AIG Life Asigurari Romania (AIG Life Insurance Romania) posted 24 million RON (6.8 million-euro) gross profit last year, an increase of 68% in RON against 2005.
"Last year, we recorded an almost 9 million-dollar profit, which places us as the third-largest insurance company on the market in terms of profit," stated Theodor Alexandrescu, general manager of AIG Life Romania.
The top two players in the insurance field in terms of profit were ING Asigurari de Viata (ING Life Insurance) and Allianz-Tiriac Asigurari (Allianz-Tiriac Insurance) which derived around 12 million euros and 11 million euros in gross profit respectively. The main factors behind the increase in AIG Life's profitability were the active management of the investment portfolio combined with the tight control of expenditures.
AIG Life underwrote gross premiums worth 140 million RON (40 million euros) last year, witnessing an increase of 33% against 2005.
"These financial results are generated by the increase in new sales, both in terms of the number of clients and in terms of the average premium per client. They are also prompted by the diversification of our distribution services, in particular direct and alternative distribution, as well as by our success in retaining a large percentage of our clients," said Alexandru.
The average annual premium paid by an AIG client is 500 euros, an increase of 23% against 2005. "This growth is prompted by an increase in our clients' incomes and by their accepting additional services offered by our agents," he added.
The life insurance company launched two new products this year - Renta Extra and Life Cover Plus.
Renta Extra is a product that accompanies unit-linked optional private pensions. The money paid for accumulation goes 100% to investments, with the main benefit being a life annuity, which provides added income for a
