Polskie Towarzystwo Reasekuracji (PTR), Poland’s only re-insurer, has ambitious plans.
“Today, we are one of the three biggest re-insurers in our region. In several years’ time, we want to become middle-sized insurance group”, Marek Czerski, PTR CEO said.
The company has 160 partners, including 90 percent outside Poland. In the first half of the year, PTR raised PLN 142m (EUR 38.5m) of premiums. The majority of it is collected in Lithuania, Bulgaria, Latvia, Russia and Ukraine. The company competes in Western Europe with world’s giants including Swiss Re and Munich RE.
“In the West, administration costs amount to about 20 percent of the premium while in our company, it is only about 4 percent. That’s why we can offer better prices and work even at small contracts”, Marek Czerski said.
Despite good financial situation, the company plans an IPO this year.
“We have enough funds to operate at present level but we have too little to develop. The funds raised on the WSE will be spent to increase our capacity i.e. the ability to cover risks. We will also need them for acquisitions of insurance and re-insurance companies planned in the region. Besides, it’s easier for a listed company to get higher rating”, Marek Czerski said.
Today, S&P evaluates PTR at BBB-.
The CEO refused to say what company is PTR’s potential acquisition target. He only said that there are several insurance companies which could be bought immediately. In two years’ time, the company could also buy a re-insurer. In Poland, PTR wants to buy one of its main clients: Polskie Towarzystwo Ubezpieczen insurer (today it has 22.71 percent, the rest is controlled by Ciech chemical company, Techwell and Investa).
“Companies from our part of Europe are in PTR’s reach but it’s a pity they hadn’t come up with these ideas 5-7 years ago”, Marcin Broda, an insurance market analyst commented.
(PLN 1 = EUR 0.271)