Romania: EBRD supports insurance market's development
The EBRD is optimistic about the development of the Romanian and regional insurance market, after record-breaking results for 2021 from Bulgaria's Euroins Insurance Group (EIG), led by the strong performance of its largest entity, Euroins Romania Asigurare Reasigurare, the bank said in a press release.
EIG is one of the largest independent non-life insurance groups in central, eastern and south-eastern Europe. The EBRD took a minority stake in the group last year to support the development and growth of its Romanian unit, committing to invest EUR 30 million through a capital increase. urohold, the insurance group's parent company, committed to provide a further equity injection of EUR 12 million.
"The aim of the EBRD's investment in October 2021 was to support the stabilization of the insurance sector, while providing comfort to customers, regulators and suppliers", said Mark Davis, EBRD Regional Director for Romania and Bulgaria.
The latest figures confirm the value of the investment.
EIG's overall premium volume was up 50 per cent to EUR 700 million, net profit was EUR 40.4 million, and total consolidated assets rose 29 per cent to EUR 1.06 billion by the end of December. Double-digit growth rates recorded by EIG's units across main markets were led by subsidiaries in Romania and Bulgaria, which saw increases of 67 per cent and 15 per cent in gross written premium.
"The EBRD is very pleased with the progress made at EIG. We are working with ASF to develop new regulations for managing motor claims. Our goal is to help create a fairer system for all parties involved, including customers, workshops and insurance companies, while fostering the interest of larger global insurers and attracting capital to the sector," said Mark Davis, EBRD Regional Director for Romania and Bulgaria.
"With our presence, we hope the company will achieve broader and higher value insurance projects to go along with the improved financial position and results. We remain fully committed to helping EIG to become the largest independent insurance group in SEE by the end of 2025, with a broad portfolio of general and life insurance products and over 10 million clients," added Mark Davis.
The EBRD's participation continues to strengthen EIG's solvency position and support its growth in markets where both EIG and the EBRD have a strong focus. The Bank supports efforts to digitalize and to diversify products beyond mandatory motor insurance to policies covering health, accidents, fire and property.
The EBRD presence will also help EIG create value through enhanced corporate governance - including the appointment (subject to regulatory approvals) of EBRD nominee director, Prasun Singhal, who brings over 15 years of expertise in the insurance sector.
The EBRD is a major investor in both Romania and Bulgaria. To date, it has invested almost EUR 10 billion in Romania's economy through 488 projects and more than EUR 4.3 billion in 277 projects in Bulgaria.
Author: Daniela GHETU
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