The WARTA Group collected over PLN 2,5 billion of gross written premium: PLN 1,3 billion by the Non-life company and PLN 1,2 billion by the Life company. More than 12% growth in non life insurances means, that the Company continues the upward trend observed since the second quarter 2010.
Basic data:
- dynamic increase of sales In the strategic business lines:
- +18,6% in motor insurances
- +14,5% in marine & aviation insurances
- +9,0% in life products with regular premium
Major events:
- TUiR WARTA S.A. together with TUnŻ WARTA S.A. join the Talanx Group
- Rating for WARTA upgraded from BBB+ to A
- Development of the partnership network in scope of bancassurance cooperation
TUiR WARTA
In the first half of 2012 WARTA reached 12,3% growth of gross written premium, collecting PLN 1,3 billion against PLN 1,1 billion in the same period of previous year. The most significant influence on such an increase had motor insurances (18,6%) as well as marine & aviation insurances (14,5%).
In the first half of 2012 WARTA generated the technical result in amount of PLN 108,4 million against PLN 45,0 million in the same period of 2011. This significant improvement of profitability comes primarily from the above mentioned high sales growth, as well as a consistent risk selection policy, what resulted in the improvement of the portfolio quality. The strong technical result is accompanied by the good investment results, what gave a net profit of PLN 243,0 million.
Financial safety parameters of WARTA are traditionally at a considerably higher level than the statutory requirements. At the end of June the solvency margin coverage ratio amounted to 326,0%, and the coverage of technical provisions ratio amounted to 128,4%.
TUnŻ WARTA
In the first half of 2012 TUnŻ WARTA collected PLN 1,2 billion of gross written premium, which is a comparable amount to the premium collected in the same period of previous year. Investment products had significant influence on this result.. The company implemented in the mentioned period seven new investment products - „Golden Profit”, „Dolar Klik”, „Top 10”, „Surowce na Plus”, „Polska Elita”, „Euro Stars”, „Profit Plan Plus” and continued sales of „Profit Plan”. GWP of above mentioned products amounted to PLN 529,8 million and was higher by 24,9% than in 2011.
The Company consistently increases the written premium of insurances with regular premium, reaching in the first half of 2012 growth rate of 9,0% – the regular premium in the group insurances increased by 7,7% and in individual insurances by 15,0%.
At the end of first half of 2012 TUnŻ WARTA achieved PLN 13,5 million of net profit. This result comes from the the very good structure of the products’ portfolio and confirms stable effectiveness of the Company.
After six months of 2012, the technical result amounted to PLN 18,2 million.
Life company, similar to Non-life, maintains high level of financial safety parameters. At the end of June 2012 the solvency margin coverage ratio amounted to 295,1%, and the coverage of technical provisions ratio amounted to 116,4%.
Comment of Jarosław Parkot – CEO of TUiR and TUnŻ WARTA
Since the 1st July we are part of the Talanx Group. Our new shareholders finalized transaction which had begun in January 2012, and currently 70% of the company’s shares belong to German Talanx International, and 30% to Japanese Meiji Yasuda.
We might be also proud with a rating on the level “A” with a stable outlook, given by the Standard & Poor’s Agency, which evaluates our Company as “strategically important” for Talanx Group and takes into account support given by the Group.
I am pleased with the above information, but I am much more satisfied with very good results, which were reached by the both Companies in the first half-year. It shows, that our strategy was successful – we work as usual, to realize the established plans, regardless of the parallel ongoing processes associated with changes in ownership.
Reasons for satisfaction gives above all the over 12% growth of premium in the Non Life Company, because it is the sixth consecutive quarter in which the Company is reaching a double-digit growth. The upward trend has been continued since the second quarter of 2010.
Simultaneous improvement of the technical result proves the effectiveness of the typical insurance activity of the Company. What is more, profitable investments giving increased revenues, allowed us to improve the financial result to a level not recorded in the recent history of the Company. At the same time we keep in check the costs of insurance activity.
It is worth to emphasize that this increase is very balanced and covers, both the retail and corporate customer segment. Traditionally strong position in the insurances of companies, has been emphasized by awarding WARTA with a title of “The Company friendly to Small & Medium Enterprises 2012”, given by the Association of the Employers and Entrepreneurs.
The process of portfolio transformation from savings into investment products, which is led by the Life Company, is going very well. We have a increasing list of bank partners, together with whom we offer our customers new opportunities for investment. We also develop cooperation with other entities that include insurances to their portfolio: financial brokers or sales networks. Good results have been brought by the projects assuming higher activity of the agents in reaching customers of the Non Life Company with the offer of the life insurances. As a result of these activities, the investment products increase their importance, as well those with single premium, as those with regular premium. The latter ones bring currently 8,5% of the Life Company’s premiums.
Also the external experts appreciate our Life Company - as well its service quality, as the financial position. In April TUnŻ Warta won the plebiscite “Silver Umbrella” in the category “Life Insurances”. This award is granted by the editors of Home & Market to insurance companies with the best financial results and assessments of customers.
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