Polish insurance market
The five largest insurance groups in the country generated around 77% of the total premium volume in the first three quarters of 2022. The three largest insurance groups contributed around 60%.
The Polish insurance market generated PLN 52.7 billion in the 1st to 3rd quarters of 2022, representing an increase of 3.6% compared with the same period from the previous year. The increase is predominantly due to the good performance of non-life insurance, which grew 7.3% year-on-year. Life insurance, on the other hand, recorded a decrease of 4.2% in the 1st to 3rd quarters of 2022.
Premium volume in the motor lines of business saw gains in the first nine months of 2022, primarily due to the good performance in motor own damage insurance, which recorded growth of 13.7% compared with the same period from the previous year. Recording +1.0%, motor third party liability insurance remained stable year-on-year. This is due to a slight decrease in the average premium, which in turn is due to the ongoing pressure from competition on the market. The non-motor lines of business grew 8.9%, which is due in particular to the good performance in property and casualty insurance. The health insurance products in non-life insurance generated a moderate year-on-year increase of 1.3%.
Life insurance fell by 4.2% in the 1st to 3rd quarters of 2022. This was due to negative performance in single premium life insurance, which recorded a decrease of 36.3% in the 1st to 3rd quarters of 2022. Despite recording a year-on-year increase of 3.7%, regular premium life insurance was unable to offset this decrease.
According to calculations based on data from the International Monetary Fund (IMF) and Polish financial market authority, the average per capita expenditure for insurance in Poland was EUR 401 in 2021. Out of this, EUR 273 was spent on non-life insurance and EUR 128 on life insurance.
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 Türkiye. In Hungary and Türkiye, closing was successfully completed in 2022. For the acquisition of the remaining Eastern European business of Aegon with companies in Poland and Romania, only the approval from Romania is pending for a closing.
VIG Insurance Group held fourth place in the overall market with a market share of 8.9% in the first nine months of 2022. 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 reportable segment
The segment Poland recorded total premiums written of EUR 1,352.9 million in 2022, representing an increase of 5.7% compared to the previous year (2021: EUR 1,279.8 million). This increase was mainly due to growth in the other property and casualty and health insurance lines of business. Net earned premiums were EUR 1,018.4 million in 2022, 3.6% higher than in the previous year (2021: EUR 983.0 million).
Result before taxes
The result before taxes was EUR 51.7 million in 2022 (2021: EUR 69.9 million). This corresponds to a decrease of 25.9%, which is primarily due to the increase in the combined ratio and the decrease in the financial result.
The business operating result in the segment Poland was EUR 51.9 million in 2022 (2021: EUR 70.5 million).
In 2022, the combined ratio was 96.1% due to both increased commissions in direct business and lower commissions from internal Group reinsurance (2021: 93.2%).