European Reliance General Insurance Company S.A.
274, Kifissias Avenue, GR-152 32 Chalandri, Athens, Greece
European Reliance: Increase of Gross Earned Premiums and Strong Profitability of the Group in the first semester of 2020
Increase of Gross Earned Premiums and Strong Profitability of the Group in the first semester of 2020
Statement of the Management
“European Reliance Group of Companies maintained a profitable course, increasing its Gross Earned Premiums and its market share in the Greek Insurance Market.
The financial results of the first semester of 2020, prove the Group’s ability to be rapidly adjusted and deal effectively with all risks that may arise in an unprecedented Global and Greek economic environment.
The appearance of Covid-19 pandemic and the Natural Disasters - as a result of the climate change - were the major events that led the Greek Insurance Market and the International financial markets in an environment of financial instability and uncertainty. Moreover, the Management of the Group immediately activated the Crisis Management Team, examining on a frequent basis the liquidity ratio and the impact of Covid-19 and all other risks in the Group’s financial figures. For the best assessment, the Company conducts on regular intervals sensitivity analyses and stress tests on the Group’s financial figures, even for extreme scenarios. In all these scenarios, the Solvency Ratios and the liquidity remain at high levels and the Group's Management has proactively planned a series of actions to address the potential future risks.
Providing continuous support to the Sales Network, to the Insured and the Employees, driven by the steadily positive course of the Group in the first semester of 2020, we continue to implement our strategic and financial goals and we stay close to the society in these difficult times.
Vice-Chairman of the Board of Directors
Chief Financial Officer
Significant profitability and 5.2% increase of the Gross Earned Premiums for European Reliance Group of Companies in the first semester of 2020. The Management of the Group presented the financial results, the actions, and the upcoming plans by the end of the year via teleconference, that took place on September 30, 2020.
- The total revenues of the Group presented 5.5% increase and amounted to € 113.1 mil., versus € 107.2 mil. in the corresponding period of the previous year, positively affected by the 5.2% increase of the Gross Earned Premiums of the Group, at € 106.5 mil., versus € 101.2 mil., in the corresponding period of the previous year, comparing to the 4.5% recession in the Greek Insurance Market in the respective period.
- The market share of European Reliance in the Greek Insurance Market for the first semester of 2020 estimated to 5.5%, versus 5.1% in the first semester of 2019. The market share in the Life Sector estimated to 3.8%, versus 3.3% in the first semester of 2019, and the market share in the Non-Life Sectors presented 6.9% increase, versus 6.6% in the corresponding period of the previous year.
- The consolidated pre-tax profit of the Group remained at high levels and amounted to € 13.8 mil., versus € 16.1 mil., in the corresponding period of the previous year.
- The Insurance Result amounted to € 24.6 mil., versus € 26.6 mil., in the corresponding period of 2019, presenting 7.5% decrease, which reflects the decrease of the net investment income, as a consequence of the Covid-19 pandemic in the International and Greek financial markets.
- Motor Sector’s Insurance Result amounted to € 16.3 mil., versus € 9.0 mil., in the corresponding period of 2019, presenting 81.3% increase, being positively affected by the increase of the Net Earned Premiums and the decrease of the insurance claims.
- Life Sector’s Insurance Result amounted to € 2.3 mil., versus € 11.1 mil. in the corresponding period of the previous year. The 79.6% decrease is mainly due to the increase of the paid insurance claims by € 2,9 mil. and the decrease of the net investment income by € 6,9 mil., as a result of the Covid-19 pandemic in the international financial markets.
- Other Non-Life Sectors’ Insurance Result amounted to € 6,0 mil., versus € 6,5 mil., in the corresponding period of the previous year, presenting 6.9% decrease, mainly due to the increase of the reinsurance premiums by € 1,3 mil. and the € 0.7 mil. increase of the insurance provisions.
- The Group’s Total Equity presented marginal 1.0% decrease at € 139.8 mil. in the end of the first semester of 2020, versus € 141.2 mil., in the end of 2019, which is mainly due to the net profitability of € 10.3 mil., the distribution of dividend to the shareholders equal to € 6.6 mil., the acquisition cost of the Own Shares at € 1.3 mil. and the loss from the valuation of the Investment Portfolio by € 4.0 mil.
- The Mathematical Reserves and Technical Provisions amounted to € 300.1 mil., presenting marginal 0.8% decrease, versus € 302.6 mil., on 31/12/2019.
Moreover, the personnel of the Parent Company increased by 2 people, reaching 446 employees, comparing to 31/12/2019.
It is worth noting that the Group performed 27 Corporate Social Responsibility Actions in the first semester of 2020, totally in compliance with the 17 SDGs and the UN Global Compact.
The interested parties may find further information on the Company’s website www.europaikipisti.gr/en/Home, in the section Investor Relations.
Article and photo source: Press Release / Newsletter