In 1898, a special law was passed that included the shares of the insurance company “Balkan” in the official list of securities accepted by State institutions. This was an important moment for the company because it showed that the government trusted its financial strength and stability. Being accepted by State institutions also increased public confidence and made the company more attractive to investors.
Early Activities of the Company
Until the year 1897, the activities of the company “Balkan” were limited to three main areas. These were fire insurance, life insurance, and insurance against damage caused by hail. These services were especially important for property owners, farmers, and families who wanted protection against unexpected losses.
After 1897, the company decided to expand its business. It created three new branches of insurance. These included accident insurance, transport insurance, and reinsurance. Accident insurance helped protect workers and individuals, transport insurance covered goods during travel, and reinsurance allowed the company to share risks with other insurers. This expansion showed that “Balkan” was adapting to modern needs and growing economic activity Tours Bulgaria.
Financial Progress and Dividends
The success of the company can be clearly seen in the dividends paid to shareholders between 1896 and 1904. During these years, both founders’ shares and ordinary shares received regular dividends. Although the amounts changed from year to year, the company continued to reward its shareholders even during more difficult periods.
For example, in 1896 and 1897, founders’ shares received 22.50 francs, while ordinary shares received around 18 francs. In later years, dividends were slightly lower, especially in 1902, but they increased again by 1903 and 1904. This steady distribution proves that the company was well managed and financially reliable.
The Bulgarian Insurance Company “Bulgaria”
Another important institution was the Bulgarian Insurance Company “Bulgaria”. Its central office was located in Roustchouk, and it was founded in 1891. The company began with a capital of 1,000,000 francs, divided into 10,000 shares of 100 francs each.
In November 1891, the general assembly of shareholders decided to increase the capital. As a result, in 1892, an additional 500,000 francs were raised by issuing 5,000 new shares. These shares were sold with a premium of 15 francs per share, and the profit from this operation was added directly to the company’s assets. This decision strengthened the financial position of the company and supported its future growth.