The National Bank of Serbia published its report on Serbia’s insurance sector for Q3 2024, based on regulatory returns, showing continued balance sheet growth, double-digit premium expansion and capital adequacy comfortably above required solvency margins, while the number of (re)insurers remained unchanged. At end-Q3 2024, Serbia had 20 (re)insurance companies, including 16 insurers and four reinsurers, with 15 majority foreign-owned. Total premium reached RSD 132.6 billion (EUR 1.13 billion, USD 1.23 billion), up 14.7% year on year, with non-life accounting for 82.3% and life for 17.7%. Sector assets increased 8.6% to RSD 417.1 billion (EUR 3.56 billion, USD 3.98 billion), capital rose 6.4% to RSD 75.2 billion and technical reserves grew 8.0% to RSD 290.4 billion, with the full amount of technical provisions invested in prescribed asset forms. Available solvency margin stood at RSD 62.2 billion versus a required margin of RSD 27.9 billion, with the available-to-required ratio at 217.4% for predominantly non-life companies and 239.9% for predominantly life companies; the liquid assets-to-liabilities indicator was 105.3%. The report also notes moderate market concentration based on a Herfindahl-Hirschman index of 1.1493 and, in compulsory motor third-party liability insurance, premiums increased 8.8% year on year on higher contract volumes and average premiums, with the top three insurers’ share easing to 57.8%. Looking ahead, the report flags further changes to the supervisory framework as regulations are fully harmonised with the European Union’s Solvency II and Insurance Distribution Directive, with work continuing under Serbia’s May 2021 Solvency II Implementation Strategy and moving toward the phase focused on regulatory framework harmonisation.

Original source View in tracker