The Insurance Balance Sheet Review and Pension Funds Asset Review of the Bulgarian insurance and pensions sector showed stability, this was announced at the presentation of reports at a press conference on 3 February 2017 given jointly by the Bulgarian Financial Supervision Commission and the European Insurance and Occupational Pensions Authority (EIOPA).

The Insurance Balance Sheet Review and Pension Funds Asset Review of the Bulgarian insurance and pensions sector followed the country specific recommendation of the European Commission and was included in the Bulgarian National Reform Programme – 2015. It is an important milestone in achieving greater transparency and enhancing the trust of consumers, said EIOPA in a press release.

The Review was overseen by a Steering Committee composed of representatives of the Bulgarian Financial Supervision Commission (FSC), the European Insurance and Occupational Pensions Authority (EIOPA), the European Commission, the Ministry of Finance of the Republic of Bulgaria, the Bulgarian National Bank and the European Securities and Markets Authority (ESMA) with the support of a Project Manager and eight independent external reviewers.

The independent assessment covered the entire Bulgarian insurance market (individual and group level) and all universal, professional and voluntary pension funds in Bulgaria. The reference date was 30 June 2016.

Bulgarian insurance companies cover capital requirements over 100%

The Insurance Balance Sheet Review shows an aggregated Solvency Capital Requirement (SCR) ratio of 154% and an aggregated Minimum Capital Requirement (MCR) ratio of 308% for solo entities before the impact of consistency procedures. After the consistency check, the ratios increase respectively for 157% and 313%. 13 undertakings did not meet either SCR and/or MCR ratio of 100%. 7 undertakings undertook subsequent measures to cover the capital deficit. In line with the agreed follow-up actions published by the FSC on 15 February 2016, the undertakings with capital shortfalls will have to submit to the FSC action plans for the implementation of remedial actions.

Bulgarian Pension Funds Asset Review shows regulation was observed

The Bulgarian Pension Funds Asset Review identifies an aggregated adjustment before consistency assessment of around 0.3% of the total assets of all 27 Bulgarian pension funds. These adjustments result from the revaluation of financial instruments and investment properties according to the national legal framework. The Review also includes an assessment of risks not fully captured by the legal framework, which are the basis for the recommendation of expanding the related parties’ definitions in the current law.

Information from European Insurance and Occupational Pensions Authority (EIOPA)

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