One of the leading credit rating agencies - Fitch Ratings - has raised the outlook for the rating of the largest Bulgarian insurer by revenue - ZD Euroins AD, from “stable“ to “positive“, while
concurrently affirming the current rating of ‘BB-’.
A year ago, the agency increased the company's rating from ‘B+’ to ‘BB-’ with a stable outlook. The outlook is now positive, reflecting the company's increasing capital stability and improving practices in the formation of reserves, as well as the leading position of the
insurer on the Bulgarian market.
The improved outlook follows the restructuring process at the group level in the second half of 2026, as a result of which the ownership of Euroins was transferred from Eurohold Bulgaria AD to the majority shareholder of the holding - Starcom Holding AD. The public holding company, in turn, acquired the renewable energy production and storage business of Solars Energy AD from Starcom and became a fully energy holding company.
The main highlights of Fitch's report on the upgraded outlook:
● Improved operating results and profitability: Operating results continue to increase in the first half of 2026 with a combined ratio of 91% (according to Fitch calculations) after reporting a net profit of EUR 9.61 million for 2025 (compared to EUR 2.86 million for 2024).
● Higher capital base: Equity increases to EUR 117.6 million at the end of 2025 after an increase in share capital, and the coverage of the solvency capital requirement (SCR) is 141% at the end of 2025 and 129% by the first half of 2026.
● Increased reserve adequacy: The dynamics of reserves is positively influenced by the insurer's strategic focus on profitability and more efficient practices for the formation of technical
reserves, with no negative changes in reserves registered at the overall portfolio level in recent years.
All information from Fitch - HERE.