Annual Report 2010 03 August 2011 - Banka Qendrore e ...

Annual Report 2010
CBK
the liabilities, shareholders equity represents the largest category, with a share of 41.8 to
total liabilities.
The capital to total assets ratio, which expresses the capital adequacy of insurance
companies, was 41.8 percent in 2010, compared to 43.4 percent in 2009. The ratio between
capital and technical reserves, which indicates the insurance companies’ capacity to cope
with potential losses, was 77.7 percent in 2010, compared to 81.5 percent in 2009. The
decline in this ratio came as a result of the faster growth rate of the technical reserves,
which increased by 12.8 percent, compared to the growth rate of 7.6 percent for the capital.
Net profit of insurance companies in 2010 was euro 1.5 million, compared to the net loss of
euro 4.9 million in 2009. The improvement of the financial output of insurance companies
during 2010 has been reflected also in the trend of the two profitability indicators,
consisting of the Return on Average Assets (ROAA) and the Return on Average Equity
(ROAE). Thus, the ROAA reached at 1.6 percent in 2010 from a negative ratio of -5.7
percent in 2009, whereas ROAE reached at 3.9 percent from -12.5 percent in 2009.
The number of the insurance
policies issued by insurance
companies operating in Kosovo, in
2010 reached at 540.7 thousands,
which represents an annual
increase of 5.7 percent (Figure 27).
The premiums received increased
by 5.1 percent, reaching the
amount of euro 71.3 million in the
end of 2010. However, the growth
rate of the value of the received
premiums was lower in 2010,
compared to the growth rate of
2009, where the annual growth
Figure 27. Premiums received and claims paid,
in millions of euro
80
70
60
50
40
30
20
10
0
2007 2008 2009 2010
Source: CBK (2011)
Premiums received
Claims paid
rate was 20.0 percent. The slowdown of the growth rate of the received premiums was
driven by the decrease of border insurance fees, which occurred twice during 2010. 13
Consequently, revenues from the border policies recorded an annual decline of 16.3 percent
in 2010, amounting at euro 10.6 million. The activity of insurance companies in Kosovo is
mainly focused in the issuing of Third Party Liability (TPL) insurance policies, which in
2010 generated the largest share of the received premiums (57 percent of total premiums).
Revenues from TPL policies amounted at euro 40.6 million and recorded an annual growth
rate of 11.8 percent. The remaining part of the received premiums comes from voluntary
insurance policies, which in 2010 amounted at euro 20 million and recorded an annual
growth rate of 6.8 percent. The share of received premiums from voluntary policies to total
received premiums stood at 28 percent, which is consistent with the share of voluntary
policies in 2009.
The amount of claims paid by insurance companies marked an increasing trend in 2010,
reaching at euro 26.5 million euro (annual growth of 40.8 percent). The largest share of the
claims paid consists of payments to TPL policyholders (around 72 percent of total claims
paid in 2010). The ratio between claims paid and received premiums in 2010 reached at
46 |
13 According to section 8.3 of CBK Rule 3, the insurance companies are entitled to apply for changing the fees only twice a year. In January 2010, the border
insurance fee decreased by 12 percent on average and in June 2010 by 15 percent.