EUROINS, 9M2019: group revenues rose by 44% y-o-y

4 December 2019 —
For the first nine months of 2019, Euroins Insurance Group (EIG), part of EUROHOLD Bulgaria AD, reported revenues of BGN 962 million (~ EUR 492 million), up by 43.9% year-on-year.

EUROHOLD total revenues between January - September 2019 were BGN 1,160 million (~ EUR 593 million). EIG revenues increased their share in EUROHOLD's total revenues, from 76.8% at 9M2018 to 83.0% at 9M2019, due to a much faster development in the insurance business compared to the other activities of the parent company (automotive, leasing, asset management, brokerage), where the revenues evolved at more moderate rates.

In the third quarter of 2019, Euroins Insurance Group realized consolidated gross written premiums of BGN 617 million (9M2018: BGN 452 million).

The EIG reported unaudited consolidated profit of BGN 14.2 million (before taxes) at the end of the nine months, compared to BGN 13.3 million reported for the nine months of 2018.

In 2018 Fitch Ratings confirmed the ratings that were assigned to EUROHOLD Bulgaria and Euroins Romania in 2017, namely Long-Term Default Rating "B" to EUROHOLD Bulgaria with Stable outlook and Insurer Financial Strength Rating "BB-" with Stable outlook to Euroins Romania. As part of the same process, because Euroins Romania and Euroins Bulgaria were the key components of EUROHOLD Bulgaria, Fitch Ratings assigned Insurer Financial Strength Rating "BB-" with Stable outlook to Euroins Bulgaria as well. And in addition, Fitch Rating assigned the same rating to EIG Re reflecting the expected strategic importance of the company as a captive reinsurer within Euroins Insurance Group.

EIG 2019 nine months figures (vs. 9M2018)

  • Gross written premiums: BGN 617 million (+36%), of which:
    • Bulgaria: BGN 174.7 million (+45%)
    • Romania: BGN 386.3 million (+29%)
    • Macedonia: BGN 20.0 million (+26%)
    • Life: BGN 1.7 million (+22%)
    • Ukraine: BGN 12.4 million (-1%)
    • Ukraine Travel: BGN 16.5 million
    • Georgia: BGN 7.3 million
    • Russia: BGN 40.4 million (+9%)
    • EIG Re: BGN 2.1 million
  • Consolidated profit: BGN 14.2 million (+7%)

Euroins Bulgaria, 9M2019

In the first nine months of 2019 Euroins Bulgaria has reported total volume of gross written premiums (GWP) of BGN 174.7 million (9M2018: BGN 120.57 million). Reason for the growth of 45% is the direct insurance business written both locally in Bulgaria and in Greece and Poland, according to the EU directives for Freedom of establishment and Freedom of services.

The main lines of business have reported growth: MTPL (+41%), Motor Hull (+12%), Accident and Travel (+62%), Health (+31%), Liability (+11%), Agriculture (+23%). Credit and suretyship insurance business has more than tripled compared to the six months of 2018.

Net earned premiums amounted BGN 90.5 million, while net incurred claims were BGN 39.2 million.

Euroins Bulgaria has reported profit for group purposes of BGN 6.2 million before taxation (9M2018: BGN 1.412 thousand). "The main reason for the improvement is the stability of the incurred claims and their successful handling," the company stated. Another contributing factor was the 28% decrease of the acquisition expenses.

Euroins Bulgaria will focus on the upcoming market challenges, which are the introduction of the MTPL Bonus Malus system in Bulgaria and the operational launch of the insurance branch in Greece (which as of the date of this report, November 2, 2019, is already a confirmed fact).

Euroins Romania, 9M2019

In the first nine months of 2019 Euroins Romania has reported gross written premiums of BGN 386.3 million (9M2018: BGN 299.9 million). The total GWP growth was mainly sustained by the MTPL line of business (+32%). However, the non-Motor lines of business have also grown: Accident (+36%), Cargo (+4%), Property (+32%).

Net earned premiums amounted BGN 189.7 million while the net claims incurred were BGN 136.6 million.

There was a decrease in both the acquisition cost ratio and administrative costs compared to 2018. The management has initiated full reorganization of the sales and claim handling processes as well as some back office functions, whose impact will be felt towards the end of the year.

The profit decreased by almost two and a half times, compared to the same period of 2018. The main driver of this unfavorable evolution was the increasing value of net claims incurred.

Euroins Macedonia, 9M2019

At the end of September 2019, gross premiums written by Euroins Macedonia have grown by 26% reaching BGN 20 million. Main business lines growing are Motor Hull (+11%), Cargo (+11%), MTPL (+7%), Accident (+2%) and Liability (+7%). The Company continues to strengthen its positions in Agricultural insurance; the written business on this segment grew significantly, heading to BGN 5.2 million. Euroins plans to enter the Macedonian Health insurance market as well, with the positive results expected to be seen next year.

