STATISTICS: BULGARIA 3Q2014: GWP and claims paid increased by similar amounts; non-life profitability on the edge
Life insurance saw a 8.3% increase in GWP, to EUR 125 million, mostly driven by the "life insurance and annuities" class which recorded an increase of 7.3% in GWP, while the decline on the unit-linked segment continued , with GWP decreasing y-o-y by almost 18%. The growth in GWP was also accompanied by a significant growth in the indemnities paid for life insurance. In fact, in absolute terms, the increase recorded on the claims side exceeded the GWP surplus.
Non-life insurance GWP went up by almost 4%, to EUR 533.4 million, most of the premiums' increase coming from the motor insurance lines which generated over 60% of the extra premium volume reported by the market as compared with 3Q2013.
Still, it is interesting to observe that the EUR 20.4 million increase in the non-life GWP was somehow "compensated" by a similar increase in the paid claims volume (EUR 20.87 million), mostly driven by the damages caused by the extreme weather events occurred during the summer: Motor Hull claims increased by EUR 13 million, while claims for the "fire and allied perils" line went up by more than EUR 8 million.
According to the Bulgarian FSA data, non-life insurers ended the first three quarters of 2014 with a EUR 0.70 million profit from the ordinary activities. However, after paying corporate taxes of EUR 0.73 million, the market closed 3Q2014 with an almost "null score", the aggregate profit amounting to only EUR 66,100.
On the life insurance side the market recorded a better profitability, with an aggregated profit after tax amounting to EUR 15.98 million.
Access www.xprimm.com and download the 3Q2014 Bulgarian insurance market statistics (in EUR and BGN).
- Gross written premiums
- Paid claims
- Growth rates
- Life and non-life rankings