Gross Written Premium (GWP) that WARTA Group collected at the end of 2010 amounted to PLN 4,5  billion. This amount consists of nearly PLN 2 billion collected by TUiR WARTA and over PLN 2,5 billion collected by TUnŻ Warta.

Both companies generated profit - TUiR WARTA in the amount of PLN 1,2 million and TUnŻ Warta PLN in the amount of 28,4 million.

TUiR WARTA closes another quarter with positive technical result of PLN 36,3 million.

TUiR WARTA

Gross written premium collected in 2010 by TUiR WARTA amounted to PLN 1,995 million and is consistent with the Company’s expectations for this year. Despite significant slowdown in sales performed by Żagiel, written premium collected by the Company was 7,3% higher in relation to analogues period of the previous year.

In 2010 WARTA noted significant sales growth in all main business lines – by 15,7% in corporate insurances (mainly property insurances), by 13% in motor insurances and by 6,9% in house products. Moreover, we can observe a satisfactory trend of written premium dynamics, which has been growing consistently from the first half of 2010. The company noted a particularly dynamic growth of premium from corporate and motor insurances in the second half, which amounted to 30% and 21% respectively. At the same time the Company’s technical result improved during this period. Such a trend indicates effectiveness of actions taken by the Company with the aim to improve profitability.

For the second quarter in a row the Company noted a significant improvement of technical result, which was positive in 3^rd and 4^th quarter and amounted to PLN 7,2 million and PLN 36,3 million respectively. As a consequence of good technical result TUiR WARTA SA achieved a high level of net financial result of PLN 46,1 million only in 4^th quarter 2010.

However, very good results achieved in 4^th quarter did not entirely compensate losses incurred in the first half of the year, which had occurred as a result of a severe winter, flood as well as several significant one-off corporate claims. Consequently net financial result for 2010 amounted to PLN 1,2 million.

Financial safety parameters of WARTA are on an appropriate level and are above the statutory requirements. At the end of December 2010 the solvency margin coverage ratio amounted to 251,7% and the coverage of technical provisions ratio amounted in 116,6 %.

Having assessed such areas as: strategy, management, operational effectiveness, investments and financial liquidity as well as risk management the Rating Agency Standard & Poor's gave WARTA a high A- rating to by the end of 2010. It confirms financial strength and a strong business position of the company.

TUnŻ WARTA

In 2010 TUnŻ WARTA S.A. achieved PLN 28,3 million of net profit. Positive financial result of the Life Company comes from the core insurance activity and is a result of a stable and profitable portfolio of products. Technical result for 2010 amounted to PLN 38,2 million.

The change of the net result in relation to the previous year is a result of increased capital investments for the development of the life tied distribution network.

Gross written premium collected in 2010 amounted to PLN 2,518 million. Decrease of the written premium in relation to the previous year is consistent with assumed goals – the Company aims at a better portfolio diversification, what assumes a lower written premium from WARTA Gwarancja while activating sales of other investment products. In the current year the Company implemented new products: Smak Zysku, Moc Energii, Nowe Technologie, Złota Korona, Bogactwo Metali and once again Profit Plan. GWP of above-mentioned products after four quarters of the current year amounted to PLN 663 million.

Simultaneously TUnŻ WARTA S.A. noted stable increase of regular written premium – in relation to analogous period of the previous year the premium from group insurances increased by 7,4% and from individual insurances by 4,5%.

Life Company, as well as Non-life, maintains high level of financial safety parameters. At the end of December 2010 ratios are on much higher level than statutory requirements – the solvency margin coverage ratio amounted to 321,3%, and the coverage of technical provisions ratio amounted to 116,3%.

Plans

WARTA set ambitious goals for 2011. We want to grow faster than the market and thus strengthen our market position – both in non-life and life insurance segments. Market expansion has to be combined with a clear improvement of the company’s profitability. We are going to achieve it by improving selection of risks and increasing effectiveness of the insurance claims handling process.

In all our actions we will be guided – as it was the case so far – by the top principle – prudent risk management.

We see the signs of market recovery, yet management actions aimed particularly at activation of distribution network and expansion of product offer will be the key to meeting our sales goals. We focused on development of multi-channel sales. We will have more exclusive agents. It’s them from whom we worked out a new commission system combining sales dynamics with portfolio quality. We are also building a new life exclusive network. We plan to open about 100 new sales outlets this year. We will still develop cooperation with multiagents and brokers. Kredyt Bank will remain our strategic partner, yet we will cooperate with other financial institutions – banks, leasing companies and financial intermediaries.

We will offer our clients new products, among others in motor and SME insurance, we will also introduce medical insurance. As far as life segment is concerned, we will focus on collecting regular premium – we plan to introduce, among others, new unit linked polices and investment products with varying levels of risk.

Investment in quality of claims handling and implementation of modern IT solutions will be our key areas – said Jarosław Parkot, TUiR and TUnŻ WARTA CEO.