In 2017 EUROINS Insurance Group (EIG) generated aggregate GWP of BGN 645.5 million (EUR 330 million) compared to BGN 527.7 million in 2016. At the same time, the consolidated profit increased more than four times to BGN 36.8 million (EUR 19 million) compared to a profit of BGN 8.9 million in 2016.
"It is another year, in which the Group has reported growth. In the last five years EIG has doubled its gross written premiums from BGN 320.6 million in 2013 to BGN 645.5 million in 2017. The growth is not just top line but also on a financial performance level basis", the Bulgarian group pointed out in its preliminary annual report.
EUROINS Romania
In the twelve months of 2017 EUROINS Romania - the largest subsidiary of EIG, has written total GWP of BGN 472.9 million (EUR 242 million), which is a growth of nearly 22% compared to 2016.
"The increase is mainly due to the growth in MTPL (21%) but the major non-motor lines of business such as Accident (69%), Cargo (43%), Liability (23%) and Property (3%) grow with even higher rates.
The growth in MTPL is down to the re-segmentation of the business activities of the clients of the company that has been completed in 2014 and 2015. As a result the company started writing MTPL business in new more profitable segments by implementing a segmentation requirement of at least three criteria".
Net claims incurred grow by 13% but that is justified as the growth is lower than the growth of 20% in the net earned premiums. "This is another quarter for EUROINS Romania where it can be witnessed the positive effect of the re-segmentation combined with the strengthening of the reserves in 2015. As a result the profit for group purposes rises to BGN 38.2 million before tax".
EUROINS Bulgaria
The second largest EIG subsidiary - EUROINS Bulgaria has reported total GWP of BGN 143.9 million (EUR 74 million) compared to BGN 117.1 million written in 2016. "The reason for this growth of nearly 23% is the direct insurance business written through brokers both locally in Bulgaria and in Greece, Italy and Spain according to the EU directive for Freedom of services. MTPL line of business grows but so do also main non-motor lines such as Property, Accident & Health, Liability and Travel".
Net claims incurred are up by 48.8%. "The reasons for this growth are the Balance Sheet Review (BSR) completed in July 2017 and the growth of the business as a whole. In 2017 net earned premiums have increased by nearly 35%".
Administrative expenses have increased compared to 2016 by app. 7%; the reasons for this growth are the substantial final costs of the two Balance Sheet Reviews and also the costs associated with the new regulatory requirements of Solvency II. "In spite of this Euroins Bulgaria has reported a profit for group purposes of BGN 52 thousand".
EUROINS Macedonia
In 2017 GWP by EUROINS Macedonia have registered a growth of nearly 8% reaching BGN 18.2 million. Main business lines that grow are Motor Hull by 20%, Cargo - 15%, MTPL - 3% and Accident - 1%. Net claims incurred have increased by less than 4% with the net earned premiums growing by 3% in the same period. "As a result of the ongoing initiatives of the management of the company administrative costs have registered a decrease of 8%. The result of the above is a profit for group purposes of BGN 454 thousand".
EUROINS Life
In the twelve months of 2017 EUROINS Life has written total GWP of BGN 1.6 million, which represents a decrease of 4% when compared to 2016.
"The management of the company is currently reviewing the products on offer. In addition the company also started offering on the market new life insurance solutions including online sales solutions. These initiatives, however, are still at the very beginning with the positive portfolio effect yet to be seen".
EUROINS Ukraine
EUROINS Ukraine (ex. HDI Strakhuvannya ) raported FY2017 GWP of about BGN 9.5 million with nearly 38% of them being non-motor business. Atthe same time, "as a result of the administrative costs associated with the current ongoing restructuring of the company EUROINS Ukraine has reported a loss for group purposes of BGN 1.9 million".
EIG Re
For the twelve months of 2017 EIG Re (ex. HDI Insurance) has written gross premiums of BGN 12 million and has reported a profit of BGN 90 thousand. The EIG Re' figures also includes the activity of the former EIG Health, which merged with EIG Re last summer. "The approval has been given and on 27 June 2017 the merger of EUROINS Health into EIG Re has been entered into the Trade Register. As a result of the transaction EUROINS Health has been terminated without liquidation and EIG Re has become its universal legal successor".
EUROINS Russia
On 23 November 2017 EUROINS Insurance Group has acquired 14.144% of the capital of Insurance Company EUROINS Russia. Last year the company has reported GWP of BGN 54.7 million, which is a growth of 29% compared to 2016. All lines of business grow: Property by 39%, Liability by 34%, MTPL by 31%, Accident by 23%, and Motor Hull by 3%. The share of the non-Motor business in the portfolio of the company is 49%. The company records a profit of BGN 198 thousand in 2017.
