STATISTICS: POLAND 1H2014: the second year of consistent drop in life insurance GWP

The Polish market continued to saw in 1H2014 the descending trend recorded in 2013. Thus, overall GWP decreased by 7.4% y-o-y, to PLN 27.7 billion, again driven by the 11.3% decrease in life insurance underwriting. However, due to the Polish zloty appreciation during the last 12 months, the market results look better denominated in euro (EUR 6.7 billion in GWP, 3.67% down y-o-y).

The life insurance segment went down already for two consecutive years, single premium products being almost entirely responsible for the negative trend as they have lost over 45% in GWP volume since 1H2012. According to several market sources, the main reason lies in the less effective sales of short-term endowments and structured products in the bancassurance channel after entering into force of the law on lump-sum tax on overnight deposits in 2012.

The non-life insurance segment saw also a slightly negative trend, with GWP going down by 2.9%, to PLN 13.48 billion. However, in European currency the market status looks better, with GWP of EUR 3.24 billion, 1% up y-o-y. Both property and motor insurance lines recorded a negative change in GWP, while on the paid claims side the market figures went up by a couple of percentage points. Lower rates seem to be accountable for the GWP drop on both lines.

No doubt, the PZU companies are leading both the life segment (29.4% market share) and the non-life sector (31.86% share of total GWP). OPEN LIFE and METLIFE are the ranking second and third on the life insurance market, with shares of 8.5% and 7.2% of the total GWP. WARTA and ERGO HESTIA are completing the non-life Top3 ranking, with weights of 13.6% and 10.6% respectively.

The market aggregated net profit in 1H2014 stood at PLN 4.4 billion, 33.4% down y-o-y. However, the overall technical result improved y-o-y by about 14%, to PLN 2.6 billion, the drop in profitability being triggered by the significantly lower investment income achieved by the companies (almost 54% less than in 1H2013).

An extended analysis of the Polish insurance market evolution in 1H2014 will be available in the forthcoming issue of XPRIMM Insurance Report 1H2014, to be released on October, 19th, on the occasion of the Baden-Baden XPRIMM Reception (Kurhaus Casino, Runder Saal, 18:30 - 20:30 hours - register here).

Access www.xprimm.com and download the 1H2014 Polish insurance market statistics.

Market portfolio (in EUR and PLN):
  • Gross written premiums
  • Paid claims
  • Growth rates
Market rankings in EUR and PLN (GWP/Market shares/Growth rates):
  • Life insurance ranking
  • Non-life insurance ranking

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

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