INSURANCE SECTOR KEEPS ON ITS UPWARD TREND
For a ninth month in a row BULSTRAD managed to maintain its first place in premium incomes amongst the licensed general insurers in Bulgaria
For the first three quarters the insurance premium income of the company exceeds BGL50MN, which represents 22.38% market share. These financial indicators show that BULSTRAD has regained its leadership in general insurance, mostly questioned in the past year or two. By the end of 1999 the company ranked third, with a market share of just 17.12%.
Should BULSTRAD be able to keep the pace, by the end of December its financial results will amount to approx. BGL67-68MN, and this figure would grant the company the leadership in general insurance.
Allianz-Bulgaria is second, as it was last year. Insurance premiums for the first three quarters amount to BGL42.3MN, and its market share is 18.93%. For comparison, in 1999 these indicators for the Bulgarian-German insurance company were BGL49.77MN and 17.89% respectively. This means that the increase in the Allianz-Bulgaria activity is about 12%. Its managers expect the insurance premium income to swell to about BGL58MN, and its market share to overcome the 20% barrier.
The State Insurance Institute (DZI), which was the last year insurance market leader, was ousted to the third place. Experts in this area consider this to be the biggest sensation since the beginning of the year. The income of the state-owned company for the nine months of the year amounts to BGL40.5MN, which accounts to a 18.13% market share. Last year DZI held 24.96% market share of the insurance market and its insurance income amounted to BGL69.44MN. Most optimistic forecasts show that by the end of the year the income of the State Insurance Institute will be about BGL54MN. That means a drop of about 20%.
Bul Ins Insurance Company has also considerably increased its participation at the market, having received incomes exceeding BGL31MN. Just for comparison, for the whole 1999 the insurance premium amounted to BGL28.523MN. Its market share is 13.88%, ranking it fourth.
The activity of the life insurance companies increased by the fantastic 30%. For the three quarters of 2000 they have received total premium income of BGL31.6MN. Having in mind the economic stagnation at the local market, the financial results of this sector for the first nine months of the year are a virtual surprise - during the last two years life insurance business was simply sagging. The explanation of this positive trend could be based on the fact that last year tax burden for life insurance companies loosened up. It is, however, still too early and too difficult to make a forecast about the impact which the new pension insurance scheme might have upon life insurance activities.