Annual Report 2010 03 August 2011 - Banka Qendrore e ...
Annual Report 2010 03 August 2011 - Banka Qendrore e ... 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.
CBK Annual Report 2010 37.2 percent (27.8 percent in 2009), reflecting a faster growth of claims paid, compared to the growth of the received premiums by insurance companies. 3.3.4. Pension Funds Kosovo’s pension system assets in 2010 reached at euro 493.7 million Figure 28. KPST share price and DJI index (12.0 percent of GDP), recording an annual growth rate of 29.6 percent. 11200 1.30 1.20 1.10 The performance of the pension 9200 1.00 system in 2010 has improved, 7200 0.90 compared to the performance in the 0.80 5200 previous year. This is because the 0.70 3200 share price of Kosovo Pension 0.60 Savings Trust (KPST), which 1200 0.50 manages the largest part of pension system assets, recorded an annual 2008 2009 2010 growth rate of 6.2 percent, reaching at euro 1.04 (the basic price during contribution is counted euro 1.0 per DJI Source: Trust (2011), DJI (2011) KPST share price share). The performance improvement of KPST investments reflects the positive developments in the international markets of capital during 2010, which is presented in Figure 28, indicating that KPST shares price followed a very similar pattern with the Dow Jones Industrial Index. From the total of euro 488.5 Figure 29.Structure of KPST investments 12.2% million of KPST assets, 6.8 percent 8.6% are invested in commercial banks in Kosovo, whereas 9.0 percent 6.8% have been deposited in the CBK 15.0% (Figure 29). The rest of the assets is invested abroad (mainly in the USA, Great Britain and Japan). 39.6% The largest part of the KPST assets have been invested in Shares Money market Bonds Bonds related to inflation shares (around 40 percent), Deposits in local banks CBK Loan market whereas a considerable part has also been invested in the money Source: Trust (2010) market (15 percent) and credit default swaps (12.2 percent). Regarding the assets of the Slovenian-Kosovo Pension Fund, the largest share (over 95 percent) have been invested in bonds and bank deposits, whereas the remaining is kept in cash, shares, etc. 3.3.5. Microfinance Institutions and other Non-Bank Financial Institutions Jan The number of microfinance institutions (MFI) operating in Kosovo in the end of 2010 was 13, while the number of non-banking institutions was 8. The MFI market in Kosovo was continuously characterized with a relatively high degree of concentration. However, during 2010, the MFI industry marked a decline in the concentration ratio. This is confirmed through the Herfindahl-Hirschman Index for assets, according to which the level of concentration in the MFI market declined to 1,747 points, compared to 2,115 points in 2009. The decline in the degree of concentration in the MFI industry can also be noted in Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov | 47
- Page 1 and 2: BANKA QENDRORE E REPUBLIKËS SË KO
- Page 3 and 4: CBK Annual Report 2010 BANKA QENDRO
- Page 5 and 6: CBK Annual Report 2010 CONTENTS Cov
- Page 7 and 8: CBK Annual Report 2010 LIST OF ABBR
- Page 9 and 10: CBK Annual Report 2010 LIST OF FIGU
- Page 11 and 12: CBK Annual Report 2010 83. Number o
- Page 13 and 14: CBK Annual Report 2010 Cover Letter
- Page 15 and 16: CBK Annual Report 2010 Governor’s
- Page 17 and 18: CBK Annual Report 2010 Central Bank
- Page 19 and 20: CBK Annual Report 2010 Organization
- Page 21 and 22: CBK Annual Report 2010 1. Executive
- Page 23 and 24: CBK Annual Report 2010 2. External
- Page 25 and 26: CBK Annual Report 2010 In the end o
- Page 27 and 28: CBK Annual Report 2010 3. Kosovo Ec
- Page 29 and 30: CBK Annual Report 2010 On the other
- Page 31 and 32: CBK Annual Report 2010 marking an a
- Page 33 and 34: CBK Annual Report 2010 Financial se
- Page 35 and 36: CBK Annual Report 2010 securities c
- Page 37 and 38: CBK Annual Report 2010 Regarding th
- Page 39 and 40: CBK Annual Report 2010 account for
- Page 41 and 42: CBK Annual Report 2010 income. Inte
- Page 43 and 44: CBK Annual Report 2010 compared to
- Page 45 and 46: CBK Annual Report 2010 percent in 2
- Page 47: CBK Annual Report 2010 Table 7. Liq
- Page 51 and 52: CBK Annual Report 2010 3.4.1 Curren
- Page 53 and 54: CBK Annual Report 2010 total export
- Page 55 and 56: CBK Annual Report 2010 In December
- Page 57 and 58: CBK Annual Report 2010 3.4.2.1 Fore
- Page 59 and 60: CBK Annual Report 2010 4. Supervisi
- Page 61 and 62: CBK Annual Report 2010 c) Exchange
