Inflation does not affect the profits of insurance companies

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There are currently 20 insurance and reinsurance companies operating in Serbia, and as many as 15 of them are majority foreign owned. According to data from the National Bank of Serbia, the total premium of insurance companies in the second quarter of 2022 amounted to 67.6 billion dinars, which represents an increase of 11.8 percent compared to the same period of the previous year.

Out of a total of 20 companies, 16 companies deal exclusively with insurance business, while four companies deal with reinsurance business. Foreign-owned companies record the predominant participation in life insurance premiums with 86.2 percent, non-life insurance premiums with 61.2 percent, total assets with 73.1 percent, and in the number of employees with 65.2 percent.

There are currently 20 insurance and reinsurance companies operating in Serbia, and as many as 15 of them are majority foreign owned. According to data from the National Bank of Serbia, the total premium of insurance companies in the second quarter of 2022 amounted to 67.6 billion dinars, which represents an increase of 11.8 percent compared to the same period of the previous year.

Out of a total of 20 companies, 16 companies deal exclusively with insurance business, while four companies deal with reinsurance business. Foreign-owned companies record the predominant participation in life insurance premiums with 86.2 percent, non-life insurance premiums with 61.2 percent, total assets with 73.1 percent, and in the number of employees with 65.2 percent.

“In the second quarter of 2022, there were no changes in the ranking of the five largest insurance companies in terms of total premium and life insurance premium, which in the total listed categories of all insurance companies participate with 75.9 percent and 83 percent, respectively . However, there was a change in the ranking of the five largest insurance companies, viewed according to the amount of non-life insurance premiums, which account for 76.8 percent of the premiums of this segment of the market”, according to the latest NBS report on insurance sector operations.

When it comes to participation in the total premium, Dunav osiguranje participated with 26.3 percent, Generali osiguranje Srbija with 19.2 percent, DDOR Novi Sad with 11.6 percent, Wiener Stadtische with 11.3 and Triglav with 7.5 percent. 

Regarding the non-life insurance premium, Dunav osiguranje participated with 29.4 percent, Generali with 17.2 percent, DDOR with 12.5 percent, Wiener Stadtische with nine percent and Triglav with 8.7 percent. In the total life insurance premium, the first place is occupied by Generali osiguranje Srbije with a share of 26.8 percent, followed by Wiener Stadtische with 20.2 percent, Grawe osiguranje with 14.1 percent, Dunav in fourth place with 13.8 percent, and last is DDOR Novi Sad with 8.1 percent.

The balance sheet of companies from the insurance sector increased at the end of the second quarter to 346.6 billion dinars, by four percent compared to the same period of the previous year.

The largest share has compulsory auto liability insurance

Observed according to types of insurance, in the second quarter of this year the largest share was achieved by compulsory auto liability insurance – 27.9 percent. This is followed by property insurance with 22.5 percent, life insurance with 20.2 percent and motor vehicle insurance – comprehensive insurance with 10.2 percent.

“The non-life insurance premium in the second quarter of 2022 recorded a growth of 14 percent compared to the same period in 2021. The liability insurance premium due to the use of motor vehicles increased by 3.9 percent, the property insurance premium 14.6 percent, the motor vehicle insurance premium – comprehensive insurance 16.6 percent, and the voluntary health insurance premium as much as 35.1 percent”, according to the NBS report.

The mentioned increase in the premium of voluntary health insurance is accompanied by an increase in the premium share of this type of insurance from 6.6 percent in the second quarter of 2021 to eight percent in the same period this year. At the same time, about three quarters of the market are covered by four insurance companies.

Accident insurance, which includes, among others, mandatory insurance such as public transport passenger insurance and employee insurance against work injuries and occupational diseases, in the second quarter of 2022 will grow by 12.4 percent compared to the same period in 2021, while retaining the share of 2.6 percent.

How did insurance companies do business in the previous three years?

The revenues and profits of insurance and reinsurance companies are growing year by year. According to the data of the rating company CompanyWall, a total of 24 of them operated under the activity code that includes companies engaged in life and non-life insurance in 2021. A total of four companies operated in the reinsurance business.

Companies that dealt with life and non-life insurance in 2019 had a total revenue of 106.2 billion dinars. In 2020, the total income was slightly lower and amounted to 105.8 billion dinars, and in 2021 it would reach the amount of 112.5 billion dinars.

Companies that operated in the reinsurance sector in 2019 recorded a total income of slightly more than two billion dinars (2,087,927,000) and in 2021 they would almost double that figure to more than four billion dinars (4,017,474,000).

When it comes to the most successful insurance companies in 2021, on the list of rating agency CompanyWall, the first place is occupied by Generali osiguranje Srbija, which achieved a profit of almost 3.4 billion dinars last year. This is a slightly weaker result compared to the previous two years, when the profit amounted to 4.1 billion and 3.9 billion dinars, although the total income during the last three years was mostly constant – slightly less than 23 billion dinars.

In second place is Dunav osiguranje, which recorded a profit of 2.5 billion, while in third place is Wiener Stadtische with 1.1 billion dinars.

Among the most successful insurers in the fourth position is Grawe osiguranje, which made a profit of 751.8 million dinars. In fifth place is DDOR Novi Sad, which last year had a profit of 703.8 million dinars.

As for the operations of companies dealing with reinsurance, the biggest profit in 2021 was recorded by Dunav-re ado Belgrade – 351.6 million dinars, in second place is Generali reosiguranje Srbija with 132.4 million dinars, and in third place is Wiener Re ado Belgrade with 62.8 million dinars. In fourth position is DDOR RE ado Novi Sad with a realized profit of 3.2 million dinars, Biznis writes.