Europa Insurance Group launched operation in Ukraine

The Europa Insurance Group was given a license to operate in Ukraine in scope of non-life and life insurance through its subsidiaries EUROPA.UA. They will start operation by offering bancassurance products and travel insurance available to retail customers. Europa is the second Polish insurance company entering the Ukrainian market.

The State Commission for Regulation of Financial Services Markets of Ukraine issued a decision on granting EUROPA.UA insurance licenses for a total of 13 types of insurance products. It allows to commence operations which use an effective business model, tested in Poland and based on cooperation with the financial sector. Entering the Ukrainian market is an element of the long-term strategy of the Group, which assumes an expansion to East European markets.
In the opinion of the Management Boards of companies forming the Europa Group, the Ukrainian insurance sector has a potential and perspective of growth. The presence of Getin Holding entities in this market facilitates the commencement of insurance operations over the eastern border of Poland.

- We will offer the Ukrainian customers the highest level of service and standards we developed in the Polish market. We want to repeat the success of our business model in Poland. In Ukraine, we will offer, in cooperation with banks, property and protection insurance products added to credits, and as the local market grows, we will be also adding investment solutions to our offer. We also expect to establish relations with travel agencies which will be able to offer our travel insurance to their customers - said Krzysztof Mędrala, Vice-President of Europa Insurance Group.

The newly established companies will operate in Ukraine in scope of non-life and life insurance. The key area of growth will be the bancassurance sector. EUROPA.UA wants to be an active player establishing this sector in Ukraine where as much as 176 banks are operating.

- We are conducting some advanced negotiations with a few banks and are planning to launch the sale process in the months to come. When entering the market with an innovative offer of insurance products, which we flexibly adapted to the needs of Ukrainian customers, we well be working on its regular extension – explained Vladyslav Lebedynets, President of EUROPA.UA companies.

The group is transferring its know-how to Ukrainian companies, as it supported their management efforts with experienced managers, tested at work in the Polish headquarters. The Ukrainian staff is also an important link, as they are well aware of the specificity of the local market.

- EUROPA.UA companies were built from scratch, as after extensive analyses we found that it would be the most effective and the safest solution – adds Mr. Mędrala.

At present, 250 insurance companies are active on the Ukrainian market, a fifth of which is operating in the life insurance market, while the prevailing part is active on the non-life insurance market. According to figures for Q3 2011, the value of the gross premium on the non-life insurance market amounted to UAH 15.5 bn. (approx. PLN 6.7 bn). The value of the gross premium on the life insurance market amounted to UAH 0.9 bn. (approx. PLN 0.4 bn).

EUROPA.UA is headquartered in Lvov. It is planned to open regional sale offices and claim/benefit handling offices; the first of which will be opened in Kiev. Like in Poland, the companies will not build a network of branches.

These are not the first experiences of Europa in the Eastern European markets. The Group has been selling border insurance and green cards there for many years. Presently, Europa Insurance Group is selling travel insurance for customers visiting Russia, Ukraine and Belarus.
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