Six big insurers with total losses of BGN 85 mln in 2010

Six general insurance companies reported losses of nearly BGN 85 mln for 2010, showed data of the Financial Supervision Commission (FSC). According to statistics, the highest negative financial result last year was reported by Bulstrad Vienna Insurance Group, its loss standing at BGN 30.6 mln, followed by Lev Ins Plc with a loss of BGN 25 mln, Bulgarian Property Insurance Company Plc – BGN 19.1 mln, Uniqa Insurance Plc, Euroins Insurance Group and Interamerican Bulgaria.

Despite the negative data, 13 companies in the sector posted profits, those of two of them exceeding BGN 10 mln. The top performers in 2010 were Energy Insurance Company and Allianz Bulgaria, their positive financial result standing at BGN 23.92 mln and BGN 11.16 mln, respectively. The profits of companies, however, failed to compensate the accumulated losses and at the end of 2010, the companies offering the most popular automobile and property insurances reported losses amounting to BGN 16.4 mln.

A year earlier, six insurers reported negative financial results, but the branch as a whole registered a profit of BGN 26.7 mln, while in 2008 the entire sector’s losses stood at just BGN 6.31 mln.

FSC experts reported that the insurers’ losses from core activities increased almost 6-fold to BGN 43.4 mln, compared to BGN 7.7 mln in 2009. According to them, this was due to the overall contraction in the sector and the losses from automobile policies.

Last year, the general insurance market shrunk by 5.1% and at the end of December the gross premium income totalled BGN 1.38 bn, the car insurance segment accounting for 71.3% of it. Moreover, the premium proceeds from the compulsory Civil Liability insurance grew by more than 10%, while proceeds from Auto Casco declined by more than 17%. Reserves that companies set aside in order to ensure the payment of compensations rose by more than 8% within a year, to BGN 1.376 bn.

Life insurers showed better performance, FSC said. In 2010, the companies in the industry reported profits of BGN 22.7 mln. The largest share in the premium incomes from life insurance was that of Insurance and Annuities - 76.9%. The companies made BGN 14.76 mln in profits from their core business, registering a 24% increase from a year earlier.

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