EximAsig Romania, first year with profits after nine months

Bucharest, November 04, 2015 – The Insurance – Reinsurance company Exim Romania (EximAsig), having as main shareholder EximBank has registered profits of almost 600.000 Lei, after the first nine months of this year, after reporting a loss of 816.000 Lei for the similar period last year. The result comes as a direct effect of implementing operational restructuring measures and reducing risks related to the re-insurance subscribed policies.

”EximAsig is now in the first year when it reports profits after the first three semesters. The company is now going through a vast process of business model quality optimization, being concerned with increasing the efficiency of the general framework of its activity and resource use and this is why we consider that solid premises exist for the company to register profits at the end of the year as well.”, said Traian Halalai, Executive President of EximBank.

At the end of September 2015, Exim Romania has reported subscribed gross premiums of 12.7 Million Lei, the solvency grade of the company – the ratio between the available solvency margin and the maximum between the minimal solvency margin and the safety fund– reached 1.09. According to the official data, for the general insurance category the average solvency level reached 0.54 at the end of the first semester 2015, only 8 out of the 28 general insurers reporting a solvency level higher than 1.5 and 13 companies were ranking between 1.05 and 1.5.

After the first three semesters of the year, Exim Romania had an available solvency margin of 17.8 Million Lei and the liquidity factor was 1.52.

At present, the company is implementing an increase of the registered capital by 20 Million Lei, following the recommendations of the supervising authority in the field, issued after the Balance Sheet Review (BSR) exercise for the whole insurance market.

The registered capital increase will be realized as per the decision of the General Shareholders Meeting on October 12th, 2015, by firstly diminishing the registered capital by decreasing the nominal share value from 10 Lei to 4 Lei (accounting value), the only legal solution that allows the compliance with the shareholders rights. This operation will be finalized at the end of the first semester of 2016.

”EximAsig maintains its strategic objectives of offering efficient financial products allowing companies to protect their patrimony and also offering the consultancy services that base the building of adequate financial protection plans for each company. All the prudential indicators of EximAsig are above minimal admitted limits and continues to implement the agreed measures in order to reach solid solutions in terms of solvency , as per the communication with the supervising authority and, along with the increase of the share capital, the company will register an exceeding in capital as per SOLVENCY I ruling and will be significantly prepared for the new SOLVENCY II legal framework that will be in place starting January 2016”, added Traian Halalai.

The Insurance – Reinsurance company Exim Romania specializes in covering financial risks both for export operations and internal commercial transactions.

The company has been authorized in August 2010 for insuring credits and guarantees but during 2011 Exim Romania extended its scope of work by obtaining the license for another six insurance classes: fire and natural calamities insurance, properties damages, third party indemnity, accidents insurance, insurance for goods in transit and insurance for financial losses.

A year later, in order to be able to offer to its clients full coverage without risks segmentation on their behalf Exim Romania extended again its activity with another two classes of insurance: insurances for aerial means of transportation and third party indemnity for aerial means of transportation.

EximAsig has a 30 products portfolio related to the above mentioned classes targeted at the companies involved in commercial activities with local and foreign partners in constructions, goods and industrial production, air transportation, marine transportation, services, export and IT.

EximAsig Romania Has Extended its Activity with 2 New Insurance Classes

Bucharest, June 20th, 2012 – The Exim Romania (EximAsig Romania) Insurance-Reinsurance Company, whose majority shareholder is EximBank, has received from the part of the Insurance Surveillance Commission (CSA) the licence for the operation of two new insurance classes.

Beginning from the 6th of June 2012, the Exim Romania Insurance-Reinsurance Company can subscribe risks from the following insurance classes:

– Insurances for air transportation means (also including catastrophic nature risks);
– Civil liability insurances for air transportation means.

“The licence for the subscription of risks from the air transportation means is subscribed to the strategic vision to continue the company development. Until at present, we have succeeded in imposing ourselves on the guarantee insurance market, and due to the extension of subscription licences of last year, we have increased our portfolio with big-size customers from the field of civil and industrial constructions, of oil industry, retail and port operators”, declared Radu Frincu, chairman of the Company directorate.

Initially licensed for credit and guarantee insurances, the Exim Romania Insurance-Reinsurance Company reached, within less than 2 years from the start of its activity, to be licensed for the operation of 10 insurance classes and to hold in its portfolio over 30 products afferent to these, among which the insurances of goods, equipments and facilities, insurances of civil and professional liability, CARGO, and, of course, insurances of credits and insurances of guarantees (for the participation in bids, for the good performance of the contract or for maintenance) etc.

The company recorded as at 31.12.2011 a volume of subscribed gross premiums of 8,484,688 lei and a market share of 5.67% on the segment of guarantee insurances.
“The insurances of air transportation means represent a specialized type of business, that is why this our most recent action wants to be the signal of a solid company, with strong international partners on the reinsurance part, that will also approach this niche segment in order to earn a portfolio” added Radu Frincu.
The products of EximAsig Romania are addressed to the companies that operate in the fields of goods and industrial ones, road, naval, air transports, service suppliers, construction, exporters and to those in the IT industry.

