transl. 3. raport anual asirom 09

8/13/2019 Transl. 3. Raport Anual Asirom 09

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THE ANNUAL REPORT ON 2009 - S.C. Asigurarea Romneasc - ASIROM VIENNAINSURANCE GROUP S.A.

The Annual Report according to the: Order of the President of the Insurance SupervisoryCommission (CSA) no. 113.119/2006 for putting into application of Norms concerning theminimum information that have to be published annually by the insurers.

General overview

Denomination and legal status: S.C. Asigurarea Romneasc ASIROM VIENNAINSURANCE GROUP S.A.

The company was founded starting with 1stof January 1991, by the Government Decisionno.1279/1990 and is carrying out the activity of insurance and re-insurance on the groundsof Memorandum of Association, of Law no. 31/1990 - republished, concerning the tradingcompanies, with subsequent modifications and completions, of Law no. 136/1995 regardingthe insurances and reinsurances from Romania, with subsequent modifications and

completions, of Law no. 32/2000 concerning the insurances companies and supervising ofinsurances, with subsequent modifications and completions.

Number of registration at Trade Registers Office: J40/304/1991

The company was authorizedby the Insurance Supervisory Commission through theDecision no.16 from 07th November 2001. ASIROM is registered within the InsurersRegisterunder number RA-023/2003.

The address of the headquarter is no. 31-33, Bulevardul Carol I, district 2, code 020912,Bucharest, Romania.

Telephone: 004.021.601.1099; facsimile: 004.021.601.1288, 004.021.601.1289

Structure of shareholders at 31st of December 2009:

VIENNA INSURANCE GROUP Wiener Stadtische Versicherung A.G. . 85.9124%

Other legal persons .................................................... 13.4860 %

Natural persons .......................................................0.6016 %

The company is managed by a dualist system:

The dualist system of the company administration/management was assured during2009 by:

A. The SupervisoryBoard, composed of:

1) Peter Franz Hfinger - President2) Martin Simhandl - Vice- President


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3) Nicolae Iliu - Member4) Erich Leiss - Member5) Judit Havasi - Member6) Daniela Creu - Member7) Gerhard Lahner - Member

Since 29thof April 2009, the structure of SupervisoryBoard has changed:

1) Peter Franz Hfinger - President

2) Martin Simhandl - Vice- President3) Nicolae Iliu - Member4) Kurt Ebner - Member5) Michael Schlgl - Member6) Daniela Creu - Member7) Gerhard Lahner - Member

B. The Managing Board of the company with the following structure:

1) Boris Johannes Schneider - President and General Director2) Mariana Diaconescu - Vice -President and Deputy General

Director

3) Daniela Meghea - Member and Executive Director4) Ion Brtulescu - Member and Executive Director5) Martin Hashka - Member and Executive Director

In present, ASIROM is authorized by the Insurances Supervisory Commission to practicethe follwoing clases of insurances:

General Insurances:

a) insurances of accidents and illness;b) insurances of health;c) insurances of terrestrial means of transport, inclusively railways ;d) insurances of air means of transport;e) insurances of maritime means of transport (sea, river, lake, navigable canals)f) insurances of goods in transit, inclusively transported merchandise, luggages

and any other assets;g) insurances of fire and other natural calamities;h) insurances of damages brought to properties;i) Motor Third Party liability (MTPL and Green Card);j) insurances of civil liability for the air means of transport;k) insurances of civil liability for maritime means of transport;l) insurances of civil general liability;m) insurances of credits;n) insurances of guarantees.

As regards the Life Insurances, ASIROMoffers a wide range of products, annuities andsupplementary life insurances.

Deductibility that is applied to the insurances contracts is regulated through the Code of

Fiscal Procedure, such as:

a) at the calculation of the tax on profit, there are deductible the expenses with the

insurances premiums, which concern the assets of the tax payer, that are


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connected to the activity object or which are performed into account of the

policies that constitutes guarantees related to the loans engaged for the purpose

of the business conduct (banking credits, leasing, etc.)

b) limited deductibility for the expenses with the insurance premiums, made by the

employers for the voluntary health insurances, within the limit of 200 Euro/

employee annually;

c) above-mentioned provisions are applicable, also for establishing of the taxable

income from the independent activities (in this case, being also, deductible the

expenses with the insurance premiums for the professional risks coverage);

d) insurance compensations and indemnities are not taxable incomes;

e) insurance operations (inclusively the insurance premiums) are exempted from

VAT.

