SOFIA, Feb 3 (Reuters) - Bulgaria’s insurance companies and pension funds are stable, though five small insurers will have to raise funds to meet capital requirements, an asset and a balance sheet review carried by the financial regulator showed on Friday.
The review of 49 insurers showed some 13 companies did not have enough funds to meet either solvency or minimum capital requirements as of June 30 last year, but seven have since taken steps to bolster their balance sheets, the regulator said.
The total capital shortfalls after the follow-up measures stood at 17 million levs ($9.34 million) for solvency capital requirements and 22 million levs for minimum capital requirements and concern 5 companies with a joint market share of 1.5 percent.
“The insurance sector and the pension insurance sector in Bulgaria are stable,” the Financial Supervision Commission (FSC) said in a statement. “The established deficits are relatively small to the capital requirements and the available own funds of the instance sector”.
The aggregate solvency requirement stood at 1.2 billion levs while the insurers’ own funds stood at 1.9 billion, the FSC said.
The asset review of the country’s 27 private pension funds showed the companies meet the regulatory requirements and the imposed total asset adjustments were for 33 million levs, or 0.3 percent of the total assets of the sector.
$1 = 1.8203 levs Reporting by Tsvetelia Tsolova; Editing by Elaine Hardcastle