Transilvania Broker de Asigurare - revenues and profit decreasing, in the middle of the year

• Gross brokerage was nearly 11%, 3.5 percentage points below the commission for the first six months of last year, according to the company's report

• The Czechs from Partners Financial Services recently became the largest shareholder of Transilvania Broker

Transilvania Broker de Asigurare (TBK) reported, for the first six months of this year, operating revenues of 53.3 million lei, 11.8% below those of the first half of last year, while the net profit amounted to 2.28 million lei, down 58.3%, according to the company's report published yesterday on the website of the Bucharest Stock Exchange (BVB).

The value of the volume of premiums intermediated by the company amounted to 484.8 million lei, in the first semester, by 15.9% above the value from the middle of last year, while the income from the distribution activity decreased by 11.8% , up to 53.3 million lei.

The increase in the volume of intermediate premiums was supported by both compulsory insurance (RCA) and optional insurance, which had a 12.2% increase compared to the reference period. At the same time, there were percentage increases of 14% for the volume of life insurance premiums and annuities related to investment funds, respectively of 4.13% for the volume of life insurance premiums, annuities and additional life insurance , according to the Transilvania Broker report.

On the other hand, the gross brokerage commission was almost 11%, 3.5 percentage points below the commission related to the first six months of last year. In the first semester, Transilvania Broker de Asigurare recorded operating expenses of almost 50.7 million lei, 6.7% below those of the middle of last year.

Personnel expenses increased by 9.1%, up to 2.8 million lei, while expenses with commissions owed to brokerage assistants, the most important operational cost category, decreased by 7.3%, to 45.5 million lei, significantly lower than the income from the distribution activity.

In this context, the company's operating profit amounted to almost 2.6 million lei, in the first half of the year, 57.5% below that of the first six months of 2023, to which was added a positive result from financial activities of 1.13 million lei. For the second quarter, the value of the volume of premiums brokered by the company amounted to 260.9 million lei, with 40.6% more than in the second quarter of last year, while the value of revenues from the activity of distribution was 27.9 million lei, up 3.7%.

The net result amounted to 1.42 million lei, 26.2% higher than that in the March-June period last year.

"The evolution of the financial indicators for the second quarter of 2024 confirms the management's position and perspective communicated in the sustained dialogue it had with the shareholders of Transilvania Broker during the extended period of interventionism on the insurance market and insurance distribution in Romania", the report states the company.

According to the report, the company's results in the first six months of the year still reflect the impact of the fee cap measures, but there is a recovery significant in the second quarter. In the first quarter, the company achieved a net profit of around one million lei, 80% below that of the first three months of last year.

Recently, the Czechs from Partners Financial Services reached a 32.89% stake in the insurance brokerage, while the holding of founders Gabriel Login and Niculae Dan dropped to 23.93% of the company.

The stock market valuation of Transilvania Broker de Asigurare amounts to about 90 million lei.