Financial Analysis and Currency Deposits
Profitable Life Insurance business - valuable and sustainable contribution to the Group
eurolife
€ mn
GWP2
Net reinsurance cost
13%
contribution
1H2022
1H2021
yoy%
73.5
65.3
12%
(10.2)
(9.7)
5%
Net impact of interest rate
2.3
(2.4)
-193%
to non
interest
income
movements
Costs, claims and change in
(46.0)
(34.9)
32%
reserves
Net insurance income
19.6
18.3
7%
Total operating costs
(6.3)
(6.0)
6%
PBT-contribution to the
13.3
12.3
8%
Group6
Total Regular income1
78.4
66.0
19%
18%
contribution
to the
Group's
PBT
25%
Market
share³
.
•
.
GWP2 up 12% yoy due to increased new business in 1H2022 and the low rate of
policy surrenders and lapses
Costs, claims and change in reserves up 32% yoy mainly due to increase in
production related expenses directly related in new business and higher claims
PBT- contribution to the Group up 8% yoy mainly driven by increased GWP
AUM at €524 mn down 6% in 1H2022 driven by the decrease in the FV of
investments held due to volatile market conditions
• Solvency ratio of 223% as at 30 June 2022
.
Plan in place to enhance value further by business growth supported by
digitisation and lean operating structure
Total regular income targeted to grow by 35% by 2025 (vs FY2021)
IFRS 174 Day 1 benefit on Group tangible equity estimated at c.€50 mn,
enhancing Group CET1 by c.50 bps 5
Drivers:
Highest # of individual customers in Cyprus with 70k life and 16k health customers
Pursue new profitable market segments
.
•
Explore opportunities in Occupational Pensions
•
Launch new products and investment funds
•
Widen target market
•
Upgrade customer experience (myeurolife portal)
6)
PBT is adjusted to exclude intercompany transactions between insurance companies
and the Bank
21
1)
Total regular income includes yearly renewable gross written premiums and
occupational pension contributions
4)
2)
Gross written premium
375
3)
As at 31 December 2021 based on market statistics
Adoption date 1 Jan 2023
5) Upon the upstreaming of dividend by the subsidiaryView entire presentation