In the first semester of 2009 Aviva Romania recorded significant levels of performance, taking account of the tough economic climate.
In the first semester of 2009 Aviva Romania recorded significant levels of performance, taking account of the tough economic climate.
New sales:
- Taken as a whole, the level of new sales was in line with planned targets, taking account of the tough economic conditions; a drop in new sales was recorded compared with the first semester of last year (by 4 million RON)
- We achieved very good results in the mandatory private pensions sector, in terms of new sales, due both to random distribution and to contributions associated with accounts which had been empty until now – an APE of 7 million RON.
- The growth in the pensions sector offset the decline in sales in the Credit Life sector, in which we saw a quite considerable drop owing to the fall recorded in the property credit and personal needs loans markets – the recorded APE being 4 million RON (representing only 40% of the APE pertaining to the first semester of 2008).
- Unit-linked insurance products and voluntary pensions fell, and the recorded APE was 4 million RON (compared with 7 million RON in the same period of 2008) and 1 million RON respectively (compared with 3 million RON in 2008), against a backdrop of increased customer reticence regarding the capital market and the reduction in expenditure on allowances paid to employees in the corporate sector.
Gross underwritten premiums:
- The value of gross underwritten life insurance premiums increased by 10% from 46 million RON to 51 million RON.
- Revenue from pension funds rose to 0.2 million RON for Pillar 3 (compared with 0.1 million RON in the same period last year) and 1.4 million RON respectively for Pillar 2 (compared with 0.3 million RON in the same period last year).
- Revenue from investments generated very good results for Aviva Romania – a profit of 10 million RON (compared with the same period last year when there was zero profit).
Operational results:
- IFRS operating profit improved significantly from a loss of 13 million RON recorded in the first semester of 2008, to 6 million RON and we will continue to invest in Romania in order to generate value for our customers in the future.
- EEV operating profit was 14.8 million RON.
“In the first half of 2009 we faced up to our customers’ fears, a situation as normal as it possibly can be if we consider what has happened at the macro- and micro-economic level and we take into account their concerns with regard to their financial future and job insecurity.
"The Aviva group and Aviva Romania have successfully achieved notable levels of performance and have once again demonstrated financial stability on an international scale and a robust management policy,” stated Shah Rouf, CEO of Aviva Romania.
“It took several months for the economic crisis unleashed in developed countries to affect Romania. So we anticipate that the recovery, which can currently be observed on the developed markets of western Europe – if we look at the good financial results in the insurance sector and a rise in capital market indices – will reach us, albeit a few months behind. So customers in Romania have several months in hand in which they can invest in order to benefit from the growth which will follow. The second part of 2009 is the ideal time for financial planning and taking action in order to benefit from the subsequent periods of growth,” Shah Rouf concluded.
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The point of contact for further information:
Lavinia Pavel – Brand Communication Coordinator
Telephone: 0723 310 378
E-mail: lavinia.pavel@aviva.ro
Notes for editors:
About the Aviva group
Aviva is the oldest insurance group in the world and the largest in Great Britain, dating back to 1696.
Today, Aviva has 54,000 employees and 50 million customers in 28 countries across the world.
The group is the market leader for life insurance and pensions in Europe, leading on the majority of the markets in which it operates.
Aviva manages over £352 billion worth of funds*, putting Aviva in fifth place in the top flight of international insurance companies.
Aviva Romania
Aviva Romania includes three companies: Aviva Life Insurance, Aviva Management Company for a Private Pension Fund, Aviva Investors Romania (purchased in November 2007).
About Aviva Life Insurance and Aviva Management Company for a Private Pension Fund
Aviva began operating as a provider of life insurance in Romania in 2000, currently holding a portfolio of over 850,000 customers (of whom 800,000 come from the banking insurance sector) and managing funds of £27 million. In 2007 Aviva established a pensions company which manages the mandatory pensions fund Pensia Viva and which currently has a portfolio of over 300,000 customers.
About Aviva Investors Romania
Aviva Investors Romania currently administers €15 million in four mutual funds, each based around a different type of investment: Aviva Investors (AI) Intercapital (a shares fund), AI Capital Plus (a diversified fund), AI Orizont (a fixed-income – bonds – fund) and AI Tezaur (a monetary fund). Aviva Investors Romania also administers individual investment accounts.
Aviva Investors Romania has shown throughout the years that it is one of the most dynamic and innovative administrators in the market. The company launched the first commission-free sales fund on the Romanian market (AI Tezaur) and the first bonds fund in Romania (AI Orizont). Aviva Investors Romania is also proud to support the growing investment funds market in Romania.
* according to data recorded on 30 June 2009