Bulgaria
Bulgarian insurance market
The top 5 insurance groups generated around 57% of the total premium volume in Bulgaria in the first three quarters of 2020. The two largest insurance groups generated around 27%.
Market growth in the 1ST to 3RD Quarters of 2020 compared to the previous year
Source: Bulgarian Financial Supervision Commission (FSC)
The Bulgarian insurance market recorded a small year-on-year decline of 0.9% in local currency terms in the first three quarters of 2020. Around 85% of the total premium volume in the Bulgarian insurance market is generated by the non-life sector, which grew 1.7% in the first nine months of 2020. Premium volume in the life line of business fell 13.3%.
Motor third party liability insurance generated around 46% of the premium volume in the non-life sector. It grew 0.4% year-on-year in the 1st to 3rd quarters of 2020, contributing mainly to the growth in the non-life sector. Motor own damage insurance recorded a decrease of 0.1%. The non-motor lines of business recorded an increase of 5.8%.
The drop in life insurance was due, among other things, to sharp declines in traditional life and annuity insurance (-14.0%) and health insurance products in the life sector (-35.9%).
Unit-linked and index-linked life insurance, on the other hand, increased 5.0%.
An average of EUR 27 per capita was spent on life insurance in Bulgaria in 2019. Around seven times as much, EUR 186, was spent on non-life insurance. According to Axco Global Statistics, this corresponds to a total per capita premium of EUR 213 per year for insurance services.
Market shares of the major insurance groups
Source: Bulgarian Financial Supervision Commission (FSC); as of 9M 2020
VIG companies in Bulgaria
The three insurance companies Bulstrad Life, Bulstrad Non-Life and Nova are represented in the Bulgarian insurance market. Together they have a market share of 14.0%. That makes the VIG insurance companies the leading insurance group in Bulgaria. They hold second place in both the non-life and life sectors. The PAC Doverie pension fund also belongs to VIG Insurance Group.
Financial performance indicators in the Bulgaria segment
Premiums by line of business
Values for 2019 in parentheses
Premium development
EUR 199.6 million in premiums were written in the Bulgaria segment in 2020, representing a year-on-year decrease of 10.8% (2019: EUR 223.9 million). This development was primarily due to the decline in premiums in health insurance. Net earned premiums were EUR 145.3 million in 2020, 5.6% higher than the previous year.
Result before taxes
A loss of EUR 36.7 million was recorded in the Bulgaria segment in 2020 (2019: profit before taxes of EUR 15.8 million). This was primarily the result of a goodwill impairment of EUR 59.8 million performed in the first half of 2020.
Combined ratio
The combined ratio improved in 2020 to 91.2%, mainly due to better claims development (2019: 95.8%).