- Page 63 and 64: CBK Annual Report 2010 4.1.2 Method
- Page 65 and 66: CBK Annual Report 2010 evidenced a
- Page 67 and 68: CBK Annual Report 2010 capital adeq
- Page 69 and 70: CBK Annual Report 2010 sustainabili
- Page 71 and 72: CBK Annual Report 2010 Table 20. Li
- Page 73 and 74: CBK Annual Report 2010 under Trust
- Page 75 and 76: CBK Annual Report 2010 Figure 52. E
- Page 77 and 78: CBK Annual Report 2010 Regarding me
- Page 79 and 80: CBK Annual Report 2010 Figure 64. V
- Page 81 and 82: CBK Annual Report 2010 27.12 percen
- Page 83 and 84: CBK Annual Report 2010 In 2010, an
- Page 85 and 86: CBK Annual Report 2010 General deve
- Page 87 and 88: CBK Annual Report 2010 Figure 82. N
- Page 89 and 90: CBK Annual Report 2010 was managed
- Page 91 and 92: CBK Annual Report 2010 Table 23. De
- Page 93 and 94: CBK Annual Report 2010 Table 24. Tr
- Page 95 and 96: CBK Annual Report 2010 new componen
- Page 97 and 98: CBK Annual Report 2010 This seminar
CBK<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2010</strong><br />
37.2 percent (27.8 percent in 2009), reflecting a faster growth of claims paid, compared to<br />
the growth of the received premiums by insurance companies.<br />
3.3.4. Pension Funds<br />
Kosovo’s pension system assets in<br />
<strong>2010</strong> reached at euro 493.7 million<br />
Figure 28. KPST share price and DJI index<br />
(12.0 percent of GDP), recording an<br />
annual growth rate of 29.6 percent. 11200<br />
1.30<br />
1.20<br />
1.10<br />
The performance of the pension 9200<br />
1.00<br />
system in <strong>2010</strong> has improved,<br />
7200<br />
0.90<br />
compared to the performance in the<br />
0.80<br />
5200<br />
previous year. This is because the<br />
0.70<br />
3200<br />
share price of Kosovo Pension<br />
0.60<br />
Savings Trust (KPST), which<br />
1200<br />
0.50<br />
manages the largest part of pension<br />
system assets, recorded an annual<br />
2008 2009 <strong>2010</strong><br />
growth rate of 6.2 percent, reaching<br />
at euro 1.04 (the basic price during<br />
contribution is counted euro 1.0 per<br />
DJI<br />
Source: Trust (<strong>2011</strong>), DJI (<strong>2011</strong>)<br />
KPST share price<br />
share). The performance improvement of KPST investments reflects the positive<br />
developments in the international markets of capital during <strong>2010</strong>, which is presented in<br />
Figure 28, indicating that KPST shares price followed a very similar pattern with the Dow<br />
Jones Industrial Index.<br />
From the total of euro 488.5<br />
Figure 29.Structure of KPST investments<br />
12.2%<br />
million of KPST assets, 6.8 percent<br />
8.6%<br />
are invested in commercial banks<br />
in Kosovo, whereas 9.0 percent<br />
6.8%<br />
have been deposited in the CBK<br />
15.0%<br />
(Figure 29). The rest of the assets<br />
is invested abroad (mainly in the<br />
USA, Great Britain and Japan).<br />
39.6%<br />
The largest part of the KPST<br />
assets have been invested in<br />
Shares<br />
Money market<br />
Bonds<br />
Bonds related to inflation<br />
shares (around 40 percent),<br />
Deposits in local banks<br />
CBK<br />
Loan market<br />
whereas a considerable part has<br />
also been invested in the money<br />
Source: Trust (<strong>2010</strong>)<br />
market (15 percent) and credit default swaps (12.2 percent). Regarding the assets of the<br />
Slovenian-Kosovo Pension Fund, the largest share (over 95 percent) have been invested in<br />
bonds and bank deposits, whereas the remaining is kept in cash, shares, etc.<br />
3.3.5. Microfinance Institutions and other Non-Bank Financial Institutions<br />
Jan<br />
The number of microfinance institutions (MFI) operating in Kosovo in the end of <strong>2010</strong> was<br />
13, while the number of non-banking institutions was 8. The MFI market in Kosovo was<br />
continuously characterized with a relatively high degree of concentration. However, during<br />
<strong>2010</strong>, the MFI industry marked a decline in the concentration ratio. This is confirmed<br />
through the Herfindahl-Hirschman Index for assets, according to which the level of<br />
concentration in the MFI market declined to 1,747 points, compared to 2,115 points in<br />
2009. The decline in the degree of concentration in the MFI industry can also be noted in<br />
Mar<br />
May<br />
Jul<br />
Sep<br />
Nov<br />
Jan<br />
Mar<br />
May<br />
Jul<br />
Sep<br />
Nov<br />
Jan<br />
Mar<br />
May<br />
Jul<br />
Sep<br />
Nov<br />
| 47
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