According data provided by the Czech National Bank, in the first half of 2015 the Czech insurance market saw a 5.7% decrease in GWP (or 4.99% decrease for the market results denominated in European currency), to CZK 78.2 billion (EUR 2.87 billion). The life insurance segment is entirely responsible for the negative trend, mostly because of the huge decrease in single premium insurance products sales.
The results of the Czech Insurance Association (CAP) member companies for the first quarter of 2015 show an increase of 0.5% in total annual premiums. Market stagnation mainly results from an ongoing decline in life insurance reaching almost 3%. Non-life insurance is still experiencing a mild recovery, namely from 2.3% at the end of 2014 to 2.6%.
The Czech unit of the Vienna Insurance Group (VIG) saw a 1.8 pct decline in written premiums to EUR 457.8m in Q1 2015.
The Export Guarantee and Insurance Corporation (EGAP) insured exports totalling CZK 720bn (EUR 26bn) since 1992. The export headed into more than 100 countries of the world, primarily risky territories.
Czech insurance company Pojistovna Ceske sporitelny, Vienna Insurance
Group (Pojistovna CS) invests millions of Czech crowns in IT. Besides
the biometric signature, it offers also applications to secure
information about insurance, or model contracts (SmartClient), CIANEWS
was told by company spokeswoman Jana Jiraskova. According to her words,
the insurance company wants to allow insured event reports online,
introduce a client portal with information about policies and it wants
to focus on multi-channel communication in the future.
KOOPERATIVA pojistovna - VIG, the second largest insurer in the Czech market, paid CZK 1.5 billion (~EUR 54 million), for 21,000 claims arising from the natural disasters in 2014. By comparison, in the previous year 23,000 similar claims were reported, with a total value of CZK 2 billion, of which CZK 1.6 billion were paid only for the damages produced by the June floods which affected the territory of the Czech Republic in 2013.
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.
According to third-quarter figures of the Czech National Bank, the sector's supervising authority, the Czech insurance market development shows no unexpected major changes. Annual premiums totalled CZK 120.23 billion, 2.6% up y-o-y. Both life and non-life insurance segments saw a positive evolution in terms of GWP.
An ice storm that has affected the Czech Republic in the last couple of
days has hit insurers and rail operators, with the latter providing
compensation to passengers, but has had little impact on manufacturing
and construction firms.
The profit of VIG insurance group, parent company of Kooperativa pojistovna and CPP, prior to taxation reached a total of EUR 127.6m for January to September of 2014. This represents a year-on-year decrease by 11.9%. Gross insurance prescribed by the group in the Czech Republic has decreased year on year by 2.8 % to EUR 1.28bn. Out of this, the segment of life insurance posted 2.7% growth to EUR 645.4m and non-life insurance posted a decrease by 7.9% to EUR 635.2m.
TRIGLAV Group exits the Czech market by selling its local subsidiary TRIGLAV pojistovna, Brno to VIGO Finance, part of VIGO Investments Group. The sale is expected to be completed by May 2015. The decision on the sale is in line with the TRIGLAV Group Strategy, focused on increasing the value of the Group and effectively managing the TRIGLAV Group's subsidiaries. Zavarovalnica TRIGLAV estimates that the sale of the subsidiary will have no major impact on the Group's performance.
The slightly positive trend of the Czech insurance market continued in the first half of 2014, with an overall increase in GWP of 3.6%, to CZK 82.95 billion. However, the almost 6% depreciation of the Czeck currency against the euro made the market results to show a negative change of 2% when denominated in euro, to EUR 3.02 billion.
RENOMIA GROUP, the largest group of insurance brokers on the market in
the Czech Republic, closed out the 2013 fiscal year with a record amount
of insurance premiums negotiated, reaching CZK 5.3 billion, an increase
of 10%. It has thus confirmed its leading position on the Czech
insurance market. In 2013 RENOMIA, a.s. achieved a consolidated pre-tax
profit of CZK 94 million.
Companies, state institutions and insurance companies have been busy tabulating potential losses for Czech businesses due to EU sanctions as well as restrictive measure taken by Russia.
First-quarter figures of the Czech Insurance Association (CAP) member companies revealed a mild recovery after a long period of stagnation in the insurance market. Annual premiums grew by almost CZK 400 million to CZK 30.6 billion (Note: ~EUR 1.1 billion), which is a 1.3% increase. Non-life insurance played an important role in the recovery. Life insurance, a long-term stabilizing segment, went up by only 0.7%.
The Czech insurance market ended 2013 with a modest premium growth of 1.9% y-o-y, to GWP of CZK 156.5 billion, showing an already traditional picture of steadiness. However, in European currency, following the about 9% depreciation of the Czech kroon over the last 12 months, the overall market results show a negative change of 6.6% y-o-y, to a total amount of GWP of EUR 5.7 billion.
Pension company of CESKA Pojistovna (PSCP) is going to take over the
client portfolio of Raiffeisen pension company (RPS) in 2nd and also in
3rd pillar of retirement savings. This acquisition confirms the
long-term strategic cooperation between financial groups of CESKA
Pojistovna and Raiffeisenbank in the field of pensions. PSCP will gain
about 12,200 customers from second pillar and 1000 clients in 3rd
pillar. The whole transaction should be completed after complying with
all regulatory steps at the beginning of the second half of this year.
Insurance companies in the Czech Republic uncovered frauds for over
Kc1bn last year, 2 percent higher than in 2012, and the number of
suspicious cases that they checked grew by 73 percent to 10,600, the
Czech Insurers Association (CAP) informed CTK Tuesday.
Vienna Insurance Group continued on its successful path in the Czech Republic also in 2013. Strengthening its number one position by increasing its market share to excellent 33.1 percent, the Group further widened the gap to its competitors.
Czech insurers' results in 3Q2013 are in line with the previous reporting periods. As compared with the previous year, figures are showing an almost unchanged GWP volume denominated in local currency (CZK) while denominated in euro, the market turnover recorded an almost 4% y-o-y decrease, to EUR 4.55 billion. It is interesting to observe though that, unlike other major CEE markets, the Czech market's decrease was mainly caused by the negative trend recorded on the life insurance side.