Assets managed by CU group increased 40% and exceeded 54.5 billion zlotys; the total amount of insurance premiums and other contributions paid into the funds has increased 23% to 4.6 billion zlotys.
- Assets managed by CU group increased 40% and exceeded 54.5 billion zlotys; the total amount of insurance premiums and other contributions paid into the funds has increased 23% to 4.6 billion zlotys
- CU Życie: 18,194 payouts - the highest amount paid out on death of one person - over 2.8 million zlotys; 241% of bancassurance dynamic
- CU OFE: the best May transfer session and awarded the title Studencka marka roku (Students' Brand Of The year)
- CU TUO: paid out 2,352 claims for individual customers and 418 for companies; increased sales of individual insurance by 21%.
- Announcement of plans to introduce motor insurance sold by phone or internet at the end of 2007
- CU TFI: assets and premiums paid in more than double those of a year ago.
Commercial Union Polska - Towarzystwo Ubezpieczeń na Życie SA
In the first half of 2007 CU Życie paid out 18,194 payments. The highest amount paid out (from two life insurance policies) after the death of one person exceeded 2.8 million zlotys. As far as additional risks are concerned, the highest payment from the "inability to work" option was almost 200,000 zlotys. The highest amount, within a group insurance scheme, due to disability resulting from an accident was 417,000 zlotys. "Although the high payments clearly show the benefits of insurance, the certainty and speed of receiving payment after the occurrence of a tragic event is most significant. This is our role as an insurer," underlines Adam Uszpolewicz, the president of CU Polska group and CU Życie.
The maturity of the insurance market in Poland is also proven by the fact that CU Życie has started making payments on reaching the 10 year maturity period for which Absolwent youth polices were taken out. Within the last six months 91 such payments were made for a total amount of 1.7 million zlotys. According to the terms and conditions of such insurance, the value of the policy can be paid out as a one-off payment or in five instalments, which may be a good solution if the money is, for example, for financing a child's schooling.
The strategy of CU Życie involves retaining its place in the regular premium life insurance market. "We are completing work on new, attractive insurance in this category which we will present in October," says company President Uszpolewicz.
The company is working towards increasing its share in the regular premium investment insurance market and in bancassurance sales. Since mid-July CU Życie has offered modified lump sum insurance with Bonus VIP for clients paying in at least 10,000 zlotys. This and other insurance policies allow the use of insurance capital funds which for much of the last 10 years have had market leading return rates in many categories.
The strategic bancassurance partner of CU is Bank Zachodni WBK - the joint offer includes insurance packages for bank cash loans and mortgages, structured products and insurance for BZ WBK Lease car loans. CU also sells investment insurance in co-operation with Deutsche Bank and security insurance for BGŻ mortgages.
CU Życie, which has been offering the third tier guaranteed capital pension for many years, is going to use its actuarial and organisational experience to create a pension company disbursing payments from the assets accumulated in the second tier. "This is a natural area for expanding the operation of Commercial Union. However we will undertake the decision after acceptance of the final shape of the provisions of the law and analysis of capital costs of creating the pension company," underlines President Uszpolewicz.
Gross allocated contributions of CU Życie have increased in the first half of the year by 28% compared to the same period last year and exceeded 1.5 billion zlotys. The most dynamic change in sales, over 241%, was achieved in bancassurance. Premiums obtained by other channels have increased by 11.2% where the sales of single premium investment insurance in the second quarter of 2007 have been the highest so far. The number of early surrendered life insurance policies dropped by 13.8% compared to the first half of 2006. "We have a 20% share of the life insurance market measured by level of assets in management," concludes the president Uszpolewicz.
| Item | 1st half of 2007 [mln Zlotys] | 1st half of 2006 [mln Zlotys] | Change [%] |
| Gross contributions | 1,562 | 1,217 | 28 |
| Asset value | 14,499 | 10,958 | 32 |
| Claims and payments | 627 | 484 | 30 |
| Canvassing costs | 110 | 91 | 21 |
| Administration costs | 73 | 62 | 18 |
| Technical results | 189 | 173 | 9 |
| Gross financial results | 331 | 274 | 21 |
| Net financial results | 306 | 244 | 25 |
| Company capital | 930 | 872 | 7 |
| Gross technical and insurance reserves | 13,295 | 9,916 | 34 |
| Investments | 14,335 | 10,862 | 32 |
Commercial Union Litwa - Towarzystwo Ubezpieczeń na Życie SA
This was another six months of dynamic growth (56%) in gross contributions for CU Litwa, with even better profitability. The company is in third position in the life insurance market as well as the pension fund market, with similar share of both segments (approximately 11%) behind two bank competitors- Hansa and SEB.
| Item | 1st half of 2007 [mln Litów*] | 1st half of 2006 [mln Litów] | Change [%] |
| Gross contributions | 31.8 | 20.5 | 55 |
| Claims and payments | 3.7 | 1.0 | 270 |
| Canvassing costs | 5.5 | 4.4 | 25 |
| Operational costs | 6.0 | 5.1 | 18 |
| Net financial results | 3.4 | 0.8 | 325 |
* 1 Litów = 1.0906 Zlotys (average rate of NBP on 29.06.2007)
Commercial Union Powszechne Towarzystwo Emerytalne BPH CU WBK SA
Commercial Union PTE, managing the largest pension fund in Poland, has completed another good six month period. The pension fund improved its investment results and achieved success in obtaining new clients - in the primary as well as on the secondary market (in the May transfer, the largest number of clients changing funds chose CU). It has also received the title of Student Product of 2007. "We have the highest average value of assets accumulated in active clients' accounts in the market and the lowest percentage of accounts without premiums," underlines Piotr Szczepiórkowski, the president of CU PTE.