10. The insurance and reinsurance activity performed by ASIROM during the 2009

The activity of insurance focused mainly on the increase of profitability, the

improvement of the insurance conditions, of inner regulations and of the system for

evidencing and administrating of insurances portfolio, its consolidation, elaboration of new

insurance products and permanent adjustment to the legislative requirements from

insurances domain, in accordance with the norms issues by the Insurances Supervisory

Commission, also with the requirements of the European Union.

10.1. Insurances of life

The underwriting gross premiums summarized 88.97 mil.RON and were made within

life classical insurances and annuities. (insurances that are not connected to the

investments funds)

10.2. General Insurances

The underwriting gross premiums summarized 556.9 mil.RON, the main percentage

being made of vehicles insurances: 79% of the total of underwritings on the general

insurances, followed by the insurances against fires and other calamities.(13%)

During 2009, the following products were revised/ elaborated:

facultative insurance of dwellings and of goods from these dwellings Rezident;

insurance against fire and against other calamities of buildings and of other

constructions, also of their contents Phoenix;

insurance of equipment for constructions and other special installations;


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insurance of managerial liability of the administrators and directors D&O ;

insurance of goods during the transport Cargo ;

third party liability for doctors, pharmacists and other persons from the health

care Malpraxis;

insurance of damages and theft for the vehicles Casco.

10.3 Activity of sales and marketing

Divisions of Sales and Marketing have pursued the continuous diversification of

ASIROM in conditions of profitability, offering to the clients a flexibile system of contracting,

differentiate products of insurance according to specific needs and to individual risk profile.

Structure of distribution channels for non-life insurances has evolved in the

profitability direction, respectively it increased the % of non-commissioned insurances

(from 4% in 2008, to 6% in 2009) and decreased the % of insurances sold by our ownagents, employees (from 19% in 2008 to 18% in 2009).

The main sale force remained the

one composed of natural persons (having

approx. 49% of sales), followed by brokers,

having approx. 20% of sales.

Distribution of the life insurances

was performed, mainly by the direct sales

force (agents as natural persons and

employees).

Segment of corporate clients has gained approx. 5% as share quota of ASIROM total

portfolio evolving from 56% in 2008 to 61% in 2009. The most significant evolution was

registered at RCA, where the corporate segment increased in 2009 by 10%, in terms of

underwriting gross premiums compared to 2008, meanwhile the retail segment registered a

decrease by approx. 28%.

The alternative sales channels registered an average increase of approx. 62%.

Subscriptions from the public acquisitions procedures, selections of offers and direct

negotiations, during 2009, has recorded a 57% increase compared to 2008, while the

insurance protocols and the insurance conventions have brought, stimulated, also by the


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new positioning of ASIROM, as a part of a strong international group of insurances, an

increase of approximately 64%.

The profitability of branches has been significantly improved, the combined ratio

decreasing by about 7.7 percentage points compared to 2008.


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Another strategic objective achieved by the Alternative Sales Division has been the

development of a new distribution channel ASIROM franchise. Thus, ASIROM a initiated

in 2009, the collaboration with the first eight francise partners, the total volume of

subscriptions exceeding 1mil. EURO, the relationship registering a gross profitability of

approx. 25 %.

Among the activities performed by the Marketing and PR Divisions, the mostsignificant one was the initiation of the Culture Change Program, which aimed to stimulate

a new mentality of the ASIROM team members, oriented towards profit and

communication. Also, various campaigns have helped sales, especially RCA, by means of

advertising .

Deeply oriented towards the exemplary customer service, the Division organized

events and actions, through which the main assets of the company were advertised: high

demands, integrity, total commitment to the clients requirements and expectations. The

message for the public was that ASIROM VIENNA INSURANCE GROUP is the steadfast

friend of Romanians.

The internal communication was achieved mainly thorugh the newsletter, which was

upgraded from ASIROM in the insurance world to ASIROM NEWS.

In the activity of reinsurance, ASIROM VIG has collaborated, mainly with the

followings re-insurers: VIG Re Prague, Scor Re (Germania), Swiss Re (Germania),

Gen Re (Austria), Hannover Re (Germany), Munich Re (Germany), Sindicate Lloyds

(Great Britain) that participated to the S.C. ASIROM S.A. reinsurance contracts also with

brokers: Willis Re (Great Britain), RFIB (Great Britain). Both, the above-mentioned re-

insurers and brokers are the main companies of profile in this domain, in the world, with a

high level of financial security, certified by the international rating agencies (Standard &

Poors, AM Best etc.). Also, in 2009 ASIROM VIG intensified the cooperation on the

reinsurance line with the members companies in Vienna Insurance Group, by entry in the

group protection as NatCat XL (against risks of disaster) and MTPL XL (for Motor Third

Party Liability and Green Card), applying the rules of VIG concerning the re-insurers bonity

and the common position on the events in the reinsurances market, etc.

