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 2020. The five largest insurance groups even generated around 77% of the premium volume.

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

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

Source: Slovak Insurance Association

Premium volume was around EUR 1.9 billion in the first three quarters of 2020, representing a year-on-year decrease of 3.9%. Both non-life (-2.8%) and life insurance (-4.9%) contributed to this decline.

According to the National Bank of Slovakia (NBS), the decrease in the non-life sector was partly due to the marine, aviation and transport (-9.3%), health (-37.2%) and credit and guarantee (-20.6%) lines of business. The motor lines, on the other hand, were the growth drivers, with motor third party liability rising 3.5% and motor own damage insurance generating a solid gain of 5.9% in the first three quarters of 2020. In addition to the COVID-19 pandemic, volume was also depressed by the 8% tax introduced on non-life insurance products (except motor third party liability insurance) in the previous year.

According to NBS, the decrease in life insurance was the result of a 14.5% drop in life insurance with profit participation and a decrease in unit-linked and index-linked life insurance (-8.7%) compared to the same period in the previous year.

According to Axco Global Statistics, a per capita average of EUR 417 was spent on insurance premiums in Slovakia in 2019. EUR 232 of this amount was spent on non-life insurance and EUR 185 on life insurance.

Market shares of the major insurance groups

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

Source: Slovak Insurance Association; as of 9M 2020

VIG companies in Slovakia

Two VIG insurance companies, Kooperativa and Kommunálna, are represented in the Slovakian insurance market. Their market share of 29.6% 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

Premiums by line of business

Slovakia – Premiums by line of business (ring chart)

Values for 2019 in parentheses

Premium development

The VIG insurance companies in the Slovakia segment wrote EUR 729.5 million in premiums in 2020, a decrease of 8.7% compared to the previous year (2019: EUR 798.9 million).

This was primarily due to a decrease in premiums in the life lines of business. Net earned premiums were EUR 597.3 million in 2020 (2019: EUR 671.6 million).

Result before taxes

The Slovakian companies generated a result before taxes of EUR 51.4 million in 2020 (2019: EUR 48.9 million). Compared to the previous year, this corresponds to an increase of 5.1%, which was due to the positive development in the combined ratio.

Combined ratio

The combined ratio for the VIG insurance companies in Slovakia improved to an excellent 89.0% in 2020 (2019: 97.1%). The improvement was mainly the result of better claims development, which was due to fewer large losses in other property and casualty insurance, among other things.