BULGARIA, 1H2012: A half year in red

26 September 2012 — Vlad BOLDIJAR
bulgaria-statisticsThe gross written premiums realized by Bulgarian insurers in 1H2012 amounted to BGN 796 million (EUR 407 million), declining by 2.5% on an annual basis, showed the financial data report recently published by the Financial Supervision Commission. At the end of 1H2011, the same indicator reached EUR 417.6 million, when the market increased by almost one percent (0.8%).

At the end of June 2012, general insurance amounted to BGN 666 million (EUR 341 million), recording a reduction of 3% on a year-on-year basis. At the same time, the gross premiums written by the life insurance companies amounted to almost BGN 130 million (EUR 66.2 million), decreasing by 0.1%.

The life insurance share is one of the indicators reflecting the level of development of the insurance market as a whole. In mature countries, life insurance forms account for more than 50% of the overall insurance business. In Bulgaria, the insurance market is dominated by non-life insurance, whose share in 1H2012 decreased to 83.7%, compared to 84.1% at the end of June 2011.

Motor insurance was the biggest line of business, with a 59% share. The premium income realized by the Bulgarian motor insurers amounted to BGN 470 million (EUR 240 million), compared to BGN 492 million in 1H2011. This decrease can be explained by the second successive semester in which a fall in the motor hull insurance class premium income was reported: in January-June 2012, the GWP from Motor Hull insurance amounted to BGN 208 mil. (EUR 106.5 million), a decrease of 6% y/y being registered, compared to a decrease of 12% for 1H2011 vs. 1H2010. At the same time, the GWP from MTPL registered a decrease of 3.4% year-on-year and amounted to BGN 261 million (EUR 133.5 million). Other important insurance classes on the Bulgarian market included property insurance (fire and natural forces and other property damage) which held a 15.0% share of the entire insurance market.

The paid claims in non-life insurance reached BGN 330 million (EUR 169 million), recording a 3.7% increase on an annual basis. Also, thirteen insurers (out of 18 active ones) recorded an increase for this indicator. In the structure of the paid compensations by class of insurance, the biggest share of 38.6% was held by the MTPL, followed by motor hull (35.2%) and property insurance (8.8% share).

As far as life insurance is concerned, in regard to the portfolio structure of life insurance companies by insurance classes, no substantial change was observed in comparison with 1H2011 and the traditional segment continued to hold a major share (12.1% of the total market or almost 75% of total life GWP).

The sums and compensations paid by life insurance companies reached BGN 48.10 million (EUR 24.6 million), compared to BGN 51 million in 2011. In the total structure of the paid claims, the biggest share was held by traditional life insurance - BGN 36.5 million, while in the case of unit-linked contracts, the payments totaled BGN 3.5 million.

According to Bulgarian FSC, there are 34 active insurers in Bulgaria, out of which 18 represent general insurance companies and 16 - life insurance companies.

The leader of the non-life segment was LEV INS, with a market share of 13.3%, followed by BULSTRAD VIG (13.0%) and ARMEEC (12.5%).

Regarding the life segment, the first three places are occupied by ALLIANZ Bulgaria Life (21.0%), DZI (14.0%) and BULSTRAD Life VIG (12.5%).

Access www.xprimm.com and download the 1H2012 Bulgarian insurance market statistics.

Market portfolio (in EUR and BGN):
  • Gross written premiums
  • Paid claims
  • Growth rates
  • Life and non-life insurance companies portfolios
Market rankings (GWP/Claims/Market shares/Growth rates - in EUR and BGN):
  • Life insurance ranking (total/traditional life/unit-linked)
  • Non-life insurance ranking (total/MTPL/motor hull)

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