10.3.1 Activity of fronting

During 2009, S.C. ASIROM S.A. has continued and developed the cooperation

with international insurance groups Zurich Financial Services (Switzerland), Royal &

SunAlliance (England), International Networking of Insurance (INI), that comprises

companies of large international prestige, such as Travellers USA, Victoria Versicherung


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Germany, Amlin BeNeLux, Gothaer Germany, etc). On the basis of the cooperation

contracts, S.C. ASIROM VIG has issued local policies of fronting type, for the companies

clients as members of these groups, policies that were partially ceded, in optional

reinsurance facultative. Most of these customers are large industrial groups and/or

international trading companies, such as: Nestle, Siemens, Bayer, Merck, Sandoz, Aker,

Heidelberg, Dr.Oetker, Ericsson, Whirlpool, EON Gaz, Selgros, Ford, Peugeot, Eurocopter,

Mega Image, LG Electronics, Agrana, Baumax, etc.

Number of territorial units was, at the end of 2009 - 191, of which: 45 Branches,Sucursale, 85 de Representative Officesand 61 Agencies and Working Points (in 172towns, locations from Romania).

In 2009, within ASIROM, an average number of 1,943 employees (inclusively at theheadquarter) had performed their activity, of which, a number of 972 employees(insurance inspectors) had tasks for sales, and 200 employees (claims inspectors)has tasks to ascertain and to solve the claim files.

NETWORK OF ASIROM BRANCHES

1 ASIROM ALBA ALBA IULIA Branchstr. Piaa Iuliu Maniu nr. 13, ALBAIULIA

2 ASIROM ARAD ARAD Branch str. N. Grigorescu nr. 1 - 3, ARAD

3ASIROMARGE PITETI Branch str. Smeurei nr. 43, PITESTI

4ASIROMBACU BACU Branch str. 9 Mai nr. 25, BACAU

5 ASIROM BIHOR Branch ORADEA str. tefan Zweig nr. 5, ORADEA

6

ASIROMBISTRIANSUD

BISTRIA NSUDBranch

str. G-ral G. Blan nr. 56,BISTRITA NASAUD

7ASIROMBOTOANI BOTOANI Branch

str. Octav Bncil nr. 33,BOTOSANI

8

ASIROM

BRAOV BRAOV Branch

Bd. M. Koglnicenu nr. 11,

BRASOV9

ASIROMBRILA BRILA Branch

str. Calea Clrasilor nr. 46,BRAILA

10ASIROMBUZU BUZU Branch

Bd. N. Blcescu, bloc Camelia,BUZAU

11

ASIROMCARASEVERIN RESIA Branch

P-a 1 Decembrie 1918, bl. 4,RESITA

12ASIROMCLRAAND CLRASI Branch str. Bucureti nr. 183, CALARASI


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13 ASIROM CLUJ CLUJ Branchstr. Clinicilor nr. 20 - 22, CLUJNAPOCA

