Recently released market study: Czech Republic Insurance Report Q2 2011

New Financial Services market report from Business Monitor International: "Czech Republic Insurance Report Q2 2011"
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Feb. 26, 2011 - PRLog -- Writing in EARLY 2011, the most recent available data, released in October 2010 by the Czech Insurance Association (CAP), show us that the encouraging economic signs of recovery in the country during 2010 had a positive effect on the insurance industry. In the first half of 2010, non-life premiums were just 0.7% lower than they had in H109. This was despite of a 5.9% contraction in compulsory third-party motor liability (CTPML) insurance and a 7.0% fall in motor hull insurance (ie: CASCO). These two business lines accounted for nearly half of all non-life premiums in H110. This implies that a broad range of commercial and property lines are growing quite strongly, despite the still challenging economic environment.

Most surprisingly, there was a 21.5% surge in life premiums in this period. This was the result of a 73.0% increase in premiums on single payment products - from CZK7,892mn in H109 to CZK13,653mn in H110. This suggests that consumers interested in savings are finding life insurance products attractive.

We estimate total premiums in 2010 of CZK151,730mn. This includes non-life premiums of CZK79,876mn and life premiums of CZK71,853mn. In 2015, the corresponding figures are forecast to be CZK203,162mn, CZK119,858mn and CZK83,304mn.

In terms of the key drivers that underpin our forecasts, we expect for non-life penetration to rise from 2.11% of GDP in 2010 to 2.35% in 2015 and for life density to increase from US$353 per capita to US$450 per capita. BMI's Insurance Business Environment Rating for the Czech Republic is 64.7.

Trends in the market place over the last year or so include the main winners of market share being smaller or specialist operators such as EGAP, the export guarantee insurer, Slavia, AXA, Wustenrot, Cardif, HDI, Victoria, HVP and UNIQA. Of the larger firms, Kooperativa and Ceska Poistovna, the largest subsidiaries of Vienna Insurance Group and Generali/PPF respectively, lost ground. In the life segment, spectacular gains in market share were made by bank-affiliated insurers such as Komercni Poistovna, Vienna Insurance Group's PCS and CSOB Poistovna. The life segment expanded rapidly because of the success of these insurers in selling single premium products.

Issues To Watch

Contagion In Bond Markets

The resilience of the Czech Republic's economy and insurance companies was reflected in the performance of both, but volatility in bond markets elsewhere in Central and Eastern Europe, which affects perceptions of Czech bonds, could continue to be a challenge.


Some Czech insurers appear to be increasing their prices and profitability, even as the number of policies is declining.

Surging Sales In Life Products

The development of the life segment through 2010 appears to have been driven by the sale of single premium products through bank linked life companies.

Consolidation Among Smaller Players

In the non-life and the life segments there are smaller players whose parents are not necessarily committed in the long-term to a stagnant market in which they are losing market share. Profitability may also be approaching a cyclical peak.

For more information or to purchase this report, go to:

Partial Table of Contents:

Executive Summary
- Table: Overview Of The Czech Republic's Insurance Sector
- Table: Premiums By Lines, 2008-209(CZKmn)
- Issues To Watch
SWOT Analysis
- Czech Republic Industry SWOT
- Czech Republic Political SWOT
- Czech Republic Economic SWOT
- Czech Republic Business Environment SWOT
MetLife's Acquisition Of ALICO
- Table: ALICO At A Glance
- Table: ALICO's Pre-Tax Profits By Segment And Region Contribution, Year To November 30 2009 (%)
- Table: ALICO - A Market Leader In Japan
- Table: MetLife's Acquisition Of ALICO
- Table: MetLife And ALICO Combined
Central And Eastern European Markets Overview
- Table: Non-Life Segment Premiums In Central And Eastern Europe
- Table: Life Segment Premiums In Central And Eastern Europe
Projections And Forecasts
- Table: Premiums, 2007-2015
- Projections And Drivers Of Growth
- Table: Growth Drivers, 2007-2015
Country Update
- Macroeconomic Outlook
- Table: Czech Republic Economic Activity, 2006-2015
- Political Outlook
- Long-Term Political Outlook
Insurance Business Environment Ratings
- Table: Czech Republic's Insurance Business Environment Ratings
- Table: Central And Eastern Europe Insurance Business Environment Ratings
Regional Context
- Table: Non-Life Premiums In A Regional Context, 2009
- Table: Life Premiums In A Regional Context, 2009
Major Players In The Czech Insurance Sector
- Table: Principal Insurance Lines By Gross Written Premiums, H109
- Table: Companies By Gross Written Premiums, 9M09
Analysis Of Regional Competitive Conditions
Company Profiles
- Local Company Profiles
- Ceska pojist'ovna
- Regional Company Profiles
- Allianz
- Aviva
- BNP Paribas/Cardif
- Eureko
- Generali
- Groupama
- HDI-Gerling
- KBC Group
- MetLife ALICO
- Prudential Financial
- Vienna Insurance Group
- Zurich
Country Snapshot: Czech Republic Demographic Data
- Section 1: Population
- Table: Demographic Indicators, 2005-2030
- Table: Rural/Urban Breakdown, 2005-2030
- Section 2: Education And Healthcare
- Table: Education, 2002-2005

Full Table of Contents is available at:

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.
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