Generali expands the health insurance business in Bulgaria

The Italian insurer Generali is expanding its health insurance business in Bulgaria. The company is acquiring United Health Insurance Fund (OZOF) Doverie ZAD - the subsidiary of the Bulgarian company Doverie that specializes in health insurance.

The deal is fully in line with Generali's strategy to expand its activities in Central and Eastern Europe beyond car insurance, and by strengthening its positions in Bulgaria.

As the driver for the deal, the company's CEO for Central and Eastern Europe, Manlio Lostuzzi, points to "a combination of the growth of the Bulgarian health insurance market and the long-term prospects of this market segment."

This transaction underlines our Group's commitment to Bulgaria and is fully in line with our business plan to improve the profile of our healthcare business in the Central and Eastern Europe region," he added.

The health insurance segment in Bulgaria was mainly developed thanks to the corporate sector, as this is already considered "one of the most important benefits for employees in any company", Lostuzzi told Economic.bg in April.

According to calculations, based on data from the Financial Supervisory Commission (FSC), as a result of the acquisition, Generali's Bulgarian subsidiary will rise from ninth to eighth place in terms of total gross written premiums. It will also double the size of its health insurance premiums by becoming the second-largest player in this segment. 

The deal will not have an impact on existing customers, as the terms of their active policies remain in effect," explains Generali's CEO for Bulgaria Nikolay Stanchev.

Completion of the acquisition is subject to customary closing procedures, as well as subject to required regulatory approvals.

Translated by Tzvetozar Vincent Iolov