Profit of Česká pojišťovna last year grew by nine percent, reaching 3,9 billion CZK
ČP pension fund last year made clients' deposits gain 2.2%, the highest appreciation in the market; profit up by 57%
Česká pojišťovna again confirmed its strong position in the Czech insurance market.
Its financial results last year, according to IFRS, showed a profit of CZK 3.9 billion after tax (+9% year-on-year) and total premiums written exceeded CZK 32 billion. The extremely stable position of Česká pojišťovna is evidenced by the A- rating recently affirmed by S&P, with a stable outlook.
Also the largest subsidiary of Česká pojišťovna - Penzijní fond ČP (Pension Fund, now Penzijní společnost ČP - Pension Company of ČP) achieved significant success last year with an increase in profit to CZK 1.4 billion* (+57% year-on-year). Clients will benefit from this profit because it will be distributed among them by law. Thanks to the PFČP record profit, clients have the highest appreciation among pension funds (+2.2%). Together with the government contributions, PFČP clients’ deposits appreciated by 4.8% on average.
"Last year's profit of CZK 3.9 billion, about 9 percent higher than the year before, proves our ability to preserve profitability even in a very complicated environment. In recent years, we implemented extensive structural savings
in operating costs, so we can substantially invest in the future", says ČP CEO Pavel Řehák, who adds: "Last year,
we reduced our general expenses by 7 percent, which means that we saved CZK 555 million, of which we re-invested back into ČP’s business development approximately CZK 180 million."
Premiums written are stabilizing
The total ČP premiums written last year reached, according to IFRS, CZK 32 billion. In P&C insurance premium income was CZK 19.5 billion, in life CZK 12.5 billion.
"Despite the complicated economic environment and de facto stagnating insurance market, we further improved the trend in premiums written last year. Premiums written in 2012 were almost stabilized, even though last year they still declined by 4 percent year-on-year. However we managed to reduce the rate of decline dramatically (-10 percent in 2011)", says Pavel Řehák.
Premiums written in life insurance in 2012 declined by 5.6% on a year on year basis (-15.7% in 2011). In P&C insurance, the slowdown in the rate of decline is also noticeable. In 2011 it was 6%, while last year 3%.
600,000 new clients joined Penzijní fond ČP last year
At the end of 2012, almost 5.2 million people had pension insurance in the Czech Republic. A quarter of them entrusted their financial resources to Penzijní fond České pojišťovny, which in 2012 retained the leading position in the Czech market and contributed to the profit of the whole sector of pension funds by almost one-third.
"Last year people wanted to join the pension scheme under the original terms and conditions, so at the end of the year
we noticed a rapid increase in our client base. In November alone we gained approximately 100,000 new clients, for the whole year there were 250,000 new contracts. At the same time, 350,000 of our existing clients increased their regular deposit", explains Tomáš Matoušek, CEO of Penzijní fond České pojišťovny.
Excellent results of PFČP are supported by financial indicators. Thanks to the PFČP record profit, clients
have the highest appreciation among pension funds (+2.2%). Clients' deposited financial resources, including contributions from government and employers, in 2012 amounted to CZK 11.7 billion (+15% year-on-year). Also total assets recorded a growth, with a year-on-year increase of 14% to CZK 67.7 billion as at 31 December 2012.
At the end of 2012 PFČP underwent a transformation and converted into today's Penzijní společnost České pojišťovny. The company is now a leader in the so-called second pillar of the pension system, as it concluded more than 10,000 contracts during the first ten weeks of the pension reform. This represents two thirds of all contracts concluded
so far in the Czech Republic.
Česká pojišťovna’s financial results as at 31 December 2012
in CZK thousands, non-consolidated
according to international accounting standards IFRS
32 006 960
33 367 052
- of which life insurance
12 462 116
13 205 349
- of which regularly paid life insurance
10 776 017
10 944 163
- of which P&C insurance
19 544 844
20 161 703
121 743 541
116 514 457
21 330 712
17 455 551
3 882 648
3 553 005
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