Hopes for a strong recovery of the insurance market were not confirmed as the full year figures of the CAP - the Czech Insurers Association show only a very small growth in terms of GWP (1.05%), to CZK 115.19 billion. In European currency, given the significant depreciation of the Czech koruna, the total GWP amounted to EUR 4.15 billion, a value close to the one from 2013.

The non-life insurance segment recorded a quasi stable evolution during the year, slightly accelerating in the last quarter. All in all, GWP for non-life insurance increased by 2.27% in national currency, to CZK 69.07 billion. Most of the segment's positive evolution came from the motor insurance lines, especially from the MTPL class which recorded a 4.6% growth in premiums.

The MTPL insurance line saw a 4.6% growth in GWP, to CZK 20.08 billion (EUR 724.4 million), exceeding for the first time after 2011 the CZK 20 billion threshold. Progressively increased premium rates in new and renewed contracts, as well as a strong increase of the car sales market were the main drivers of the MTPL premium volume growth. In fact, full year 2014 car sales hit a historical record, with over 192 thousand units sold, 16.7% up y-o-y and 18,000 units more than the previous record figure reported for 2012. As far as the MTPL tariffs are concerned, the relative hardening trend of the market is considered still insufficient for covering the about CZK 3 billion increase of the market's liabilities generated by the New Civil Code and the higher payments to the Loss Prevention Fund and Fire Brigade, as estimated by CAP representatives.

On the life insurance side, GWP decreased y-o-y by 0.7% in local currency, to CZK 46.12 billion, loosing in absolute terms about CZK 300 million in volume, a downward trend which equally affected both single premium and products with regular payment. New business production in life insurance fell by 7.6% and total insurance portfolio decreased y-o-y by 200,000 contracts (-3.3%), as stated by CAP.

The final results of 2014 on the life insurance segment seem somehow unexpected after the positive trend recorded in the first quarters of the year. However, as shown by the CAP's statements after the first three quarters, a large part of the premium's increase came from the cross-border business via branches or under FOS. Excluding this segment, life insurance premium underwritten by the Czech insurers increased only by 0.3%.

Access www.xprimm.com and download the FY2014 Czech Republic insurance market statistics.

Market rankings in EUR and CZK (GWP/Market shares/Growth rates) according to the Czech Insurance Association (CAP):

• Overall market ranking
• Life insurance ranking
• Non-life insurance ranking
• MTPL insurance ranking
• Motor hull insurance ranking