Thanks to the lasting economic growth in 2019, after the record-high GWP in 2018, the total GWP of the region further increased by 6.3 percent last year. – according to the Deloitte CEE Insurance M&A Study. A driver of this growth remains the expansion of the non-life business line. However, the several-year-long decreasing trend of the life insurance business line was broken in 2019, and was able to display a modest, 2.1 percent growth on a regional level.
The average insurance premium penetration (the ratio of the GWP to the GDP) practically remained the same in all 15 countries, around the rate of 2.4%. The average annual GWP per capita grew by 6.4% to EUR 348 in 2019.
The top 10 life insurance groups with the largest GWP in the region own 75% of the regional GWP. A typical regional top 10 group is present in 5-6 CEE countries on average, owning approximately EUR 929m GWP in total. In the case of the non-life business line, the top 10 leading insurance groups account for around 69% of the total gross written premiums. Similarly, such a typical regional group is present in 5-6 CEE countries on average owning on average EUR 1,809m GWP in total.
Recently, several international insurance companies have decided to reconsider their presence in the region, and considered the possibility of an exit, as a result of which in 2020 industry players experienced transactions of a volume unseen for years. These include transactions of the French AXA, as part of which it sold its Polish, Czech and Slovakian ownership interests to Austrian Uniqua for EUR 1 billion, and Dutch Aegon, which sold its Hungarian, Polish, Romanian and Turkish ownership interests to Austrian VIG for EUR 830m in a recently announced transaction. At the same time, other major players are actively promoting their intention to expand and to acquire: these include inter alia Austrian insurance companies VIG and Uniqua, Italian Generali, and the Euroins group with its centre in Bulgaria.
Even though the markets of the individual countries are typically dominated by the top 3-6 insurance companies, there are many minor players sharing the remaining market. The markets still have many players and remain greatly competitive, which may drive further market consolidation, according to the study.
In terms of the number of transactions, in the period covered by the study (2015-November 2020), Poland remains the most active market of the region with 17 transactions, followed by Czechia (14), Hungary (9), Romania (7), and Bulgaria (7).
The most active buyer in the region was still the Austrian VIG Group, with 10 closed transactions and 3 ongoing ones in the past period. Further major buyers included Canadian Fairfax Group, Generali, Euroins, Uniqua, and Allianz.
Reversal financial transactions are transactions with most amounts and numbers reversed (multiplied by -1). The Reverse? column in the table below indicates if a value is to be reversed in reversal transactions. Refer to Reversal Transactions section for more details.
Base Financial Object
Base financial objects represent 'what' financial transactions are for (in most cases, what is being 'paid for'). Each of these objects has an initial financial transaction (that is created together with the base object when it first becomes ready for OHI financial processing) and may have additional financial transactions - additional versions - resulting from reprocessing of the base object that impacts financial aspects of it.
FieldReverse?DescriptionClaim Code
The code of the Claim
Gen Fin Proc Complete Datetime
Date and time on which the general financial processing activities have been completed for the base financial object
Status
Status of the base financial object. Possible values:
IN - Initial
CH - Changed
SR - Supersede and Reverse Done
FM - Financial Message Handled
Type
The type of the base financial object indicating the origin, which is always 'CLA' for Claims
Claim Set Code
The code of the claim set to which the claim is assigned
Financial Transaction
This entity holds the financial transactions generated by the finalization of Claims processing. Claims processing creates one financial transaction for each claim transaction, a.k.a. a version of the claim.
FieldReverse?DescriptionBase Financial Object
Reference to the base financial object
Final Indicator
Indicates whether the financial transaction may be included in a financial message. For Claims this indicator is always set to Yes.
Processing Type
The type of transaction indicating the way it is processed. For Claims this type is always set to RG - Regular.
Reversal Indicator
Indicates whether this financial transaction is meant to reverse a previous financial transaction.
Source
Reference to the origin of the financial transaction. For Claims this origin is always CP (Claims Processing).
Total Amount
Y
The sum of the amounts of the financial transaction details in this financial transaction.
Total Amount Curr
The currency code of the total amount.
Version
Version number of the financial transaction within a base financial object.
Financial Transaction Process Data
Financial transaction process data records hold information that is added to financial transactions for financial processing purposes. The purpose of these details is provide a specific place for information added / updated for processing purposes in order to maintain the integrity of the financial transaction as received from the source system.
FieldReverse?DescriptionFinancial Transaction Set Grouping
The condition used to group financial transactions into a single financial transaction set. By default this is not set.
Fin Message Bulking Group
The condition used to group financial transactions into a single financial message
Fin Message ID
The identification of the financial message this financial transaction is included in.
Financial Message Handled Datetime
The date and time the financial transaction was handled by the financial message creation activity
Financial Message Mandatory Indicator
Is a financial message mandatory for this financial transaction?
Financial Message Result
The outcome of message creation: message created or message not required
M - Message created
N - Not required
S - Superseded
Financial Transaction
Association to the financial transaction
Internal Remarks
Additional remarks on the financial transaction
Penalty Date
The penalty date
Due Date
The penalty date of this financial transaction
Superseded Indicator
Is the financial transaction superseded?
Financial Transaction Detail
This entity holds the financial transaction details generated by the finalization of Claims processing. Claims processing by default creates one financial transaction detail for each claim line transaction coverage; this can be enhanced through dynamic logic.
Financial transaction details represent the lowest level financial breakdown of a financial transaction. Each financial transaction detail is an amount with information needed for its financial processing.
Financial transaction details are not updated in line with general accounting principles. Processing related information for a financial transaction detail is maintained in a corresponding 'Financial Transaction Detail Process Data' record.
FieldReverse?DescriptionAmount
Y
The amount of the financial transaction detail
Amount Curr
The currency code of the amount
Claim Line Code
The code of the claim line, unique within a claim
Component Code
The code of the component, default the coverage label
Component Display Sequence
The sequence of the component for display purposes
Financial Transaction
Association to the financial transaction
Number of Units
Y
The number of units
Product Brand Code
The code of the brand of the product
Product Code
The code of the product
Sequence Number
The unique identifier of the financial transaction detail within the financial transaction (generated sequence within parent)
Financial Transaction Detail Process Data
Financial transaction detail process data records hold information that is added to financial transaction details for financial processing purposes. The purpose of these details is provide a specific place for information added / updated for processing purposes in order to maintain the integrity of the financial transaction as received from the source system.