The Unita general insurance company, a member of Vienna Insurance group, underwrote gross premiums worth 146.2 million RON (43.3m euros) in the first quarter of 2007, an increase of 92% on Q1 last year.
Unita's advance was around 2.5 times higher than the 37% growth rate registered by the overall general insurance market for the first three months of 2007.
"The significant increase in the volume of gross underwritten premiums in Q1 can be attributed to the restructuring process the entire company has been undergoing since April 2006, when the management changes took place," stated Iulian Dumitru, chairman and general manager with Unita.
Last year, the insurer transferred its life insurance portfolio to Omniasig Viata and took over non-agricultural insurance from Agras (the division specialising in agricultural insurance).
"The main factors that triggered increased sales were: the devising of a clear retail-oriented strategy based on productivity, the updating of rates, new sales network motivation and remuneration mechanisms, and a more efficient use of the distribution channels," explained Dumitru.
Through the growth witnessed in Q1, Unita has acquired an 8.2% share of the general insurers market and gained a top five position, according to company estimates.
The value of claims settled by Unita in the first quarter of 2007, amounted to 44.4 million RON (13 million euros), a decrease of 1% on the level registered last year.
For the remaining quarters of 2007, Unita plans to further endorse the multi-annual strategy it began in 2006.
"The main objectives are: a rising volume of gross underwritten premiums, retail-oriented sales, and a higher load of non-auto products," says Dumitru.
Unita has set another target for itself: increasing profitability across each insurance field, through monitoring distribution channels and improving the underwriting process.
In 2006, the insurer registered losses standing at 21.39 million RON (6 million euros), after having generated an income worth 283,641 RON (80,502 euros) in 2005 amid a high level of claims related to motor insurance, which affected most insurance companies operating on the market.
Unita's majority stakeholders are Omniasig, with a 55% stake, and the Vienna Insurance Group accounting for 44.9979%, with the remaining 0.0008% held by four individuals.
At the end of March 2007, the Vienna Insurance group held the leading position on the Romanian insurance market, after having underwritten gross premiums worth 106.2 million euros through the 4 domestic companies it owns: Omniasig, Unita, Omniasig Viata and Agras.
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