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Warta: Dual branding strategy leads to growth

Warta non-life achieved over PLN 950 million in premiums during the first quarter of 2014. This translates into dynamics exceeding 102%. The company’s growth in this highly competitive market results from a good sales level, for both individual and corporate insurance policies. The strong position of the brand is highlighted by its excellent Standard & Poor's A+ rating with a stable outlook.

 Premium – key data:

  • PLN 950 million – gross written premium for TUiR Warta S.A. (non-life).
  • PLN 221 million – gross written premium for TUnŻ Warta S.A. (life).

Profitability – key data:

  • PLN 41 million – technical result for TUiR Warta S.A.
  • PLN 69 million – financial result for TUiR Warta S.A.
  • PLN 13 million – technical result for TUnŻ Warta S.A.
  • PLN 10 million – financial result for TUnŻ Warta S.A.

(All figures are based on local GAAP)

 "The positive results achieved by the non-life company in Q1 2014 result from the changes in products and sales implemented over recent months. At the beginning of the year, we launched a brand new motor insurance package. Its structure takes account of the diverse needs of the customers of HDI and Warta. Accordingly, insurance policies for private insurance customers as well as those for small and medium enterprises have been modified. Consequently, we have a very wide range of products for everyone living in Poland. At the same time, all our agents have both HDI and Warta insurance policies in their portfolio. The wide and properly positioned range of products we offer enabled us to obtain excellent sales results in spite of the tough price competition. This is clearly reflected by the dynamics of the motor own damage insurances (MOD), which amounted to nearly 106%. Since some agents who used to sell mainly motor third-party liability insurances were appropriately trained and equipped with the new product range they have started showing outstanding results in MOD insurance sales. For instance, in the HDI network, the average dynamics of new MOD insurance sales reached almost 200% in March.The sales of other non-obligatory motor insurance options are also increasing. These results provide positive prospects for the rest of the year," said Jarosław Parkot, CEO of TUiR Warta S.A. and TUnŻ Warta S.A.

This success enabled Warta non-life to achieve dynamics of increases in profitability of individual insurance premiums of nearly 102%. For corporate insurance, the dynamics reached nearly 103%. These are excellent indicators which demonstrate sustainable growth in the key business lines. Due to careful risk selection, the company can offer attractive products to clients while obtaining very positive financial results. The technical result at nearly PLN 41 million is over twice as good as in the same period of the previous year. The high profitability of purely insurance activities enabled the company to record over PLN 69 million in net profit.

Warta life posted almost PLN 221 million in premiums. Insurance schemes of a strategic significance for the company, those with a regular premium, grow steadily (dynamics of 102%) along with group insurance (dynamics of 107%). The company has reported very good financial results. The technical result amounted to PLN 13 million, while the net financial result exceeded PLN 10 million.

 "We offer a completely new range of products for life insurance. Warta is constantly working on the development of the distribution network, for example by encouraging non-life agents to sell life insurance policies as well. We have recently facilitated their efforts by incorporating all kinds of insurances into a single consolidated sales system. As far as bancassurance is concerned, I expect the banks to follow the  Recommendation U given by the Polish Financial Supervisory Authority and diversify the size and number of collaborating entities. This would provide us with an opportunity to strengthen the relationships with existing partners and obtain new ones," commented Jarosław Parkot.

Both companies traditionally guarantee stability for their customers. The financial safety parameters are higher than the statutory requirements. In Q1 2014, the solvency margin coverage ratio of TUiR WARTA amounted to 317%, and the coverage of the technical provisions ratio amounted to 123%. For the life company, these ratios were 244% and 113%, accordingly. The rating agency Standard & Poor's awarded Warta a very high rating of “A+” with a stable outlook. This is an excellent acknowledgement of the stability and strength of our insurance company.

 "I am really proud that Standard & Poor's made a rare decision to issue a company rating higher than the rating of the country the company is based in. Moreover, Warta is the only insurance company registered in Poland with this rating. To all our partners and contractors, this rating is a confirmation that Warta, now evaluated as a "core" subsidiary of Talanx Group, is a stable and financially strong company with an exceptionally strong market position. I am pleased that Talanx is now listed on the Warsaw Stock Exchange. This is a sign of how seriously our shareholder takes its presence in Poland. Currently, Poland is the second core market of the Talanx Group after Germany, its domestic market," said Jarosław Parkot.



Dawid Korszeń
Chmielna 85/87
00-805 Warszawa