STATISTICS: POLAND, 1H2018: improved profitability in life insurance despite reduction in GWP

The largest insurance market in the CEE, Poland, ended1H2018 with GWP worth EUR 7.36 billion (PLN 32.12 billion). In local currency, the y-o-y comparison shows a positive rate growth of 1.7%. Yet, given the roughly 3% depreciation of the Polish zloty against Euro, the market results denominated in European currency show a market decrease of 1.4%.

The life insurance segment has recorded a 11.6% decrease in total GWP, to EUR 2.55 billion, losing about 4 percentage points of its weight in the market portfolio, to 34.7%. The Unit-Linked segment has shown the worst dynamic, with GWP decreasing y-o-y by over 26%, to EUR 987.4 million (from EUR 1.34 billion in 1H2017). Yet the net profit of life insurers after the second quarter of 2018 amounted to PLN 1.3 billion (~EUR 298 million) and was by 8% higher than a year earlier, a press statement released by the Polish Chamber of Insurance (PIU) said. Also, the technical result of life insurance amounted to PLN 1.5 billion (~EUR 344 million) and was lower than a year earlier by 1.2 percent.

The non-life insurance sector saw a positive change in GWP, to a total of EUR 4.8 billion (up 5% y-o-y). Most of the non-life business lines have recorded a positive dynamic. Yet, among the classes with a relevant contribution to the market portfolio, the "Fire and allied perils" class and the Financial loss class have recorded the biggest reductions in GWP.

On the other hand, paid claims for non-life insurance have increased by 2.7%, to EUR 291.5 million. A large part of this increase was generated by "damages to property" insurance lines. "The first half of the year was marked by large losses in agriculture, hence the compensation in the group "other material damage" increased by as much as 60%. Agricultural insurance, in the context of climate change, is one of the most important challenges for the insurance market for the coming years. We must remember, however, that a good policy is only one element of risk management. The insurance supports, but does not replace, a wider strategy," explained Andrzej MACIAZEK, vice president of the board of PIU.

Motor insurance lines recorded also a positive dynamic, but far below the high double-digit growth rates of 2017, especially due to the flattening trend of the motor insurance prices. "The price increase on the MTPL market has clearly slowed down. Payments are increasing, but are also less dynamic than 2-3 years ago. This means that there are no new payout titles. We have an important law ahead of us regarding the regulation of the so-called compensation companies. Although it does not directly concern the scope of the insurer's liability, it may have an impact on the MTPL market. We are also waiting for the effects of the work done on the regulation of redress. Predictability in this area would allow for a much greater price stability in the future," said J. Grzegorz PRADZYNSKI, president of the board of the Polish Chamber of Insurance.

Overall, according to PIU calculations, Polish property insurers ended the second quarter of 2018 with a profit of PLN 2.5 billion (~EUR 573 million), which means a decrease of 3.4%. The technical result of property insurers amounted to PLN 1.3 billion (~EUR 298 million) and was 18.3%. higher than a year earlier.

Access www.xprimm.com and download the 1H2018 Polish insurance market statistics.

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

Share |

Related articles

POLAND: insurance brokers have mediated GWP of EUR 1.7 billion in 2017

The total number of insurance brokers licensed in Poland at the end of 2017 was of 1,416. Throughout the year, 34 deletions from the register of insurance brokers were made, a Polish Financial Supervision Authority's Report on the condition of the brokerage market in 2017 shows.

2018-12-13

ON THE MOVE

Peter CLARKE named VP & COO of FAIRFAX

FAIRFAX Financial Holdings Limited announced that Peter CLARKE has been appointed Vice President (VP) and Chief Operating Officer (COO) of FAIRFAX, reporting to FAIRFAX President, Paul RIVETT.

12.02.2019

ERGO Group appoints a Polish manager

Adam ROMAN, board member of Ergo Hestia (Poland), will hold the position of Head of Global P&C of the ERGO group, effective 1 March. His tasks will include supervision over property insurance of the group in the areas of underwriting, actuarial and pricing, as well as reinsurance.

07.02.2019

TOP EVENT

Inclusive Insurance - a creative solution to narrow the protection gap in the emerging markets of the Southeastern Europe

Insurance should be accessible to all social classes, regardless of their wealth & income status. Products offered today are conventional insurance products, largely inspired from the developed markets as "one-size-fits-all" solutions, affordable to only middle- and high-income clients in the Eastern Europe's emerging & developing markets. Inclusive insurance's goal is making insurance available to all, with responsible insurance offers, thus making up for a solution to narrow the insurance coverage gap in the region.

14.02.2019

Latest trends and challenges in the property and motor insurance lines under scrutiny, in Vienna

Property and motor insurance lines are providing for about 75% of the non-life insurance business in the CEE region, but are responsible for over 77% of the claims expenses. As such, although other classes of risks are emerging, for the time being and most probably for a rather long period ahead, property and motor insurance lines will continue to be at the heart of CEE's insurance market architecture.

14.02.2019

FIAR 2019: Register before 28 February and save EUR 400 of the attendance fee

To the satisfaction of its traditional guests, FIAR returns in 2019 to its historical hometown, Sinaia. The forthcoming edition will benefit from the comfort and professional facilities of a new venue, the Conference Center of the International Hotel ****, located in the heart of the beautiful mountain resort. Registration is opened at a significantly discounted early bird rate until 28 February.

10.01.2019

See all