Europa Group strengthens its leading position in the Polish bancassurance sector

As much as PLN 2.7 bn. (according to Consolidated Half Year Report) of the gross written premium was collected in the first half year of 2012 by Europa Insurance Group composed of TU Europa S.A., TU na Życie Europa S.A. and Open Life TU Życie S.A. The driving force of the growth in sales were the investment products which in TU na Życie Europa S.A. make up more than 2/3 of the gross written premium, while in Open Life made as much as PLN 1.7 bn. of the premium bill.

In the first six months of 2012, the non-life company of Europa collected almost PLN 158 m. of premium (according to Consolidated Half Year Report and Consolidated Monthly Report), while the net result amounted to PLN 33.5 m. TU na Życie Europa S.A. collected more than PLN 827 m. of the premium bill, calculated according to Consolidated Half Year Report, while according to Consolidated Monthly Report, the premium bill amounted to almost PLN 169 m.; at the same time, the company made a profit of more than PLN 29 m. The subsidiary, Open Life, made in the same period sales amounting to PLN 1.7 bn. (according to Consolidated Half Year Report). The whole Europa Insurance Group recorded a total profit for the first half year of almost PLN 64 m.

TU na Życie Europa increased sales in the structured investment insurance sector as much as four times. Due to the protection of the invested premium, this type of insurance is presently an attractive alternative to, for instance, participation units in investment funds - says Jacek Podoba, President of the Europa Insurance Group. 

The life insurance company increased its premium bill in insurance products offered with installment credits by more than 40 per cent. In 2012, the banks increased their offer of such type of credits, which contributed to higher sales in this segment. 

On the other hand, the non-life company had the highest sales growth in insurance products for the SME sector - the premium bill on these products increased by more than 90 per cent (according to Consolidated Half Year Report) as compared to the same period of the last year, This growth results from a dynamic development of TU Europa offer in this scope. It is also partially connected to a growing interest of the banks in servicing micro- and SME companies. This in turn allows to intensively develop the sales of insurance products offered together with other SME products. 

In the first half year of this year, the result of Europa companies was also impacted by the slowdown of the mortgage credits offering in banks, in particular resulting from limiting or stopping the granting of housing credits in foreign currencies, as well as the implementation of new regulations, which limit their sales. In the first half year of this year both the number and the value of credits granted decreased by approx. 20 per cent as compared to the same period last year (source: ZBP). This drop was impacted by, among others, the implementation of the recommendation T, which introduced limits when assessing the creditworthiness, as well as the amendment to the recommendation S, which recommends additional limitations when granting mortgage credits. The first half of 2012 was also a very difficult period for the tourist sector, which resulted in bankruptcies of several travel agencies. The consequences of these events were reflected in results of TU Europa for the first half year of 2012. 

Despite these difficult market conditions, the non-life company, the life company and the whole Group including Open Life made a good result - evaluates Jacek Podoba.

In June, the takeover of Europa Insurance Group by Talanx and Meiji Yasuda was finalized; these companies, as global players, will support Europa with its international experience and the strength of their capital. At present, the key shareholders of Europa are: Talanx (50 per cent + 1 share), Meiji Yasuda (33.46 per cent) and Getin Holding (16.54 per cent)
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