Generali Grows Steadily Despite Negative Market Trends
The Generali Group companies maintained a stable growth rate in Q1-3 2009 despite negative market trends. The gross premiums written by the Group grew by 16% year on year to PLN 1,252.5 million at the end of September 2009. The insurance sector in Poland shrank by no less than 14.5% at the end of H1 2009. Both Generali T.U. (premiums written up by 26%) and Generali Życie T.U. (up by 10%) grew much above the market average.
"All this year, all insurers have been facing problems caused by the global crisis and the strong economic slow-down in Poland. As a result, the local insurance sector shrank by as much as 14.5% at the end of H1. I am proud that Generali Group companies have worked against these negative trends and maintained a stable growth rate despite the difficult conditions. The positive results come both from our growth in the non-life insurance segment (Generali grew by 26% while the segment grew by 5%), in life insurance (Generali grew by 10% while the segment shrank by 25%) as well as pension insurance where we have topped the most prestigious rankings for the best pension funds this year. OFE Generali ranked 1st on the daily newspapers Rzeczpospolita (April and October 2009), Gazeta Wyborcza (June 2009) and the financial service Analizy On-line (July 2009)," said Andrzej Jarczyk, CEO of the Generali Group in Poland.
Generali T.U. Grows Five Times Faster Than Competitors
In Q1-3 2009, the non-life insurance company Generali T.U. S.A. continued its dynamic organic growth. Its gross premiums written grew to PLN 565.4 million at the end of September 2009, up by 25.6% year on year. This was excellent performance considering that according to the most recent statistics (at H1 2009) the sector grew by only 5%, over five times less than Generali. This year the most dynamically growing business line of the company is corporate insurance (premiums written up by 54% year on year) as a result of Generali's growing activity and closer relations with big business partners. The mass non-life insurance business line is also growing very fast (up by 41%, mainly home insurance, up by 33%). The reduced demand of new cars by Poles did not affect much Generali's results in the non-life segment. Motor insurance line grew by 13% at Generali TU and this result are still much better than the market trend, as the motor insurance segment shrank by 0.6% in Poland at the end of H1 2009. The net profit of Generali T.U. was PLN 8.6 million at the end of Q3 2009, lower than the result as of 3Q 2008, due to some storms and floods hitting our portfolio.
Generali Życie: Stable Growth in a Contracting Sector
The economic slow-down in Poland and the strong volatility on the stock markets have impacted in particular the performance of the life insurance sector. The sector shrank by as much as 25% in Poland at the end of June 2009. Despite the dramatic market trend, Generali Życie T.U. grew its premiums written by 10% to PLN 687.1 million at the end of September 2009, especially thanks to its strategy of building a long-term portfolio of products with regular premiums. While the segment of life insurance products with regular premiums in Poland contracted by over 5% at the end of June 2009, Generali countered the negative market trend and generated an impressive growth by 23% at the end of September 2009 (PLN 265.1 million v. PLN 215.3 million a year earlier). The net profit of Generali Życie T.U. grew to PLN 16.0 million at the end of Q3 2009 compared with PLN 12.5 million a year earlier. The company owes this growth among others to its higher operating effectiveness.
Generali OFE: Up to First Position in KNF Three-Year Ranking
Generali OFE managed PLN 7.3 billion of assets at the end of Q3 2009, up by 30% year on year.
Generali OFE's investment performance confirms that it remains one of the most effective funds in Poland. Generali OFE moved up to first position in the latest ranking of three-year return rates published by the Polish Financial Supervision Authority (KNF). Thanks to its excellent investment performance in the past years, as of July 2009 OFE Generali is the only pension fund to have participated in all rounds of lottery of new pension fund clients by the Social Security Institution (ZUS). Generali PTE generated a net profit of PLN 18.8 million at the end of September 2009, up by 9% year on year.
Final reckoning
The consolidated net profit of the Generali Group was PLN 28.0 million at the end of September 2009. This result has been affected by weather anomalies which have impacted on claims paid.
Generali grew five times as fast as its competitors in the non-life insurance segment; the life insurance business grew by 10% while the sector shrank by one-fourth.
"It makes us proud that we are growing this year despite difficult market conditions. Generali Group's day-to-day business proves that close relations, advisory and partnership with clients enable the company to strengthen its market position even in a crisis anything but simple, counteracting negative implications of the difficult macroeconomic environment. This is our best present on the tenth anniversary of our business in Poland," concluded CEO Andrzej Jarczyk.