Polish insurance market

The five largest insurance groups in the country generated around 73% of the total premium volume in the first three quarters of 2020. The three largest insurance groups contributed around 59%.

Market growth in the 1ST to 3RD Quarters of 2020 compared to the previous year

Poland – Market growth in the 1st to 3rd quarters of 2020 compared to the previous year (bar chart)

Source: Financial Market Authority Poland

The Polish insurance market recorded a slight year-on-year decrease of 1.0% in local currency terms in the 1st to 3rd quarters of 2020. The decrease was largely due to the life insurance line of business (-3.2%). Non-life insurance remained stable, with an increase of 0.1%.

Premium volume in the motor lines of business, which dominate the non-life business with a share of around 56%, decreased in the first nine months of 2020. Motor third party liability insurance fell 2.9%, and motor own damage insurance recorded a decrease of 0.1%. The non-motor lines of business, on the other hand, predominantly showed increases, with fire and natural hazards insurance recording impressive growth of 9.9%. Health insurance products in the non-life sector fell 25.1% compared to the same period in the previous year.

The decrease in life insurance in the 1st to 3rd quarters of 2020 was mainly the result of a sharp drop in single premium business (-24.1%). Premiums from regular premium life insurance, in contrast, grew 2.6%.

According to preliminary data from Axco Global Statistics, an average of EUR 374 per capita was spent on insurance in Poland in 2019. Out of this, EUR 282 was spent on non-life insurance and EUR 92 on life insurance.

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 2020

VIG companies in Poland

VIG Insurance Group is represented by Compensa Life and Non-Life, InterRisk, Vienna Life and Wiener TU in the Polish market. InterRisk also invested in the mutual insurance association TUW “TUW” in 2019. In November 2020, VIG Insurance Group signed a share purchase agreement with the Dutch company Aegon N.V. to acquire its companies in Hungary, Poland, Romania and Turkey. The acquisition will allow VIG Insurance Group to strengthen its market position and significantly expand its potential in the pension fund business in Poland. The acquisition is expected to be formally concluded in the 2nd half of 2021. The transaction is subject to the approvals required under supervisory and competition law.

VIG Insurance Group holds fourth place in the overall market with a market share of 8.5%. 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 fifth.

Financial performance indicators in the Poland segment

Premiums by line of business

Poland – Premiums by line of business (ring chart)

Values for 2019 in parentheses

Premium development

The Poland segment recorded total premiums written of EUR 1,196.2 million in 2020, representing an increase of 5.7% compared to the previous year (2019: EUR 1,132.0 million). This increase was mainly due to growth in other property and casualty, motor third party liability and single premium life insurance. Net earned premiums were EUR 926.6 million in 2020, 4.5% higher than in the previous year (2019: EUR 886.5 million).

Result before taxes

The result before taxes was EUR 22.6 million in 2020 (2019: EUR 69.2 million). The decrease of 67.4% was due to provisions for expenses arising from a change in the surrender terms for the repurchase of certain life insurance products, as well as the positive effects of an asset tax refund in the previous year.

Combined ratio

The combined ratio continued to be at a good level of 96.7% in 2020 (2019: 94.8%).