Financial Stability Report No1 20 December 2010 - Banka Qendrore ...

Financial Stability ReportNumber 17. Other Financial Institutions7.1. Insurance companiesThe sector of insurance companies in Kosovo in the first half of 2010 continued to expandits activity. Until June 2010, the value of the assets of insurance companies reached at euro90 million, representing an annualgrowth of 20.1 percent. Assets of Figure 46. Received premiums and paid claims, ininsurance companies operating in millions of euroKosovo mainly consist of deposits incommercial banks, which represent65.2 percent of total assets. In June40.035.030.025.02010, the number of insurance 20.0companies operating in Kosovo was 15.011. Regarding the ownership10.05.0structure, eight companies are0.0foreign-owned, whereas the otherJune 2007 June 2008 June 2009 June 2010three are domestically-owned.Regarding the composition of assetsby ownership structure, 79.9 percentReceived premiumsSource: CBK (2010)Paid claimsof total assets of the insuranceindustry are foreign-owned, while 20.1 percent of total assets are domestic.Until June 2010, the number of policies sold by insurance companies was 241 thousand,representing an annual growth of 8 percent. The amount of premiums received byinsurance companies until June 2010 reached at euro 34.8 million, marking an annualgrowth rate of 5.4 percent (Figure 46). The main activity of insurance companies operatingin Kosovo continues to be Third Party Liability insurance (TPL). The amount of premiumsfrom TPL policies in June 2010 represented 61.2 percent of total premiums received byinsurance companies. Whereas the amount of claims paid until June 2010 doubledcompared to the same period of last year, reaching the value of euro 13.2 million. Thelargest part of claims paid by insurance companies consists of claims paid on TPL policies(74 percent of total claims paid). The ratio between premiums received and claims paiduntil June 2010 increased to 38 percent, compared to 24.2 percent in June 2009.7.2. Microfinance InstitutionsThe number of microfinanceinstitutions (MFI) operating in Kosovoin June 2010 was 17. The MFI activitycontinues to be concentrated onlending to small businesses andhouseholds. The average amount ofone loan issued by MFI is around1,852 euro. The number of loansissued by these institutions until June2010 reached at 61,498, whichrepresents an annual growth of 15.2percent. Regarding the value of loansFigure 47. Loans issued by MFI, in millions ofeuro120.0100.080.060.040.020.00.0June 2007 June 2008 June 2009 June 2010Source: CBK (2010)Loans issued by MFI| 55