STATISTICS: BULGARIA, FY2014: The insurance market increased by 2.6% y-o-y driven by the double digit growth rate reported on life segment

2 April 2015 — Vlad BOLDIJAR
Statistical data published by the FSC - Financial Supervision Commission indicate for the financial year 2014 an 2.6% y-o-y increase of the Bulgarian insurance market to EUR 907.4 million. Life insurance market totaled EUR 174.1 million or 11.3% more y-o-y due the increase of traditional segment by 10%, while the non-life insurance sector generated about 80% of the total insurance market, the equivalent of EUR 733.3 million, up by 0.8% compared to FY2013 figures.

By the criterion of weight in all market, among all non-life insurance classes, MTPL held about 31% of total, followed by motor hull (24.3%) and property insurances which accounted for more than 15% of the market. In terms of growth rates, health insurance segment and travel policies reported the largest increases (+19.9%, and +23.7%), while damages to property class and Motor TPL recorded the largest negative dinamics: -16.2%, and -5.1%.

In terms of paid claims, the aggregate market value was EUR 493.5 million, 13.9% more y-o-y. This growth rate was driven by the damages caused by the extreme weather events occurred during the summer on the Black Sea coast: property claims increased by 51% y-oy, motor hull claims was up by 24%, while claims for the railway, aircraft and ships lines (summed) went up by more than 46%.

According to the Bulgarian FSA data, non-life insurers ended the year with an aggregate profit of EUR 7 million (vs. EUR 34 million in 2013). Last year, of 30 non-life insurers, 19 reported profits, while the remaining 11 ended the year "in red". The most profitable insurers were ENERGIA (EUR 11.6 million), BUL INS (EUR 4.5 million) and VICTORIA (EUR 4.2 million), while the largest losses in profit were reported by BULSTRAD VIG (EUR 5.2 million), ARMEEC (EUR 5.1 million) and GENERALI (EUR 4.7 million).

On the life insurance side the market recorded a better profitability, with an aggregated profit after tax amounting to EUR 16.5 million (vs. EUR 5.4 million in 2013). According FSA figures, last year, 14 insurers ended the year "in black", while the other two players reported losses: JZI (EUR 155 thousands) and BULSTRAD Life VIG (EUR 388 thousands). The most profitable life insurers were DZI Life Insurance (EUR 4.8 milion), followed by ALLIANZ Bulgaria Life (EUR 4.4 milion) and UBB ALICO Life (EUR 3.4 million).

According to the local media, the lack of positive prospects of Bulgarian insurance market is one of the main factors driving foreign investors away. In the past two years, QBE and ACHMEA left the market, their subsidiaries being aquired by the local insurance group EUROINS, while a month ago EUROINS has received regulatory approval to take full control of HDI Zastrahovane, the Bulgarian unit of Germany-based TALANX International. FOCUS News Agency noted that other large European insurance companies with Bulgarian subsidiaries - GENERALI and ALLIANZ - intend to leave the market. At the same time, there have been rumours about the intentions of KBC to sell DZI for several years.

Access and download the FY2014 Bulgarian insurance market statistics (in EUR and BGN).
  • Gross written premiums
  • Paid claims
  • Growth rates
  • Life and non-life rankings

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