Comments on the Financial Results

Year-on-year trend in gross written premiums
– non-life insurance (in CZK thousand)

Year-on-year trend in gross written premiums
– life insurance (in CZK thousand)


According to Czech Accounting Standards, Komerční pojišťovna posted a profit of CZK 175 million for 2012. According to International Financial Reporting Standards used for the purpose of consolidation with KB, KP’s 2012 profit amounted to CZK 247 million.

Gross written premiums

In 2012, gross written premiums totalled CZK 6,149 million. Gross written premiums in the life insurance segment amounted to CZK 5,862 million, a slight decline of 11.1% year-on-year.

The non-life segment showed positive results, generating written premiums in the amount of CZK 287 million, which represented an 11.3% increase compared to 2011.

Structure of gross written premiums in 2012

Structure of gross written premiums in 2011

Structure of gross written premiums

The structure of gross written premiums did not change significantly in 2012. Similarly to prior years, risk life insurance and non-life insurance showed slight growth. Savings life insurance, in particular products with guaranteed appreciation and Forte and Optimo Komodity funds offered within the Vital Invest insurance sold by Komerční banka and MPSS, accounted for the biggest part.

Portfolio structure

Few changes have been made to the investment portfolio structure in recent years. Komerční pojišťovna continued to focus on conservative items. Fixed-income bonds accounted for 96% of the portfolio in 2012, making it possible to guarantee the clients a fixed yield. Czech government bonds constituted a large part of the portfolio, followed by bonds issued by banks and corporations seated within the EU, time deposits and shares.

Technical provisions

The volume of technical provisions rose by 19% year-on-year to CZK 29.2 billion as at 31 December 2012.


As at 31 December 2012, equity totalled CZK 2,389 million, which represents a 77% increase compared to 2011. The balance sheet sum amounted to CZK 32,048 million, a 22% increase year-on-year, as at 31 December 2012.

Komerční pojišťovna’s portfolio structure at 31 December 2012

Structure of technical provisions at 31 December 2012

Komerční pojišťovna’s portfolio structure at 31 December 2011

Structure of technical provisions at 31 December 2011

Internal Processes

Komeční banka’s operations underwent fundamental changes in 2012, stemming primarily from the sale and administration of new risk life insurance designed for distribution by MPSS and external partners from the ranks of insurance brokers. Another major modification pertained to several operational innovations aimed at enhancing customer satisfaction.

In the last quarter of 2012, Komerční pojišťovna launched sales of new risk life insurance, which significantly differs from the previous product range, in particular in offering a wide variety of risks and high variability of its parameters. This product was slightly adapted into several variants for different distribution channels. The variations comprised complex implementations in support applications and related processes, in particular management of insurance policies, underwriting and claims handling.

Major innovations aimed at enhancing customer comfort comprised another extension of functionalities of the MojeBanka online application allowing for administration of changes in insurance contracts and direct sale of selected products. Measures taken in the course of the year to improve customer service resulted in better client and distributor support in the pre-sale and sale stages, notably in health assessment for risk insurance policies.

In April 2012, an important modification of the system for notification of clients about due premiums was put into operation. Part of the system is soft collection software allowing for SMS and e-mail reminders. Information exchange via text messages was also introduced for specific communication with external distributors.

A new project was launched in the second half of the year with the aim to create a website for external distributors of insurance products and help them gain access to both general information for selling Komerční pojišťovna’s products and details of individual brokers‘ portfolios. This tool will become available for product distribution in the first quarter of 2013.

In 2012, Komerční pojišťovna initiated several surveys of customer satisfaction among clients and distributors. The surveys, focused on risk life insurance, were conducted via call centres or online using an application tool. The findings will be utilized for continuous improvement of services, optimization of processes and modifications of product offerings. In the coming years, Komerční pojišťovna will further expand these activities with the goal of raising the standard of customer service.

In Komerční pojišťovna also encompasses environmental protection. KP actively participates in the Green Firm project.

In terms of research and development KP is mainly focused on product´s development including IT systems used for products administration.

Human Resources

Within the scope of the SG Ambitions 2015 programme, the Société Générale Group decided to implement in all Group companies an integrated employee evaluation system, using the eValuation application with the objective of ensuring a transparent approach toward employee assessment. Uniform criteria and consistent format guarantee an objective method of employee evaluation across KP and SG Group.

This tool was launched in Komerční pojišťovna in the summer of 2012. For this purpose, in-house documents were drafted for both employees and managers. The programme also comprised in-house training sessions for managers to make them better oriented in the new system and the process of employee evaluation.

In connection with the new evaluation tool, in mid-2012 KP implemented SG Group’s Competency Model focused on seven key competencies of employees that are being monitored and developed.

The Talent Management project continued in 2012 in cooperation with KB. In the course of the year, selected talented employees participated in a variety of training sessions and meetings tailor-made to their specific needs and focused on enhancement of managerial potential.

Within Komerční banka’s development programme Challenging a winning team’s project was announced. One of the winning team members was a KP employee who successfully represented Komerční pojišťovna in the KB Group.