Poland
Polish insurance market
The five largest insurance groups in the country generated around 72% of the total premium volume in the first three quarters of 2019. The three largest insurance groups contributed around 59%.
Market growth in the 1st to 3rd quarters of 2019 compared to the previous year
The Polish insurance market has recorded very moderate growth for two years. In the 1st to 3rd quarters of 2019 premiums increased 1.5% year-on-year in local currency terms.
In the non-life sector, premiums grew 4.0%. On the one hand, this was due to the good performance achieved in the non-motor lines of business (+8.4%), with private health insurance recording one of the highest growth rates of 11.4%. On the other hand, the increase in the non-life sector was due to an increase in premiums for motor own damage insurance (+4.9%). Motor third party liability insurance, however, recorded a drop of 1.3%.
Premium volume in life insurance fell 3.1% in the first three quarters of 2019, primarily driven by uncertainty about unit-linked life insurance. Premiums from single premium products fell 17.0% in local currency terms, which was at least less than the major drop in premium volume recorded in the previous year. Premiums from regular premium life insurance, in contrast, grew 1.5%.
According to Axco Global Statistics, an average of EUR 371 per capita was spent on insurance in Poland in 2018. Out of this, EUR 273 was spent on non-life insurance and EUR 98 on life insurance.
VIG companies in Poland
Market shares of the major insurance groups
VIG Insurance Group is represented by Compensa Life and Non-Life, InterRisk, Vienna Life and Wiener TU (formerly Gothaer TU) in the Polish market. InterRisk also invested in the mutual insurance association TUW “TUW” in 2019. In addition to creating a strategic partnership, it also represented another step towards strengthening its market position in the non-life business.
VIG Insurance Group holds fourth place in the overall market with a market share of 8.1%. In the non-life sector it is positioned as fourth in the ranking of top insurers, and in the life sector it is positioned as sixth.
Financial performance indicators in the Poland segment
Premium development
PREMIUMS by line of business
A total of EUR 1,132.0 million in Group premiums was written in the Poland segment in 2019 (2018: EUR 897.8 million), representing a double-digit year-on-year increase of 26.1% in the non-life lines of business. This major increase was primarily due to the cooperation with TUW “TUW” and first-time consolidation of the insurance company Wiener TU (formerly Gothaer TU). Net earned premiums were EUR 886.5 million in 2019, 29.3% higher than in 2018.
Result before taxes
The result before taxes rose to EUR 69.2 million in 2019 (2018: EUR 32.2 million), mainly due to very good technical results in the non-life lines of business, a higher financial result and positive effects of an asset tax refund. The previous year, however, was adversely affected by a new provision formed for expenses incurred as a result of changed surrender terms for the repurchase of certain life insurance products.
Combined Ratio
The combined ratio continued to be at a very good level of 94.8% in 2019 (2018: 92.6%).