The number of insurance companies authorised to operate in the Romanian market nearly doubled in January 2007, the main factor behind this significant increase being Romania's entry into the European Union.
The number of insurance companies authorised to operate in the Romanian market nearly doubled in January 2007, the main factor behind this significant increase being Romania's entry into the European Union.
Thus, as the end of last year 41 companies had been registered and by the end of January 2007 this number had reached 75.
The opportunities for growth on the pensions and life insurance market are clear. Research carried out by Aviva Life Insurance on the Europe-wide life insurance market shows that:
- 27% of east Europeans and 44% of western Europeans have a pension plan, compared with only 10% of Romanians.
- 20% of east Europeans and 48% of western Europeans have life insurance with some level of payment protection, compared with only 13% of Romanians.
The insurance market in Romania has doubled in size in the last four years, and projections that are being made anticipate a growth in the market of up to four times its current size over the next five to 10 years (political and economic factors of course have a vital role in defining this level of growth).
"The objective of the Aviva company is to become the number one in terms of new business (new sales) in Romania, and the Aviva group is prepared to invest however much is needed in order to meet this objective. To put this into context, it should be pointed out that the life insurance market in Romania is currently valued at €300 million, while income generated by the Aviva group at the end of 2006 reached 50 billion euros," according to Shah Rouf, CEO Aviva Life Insurance.
Analysis of annual reports by the major international insurance companies confirms the leading position of the Aviva company European pensions and life insurance market. At the end of 2006, Aviva was the largest provider of pensions and life insurance policies to Europe. The study therefore validates the dominant position of the company in both sectors: life insurance and pensions.
"Pensions and long-term savings plans are based on the confidence that clients have in the company that's providing them. I am delighted to see how many Europeans have confidence in Aviva," added Shah Rouf.
Richard Harvey, group chief executive of the Aviva group, said: "In Great Britain, our clear strategy and the growing confidence that we enjoy amongst consumers has provided us with an excellent result and a greater market share. Our European portfolio in terms of life and pensions products has recorded growth above the percentage rate recorded on the market as a whole, a significant contribution to this coming from our operations in Central and Eastern Europe. "
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For further information:
Giliola Ignat
Telephone: 203 83 73
Notes to editors:
According to the report published by the company - results in terms of new sales - published in the first quarter of 2007. APE represents the company's standard measure for volume of business generated in 100% regulated premiums and 10% single premiums. The average exchange rate for December was used for the equivalents in euros for pounds sterling and dollars.
L&G, Fortis and Aegon reported results obtained from smaller operations, integrated into the framework of international results, so a prudent margin of 50% has been used, which is probably advantageous to European operations in general, but this has no effect on the market position given above.
About Aviva
Aviva's portfolio is made up of long-term savings products, private pensions, administration of investment funds and general insurance policies. The group administers €434 billion worth of assets, representing the money of over 35 million clients worldwide.*
Aviva Life Insurance officially started trading on 11 October 2000, and the company currently boasts a sales team of over 1,000 consultants and managers and a network made up of 19 agencies and 4 development centres.
* As at 31st December 2006