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Warta reinforces its position in non-life insurances

Warta’s non-life insurance company booked PLN 1.9 billion gross written premium (based on local GAAP) during the first half of 2013. Growth dynamics of 103.7% mean that the company is reinforcing its position as the second-largest company in non-life insurance market in Poland. The combined gross written premium of both life and non-life Warta companies amounted to PLN 2.8 billion.

Key Data:

•          103.7% – sales dynamics of TUiR Warta (non-life company)

•          104.8% – sales dynamics of TUnŻ Warta (life company) regular premium insurances

•          108.2% – sales dynamics of TUnŻ Warta group policies

Major events:

•          Launch of the New Sales Management Model implementation

•          Confirmation of a high A-rating with a stable outlook for TUiR Warta

•          Fair Play Award presented to TUnŻ Warta by brokers

 

This is another quarter where our companies have achieved very good results despite a difficult market environment. Of particular note is the 103.7% sales dynamics of the non-life company, at a time when in our views the non-life market has weakened. It means we have been able to reinforce our position as the second-largest company in the market,” said Jarosław Parkot, CEO of TUiR and TUnŻ Warta.

Warta’s non-life insurance company booked PLN 1.9 billion gross written premium during the first half of 2013. The stronger position of the company is principally due to growth in corporate insurances sales. Higher company income goes together with good financial results – a net profit of PLN 144 million and a technical result of PLN 22 million (all figures are based on local GAAP).

The life insurance company, in line with its strategy, has continued to increase the share of regular premium insurance in its portfolio. At the end of the first half of 2013 these products had generated PLN 109 million (dynamics of 104.8%). Sales of group insurance policies have also increased with dynamics of 108.2% at the end of the first half of 2013. Our high-quality products and service in this field have recently been confirmed by the presentation to TUnŻ Warta of a Fair Play Award from insurance brokers. This is the third such award in the last four years. In total, TUnŻ Warta booked over PLN 0.9 billion gross written premium (GWP) and generated PLN 11.8 million in profit during the first half of 2013.

We have successfully changed the structure of our life company portfolio. So-called insurance deposits are being replaced by investment-oriented products. In the first half of 2013 we introduced as many as eight structured products and four insurance products with capital funding. What is important we are still gaining new partners in this regard,” said Jarosław Parkot.

The company’s activities are appreciated by external experts. In July the rating agency Standard&Poor’s affirmed Warta’s “A” insurer financial strength and counterparty credit ratings, with a stable outlook. The S&P experts noted the company’s strong position as the second-largest insurer in the Polish market. They also took into account factors such as a strong distribution network, a diverse business profile and a broad customer base. It is worth noting that the agency’s ratings have been based on new criteria since July.

Further growth in sales will be aided by Navigator – the New Sales Management Model, which we have just begun implementing. It is a huge project, planned to take place over the next two years. This comprehensive model will optimize management of the exclusive agent and multi-agency network in all its aspects – segmentation of agents, planning, monitoring, reporting, etc. It forms part of a whole line of actions aimed at ensuring our high quality products and customer service,” said Jarosław Parkot.

For example, before the holidays the company introduced a new improved version of its travel insurance product, Warta Travel Plus. The customers gained new options, with policies offering higher sums insured and wider insurance coverage. Mateusz Kusznierewicz, a multiple world champion and Olympic champion in sailing, became ambassador for travel insurance.

The company also received for the second time a silver emblem Consumer’s Quality Leader 2013, for its motor insurance. Surveyed consumers praised such aspects as “competitive prices and a brand tested on the market for years.”

Warta is also actively developing bancassurance in non-life insurances. It has implemented extended guarantee insurance for instalment credit at Santander Bank, and unemployment insurance for customers buying an investment product at Idea Bank. As a part of our activity involving combining insurance with other services, we have introduced a new mobile phone insurance product for pre-paid phone customers at Orange. The monthly “Home&Market” has observed these activities, awarding Warta a “Silver Umbrella” for “dynamic development of bancassurance and wide availability through multiple financial institutions and affinity programmes, as well as creating products that are easy to manage and implement for business partners.”

Our successes inspire optimism for the rest of the year. There are initial signs of the Polish and Euro zone economies regaining momentum. Hopefully we will be able to see a similar tendency in the insurance market. I also hope that our peers will stop simple price competition in the non-life segment, as in the long run this is detrimental both to the companies and to their customers,” stated Jarosław Parkot.

 

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