"Euroins Romania’s GWP grew by an annual 22% in 2016 to almost 200 million euro and it posted 6.5 million euro profit before tax. Our combined ratio value declined to 92% which is quite below the average level in the sector (100%)," Mihnea Tobescu said in an interview for the latest edition of the SEE TOP 100 ranking prepared by SeeNews.
"The reported positive results ensure a solid ground for further future growth that will provide coverage of the solvency and capital requirements in the next years," he added.
Following is the full text of the interview:
Q: How did you manage to maintain a leading position in Romania at a time when new rules and increased capital requirements put a pressure on the local players?
A: As you know, all rules, regulations and requirements are in the benefit of consumers and customers as well as the companies. All of the above mentioned were conditions for the improvement of our business and our portfolio of products, with direct effect on the increased quality of relationship with our beneficiaries. Euroins Romania managed to improve its position in the last years thanks to a mix of shareholders’ support, management skills, and insurance products savvy. I am fortunate to work shoulder to shoulder with the best team of managers in the insurance industry.
We invested a lot of time and effort into redesigning the products portfolio with a sharp eye on the risk categories and other criteria, which gave us an edge over the market.
Euroins Romania’s GWP grew by an annual 22% in 2016 to almost 200 million euro and it posted 6.5 million euro profit before tax. Our combined ratio value declined to 92% which is quite below the average level in the sector (100%).
Euroins Romania also turned out to be one of the most sufficiently reserved companies. Actually, last year was a turning point for the business of the whole group as EIG put up a remarkable performance on all of its markets. Profitability has been rising and the achieved solvency and capital ratios are in line with the regulatory requirements. The reported positive results ensure a solid ground for further future growth that will provide coverage of the solvency and capital requirements in the next years.
Q: What are your expectations and goals for the following period?
A: We are looking to a growing market on which Euroins Romania is acting in the best interest of its customers. Euroins Romania reported in the first quarter of 2017 a nearly 47% annual rise in GWP and is expected to further sustain a high growth rate driven by the strengthening economic growth. On a group level, we expect a total premium income of 350 million euro for the whole year. In the segment of motor insurance where we hold a high market share, we will pursue a consolidation strategy, while on the remaining segments – non-motor and life insurance, where the group’s presence is still being built, the focus will be on strengthening the group’s market position.
Q: Do you see any further consolidation taking place in Romania and on the other CSEE markets and does Euroins plan to enter new markets in the region?
A: Euroins Romania has recently acquired the non-life insurances portfolio of ATE Insurance Romania, a subsidiary of Piraeus Bank, the biggest bank in Greece. Acquisitions are part of EIG’s strategy. The group acquired businesses in the region in the past years and will continue to look for more opportunities on the markets where it is present as well as new ones in the region. The goal is to grow EIG as the leading independent insurance group in CSEE. Our plan is to further expand in these markets, both through organic growth and potential acquisitions, should an appropriate opportunity arise. They help us diversify and improve the quality of our insurance portfolio.
Q: How do you see the future of the insurance business in the light of the new and upcoming technological changes?
A: Digitalisation will be among the most important future elements of the industry. Euroins is digitalizing its business by introducing modern technology in its operations. The process has already started.
