Insurance sector as a whole registers 2.1% negative growth for January-July as life insurance generates 16.5 percent decline. Health insurance companies are waiting for the promised reform
The 7-months results posted by the companies in the non-life insurance sector amount to BGN 852.256 million in written premiums (including premiums of the companies that operate in reinsurance
field), but in life insurance the result is BGN 130.541 million, the Financial Supervision Commission (FSC) has announced.
Thus the non-life sector’s reported growth is 0.5% yoy, while the life sector declines 16.5%, bringing the cumulative result of the industry to 2.1% decline. Figures for the active reinsurance are
separately available and published on a quarterly basis.
The largest share of the aggregate portfolio of companies operating in non-life insurance continues to be occupied by motor insurance - Autocasco (43.0 percent) and MTPL (26.8%) – a total of 69.8%
of gross premium income in the sector.
The next in volume comes property insurance ("Fire and natural disasters" and "Other damage to property" products) - premium income amounted to BGN 156.637 million, or 18.4 percent of total premium
income of the industry.
MTPL and "Fire and natural disasters" have the greatest contribution to the growth of premium income for non-life sector, with income from these products rising by BGN 34.847 million and 11.139
million yoy respectively.
The line of the top 3 companies in terms of gross premium income and market share in the non-life sector remains unchanged: first place is for Bulstrad Vienna Insurance Group PLC with BGN 135.758
million in received premiums. The market share of the company, however, decreased to 15.93% compared with 16.58 percent for the six months.
The second place is for DZI General Insurance with premium revenue BGN121.096 million and 14.21 percent market share in non-life insurance (against 14.48% for the six-month period).
Lev Ins is third with BGN 90.847 million written premiums and 10.66% market share (10.62% for the six-month period).
It has become a tradition that companies, which are directly below the top, spar hard to move ahead to the front seats. The 7-month period is no exception.
After the Bulgarian subsidiary of the German giant Allianz has qualified for the third place last year, fourth with its Q1 results and fifth with its H1 results, obviously the ranks are closed and
the company returned to fourth position for January-July with BGN 89.760 million in premium income and bigger market share - 10.53% against 9,76% for the six months.
Armeec has taken the fifth position. From sixth place last year, fifth in Q1 and fourth in H1, now the company retreated a step in the provisional rating and crossed the finish line on fifth place,
with BGN 87.469 million premium income, but has kept its market share (like Lev Ins) - from 10.22% for the six-month period, to 10.26% now.
Honorary sixth place is left for Bul Ins. The company finished fifth in the 2008, but for this year has reserved the sixth position. For the 7-month period Bul Ins gathered BGN 67.563 million
premium income. However, the company has increased its market share slightly to 7.93 percent from 7.84 percent for the H1.
As expected, problems in the life sector continue. The 7-month period brought for companies in the sector an even greater decline than in H1 - 16.5 percent, compared to 12.5% decline for the
6-month period.
The largest share in premium income realized by life insurance companies continue to hold annuity life insurance products. Revenue generated by this type of insurance is BGN 96.611 million and
forms 74% of premium income generated in the sector. Life insurance related to investment fund has 4.8% share in the aggregate portfolio of the companies in the sector as premium income is BGN
6.210 million. Year-on-year growth is registered only in "Marriage and child insurance” - 18.5 percent, "Additional insurance” - 7.0% and permanent health insurance - 3.0 percent.
There are no dramatical changes in the ranking of the companies in terms of premium income. The traditional leader - Allianz Bulgaria, continues to lead with BGN 27.190 million collected premiums
and 20.83% market share.
DZI Life is the runner-up with BGN 21.710 million in premium income and slightly larger share than for the H1 period - 16.63 percent against 16.3 percent.
Uniqa Life is again taking the third position. The company generates BGN 15.182 million in premium income, but retreated from its market positions. The 7-month period brings it 11.63 percent market
share against 12.5 percent for the H1.
AIG Life Bulgaria has been on fourth position in 2008, on sixth in the first quarter and again in the forth for the half-year. Now it reinforces this position, but in a new image: the company has
taken the name Alico Life Assurance Company Bulgaria EAD. Reported end-July premium income is BGN 12.935 million, while market share is slightly higher - 9.91 percent compared to 9.7 percent for
the six months.
Traditionally on the fifth place, Bulstrad Life solidified its position with BGN 12.161 million in premiums and nearly unchanged market share - 9.32 percent against 9.4 percent for the six months.
In anticipation of the reforms, promised by the government in the health sector, companies that operate on the voluntary health insurance market reported premium income of BGN 25.838 million
for January-July. Thus they have generated 37.5% growth on an annual basis, statistics of the FSC show.
Revenue is generated on the basis of 371 756 contracts underwritten by the end of July this year
The largest shares in premium income have the products "Other health insurance packages” - 31.2% and outpatient medical care - 25.4 percent.
The highest growth in premium income on an annual basis is recorded by the package "Reimbursement of expenses” - by 94.1%, and outpatient medical care - by 92.5 percent.
July brought some changes in the provisional standings of the companies. Since the first quarter of this year the company of Invest Bank - Bulgaria Health, has performed a real lion leap and from
the 11th place last year, jumped straight to the leadership position for the H1. It has continued its good performance in July as well, but the reported results for the 7-month period left her
second in the leaders’ line. The traditional leader (for years) Generali Zakrila Health Insurance has returned to the first place with BGN 4.562 million premium income and 17.7 percent market
share.
Bulgaria Health has recorded BGN 4.243 million in premiums, but has reported serious setback in terms of market share - the company now holds 16.4% of the market for voluntary health insurance. For
comparison, during the 6-month period its share has been 19.52%.
The two companies of Doverie Holding - Doverie Fund and Medico-21, occupy the third and fourth place respectively in the provisional ranking. Combined, they hold almost 22% of the market. Doverie
has reported BGN 2.856 million in premium revenue and 11.1 percent market share, and Medico-21 – BGN 2.728 million and 10.6 percent market share.
Honorable fifth place is for the Voluntary Insurance Network Health, which has gathered BGN 12.075 million in premiums and holds 8% market share.
Companies in the health insurance industry expect the decision of the Bulgarian government for comprehensive reforms in the health insurance model. However, there is no proposed bill for the
necessary legal changes yet. According to one of the main ideas discussed in public, the basic set of services offered by the state National Health Insurance Fund should be limited to enable
healthcare companies to form a so-called second pillar in the health insurance model.
Another idea envisages this second pillar to be compulsory, like it is in the pension insurance system in the country. At a later stage, when the system becomes feasible, a third pillar is planed
to be established, which should be voluntary and should involve only a package of luxurious services.
The previous Bulgarian government has decided some time ago that the health insurance companies should be registered anew under the Insurance Law. Companies strongly protested this decision. So
far, however, there are no developments in this model.
Obviously the future of the companies is yet to be determined by the new Bulgarian government.
