THE PROFITS of insurance companies operating in Slovakia amounted to EUR 155 million in 2012, which was a 20-percent drop compared to the previous year. The National Bank of Slovakia (NBS) ascribes this decrease to particularly high profits earned by the insurers in 2011.

More than 183,000 motor vehicles are not covered by liability car insurance, which is compulsory in Slovakia. The Slovak Insurers' Bureau (SKP) registered at the end of 2012 a total of 2.355 million insured vehicles; however the total number of motor vehicles in Slovakia based on the statistics of the Interior Ministry is 2.538 million.

The Slovak insurance market continued to slow down in January-September 2012, the total GWP realized by the local insurance companies totaling EUR 1.58 billion, down by 0.67% y-o-y, according to the financial figures published by the Slovak Insurers Association - SLASPO.

Today Dutch insurer Achmea gave a Notice of Arbitration to the government of the Slovak Republic. The notice opens a new arbitration procedure between Achmea and the Slovak Republic with regard to the plans of the Slovak government to expropriate private health insurers. The notice is given pursuant to art. 3 of the United Nations Commission on International Trade Law Arbitration Rules of 1976 and art. 8 of the Investment Treaty between the Kingdom of The Netherlands and the Slovak Republic.

Slovakia has lost the drawn out case lodged against it by health insurance company UNION after PM Robert FICO banned private health insurers from making profits under his first government in 2008. The International Court of Arbitration presided over the case and ruled that the Slovak Republic would have to pay the Dutch owner of health insurer UNION, the company ACHMEA, some EUR 22 million in compensation and EUR 3 million in arbitration costs.

The International Court of Arbitration ruled in favor of the health insurance company UNION, a health insurance subsidiary of the Dutch insurer ACHMEA, following its legal action started against Slovakia. The insurer claimed the violation of the investments protection agreements when PM Robert Fico, during his first mandate, decided to ban private insurers from making profits. The Court decided that the Slovak Republic will have to pay ACHMEA about EUR 22 million in compensation for the loss of profit and another EUR 3 million in arbitration costs.

The two private health insurance companies currently operating in Slovakia will have to leave the market next year, as the government approved a plan to reinstate a single public health-insurer system starting 2014 in order "to stop the inflow of funds to private provider", Bloomberg reports.

The Slovak insurance market grew by 0.9% in the first six months of 2012, according to industries figures published by SLASPO (Slovak Insurance Association). The value of premiums amounted to EUR 1.09 billion in 1H2012, up EUR 9.5 million in absolute value, compared with January-June 2011.

Gross premiums written by the Slovak Insurance Association (SLASPO) insurers decreased by 0.75% on the year to EUR 581.72 million in the first quarter of 2012, recently figures published by SLASPO showed. During the analyzed period, 23 SLASPO members operated in the profile market.

Slovakia's prime minister Robert Fico plans to reduce national healthcare to a single state-owned insurer by 2014, and this would mean the nationalisation of two private health insurers or buying them.

Last year, Slovak insurance market totaled EUR 2.04 billion, registering an increase by 1.3%, according to the financial figures published by the National Bank of Slovakia (NBS). Previous, SLASPO - the Slovak Insurers' Association, reported a 2.04% y-o-y growth, up to EUR 2.11 billion.

2011 was a year of modest growth for the Slovak insurance market. All in all, the marked reported a 2.04% y-o-y growth, up to EUR 2.11 billion, according Slaspo - the Slovak insurers' association. Given the legal status of five companies, which are Slaspo members but are operating in Slovakia based on the right of establishment principle, the supervising authorities' data are shown a slightly lower GWP value, of EUR 2.04 billion. However, differences between the two sources are insignificant in relation to the total results and are consistent in terms of general trend.

At a special ceremony, Gunter GEYER, CEO of VIENNA Insurance Group, received an honorary doctorate from the University of Economics in Bratislava. "I am extremely honored to receive this doctorate. Following Slovakia's dynamic development over the past 20 years has been a fascinating experience, and I am very proud to have played my part in it," said Gunter GEYER.

GENERALI Slovensko recorded more than 100,000 insurance claims for 2011, of which almost 40 % comprised damage in motor insurance. The total paid indemnity accounted for almost EUR 102 million, announced GENERALI PPF Holding.

Slovak insurance market grew by 2.8% y-o-y in 3Q2011 in terms of gross written premiums, the Slovak Insurance Association (SLASPO) reported. During the analyzed period, 24 SLASPO members operated in the profile market. These companies showed a total insurance premium of EUR 1.6 billion.

Slovak Association of Insurance brokers declared ALLIANZ - Slovenska the best motor insurer at the 2011 edition of SIBAF Awards. Mitsui Sumitomo Insurance Europe was declared best insurer for industrial risks insurance.

By the end of September 2011, amid fears of a deceleration in global economic growth, the National Bank of Slovakia lowered its GDP growth estimate for 2011 and 2012 by 0.2 and 0.9 percentage points respectivelly. According NBS, Slovakia's economy is now expected to grow by only 3.4 percent in 2011 and by 3.8 percent in 2012. The main reasons for the less optimistic forecast are the lower expected growth in foreign demand and the below the line household consumption. The new prognosis was also affected by measures associated with the consolidation of public finances. Still, even less optimistic than in the beginning of 2011, the Slovak economy perspectives are good, maintaining the upward trend installed in 2010.

THE SLOVAK subsidiary of AXA Bank Europe launched commercial operations in early April when it began offering savings accounts to Slovak customers as it has been doing in the Czech Republic since early 2010.

Together with the two other group members, KOMUNALNA Poistovna and Poistovna SLOVENSKEJ, the VIENNA Insurance Group (VIG) holds a position of market leader of its core market in Slovakia, according to company's press release.

25.10.2010 (The Slovak Spectator)
In late October insurance company Genertel, part of the Generali group, will enter the Slovak market. Genertel will be the only insurer selling its products via direct channels, specifically the internet and a call centre.