This section describes the financial results for the ERGO Hestia Group insurance companies: STU ERGO Hestia SA and STU na Życie ERGO Hestia SA, as well as the most important factors influencing the reported results; their transparent presentation will be helpful for future insurance decision-making by stakeholders.
In the anniversary year 2021, the insurance companies of the ERGO Hestia Group collected a total of more than PLN 7.877 billion in gross premiums. This is 14.4% more than in the previous year and the highest ever in the insurer’s history. The group’s net profit was PLN 373 million while the technical result amounted to PLN 434 million.
ERGO Hestia’s results for 2021 show that we have a strong foundation which creates a solid entry point into the next fourth decade of the company’s life. ERGO Hestia’s strength can be seen in all areas of our business: strong sales, effective risk management, product development, as well as unique IT solutions for improving claims handling efficiency and developing cooperation with agents and brokers. We have built an organisation that is prepared for a volatile environment, which gives us the ability to react quickly. Effective cooperation with business partners based on many years of experience and trust pays off regardless of difficult market moments such as a pandemic or the situation in Ukraine.
STU ERGO Hestia generated a written premium of PLN 7,440 million, which was 14% higher than the result in 2020. STU na Życie ERGO Hestia collected PLN 437.4 million, growing year-on-year by 22%. The plan is to generate a cumulative net profit of PLN 1.1 billion between 2021 and 2023.
In 2021, ERGO Hestia implemented and continued a number of projects, including in particular the implementation of the internal model, the ERGO Biznes platform, the agricultural insurance offer, and the PinPoint platform. STU ERGO Hestia SA was the first insurer in Poland to introduce an internal model in management and to achieve a solvency ratio in excess of 200%.
Photo: Aleksander Małachowski
PREMIUM WRITTEN | 2020 | 2021 | Change |
---|---|---|---|
Non-life insurance | 6,526,147 | 7,440,119 | 114.0% |
Life insurance | 357,522 | 437,397 | 122.3% |
ERGO Hestia Group premiums | 6,883,669 | 7,877,516 | 114.4% |
2020 | 2021 | Change | |
---|---|---|---|
NET PROFIT | 328,460 | 373,476 | 113.7% |
Non-life insurance | 317,252 | 357,564 | 112.7% |
Life insurance | 11,208 | 15,912 | 142.0% |
in thousands of PLN
Sopockie Towarzystwo Ubezpieczeń ERGO Hestia SA
2020 | 2021 | Change | |
---|---|---|---|
Gross premiums written | 6,526,147 | 7,440,119 | 114.0% |
Gross claims and benefits paid | 3,374,858 | 3,582,422 | 106.2% |
Costs of insurance business | 1,897,460 | 2,095,839 | 110.5% |
Investment income | 187,764 | 193,032 | 102.8% |
Costs of investment activities | 13,179 | 12,833 | 97.4% |
Technical result | 297,615 | 412,270 | 138.5% |
Profit before tax | 416,193 | 471,374 | 113.3% |
Net profit | 317,252 | 357,564 | 112.7% |
BALANCE SHEET
2020 | 2021 | Change | |
---|---|---|---|
SCR – Solvency Capital Requirement | 1,843,890 | 929,290 | 50.4% |
Own resources | 2,802,727 | 2,570,166 | 91.7% |
Solvency ratio SCR | 152.0% | 276.6% | 182.0% |
ASSETS
2020 | 2021 | Change | |
---|---|---|---|
Investments | 9,839,144 | 9,607,088 | 97.6% |
Cash | 2,874 | 3,504 | 121.9% |
EQUITY AND LIABILITIES
2020 | 2021 | Change | |
---|---|---|---|
Equity | 2,758,517 | 2,201,535 | 79.8% |
Technical reserves | 10,389,634 | 11,285,156 | 108.6% |
in thousands of PLN
Sopockie Towarzystwo Ubezpieczeń na Życie ERGO Hestia SA
2020 | 2021 | Change | |
---|---|---|---|
Gross premiums written | 357,522 | 437,397 | 122.3% |
Gross claims and benefits paid | 224,395 | 240,245 | 107.1% |
Costs of insurance business | 90,134 | 129,393 | 143.6% |
Investment income | 30,225 | 30,144 | 99.7% |
Costs of investment activities | 1,897 | 1,713 | 90.3% |
Technical result | 18,563 | 22,215 | 119.7% |
Profit before tax | 18,359 | 22,128 | 120.5% |
Net profit | 11,208 | 15,912 | 142.0% |
BALANCE SHEET
2020 | 2021 | Change | |
---|---|---|---|
SCR – Solvency Capital Requirement | 223,086 | 235,929 | 105.8% |
Own resources | 459,356 | 450,271 | 98.0% |
Solvency ratio SCR | 205.9% | 190.9% | 92.7% |
ASSETS
2020 | 2021 | Change | |
---|---|---|---|
Investments | 770,371 | 738,332 | 95.8% |
Cash | 57 | 79 | 138.6% |
Investments of the life insurance fund for the account and risk of the policyholder | 411,270 | 432,149 | 105.1% |
EQUITY AND LIABILITIES
2020 | 2021 | Change | |
---|---|---|---|
Equity | 274,456 | 207,344 | 75.5% |
Technical reserves | 1,087,177 | 1,150,992 | 105.9% |
