The holders of universal pension accounts were earning a return of between 5.66% and 13.25% by the end of 2006, shows data released by Bulgaria's Financial Supervision Commission. The annualised return rates are based on data covering the past 2 years. A quarter earlier, the rate of return ranged between 6.3% to 13.8% from company to company. Two years ago, the lowest return was 9.35% with most companies above 11%. The supplementary pension funds return between 6.77% and 11.96%. Experts said the rate of return on this segment was hurt by the lower yields on government securities and the decline in deposit rates. The funds rushed to the local stock market to shore up their return rates, committing 30% of their assets to equities and corporate bonds by end-September 2006. The move has so far failed to pay off. For yet another quarter, the pension funds part of the CCBank group - Saglasie and CCB Sila, posted the biggest returns, a performance ascribed by experts to lucrative investments on the local bourse. The ING and DZI universal funds managed to raise their rate of return while the rest of the sector posted declines.
Source: Dnevnik (12.01.2007)

Local pension insurance company Doverie has pipped Allianz Bulgaria to take the domestic no.1 spot in terms of assets, shows data released by the nation's financial watchdog. Doverie now manages 497.3 mln levs in assets versus 492 mln levs for Allianz Bulgaria. The two companies own 65% of the sector's asset total. Saglasie, part of the CCBank financial group, is no.3 with 162.5 mln levs. The funds accrued by the domestic private pension insurance companies hit the 1.5 bln lev benchmark towards the back end of 2007, adding 36% over 2005. The combined profit of the pension companies tripled year-on-year to 10.9 mln levs in 2006. Here Allianz and Doverie are again the frontrunners with 2.88 mln and 2.8 mln levs in profits. The only pension insurer finishing the year in the red was ING, posting a loss of 0.631 mln levs.
Source: Dnevnik (08.02.2007)

For the first time since the adoption of private pension schemes in Bulgaria, corporate bonds and equities outweigh government securities in the investment portfolios of the local pension insurance companies. The pension insurers have tied up BGN 480 mln in bonds and equities versus BGN 420 mln invested in government securities by end-2006. Just 3 months ago, government securities still had a solid lead at BGN 500 mln in pension assets versus BGN 415 mln invested on the bourse. The tables were turned with the lifting of the requirement for investment in government securities. One fifth of pension assets are parked in equities. The most active equity investors are Saglasie, DSK Rodina, DZI, Doverie and CCB Sila with over 40 per cent of assets invested in equities. The funds increased by BGN 62 mln their investment in equities in the last quarter of 2006. Corporate bonds failed to attract significant new investment from the pension funds in October-December 2006, remaining at a combined volume of BGN 178 mln in their portfolios. The biggest surge was recorded in investments abroad. Foreign assets in the portfolios of the Bulgarian pension insurers rose by BGN 82 mln in Q4 to BGN 123.6 mln. The trend was paced by Doverie, Allianz, ING and Lukoil-Garant.
Source: Dnevnik (12.02.2007)

Bulgaria’s financial regulator Wednesday set at 5.02% the minimum return for the nation’s universal pension insurance funds over the 2-year period ended March 30, 2007 . The minimum return for the occupational funds is set at 5.19% for the review period. The annualized return of the 2.5 mln Bulgarians with universal pension accounts varies between 6% and 15%. The regulator explained the wide spread with the different speed with which the universal funds moved to restructure their investment portfolios after Bulgaria loosened the investment rules for pension insurance companies. Saglasie and CCB-Sila, part of the Central Co-operative Bank group, posted the highest yields: 12.23% and 15.07% for the universal funds and 13.39% and 14.26% for the occupational divisions The funds that exceeded the return limit will have to allocate the balance to reserves. Experts attributed the excellent performance of the CCB funds with profitable stock exchange investments.
Source: Dnevnik (12.04.2007)

