The participation of independent networks was significant in 2016.

The domestic sector of insurance agents & brokers is examined in a recent study of Infobank Hellastat S.A. According to Alexis Nikolaidis, Economic Research & Sectorial Studies Senior Analyst, 2016 was the first year of recovery for the insurance market, since premium income recovered after several years of decline, showing an increase of 4.6%, at €3.8bn. This increase resulted from: the increase in the value of life premiums by 6%, to €1.9bn, and the increase by 3% that was noted in premiums against losses, to the amount of €1.9bn.

Within this positive climate, the dominant trend was the increased demand for life plans, as well as group pensions and investment plans.

Naturally, the positive momentum of the market during 2016 also affected the sector of independent networks, since, according to a survey conducted by the Union of Greek Insurance Companies (EAEE), 59% of premium income came from agency and broker companies. Furthermore, 29.3% came from insurance advisors, 10.8% from direct sales, while only 0.9% through partnerships with banks.

Regarding 2017, according to more recent data for the first ten months, a slighter rise was noted, compared to last year, with total output rising by 1.6%, to €3.15bn.

Nevertheless, unfair competition practices are observed in the market, which are adopted by the banking institutions during the conduct of insurance operations, since, in many cases, the approach of the customer base is made from a dominant position of power. Characteristically, cases of examining applications for loans by customers have been reported, under the condition of entering into an insurance relationship with the latter, which is expressly prohibited according to a circular by the Bank of Greece

According to Mr. Nicolas Gouzelos, Chairman & CEO of Infobank Hellastat, The chronic structural problems of the national pension and insurance system, in conjunction with the exacerbation of the demographic problem of the country, are expected to boost the role of private insurance in Greece. Greek consumers, being concerned about the successive cuts in wages and pensions, as well as being skeptical about the sustainability of public insurance, will gradually shift to the private sector. Therefore, an increase has already become evident in the sales of life insurance policies, pension policies, hospital plans, etc.”

Financial analysis

In the study conducted by IBHS, an analysis takes place of the financial statements of 43 agency companies. The key conclusions drawn can be summarized as follows:

  • In 2016, Turnover amounted to €83.32m, having shown an increase of 2.9%, compared to the year before.
  • Total EBITDA rose by 31.4%, to €17.7m, while EBT recorded an increase of 12%, to €16.13m.
  • The EBITDA and EBT margins subsided to 12.2% and 10.2%, respectively.
  • Capital leverage remained high, having improved to 2.1 over 1.
  • Receivables were collected within a period of 8 months.

Furthermore, IBHS proceeded to the analysis of the financial statements of 43 broker companies. The key conclusions drawn can be summarized as follows:

  • In 2016, Turnover fell by 7.4%, at €47.12m.
  • Total EBITDA decreased by 19%, to €27.28m, while EBT recorded a drop of 21.2%, to €27.5m.
  • The EBITDA margin of the sample rose by one unit to 20.1%, while the corresponding ratio of pre-tax profits fell marginally to 15%.
  • Capital leverage increased slightly to 0.9 over 1.
  • Receivables were collected within a period of 4 months.

 For the full version of the sectoral studies please contact 210 8939017 or email to This email address is being protected from spambots. You need JavaScript enabled to view it. & This email address is being protected from spambots. You need JavaScript enabled to view it..

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