14ASIROMCONSTANA CONSTANA Branch

Bd. Tomis nr. 142, bl. TD 2A,CONSTANTA

15ASIROMCOVASNA

SF. GHEORGHEBranch

str. Godri Ferencz nr. 2, SF.GHEORGHE

16ASIROMDMBOVIA TRGOVITE Branch

str. Libertii, bl. B1,TARGOVISTE

17 ASIROM DOLJ CRAIOVA Branch str. Madona Dudu, bl 8, CRAIOVA

18ASIROMGALAI GALAI Branch

str. Domneascnr. 40, bl. 5 U. 2,GALAI

19ASIROMGIURGIU GIURGIU Branch

str. Vlad epe, bl. MUV 3,GIURGIU

20 ASIROM GORJ TARGU JIU Branchstr. Ecaterina Teodoroiu, bl. 6parter, TARGU JIU

21ASIROMHARGHITA

MIERCUREA CIUCBranch

Str. Koussthlajos nr. 17 A (fostaFlorilor), MIERCUREA CIUC

22ASIROMHUNEDOARA DEVA Branch str. Ion Creangnr. 21, DEVA

23 ASIROMIALOMIA SLOBOZIA Branch B-dul Chimiei, bl. D3 parter,SLOBOZIA

24 ASIROM IAAND IASI BranchB-dul tefan cel Mare bl. B2 - C3,IAAND

25ASIROMMARAMURE Baia Mare Branch str. Culturii nr. 9, BAIA MARE

26ASIROMMEHEDINI

TURNU SEVERINBranch

str. Al. Brccil bl. B2, TURNUSEVERIN

27ASIROMMURE

Branch TARGUMURE

Piaa Teatrului nr. 4, TARGUMURE

28ASIROMNEAM

PIATRA NEAMBranch Bd. Traian nr. 6, PIATRA NEAM

29 ASIROM OLT SLATINA Branchstr. A.I. Cuza nr. 9, Bl. C.A.M. 1,SLATINA

30ASIROMPRAHOVA PLOIETI Branch

str. Cantacuzino nr. 192, bl. A1,PLOIETI

31ASIROM SATUMARE SATU MARE Branch

str. Transilvania nr. 3 - 5, SATUMARE

32 ASIROM SLAJ ZALU Branch str. Unirii nr. 16, ZALU

33 ASIROM SIBIU SIBIU Branch Bd. V. Milea nr. 12 A, SIBIU

34ASIROMSUCEAVA SUCEAVA Branch str. Petru Rarenr. 14, SUCEAVA

35ASIROMTELEORMAN ALEXANDRIA Branch

str. Ion Creang nr. 52 - 54,ALEXANDRIA

36 ASIROM TIMI TIMIBranch Piaa Consiliul Europei nr.1, TIMI

37ASIROMTULCEA TULCEA Branch str. Unirii nr. 4, bl. D, TULCEA

38 ASIROM VASLUI VASLUI Branch str. tefan cel Mare nr. 70, VASLUI

39ASIROMVLCEA

RAMNICU VALCEABranch

str. Gen. Magheru, bl. S3,RAMNICU VLCEA


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40ASIROMVRANCEA FOCANI Branch str. Republicii nr. 7, FOCANI

41

ASIROMBUCHARESTMUNICIPALITY ION GHICA Branch

str. Ion Ghica nr. 7, sector 3,BUCURESTI

42ASIROMDOROBANTI DOROBANTI Branch

str. Vasile Lascar nr. 178, sect. 2,BUCURESTI

43ASIROM MIHAIBRAVU

MIHAI BRAVUBranch

Bd. Mihai Bravu nr. 90 - 96, sect.2, BUCURESTI

44ASIROMOLTENIEI OLTENIEI Branch

str. Impratul Traian nr. 32, sect.4, BUCURESTI

45ASIROM 13SEPTEMBRIE

Branch 13SEPTEMBRIE

Calea 13 Septembrie nr. 63, sect.5, BUCURESTI

46ASIROM

Headquarter BUCURESTIBd. Carol I nr. 31 - 33, sect. 2,BUCURESTI

ASIROM Channels of distribution are formed of:

a) 10,518 - insurance agents as natural persons;b) 430 insurance agents as legal persons and brokerage companies .

ASIROMhas concluded a number of approximately 600 conventions with serviceunitsfrom the entire country. Thus, there is the possibility of direct settlement of accounts(payments) towards the service unit, without being necesarry to acquit the repairings, thisbeing made directly on the grounds of these conventions, by ASIROM.

The complete list containing the service units, agreed by ASIROM is available onwww.asirom.ro.

Representative Offices for Compensations

ASIROM has appointed representative offices for compensations in each member state of

EU (the list which is permanently up-dated, can be found on the companys site). Theserepresentative offices for compensations are empowered to instrument the claims in thename and on behalf of the insurer and to represent the insurer within the compenstaionconvention, performed with the insured Party and with damaged Party.

List of units can be found on the companys site: www.asirom.ro .

