Switzerland-headquartered specialty property catastrophe reinsurer
Europa Reinsurance Facility Ltd. has started its operations in Serbia,
B92.net reported. Europe RE's chairman of board, Hansjurg
Appenzeller, said the May floods that hit parts of the Balkan region
caused damage worth around EUR 1.5 billion (USD 1.9 billion) to EUR 2
billion (USD 2.53 billion).
First half of 2014 ended for the Serbian insurance market with a 2.74% growth in GWP, to EUR 306.5 million, a result slightly affected by the currency evolution (4.19% growth rate in local currency). The absolute driver of the market's growth was the life insurance segment which recorded a 17.6% increase in premiums.
Serbia's Deposit Insurance Agency (DIA) invited on Thursday expressions
of interest from insurance companies for taking over the insurance
portfolio of local insurer Takovo Osiguranje which is undergoing
liquidation proceedings. In late July, the National Bank of Serbia (NBS)
delicensed Takovo Osiguranje and petitioned a local court to initiate
French credit insurer COFACE announced it is expanding to the Serbian
market through a partnership agreement with local insurer AXA Nezivotno
Osiguranje. COFACE is present in Serbia since 2007 in both the debt
collection and business information markets.
The Executive Board of National Bank of Serbia (NBS) has taken the decision to revoke the TAKOVO insurance company's license and prohibit the disposal of its assets until the opening of liquidation proceedings. At the same time, NBS filed a proposal for a bankruptcy proceeding to the Commercial Court of Kragujevac (where TAKOVO Osiguranje is headquartered) concerning institution of liquidation proceedings and informed the Deposit Insurance Agency for the purpose of appointing the liquidation receiver.
Serbia's Deputy Prime Minister Zorana Mihajlovic said damage caused by the catastrophic floods in May 2014 has amounted to EUR 1.5 billion (USD 2.03 billion), InSerbia reported.
The price of MTPL insurance in Serbia will rise by 45% as of July 1st. By approving this measure, the National bank of Serbia has accepted a long lasting requirement of insurers that have been asking for the price to increase because the tariff was not high enough to cover all the liabilities arising from claims and other expenses that insurance companies had to pay in accordance with the law.
The Slovenian insurance Group TRIGLAV is very close to buying Serbia's third insurer - DDOR Novi Sad, currently owned by the Italian group UNIPOL-SAI, recently said dnevnik.si. According to the source, the Serbian insurer is worth about EUR 40 million - 80 million.
Until the end of summer Serbia could get a new Insurance Law. The National Bank of Serbia created a new Draft law to undergo a public debate by the end of June, which is also the deadline for insurance companies to provide their suggestions and comments.
After ending 2013 on a positive trend, with a 4.2% growth rate of the GWP, the Serbian insurance market's evolution slowed down in 1Q2014 - 0.11% y-o-y (calculated in European currency) against a 3.2% growth in GWP for the calculations made in local currency, the 3% y-o-y devaluation of the Serbian Dinar paying its part in the apparently stagnating status of the market.
The floods have made the most damage in the mines near Lazarevac. Nine excavators are underwater and the biggest among them worth as much as 30 MEUR.
The Board of Directors of the Association of Serbian Insurers has
decided to grant financial aid in the amount of RSD 1,000,000.00 to the
vulnerable citizens in flooded areas in the territory of the Republic of
Serbia. These funds will be directed to the dedicated budget account of
the Republic of Serbia, and the entire stated amount will be provided
from the budget reserves of the Association of Serbian Insurers.
Serbia's Deputy Prime Minister Zorana Mihajlovic said damage to telecommunications, energy, railway and road infrastructures from the recent floods totals about €260 million ($354.4 million), InSerbia reported.
Within an all-encompassing and thorough reform of our economic and legal
framework, pursuant to its mandate, the National Bank of Serbia has
drawn up the Draft Law on Insurance, Draft Law on Payment Services,
Draft Law Amending and Supplementing the Law on Foreign Exchange
Operations and Draft Law Amending and Supplementing the Law on the
Protection of Financial Services Consumers.
Vienna Insurance Group faces a net hit of just "a few million euros"
from widespread flooding in the Balkans, Chief Executive Peter Hagen
told Reuters on Tuesday.
Serbian insurance market ended 2013 on a positive trend, recording a 4.2% growth rate in GWP terms, to RSD 64 billion (~ EUR 559 million). Due to an impressive increase, of over 18%, life insurance gained a larger share of the market portfolio, reaching a share of almost 22% of the GWP. On the other hand, although still strongly dominating the market, non-life insurance lines' evolution in 2013 may be defined at best as stagnant.
The NBS Administration for Supervision of Financial Institutions has approved the transfer of a part of the life insurance portfolio from MetLife to WIENER Staedtische osiguranje. "Our current business operations, results and position on the market guarantee high quality services, adequate profit and prompt benefit payments to clients of MetLife who hereby have become customers of WIENER Staedtische osiguranje," commented Branko KRSTONOSIC, General Manager of WIENER Staedtische osiguranje on this occasion.
Market share increases to 7.3 per cent in third quarter of 2013. Premium volume for life insurance up 18.5 per cent.
A few days before the year-end, DELTA GENERALI Osiguranje was designated
"The Best Insurance Company in Serbia in 2013" by the British financial
magazine "World Finance".
High professional standards, strong ethical principles, innovation,
commitment to client needs, speed in claims settling, a wide range of
products, as well as customer satisfaction, developed sales network,
achieved results and CSR are some of the parameters which individualized
DELTA GENERALI Osiguranje both on the life and non-life business
Serbian Finance Minister Lazar Krstic said on Monday that amendments to
the Insurance Law would extend the deadline by which insurance companies
have to separate operations relating to life and non-life insurance and
liberalize the natural disaster insurance market.