Doubling of the Group’s sales to PLN 3.9bn

Doubling of the Group's sales to PLN 3.9bn, more than PLN 108m worth of net profit and share capital increase by more than PLN 230m sum up Europa's achievements after three quarters of 2010 !

 "The first nine months of this year were very successful; apart from record sales and all-time high profits, we have successfully completed the share capital increase through a new share issue," said Jacek Podoba, President of the Board of TU Europa S.A. and TU na Życie Europa S.A. "Today, more than one third of EUROPA's shareholders are new investors and the company's share price on the WSE has grown by close to 50 per cent in comparison with the period before the transaction."

Thanks to the new share issue, the Group's equity, which at the end of the third quarter exceeded half a billion zloty, will be increased by another PLN 231m of the issue's net proceeds. Since the date of the offering of the new shares, the shares of TU Europa S.A. have traded at around PLN 180, up from the selling price which was set at PLN 152. The new shares will be assimilated on 9 November 2010 and on that date the process of increasing the Group's capital will be completed.

By the end of September, the sales of both Europa companies nearly doubled (97%) in comparison with a corresponding period of 2009 (PLN 3.9bn in 2010 on PLN 2bn in 2009 in accordance with PAS). The Group's net profit for the first nine months of 2010 reached PLN 108.9m (in accordance with IAS). The above means an increase by 21% on the corresponding period last year when the Group's profit was PLN 90m. 

In the first 9 months of 2010 TU na Życie Europa S.A. wrote in excess of PLN 3.5bn in gross premiums (in accordance with PAS), in comparison with PLN 1.8bn in the corresponding period of 2009. Europa life insurance company closed Q3 with a net profit of PLN 56.5m (in accordance with IAS), up by 82% on the figure for the first three quarters of 2009 (PLN 31m). The above dynamic growth is mainly attributable to the very strong position of TU na Życie Europa S.A. in the segment of investment-type insurance products.

TU Europa S.A. closed three quarters of 2010 with records sales of nearly PLN 375.8m (in accordance with PAS), up by close to 60% on the first three quarters of last year (PLN 237.3m). The non-life Europa company generated a profit of PLN 52.7m (in accordance with IAS) in comparison with PLN 59m in the corresponding period of 2009.

The slight drop in the result of the non-life company is a consequence of lower sales by banks of consumer finance products with which the products of TU Europa S.A. are sold.

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