SUMMARIZED GENERAL BALANCE

FINANCIAL EXERCISE CLOSED ON 31 DECEMBER 200931 December 2009

PATRIMONIAL ELEMENTS (lei)

I. Intangible asssets 3,481,890

II. Investments

Lands and constructions 206,266,997


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Titles owed at the affiliated companies 14,783,299

Other investments in financial immobilizations 17,968,586

Shares, other securities with variable incomes and units

To the common investments funds 6,430,489

Obligations and other titles with fixed income 308,416,421

Other loans -

Deposits at the credit institutions 113,817,316

TOTAL 667,683,108

III.Part ceded from the technical reserves related to the contracts cedate intoreinsurance 45,789,640

IV. Debts

Insured 185,055,553

Other debts from the insurance operations -

Debts provenite din operaiuni de reinsurance 7,199,542

Otherdebts 51,366,514

TOTAL 243,621,609

V. Other elements of assets

Technological equipment, devices,

means of transport, tangibel assets 10,364,625

Consumables 2,768,855

Cash and accounts into the banks 22,031,308

TOTAL 35,164,788

VI. Expenses in advance (downpayments)

Downpayments, interests

And rents in advance 274,077

Acquisition reported expenses general and life insurances 44,790,048

Other expenses registered in advance 167,802

TOTAL 45,231,927

TOTAL OF ASSETS (I+II+III+IV+V+VI) 1,040,972,962


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31 December 2009

(lei)

I. Equity and reserves

Paid up equity 157,853,432

Equity premiums 92,962,500

Reserves from re-assessment 144,041,209

Legal reserves 4,443,502

Reserves representing surplus

Achieved from the re-assessment reserves 2,349,949

Other reserves 40,266,732

Own shares 414,120

Reported result- debtor balance 180,049,191

Exercise result

Loss -

Profit 5,160,460

Profit distribution 258,023

TOTAL 266,356,450

II. Tehnical reserves, of which: 664,594,573

Technical reserves concerning life insurances 232,237,656

Technical reserves concerning general insurances 432,356,917

III. Provisions for imposits 150,002

IV. Other provisions 4,337,107

V. Debts from direct insurance operations 1,166,360

VI. Debts from reinsurance operations 1,447,092

VII. Other debts 80,412,746

VIII. Incomes in advance 22,508,632

TOTAL LIABILITIES (I+II+III+IV+V+VI+VII+VIII) 1,040,972,962


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The financial investments of the companies had been formed of bank deposits, state

titles, corporate obligations, fund units and buildings and participations at social equity at

other trading companies.

For the purpose of protection the portfolio safety into the financial investments, but also for

obtaining of high yield on long-term, the percentage of state titles issued by the Ministry ofFinances, has increased in totally, ASIROMmaking a prudential policy of investments. By

this, in 2009, the financial yieldhas situated over the inflation rate.

Strategy of the company development on 2010 aims mainly the continuation of the

process of transformation/reorganization of the company and of territorial structure of the

branches and finalizing of this process. Thus, ASIROM is consolidating position of favorite

insurer of Romanians.


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Translation from Romanian

PRICEWATERHOUSECOOPERS

THE INDEPENDENT AUDITORS REPORT TOWARDS THE SHAREHOLDERS OFASIGURAREA ROMANEASCA ASIROM VIENNA INSURANCE GROUP S.A.

1. The summarized financial statements attached to the Annual Report of

Asigurarea Romaneasca ASIROM Vienna Insurance Group S.A.

(Company) has been extracted from the individual financial

statements of the company for the financial exercise ended at 31

December 2009, elaborated in accordance with the Order of the

Insurance Supervisory Commission (CSA) no. 3120/2005, with the

subsequent modifications and completions and with the accounting

policies described in the Notes to the individual financial statements.

The company management is liable for the elaboration and

presentation with accuracy of these summarized financial statements.

Our responsibility is to express an opinion upon the conformity, in all

significant issues, concerning the individual financial statements, from

which they were extracted.

2. We audited in accordance with the International Standards of Audit,

the individual financial statements for the financial exercise ended at

31 December 2009, from which the General Balance and the Profit and

Loss Account were extracted, appointed as summarized financial

statements. In our Audit Report, dated on 12 April 2010, we stated an

opinion without reserves upon the individual financial statements of the

company, from which there were extracted the summarized financial

statements.

3. In our opinion, the summarized financial statements at 31 December

2009 under all significant issues, are in accordance, with the individual

financial statements, from which they were extracted.

4. For a better understanding of the financial position of the company and

its operation results for the financial exercise ended at 31 December

2009, also of the applicability area of our audit, the summarizedfinancial statements must be analyzed together with the individual

financial statements from which our audit report is extracted also.

Paul Facer


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Statutory Auditor, stamp and signature: illegible

On behalf of PricewaterhouseCoopers Audit SRL

Bucharest, 12 April 2010.

transl. 3. raport anual asirom 09

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