1.4 Value creation model

It is the sum of the funds entrusted to us by customers, the capital provided by the shareholders and bondholders, and the profit generated from our insurance business. We manage our financial capital to maximise the efficiency of its use while ensuring a high level of liquidity and the safety and profitability of the funds invested. In this way, we use managed capital to offer responsible and sustainable insurance products and services.

• PLN 15.4 billion – assets;
• PLN 260.5 million – equity;
• Close to PLN 7.9 billion in gross written premiums.

Strategy and business model

ERGO Hestia’s business model is based on two pillars. One of those is diversification and the other one is the Highest Standard of Protection. Diversification within the Company covers corporate and retail sales. The Highest Standard of Protection relates to top quality service, in particular after-sales and loss adjustment services. The efficiencies resulting from a model based on diversification and the Highest Standard of Protection are possible thanks to innovative and ground-breaking investments that digitise insurance processes.

ESG Strategy 2022-2025

Results of 2021

• We generated a net profit of PLN 373,475 thousand.
• We served 3 million individual customers and 0.5 million corporate customers in Poland.
• We paid out more than PLN 3.8 billion in gross claims and benefits.
• We contributed PLN 359,882,000 to the Polish budget.

Stakeholder effects

• Our offering includes a comprehensive package of insurance and insurance-investment products. The most significant part of the portfolio consists of products sold in the individual customer segment.
• We are focused on developing products and services that support the environment and climate change reduction while integrating ESG factors into the risk and investment assessment process.
• We invest funds in accordance with the prudent investor principle in secure deposits, in particular in Treasury debt instruments. The structure of the investment portfolio ensures high liquidity while striving to maximise the safety and profitability of the funds invested.

Contribution to the SDGs

It is our employees who create the innovations that set the trends on the Polish insurance market. One of the key factors determining ERGO Hestia’s success and competitive advantage are the values embedded in the company’s strategy, referred to as the Power of Information and the Power of Community. Thanks to them, we link the analytical potential of information resources and the competences of employees with their motivation and commitment. The Power of Community is also a driver for the development, motivation, sense of purpose and stability of employees. It is also the sum of relationships and mutual trust we have built up over the years with employees and business partners.

• 2,860 ERGO Hestia employees (Hestians).
• 94% of employees strongly believe in ERGO Hestia’s range of services and products, and 91% would recommend our company as a good place to work.
• 24 h is the average number of training hours per employee in 2021.

Strategy and business model

ERGO Hestia’s business model is based on two pillars. One of those is diversification and the other one is the Highest Standard of Protection. Diversification within the Company covers corporate and retail sales. The Highest Standard of Protection relates to top quality service, in particular after-sales and loss adjustment services. The efficiencies resulting from a model based on diversification and the Highest Standard of Protection are possible thanks to innovative and ground-breaking investments that digitise insurance processes

ESG Strategy 2022-2025

Results of 2021

• 10% was the employee turnover rate in 2021.
• 51% of managers are women.
• approx. 90% of directors and managers in the ERGO Hestia Group come from internal recruitment.
• 90% was the Hestians’ engagement score in 2021 (up 5 p.p. vs. 2019).
• 95% of our employees enjoy working together.
• we received the Top Employers Poland 2022 Certificate awarded for implementing the highest standards of human resources management and best HR practices.

Stakeholder effects

• We are one of the largest employers in the insurance market in Poland.
• We make sure that every employee feels safe with us and has prospects for development.
• We support and promote a culture of diversity every day.
• On the occasion of ERGO Hestia’s 30th anniversary, we conducted a study of organisational culture according to Geert Hofstede’s methodology for the second time in our history. Knowledge of an organisation’s culture allows one to better understand the attitudes of employees, the relationships within the company, to look at all processes and decisions from this angle.

Contribution to the SDGs

We are constantly working to develop and improve the quality and accessibility of our products and services through traditional and digital communication channels. For us, the key to offering customers the highest standard of protection is our cooperation with insurance intermediaries who form the sales network for our products and are often the first point of contact with customers. Therefore, we are constantly strengthening our relationships and implementing new solutions that our business partners and customers expect. We meet the highest standards in terms of responsible sales and conduct our business in line with the idea of sustainable development. We are the first insurer in Poland holding the Declaration of Responsible Selling certificate.

• 4,920 cooperating companies, i.e., agents, brokers and other business partners.
• 63,517 cooperating natural persons performing agent activities (OFWCA).
• Over 260 Standard Points and 30 Branded Points.

Strategy and business model

ERGO Hestia’s business model is based on two pillars. One of those is diversification and the other one is the Highest Standard of Protection. Diversification within the Company covers corporate and retail sales. The Highest Standard of Protection relates to top quality service, in particular after-sales and loss adjustment services. The efficiencies resulting from a model based on diversification and the Highest Standard of Protection are possible thanks to innovative and ground-breaking investments that digitise insurance processes.

