BUL INS IS AGAIN AMONG THE TOP INSURERS
Bul Ins is ranking fourth at the Bulgarian general insurance market for a second year. This is indicated by the financial results, reported on April 3, 2001, at the General Assembly. Bul Ins 2000 premium revenue amounts to BGL50.634MN, which is a grouth of 74% Y/Y, said to the Banker weekly Yordan Kiffov, Cheif Executive Director. We rank four in terms of volume of premium revenue, but we are number one in car insurance, financial risks insurance, and medical insurances for travelling abroad.
According to Kiffov, if the mandatory insurance income is deducted from the total premium revenue, Bul Ins will be number one at the general insurance market. At present, according to company experts calculations, its market share is 14.93%.
The compensation paid in 2000 by the insurance company amount to BGL22.441MN, and tax paid - BGL3.405MN. The insurance reserves Bul Ins has allocated last year amounted to BGL16.391MN, or exceeding the 1999 amount by 72%.
Bul Ins is famous as car insurance company, but according to Kiffov this will change. While in the past 80% of the company portfolio belonged to car insurances, in 2000 their share dropped to 55.33%.
Compared to many other companies this share is rather low. Besides the Casco insurance, the company has stable sales of the so called lease insurances of the General Financial Losses type, which represent 35.19% of the company portfolio. The company has implemented the philosophy of offering a limited number of services, but at a favourable price. Indicative is the fact that Bul Ins offers just nine of the eighteen major types of insurances, stipulated by the law. Besides, as Kiffov explained, a fourable price is not necessarily the lowest at the market. According to him the company offered the most expensive Casco insurance at the market, but the customers were looking for it because of the high quality services. We do not launch special advertising campaigns. According to Kiffov the best advertisement for them was the satisfied customer, who'd come back and would recommend us to their freinds. According to Bul Ins managers, their colleagues from other companies have also supported them in reaching good results in car insurance. They were complaining of the high car steeling rate and the low rate of finding them. Unlike the other companies, Bul Ins reported a reduced car steeling rate in 2000 for the cars it has insured.
Bul Ins expansion forced its shareholders to increase its capital. Six months ago the shareholders capital was BGL4MN, out of which BGL3MN were actually paid. In the end of 2000 the General Assembly made the decision to increase its capital to BGL7MN, and according to its managers it has been collected effectively. For the moment they do not plan to apply for re-insurance licence, although it is a part of their long-term plans.
Last year Bul Ins opened seven new branches - four of them are in Sofia, and the other three in Plovdiv, Varna and Bourgas, respectively. Till now the company was not operating through a branch network, but through licenced brokers and insurance agents, explained Yordan Kiffov. From this year on we intend to establish our own network of branches. We have neither specified the number of representative offices we'd open, nor the places. Everything would be a result of our business development in the current year - we are going to open branches at the places we have big turnover from insurance and numerous customers, added Kiffov.