
Details: www.c5-online.com


IV International Congress "World Views for LIFE INSURANCE in Eastern Europe, CIS and Asia"
November 13th-14th, 2008
Sheraton Hotel, Varsovia, Polonia
Organizer: RUSSIAN Polis
Media Partner: Revista PRIMM - Asigurari&Pensii
Details: www.in-sure.ru


Global Pension Funds & Alternative Investments
November 13th-14th 2008
Vienna, Austria
Organizer: UNIGLOBAL Research
Media Partner: PRIMM Magazine – Insurance&Pensions
Details: www.uniglobalresearch.eu


November Business Meetings of Reinsurers
November 27th-28th, 2008
Hotel President, Moscova
Organizer: ARIA – Asociatia Reasiguratorilor din Rusia
Media Partner: Revista PRIMM - Asigurari&Pensii
Details: www.nbm-moscow.ru

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ICAR FORUM 2008

Development of Insurance Brokerage Markets in Eastern Europe and CIS

World Views for LIFE INSURANCE in Eastern Europe, CIS and Asia
November Business Meetings of Reinsurers

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