Insurers’ assets surge 50% in 2009

The assets of insurance companies increased 2.62% in the fourth quarter of 2009, year on year, Bulgarian National Bank data show. Assets reached BGN 164.6 million in Oct-Dec 2009, compared with BGN 160.4 million a year earlier. The assets of the insurance and health insurance companies at the end of 2009 stood at BGN 3.98 billion, up 49% on an annual basis. The rise was due to better fund management, Bul Ins executive director Stoyan Prodanov said. Reserves were kept in different instruments and that resulted in a rise in assets.
Portfolio Companies in the sector prefer to invest more funds in bonds and government securities. In the last three months of last year, the funds invested in securities other than shares stood at BGN 118.3 million, up 331.75% year on year. For the full 2009 insurers invested BGN 1.36 billion in such instruments, i.e. 104.4% more than in 2008. Bonds and government securities made up 34.1% of assets. Government bonds are the most reliable instrument at present, Bulstrad’s CEO Rumen Yanchev said. Some 27% of the assets were deposited with banks. Last year insurers placed BGN 1.07 billion with banks, up 45.9% year on year. In the fourth quarter of 2009 deposits went up 32% to BGN 85.8 million.

Crisis Companies’ assets invested in equities declined BGN 6.4 million in the last three months of 2009. In 2008 they dropped BGN 29 million. Stock investment stood at BGN 364.1 million at the end of December, while at the end of September it amounted to BGN 370.5 million. Shares accounted for 9.2% of the insurers’ assets at the end of 2009. Shares were the most popular investment instrument before the crisis but now people refrain from buying them.

Finance

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