In the first quarter of 2013, the Warta Group booked gross written premium amounting to PLN 1.4 billion: PLN 928.6 million was generated by the non-life company and PLN 437.5 million by the life company. At the end of March 2013, both companies achieved net profit in the amount of PLN 74.5 million and PLN 6.7 million respectively.
In the first quarter of 2013, TUiR Warta booked PLN 928.6 million for gross written premium (GWP). This represents an increase on the equivalent year-earlier period (PLN 922.3 million). Warta was able to increase growth in GWP despite the apparent downward trend in the market observed during the initial months of this year. Especially good sales growth was posted in corporate insurance, exemplified by the 18.6% growth of sales in the strategic business line Property & Engineering as well as 13.3% growth of sales in the large risks segment.
Costs incurred for insurance activity came down by 9.6% compared with the first quarter of the previous year. As a result, the cost ratio improved significantly from 33.1% in the previous year to 29.7% in period under review.
In the first quarter of 2013, Warta generated a technical result amounting to PLN 19.9 million with a net profit of PLN 74.5 million.
Financial safety parameters at Warta are traditionally at a considerably higher level than the statutory requirements. At the end of March 2013, the solvency margin coverage ratio amounted to 335.5% and the coverage of the technical provisions ratio amounted to 129.0%.
In the first quarter of 2013, TUnŻ Warta booked GWP in amount of PLN 437.5 million. The company has been consistently increasing the written premium from insurance generating regular premium and growth reached 6.0% after the first three months of 2013. Regular premium in group insurance increased by 9.9% and in individual insurance by 4.1 %. Sales through banking partners in this segment were at a similar level to the previous year (down by 2.2%) due to the portfolio realignment – from savings insurance towards more profitable investment products.
In the first quarter of 2013 Warta generated a technical result of PLN 9.3 million, with a net profit of PLN 6.7 million.
Similar to non-life, the life company maintains a high level of financial safety parameters. At the end of March 2013, the solvency margin coverage ratio amounted to 242.7%, and coverage of the technical provisions ratio amounted to 117.8%.
Comment by Jarosław Parkot, CEO of TUiR and TUnŻ WARTA
This is the first quarter of our activity in non-life insurance as a single entity. After merging TUiR Warta and HDI Asekuracja TU, we are the second leading non-life insurance company in the market. The increased scale of activity and the revenues from premiums have allowed the cost ratio to be reduced to less than 30 per cent. This is also a result of the synergies generated that enable the costs of insurance business to be reduced by almost 10 per cent.
These ratios have been achieved in combination with significant investments in solutions to improve the company’s efficiency and support high-quality customer service. We have invested in a brand new Customer Service Centre based on modern information and communication technology. Consultants provide comprehensive information on the offer and ongoing service for contracts that have already been concluded. They also accept claims declarations and report on the progress of claims settlement.
Our goal is to make our claims management processes as swift as possible, smooth and customer-friendly. Since March, all claim-related information throughout the company has therefore been collected in an electronic claim file. This facilitates access to documents and improves the speed of customer service. We have signed an agreement with Guidewire, a leading global provider of flexible core systems to non-life insurers. Our aim is to work together to implement a new comprehensive system for supporting the claims handling process.
It has been no surprise that corporate insurance was the line of business with the most dynamic growth in the first quarter. The joined-up know-how of Warta and HDI Asekuracja combined with support from the Talanx Group to which we belong has provided us with a better and more comprehensive offer in this area. Our ability to take high risks has increased significantly. This relates to reinsurance capacity, which is twice the level before the merger (depending on the line of business). This gives us broader options for risk acceptance, individually and in the pool.
We are actively developing our cooperation with banks. At the moment, we already have 12 partners working with both Warta companies. Life insurance sold through the bank network is generating sales not only with single-premium products and but also with regular premiums. This is a particularly gratifying development.
We are also developing affinity programmes, i.e. insurance added to products of other companies, making the offer more attractive for customers. In the first quarter, we launched three extended guarantee programmes for large store chains. Further attractive programmes will be launched in the following months.