The annual general meeting of Ethniki Insurance Company for 2006 took place today.
In his speech, the Chairman and Chief Executive Officer of the Company, Mr Doucas Paleologos referred to the Greek Insurance Market, which has undergone a large array of changes during the past year.
2006 will be characterized as the year in which a significant effort was undertaken for the curtailment of the adverse competition mainly through the extensive audits completed by the Supervisory Authority, resulting in the partial improvement of the market condition. Also,the year was marked with the entry of two large international groups into the Greek insurance market. He noted with confidence that the aforementioned has resulted in the Greek insurance market being at the beginning of new era of development and along with the support of the Government for the establishment of a healthy corporate environment, the future holds positive prospects.
The Ethniki Insurance Company was able to grow at a faster pace than the rest of the insurance market, with the key catalysts of development being the Bancassurance business and the high performance of the agency sales network. The broker's contribution was significant resulting in the increase of the turnover of the Company, especially in the Fire business.
An impressive increase of gross written premiums in the Life business of 41% was achieved, which was more than double that of the market of 17,5%. The increase in P&C business was 2%, while the market showed an increase of 5%.
During 2006 the advantage of the synergies with the NBG Group, expanded successfully with the start of the promoting of mortgage loans through the sales network of Ethniki Insurance.
The qualitative improvements and the impressive growth of business were not accompanied by high profitability, mainly because of the strengthening of the reserves in the Motor business and the cost of the voluntary retirement scheme. The pre-tax profits for the Group amounted to euro 2.054 thousand, while after tax profits resulted in a loss of euro 2.341 thousand. Therefore in accordance with the provisions of Law 2190, a dividend for 2006 will not be distributed.
Given the trend of 2006 and the positive prospects, the management of the Company expressed their confidence in attaining a satisfactory profitability for 2007. This can be seen from the Q1 2007 results. Specifically, the Chairman and Chief Executive Officer, Mr Doucas Paleologos noted the exceptional growth rate of the Q1 2007, which can be partly attributed to the Motor business, as well as the 44,6% increase in the Life business.