TU Europa S.A. - the insurance company with the longest history on the WSE has resumed the capital raising process through a new share issue. Subscriptions for retail investors will start already on 15 September this year.
1,575,000 of the new series shares will hit the market together with 1,570,400 shares offered for sale by GETIN Noble Bank SA, and the maximum issue price will be PLN 160 per share.
"The funds raised from the new issue will enable us to further increase sales and to develop new product lines," said Jacek Podoba, CEO of TU Europa S.A. and TU na Życie Europa S.A."Additionally, by extending the shareholding, we will for the first time offer an opportunity to participate in our growth to such a large number of investors, including retail investors."
Subscriptions from retail investors will be accepted from 15 to 21 September 2010 in the brokerage houses of CDM Pekao SA, Dom Maklerski Banku Pekao SA, NOBLE Securities SA, Dom Maklerski PKO BP SA, Dom Inwestycyjny BRE Banku SA and Millennium Dom Maklerski SA.
Simultaneously with the public offering of 1,575,000 series H ordinary bearer shares of the new issue, public sale is conducted by GETIN NOBLE Bank SA of 1,570,400 ordinary bearer shares admitted and introduced to trading on the Warsaw Stock Exchange (the "WSE").
The Europa Group is the leading insurance company of the bancassurance sector in Poland. Europa has been recording dynamic growth for many years now. In 2009 it was TU na Życie Europa S.A. which was ranked the second life insurance company on the Polish market (gross premiums written in accordance with Polish Accounting Standards, in accordance with KNF data for 2009).
"In terms of reaching customers, our main strength are our relations with the largest number of financial institutions in Poland. We have been a long-time partner of the largest Polish banks, financial intermediaries and tour operators. Today, we work with more than 300 entities. Each new partner and the new common business experience help us make speed to market and the ability to effectively respond to market needs our key advantages," says Podoba.
As a result of its consistently followed strategy, the EUROPA Group closed 2009 with a record net profit exceeding PLN 120m (consolidated net profit in accordance with IFRS) while its effectiveness in 2009 measured as return on equity (ROE) reached 38.6%, much above the ROE for the entire insurance sector (18.45% in accordance with [PAS]/[IFRS])*
"Our effectiveness is a result of not only fast growth of sales but also of our unique competence in integrating life and general insurance offer," added Jacek Podoba. "Europa's success is also owed to our simple organisational structure with which it is much easier to remain flexible, maintain high quality of service and efficiency in the implementation of innovations."
Among the Group's business partners are more than 120 financial institutions (including Poland's leading banks). In reply to their needs, only in 2009 the Group launched around 100 new products.
"We have been gaining new partners, reinforcing business relations with the existing ones and developing new distribution channels. We are adjusting our products to the dynamically changing situation on the market. In terms of time to market we are often ahead of competition and we are trendsetters," said Jacek Podoba.
The effectiveness of the above strategy was also reflected in the results of the first half of 2010 when the Europa Group recorded further significant growth. Net profit reached PLN 70.3m (in accordance with IFRS), up by as much as 25% on the corresponding period of last year (PLN 56.2m in accordance with IFRS). New sales in the first half of 2010 exceeded PLN 2.96bn in gross premiums written (in accordance with PAS)**, nearly approaching the PLN 3bn of premiums written in the entire last year.
Subscriptions under the Institutional Investors tranche will be accepted in the period from 22 to 24 September 2010.
The public offering is targeted at Polish institutional and retail investors. In connection with the offering, TU Europa and GETIN Noble Bank SA will conduct limited promotional activities concerning the offering outside Poland, targeted exclusively at foreign institutional investors headquartered outside Poland, in accordance with the laws of the jurisdiction in which such activities with respect to the offering will be conducted.
*KNF data for 2009; results of the sector in accordance with PAS, results of the Group in accordance with IFRS. ROE for the entire sector and the EUROPA Group calculated using the formula: return on equity = ratio of annualized net profit for a given accounting period to equity at the beginning of the accounting period.
**The Group offers products which do not transfer a significant insurance risk (certain products with a guaranteed rate of return and unit-linked products); therefore, such products do not meet the investment contract definition under IFRS 4 and have been classified as investment contracts measured in accordance with IAS 39 requirements. Polish Accounting Standards do not contain such restrictions and therefore data on gross premiums written under PAS fully reflect the sales generated by the Group.