Transilvania Broker de Asigurare recovers first quarter loss and turns profitable

The profitability of Transilvania Broker de Asigurare (TBK) decreased drastically in the first half of the year, from 2.3 million lei in the first six months of 2024 to 0.05 million lei in the period January-June 2025, even though revenues increased by 3.5%, to 55.2 million lei, according to the issuer's report published yesterday on the website of the Bucharest Stock Exchange (BVB).

On the other hand, in the first quarter of the year the company had recorded a loss of 1.2 million lei, compared to a net profit of 0.85 million lei in the period January-March 2024, as a result of increases in operating expenses to a greater extent than that of revenues, due to the need to ensure a sales force corresponding to qualitative and volume requirements. In practice, in the period April-June the company managed to recover the loss from the first quarter.

In the first six months of the year, the volume of intermediated premiums by Transilvania Broker de Asigurare increased by 8.8%, while in the second quarter the volume of intermediated premiums increased by 25% compared to the first quarter of this year, as well as by 6.8% compared to the period April-June 2024.

According to the most recent report of the Financial Supervisory Authority on the insurance market in the first quarter of the year, Transilvania Broker was in fourth position among brokerage companies by market share expressed as a share in total intermediated premiums, with 6.1%, after competitors such as Safety Broker de Asigurare - 11.2%, Marsh - Broker de Asigurare-Reasigurare - 7% and Destine Broker de Asigurare Reasigurare - 6.8%.

In the first six months of the year, Transilvania Broker de Asigurare's operating expenses amounted to 55.1 million lei, 8.8% more than in the first half of last year. The largest increase, of 36.3%, was recorded by expenses related to services provided by third parties, which amounted to 2.7 million lei, while expenses related to amounts owed to assistants amounted to 49.4 million lei, 8.6% higher than in the first six months of last year. Operating income amounted to 0.05 million lei, well below the 2.6 million lei in the first six months of last year, to which was added a small gain from financial activities.

In the second quarter, Transilvania Broker de Asigurare made a profit of almost 1.3 million lei, covering the entire loss carried forward from the first quarter. "This evolution was possible through the management's effort to optimize operating expenses, among which the only categories that did not register significant decreases compared to the previous quarter were personnel expenses, which increased marginally (+4%), respectively expenses with commissions paid to brokerage assistants, which remained relatively constant", according to the report. The Czechs from Partners Financial Services own 32.9% of the insurance brokerage company, while Gabriel Login has 14.1% of the company whose stock market valuation amounts to about 70 million lei.