The official position towards media comments on the use of counterfeit auto spare parts, allegedly imposed by insurers

Astra Asigurări is the leader of the Romanian insurance market and the insurer paying one of the highest amounts of compensations: in 2010, the company has settled claims amounting to lei 526,883,477, registering a 61% increase compared to 2009. We deem that the accusations brought against the insurance market are unfounded. During the first quarter of 2011, insurers have settled claims amounting to lei 1.26 billion, in accordance with the Insurance Supervisory Commission.

We would like to specify that Astra Asigurări has never imposed an illegal action in its relation with its partner auto service centers and with its spare parts suppliers. Furthermore, we explicitly require our spare parts suppliers to observe the legislation in the field on warranty, on the ISO and the Romanian Automobile Register certificates, as well as on the certificates of other authorities in this field.

The collaboration protocol concluded between the company and spare parts suppliers stipulates that “The supplier provides warranty for the delivered spare parts, in accordance with the legal provisions in force. The parts shall be traded in observance of the legislation in force”. Moreover, suppliers adhering to the electronic platform made available by Astra Asigurări for the selection of spare parts required for the repair of vehicles shall meet the following conditions:

- they shall hold an IT system allowing the automated query of the database on the traded spare parts;

- they shall provide the timely delivery of the spare parts required for repairs by the service centers for vehicles insured by Astra;

- they shall maintain the supplied price;

- they shall undertake liability for the supply of spare parts accompanied by warranty certificates and ISO certificates in accordance with the legislation in the field.

All the above-mentioned items are provided as rights and duties of the parties in the collaboration protocols, as they are fundamental principles of any trade agreement.

Astra Asigurări observes the law, and it aims to reduce repair costs bearing excessively high amounts, respectively trade markup applied by certain agents on the spare parts market, by paying directly to the suppliers. Therefore, both the insured and the persons subject to damage are protected, as they have a direct relation with the insurers and not with the service units (the service units do not supply spare parts, as they only perform repair works). The company operates with 12 spare parts suppliers at a national level, and it has concluded 1,107 contracts with service centers.

Therefore, Astra Asigurări has an analysis system of offers made by spare parts suppliers, that has stimulated and implemented transparency on the legal market and that has not encouraged illegal competition, counterfeit parts and the development of the black market. Furthermore, the company has implemented monitoring procedures for client complaints related to services provided by spare parts suppliers and auto centers. We believe the association of the Astra Asigurări name with such illegal practices is a serious offense and we will act accordingly.

We request the Insurance Supervisory Commission (CSA), the National Association of Insurance and Reinsurance Companies from Romania (UNSAR) and the Romanian Motor Insurers’ Bureau (BAAR) to take notice of the serious charges brought against the market and to initiate an investigation at the level of the insurance market in order to verify whether such practices exist in this field.

About ASTRA Asigurări

ASTRA Asigurări, the leader of the Romanian insurance market, has concluded 2010 with a total subscribed gross premium volume amounting to lei 1,083,209,476, registering a 34% increase compared to 2009.

Financial results for January-December 2010:

- The increase of the subscribed gross premium volume by 34%, up to lei 1,083,209,476

The damages paid by Astra Asigurări, in 2010, have registered an increase by 61% compared to 2009, from lei 328,167,178 to lei 526,883,477. The value of the damages covered by Astra Asigurări for the Compulsory vehicle liability insurance segment, in 2010, amounted to lei 301,133,299 (70,979 files), and the damages covered on the CASCO (voluntary car insurance) segment amounted to lei 185,634,132 (42,824 files). Moreover, during the first three months of 2011, Astra has settled damages amounting to lei 105,271,480 for the Compulsory vehicle liability insurance segment, registering an 87% increase compared to the same period of the previous year (lei 56,288,215). The damages settled on the CASCO segment during the first three months of 2011 have amounted to lei 54,703,532, registering a 50% increase compared to the same period of the previous year, respectively lei 36,446,877.

Astra Asigurari

Press Office

For more information, please contact:

Gianina Ungureanu Iovănel, PR Manager

gianina.iovanel@astrasig.ro

Tel: 021/40.38.188

Fax: 021.318.80.74

Mobile: 0743 01 71 72