EximAsig Supports the National Association of Romanian Insurance Brokerage and Consultancy Companies (UNSICAR)

EximAsig Romania joins UNSICAR by the support of the most important annual event organized by this latter, the “National Conference of Insurance Brokers”, the seventh edition. The event shall take place on March the 21st and, on this occasion, EximAsig Romania wishes to express its appreciation for the efforts made by the insurance brokers for the development of the specialized market and to confirm once again the close collaboration that they have.

Within a short time from the beginning of its activity, EximAsig concluded brokerage contracts with 40 insurance brokers, specialized in the brokerage of financial risk insurance products, with a vast experience in the field and with a wide portfolio of customers.

The products offered by EximAsig Romania cover a wide range of risks, from financial risk insurances, such as guarantee insurances (for the participation in bids, for good performance, for maintenance, for payment in advance) and the commercial risk insurances, up to the insurances of goods, of civil liability, CARGO or accidents.

EximAsig Romania Subscribed Premiums of Over 8 million Lei in 2011

The Exim Romania (EximAsig Romania) Insurance-Reinsurance Company, whose majority shareholder is EximBank, recorded in 2011, according to the audited data, a volume of subscribed gross premiums of 8,484,688 lei (approximately 2 million Euros), compared to the year 2010, when it subscribed 429,605 lei. Also, the company reported on the 31st of December 2011 a solvency degree of 22.14, and the ratio between the available solvency margin and the safety fund was of 1.35.

Licensed in August 2010 for the operation of credit and guarantee insurances, the company extended its activity during the year 2011 by obtaining the licence to operate other 6 insurance classes, namely: fire and natural calamity insurances, insurances for property damages, civil liability insurances, accident insurances, insurances of goods in transit (CARGO) and insurances of financial losses.

Thus, at the end of 2011, the guarantee insurances held the highest weight in the total portfolio, respectively 70%, followed by the insurances of goods by 14% and the insurances for credits by 13%. More moderate percentages belonged to civil liability insurances (2%) and to CARGO insurances (1.5%).

The market share, on the segment of guarantee insurances, was of 5.67%, compared to 0.59% in 2010, EximAsig România occupying the third place in the standings of the insurance companies that operate on the guarantee insurance market.

“The positive evolution that EximAsig Romania recorded shows us that there are several customers for our products, that understand the insurance benefits and for which we will continue to supply high quality insurance services. Our objective for the immediately next period is represented by the consolidation of the position we have earned and the development of the product portfolio that we offer by creating insurance packages that could be used for the purpose of a complete protection” said Radu Frîncu, the chairman of EximAsig Romania Directorate.

EximAsig Romania is a company specialized in the insurance of financial risks and of the other types of risks complementary to these (goods, liabilities, CARGO, accidents, a.s.o.) whose purpose is represented by the protection of the Romanian business environment, both for the export operations, and for the domestic commercial operations. The company products are addressed to the companies that operate in the fields of production of goods, transports, service supplies, constructions, exporters and for those in the IT industry.

EximAsig Romania has expanded its activity with 6 new insurance classes

Exim Romania Insurance Reinsurance Company (EximAsig Romania), whose majority shareholder is Eximbank has received from the Insurance Supervisory Commission (CSA) approval for the use of six new classes.

Thus, EximAsig Romania may subscribe risks in the following insurance classes:

– Accident and illness insurance (including accidents and occupational diseases);
– Insurance for goods in transit;
– Fire and natural calamities insurance;
– Other property insurance;
– General liability insurance;
– Insurance against financial losses.

Previously, the company was offering credit and guarantees insurance only.

“Extending the insurances classes is a natural step in the development of the company and a consequence of the signals received from our customers. Now we can offer products with complete coverage, no longer having them to segment their risks. In this way, we help the exporters who will be insured, besides for the risk of default on external, as before, also for the transported goods. Also, a client in the constructions field, participating in an auction, may conclude not only the guarantee of participation in auctions insurance, but also an “all risks” type insurance for construction and builder liability”, said Radu Frincu, C.E.O.

Exim Romania Insurance Reinsurance Company’s products are designed for companies operating in the production of goods, transport, provision of services, construction, the IT industry, as well as exporting firms.

Guarantee Insurance for the Participation in Bids Helps Avoiding Cash Flow Blockages

The insurance guarantee for the participation in bids allows its owner a greater ease for its liquidities by the fact that the well known classic cash collateral is replaced by the insurance policy issued by EximAsig Romania.

