Investing in development - new distribution channels (direct, bancassurance partnerships with BZ WBK).
The Aviva group's strong financial position in Poland
- Maintaining its level of premiums in a key line of business - life insurance policies with a regular contribution - during the economic slowdown
- Cost discipline
- Increased profitability.
Implementing the Aviva group's strategy
- Strengthening its position on the property insurance market
- Investing in development - new distribution channels (direct, bancassurance partnerships with BZ WBK)
- The success of the Aviva brand in Poland
- Improving the level of customer satisfaction.
Maciej Jankowski, president of the Aviva group in Poland: "2009 was a time of uncertainty as regards the scale of the economic slowdown in Poland and the slump in the financial markets. It was hard to foresee how our insurance and investment customers would act in this situation.
"We were able to maintain our level of premiums in our most important line of business - life insurance with a regular contribution, which must be seen as a success in these conditions. We increased our share in the property insurance market in spite of significant competition. We also maintained our cost discipline and improved our profitability.
"Thinking about the future, we continued to invest in the direct platform and our bancassurance partnerships with BZ WBK. We achieved excellent results in terms of familiarity with the Aviva brand. We also increased the level of customer satisfaction, which was influenced by faster payments, streamlining the service and the professional attitude of our insurance advisers."
In 2009 Aviva Towarzystwo Ubezpieczeń na Życie (Aviva Life Insurance Company) paid out over 165 million zlotys to its customers. Payments for individual and group insurance policies came to over 47,000 - for both types of policy this money was a significant help for people in difficult situations. The biggest payout for an individual life insurance policy in 2009 was 600,000 zlotys, while the biggest payout for a group policy was around 470,000 zlotys. The average time for examining claims was reduced by 30%.
"Our insurance policies represent a promise to our customers and we keep this promise. We were able to reduce the time for examining claims as a result of the integration of the group's customer service departments, which were integrated before the introduction of the Aviva brand," said Maciej Jankowski.
The fact that the gross premium is lower that the previous year is primarily the result of withdrawing our investment policies from 1 August 2008 onwards. The reason this decision was taken was the low profitability of these products for the insurer and the credit risk. As with the entire sector, Aviva has also recorded lower sales of investment insurance products with a one-off premium payment.
The bases of the Aviva TUnŻ portfolio are individual and group insurance policies with a regular contribution and a long-term investment option.
"In this key area we have taken a similar amount of premiums to in 2008. Thanks to cost control and higher income from our investment activity, we have achieved higher profit levels than the previous year," said Maciej Jankowski.
In 2010 the Company is concentrating on the sale of its basic products - our life insurance product New Perspective with the options of health and accident insurance for the whole family, and group insurance policies with a wide range of additional agreements and regular saving programmes.
"We are relying on the development of our third pillar products as people are becoming more aware of the need to save for an additional pension," says Maciej Jankowski.
Aviva Towarzystwa Ubezpieczeń na Życie SA results:
| Item | 2008 (in thousand zlotys) | 2009 (in thousand zlotys) |
| Gross premiums written | 3 993 935 | 1 666 055 |
| Income from investments | 821 968 | 831 045 |
| Costs of insurance activity | 340 413 | 339 493 |
| Technical result | 429 566 | 467 527 |
| Gross financial result | 466 053 | 548 426 |
| Net financial result | 397 350 | 461 917 |
| Investments | 12 397 876 | 12 587 980 |
We can see the full picture of the Aviva group's position on the life insurance market from a total analysis of the results of Aviva TUnŻ and BZ WBK-Aviva TUnŻ – partnerships set up jointly with Bank Zachodni WBK - which took 169.9 million zlotys in gross premiums in 2009.
In 2009 Aviva Towarzystwo Ubezpieczeń Ogólnych SA (Aviva General Insurance Company) paid out over 85 million zlotys in compensation and payments to its customers.
The company took higher premiums than in 2008, increasing its share in the property insurance market. The sale of insurance for individual customers (excluding bancassurance) rose by 25%, while home insurance increased by 40%. The sale of insurance for business customers rose by 25% when compared with the previous year's figures.
"We strengthened our position as a reliable insurer for business entities, which is very pleasing given the amount of competition in this sector and the economic slowdown," said the President Maciej Jankowski.
Motor insurance premiums in 2009 stood at 86.5 million zlotys compared with 51 million zlotys for the previous year.
"Our customers purchase comprehensive insurance and other additional insurance products, not just the compulsory third party insurance, far more often than other customers on the market. Around 35% of our customers choose this insurance package, while the average in the sector is 20-25%," said Maciej Jankowski.
The negative technical and financial result is due to investment in the development of the direct platform and motor insurance.
"This is a long-term investment which will prove profitable after a few years. Over the last few months, the sale of motor insurance policies through the direct system has exceeded the plan's figures. We recently also introduced the sale of holiday insurance over the internet," explains Maciej Jankowski.
Aviva Towarzystwa Ubezpieczeń Ogólnych SA results:
| Item | 2008 (in thousand zlotys) | 2009 (in thousand zlotys) |
| Gross premiums written | 193 161 | 201 491 |
| Income from investments | 7 582 | 10 281 |
| Costs of insurance activity | 96 937 | 94 532 |
| Technical result | - 42 688 | - 53 614 |
| Gross financial result | - 35 250 | - 42 080 |
| Net financial result | - 35 357 | - 37 345 |
| Investments | 168 690 | 203 424 |
We can see the full picture of the Aviva group's position in terms of property insurance from the total analysis of the gross premiums of Aviva TUO and BZ WBK-Aviva TUO (99 million zlotys).
In 2009 the group successfully introduced the Aviva brand in Poland.
"Recognition of the Aviva brand exceeded our expectations. Spontaneous recall in January 2010, or after seven months of rebranding work, stood at 32% of our target audience. While prompted recall of the brand was 62%*," says Dominika Kraśko-Białek, vice-president of the Aviva group in Poland.
As a result of this success, the group now uses the Aviva brand for everything, only adding the information "formerly Commercial Union" in marketing information.
"We should also point out how effective this has been. The investment which we have put in is significantly lower than the normal media budgets of some or our competitors," says Dominika Kraśko-Białek.
Aviva has been conducting customer satisfaction surveys using the NPS (Net Promoter Score) method since 2006. The results of these surveys show that more and more customers are willing to recommend the services of the Aviva group.
"We are definitely ahead of our competitors when it comes to satisfaction with our services. This is the effect of significant changes which we have made to the group," says Dominika Kraśko-Białek.
-ends-
* source of information: Brand Tracker ICM Research, January 2010
Information:
Bohdan Białorucki, press officer
Telephone: (22) 557 43 41 / 501 781 140
E-mail: bohdan.bialorucki@aviva.pl
Grzegorz Mathea
Telephone: (22) 557 43 70
E-mail: grzegorz.mathea@aviva.pl
Notes to editors:
Aviva is the fifth largest insurance group in the world and the market leader in the United Kingdom. It operates in 28 countries in Europe, North America and Asia. It serves 50 million clients, generating annual revenues of £50 billion and manages assets valued at £380 billion.
Aviva has been operating in Poland since 1992 (up to May 2009 as Commercial Union). It is a pioneer of modern life insurance products and a world leader in terms of retirement funds. It also offers investment products, property insurance for companies and individual customers, group life insurance and employee’s pension plans. The company serves 3.5 million customers and has assets under management of PLN 60 billion. Additional information: www.aviva.pl, www.avivainvestors.pl, www.aviva.com.