ESG Strategy 2022-2025

Results of 2021

• We were awarded the Service Quality Star 2021 title by the Polish Service Quality Programme, ranking 1st by the main service quality metric for companies in the insurance industry (service quality metric of 84%, the highest result among insurance companies in Poland).
• 26.4 is our customer loyalty score (NPS), an increase of 5.7 p.p. vs. 2020.
• 477 participants in the first edition of the Agent Network Certification Programme.
• We won the Fair Play Award for the 13th time; it is awarded by insurance brokers who recognise us for our cooperation in insurance services.

Stakeholder effects

• We are building a community of insurance advisers offering the Highest Standard of Protection, looking after clients through accurate identification of needs and skilful selection of appropriate cover.
• Our business partners can count on a responsible partnership and on-going expert support (Agent Network Certification Programme and ARGO programme) and motivational support (iPunkt application).
• We initiate and implement changes to improve the quality of agents’ work including customer service, attractiveness and availability of the offer, as well as their sales performance (in 2021, we launched ERGO Biznes, a new solution for selling insurance to companies).

Contribution to the SDGs

As the runner-up in the insurance sector in Poland, we make positive social impact. We help accident victims, we support people with disabilities to facilitate their integration into working life, we work to integrate and educate local communities through employee volunteering wherever we do business. We support culture because we believe that art and exposure to art can generate extraordinary creativity, mindfulness and social value. We implement social programmes through the Integralia Foundation, the Hestia Artistic Journey Foundation and the Personal Injury Rehabilitation and Support Centre.

• 19 years of the Hestia Artistic Journey Foundation which runs an art patronage programme.
• 17 years of the Integralia Foundation supporting vocational activation of people with disabilities.
• 11 years of operation of the Personal Injury Rehabilitation and Support Centre effectively changing Polish standards of rehabilitation after accidents.

Strategy and business model

ERGO Hestia’s business model is based on two pillars. One of those is diversification and the other one is the Highest Standard of Protection. Diversification within the Company covers corporate and retail sales. The Highest Standard of Protection relates to top quality service, in particular after-sales and loss adjustment services. The efficiencies resulting from a model based on diversification and the Highest Standard of Protection are possible thanks to innovative and ground-breaking investments that digitise insurance processes.

ESG Strategy 2022-2025

Results of 2021

• More than 1,400 people assisted by the Personal Injury Rehabilitation and Support Centre since its inception (including 130 in 2021).
• PLN 35,000 is the average expenditure on rehabilitation of an injured person.
• 96 people with disabilities received individual assistance during sessions with a career counsellor, coach and job agent.
• 318 young artists entered the 20th edition of the Hestia Artistic Journey competition.
• 76 books entered in the Hestia Literary Journey competition.

Stakeholder effects

• We support cultural ventures right from the talent discovery stage.
• We promote valuable children’s literature as we believe that it has the power to shape the interests and form the value system of young readers.
• We promote education and investments related to environmental protection and environmental awareness.
• We create disability-friendly workplaces for people with disabilities in the ERGO Hestia Group and in other companies and institutions.
• We are changing the Polish standards of post-accident rehabilitation, restoring severe accident victims to health and functioning in society.
• We are a sponsor of the ERGO Arena and the Sopot Sailing Club.

Contribution to the SDGs

We care about the environment and aim to transform the insurance value chain by providing clients with a reliable climate risk assessment service, selecting measures to minimise environmental impact, offering preventive services, offering attractive insurance packages for low- and zero-carbon solutions (RES). We meet the highest environmental standards by conducting our business in accordance with the idea of sustainable development.

• We are the first insurer in Poland and the fourth non-life insurer in Europe to be registered as an EMAS-certified organisation.
• More than 95% of the electricity purchased comes from renewable sources.

Strategy and business model

ERGO Hestia’s business model is based on two pillars. One of those is diversification and the other one is the Highest Standard of Protection. Diversification within the Company covers corporate and retail sales. The Highest Standard of Protection relates to top quality service, in particular after-sales and loss adjustment services. The efficiencies resulting from a model based on diversification and the Highest Standard of Protection are possible thanks to innovative and ground-breaking investments that digitise insurance processes.

ESG Strategy 2022-2025

Results of 2021

• We implemented the environmental certification developed by Hestia Corporate Solutions office to assess corporate clients.
• We increased the number of video inspections in loss adjustment by 10% vs. 2020.
• We have joined once again Climate Leadership (UNEP Grid) and Climate Positive (UNGC).
• We reduced our water consumption by 33% vs. 2019.
• We increased the proportion of hybrid cars in our fleet to 31% (35% in 2020).
• We reduced Scope 1 and Scope 2 CO₂ emissions per employee by 25% vs. 2019.

Stakeholder effects

• We offer innovative products and services to support the transition to a low-carbon economy and projects that save natural resources, prevent waste and minimise environmental impact.
• We contribute to the sustainable transition of the insurance value chain.
• We are developing loss adjustment in a sustainable and environmentally friendly way.

Contribution to the SDGs