In the first half of the year 2011, the Aviva group in Poland increased gross contribution of life insurance by 40.7% and of property insurance by 38%
In the first half of the year 2011, the Aviva group in Poland increased gross contribution of life insurance by 40.7% and of property insurance by 38%. At the same time, Aviva paid out to its customers an amount of PLN 872 million in claims and life policies benefits and PLN 88 million in property policies benefits. The Polish group’s financial net result for the period of last six months increased by 14.2%.
Aviva’s results against a background of the market
The dynamics and achievements of Aviva in Poland in terms of insurance are clearly visible when global positions of insurance companies forming the group (ie Aviva Life Insurance Company, BZ WBK-Aviva Life Insurance Company as well as Aviva General Insurance Company and BW WBK-Aviva General Insurance Company) are compared to the market data. Aviva not only has much better dynamics of contributions collected, but also pays out to its customers higher claims and benefits. At the same time, its technical and financial results from life insurance significantly improved, however, line result worsened.
| Result change year to year | Aviva Group* | Market** |
| Credited gross contribution from life insurance | 40.7% | -1.2% |
| Credited gross contribution from property insurance | 38.0% | 11.5% |
| Claims and benefits paid out (gross) – life | 13.6% | -16.5% |
| Claims and benefits paid out (gross) – life | 35.5% | 0.4% |
| Technical result of life insurance | 15.0% | -23.0% |
| Nett financial result of life insurance | 6.0% | -22.9% |
| Nett financial result of Aviva Group | 14.2% |
|
* data for the first half of 2011
** data for the first quarter of 2011
Aviva Life Insurance Company plc
"In the first half of the year 2011, Aviva yet again significantly increased gross contribution - by 9% - even though it does not offer saving insurance policies. This is the result of good sales of protection and investment insurance, as well as customers’ expansion of protection scope and increasing sums of insurance. The basis of our offer is in life, health and family income policies, investment insurance and group policies.
"Customers, especially those who run businesses, insure themselves for higher and higher amounts, more adequate to their needs. More and more customers insure themselves for a few million PLN," says Maciej Jankowski, chairman of Aviva group in Poland. Good sales results are thanks to both efficiency of one’s own network and distribution expansion through external channels.
"Higher contribution is also a result of an increased interest in additional savings for pension in the third pillar. Decreasing the contribution for the purpose of pension funds shifted the responsibility for the future pensions towards Social Insurance (ZUS) and Poles’ individual prudence.
"For some people that was a strong impetus to start or increase their savings in the third pillar. Most of the people though still need some encouragement and help in financial planning for their future. With those people in mind, on our website we set up a pension calculator which is also used by our insurance advisors," says Maciej Jankowski.
The growth of investment value from PLN 12.7 billion to PLN 14 billion is a result of customers gathering assets in insurance capital funds (UFK). For many years, Aviva has been a leader on insurance capital funds market.
Market position strengthening of the company, together with appropriate management of risk and costs, results in the higher technical outcome and net figure.
Results of Aviva Life Insurance Company plc:
| Position | 1st half of 2010 (PLN m) | 1st half of 2011 (PLN m) | Dynamics |
| Credited gross contribution | 861.9 | 938.7 | 109 |
| Claims and benefits paid out (gross) | 762.0 | 729.1 | 96 |
| Result on investment activity | 421.5 | 476.5 | 113 |
| Costs of insurance activity | 184.6 | 205.8 | 111 |
| Technical result | 218.2 | 245.8 | 113 |
| Gross financial result | 349.5 | 368.2 | 105 |
| Nett financial result | 306.9 | 320.8 | 105 |
| Investments | 12,657.9 | 14,103.5 | 111 |
Aviva General Insurance Company plc
Aviva increases its part-taking on the property insurance market – in the first half of the year 2011 gross contribution compared to the contribution in same period last year increased by 33% reaching the amount of PLN 163 million. The company offers individual customers insurance (household, motor, travel and accident), as well as commercial insurance.
Especially dynamic is the sales within direct channel, where the contribution compared to the contribution from the first half of the year 2010 increased by 45%, reaching the amount of PLN 90.6 million. Through the telephone and Internet Aviva mainly sells motor insurance, as well as travel and household insurance. The contribution from policies increased by 72% reaching the amount of PLN 110 billion.
Having increased our part-taking on the property market, we have at the same time improved cost and damage parameters. We have noticed an increase in the number of customers who purchase our motor insurance, as well as the number of drivers who check our quotes. There is a new culture of comparing of a few motor insurance offers instead of an automatic policy extension. It is of an advantage to customers, who allow themselves to find better insurance. It is also of an advantage to companies with a flexible offer – says Maciej Jankowski.
The value of claims and benefits paid out to the customers increased by 36% reaching the amount of PLN 83.3 million, which is a result of the broader range of the business.
Results of Aviva General Insurance Company plc:
| Position | 1st half of 2010 (PLN m ) | 1st half of 2011 (PLN m) | Dynamics |
| Ascribes gross contribution | 122.4 | 163.0 | 133 |
| Credited gross contribution within the direct channel | 62.3 | 90.6 | 145 |
| Credited gross contribution from motor insurance | 64.0 | 110.0 | 172 |
| Claims and benefits paid out (gross) | 61.2 | 83.3 | 136 |
| Result of investment activity | 7.1 | 7.0 | 98 |
| Costs of insurance activity | 55.8 | 62.7 | 112 |
| Technical result | -47.0 | -33.0 | 70 |
| Gross financial result | -39.8 | -26.0 | 65 |
| Net financial result | -39.7 | -36.4 | 92 |
| Investments | 230.3 | 343.3 | 149 |
-ends-
Information:
- Bohdan Białorucki, press spokesman, Telephone (22) 557 43 41; 501 781 140, bohdan.bialorucki@aviva.pl
- Grzegorz Mathea, Telephone (22) 557 43 70, grzegorz.mathea@aviva.pl
Notes to editors
Aviva is the sixth insurance group in the world and is the market leader in the United Kingdom. The group operates in 28 countries in Europe, North America and Asia. It provides services to 53 million clients, achieves 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). The company is a pioneer in modern life insurance and is one of the two leaders among pension funds. The company also offers investment products, property insurance for companies and individual customers, group life insurance and employee retirement plans. It serves 3.5 million customers and manages assets worth of over PLN 65 billion. Additional information: www.aviva.pl, www.avivainvestors.pl, www.aviva.com.