Companies of the Warta group achieved a PLN 2.4 billion gross written premium in the first half-year of 2014. The dynamics of sales of individual non-life insurances at a level of 102% and outstanding profitability confirm that Warta is well-placed to compete in such a competitive market.
Premium – key data:
Profitability – key data:
(All figures are based on local GAAP)
Warta non-life booked a PLN 1.83 billion gross written premium in the first half of 2014. The premium in the key segment in the Polish market, namely motor insurances, exceeded PLN 1 billion. The total dynamics in individual insurances amounted to 102%.
“It is especially satisfying that growth was recorded in all of the most important lines of individual insurances. The dynamics in motor insurances and those for small and medium enterprises reached 102% and in home insurance the dynamics exceeded 103%. Growth in such a competitive market is the confirmation of the success of our strategy implemented at the beginning of this year,” said Jarosław Parkot, CEO of TUiR Warta S.A. and TUnŻ Warta S.A.
He emphasises that customers served by the company’s agents obtained an easier access to a wider offer: all agents offer insurance policies of both HDI and Warta. In the second quarter, agents were provided with a full, well-designed offer of individual motor and home insurance policies as well as those for small and medium enterprises. This translates into increased sales in all of these lines. Interestingly, this particularly concerns non-obligatory insurance packages with a very wide scope: Motor Own Damage Insurance Comfort (AC Komfort with a 111% dynamics) or Warta House Comfort (Warta Dom Komfort, with a 109% dynamics).
“It is undoubtedly a great success that the new wide range of retail insurance products was so well-accepted by customers and agents, especially as we largely reached attractive groups of customers, for whom the quality of insurance is important. We skilfully used our potential to increase sales of non-obligatory insurance policies,” said Jarosław Parkot.
The potential of the sales network of both of the Warta companies, comprised of 20 thousand people, is used for the development of Warta life. The number of non-life agents offering also life insurance policies is growing. In 2014, almost 700 agents were already offering their non-life customers life insurance. Customers also welcomed a completely new insurance offer: Warta for You and for the Family (Warta dla Ciebie i dla Rodziny ). This is an insurance programme with a unique structure, providing individual customers with the protection which is usually reserved for large groups. It is primarily targeted at freelancers or micro entrepreneurs. This strategy generates sales growth in segments which are important to Warta life. The dynamics of the premium for regular premium insurances amounted to 102%, and for group insurances to 109%. In total, Warta life achieved more than PLN 548 billion premium in the first half of the year.
Interest in the company’s offer has increased because it is one of the most comprehensive and best offers in the market. This is appreciated by customers and experts, who present Warta with awards. Warta is the only insurance company on the market to receive the title of the Consumer's Laurel – Leader of the Decade 2004-2014. The award was granted as an appreciation of the successes of Warta in the national competition over the last 10 years. Warta’s motor insurances received a third time in a row the silver award of Consumer Quality Leader in the consumer programme Zones of the Economy, a supplement to the daily Dziennik Gazeta Prawna.
The success in sales translates into the Warta companies enjoying outstanding profitability. In spite of the ongoing tough price competition, the technical result of the non-life company increased more than four times - to almost PLN 94 million. The financial result at the level of PLN 153 million was also better than that recorded in the analogical period of the previous year. The life company also improved both basic profitability parameters. The technical result amounted to PLN 28 million and the financial result exceeded PLN 22 million.
Both companies traditionally guarantee stability for their customers. The financial safety parameters are higher than the statutory requirements. After the first half of 2014, the solvency margin coverage ratio of the non-life company amounted to 286% and the coverage of the technical provisions ratio amounted to 122%. For the life company, these ratios were 255% and 112% respectively. It is worth mentioning that the rating agency Standard & Poor's awarded Warta an A+ rating with a stable outlook. Warta is the only insurance company registered in Poland with such a high rating.