The assets of Allianz Bulgaria's pension funds increased by 27% in 2006 to BGN 492 million. Data of the Financial Supervision Commission show that Allianz Bulgaria managed 32.4% of the assets of pension funds in Bulgaria at the end of the year. In January 2007 the net value of assets of Allianz's three funds already exceeded BGN 500 million. The social security contributions received by Allianz Bulgaria in 2006 totalled BGN 119 million, including BGN 3.3 million installments transferred from other pension funds. More than 60,000 people joined the company's funds last year, raising the total number to 815,000.
Source: Pari (19.02.2007)

Pension funds seek investment options. The latest loan borrowed by the Bulgarian government - the one for the completion of the Trakia motorway - amounted to BGN 60 million. At the same time pension funds in Bulgaria have enough resources to invest. The state should take measures to attract pension funds in the construction of large infrastructural projects, the chairman of the Bulgarian Association of Supplementary Pension Security Companies, Nikola Abadjiev, told the Pari daily. If it fails to do that, a big part of these companies' capitals will be directed to investments abroad. The capital market is becoming narrow and a way out could be the financial participation of pension funds in large infrastructural projects, the CEO of Allianz Bulgaria pension insurance company, Sofia Hristova, said. Instead of increasing the foreign debt, the state should attract taxpayers' money. In the long run, that will have an economic and a social effect, which will be good for the whole economy. Technically, the funds can be invested in infrastructure but the state simply does not allow that, Geogri Angelov, senior economist at the Open Society Institute, told the Pari daily. Specialists think that if the state does not attract the free resources of pension funds, the consequences for the economy may be not that good. The assets of pension funds are increasing very quickly and Bulgaria is becoming narrow for them, the CEO of TBI Doverie, Daniela Petkova, said. The current regulations do not allow investing in small and medium enterprises, which are the engine of the economy, she added.
Source: Pari (12.03.2007)

Some BGN 600 million a year circumvent pension funds in Bulgaria due to avoidance of social security payments, the chairman of the Economic and Social Council, Lalko Dulevski, said. In his words, the treasury loses some BGN 1 billion a year from the grey economy. The grey economy in the EU makes up about 12-13%; in Bulgaria, the levels are twice to thrice higher, Dulevski pointed out. That is a loss to the whole economy and mainly to people, the CEO of Allianz Bulgaria pension insurance company, Sofia Hristova, told the Pari daily. The effect of the non-payment of social security contributions will be felt by them in the long run, not today, she added. The same opinion is shared by Daniela Petkova, the CEO of TBI Doverie. The main problem is the willingness of young people to hide incomes, she said. A possible way out is to reduce the taxes charged on people born after 1960, according to Hristova.
Source: Pari (27.03.2007)

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)

Pension insurance company Allianz Bulgaria has secured a certificate from the local financial regulator to manage a voluntary pension fund based on professional pension plan schemes. This is the first certificate of its type issued in Bulgaria. The contributions to the professional schemes will based on a collective or individual agreement signed by each worker with his employer.
Source: Dnevnik (03.05.2007)

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)

Bulgaria's financial regulator said a mid-Mar check in the transfer of accounts to pension insurer Toplina (a company believed to be affiliated with local businessman Hristo Kovachki) detected no apparent irregularities. Pension insurers Doverie, Allianz and Saglasie have all complained to the watchdog about mass migration of accounts. They have alleged that workers employed by Kovacki-controlled enterprises were forced to change their insurer and chose Toplina. The regulator said its competence goes only as far as the legality of the pension plan transfers and that any allegations of coercion should be investigated by the proper authorities.
Source: Dnevnik (21.05.2007)

The pending amendments to the Social Security Code may create competition among pension and mutual funds. The changes will introduce the multifund system, where the insured choose by themselves the risk profile of the company that manages their pension savings. That is a much needed amendment, because of the development of the sector, specialists said. It is high time Bulgaria introduced the multifund system. We should have done that earlier, the CEO of Allianz Bulgaria pension company, Sofia Hristova, said. A reform in the pension insurance is a wonderful idea. As things are now, all social security contributions go to a fund with a common risk profile, which results in lower returns, Georgi Angelov, senior economist at the Open Society Institute, said. Most experts agree that the reform will have many positive effects, but the main is that it will encourage a reduction in the grey economy. The changes are really needed but they should not be made at all costs, the CEO of Doverie pension company, Daniela Petkova, said. There are still some debatable issues but I am optimistic about the future, she added. A working group of experts is currently putting the finishing touches to the amendments. The chairman of the Bulgarian Association of Supplementary Pension Security Companies, Nikola Abadjiev, said he was confident the reform will yield positive results. The changes are expected to be moved for approval to the parliament by this year's end.
Source: Pari (05.06.2007)

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)

The leading European magazine of Investment&Pensions Europe (IPE) published its chart of the best old age provision funds in Europe. The Bulgarian Doverie Pension Insurance Company, which manges assets of EUR 300 million is placed 927th. The other Bulgarian company graded in the chart is Allianz Bulgaria, which manges assets of EUR 252 million and is placed 997th, 70 positions behind Doverie. The leader on the European old age provision market is the state Norwegian oil fund Global, which manages assets of EUR 218 billion. It replaced the long time number one - the Dutch public pension fund ABP as its this year's assets came to EUR 17 billion less. The analysis the magazine has prepared reads that the assets augmentation of this year comes to EUR 3.5 trillion,in comparison with last year's of EUR 3 trillion. The experts working for the edition particularize that the chart is based on the 2006 results of the companies, but some funds have as well reported their results for 2005 and 2007.
Source: Zastrahovatel (21.09.2007)

Two Bulgarian retirement funds were included in the chart of the leading European magazine “Investment & Pensions Europe” (IPE) for the top thousand retirement funds in Europe. This is the first time that companies from Central and Eastern Europe are included among the best retirement funds in Europe. Doverie - Pension Insurance Company JSC managing EUR 300 million of assets is on 927 place. The second Bulgarian company is Allianz Bulgaria - Pension Insurance Company JSC that is found on 997 place with assets of EUR 252 million, 70 places below Doverie - Pension Insurance Company. The total number of retirement funds is exceeding 10,000.
Source: Monitor (25.09.2007)