The policy certifies the fact that, in case the Insured Person, as the Tenderer within the bid, withdraws its tender during its validity period or wins the bid, but it does not sign the contract within the provided term or does not establish the guarantees for the contract execution within the provided term or submits a challenge to CNSC and it is rejected, EximAsig Romania will make the payment of a compensation to the bid beneficiary. Most of the times, the Beneficiary is a public authority, organizing the bid.

The guarantee insurance for the participation in bids from EximAsig Romania is recognized by the public authorities as a valid guarantee instrument, accepted in the tender books for the award of public procurement contracts.

Most of the times, the companies that use such an insurance policy operate in the field of road and highway constructions, of civil and industrial constructions, of hydrotechnical constructions, in consultancy, management, commerce, transport.

Exim Romania Insurance & Reinsurance Company (CARE) officially enters the insurance market

Exim Romania Insurance & Reinsurance Company (CARE), whose majority shareholder is EximBank has received from the ISC (Insurance Supervisory Commission) the approval to operate as a company specializing in short-term trade credit insurance and guarantees CARE has a registered capital of 29.2 million lei and will provide insurance and reinsurance of short-term commercial loans (risk class XIV. Credit insurance) as well as bond insurance (risk class XV).

“The new insurance company will provide tools that will allow Romanian companies, especially exporters and SMEs, to more effectively manage business credit, which will lead to increasing their competitiveness. For the first year of operation of CARE Romania we estimate a two million lei volume of gross written premiums”, said Ionut Costea, president of EximBank. The establishment of CARE Romania was determined by the European Commission’s recommendations which prohibit state support of export credit insurance against short-term “market risk”. However, the Commission believes that owning a subsidiary entities is in accordance with EU regulations.

Eximbank currently has a portfolio of insurance products that will continue to be provided after the establishment of CARE Romania. Therefore, the bank offers to its customers products like Insurance against risk of non-payment on the foreign market – providing safety collecting 80% of export value, Insurance of the Romanian capital investments abroad – which guarantees the recovery of up to 90% of the project or Insurance policy that protect against adverse movements in export revenues of the exchange rate.

“In 2009, Eximbank has earned insurance premiums of over two million lei, which means an increase of 1.6 times the amount of premiums collected in the previous year. The bank’s exposure on the insurance segment increased in the first half of this year over 220% from late last year” said Ionut Costea, president of EximBank.

EximBank is a specialized institution whose portfolio of products is focused on three main directions – financing, guarantee and insurance, allowing to support the activity and development of exporters, SMEs, as well as companies who conduct projects in priority development areas of the economy, especially those that contribute to the absorption of EU funds.

The companies interested in EximBank’s products can directly address the Bank’s branches in Bucharest, Bacau, Brasov, Constanta, Cluj, Craiova, Timisoara, Buzau, Oradea, Deva and Iasi. Also, traders can obtain information about products and related documentation through the www.eximbank.ro site or can get details by writing to the address informatii@eximbank.ro

Carrier liabilities Insurance

What is the object of the insurance?

This insurance covers the Insured’s liability for material loss to third parties, during the road transport contracts, as a result of finalizing the liquidation procedures of the transport company.

Who is the Insured?

The companies which make national and international road transports.

What is the coverage?

The policy covers the company’s exposure according to the laws in force.

 What is the insurance period?

Most of the times, the carrier liabilities insurance is signed for 12 months.

What are the costs of the insurance policy?

The insurance premium is calculated according to the number of vehicles, equity of the company, its experience and the insured period.

Advance Payment Bond

What is the object of the insurance?

The advance payment bond covers the payment of an indemnity in favour of the beneficiary, if the insured does not fulfill his payment obligations according to the contract, meaning revolving the amount received in advance, in time and subject to the stated conditions.

Who can be the Insured?

The advance payment bond may be used by production companies, equipment suppliers, outsourcers, constructors.

 What is the insured percent?

EximAsig covers a maximum 30% of the contract’s value.

What is the insurance period?

The advance payment bond can be signed for an advance recovery period as stated in the contract, but never exceeding the execution date of the contract.

What are the costs of the insurance policy?

The insurance premium is established based on the contract value, the guarantee value, the valability period of the insurance, the requests of the beneficiary, as mentioned in the contract, the experience of the contractor, the value and nature of the collaterals put at our disposal by the insured.

Maintenance Bond

What is the object of the Insurance?

Paying an indemnity in case of deficiencies and technical errors which may appear after finalyzing the project, but within its guarantee period.

Who can be the Insured?

The maintenance bond can be used by construction companies, production companies, service companies, industrial equipment suppliers.

What is the insured percent?

Usually, the insurance covers maximum 10% of the contract’s value.

What is the insurance period?

The maintenance bond can be signed for 24 months. As an exception, the insurance period can be larger, subject to the specified project.

What are the costs of the insurance policy?

The insurance premium is established based on the contract value, the guarantee value, the valability period of the insurance, the requests of the beneficiary, as mentioned in the contract, the experience of the contractor, the value and nature of the collaterals put at our disposal by the insured.