STATISTICS: KOSOVO, 1H2019: Market profitability affected by the claims reserves increase

29 August 2019 —
STATISTICS: KOSOVO, 1H2019: Market profitability affected by the claims reserves increase
By the end of the first half of 2019, Kosovan insurance companies have written EUR 48.4 million in GWP, 7.8% more than the level recorded in the first half of the prior year (1H2018: EUR 45 million).

Life insurance GWP increased by 20% y-o-y, reaching EUR 1.8 million. While the increase was notable in terms of year-on-year comparison, life insurance represents only 3.7% of total market GWP of Kosovo, increasing its weight in the market by 0.38 percentage points y-o-y at the end of June 2019.

The non-life sector grew as well, by 7.3% y-o-y, amounting to a total of EUR 46.6 million in terms of GWP. The sector represented around 96.3% of total market GWP. The weightiest non-life class was MTPL, which held a solid share of 55.3% in market's total GWP. MTPL business line increased by 3.4% y-o-y, while the other non-life classes rose by more than 13.1%, reflecting the market portfolio diversification seen in the past years.

Total paid claims amounted to EUR 24.9 million (+11.7% change y-o-y). About 3.7% of this sum was paid for life insurance contracts, while the rest of 96.3% of the total amount was directed to non-life claims.

Total assets of the insurance market amounted EUR 189.9 million in June 2019, increasing by 7.5% y-o-y (1H2018: EUR 176.6 million). Non-life sector held 90.9% of the total assets, while the rest of 9.1% was related to life insurance business. About 47.3% of total assets was owned by insurers with domestic capital, while the other share of 52.7% from total assets was owned by foreign capital insurers.

According to the Central Bank of Kosovo data, the insurance market totaled a net loss of EUR 2.7 million at the end of the first half of current year, mainly attributable to a notable increase in non-life combined ratio, which reached 106.5% (1H2018: 95.6%). Also, a massive increase of EUR 4.9 million in insurance reserves lifted the overall expenses of the insurers. In June 2019, total insurance market income was EUR 42.5 million, while the total expenses exceeded EUR 45.7 million. Life insurance ended the first half of 2019 with a profit of EUR 0.2 million, whereas the non-life sector closed the first six months with a loss of EUR 3.0 million.

Access and download Kosovo insurance market statistics.