Assets of the companies increased by 49%
Gross premium income realized by insurers licensed in Bulgaria (37 companies and 9 branches) amounted to BGN1.692 billion in 2009, making for 6.3% annual reduction, reported the Financial
Supervisory Commission, citing preliminary data, submitted by the companies.
According to preliminary data of BNB the total assets of insurance, reinsurance and health insurance companies, operating in Bulgaria (66 companies), were BGN3.9768 billion at the end of 2009, the
annual increase is BGN1.307 billion (49%)*.
Assets of the 20 life insurance companies last year increased by BGN83.4 million (9.2%) – from BGN910.2 million at the end of 2008 to BGN993.5 million end-December, 2009. Assets in this
segment are 25% of the total assets, from 34.1% an year earlier, according to the central bank statistics.
The assets of the 26 non-life insurance companies increased by BGN1.2151 billion (71.5%) to 2.9155 billion as of December 31, 2009. The non-life insurance companies have the highest proportion –
73.3%, of the total assets of the sector, from 63.7% at the end of 2008.
Among the investment instruments, included in the assets of insurance, reinsurance and health insurance companies, the largest portion is for the securities other than shares - 34.1 percent from
24.8 percent at the end of 2008, deposits – 27%, from 27.6 percent, and receivables – 13.9% from 16.9%, BNB data show.
In the currency structure of the assets essential are the funds, denominated in Bulgarian currency – 54.6%, with 80.3 percent a year earlier, and those in euro – 22.4%, from 17.5% at the end of
2008.
Invested in Bulgaria assets of the sector increased by BGN171.6 million (7.7%) to BGN2.4029 billion at the end of the year, from BGN2.2313 billion at the end of 2008. Investments in EU countries
increased by BGN1.0542 billion (326.2%) for one year and reached BGN1.3773 billion. As a result, the proportion of investments in Bulgaria is 60.4% at the end of 2009, from 83.6 percent a year
earlier.
Liabilities of the sector are BGN3.9768 billion; the largest share is for the technical reserves – 52.3%, from 47.3% a year earlier. The equity of the companies is 34.6% of the total amount of the
liabilities, from 34.9% at the end of 2008. The amount of equity is BGN1.3768 billion at the end of 2009 and has increased by BGN445.2 million (47.8 percent) for one year. Technical reserves are
increased by BGN814.9 million (64.5%) to BGN2.0783 billion.
The largest share in the total insurance technical reserves, according to BNB, has the liabilities to households and local non-commercial organizations that serve them – 18%, from 26% a year
earlier. Liabilities to domestic insurance companies and pension funds are 14.6% (from 22%).
Non-life Insurance
Gross premium income realized by non-life insurers for the period January-December 2009, according to FSC statistics** is BGN1.470 billion, which is 4.2%
decline on an annual basis. Incurred claims amounted to BGN774.779 million, with annual growth of 0.3 percent. The amount of gross technical reserves grew by 6.5% annually and reached BGN1.276
billion. Non-life companies reported BGN10.989 million technical negative result, from BGN-4.694 million a year earlier, and BGN24.514 million positive financial result, from negative BGN2.366
million in 2008.
Life Insurance
Gross premium income realized by life insurers at the end of 2009, according to the FSC data, is BGN221.627 million, which stands for 18% yoy decline. Paid benefits and claims amounted to BGN91.112
million and decreased by 1.2% yoy. The amount of gross technical provisions increased by 10.6% yoy and reached BGN505.026 million. Technical result of the life insurers amounted to BGN10.487
million, from BGN-1.642 million in 2008, and financial result – to BGN23.562 million, from BGN6.590 million a year earlier.
Voluntary health insurance
Premium income realized by companies in voluntary health insurance at the end of 2009 is BGN38.427 million, accounting for 26.8% annual growth, according to FSC figures.
Claims have amounted to BGN21.444 million, from 21.160 million in 2008.
Total assets of the voluntary health insurance companies are BGN68.252 million, standing for 14.3 percent yoy growth.
The amount of health insurance reserves decreased by 5.9 percent annually and reached BGN12.293 million. Technical result, reported by companies, amounted to BGN-135 thousand, from BGN-6.352
million in 2008, and financial result – to BGN 1.296 million, from BGN-7.902 million a year earlier.
The number of voluntary health insured persons at the end of 2009 is estimated at 177 898, from 356 863 at the end of 2008, melting more than twice.
Insurance brokers
Premium income realized through insurance brokers in 2009 amounted to BGN688.138 million, of which BGN 664.475 million in favor of local insurers, BGN20.488
million in favor of foreign insurers and BGN3.175 million in favor of companies in voluntary health insurance, the FSC data show.
From the premium income in favor of insurers domiciled in Bulgaria BGN622.658 million were realized in the non-life insurance and BGN41.817 million in life insurance. Premium income, realized
through insurance brokers, rose by 4.4 percent, compared with 2008, with 5.9% growth in general insurance and 13.3% decline in life insurance.
Highest proportion in the structure of the realized through insurance brokers premium income in favor of local non-life insurers retained motor insurance (51.7%) and MTPL (28.8%), followed by “fire
and natural disasters” (9%) and “other property damage” (4.5%). In life insurance the biggest proportion is for the annuity products (89.9%).
Insurance brokers commissions revenues amounted to BGN167.807 million, including BGN164.606 million from local insurers, BGN2.839 million – from foreign insurers and BGN362 thousand – from
voluntary health insurance companies.
Brokers' commission income from domiciled in Bulgaria insurers are 25% in non-life insurance and 21.9% in life insurance.
Policy that generates the highest commissions/premium income ratio in general insurance is “travel assistance” – 35.6%. Next is the MTPL – 26.7%. Third is the “legal expenses” policy – 26.5% and
next comes the casco – 25.8 percent.
In life insurance the highest commissions/premium income ratio is "marriage and child insurance policy – 65.9% and investment life insurance products – 46.2 percent.
A total of 304 brokers have reported their results in FSC, out of 316 registered companies by the end of last year.
First among the brokers in terms of market share comes "I & G Insurance Brokers Ltd - 7.70%, followed by "SDI Group Ltd. - 4.69%.
Seven brokers realized market share between 3 and 4%, three companies have 2.22-2.72% share 11 companies – from 1% to 1.87%., and 24 companies can not pass the threshold of 0.00 percent market
share.
Final data in the sector are expected in a month.
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* The scope of insurance, reinsurance and health insurance companies, covered by BNB statistics, includes also branches of insurers, established in other countries – in accordance to the
Currency Act.
** FSC statistics do not include the activities of branches in other countries and this is the main reason for the differences with the BNB data.
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