Italy's Generali Holding, which controls the eponymous general insurance company Generali Insurance in Bulgaria, is acquiring 100% of one of the largest private insurance funds in the country, United Health Insurance Fund Doverie. The official announcement by Generali does not disclose the transaction price. The deal is expected to be finalized after receiving the necessary regulatory approvals from the Financial Supervision Commission (FSC) and the Commission on Protection of Competition.
Doverie ranks among the top three companies in premium revenue from insurance for preventive care and health services. For the first half of 2024 it reported a loss due to the drastic rise in prices at healthcare facilities. Generali announced that its goal is to expand its operations in Central and Eastern Europe beyond motor insurance and to strengthen its positions in Bulgaria.
As a result of the acquisition Generali Insurance will move up from ninth to eighth place in total gross written premiums, according to FSC data as of the end of 2023. It will also double its health insurance premiums, becoming the second-largest player in the segment, according to the company.
Market size
The healthcare services and pharmaceuticals market is expected to reach about 15 billion levs (7.5 billion euro) this year. Public funds in this market amount to approximately 9 billion levs and come from the budgets of the National Health Insurance Fund and the Ministry of Health, while the remaining portion represents out-of-pocket payments by patients or health insurance payments. About 400,000 Bulgarians have such insurance, with the majority receiving them as part of social packages provided by their employees. Individual insurance policies are rarely signed. Health insurers still have a minimal participation of about 200 million levs in the healthcare services and pharmaceuticals market.
Doverie holds a 0.8% market share in the general insurance market in Bulgaria, with 28 million levs in gross written premiums at the end of 2023 and 53 employees. Generali, which is active across the entire spectrum, has a 6.1% share with 223 million levs in revenue.
Expansion of the health business
Manlio Lostuzzi, CEO of Generali, commented in the press release announcing the deal that the combination of the growth of the Bulgarian health insurance market and the long-term prospects of this market segment motivated the group to acquire Doverie. Nikolay Stanchev, CEO of Generali Insurance, added that after the deal the focus would be on cross-selling opportunities, as well as adopting and applying the best practices from both companies, which will benefit clients and employees. "Moreover, the addition of Doverie's professional team will give us a market advantage. And last but not least, the deal will not impact existing clients, as the terms of their active policies remain unchanged," Stanchev said.
Doverie is one of the first health insurance funds established after the health reform in 1999. It is owned by the former privatization fund Doverie United Holding, which holds 98.15% of the health insurer's shares, while minority stakes are held by two companies, Telso and Momina Krepost. Doverie is known as one of the few insurers that offer packages without usage limits for health services to its clients.
Italy's Generali Holding, which controls the eponymous general insurance company Generali Insurance in Bulgaria, is acquiring 100% of one of the largest private insurance funds in the country, United Health Insurance Fund Doverie. The official announcement by Generali does not disclose the transaction price. The deal is expected to be finalized after receiving the necessary regulatory approvals from the Financial Supervision Commission (FSC) and the Commission on Protection of Competition.
Doverie ranks among the top three companies in premium revenue from insurance for preventive care and health services. For the first half of 2024 it reported a loss due to the drastic rise in prices at healthcare facilities. Generali announced that its goal is to expand its operations in Central and Eastern Europe beyond motor insurance and to strengthen its positions in Bulgaria.