15.12.2021

COMPETITION BETWEEN PENSION COMPANIES WILL INCREASE

Attitudes towards the activities of pension insurance companies remain positive and optimistic until the end of this year, despite expectations of a slowdown in economic growth and a recovery in employment. We read this in the publication "Financial Sector: Estimates and Expectations" prepared by the Ministry of Finance, which presents the expectations of a wide range of financial intermediaries in terms of key macroeconomic indicators and factors related to their activities.

The summary estimates of these companies show that the assets in both the supplementary mandatory pension funds and the supplementary voluntary pension funds will continue to grow.

The optimism of the insurance companies is justified. Moreover, in the third quarter the accumulated net assets in the supplementary pension funds continued to grow. As a result, at the end of September this year they reached BGN 18.8 billion, as their annual increase was in double digits (+14.4%), and compared to the second quarter of the year the increase was 2%.

The forecast is that the number of insured persons will increase in the last quarter, as expectations for those in the supplementary voluntary pension funds are more optimistic than in recent months.

The pension companies also forecast that the value of one share in the additional mandatory and voluntary pension funds will be higher in the last quarter of this year.

The figures show that the market share of universal pension funds in the amount of their net assets did not change significantly in the third quarter, and competition between pension insurance companies will increase significantly compared to estimates from the beginning of the year.