KUKE among the three most dynamic insurers
In the first half of the year, KUKE topped the ranking of the fastest growing insurance companies in the non-life insurance sector in terms of the growth rate of gross written premium. With an yoy increase of 29.3% (up to PLN 57.3 million), we were third in the ranking prepared on the basis of data from the Polish Financial Supervision Authority. In the non-life insurance sector, the entire market recorded a decline in gross premium by 0.9%.
"The results of the first six months are a continuation of the growth trend for our revenues that has been going on for over three years. As a result of active acquisitions, we have been gaining new clients and contracts, while existing clients had been insuring larger volumes of transactions. During the summer months we managed to keep the pace from the first half of the year, so it looks like we will collect over PLN 100 million in premiums from clients during the year, for the first time in our history. Please remember that we are talking only about our commercial operations in domestic and export insurance and bonds, not accounting for the result of the division regulated by the Act on Export Insurance Backed by the State Treasury. As regards the latter, especially insurance bonds, the growth rate of the written premium is even higher than in the commercial sector. New products, such as the GAP EX introduced during the pandemic for exporters selling to the European Union market and selected highly developed countries, help us increase our revenues" - says Tomasz Ślagórski, vice-president of KUKE.
According to the figures from the Polish Financial Supervision Authority, gross written premium on credit insurance increased yoy by 24% in the first half of the year in the domestic market, to PLN 299 million, and in the bonds area decreased by 1.7% to PLN 225.2 million. As regards the value of gross claims and benefits, it increased yoy by 3.9% for credit insurance, while it decreased by 12.6% for bonds.
"Despite the coronavirus pandemic and its negative impact on the economy, figures from the Polish insurance market do not suggest an increase in the loss ratio for financial insurance in the first half of the year. This demonstrates the relatively good condition of business partners of the insured companies, which is also supported by the monthly statistics published by KUKE on insolvency in the enterprise sector in Poland. It is true that the sum of insolvencies in the last 12 months is the highest in four years, but taking into account the scale of the economic recession in the second quarter, bankruptcies have been increasing at a moderate rate. On the other hand, the number of restructurings has been increasing, which results from the new regulations that have been in force since June, which allow companies to evade bankruptcy by undergoing a recovery process. Nevertheless, in the coming months we should expect greater numbers of bankruptcy and restructuring processes. Similar processes have been taking place in other European markets, where generous government support programs have delayed and alleviated the wave of bankruptcies", adds Tomasz Ślagórski.