National Insurance: 5.6% increase in pre-tax profits to € 90.5 million in 2021

Ethniki Asfalistiki completed with impressive profitability in 2021, during which it saw the profits before taxes amount to € 90.5 million (not including the cost of voluntary departure of staff amounting to € 21.2 million) against € 85.7 million. in the 12 months of 2020, increased by 5.6%.

Including the cost of voluntary staff turnover, pre-tax profits amounted to € 69.3 million, with net profit after taxes to € 51.9 million, compared to € 66.7 million in 2020. Afterwards from taxes profits of the National Insurance Group amounted to € 52.0 million in 2021 compared to € 68.4 million in 2020.

The production of insurance premiums started equally upwards, with the total registered premiums amounting to € 689.6 million in 2021 compared to € 669.0 in 2020, recording an annual increase of 3.1%, with a remarkable contribution of the new U / L products without guarantee. Of the total production, € 518.6 million related to Life Insurance (2020: € 493.8 million) and € 171.0 million Loss Insurance (2020: € 175.2 million). The market share of the Company as at 31.12.2021 amounted to 14.9%.

The gross written premiums of the Individual Life and Unit-Linked Sector (including investment contracts), showed an increase compared to 2020, amounting to € 410.2 million (2020: 393.1 million), while the production of the Group Life Sector (including investment contracts), amounting to € 108.4 million (2020: 100.7 million)

A slight decline was observed in the General Insurance Sectors, with the gross written premiums amounting to € 171.0 million compared to € 175.2 million in 2020, coming mainly from the Automotive Sector (€ 70.3 million in 2021 versus € 74 , 1 million in 2020), but also the Fire Sector (€ 66.6 million in 2021 compared to € 73.2 million in 2020). The above decrease was partially offset by increased production of the Other General Sectors (€ 34.2 million in 2021 compared to € 27.9 million in 2020), which comes mainly from the General Liability Sector.

The above performance confirms the ability of the Company’s sales networks to cope and grow in unprecedented adverse conditions as increased production was presented by both the Corporate Production Network and the network of Agents / Brokers, as well as the branch network of the National Bank (Bancassurance), the whose production amounted to € 185.7 million, increased by 3.6% compared to 2020.

Management and Disposal Expenses amounted to € 105.0 million in the 12 months of 2021 compared to € 87.8 million in the 12 months of 2020, increased by € 17.2 million, an increase mainly due to the cost of the voluntary retirement program of € € 21.2 million, which was approved by the Board of Directors of the Company on 29.12.2021. This program is estimated to improve the competitiveness of the Company and will create development opportunities for existing staff. 116 employees participated, while the annual reduction of payroll costs is estimated at € 7.8 million.

Supervisory Funds

The increase of the Company’s regulatory capital in 2021 was also impressive, with the solvency capital requirement ratio at 31.12.2021 reaching 221% using the transitional measures for technical provisions, compared to 172% on 31.12.2020. It is also noted that the Company exceeds the solvency capital requirements and without the use of transitional measures for the technical provisions, with the solvency capital requirement ratio amounting to 184% (31.12.2020: 132%)

The increase in the solvency capital requirement ratio is mainly due to the Company’s profitability and the conclusion of a subordinated loan with the National Bank (“ETE”) amounting to € 125 million, which was classified as a Tier II regulatory capital.

New Page in the History of the Company

As of March 31, 2022, National Insurance now goes through a new chapter in its long history as on this date the National Bank completed its divestiture obligation, transferring 90.01% of the Company’s share capital to CVC Capital Partners’ Fund VII (“CVC” The transaction included the sale and transfer of all the Company’s shares from the EIB to the newly established subsidiary of CVC: Ethniki Holdings S.à.rl, and the purchase by the EIB of 9.99% of the share capital of Ethniki Holdings S.à. .rl

The above transfer followed the approval of the European Commission on February 25, 2022, as well as the supervisory authorities of the countries in which the Company operates and its subsidiaries.

Corporate social responsibility

National Insurance, with the aim of creating a positive social footprint, implements a multilevel strategy of Corporate Social Responsibility that includes actions concerning Society, the Environment, Culture and Employees.

During the pandemic, the Company took all the necessary measures to protect its employees and policyholders while, at the same time, it proceeded with a subsidy of insurance premiums of the National Public Health Organization.

True to its traditions, Ethniki Asfalistiki also supported the bodies and institutions that support with their action, vulnerable social groups such as the Child’s Smile, the Association “Together for the Child”, the SOS Children’s Villages, the Society for the Protection of Spasticity, the organization “Ark of the World”, the Love Center of Elefsina “Friendly Nest”, the Foundation “I Pammakaristos”, the Association of Parents and Guardians of Children with Neoplastic Diseases “I PISTI”, the Center for Creative Employment “Children” with the Center for Special People “I HARA”, the “Make a Wish” of Greece, the Association “Child and Creation” and the Hellenic Society for the Protection & Rehabilitation of Disabled Persons-ELEPAP, the Shelter for Women “Agios Alexandros”, the Association “Elpida Manas” , the organization “Emfasis Foundation”, the non-profit Association “Force of Life”, the organization Coeurs pour Tous Hellas, the organization “Doctors Without Borders” and the Reception & Solidarity Center of the Municipality of Athens (KYADA).

In addition to all the above, the Company supported the operation of the Hellenic Children’s Museum, the Olympic Museum of Thessaloniki, the Non-Profit Company “ALLIANCE FOR GREECE” and the Greek Scout Corps.

Regarding the catastrophic fires of the summer, the Company “declared” its presence on the side of society and announced to the competent bodies of the state, its intention to bear part of the reforestation expenses in any area deemed appropriate. In addition, it proceeded with a subsidy of insurance premiums of the Forest Fire Protection Volunteers of Attica and financially supported the Volunteers of the Forest Fire and Rescue Forces / Rodopolis Ladder.

Finally, Ethniki Asfalistiki is firmly responsible for the operation of the Historical Memory Space 1941-1944 and the Art Space “STOART KORAI”, in Korai 4.

As a culmination of the above actions, the Company received a Bronze distinction in the context of “CR INDEX 2020-2021”, which is the most important indicator for measuring the performance of Corporate Responsibility of companies.

Statement of the CEO Mr. Stavros Konstantas

“Ethniki Asfalistiki and its Group quickly showed reflexes and differentiated their strategy with the outbreak of the pandemic, managing, despite the adverse conditions, to maintain their growth momentum, achieving significant productive and financial results reflected in the total 20 financial performance21 .

In the domestic market, where we are a leading force, we have carried out, since December 2020, a substantial renewal of our products, while we are already planning new actions in the context of the digital transformation of the Company with emphasis on the modernization of the IT environment.

In a new and changing environment we are called to face the ever-evolving competition, to accelerate the digital and corporate transformation, to develop the talent and skills of our people and to offer new opportunities in the joint effort to provide even better insurance services. ”