The New Shareholders Of The American “Heritage Guarantee Holding” Are Quite Impressed With “Lev Ins” Advance, Said The Managing Board Chairwoman, Ms Asya Axentieva
Ms Asya Axentieva is the Manging board chairwoman of “Lev Ins” insurance company since Feb 2005. When she has graduated law at Sofia University she started working as a legal advisor at the Ministry of Defense. Later on she specializes in the insurance field. Presently she is DZI’s legal advisor, as well as “Vitosha” IC’s where she is a member of the Managing Board. She is the chairwoman of “Vitosha Life” Insurance Company and its General Executive. During the first year of the Insurance Control Board existence she was the “Decisions and Control” department manager. Then she works for “Jupiter” as a General Executive. During the 1999- 2002 period she was the chairwoman of the Bulgarian Insurers’ Association Juristic Board. She was a member of the National Insurance Council (2001- 2002).During the 1989- 1995 she was a lecturer at the “D.A.Tzenov” Economic Academy, presently she is teaching insurance law at the University for Domestic and World Economy.
Ms Axentieva, quite good were the results reported at the “Lev Ins” shareholders general meeting- the company is placed fifth when it comes to premium income and is among the first three when it comes to profit. What is the making of this success?
I cannot just skip commenting on the most important indices. The company’s premium income for 2005 amounts BGN 55 109 thousand, in 2004 it amounted BGN40 419 thousand , i.e. there is a 36% rise. Damages payments amount BGN11 769 thousand, compared to BGN7 863 thousand. The stock apart amount BGN35 280 thousand compared to BGN20 879 thousand of the previous year. The stock is being invested in accordance with the insurance legislation, i.e. in ready- money assets and such of low risk (government bonds, bank shares, deposits and realties). The solvency guarantee is estimated to amount BGN5 120 thousand, and the actual solvency amounts BGN18 713 thousand. The profits amount BGN8 857 thousand, being BGN 4 541 thousand in 2004. These results are within the frame of “active security” policy, i.e. representing good results on risk prevention, solid customer partnership, flexible product, price and marketing policy, but most of all good damage coverage results. Our main objective was better customer service and I think we achieved it. I can give as an example the automobile insurance which a major part of our portfolio. We introduced better service terms, for example the “fast track” (damage payments up to BGN500 paid within hours). We created a 24- hour “assistance” in Sofia- a mobile group goes to the accident site and assists our customer, provides medical aid if needed, advises the customer on compensation terms etc. We introduced some facilitations, for example we do not insist on a second police paper to prove that a vehicle has been stolen and not found, and there has been no trial. We also have a consultancy phone line available for the citizens. All this lead to a greater demand of our products.
I cannot omit the good work our employees are doing, as well as the alternative ways of selling insurance-via “Petrol” gas- stations, GloBul, etc.
You say that the major part of your profits come from car insurance. Do you plan on diversifying the risk and supply some extra products?
Car insurance makes 80% of our business, but this does not bother us. I think that our company proves that when the risk is managed well automobile insurance can be a fine business.
We supply all kinds of insurance, of course. We offer insurance against industrial risks, property insurance, insurance against financial and credit risks and yet the sales of these products are rising slowly.
Do you plan on offering some new insurance products?
Excluding the “Green Card” insurance we do not plan on introducing any new products. The thing is that we are working on improving the terms of the presently available insurance products and introducing combined policies and thus protecting certain interests- of a small company for example.
Do you plan on expanding your branch network and getting in more solid contacts with dealers?
We are on very good terms with our agents and we meet all insurance codex requirements. As far as the dealers are concerned- we expect some more intensive contacts. We assigned some employees to work especially with dealers and corporate clients. We negotiate with the dealers and we expect to involve them in damage payments.
There is a positive tendency to be noticed; in the past there were some complaints about delayed payments and their amount. Now there seems to be no unsatisfied customers. How did you achieve that?
We have insured some 600 000 objects and have more than 400 000 signed contracts. Working with such numbers there is no way there are no unsatisfied clients. But we discharge our duties on time. It is true that some years ago there were payment delays. I am not going to comment on the reasons for that. It is in the past. Now the company is able to work better and faster making damage payments on time. There is no way this does not lead to better customer relations.
A life insurance company and a healthcare fund belong to your group. How are they developing?
They were established recently, but work well. Chances are they are going to develop even better. We do not have any problems meeting the insurance codex requirements as well as those of the healthcare law. The new “Life Insurance Institute” shareholder can provide some solid know- how and the Health Care Institute, established a little earlier, has some good sales already. But we will not be able to say anything before the end of the year.
“Lev Ins” works in partnership with Tokuda Bank and your healthcare fund works with dr. Torao Tokuda, who is building one of the biggest hospitals here, in Bulgaria. What else can you say about this project?
I want to make it clear that Tokuda Bank is a ”Lev Ins” shareholder and this is how dr. Torao Tokuda manages his projects in Bulgaria. Up to now we are working on financial security terms with the bank and we hope that we will be partners in the healthcare funding as well. As far as I know the hospital should start working in August.
It was said that an American investor bought “Lev Ins” shares. What is the truth and who is the investor?
It is true that augmentation shares of the insurance and the life insurance companies were bought by a foreign investor and that is “Heritage Guarantee Holding” which assigned BGN 3 million to the general insurance company capital augmentation and thus acquired 23% of it. And assigned BNG 1 million to the life insurance company.
“Heritage Guarantee Holding” is an American holding which includes two financial institutions and four insurance companies (the holding is the 1005 shareholder of each of them). These companies sell insurance and superannuation products in more than 35 states and manages really great assets.
“Heritage Guarantee Holding” is owned by an investment company that invests in realty, telecommunications and oil and gas extraction. It owns realties evaluated to 2.5 billion dollars. The investment company has some investments in Bulgaria, “Cabletel” for example. “Heritage Guarantee Holding” is our shareholder but we expect some “Cabletel” partnership. The new shareholders said they are impressed with “Lev Ins” advance. Presently we are preparing all papers needed to meet insurance codex requirements so the new shareholder be able to exercise its rights.