The local net pension insurance assets rose 34 per cent to BGN 1.517 bln in 2006, shows data of Bulgaria's financial regulator. Doverie and Allianz are the standout leaders with 32.78 per cent and 32.42 per cent of the market, respectively. The number of Bulgarians with pension plans increase 8 per cent to 3.2 mln last year. The biggest number of new accounts were reported by Doverie (up 78,500) and Saglasie (up 50,400). Over 80 per cent of all pension accounts are managed by universal pension insurance funds. Voluntary supplementary pension accounts rose by 32,000 to 566,000 with the average account balance at BGN 875. The occupational funds lead in this respect with an average account balance of BGN 1,630. The voluntary supplementary pension funds manage around BGN 500 mln in assets, including BGN 110 mln parked in bank deposits. These funds have invested another BGN 104 mln in equities. The occupational pension funds manage BGN 306 mln in assets. They have invested BGN 101 mln in government securities, BGN 65 mln in equities and just under that figure in bank deposits. The universal pension insurers have committed BGN 130.4 mln to the equity market and BGN 85 mln to the mortgage bond market.
Source: Dnevnik (20.04.2007)

Three of the biggest pension insurance companies – Allianz, Doverie and Saglasie, have signaled the Financial Supervision Commission, that employers at some companies have forced their employees to change their pension funds. The injured companies claim that employees at Brikel, Thermal Power Plant-Maritsa 3 and Atomenergoremont have been forced to transfer to the newly founded company Toplina. The three companies, as well as Toplina are owned by Hristo Kovachki, who became notorious after the scandals with Sofia Municipality and the Minisipal Bank. Toplina was licensed last year but started operations a few months ago. 46 percent of its shares are owned by LM Impex SPLTD – Sofia, 100 percent owned by Hristo Kovachki. 1,250 people insured in out funds have applied to be insured in Toplina. It is strange that 950 of them decided to do so only in a couple of days, said Milen markov from Saglasie. The matter is of thousands of employees in Brikel, TPP Maritsa Iztok 1, the heat supply companies in Pernik, Pleven, Vratza, the mines in Chukurovo and Atomenergoremont, etc.
Source: Sega (18.05.2007)

Chimimport, Bulgaria's biggest holding company, said group profit jumped more than 14 times year-on-year to BGN 25.29 mln in the first quarter of 2007. Profits were mainly lifted by gains on financial assets and instruments and improved revenues from services, shows the consolidated financial report of the company. During the review period, Chimimport pocketed one-off proceeds from the sale of an 8 per cent stake in central Co-operative Bank which were disposed by holding subsidiaries. The net income from financial instruments was reported at over BGN 26 mln, a significant bounce-back from the 282,000 loss recorded a year ago. Sales were reported at BGN 53.7 mln, up from BGN 23 mln a year ago. Profit from insurance operations fell to BGN 439,000 which represents almost a fourfold year-on-year decline. Interest income jumped 56 per cent to BGN 20.6 mln.
Source: Dnevnik (01.06.2007)

The Bulgarian pension funds continue to upshift investment in local equities and abroad, shows data of the Financial Supervision Commission. The biggest increase in equity investments - some 6 per cent, was recorded among the voluntary supplementary pension funds. They have now sheltered BGN 168 mln - or 31 per cent of their total assets, in equity investments. The net assets of the local pension funds are up 22 per cent over end-2006 to BGN 1.852 bln. The net assets of the voluntary supplementary pension funds topped BGN 500 mln in H1 with Allianz as the top performer with a 50 per cent market share followed by Doverie with 17.2 per cent. The occupational pension insurance funds manage BGN 355.87 mln in assets with equities accounting for over BGN 100 mln in investments. The universal pension funds have now parked more money in equities than in government securities. Their asset portfolio has almost reached BGN 1 bln. The market share of the segment-leading Doverie universal fund has shrunk slightly as has that of runner-up Allianz. Going in the opposite direction are the market shares of DSK-Rodina, Saglasie, CCB-Sila and Badeshte.
Source: Dnevnik (10.08.2007)

Private pension funds broke the profitability record one more time. Average profitability is 12 percent year-based for the period 2005 – September 2007 for the most attractive funds – the second pension funds, according to the information provided by the Financial Supervision Commission. A month earlier it was a bit above 9 percent. All funds are above the 10 percent line and the leader is CCB - Sila Pension Insurance – 18.30%. The other two companies of Chimimport - Saglasie - Pension Insurance Company and Lukoil Garant-Bulgaria Pension Insurance Company, together with Budeshte - Pension fund also indicate profitability over 15%.
Source: Sega (10.10.2007)