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

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