Poland
Polish insurance market
The five largest insurance groups in the country generated around 73% of the total premium volume in the first three quarters of 2021. The three largest insurance groups contributed around 59%.
Market growth in the 1st to 3rd quarters of 2021 compared to the previous year
Source: Financial Market Authority Poland
The Polish insurance market recorded a year-on-year increase of 9.5% in local currency terms in the 1st to 3rd quarters of 2021. The growth was driven by increases in both non-life premiums (+10.4%) and life premiums (+7.6%).
Premium volume in the motor lines of business, which dominate the non-life business with a share of around 53%, rose in the first nine months of 2021. Motor third party liability recorded an increase of 2.4%, and motor own damage insurance recorded strong growth of 10.6%. Performance was also predominantly positive in the non-motor lines of business, which recorded an impressive 16.7% increase in premium volume in the 1st to 3rd quarters of 2021. Health insurance products in the non-life business rose sharply by 33.5% compared to the same period in the previous year.
The positive performance achieved by life insurance in the 1st to 3rd quarters of 2021 was mainly due to a large increase in single premium business (+24.9%). Premiums from regular premium life insurance also increased 4.1%.
According to calculations based on data from the International Monetary Fund (IMF) and Polish financial market authority, the average per capita expenditure for insurance in Poland was EUR 376 in 2020. Out of this, EUR 253 was spent on non-life insurance and EUR 123 on life insurance.
Market shares of the major insurance groups
Source: Financial Market Authority Poland; as of 9M 2021
VIG companies in Poland
VIG Insurance Group is represented by Compensa Life and Non-Life, InterRisk, Vienna Life and Wiener TU in the Polish market. InterRisk also invested in the mutual insurance association TUW “TUW” in 2019. In November 2020, VIG Insurance Group signed a share purchase agreement with the Dutch company Aegon N.V. to acquire its companies in Hungary, Poland, Romania and Turkey. The acquisition will allow VIG Insurance Group to strengthen its market position and significantly expand its potential in the pension fund business in Poland. The transaction is subject to the approvals required under supervisory law. Approval under competition law has already been provided.
VIG Insurance Group held fourth place in the overall market with a market share of 8.6% in the first nine months of 2021. 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 fifth.
Financial performance indicators in the Poland reportable segment
Premiums by line of business
Values for 2020 in parenthesis
Premium development
The Poland segment recorded total premiums written of EUR 1,279.8 million in 2021, representing an increase of 7.0% compared to the previous year (2020: EUR 1,196.2 million). This increase was mainly due to growth in the other property and casualty and single premium life insurance lines of business. Net earned premiums were EUR 983.0 million in 2021, 6.1% higher than in the previous year (2020: EUR 926.6 million).
Result before taxes
The result before taxes was EUR 69.9 million in 2021 (2020: EUR 22.6 million). The strong increase was due to the fact that the result for the previous period was decreased by provisions for expenses arising from a change in the surrender terms for the repurchase of certain life insurance products and a significant improvement in the combined ratio for 2021.
The business operating result in the Poland segment was EUR 70.5 million in 2021 (2020: EUR 38.2 million).
Combined ratio
Due to a better claims development the combined ratio improved to 93.2% in 2021 (2020: 96.7%).