Technical reserves for life insurance where the investment risk is borne by the policyholder | 411,270 | 432,149 | 105.1% |
in thousands of PLN
Photo: Witold Ziomek
As at 31 December 2021, STU ERGO Hestia SA ranks 2nd in the non-life insurance market and STU na Życie ERGO Hestia SA ranks 11th on the life insurance market in Poland in terms of gross premiums written. ERGO Hestia’s offer includes a broad package of insurance and insurance-investment products. The predominant part of STU ERGO Hestia SA’s portfolio is made up of products in the motor insurance lines (60% measured by gross premiums written). The most significant part of STU na Życie ERGO Hestia SA’s portfolio is made up of products sold in the individual customer segment (52% measured by gross premiums written).
The ERGO Hestia Group insurance companies did not have any branches abroad as at 31 December 2021 while the non-life company notified the supervisory authority of the possibility of conducting insurance activity otherwise than through a branch in the territory of a European Union Member State other than the Republic of Poland. The business conducted as notified to the Polish Financial Supervision Authority represents an insignificant part of the portfolio, i.e., approximately 0.4% of gross written premium.
The level of coverage of the capital requirement is regularly assessed, monitored and controlled in the established monitoring and early warning system.
The total SCR reached PLN 929,290 thousand for STU ERGO Hestia SA and PLN 235,929 thousand for STU na Życie ERGO Hestia SA. The ratio of eligible own funds to SCR was 257% and 190.9%, remaining at a safe high level.
STU ERGO Hestia SA
The profit on the Company’s insurance activity was PLN 412,270 thousand, which was PLN 114,655 thousand more than the profit on insurance activity generated in 2020. In the motor insurance lines, the profit stood at PLN 236,126 thousand and was higher by PLN 99,720 thousand compared to 2020. In the non-motor insurance lines, the profit stood at PLN 176,144 thousand and was higher by PLN 14,935 thousand compared to 2020.
The company invests funds in accordance with the prudent investor principle in secure instruments, in particular in debt instruments of the State Treasury. The structure of the investment portfolio ensures a high level of liquidity while seeking to maximise the safety and profitability of the funds placed. Gains on investments in 2021 amounted to PLN 157,022 thousand and were lower by PLN 66,221 thousand year on year, mainly due to lower unrealised gains on debt securities and other fixed-income securities and higher unrealised losses on debt securities and other fixed-income securities. Debt instruments issued or guaranteed by the Treasury accounted for more than 90 percent of total investments at the end of 2021.
STU na Życie ERGO Hestia SA
In accordance with the Polish Accounting Standards, gross premiums written in 2021 amounted to PLN 437,397 thousand, which was PLN 79,876 thousand more than in 2020. The technical result in 2021 amounted to PLN 22,215 thousand, which was PLN 3,652 thousand more than in 2020. The increase in premiums and the technical result was mainly driven by high sales of term products in the individual customer segment.
The company invests funds in accordance with the prudent investor principle. The structure of the investment portfolio ensures a high level of liquidity while seeking to maximise the safety and profitability of the funds placed. Debt instruments issued or guaranteed by the State Treasury accounted for more than 90 percent of total investments at the end of 2021, excluding the net assets of life insurance where the investment risk is borne by the policyholder. Gains on investments in 2021 amounted to PLN 41,219 thousand and were lower by PLN 10,738 thousand year on year, mainly due to lower unrealised gains and higher unrealised losses on net assets of life insurance where the investment risk is borne by the policyholder.
For more information on the Companies’ financial performance and position, please refer to the following reports:
Report on solvency and financial position of Sopockie Towarzystwo Ubezpieczeń ERGO Hestia SA
Report on solvency and financial position of Sopockie Towarzystwo Ubezpieczeń na Życie ERGO Hestia SA
The insurance companies continued to offer insurance products included in all statutory insurance groups in 2021.
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Sopockie Towarzystwo Ubezpieczeń ERGO Hestia S.A. with its registered office in Sopot, ul.
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