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therefore, good growth potential still exists in the areas of household and homeowner insurance, as
well as motor vehicle own-damage insurance.
The insurance market in Slovakia
In the past, the Slovak insurance market showed high growth rates that were primarily driven by
the liberalization of the motor vehicle liability insurance market in 2002. After Slovakia joined the EU
on May 1, 2004, the application of EU-wide insurance law changed the regulatory environment.
A total of 26 insurance companies were operating in Slovakia in 2006, 21 in the life insurance
area and 21 in the non-life area (Source: Slovak Insurance Association). Insurance density, measured
as premiums per resident, grew strongly from USD 276 in 2004 to USD 315 in 2005 and USD 337 in
2006. As in the Czech Republic, the Slovak insurance density of USD 337 in 2006 also lies
significantly below the level of USD 3,305 for the EU-15 countries, showing considerable growth
potential. Slovakia, together with Slovenia, the Czech Republic, Hungary, Poland and Croatia, has one
of the most developed insurance markets in the CEE region, and exhibits the fourth highest insurance
density in this high growth region (Source: Swiss Re sigma No. 4/2007).
The table below sets forth gross premiums written and benefit payments for Slovakia for the
periods presented:
Gross premiums written
Claims/Benefits paid
Fiscal year ended December 31, Fiscal year ended December 31,
2007e(*) 2006 2005 2007e(*) 2006 2005
(in SKK million) (in SKK million)
Non-Life . . . . . . . . . . . . . . . . . 28,862.4 28,253.2 29,761.7 10,022.6 11,203.4 11,125.2
Life . . . . . . . . . . . . . . . . . . . . . 28,817.7 25,504.0 22,032.1 12,736.1 8,988.1 7,410.0
Total . . . . . . . . . . . . . . . . . . . . 57,680.1 53,757.1 51,793.8 22,758.7 20,191.5 18,535.2
(Source: Premiums: Slovak Insurance Association; Payments: Financial Market Office)
(*) Forecast based on a projection for 2007
The Slovak insurance market has become particularly competitive in motor vehicle insurance in
recent years. In addition, there was a change in the quality of premium reporting to the insurance
association and government authorities, making it difficult to compare 2005 and 2006. The positive
trend in 2007 is primarily supported by motor vehicle own-damage insurance, due to an increasing
demand for motor vehicle leasing solutions, as well as the property insurance classes, due to the
construction boom in Slovakia.
The growth in life insurance is primarily due to newly introduced index-linked products, as well as
investment solutions with a guaranteed interest rate.
The Polish insurance market
As a result of the good overall economic development of the country and the related increase in
demand for insurance solutions, the Polish insurance market has recorded high growth rates in recent
years. Poland’s accession to the EU also brought legal conformance with the European legal system.
A total of 64 insurance companies were operating in Poland in 2006, 31 in the life insurance area
and 33 in the non-life area (Source: Supervisory Authority KNF). Insurance density, measured as
premiums per resident, rose considerably from USD 193 in 2004 to USD 245 in 2005 and USD 310 in
2006. As for the Czech Republic and Slovakia, the insurance density of USD 310 in 2006 was
significantly below the level of USD 3,305 for the EU-15 countries, showing that growth potential also
continues to be very high in Poland. The Polish market has the fifth highest insurance density in the
CEE region (Source: Swiss Re sigma No. 4/2007). Due to its strong growth potential and large
population of approximately 39.0 million, Poland will be one of the most important and largest
insurance markets in Europe in the foreseeable future.
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