A bull mortgage market drives Europa

The Association of Polish Banks (ZBP) estimates that Polish banks will grant over 370,000 mortgages this year, for a total value of zł.54 billion, some zł.12 million more than last year. Experts from capital group GK Europa - which comprises TU Europa (non-life insurance) and TU na Życie Europa (life insurance) - say the amount will be even higher, reaching zł.54 million.

Between Q1 2005 and Q4 2006, the availabilty of apartments dropped by a third and the average size of an apartment bought with a mortgage fell from 60 sqm at the beginning of 2006 to 45 sqm at the end of the year. Such is the demand for apartments that Poles are ready to pay more for less.

Thanks to the dynamic increase of the real-estate market, products connected with it constituted some 87 percent of GK Europa's premium growth at the end of last year.

"Europa benefits from this growth but also contributes to [it], thanks to its wide and often innovative selection of products. The firm's strengthening position, as a leader of bancassurance, is connected with a successful diversification of our product portfolio and distribution channels," says Jacek Podoba, managing director at TU Europa.

"Apart from mortgages, the company offers insurance for such products as credit cards, savings and investment products," adds Podoba.

According to Podoba, Q1 2007 - which marks the start of the firm's 12th year of operations - brought great financial results compared with the previous years. Premiums rose by 120 percent in Q1, and amounted to zł.87.6 million. Net profit was 21 percent higher than in Q1 2006, and reached zł.15.4 million.