|
|
 |
|
Viewing report
|
|
|
|
Greece Insurance Report Q1 2012
Business Monitor International, Nov 2011, Pages: 81
As of November 2011, the current situation and prospects of Greece's insurance sector continues, like most other aspects of the economy, to be overshadowed by the combined financial and political crisis. The leading local financial groups and multi-national insurers with operations in the country – such as Groupama and Eureko – have indicated that they will participate in the Private Sector Involvement (PSI, the ‘haircut' for private sector holders of Greek government bonds). However, it appears that most, if not all, of the insurers have all the capital that they need – or can acquire it fairly rapidly from major shareholders and other affiliates.
Given the gravity of Greece's current situation, it is difficult to make predictions about what shape the local insurance sector will be in five years time. One possible outcome is that there is substantial rationalisation, greater discipline in pricing, and wider usage of non-life products. Given the savage cuts being made to social security, it is also conceivable that life insurance will become far more important than it is today. However, these positive results would only come in the wake of a protracted period of turmoil.
The various results published by the non-life and the life companies have indicated that conditions have not been disastrous. Groupama Phoenix, for instance, managed to write life and health premiums in H111 that were 6% larger than those of H110. Eureko indicated that its Interamerican operation has continued to perform in a satisfactory manner. EFG Eurobank and ATE Insurance have noted that their life and non-life businesses, respectively, contracted by double-digit amounts: however premiums did not fall by a quarter – or worse. In part thanks to lower claims, in part thanks to substantial over-reserving in previous periods and in part thanks to a brutal approach to control of claims and other operating costs, the contraction in revenue has not flowed through to bottom lines. Groupama Phoenix's property & casualty combined ratio dropped from 91.1% in H110 to 85.7% in H111, thanks to lower claims losses. ATE Insurance managed to cut is staffing costs by a quarter.
Business Monitor International's Greece Insurance Report provides industry professionals and strategists, corporate analysts, insurance associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Greece's insurance industry.
|
|
|
|
