Situation on the market

The non-life insurance market in Poland measured by the gross written premium grew by an annual average of 6.0% over the past 4 years.

In 2013, the market grew by a total of PLN 348.6 m compared with the previous year, mainly as a result of the increased sales of insurance covering damage caused by the forces of nature and other damage and loss property (by PLN 531.7 m, +9.8% compared with the previous year) in particular as a result of the renewal of long-term agreements with corporate customers.

Gross written premium of non-life insurance companies in Poland (in PLN million)

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Furthermore, the positive impact on the growth of the entire non-life insurance market had significantly higher sales of insurance covering various financial risks (PLN 294.0 m, +39.8% year-on-year). The increase of premiums for the whole of the market was possible despite the decline in sales of TPL motor insurance (by PLN 494.5 m, -5.4% year-on-year) and motor own damage insurance (by PLN ‑340.9 m, -6.0% y/y). These changes resulted mainly from the decline in prices on the Polish insurance market in 2013 and the depreciation of insured vehicles.

Non-life insurance companies - share in gross written premium in 2013 (in %)



The whole of the non-life insurance market in 2013 generated a net profit of PLN 6.1 bn (+84.3% compared with the previous year). Excluding the dividend from PZU Życie paid out in 2013 and 2012 (which constitutes the profit generated by the life insurance sector), the net profit of the non-life insurance market increased by PLN 0.14 bn (+6.6%). The technical result of the non-life insurance market, which largely omits income on investments and deposits, increased by PLN 665.5 m, i.e. by 100.1% year-on-year, to a level of PLN 1.3 bn. This change was affected to the greatest extent by the increase in the technical result on insurance covering damage caused by the forces of nature and other damage and loss property (by PLN 413.8 m compared with the previous year), the increase in contract guarantees (PLN 209.1 m, exclusively for direct business, year-on-year) and in TPL motor insurance (by PLN 203.7 m year-on-year). The higher result than in the previous year was caused by the increase of provisions set in 2012 for contract guarantees issued for the construction sector as a result of the bankruptcy of selected companies.

Non-life insurance market – gross written premium in million PLN

Gross written premium20132012
PZUMarketMarket excluding PZUPZUMarketMarket excluding PZU
Motor own damage insurance 2,028 5,340 3,312 2,142 5,681 3,539
TPL motor insurance 2,827 8,605 5,778 2,961 9,099 6,138
Other products 3,418 12,654 9,236 3,351 11,470 8,119
TOTAL 8,273 26,599 18,325 8,454 26,250 17,797

Source: PFSA (www.knf.gov.pl). Biuletyn Kwartalny [Quarterly Bulletin]. Rynek ubezpieczeń [Insurance market] 4/2013, Rynek ubezpieczeń 4/2012, PZU’s data

In addition to the improved sales described above, an additional factor causing the good results of 2013 was a decrease in claims paid in respect of motor TPL insurance by PLN 244.4 m, or 5.0%, and of damage caused by hail and frost by PLN 223.4, or 12.4% compared to the previous year.

The total value of investments and deposits of the non-life insurance companies (excluding investments in subsidiaries) was PLN 46.3 bn at the end of 2013, which was a 9.2% increase since the end of 2012.  48.9% of these investments at the end of 2013 were securities issued or guaranteed by the State Treasury and local government units. Increasing yields on treasury bonds in 2013 had a negative impact on the valuation of these instruments in insurers’ portfolios. Simultaneously, the share of other fixed-income instruments (including corporate bonds) declined from 7.4% to 5.8% (from PLN 3.1 bn to PLN 2.7 bn).

Non-life insurance companies, on aggregate, estimated the value of technical provisions at PLN 37.3 bn, which represented an increase of 8.6% compared with the end of 2012.

Non-life insurance market – technical results (in million PLN)

Technical results20132012
PZUMarketMarket excluding PZUPZUMarketMarket excluding PZU
Motor own damage insurance 274 484 210 408 734 326
TPL motor insurance 95 (316) (411) (3) (519) (516)
Other products 693 1,162 469 235 450 215
TOTAL 1,062 1,330 268 640 665 25

Source: PFSA (www.knf.gov.pl). Biuletyn Kwartalny [Quarterly Bulletin]. Rynek ubezpieczeń [Insurance market] 4/2013, PZU’s data

Non-life insurance market - gross written premium (in million PLN)