Poland
Commercial Union Polska remains a market leading provider in Poland, with over three million life and pension policyholders and a brand which has recently been recognised as one of the strongest in Poland. Life and pension new business sales were £61 million (2004: £79 million). Total life sales were £28 million in the first quarter (2004: £29 million).
Pension sales were £33 million (2004: £50 million). In the first quarter of 2004 this included sales through the State Agency to employees without a chosen pension provider. Due to legislative changes, the three largest pension companies, including CU Polska, have been excluded from this business from 2005.
Mutual fund sales were lower at £17 million (2004: £31 million) reflecting continued investor caution as equity markets performed moderately in the quarter. As a result investors had a preference for the attractive returns on bank deposits following interest rate rises in the second half of 2004.
Product pricing has been selectively revised to improve the margin, while still maintaining a competitive position. The margin improved to 4.9% (full year 2004: 4.6%).
