In January-March 2025, insurers’ revenues and expenses decreased in annual terms by 3.9% and 0.7%, respectively. Profit before tax amounted to 43.7 million lei, which is 47% less compared to the same period last year, the National Bureau of Statistics reported.
The turnover of companies from insurance activity amounted to slightly more than one billion lei (98% of the last year’s indicator). The shortfall is primarily related to the gross collection of premiums in the segment of automobile insurance. All classes underwent a decrease: CASCO showed 91% of last year’s collections, MTPL – 79%.
“Now the insurance business is being restructured due to the transition to the online format of automobile insurance distribution. Accordingly, the proportions of intermediary fees and profitability of sales by classes of automobile insurance are changing. The share of auto insurance occupies the lion’s share in the portfolio of companies, affecting the turnover indicators most strongly,” believes Adrian Georgitsa, Deputy Vice Chairman of the NCFM.
Unlike auto insurance, outsider products at the beginning of the year show unexpected popularity. Thus, insurance against fire and other natural disasters showed a two-fold growth in the first quarter. Interest in life insurance has also increased (+2.5%).
The National Bureau of Statistics reports that insurance companies collected gross insurance premiums totaling 636.3 million lei in January-March 2025. The shortfall (quarter-on-quarter) amounted to about 5%. At the end of last year, insurers maintained the pace of gross premiums collection (+10%).
The annual volume of paid compensations and insurance indemnities remained within the acceptable values, slightly decreasing in classes of automobile insurance and increasing in classes of property and medical insurance. During the first three months, payments were made on insured events totaling 264,6 million lei.