Net claims incurred have increased by 30%, while the net earned premiums have grown by 21%.

Following the initiatives of the company management, administrative cost ratio has decreased to 7.2% (9M2018: 8.1%).

The profit attributable to the group was BGN 1.273 thousand before taxation (9M2018: BGN 1.050 thousand).

Euroins Life, 9M2019

Gross premium income of Euroins Life for the period amounted to BGN 1,691 thousand reporting growth of nearly 22% compared to 2018.

The Company reported a profit for group purposes of BGN 213 thousand before taxation compared to a loss of BGN 657 thousand in 2018. The main reason for the favorable evolution was the improvement of the technical result, more precisely the increase of net earned premiums and the decrease of net claims incurred. The loss ratio dropped from 62% to 54%. The investment result was also an important contributing factor to the profit.

Euroins Ukraine, 9M2019

In the first nine months of 2019 the Company has written gross premiums of BGN 12.4 million registering a decrease of 1% compared to last year. The management of Euroins Ukraine has focused on writing quality business that is profitable. As a result, there was an improvement in the technical result. Despite that, the Company has reported a loss before taxation for group purposes of BGN 1,277 thousand.

In addition, there were also the initiatives undertaken by the management to develop new risk and claims handling processes, as well as insurance fraud prevention measures, all of which should improve the performance of the Company in mdium term.

EIG Re, 9M2019

For the nine months of 2019 EIG Re has reported gross premiums of BGN 2,058 thousand registering decrease compared to 2018, due to restructuring of the inward reinsurance portfolio written by the Company in the period. As a result, there was a loss before taxation for group purposes of BGN 141 thousand.

The strategy of the management of EIG Re is to continue its development as a reinsurer. The foundations were laid down in 2017, when the first proportional and non-proportional insurance treaties were signed off. There were also several series of initiatives in 2018 to analyze the potential for the development of EIG Re also as a captive reinsurer optimizing the entire reinsurance program of the Group. One of the starting points of these projects was also a possible participation of EIG Re as captive reinsurer in the optimization of the capital requirements of the Group and its subsidiaries in the context of Solvency II.

European Travel Insurance, Ukraine, 9M2019

European Travel Insurance (ETI) is one of the top Travel insurers in Ukraine and is the only one that specializes only in these insurance products by offering them both to individual and to corporate clients. ETI offers tailor-made products developed for its partners in banking and tourist business sectors such as travel agencies and tour operators.

In the first nine months of 2019 the Company has written gross premiums of BGN 16.5 million. The profit for group purposes amounts to BGN 3,899 thousand before taxation.

Euroins Georgia, 9M2019

The acquisition of Euroins Georgia is part of the strategy of Euroins Insurance Group for development in the region where markets have huge growth potential. Insurance Company Euroins Georgia is specialized in Accident and Health.

Total gross premiums written in the nine months amount to BGN 7,268 thousand. In the first nine months of 2019, Accident and Health lines of business account for about 27% of the insurance portfolio of the Company, while the rest is split between Motor Hull (31%), MTPL (19%), Property (6%), Cargo (4%) and others.

The result for group purposes is a loss of 796 thousand before taxation. The main reason for the loss is the small premium earnings coming from the new business written predominantly in Motor Hull and Property in 2019, as well as the investments put in the development of own agency network.

Euroins Russia, 9M2019

Entering the Russian insurance market has been in line with the development strategy of the Group in Central and Eastern Europe.

In the first nine months of 2019 the Company has written gross premiums of BGN 40.4 million, showing a 9% increase compared to previous year volume. The Company has reported a profit of BGN 1,575 thousand after taxation.

Kiril BOSHOV, Chairman of EUROHOLD Bulgaria's Management Board, commented on the results:

"The operating figures achieved are valuation for good, consistent and stable management. We'll continue to pursue the development strategy we have chosen which includes acquisitions on our existing markets as well as takeovers on new markets if there are appropriate options. The successful deals we have signed for the last couple years, contributed largely to our business growth. We are satisfied that the expansion we have started in our new markets in the CIS countries since 2015, has already paid off. The three countries we are operating within this region (Russia, Ukraine and Georgia), generate more than 15% of the revenue and over 30% of the profit of EIG, our insurance subholding. The results achieved are a clear indicator that Eurohold is capable of acquiring, integrating and managing new businesses in new markets."

More financial information about EUROHOLD and EIG can be found at