In 3Q2013, the Serbian insurance market totaled RSD 48.8 billion (EUR 425 million), which is a modest increase of 2.9% on a year earlier, according to the data published by the National Bank of Serbia.
Serbian insurers ended 1H2013 with GWP amounting to RSD 34.07 billion, 4.86% up y-o-y in nominal terms. The slight appreciation of the Serbian currency as against the Euro made the market results denominated in European currency show a better dynamic. Thus, GWP amounted to EUR 298.4 million, 6.4% up y-o-y.
Gross premium written by the four Serbian reinsurance companies amounted to a total of RSD 8 billion (EUR 77 million) in 2012, almost 11% up as compared with the previous year. "Dunav Re, which is owned by the state-owned direct insurer DUNAV, is the leading reinsurer with a market share of 38,21% in 2012. WIENER Re, owned by Prague based VIG Re, is holding a market share of 36.78%," told xprimm, Vidan SLANA, CEO WIENER Re a.d.o. Beograd, member of the Vienna Insurance Group.
Serbia's First Deputy Prime Minister Aleksandar Vucic said that the
government's objective is to create a healthy and sustainable economy,
and confirmed that the reform of the pension system will be completed by
the end of winter.
On the Serbian insurance market the first quarter of 2013 didn't bring significant changes, unless the somewhat slowed pace visible both on the life and non-life business side. Thus, the market indicators denominated in local currency show a 2.29% y-o-y overall growth rate in 1Q2012, as compared with the FY2012 growth rate of 7.24%. The same trend is noticeable for the y-o-y comparison, as in 1Q2012 the Serbian's insurance market growth rate stood at 3.9%.
The Serbian arm of France's Societe Generale said it took over the 126
million euros (USD 168 million) credit portfolio of a local unit of
Belgian banking and insurance group KBC, as part of an April takeover
Talks with the International Finance Corporation (IFC) on becoming a
minority shareholder in state insurance company Dunav Osiguranje will be
conducted over the next six months, and if they are not successful, the
government will put the insurer up for sale.
The International Finance Corporation (IFC) is in talks on becoming a
minority shareholder in Serbia's state-owned insurance company Dunav
Osiguranje, with a stake of up to 20%, with the aim to improve the
insurer's corporate governance, according to Finance and Economy
Minister Mladjan Dinkic. This would help Serbia get a better price and
find a good-quality strategic partner for Dunav in the future. He also
said that Cacanska Banka will be sold if it attracts serious interest.
Serbian insurance company Delta Generali Osiguranje said it has signed a deal to sell 100% of the Jedro health centre in Belgrade to MediGroup, a local unit of Blue Sea Capital Fund.
With a 1.3% annual decrease in GWP, the Serbian insurance market mirrored the recession challenging the country in 2012. The mentioned decrease rate corresponds to the market figures denominated in European currency and is obviously affected by the 8% depreciation of the Serbian currency in relation to Euro. Thus, in Serbian Dinars, the insurance market showed a positive evolution last year, of 7.2%.
Police have arrested three people, including a former general manager of Belgrade-based insurance company Triglav Osiguranje, majority owned by Slovenia's Zavarovalnica Triglav, on suspicion that they abused their official position and caused EUR 700,000 in damage to the company, local media reported on Friday.
According to estimates from the Centre for Regionalism, the cost of goods and passengers transfer across the administrative line between Serbia and Kosovo, only in respect of insurance, amounts to about EUR 35 million per year. This organization monitors the implementation of the agreement on the freedom of movement between Belgrade and Pristina, ratified in late 2011.
President of the Management Board of the Slovenian TRIGLAV, Matjaz RAKOVEC, said this company was interested in buying the Croatian CROATIA Insurance and the Serbian DDOR. After only several days, this statement caused a stock price jump of TRIGLAV on the Ljubljana Stock Exchange. The General Manager of DDOR Company, Christian Otto NOE, characterized this statement as a "creation of market rumors before serious business intention was expressed" and said that DDOR was not for sale.
The biggest insurance company in Serbia, DUNAV Insurance Company, will appoint new General Manager as of mid-December: former General Manager Milenka JEZDIMIROVIC, who has held this position since 2009, resigned in early December reportedly for personal reasons. Former Chairman of the Supervisory Board of DUNAV insurance, Marko CULIBRK will replace her, as Acting Director in the next six months.
As in the case of Hungary, Poland, Romania or other insurance markets that are not a part of the Eurozone, or which have pegged the national currencies to the euro - all indicators regarding the Serbian market were affected in 3Q2012 by the devaluation of RSD in relation to EUR.
Insurers in Serbia announce to request a review of constitutionality of the decision according to which they are obliged to allocate 5 percent of the gross premium of automobile liability insurance for the Republic Fund for Health Insurance. This obligation was introduced early this year when the new Article of the Law on Compulsory Traffic Insurance came into force. The Croatian insurers have recently won the case against such a decision, after the Constitutional Court ruled it was unconstitutional. This prompted the Serbian insurers to take a similar step as well: Association of Serbian Insurers announced it would submit a request to the Constitutional Court for review of that decision.
Slovenian reinsurer Sava Re said on Wednesday it has recapitalised Serbian subsidiary Sava osiguranje.
Serbian Parliament adopted the Law amending the Law on Compulsory Traffic Insurance stipulating that an increase in minimum sum insured, for which the compulsory automobile liability insurance for damage caused to third parties can be contracted, is to be postponed for two years: instead of coming into force starting October 2012, the new sums will be applied from October 2014.
Serbian insurance company Takovo Osiguranje will raise its capital by
115 million dinars (USD1.3 million/1.0 million euro), it said.
This autumn, Serbian insurers will ask the Central Bank, the market supervising authorithy, for an increase in policy prices of the compulsory MTPL. The exact amount the insurers will request as a new minimum price is still unknown, but the National Association of Insurers confirmed that their expert services, together with representatives of the Serbian motor insurers, already started conducting analyses. The official request will be submitted to the National Bank of Serbia as soon as the Association's Management Board will agree on the exact amount needed for the minimum tariffs.