The Europa Insurance Group earned the highest annual net profit ever in 2011 amounting to 173 million zloty with a y/y 15% increase. With written premiums exceeding 3 billion zloty (according to PSR), Europa solidified its leadership of the Polish bancassurance market.
"Last year, about 2 million clients took advantage of our offer," said Jacek Podoba, CEO of Europa. "Our strategic choice for many years now has been cooperation with the financial sector to jointly offer banking and insurance products. As the in-depth research we conducted last year shows, 93% of clients are satisfied with insurance purchased in this manner. Given the number of our policies sold, that's the best recommendation we could get," adds Mr. Podoba.
Despite the difficult times for the financial industry, Europa Group achieved dynamic growth for the eighth year in a row. Europa companies increased their consolidated net profit by 15%, from 150 million zloty to 173 million zloty in 2011. Its non-life insurance business attained a 21% higher net profit (91.6 million zloty) in collecting nearly 472 million in gross premiums paid (PSR data). Europa's life insurance division also significantly improved its results, with profit growth of 8% to nearly 82 million zloty over 75 million zloty in 2010 r., and gross sales topping 2.5 billion zloty (PSR data).
"Our life insurance business achieved record written premiums from sales of insurance capital funds (UFK), exceeding 100% growth in that segment. Increased sales of investment policies and over 20% growth in sales of protection products also buffeted the upside results," summarized Mr. Podoba.
In Europa’s non-life business, nearly 10% of written premiums consist of products dedicated to small and medium enterprises. Europa joined this line of business less than two years ago, by developing offer for SMEs. Today, while achieving excellent results, it is focusing on continued development of that offer while introducing original products, e.g. Guarantee Payment Insurance and Investment Credit Component Insurance.
Europa's mortgage insurance portfolio, a key business line for many years, has continued robust growth. In 2011, it constituted one third of its non-life business written premiums.
TU Europa SA has increased sales of travel insurance written premiums by a vigorous 70%. It has further expanded relationships with the sector, nearly doubling its number of industry partners. Last year, Europa granted 75% more guarantees for travel agents y/y – in excess of 90 million zloty, sustaining its position as one of the largest guarantors in the Polish tourism industry. It also launched new products: Sport&Fun for those who love to travel and enjoy sports as well as Cancellation Insurance with 100% refund of the travel, hotel and airline ticket costs.
In addition to achieving excellent results, new strategic shareholders joined the Europa Group. The German company Talanx and its Japanese partner Meiji Yasuda, signed an agreement to purchase a majority share in the Europa Group in December of 2011. Once the transaction is complete, these renowned insurance industry players will reinforce the Europa group with capital and international experience. Moreover, Europa concluded long-term agreements with Getin Noble Bank, Idea Bank and other Getin Holding companies. These assure Europa’s prospects for continued dynamic growth by leveraging the potential of its new majority shareholders as well as solidifying business relationships with its financial sector partners.
The Europa Group has also recently assumed majority ownership in the rapidly growing company Open Life Towarzystwo Ubezpieczeń Życie S.A. Europa Insurance Group currently consists of TU Europa SA, TU na Życie Europa S.A., Open Life Towarzystwo Ubezpieczeń Życie S.A. as well as newly established companies in Ukraine.