More than PLN 84m of net profit in H1 2011 and further growth of gross premiums written in comparison with the first half of last year. By improving its net profit by 20 per cent the Europa Group of Insurance Companies closed the first six months of 2011 with very good results. At the end of 2010 Europa was the third largest insurance group on the Polish market in terms of gross premiums written*.
In the first half of 2011 Towarzystwo Ubezpieczeń Europa S.A. and Towarzystwo Ubezpieczeń na Życie Europa S.A. wrote a total of close to PLN 360m in gross premiums (in accordance with IAS), on PLN 338m in the corresponding period of last year. They also improved their consolidated net profit from PLN 70m to more than PLN 84m.
“We have been consistently diversifying our product portfolio and expanding our distribution channels. The above efforts bring a steady improvement of financial results. We have also been consistently implementing our strategy of reducing the sales of high-volume insurance (e.g. saving insurance policies) and increasing the share of products with lower premiums but higher profitability. The above strategy has for many years enabled us to be the leader of the Polish bancassurance market,” said Jacek Podoba, President of the Board of TU Europa S.A. and TU na Życie Europa S.A.
During the first two quarters of 2011 our non-life insurance company wrote in excess of PLN 248m (in accordance with IAS) in gross premiums, more than PLN 8.7m than the first half of 2010. The company’s net profit exceeded PLN 43m, up by 26 per cent on the corresponding period last year. Our life insurance company increased its gross premiums written to PLN 111m (in accordance with IAS), up by 13 per cent in the corresponding period of 2010 (PLN 98m in accordance with IAS). In the first half of 2011 it one more time improved its net profit to more than PLN 41m, from PLN 36m in the corresponding period of 2010.
“We stand out through our speed in the implementation of new products and through our operational effectiveness. It usually takes only a couple of weeks from the idea to the launch of a new product on the market. Therefore, we are able to quickly respond to the requirements of banks and we also often set new trends for the bancassurance segment in Poland,” said Jacek Podoba.
In the past eighteen months, the life insurance company implemented close to 90 investment strategies and the non-life insurance company entered the health insurance market. TU Europa S.A. has also been strongly developing in the segment of travel insurance by offering a comprehensive range of travel insurance products. After less than 3 years from its entering the travel insurance market, TU Europa S.A. has become No. 2 in Poland in terms of value of insurance guarantees issued to tour operators.
The innovation of TU Europa S.A. is also confirmed in the extension of the company’s offering for the SME sector. The company has been successfully selling products such as borrower bankruptcy insurance, high LTV insurance for investment loans or insurance of the payment of guarantees granted to entrepreneurs by a bank.
The Europa Group distributes its products via a broad network of partners. In particular, in the bancassurance channel it already works with 33 banks, thanks to which Europa’s insurance products are available in around 10,000 bank branches while its travel insurance products are sold in more than 850 travel agencies.
*Gross premiums written calculated in accordance with Polish Accounting Standards, on the basis of data provided by the Polish Financial Supervision Authority