BiH: Regulator temporarily suspended AURA Sarajevo MTPL license

17 December 2019 — Cosmin CONCEATU
On December 11, 2019, The Insurance Supervision Agency of the Federation of Bosnia and Herzegovina announced the temporary withdrawal of AURA license to perform MTPL business in Tuzla Canton.

The period of suspension will be applied for 60 days, starting December 16, 2019 and ending in February 13, 2020. During this period, the Sarajevo branch of AURA Banja Luka will be prohibited to conclude motor third party liability insurance contracts with the residents of Tuzla Canton.

In the meantime, FBiH Insurance Supervision Agency will conduct an investigation on the company, analyzing the insurance activities of AURA, suspected of breaching the regulations governing the area of insurance. The decision to suspend the MTPL business line of AURA came as a measure to protect the consumers, the authority explained.

At the end of June 2019, for six-months ended, AURA Banja Luka held the 16th place in BiH insurance companies leaderboard (including both FBiH and RS companies) ranked by their total GWP volume, with BAM 11.1 million (~EUR 5.7 million) in premiums, ending the first half of 2019 with a premium volume 31.9% bigger year-on-year. AURA was the fastest growing major player from the market in terms of premium growth.

According to FBiH insurance market supervisor's data for 2018 and the latest company financial report for January - December 2018, the portfolio of AURA was comprised of almost 91% MTPL. MTPL GWP of the company amounted at the end of December 2018 close to BAM 16.8 million, increasing by 28.0% year-on-year, being the core business line of the insurer.

AURA Banja Luka ended 2018 with an operating income of BAM 16.9 million (+23.9% y-o-y) and a net profit of BAM 1.4 million (+12.3%).

Sources: nados.ba, auraosiguranje.com, XIR 1H2019

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