The “Balkan” National Insurance Company is one of the most important native insurance institutions in Bulgaria. Its head office is located in Sofia, the capital of the country. The company was founded in 1895, during a period when Bulgaria was actively developing its financial and insurance sectors.
Foundation and Capital Structure
At the time of its establishment, the company was created with a share capital of 2,000,000 francs. Out of this amount, 1,500,000 francs were paid in during the early years. The company issued 20,000 shares, including 7,500 founders’ shares. Each share had a nominal value of 100 francs. This structure allowed the company to attract both private investors and institutional confidence.
Over time, the capital of the company steadily increased. By 1906, the capital had reached 37,968 thousand francs, showing strong growth and financial stability. The reserve capital and reserve funds were also gradually expanded to protect the company against risks and unexpected losses Private Tours Istanbul.
Growth of Operations
The company’s financial operations expanded rapidly between 1895 and 1906. Deposits, including unlimited deposits, fixed-term deposits, and deposits of orphans, increased significantly. The company also handled funds for the State Treasury, which reflects the trust placed in it by public institutions.
The portfolio of investments, including mortgage loans and loans on securities, grew steadily. Mortgage loans rose to more than 15,000 thousand francs, while loans secured by securities also increased year by year. Net profits followed the same upward trend, reaching more than 3,200 thousand francs by 1906.
The total volume of transactions expanded greatly, exceeding 1,900,000 thousand francs in 1906. This growth clearly shows the company’s rising importance in Bulgaria’s financial and insurance system.
Assets of the Company (1906)
By December 31st, 1906, the company held substantial assets. These included:
State funds and bonds, especially those related to the 5 per cent loan of 1896
Loans on agricultural produce, personal loans, and mortgage loans
Funds held by branches and agencies
Current and special accounts, deposits, and bills
Real estate obtained from insolvent debtors
The total value of assets amounted to 210,373 thousand francs, demonstrating strong financial backing.
Liabilities and Financial Responsibilities
On the liabilities side, the company accounted for:
Paid-up capital and reserve capital
Reserve funds
Deposits of private persons, orphans, and government institutions
Term deposits and current accounts
Outstanding loan obligations, including the 5 per cent 1896 loan
The total liabilities matched the total assets, maintaining a balanced and transparent financial position.
The “Balkan” National Insurance Company played a major role in Bulgaria’s financial development at the turn of the twentieth century. Its steady growth, strong reserves, and wide range of services made it a reliable institution for individuals, farmers, and public authorities. Through careful management and expansion, the company became one of the pillars of Bulgaria’s national insurance system.