The largest insurance companies in the Republic of Srpska earned 14 million BAM

Date: Tuesday, March 7, 2017
Category: News
Dosi osiguranje imovine PR Jutarnji 1010 AUT (1)

-Out of the top five companies, four insurance companies recorded a profit.

-“Grawe osiguranje” is the first in the area of life insurance, “Drina osiguranje” in the market share and “Neskovic osiguranje ” in the profit.

BIJELJINA, four out of the five largest insurance companies in the Republic of Srpska in 2016 realized a total profit of 13.7 million BAM, while one company operated with losses of 5.6 million BAM.

Among the companies with the largest share in the total premium in the market of the Republic of Srpska which in the last year operated profitably are: “Drina osiguranje”, “Neskovic osiguranje”, “Grawe osiguranje” and “Dunav osiguranje “, while “Wiener osiguranje” recorded a negative operation.

The largest profit of 7.5 million BAM in the last year realized “Neskovic osiguranje”. Although the profit was decreased a year earlier for 200,000 BAM in this company they pointed out that they are satisfied with the achieved results.

They said that the slight decrease occurred due to decrease of the financial income which was decreased by 20 percent and other revenues were decreased by 15 percent, while financial expenses were increased by 49 percent and other expenses by 12 percent.

“Despite these indicators, the financial result was very good when it is taken into account that the company operated positively, that it has sufficient funds to cover the technical reserves, that the capital adequacy and solvency margin are in accordance with regulations and that the aim of the company is to operate on the long-term basis and to become one of the leading companies in the insurance”, said representatives of this insurance company.

“Drina osiguranje” has the highest accrued premium.

“Drina osiguranje ” which has the largest share in the total written premium in the Republic of Srpska in the last year has made 4,4 million BAM  of profit and it has increased for approximately 300.00 BAM compared to 2015.

This year the company achieved a total invoiced premium of 24.4 million BAM. Out of this, to the premiums in the automobile liability insurance applies 17.8 million BAM, and to the premiums in other insurances 6.5 million BAM.

“Grawe osiguranje” Banjaluka ended the last year with a net profit of 1.8 million BAM, which is 41.5 percent more than in the previous year.

Written premium amounted to 15.98 million BAM, which is approximately 4.75 percent more than in 2015.

Director of “Grawe osiguranje” Banjaluka Veselin Petkovic said today for CAPITAL that this company retains its leading position in the area of life insurance market in the Republic of Srpska with a market share of 45.8 percent.

He says that “Grawe osiguranje” advanced quite lot than its closest competitors, “Merkur BH osiguranje” and “Uniqa osiguranje” that have a market share of 20.22 i.e. 17.58 percent.

“Despite the difficult business conditions, we exceeded the plan for the written premium in 2016. Management and shareholders are satisfied with the results achieved, particularly given the poor economic and political situation in the Republic of Srpska and Bosnia and Herzegovina” said Petkovic and added that the number of clients in “Grawe osiguranje” in 2016 was increased to more than 15,000.

Profit of “Dunav osiguranje” Banja Luka in the last year amounted to 28.294 BAM, which is approximately 20,000 BAM more than the previous year.

In this company, they previously pointed out that last year generated invoiced premium of 21.4 million BAM, and that the market share of “Dunav osiguranje”has increased to 9.3 percent.

The trend of positive business performance of leading companies in the insurance market of the Republic of Srpska was stopped by the “Wiener osiguranje” which in the last year operated with losses of 5.6 million BAM, but it is significantly better operating result than in 2015.

“Significant amounts that have contributed to the negative result of the impairment of real estate in the amount of 1.5 million BAM, exchange losses, costs from previous years by the subsequent arrival of invoices, rental costs of the Directorate in Banja Luka and rental costs of the Directorate Branch Sarajevo, severance payments and other” was stated in the explanatory memorandum attached to the financial report of the company.

Source: Capital