Foreword of the Chairman of the Board of Directors

In 2011, Komerční pojišťovna was able to reach its budget both on commercial and financial sides. The fact that this happened in a very difficult economical and financial environment proves the maturity of the company and its ability to deliver the expected results even within a moving and changing context.

2011 confirmed the appropriateness of our commercial strategy based on the bank-insurance model with Komerční banka on the one hand and on diversification with other distribution channels on the other hand. Indeed, in 2011, the business developed in cooperation with insurance intermediaries showed a strong growth and started to contribute significantly to the final results. Moreover, the initial results of the newly launched sales of Vital Invest in the distribution network of Modrá pyramida were very positive and showed the ability of this big distribution network to adapt itself to a new business model based on a diversification of its offer. At the same time we developed new innovative products with Komerční banka in order to permanently adapt our offer to clients' needs; “Lady karta” and “MojePojištění plateb” products were successfully launched in 2011.

For the third year in a row, Komerční pojišťovna collected the highest amount of written premiums on the market in the category of single-paid contracts, totalling CZK 5,785 million. This is a great achievement as this specific segment is very competitive and transparent. Client awareness is also higher and our first place for the third consecutive year testifies the quality of our offer in this segment.

Thanks to this dynamism, the value of our client´s managed assets grew to CZK 24.5 billion, + 22% compared to last year's end. This growth was managed safely and our portfolio of assets showed in 2011 a strong resistance to market fluctuations. In spite of those fluctuations, KP was able to maintain a good level of remuneration for its life insurance contracts (up to 3%).

In 2011, Komerční pojišťovna kept on building strong financial foundations thanks to regular financial revenues, a prudent reserves policy, a conservative investment strategy and continuous improvements in operational efficiency. One important step for securing better synergies was the transfer of IT servers to Komerční banka. This solution provides better availability as well as higher operational security.

Komerční pojišťovna also boosted its financial standing in 2011 thanks to a decision of its shareholders, Komerční banka and SOGECAP, to increase the company's share capital to support its strong development.

Komerční pojišťovna will focus on its clients' satisfaction in the months to come. Studies will be launched in cooperation with our main distributors to better measure and monitor our clients' satisfaction and expectations. Thanks to this, the company will be better equipped to adapt its products and processes to its clients' needs.

We have many projects and opportunities ahead of us. It will be very important to demonstrate to our partners our ability to be with them as they develop and to deliver efficient, timely solutions to support them. I am convinced that Komerční pojišťovna, thanks to its skilful teams, can meet these challenging goals and continue in its dynamic development in the coming years.

Signature Corbet

Stéphane Corbet

Chairman of the Board of Directors and CEO

Stéphane Corbet

In 2011, Komerční pojišťovna kept on building strong financial foundations thanks to regular financial revenues, a prudent reserves policy, a conservative investment strategy and continuous improvements in operational efficiency.