EUROINS, FY2019: net profit doubled to BGN 21 million

2 March 2020 — press.release
Euroins Insurance Group (EIG) closed the year 2019 with a net profit of BGN 21.1 million (~EUR 10.8 million), 113% more year-on-year. The group's consolidated gross written premiums reached BGN 848 million (~EUR 433 million), 32% more compared to the same period of prior year.

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.

Euroins FY2019 figures, unaudited, y-o-y changes

  • Total revenues: BGN 1,312 million (+33%)
  • Gross written premiums: BGN 848 million (+32%), of which:
    • GWP Bulgaria: BGN 243 million (+41%)
    • GWP Romania: BGN 530 million (+25%)
    • GWP N. Macedonia: BGN 26 million (+21%)
    • GWP Ukraine: BGN 17 million (+7%)
    • GWP Ukraine Travel: BGN 22 million (+50%)
    • GWP Georgia: BGN 11 million
    • GWP Russia: BGN 56 million (+14%)
    • GWP Euroins Life: BGN 2 million (+30%)
    • GWP EIG Re: BGN 3 million
  • Fees and commissions income: BGN 91 million (+74%)
  • Investment income : BGN 35 million (+32%)
  • Total expenses: BGN 1,241 million (+34%)
  • Claims, claims related expenses: BGN 508 million (+28%)
  • Premiums ceded to reinsurers: BGN 369 million (+40%)
  • Acquisition expenses: BGN 199 million (+32%)
  • Net profit: BGN 21 million (+113%)

Euroins Bulgaria

For 2019 Euroins Bulgaria reported a total vomule of gross written premiums of BGN 243 million (FY2018: BGN 173 million). The reason for the 41% growth was the direct insurance business written both locally in Bulgaria and in Greece and Poland.

The Greek business has been written according to the EU directive for Freedom of establishment, while the Polish one according to the EU directive for Freedom of services.

Main non-motor lines of business reported growth: Accident and Travel (+74%), Liability (+10%) and Agriculture (+12%). Credit and suretyship insurance business has more than doubled compared to 2018. MTPL grew by more than 40%, while Motor Hull grew by more than 12%.

Net earned premiums amounted to BGN 118 million, while net incurred claims reached BGN 54 million.

As a result, Euroins Bulgaria reported profit for group purposes of BGN 6.3 million before taxation (FY2018: BGN 2.3 million). The main reason for the improvement was the stability of the incurred claims and their successful handling, as the company stated. Another contributing factor was the decrease of acquisition and administrative ratio respectively with 1.8% and 0.7%.

"All circumstances above would help the management of Euroins Bulgaria to focus on the challenges at the end of 2019 and the beginning of 2020, which are the introduction by way of enactment of the Bonus Malus system on the local MTPL insurance market and the operational start of the insurance branch in Greece, which as of the date of this report is already a fact," the company mentioned.

Euroins Romania

For the year 2019, Euroins Romania reported gross written premiums of BGN 530 million (FY2018: BGN 425 million). The total GWP growth was mainly driven by the 25% growth in MTPL. However, other non-Motor lines of business also grew: Accident (+34%), Cargo (+17%), Property (+31%).

Net earned premiums amounted to BGN 279 million, while the net claims incurred amounted to BGN 178 million. An increase was observed in the reported claims, which was due to an increase of their number and a slight growth of the average claim paid, mainly determined by the material damages claims increase and inflation, as well as certain legislation changes introduced last year but impacting the current one, Euroins explained.

"In 2018 the Company has invested in a network of loss survey points as well as in a total remodeling of its strategy in claims handling process aiming to improve the customer service and to guarantee high level of customer satisfaction," EIG stated.

For the mentioned period, there was a decrease of 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.

Euroins North Macedonia

For 2019 gross premiums written by Euroins Macedonia grew by 21% reaching BGN 26 million. Main business lines growing were Motor Hull by 10% and MTPL by 6%. The company continued to strengthen its positions in Agricultural insurance with the written business growing significantly to BGN 6.6 million. EIG plans to enter the local Health insurance market as well, with the positive results expected to be seen next year.

Net claims incurred increased as a result of the business growing by 27%. In the same period net earned premiums grew by 20%. Following the initiatives of the company management administrative cost ratio decreased from 7.8% (2018) to 7.4% (2019) and acquisition ratio retained its 2018 levels.

The profit for group purposes was BGN 1.6 million before taxation (FY2018: BGN 1.3 million).

Euroins Ukraine

For 2019, the Ukrainian branch of EIG has written gross premiums of BGN 17 million registering an increase of 7% compared to previous year. The management of Euroins Ukraine has focused on writing quality business that is profitable, resulting in an improvement in the technical result. Despite that, Euroins Ukraine reported a loss for group purposes of BGN 1 million before taxation.

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

European Travel Insurance, Ukraine

European Travel Insurance (ETI) is one of the biggest Travel insurers in Ukraine, specialized in these insurance products only. ETI offers tailor made products developed for its partners in banking and tourist business sectors such as travel agencies and tour operators.

During 2019, ETI has written gross premiums of BGN 21.5 million, which represents an increase with 50% compared to 2018. The profit for group purposes amounts to BGN 4 million before taxation.

Euroins Georgia

Euroins Georgia is specialized in Accident and Health. During 2019 these lines of business accounted for app. 32% of the insurance portfolio of the company, while the rest was split between Motor Hull (29%), MTPL (18%) and other classes.

Total gross premiums written in 2019 amounted to BGN 10.5 million. The result for group purposes was a loss of 544 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 made in the development of own agency network as preparation for the launch of new insurance products on the Georgian market.

The management of the company have a plan of measures established by the Board, which aims at improvement of the operational and financial performance and a 2020 at least on a break-even.

Euroins Russia

Entering the Russian insurance market has been in line with the development strategy of the Group in Central and Eastern Europe. During 2019, the company has written gross premiums of app. BGN 56 million, a 14% increase compared to previous year. The Company reported a profit of BGN 1.1 million.

Euroins Life

Gross premium income of Euroins Life for the period amounted to BGN 2.4 million, reporting a growth of nearly 30% compared to 2018.

The company ended 2019 with a loss for group purposes amounting to BGN 483 thousand before taxation, compared to a loss of BGN 119 thousand in 2018. The main reason for the result was the deterioration of the technical result and more precisely the decrease of net earned premiums and the increase of net claims incurred with the loss ratio, increasing from 58.8% to 64.4% and increase in the acquisition ratio from 27.9% to 39%.


For 2019 EIG Re reported gross premiums of BGN 2.7 million registering decrease compared to 2018 due to restructuring of the inward reinsurance portfolio written by the company in the period. However, the company reported a profit for group purposes of BGN 737 thousand before taxation.

The strategy of the management of Euroins Insurance Group and EIG Re is for the Company 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 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.

Kiril Boshov, chairman of Eurohold Bulgaria's management board, commented on the 2019 results:

"With the performance and results achieved in 2019 we have confirmed the positive trend in our development we have been following for the last three years and continued to expand sustainably our business in Central and Southeast Europe as well as in the CIS countries. We adhere to our growth strategy which is focused on turning Euroins Insurance Group into one of the leading independent insurance groups in the region. The companies we have acquired recently have already contributed positively to the growth of the holding. We also aim at increasing our operating profitability constantly."

More financial information about Euroins Insurance Group can be found at

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