A.M. Best Europe - Rating Services Limited has affirmed the financial strength rating of B+ (Good) and issuer credit rating of "bbb-" of Bosna Reosiguranje d.d. Sarajevo (Bosna Re) (Bosnia and Herzegovina). The outlook for both ratings remains stable.
Bosnian insurance company Bobar Osiguranje said on Thursday it decided to decrease its capital by 12.4% to cover losses.
Bosnian insurance company Bobar Osiguranje said on Thursday it decided to decrease its capital by 12.4% to cover losses. Bobar Osiguranje's share capital will be cut to 13.073 million marka ($8.5 million/6.8 million euro) from 14.919 million marka, the company said in a filing with the Banja Luka Stock Exchange.
"Austrian insurance group UNIQA said its profit from ordinary activities in Bosnia and Herzegovina rose to 309,000 ($408,790) in 2011 from 267,000 a year ago.
"BiH is still far from achieving significant results in terms of approximation with EU standards which call for effective and uniform enforcement of single and more sophisticated rules on the entire European market for the benefit of the consumers and ensuring higher level of financial stability. Bosnia and Herzegovina and its insurance sector will also need to address these challenges", said Renzo DAVIDDI, Deputy Head of the EU Delegation to BiH on the occasion of the closing ceremony of the project "EU Support for Sustainable Capacity Building of the Insurance Agency of BiH and the FBiH and RS Insurance Supervisory Agencies", held on the 18th April 2012, in the premises of the Parliamentary Assembly of Bosnia and Herzegovina in Sarajevo.
Bosnian insurance company Dunav Osiguranje [BANJ:KDVO-P-A] said on Wednesday its net profit plunged to 140,002 marka ($96,390/71,580 euro) in 2011 from 422,203 marka a year earlier.
Bosnian insurance company Krajina Osiguranje said on Wednesday its net profit surged to 1.7 million marka ($1.1 million/869,200 euro) in 2011 from 32,122 marka a year earlier.
The Bosnian insurance market finished 2011 with a positive GWP growth rate, of 3.4%, up to EUR 249.5 million. Insurers domiciled in Srpska Republic (RS) managed to place an aggregated growth rate of 7.12%, up to EUR 67.15 million GWP, while their peers registered in Federation of Bosnia & Herzegovina reported a 2.1% positive change of the written premium volume, to EUR 182.4 million. Consequently, RS insurers' weight in the overall Bosnian insurance market grew by about 1 percentage point, to almost 27%.
Bosnian insurance company Dunav Osiguranje said on Friday it has cut its capital by 3.758 million marka ($2.4 million/1.9 million euro) to 12.725 million marka to cover losses.
UNIQA Osiguranje succeeded in increasing its premium volume in Bosnia and Herzegovina during the first nine months of 2011 to EUR 15.2 million (BAM 29.7 million), said by the end of December the insurance group. With a growth of 14%, this means they outdid the market's development (+2.5%) by more than five times. This puts UNIQA in fourth place among 25 insurers in Bosnia and Herzegovina.
The Insurance Agency of Republika Srpska has prohibited the issue of new policies for automobile liability insurance by insurer BSO (Bosna Sunce osiguranje) in the territory of smaller entity of BH in the next 60 days due to frequent violations of the premium system.
The total value of gross written premiums of insurance companies active in the two administrative entities that make up Bosnia and Herzegovina (Federation of Bosnia and Herzegovina and Republika Srpska) stood, in the first nine months of this year, to EUR 190 million, up by 3.8% compared to January-Sptember 2010.
In the first nine months of 2011, Sarajevo osiguranje saw the biggest increase in market share, among insurance companies in Federation.
The shareholders of Banja Luka insurer Krajina osiguranje, in which the entity government of Republika Srpska (RS Equity Fund) has controlling interest, rejected the company's business report for 2010 yesterday due to a number of irregularities identified by an independent auditor.
"Insurance companies in Republika Srpska reached a unanimous agreement yesterday to suspend all direct and indirect discounts and the benefit of a free technical inspection for vehicles, in order to protect the interests of RS, its insurance companies and the insured clients", the entity Chamber of Commerce said.
The debt for contributions which should be paid by every employer reach around BAM 710 million in Federation, the head of the entity's Pension and Disability Insurance Institute (PIO/MIO) said, on the basis of official records.
VIG announced on October 20th, 2011, that it is the new majority
shareholder in the JAHORINA insurance company in the Republic of Bosnia
and Herzegovina. VIG has acquired approximately 91.7% of the company's
overall capital and approximately 96.6% of the voting shares in the
company, which results in the entry of VIG on its 25th market. "VIENNA
Insurance Group will subsequently issue a takeover bid to all remaining
voting shareholders of the company in accordance with local
legislation", stated the press release.
"Insurance companies based in Republika Srpska paid total BAM 25 million in insurance claims by the end of August, and the share of life insurance was under BAM 1 million. Automobile liability insurance claims accounted for the biggest share of payments - BAM 16.1 million.
The VIENNA Insurance Group has signed a contract to acquire a majority stake in the insurer JAHORINA Osiguranje in the Republic of Bosnia-Herzegovina; thus, the Austrian insurance group will be represented in 25 markets in the region.
Government of Bosnia's Republika Srpska gave approval in Tuesday for long-term debt of the Pension Fund (PIO) of this entity to 35 million euros in order to ensure full liquidity of the fund and the regular payment of pensions in the RS. Government gave full support to the implementation of the Strategy of pension and disability insurance, adopted last year, which implies the adoption of the new law about dpensions, which is expected later this year.