Financial Crime World

Foreign Ownership Soars among Bulgaria’s Largest Insurance Companies

Sofia, Bulgaria - The Bulgarian insurance industry has undergone a significant transformation in recent years, with 27 out of 37 insurance companies now being majority foreign-owned. This trend is expected to continue as the country’s economy grows and attracts more foreign investors.

Market Share Increase

According to data from the Financial Supervision Commission, the majority foreign-owned insurance companies have seen a substantial increase in market share. Several major players have been acquired by international firms over the past few years, leading to this significant shift in the sector.

Key Statistics

  • 27 out of 37 insurance companies are now majority foreign-owned
  • Majority foreign-owned insurance companies account for 50% of Bulgaria’s total insurance capital as of December 31st, 2007
  • Market share increase expected to continue as Bulgarian economy grows and attracts more foreign investors

Bulgarian Stock Exchange Growth

The Bulgarian Stock Exchange has also experienced significant growth, with:

Key Statistics

  • 530 listed companies
  • Total market capitalization of BGN 29 billion (EUR 14.8 billion) as of December 31st, 2007
  • Annual trading value in 2007: BGN 10 billion (EUR 5.1 billion)

Government’s Privatization Efforts

The government’s efforts to privatize state-owned companies and encourage foreign investment have contributed to this trend. In recent years:

Examples of Successful Privatizations

  • An offer of 33% of the shares in Bulgarian Telecommunications Company (BTC) raised about EUR 320 million in 2005
  • By 2007, 90% of BTC’s shares were traded on the stock exchange for over EUR 1.4 billion

Implications for Bulgaria’s Economy and Financial Sector

The trend is expected to have significant implications for Bulgaria’s economy and financial sector:

Benefits

  • Improved corporate governance and transparency
  • Adoption of international best practices
  • Enhanced economic growth and development

Amendments to Accounting and Auditing Legislation

Bulgaria has amended its accounting and auditing legislation to comply with EU standards and requirements. The country joined the European Union on January 1st, 2007, and has been working to harmonize its laws and regulations with those of the EU.

Key Objectives

  • Enhance the quality and transparency of corporate financial reporting
  • Foster a more equitable and efficient tax collection system
  • Promote private sector growth and development