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1Q 2012 PRELIMINARY RESULTS

1Q 2012 PRELIMINARY RESULTS

Growth written in quotation marks

After three years of decrease, the insurance market in Romania registered its first slight increase. But can we actually name it growth? Or did the decrease just stop? Are we facing a spectacular evolution?
Each first quarter was atypical, both in terms of hierarchies and market evolution. However, the first quarter always marked the evolution trend of the industry.
In an unfavorable economic context, without any other domains that could “offer a helping hand”, the growth in the first quarter only indicates that the market reached its decreasing potential. In short: the insurance market could not go any lower than 2011.
Did the market exit the recession? We will find out the answer to this question after the first there quarters of this year when, after analyzing the evolution of three consecutive fractions of 2012, we will be able to apply, or not, the definition of “the dynamics of three consecutive periods”.
Thus, the January-March period marks a growth that must not be turned into something spectacular. This is more likely a result influenced by the atypical positive evolution of a certain company on the market. In the absence of other variables, the first quarter in 2012 gives us a single scenario: the insurance market in Romania could end with underwritings exceeding EUR 1.9 billion.

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