Polish insurers ended the first half of 2020 with a 6.7% y-o-y decline of the GWP volume, to EUR 7.05 billion. In absolute terms, this means an about EUR 512 million drop in the market premiums turnover, almost equally divided between the life and non-life segments. Yet, given the about 5% depreciation of the Polish currency against Euro, the market results denominated in local currency look much better, showing just a 2% depreciation of the GWP volume.
Life insurance GWP remained close to the 1H2019 level, decreasing in total by 4.5% in local currency (9% in Euro). The largest part in the life insurance business decrease was played by the UL products, for which GWP went down by 18.6% y-o-y. However, it is worth mentioning that benefits paid for this insurance policies almost decreased by about 16%, showing that customers still see these products as a long-term investment.
Among the classes with a relevant share in the non-life market portfolio, property insurance lines were the only ones that saw a positive dynamic, driven by the fire insurance class. Motor insurance classes saw a negative dynamic, but on the paid claims side, as stressed out by PIU, despite the pandemic and restrictions in vehicle traffic, payments were at a level similar to last year’s. On the other hand, following the spring frosts, compensation for agricultural losses also increased.
Polish insurers generated EUR 813.7 billion of net profit in the first half of 2020, 7% less y-o-y in local currency. They paid over EUR 171.3 million of income tax to the state budget. Deposits in domestic bonds and other safe instruments exceed EUR 17.34 billion.
