Slovakian insurance market

The Slovakian insurance market is highly concentrated. The two largest insurance groups had a market share of around 56% in the first three quarters of 2019. The five largest insurance groups even generated around 76% of the premium volume.

Market growth in the 1ST TO 3RD Quarters of 2019 compared to the previous year

Slovakia – Market growth in the 1st to 3rd quarters of 2019 compared to the previous year (bar chart)
Source: Slovak Insurance Association

Premium volume was around EUR 2.0 billion in the first three quarters of 2019, representing a small year-on-year increase of 0.6%. While non-life insurance recorded a small decrease of 0.6%, life insurance increased by 2.0%.

The decrease in the non-life sector was, among other things, due to a drop in premiums from health insurance (-7.1%) and general liability insurance (-12.1%). The motor lines of business, on the other hand, were the growth drivers, with both motor third party liability (+4.6%) and motor own damage insurance (+3.2%) generating solid gains in the first three quarters of 2019. The non-life sector was negatively affected by an insurance tax of 8% introduced as of 1 January 2019.

Life insurance premiums rose during the reporting period due to an increase of 2.5% for life insurance with profit participation and 5.0% for unit-linked and index-linked life insurance.

According to Statista, a per capita average of EUR 379 was spent on insurance premiums in Slovakia in 2018. EUR 195 of this amount was spent on non-life insurance and EUR 184 on life insurance.

VIG companies in Slovakia

Market shares of the major insurance groups

Slovakia – Market shares of the major insurance groups (ring chart)
Source: Slovak Insurance Association; as of 9M 2019

Two VIG insurance companies, Kooperativa and Kommunálna, are represented in the Slovakian insurance market. Their market share of 30.6% puts them in first place in Slovakia. They hold second place for non-life insurance and first place for life insurance.

Financial performance indicators in the Slovakia segment

Premium development

PREMIUMS by line of business

Slovakia – Premiums by line of business (ring chart)
Values for 2018 in parentheses

Premiums written in the Slovakia segment remained almost unchanged at EUR 798.9 million in 2019 (2018: EUR 799.6 million). After adjusting for single premiums in life insurance business, however, an increase of 2.6% was recorded. Net earned premiums were EUR 671.6 million in 2019 (2018: EUR 670.2 million).

Result before taxes

The Slovakian companies generated a result before taxes of EUR 48.9 million in 2019 (2018: EUR 47.2 million). This represents a year-on-year increase of 3.5%. It should be noted that the result for the previous year was burdened by significantly larger allowances for receivables.

Combined ratio

The combined ratio for the VIG insurance companies in Slovakia improved to 97.1% in 2019 (2018: 97.3%).