Polish insurance market
The five largest insurance groups in the country generated around 72% of the total premium volume in the first three quarters of 2019. The three largest insurance groups contributed around 59%.
The Polish insurance market has recorded very moderate growth for two years. In the 1st to 3rd quarters of 2019 premiums increased 1.5% year-on-year in local currency terms.
In the non-life sector, premiums grew 4.0%. On the one hand, this was due to the good performance achieved in the non-motor lines of business (+8.4%), with private health insurance recording one of the highest growth rates of 11.4%. On the other hand, the increase in the non-life sector was due to an increase in premiums for motor own damage insurance (+4.9%). Motor third party liability insurance, however, recorded a drop of 1.3%.
Premium volume in life insurance fell 3.1% in the first three quarters of 2019, primarily driven by uncertainty about unit-linked life insurance. Premiums from single premium products fell 17.0% in local currency terms, which was at least less than the major drop in premium volume recorded in the previous year. Premiums from regular premium life insurance, in contrast, grew 1.5%.
According to Axco Global Statistics, an average of EUR 371 per capita was spent on insurance in Poland in 2018. Out of this, EUR 273 was spent on non-life insurance and EUR 98 on life insurance.
VIG companies in Poland
VIG Insurance Group is represented by Compensa Life and Non-Life, InterRisk, Vienna Life and Wiener TU (formerly Gothaer TU) in the Polish market. InterRisk also invested in the mutual insurance association TUW “TUW” in 2019. In addition to creating a strategic partnership, it also represented another step towards strengthening its market position in the non-life business.
VIG Insurance Group holds fourth place in the overall market with a market share of 8.1%. In the non-life sector it is positioned as fourth in the ranking of top insurers, and in the life sector it is positioned as sixth.
Financial performance indicators in the Poland segment
A total of EUR 1,132.0 million in Group premiums was written in the Poland segment in 2019 (2018: EUR 897.8 million), representing a double-digit year-on-year increase of 26.1% in the non-life lines of business. This major increase was primarily due to the cooperation with TUW “TUW” and first-time consolidation of the insurance company Wiener TU (formerly Gothaer TU). Net earned premiums were EUR 886.5 million in 2019, 29.3% higher than in 2018.
Result before taxes
The result before taxes rose to EUR 69.2 million in 2019 (2018: EUR 32.2 million), mainly due to very good technical results in the non-life lines of business, a higher financial result and positive effects of an asset tax refund. The previous year, however, was adversely affected by a new provision formed for expenses incurred as a result of changed surrender terms for the repurchase of certain life insurance products.
The combined ratio continued to be at a very good level of 94.8% in 2019 (2018: 92.6%).