Polish insurance market

The five largest insurance groups in the country generated around 73% of the total premium volume in Poland in the 1st to 3rd quarters of 2018. The two largest insurance groups generated around 52%.

Market growth in the 1ST TO 3RD Quarters of 2018 compared to the previous year

Poland – Market growth in the 1st to 3rd quarters of 2018 compared to the previous year (bar chart)

Source: Financial Market Authority Poland

The overall market was unchanged in Poland in the first three quarters of 2018 due to offsetting changes in the non-life and life sectors, with premiums rising only 0.3% in local currency.

Market shares of the major insurance groups

Poland – Market shares of the major insurance groups (ring chart)

Source: Financial Market Authority Poland; as of 9M 2018

The non-life sector grew 7.3%. Motor third party liability premiums increased 3.2%. This is a moderate change compared to the double-digit growth in the previous year and is due to the increase in number of insured vehicles. The rates are at the same level as the previous year. Thanks to previous price increases, however, the profitability of the motor third party liability line of business has improved. Motor own damage insurance increased 8.9%, based both on policies and prices. The non-motor lines of business gained 10.6%. The gains were particularly large for health insurance, which recorded a 31.1% increase in premiums.

Life insurance premium volume fell 10.3% due to a 31.7% decrease in single premium business. The regular premium business remained almost unchanged at 0.2%.

A high employment rate and rising wages are stimulating private consumption. The Polish economy is also benefiting from an increase in investment. According to Axco Global Statistics, an average of EUR 371 per capita was spent on insurance in Poland in 2017. Of this, EUR 254 was spent on non-life insurance and EUR 117 on life insurance.

VIG companies in Poland

VIG is represented by the companies Compensa Life and Non-Life, InterRisk and Vienna Life in Poland. In the middle of 2018, Vienna Insurance Group signed a purchase agreement to acquire Gothaer TU. The acquisition was concluded after approval by the local authorities and strengthens VIG’s market presence in the non-life sector. The merger of two Group companies, Polisa and Compensa Life, was another important step for the Group in Poland. The merged company is one of the largest life insurance companies in Poland and will operate under the Compensa Life brand in the future.

Vienna Insurance Group holds a market share of 6.0%, putting it in fourth place in the overall market. In the non-life sector it is fourth in the ranking of top insurers in the country, and in the life sector it is fifth.

Financial performance indicators in the Poland segment

Premium development

Premiums by line of business

Poland – Premiums by line of business (ring chart)

Values for 2017 in parentheses

VIG generated total premiums written of EUR 897.8 million in the Poland segment in 2018 (2017: EUR 886.6 million), representing an increase of 1.3% compared to the previous year. After adjusting for the single premium life insurance business, an increase of 12.5% was recorded. The increase was mainly due to good performance in the motor lines of business and other property and casualty insurance. Net earned premiums were EUR 685.8 million in 2018, 4.3% lower than in 2017.

Expenses for claims and insurance benefits

The Polish Vienna Insurance Group companies had expenses for claims and insurance benefits (less reinsurance) of EUR 516.8 million in 2018 (2017: EUR 532.3 million). This corresponds to a decrease of EUR 15.5 million or 2.9% in expenses for claims and insurance benefits (less reinsurance), which is due to a drop in business for unit-linked life insurance.

Acquisition and administrative expenses

The Polish VIG companies had EUR 148.3 million in acquisition and administrative expenses in 2018 (2017: EUR 158.8 million). The drop is due to an increase in reinsurance commissions from internal Group quota treaties.

Result before taxes

The result before taxes fell to EUR 32.2 million in 2018 due to new reserves formed for expenses incurred as a result of changes to the surrender terms and conditions for certain life insurance products (2017: EUR 35.5 million).

Combined Ratio

The combined ratio improved to 92.6% in 2018 due to continued good performance in the motor lines of business (2017: 93.9%).

Vienna Insurance Group in the Poland segment

in EUR millions



∆ in %

∆ absolute

Premiums written





Motor own damage insurance (Casco)





Motor third party liability insurance





Other property and casualty insurance





Life insurance – regular premium





Life insurance – single premium





Health insurance





Result before taxes