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

Bulgaria – Market growth in the 1st to 3rd quarters of 2020 compared to the previous year (bar chart)

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

Bulgaria – Market shares of the major insurance groups (ring chart)

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

Bulgaria – Premiums by line of business (ring chart)

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%).