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Warta: high profitability through innovation

Warta reports gains in the context of challenging market conditions thanks to its state-of-the-art system of pricing – the most modern one in Poland, coupled with high-quality process of handling claims and excellent cooperation with agents. In 2016, the non-life insurance division posted a growth in gross written premiums of more than 15 percent, reaching PLN 4.12 billion. In total, the two companies of Warta posted gross written premiums of PLN 4.86 billion last year. The amount of claims paid exceeded PLN 3.28 billion.

Non-life insurance

Total gross premiums written amounted to PLN 4.12 billion in 2016, this constituting an increase of 15 percent as compared to the corresponding figures of 2015. The upward trend persisted in all key segments of insurance, including motor insurance (44 percent), insurance for small and medium-sized enterprises (16 percent) or housing insurance (12 percent). The premium collected in the whole segment of individual insurance was by 17 percent higher than that posted in 2015, attaining PLN 2.89 billion.

– The year 2016 was a very unstable period, in particular for the motor insurance market, principally due to significant changes in the prices of third-party liability insurance policies. On the other hand, thanks to the innovations implemented over the recent year, we have boasted performance which should make us proud as the Warta’s team members – declared Jarosław Parkot, CEO of TUiR “WARTA” S.A. and TUnŻ “WARTA” S.A.

Changing the prices of third-party liability insurance policies proved to be a key challenge for insurers in 2016. On this occasion, the individual calculation of premiums gained importance, for which Warta had already been prepared thanks to its consistent policy of investments and implementation of the innovative on-line pricing system. Thanks to this solution, Warta provides its customers with insurance policies at a price optimally suited to their profile. An agent who develops a quotation is provided with the proposed premium in about a second, based on dozens of variables. Price calculation takes place in the cloud – on-line – in line with the leading edge technological trends.

Innovations implemented by Warta are primarily designed to support the profitability of the company and be useful for the customer. Out pricing system, a state-of-the-art solution in the Polish market at the current juncture, meets the first goal. It allows us to identify low-claim drivers and offer them the best prices in the market. The effects of this solution are in plain sight now in the form of an expanding group of customers, at the same time we maintain a very good level of profitability and the rate of loss ratio. Warta Mobile application, which makes the process of claims handling more effective and more friendly for injured parties has been a convenient innovation for customers. Both solutions have proven to be highly successful. Approx. 36 thousand of Warta customers reporting incidents have acceded Warta Mobile. We will be further expand this lead, we are going to introduce additional solutions for improving the quality of customer service and boosting Warta performance already later this year – emphasised Jarosław Parkot.

In aggregate terms – in respect of both property insurance and life insurance – Warta handled over 485 thousand claims in 2016 and paid customers over PLN 3.28 billion in the form of compensation and benefits.

The quality of customer service has traditionally been at a high level. Warta earned appreciation in this regard both among its customers and in the community of experts. As the only insurance company in Poland it was awarded the emblem “Konsumencki Lider Jakości – Lider 5-lecia 2011–2016” for a Consumer Quality Leader between 2011 and 2016. The “Gwiazda Jakości Klienta 2016” [Customer Quality Star 2016] statuette awarded in token of the professional sales of product and a friendly handling of claims, is prize of equal prestige and recognition. At the same time in 2016, Warta consolidated it leadership in terms of the quality of cooperation with agents, brokers and financial intermediaries, as evidenced by numerous public opinion surveys and awards. The financial result derives from the strategy that puts insurance agents at the centre of attention. Already in the second year of its implementation, Warta has ranked first in the NPS survey, measuring the brokers’ satisfaction with the cooperation with leading insurance undertakings. Warta has also been awarded as the best company in terms of quality of cooperation with financial advisors.

Life insurance

In response to the new provisions of law and customer needs, Warta granted high priority to the introduction of changes in the life insurance segment. In 2016, Warta life insurance company posted over PLN 743 million of gross written premium thanks to a substantial reduction in the sales by the company of the policies with a one-off premium. On the other hand, the buoyant growth of premiums occurred in other product segments of pivotal importance for the company: by 19 percent in group insurance, and by about 9 percent in the policies with regular premium.

In recent years, the life insurance market has undergone significant transformation, this deriving from such factors as the introduction of new provisions of law. Whereas we noticed the growing interest of customers in individual protective products with regular premium and group products, we decided to modify Warta approach to selling life insurance. Sure, investment insurance keeps its high rank in the market, nonetheless, we are strongly supporting the development of the market for traditional policies. To this end, we also mobilise a broad group of property insurance agents. Their professionalism, knowledge and broad customer portfolio constitute the factors which help us reach our for new persons, many of whom still do not hold life insurance. The year 2016 proved to us that this approach is effective, and respectively the continuation of this policy in the current year is quite legitimate – emphasised Warta CEO, and added – also new protective products complement our portfolio and support our actions. We have developed a comprehensive life insurance, as well as the insurance against cancer. Already the first months of sales have demonstrated that demand for traditional insurance coverage is high in Poland, and I believe that in the next few months and years, this trend will be strengthening further.

Financial performance

Along with the high sales Warta posts also very sound financial performance, which shows that the process of acquiring new customers is developing on healthy and rational principles. The technical account of the non-life insurance company showed the technical result of nearly PLN 124.0 million in 2016. The net income as compared to the overall market also remains at a high level, last year it attained PLN 259.0 million. The technical account of the life insurance company showed the technical result of PLN 39.3 million, whereas the net profit stood at PLN 19.6 million.

Warta has traditionally dedicated considerable attention to the financial security of its customers, as evidenced by indicators that stand significantly above the statutory requirements. Warta Current rating assigned by Standard & Poor’s remains at a high level of A+ with a stable outlook. Warta is the only insurer registered in Poland which enjoys such a high rating of S&P.

All figures based on local GAAP.



Dawid Korszeń
Rzecznik Prasowy
Chmielna 85/87
00-850 Warszawa