The Law on the National Bank of Serbia, adopted in early August, stipulates the establishment of Administration for the Supervision of Financial Institutions. The former responsibilities of specific sectors for supervision of banks, voluntary pension funds, under the jurisdiction of the vice-governor, will be taken over by the authority expected to be established.

Serbia's Dunav Osiguranje said its consolidated net profit fell to 68.4 million dinars (USD 725,000/ EUR 577,000) in the first half of 2012 from 84.7 million dinars a year earlier.

The number of newly registered passenger cars in Serbia rose an annual 2.3% in the second quarter to 35,133 after climbing 20.4% in the previous quarter, the statistics office said in a statement.

Serbian insurer Globos Osiguranje said it decided to raise its share capital by 98.9 million dinars (USD 1.04 million/ EUR 834,940) from some 1.0 billion dinars by converting retained earnings into equity.

Gross written insurance premiums in Serbia rose by 6.23% in local currency in the first half of 2012, led by growth in life insurance lines. The premiums totaled RSD 32.49 billion, with life insurance growing 17.44% to RSD 5.53 billion, and non-life insurance expanding 4.19% to RSD 26.96 billion, according to the National Bank of Serbia. In European currency, due the devaluation of RSD in relation to EUR, the insurance market did not show growth in terms of written premiums, which amounted EUR 280.51 million, 6.02% less YoY.

Serbian life insurer Sava Zivotno Osiguranje has raised its capital by 52.4 million dinars to 296.9 million dinars, its parent, Slovenian reinsurer Sava Re, said on Friday.

Serbia's government announced yesterday that on 16 July this year it passed a decision on the provision and reservation of RSD 500 million in the case of the insurance company "Dunav Osiguranje".

In 1Q2012, the Serbian economy contracted 1.3% amid a frozen agreement with the IMF and weak demand for Serbian exports in the European Union because of the sovereign-debt crisis. The International Monetary Fund forecast Serbian economic growth at 0.5% this year and 3% next year. Despite economic decline, GWP in Serbia rose by 3.89% in the first quarter of 2012, led by growth in life insurance policies, according to financial figures recently published by the National Bank of Serbia (NBS).

Serbia's Dunav Osiguranje said its net profit rose 20.4% in 2011.

Basler Osiguranja, a member of Baloise Holding AG (BALN), Switzerland's third-largest insurer, says growth of premiums may outpace Serbia's economic growth after 2014 and probably reach 1 billion euros ($1.27 billion) in 2018.

UNIQA insurance company in Serbia took the fourth position in the market of life and non-life insurance. UNIQA Life Insurance was in 2011. year recorded a 8.04 percent market share, a growth of 0.54 percent was provided by the company to jump in safe fourth place. Life insurance premiums grew by 14.52 percent over the previous year and amounted to 803 million dinars.

Last year, the Russian insurer SOGAZ, obtained a license to do business in Serbia, together with the country's gas monopoly SRBIJAGAS. At the end of April, 2012, has developed the opening ceremony of the SOGAZ subsidiary. The new company was named after the city where its headquarters are located - SOGAZ Novi Sad. The co-founders of the subsidiary are SOGAZ (51% of capital) and OJSC Serbiagas (49% of capital), leader of Serbian gas industry.

In 2011, total insurance premium amounted to RSD 57.3 billion (EUR 548 million), adding a mere 1.4% on the last year's figure, indicate the final financial data. "The development of the Serbian insurance market measured in terms of premium growth showed the deceleration of positive trends. In 2011, total premium increased by 1.4% nominally, but fell by 5.2% in real terms relative to 2010", according to the Insurance Sector in Serbia - Report for 2011 published in early April by the National Bank of Serbia (NBS).

Serbian insurer Delta Generali Osiguranje said its premium income rose 4.0% to 10.9 billion dinars ($128 million/97.7 million euro) in 2011.

Grawe Osiguranje, the Serbian unit of Austria's Grawe Insurance Group, said its net profit totaled 169 million dinars ($1.98 million/1.5 million euro) in 2011.

Since the middle of last year, the number of commercial mortgage loans approved in Serbia has plunged by 15.3%. Consequently, apartment sales fell by 30%, apparently also pulling back the household insurance business which recorded an over 30% negative change in the first three quarters of 2011, as compared to the same period of 2010. Thus, after registering a small y-o-y nominal increase in 2010, of almost 3%, the 3Q2011 statistics show a 36% fall in premium, to RSD 3.67 billion (EUR 36.3 million). Similar situations of the apartment sales in Croatia and Montenegro didn't have the same impact on the dwelling insurance sector.

In Serbia, more than 85% of the MTPL insurance policies are sold via periodic motor vehicle inspection (PMVI) Agencies, "hence the sale is practically relocated from insurance companies", declared Vladan MANIC, Secretary General, Association of Serbian Insurers.

The combined written premiums of the Serbian units of Austrian insurance group UNIQA rose 10.06% to 3.82 billion dinars ($46 million/35 million euro) in 2011, company data indicated.

Starting from 1 February 2012, Serbian tax relief on voluntary pension fund contributions is increased from RSD 4,343 to RSD 4,647. Employer contributions to voluntary pension funds up to RSD 4,647 per employee on a monthly basis are exempt from personal income tax and compulsory social contributions. The same amount of contribution by direct debit from employee salary is also exempt from tax.

The Serbian arm of Austrian insurance group UNIQA said it has increased its capital by 3.0 million euro ($3.85 million).