March 23 (SeeNews) - The Vienna Insurance Group (VIG) said on Thursday its operations in Romania turned a pre-tax profit of 3.5 million euro ($3.7 million) in 2016, compared to a 46.4 million euro loss in 2015, due to strong premium growth, according to preliminary data.
Total gross written premiums of VIG's Romanian units surged by an annual 24.4% to 533.4 million euro in 2016, driven by increased average premiums and additional policies in motor third party liability (MTPL) insurance, the company said in a conference call presentation of its 2016 preliminary unaudited results posted on the corporate website.
Also, VIG said it expects subdued development until May 2017 given the newly introduced maximum tariffs in Romania. The country implemented maximum MTPL tariffs for passenger cars, buses, vans and trucks, trailers and motorcycles starting November.
VIG's premiums from motor third party liability insurance in Romania grew 44.6% to 231.9 million euro, while casco premiums rose 16.8% to 113.2 million euro and other property premiums grew 19.9% to 105.4 million euro.
Premiums from regular life insurance on the Romanian market edged up 0.4% to 42.5 million euro, while single life insurance fell 2% to 37.5 million euro. Health insurance premiums were up 2.6% on the year to 3 million euro in 2016.
The group's net combined ratio in Romania dropped to 101.1% in 2016 from 102.4% in 2015.
VIG also noted it has restated its 2015 financial results, shifting from a 5.6 million euro pre-tax profit announced last year to a 46.4 million euro loss in Romania.
In Romania VIG is represented by three insurance companies - Omniasig Non-life, Asirom, and BCR Life. In August, it agreed to acquire France-based AXA Group's life and savings insurance operations in Romania.
($=0.9267 euro)