In the first three quarters of 2013, the Europa Insurance Group increased its sales by as much as 3 times compared with the same period last year, and collected according to IFRS over 1.5 billion in gross written premium (nearly PLN 2 billion according to PAS). Europa companies generated in total over PLN 85 million in profit. The Group is doing very well on the market despite uncertainties related to the bancassurance sector, created as a result of the period of waiting for regulations announced by KNF (the Polish Financial Supervision Authority). Europa's results are a consequence of outstanding insurance sales for SME and protection products bundled to cash and installment credits, as well as the development of sales in the telephone channel, among other things.
Europa Non-life doubled its gross written premium compared with the first nine months of 2012, with nearly PLN 524 million in policies sold (according to IAS and PAS). The company closed the three quarters with the result of over PLN 33 million. Europa Life increased its volume of premiums by as much as 4 times, generating the sales of PLN 1 billion (according to IAS and nearly PLN 1.4 billion according to PAS). The life insurance company delivered PLN 52 million in profit.
Both Europa companies focused on the development of the offer for SME, which is currently the leading business line in the portfolio of Europa Non-life. Sales of lost profits insurance for microenterprises which was launched this year rose a staggering 25 times over the three quarters. Very good results were also generated by legal expenses insurance, also for companies of the SME sector: Europa Non-life doubled its sales as compared with the previous year.
"We continue to achieve significant growth both in non-life and life companies, which results from the implementation of specialized offers for our partners, including small and medium enterprises. Despite uncertainties related to the change in regulatory environment, we maintain the speed and flexibility of action, implementing further innovations, finely adjusted to the real needs of our partners and their customers. This is the potential we want to capitalize on to continue creating our competitive edge", says Jacek Podoba, President of the Europa Insurance Group.
Close cooperation between Europa Non-life and the largest banks allowed an effective sale of protection insurance products bundled with cash and installment credits. Growth in this segment amounted to 200 percent. On the other hand, the recovery on the mortgage market due to a drop in interest rates and the prospect of the 'S' recommendation coming into force next year produced 30 percent higher volumes of written premiums in the category of low down payment insurance for mortgages.
Sales in Europa Life were driven by protection insurance for installment credits (increase by 150 percent) and car credits (doubling of the volume).
As an active participant in the bancassurance market, Europa Life decided, as early as in September, to adopt the recommendation of Good Information Practices, whose key element consists in voluntary introduction of the Product Card from the Insurance Capital Fund prepared by entities belonging to the Polish Insurance Association. This is another step Europa took to strengthen its pro-customer actions.
The bancassurance market, in which the Europa Group specializes, is currently undergoing numerous changes. KNF declares that it will announce a recommendation involving a possible scenario of banks concluding agency agreements with insurers.
"We are fully prepared for such solution. We started trainings for employees of cooperating banks. We have been improving the competences of our partners who offer our insurance products by, among other things, providing them with technically advanced e-learning platform which assists traditional methods of sales support used in branches", summarizes President Jacek Podoba.
At the same time, Europa has been establishing its position outside bancassurance, by diversifying its distribution network thanks to the activation of channels that go beyond financial services. In the third quarter of this year, the company started to cooperate with Orange by launching the sale of travel insurance for subscribers of this network. The next step was to offer the customers of Orange insurance against loss of permanent source of income and temporary inability to work.
The Europa Insurance Group is a subsidiary of Talanx International AG which concentrates the activities of the Retail International Division within the Talanx Group. With premium income of EUR 26.7 billion (2012) and more than 22,000 employees, Talanx is Germany's third-largest and Europe's eighth-largest insurance group. Minority shareholders of the Europa Group are Meiji Yasuda, one of the largest companies on the global insurance market, and Getin Holding. The Europa Insurance Group is composed of Towarzystwo Ubezpieczeń Europa S.A., Towarzystwo Ubezpieczeń na Życie Europa S.A., Ukrainian companies Europa.ua and Open Life Towarzystwo Ubezpieczeń Życie S.A. The Europa Group specializes in bancassurance: insurance sold in conjunction with a bank offer. It cooperates closely with the financial sector in Poland, including leading banks and a large group of financial intermediaries.