KUKE reports record-high results
The high revenue dynamics of KUKE in the receivables insurance segment was driven by a policy set on supporting Polish entrepreneurs not only in times of prosperity but also during a downturn like the pandemic.
The gross written premiums collected by KUKE in 2020 from credit insurance totalled PLN 131.5 million. This is the best result in this segment in KUKE's history, after a 30.5 percent increase year-on-year. With a view to KUKE’s commercial activities alone, exclusive of State Treasury-backed export credit insurance, this is the first time the gross written premium has reached a level of PLN 100 million, which is a 33 percent increase compared to 2019.
"We were set on empowering Polish entrepreneurs in this ever so difficult year for them, providing them with the tools to effectively insure their trade receivables at a time when the risk associated with running a business has drastically increased. The possibility of providing one’s counterparties with trade credit during a crisis not only means the uninterrupted execution of current orders but also an opportunity to acquire new contracts. And many firms, including export companies, have taken advantage of this solution. KUKE’s results have demonstrated that we operated extremely effectively for our Clients, recording higher revenue dynamics than in 2019. Our approach and the fact that we are among the few who swiftly responded to the emerging challenges and opened up more possibilities for further expansion has received recognition from entrepreneurs. We implemented new solutions at a very uncertain time for the market as no one knew how the situation will unfold. And all this coupled by effective risk management, resulting in another year in a row of limiting the loss ratio and historically the best profitability of our business", Janusz Władyczak, KUKE President and CEO, asserted.
Drawing on the latest data from the Polish Financial Supervision Authority, KUKE has remained one of the most dynamically developing companies in terms of the premium growth in the non-life insurance sector. After three quarters of 2020, it reported an 18 percent year-on-year increase... at a time while the market stagnated.
O"ne can only hope that the shock to the economy induced by the pandemic will spur even more entrepreneurs to take advantage of the instruments offered by financial institutions, which are designed to ensure safe development. This should be borne in mind particularly in the present times when public aid to enterprises – what with the world economy gradually recovering from the crisis – will be reduced, which may have a ripple effect of a greater scale of insolvency. We’re confident that the innovative solutions for entrepreneurs and banks within the new export support system that we recently introduced at KUKE will help keep up the pace of development. In so doing, we will be contributing to the reinforcement of the excellent results of Polish exports, which have fared exceptionally well, handling the global trade disturbances tremendously well", Janusz Władyczak adds.