Romanian MTPL's market stabilization pushes the EIG's business down by 10%

26 November 2018 — Andrei Victor
The Bulgarian holding EROHOLD said its 3Q2018 revenues from insurance activity amounted to BGN 667.3 million (EUR 342 million). Compared to the same period in 2017, the revenues from insurance activity decreased by 6.6%.

The insurance operating expenses for the period under review decreased by 6.7% to BGN 618.8 million compared to BGN 663.2 million at the end of the comparable period. At the same time, EUROINS Insurance Group - EUROHOLD's insurance arm - realized a consolidated operating profit in amount of BGN 48.5 million compared to BGN 51.7 million as of 30.09.2017.

In terms of GWP, EIG has reported consolidated gross written premiums of BGN 451.8 million compared to BGN 499.9 million / EUR 231.7 million for the same period of 2017. "Reason for the decrease is the business written by EUROINS Romania. All other subsidiaries have registered growth. The Group has reported an unaudited consolidated profit of BGN 13.3 million compared to a profit of BGN 24.5 million in Q3 2017", as EUROHOLD announced in its quarterly report.

Per subsidiaries, EUROINS Bulgaria has reported total GWP of BGN 120.6 million / EUR 62 million compared to BGN 104.5 million written in 2017. "The reason for this growth of more than 15% is the direct insurance business written through brokers both locally in Bulgaria and in Greece, Italy and Spain according to the EU directive for Freedom of services". MTPL line of business grows but so do also main non-motor lines such as Health (57%), Accident and Travel (21%), Cargo (1%).

EUROINS Romania has written total GWP of BGN 300 million / EUR 154 million compared to BGN 372 million in 2017. "The decrease is a result of the stabilization of the Romanian MTPL market after two years of significant increase of the average premium". Unlike the Motor business the major non-Motor lines of business such as Liability (36%), Accident (14%), Property (8%) and Cargo (3%).

In Q3 2018 gross premiums written by EUROINS Macedonia have registered a growth of over 17% reaching BGN 15.9 million. Main business lines that grow are Cargo by 10%, Motor Hull - 6.2%, MTPL - 4%, Property - 4%.

In the first nine months of 2018 EUROINS Life has written total GWP of BGN 1.4 million registering growth of more than 20% compared to Q3 2017, while EIG Re has written gross premiums of BGN 12.1 million showing growth of more than 10%.

EUROINS Ukraine 3Q2018 GWP amounted to BGN 12.3 million, which is a growth of more than 79%, while EUROINS Russia 9 months GWP totaled BGN 35 million.

About two months ago, EIG acquired another Ukrainian insurer - ERV Ukraine - from ERGO, the shares being officially transferred on October 1st, while on 23 October the Bulgarian insurer acquired 50.00002% of one of the leading insurers in Georgia - IC Group.

Exchange rate: 1 EUR = 1.95583 Leva - BGN (fixed)

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