Romanian insurance market

The top 5 insurance groups generated around 71% of the premium volume in the overall market in the first three quarters of 2018. The two largest insurance groups generated around 38%.

Market growth in the 1ST TO 3RD Quarters of 2018 compared to the previous year

Romania – Market growth in the 1st to 3rd quarters of 2018 compared to the previous year (bar chart)

Source: Financial Supervisory Authority ASF

Premium volume in the Romanian insurance market grew 2.1% in the 1st to 3rd quarters of 2018 based on the local currency. The non-life sector was heavily influenced by changes in the motor market and grew 1.6%. Motor third party liability insurance, which represents around half of the non-life business, fell again by around 5.5%. This was the result of rate reductions in connection with legislative changes and introduction of reference rates in 2017. The number of policies, on the other hand, rose 8.0%. The decrease in motor third party liability insurance was compensated by gains in other lines of business in the non-life sector. The premium volume for motor own damage insurance, for example, rose 9.7%, while the fire and natural hazards line of business gained 5.1%.

Market shares of the major insurance groups

Romania – Market shares of the major insurance groups (ring chart)

Source: Financial Supervisory Authority ASF; as of 9M 2018

Life insurance premiums rose 4.0%, driven by a 10.8% increase in traditional life and annuity insurance, while unit-linked life insurance fell 16.9% following the high recorded in the previous year.

According to Axco Global Statistics, Romania had an insurance density of EUR 108 per capita in 2017. EUR 86 of this amount was for non-life insurance and EUR 22 for life insurance.

VIG companies in Romania

AXA Life, which was acquired in Romania in 2017, was successfully merged with BCR Life on 1 June 2018. Vienna Insurance Group is now represented in Romania by the non-life insurer Omniasig, composite insurer Asirom and life insurance company BCR Life.

VIG’s market share of 24.5% makes it the largest insurance group in Romania. It is the leader in non-life insurance and holds second place in the market for life insurance.

Financial performance indicators in the Romania segment

Premium development

Premiums by line of business

Romania – Premiums by line of business (ring chart)

Values for 2017 in parentheses

The Group companies in the Romania segment wrote EUR 515.3 million in premiums in 2018, representing an increase of 1.7% (2017: EUR 506.5 million).

The increase was primarily due to strong premium growth in other property and casualty and motor own damage insurance. Net earned premiums were EUR 323.5 million in 2018, or 13.9% below the previous year, primarily due to an increase in reinsurance cessions.

Expenses for claims and insurance benefits

The Romanian companies had expenses for claims and insurance benefits (less reinsurance) of EUR 222.3 million in 2018, or 10.6% less than in the previous year (2017: EUR 248.6 million). This change was due to an increase in reinsurance cessions.

Acquisition and administrative expenses

Vienna Insurance Group had acquisition and administrative expenses of EUR 108.5 million in the Romania segment in 2018 (2017: EUR 104.8 million). This is 3.5% more than compared to the previous year.

Result before taxes

A loss of EUR 73.9 million was recorded in the Romania segment in 2018 (2017: profit before taxes of EUR 6.2 million). This change was primarily the result of goodwill impairment of EUR 50.1 million in the 2nd quarter of 2018 and the formation of provisions for the ongoing Romanian Competition Council proceedings.

Combined Ratio

The combined ratio was 107.5% due to the effect of the reference rates on new production in the motor third party liability line of business (2017: 98.6%).

Vienna Insurance Group in the Romania segment

in EUR millions



∆ in %

∆ absolute

Premiums written





Motor own damage insurance (Casco)





Motor third party liability insurance





Other property and casualty insurance





Life insurance – regular premium





Life insurance – single premium





Health insurance





Result before taxes