Due to the fund exceeding the level of 35 billion zlotys of net assets, the management fee has been reduced to 0.023 % monthly which is beneficial for customers. "The second factor determining our price competitiveness is an average charge on paid in contributions equal to 4.29%. This number shows what a great loyalty bonus our customers who joined the fund before the 1 of April 2004 receive, since they currently pay only 4%," adds the President Szczepiórkowski.
CU PTE - as the company managing the fund - noted a 14% increase in income, which along with a small increase in costs, allowed it to achieve a net profit in the amount of
88.8 million zlotys.
| Item | 1st half of 2007 [mln Zlotys] | 1st half of 2006 [mln Zlotys] | Change [%] |
| Income from sales including: | 181.4 | 159.7 | 14 |
| a) charges on paid in contributions | 90.7 | 88.2 | 3 |
| b) remuneration for management of OFE | 76.1 | 63.9 | 19 |
| Costs of OFE management * | 77.6 | 72.0 | 8 |
| Result from operational activity | 103.9 | 85.1 | 22 |
| Investment results | 5.9 | 5.9 | 0 |
| Net results | 88.8 | 73.7 | 20 |
Data in KNF format.
* Item includes costs of ZUS commission, payments to KNF and Insurers' Spokesman and payments into additional and basic part of Guarantee Fund.
Commercial Union Polska - Towarzystwo Ubezpieczeń Ogólnych SA
The CU group plans to introduce, at the end of 2007, motor insurance sold by phone and internet. "We are creating a modern sales and service system for such insurance thanks to which we shall offer a product competitive on price and quality. We want to become a leader in the direct motor insurance market and to significantly increase our market share of the property insurance market. Insurance agents will forward us the contact details of customers interested in motor polices, which will complete our current offer," underlines Adam Uszpolewicz, president of the CU group.
Simultaneously with this project, CU TUO is growing thanks to its position achieved over the years, in selected insurance market segments, for companies and growing sales of house policies for individual customers.
Most payments paid out to individual customers (in total 2,352) related to house insurance. For example one of the biggest payments in the first half of this year was almost 880,000 zlotys - after a house fire. An example payment from CU TUO Partner w podróży travel insurance is 30,000 zlotys for medical transport of an insured person after an accident in Norway. In the first half of the year, the company also paid out 418 claims to institutional customers.
"Gross premiums in the first half of 2007 have decreased slightly but net premiums showing allocation to company capital has increased by 17.5% to 42.4 million zlotys. Higher administrative costs are caused by the preparations to introduce motor insurance - a product line for which we have great development hopes," explains Urszula Gąsior, vice president of CU TUO acting as President. In the first half of the year there has been an increase in premiums from insurance for individual customers (21%) and from bancassurance. There is still a decrease of insurance premiums in business insurance on the market.
| Item | 1st half of 2007 [mln Zlotys] | 1st half of 2006 [mln Zlotys] | Change [%] |
| Gross premiums | 50.1 | 50.4 | -0.6 |
| Net premiums | 42.4 | 36.1 | 17.5 |
| Disbursement costs | 10.2 | 10.0 | 2.0 |
| Canvassing costs | 12.0 | 10.6 | 13.2 |
| Admin costs | 9.8 | 6.2 | 58.1 |
| Technical results | 1.1 | 4.0 | -72.5 |
| Net income from investments | 1.7 | 1.3 | 30.8 |
| Gross financial results | 2.9 | 5.8 | -50.0 |
| Investment value | 137.0 | 115.4 | 18.7 |
| Company capital | 64.3 | 54.7 | 17.6 |
| Technical and insurance reserves on company's own shares | 96.5 | 70.4 | 37.1 |
Commercial Union Polska - Towarzystwo Funduszy Inwestycyjnych SA
In the past months CU TFI has used the exceptional boom superbly in the investment fund market. "We doubled the value of fund assets compared to June 2006 as well as the value of payments into the funds compared to the first half of 2006," underlines Tymoteusz Paleczny, vice president of CU TFI. The offer of an umbrella fund which is a foundation of CU TFI sales was completed by the sixth sub fund - CU Zrównoważony (CU Balanced fund). Income from company sales has increased by 88% and net profit by 63%.
| Item | 1st half of 2007 [mln Zlotys] | 1st half of 2006 [mln Zlotys] | Change [%] |
| Income from sales | 39.2 | 20.9 | 88 |
| Operational costs | 29.8 | 15.2 | 96 |
| Gross financial results | 10.2 | 6.4 | 59 |
| Net financial results | 8.3 | 5.1 | 63 |
| Net value of assets of CU TFI investment funds | 2,816.9 | 1 341.1 | 110 |
-ends-
Information:
Bohdan Bialoruck
Telephone: (22) 557 43 41
E-mail: bohdan_bialorucki@cu.com.pl
Additional information www.cu.pl
Notes to editors:
The Commercial Union Polska group is part of the international Aviva group - the fifth largest insurance institution in the world and the largest by income in Great Britain. The Aviva Group operates in 25 countries. It has a strong position in Great Britain, Ireland, France, Holland, Spain, Italy, Poland, USA, Canada and Australia. It services around 35 million customers worldwide, achieves an annual income of 41.5 billion pounds and manages assets of value greater than 364 billion pounds. Additional information is available at /