Record profits of the Europa Group of Insurance Companies and its 35 per cent share in the non-life bancassurance market in Poland

After three quarters of 2011 the Europa Group has already generated PLN 128m worth of net profit. They were a record 9 months in the Group’s history. Europa reported an 18 per cent growth in profit at the same time increasing gross premiums written to PLN 556m (in accordance with IAS) as against PLN 529m in the corresponding period of last year. The Group has also gained a very strong position in Poland in the sale of insurance products in cooperation with banks. The premiums written by the non-life Europa company constitute more than one third of the entire non-life bancassurance market in Poland (in accordance with Polish Accounting Standards), while TU na Życie Europa SA wrote close to one fifth of the premiums written on the Polish life bancassurance segment (in accordance with Polish Accounting Standards)*.

“Bancassurance is one of the key distribution channels for insurance products in Poland. It is also an important element of the strategy of most banks. We have been present on this market for many years. Owing to our strategy, speed and high specialisation, we are able to maintain our dynamic growth and strong market position even during periods when other financial institutions suffer,” says Jacek Podoba, President of TU Europa S.A. and TU na Życie Europa S.A. 

During the first three quarters of 2011 our non-life insurance company wrote in excess of PLN 380m (in accordance with IAS) in gross premiums, up by more than PLN 4m on the corresponding period of 2010. The company’s net profit went up by 28 per cent as against the same period of 2010 and exceeded PLN 67.5m. Europa life insurance company wrote close to PLN 176m (in accordance with IAS) in gross premiums, up by 15 per cent on the corresponding period of 2010. Net profit was close to PLN 61m, an increase by 8 per cent on the corresponding period of last year.

Selected financial data:
  Jan. - Sept. 
Jan. - Sept. 
2010 r.
Growth rate 
TU Europa SA      
Premiums written (PLNm, 
in accordance with IAS)
380,3 375,8 101
Net profit (PLNm) 67,5 52,7 128
TU na Życie Europa SA      
Premiums written (PLNm, 
in accordance with IAS)
175,9 153,2 115
Net profit (PLNm) 61,0 56,5 108
Europa Group
Premiums written (PLNm, 
in accordance with IAS)
556,2 529,1 105
Net profit (PLNm) 128,5 108,9 118

Source: Financial statements and information provided by the Europa Group for the nine month period ended 30 September 2011. 

Both Europa companies occupy a significant part of the Polish bancassurance market. According to the data gathered by PIU (Polish Chamber of Insurance) and first published in October 2011, at the end of the first six months of 2011 the Europa Group had a 18 per cent share in all the premiums written in cooperation with banks.* 

“We have already sold more than 2 million insurance policies though the bancassurance channel. We work with 12 out of 15 largest banks in Poland and we also value our relationships with medium-sized and smaller banks. Financial advisors and intermediaries are our very important partners. Owing to such broad relationships we have been able to persuade millions of customers to buy our products,” says president Jacek Podoba. 

In Poland, the sale of insurance products through banks has already exceeded the estimates made so far and constitutes more than 50 per cent of the life insurance market and close to 7 per cent of the non-life insurance market*. 

“Apart from Poles’ growing awareness and willingness to buy insurance, the growth of the bancassurance market is attributed to the economic slowdown and the threat of a new wave of the crisis. There is a growing fear about the economic consequences of the lack of security for the previously incurred obligations. The above factors stimulate the sale of insurance products alongside banking products,” said Podoba. 

Similar conclusions are offered by the Bancassurance in Poland survey conducted by Europa and published in October this year. 

“In a time of booming economy, present consumption was among the main priorities of consumers. Our research shows that the product most desired by borrowers is unemployment insurance (indicated by 48 per cent of respondents), and the number of respondents expressing their intention to buy such insurance went up significantly over the past 3 years,” added Jacek Podoba. 

*Data as at 30 June 2011, premiums written calculated in accordance with PAS, own calculations on the basis of data gathered by the Polish Chamber of Insurance.
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