PLN 1.8 billion

PLN 385 million

98%

PLN 15.3 billion

Claims and benefits paid out in 2022:

• Insurance industry total: PLN 44.4 billion, of which PLN 18.9 billion in life insurance (Section I) and PLN 25.5 billion in non-life insurance (Section II)
  o ERGO Hestia Group: PLN 4.2 billion (9.5% of total market payouts), of which PLN 0.28 billion (0.6%) in life insurance (Section I) and PLN 3.9 billion (8.8%) in non-life insurance (Section II)

In our core activity, we create direct effects, including job creation and generation of income. Across our value chain, we establish cooperation, use market goods and services, and thus have an impact on inducing value in the supply chain. These are the indirect effects of our activities, which arise in various sectors of the economy. Our employees and associates also generate spending, thereby stimulating demand. This drives growth in the wider economy through a multiplier effect, also known as induced growth.

The economic impact of a company on its environment is analysed in terms of the added value it creates. The indirect and induced impacts are then calculated on the basis of the models describing the structure of the economy, including the input-output model and the input-output table.

Therefore, the unique characteristics of the insurance industry also affect the activities of other market participants and influence the decisions they make. Stability, associated with the ability to reduce or eliminate certain risks, is reflected in the development of their activities and the execution of investments. As a result, jobs are created and income is generated. This is considered as a wider economic impact of the company, which can be seen in the long term. It is relevant to the economy as a whole, especially during periods of increased uncertainty.

The company’s impact analysis is also considered in terms of its social and fiscal effects. The key indicators used in this perspective are associated with job creation and increases in household income (in three ways: directly through wages and bonuses; indirectly for suppliers of products and services; and as an induced effect throughout the economy). An increase in household incomes has an important effect on domestic consumption, which results in taxes flowing into the state budget and causes an increase in global production.

Maintain the ratio of >90% of key suppliers and contractors who have ratified the Code of Conduct of Suppliers and Contractors of the ERGO Hestia Group

goal achieved

97%

Direct impact refers to the employment and value added generated within the organisation’s structures and in connection with its direct operations.

Value added can be calculated by using different approaches. It should correspond to the excess of a company’s income above its costs and should be reflected in the directions of its distribution to employees, who receive remuneration for their work; to capital providers, who receive interest; to shareholders, who receive dividends; to the national budget, which receives taxes; and to the company, which retains profit. In this report, gross value added is defined as the sum of employee remuneration amounts and profit before tax. The direct employment effect is defined as the number of employees of the ERGO Hestia Group, in full-time equivalents.

Indirect effect is the result of the ERGO Hestia Group’s expenditure on the purchase of products and services used in its core business. These purchases drive production levels at suppliers and business partners, which in turn leads to increased employment and value added by them. Then indirect income and employment effects arise, which are calculated by using input-output tables that reflect the interdependencies between different sectors of the economy and show how the products of one sector are used by other sectors of the economy. The indirect income and employment effects are calculated on the basis of input-output tables, using average labour productivity and value added rates per employee. At the time of the study, the most recent input-output tables were included in the “Input-output balance at current base prices in 2015” published by Statistics Poland in 2019. The balance is published every 5 years. The data from the balance publication were adjusted with the inflation rate, while added value was adjusted by using the GDP deflator.

Induced impact is driven by the demand generated in the economy by people employed by the company and by its suppliers and business partners. These individuals purchase goods and services for the remuneration they receive for their work, which increases output, employment and value added throughout the economy. The induced impact is calculated by adding up the value of remuneration paid to employees whose work is directly and indirectly related to the activities of the company being analysed, and then applying the multiplier effect to determine the increase in employment and value added.

Overall impact is the sum of the direct, indirect and induced effects. The multiplier is calculated when the sum of the indirect and induced effects is divided by the direct effect. The multiplier indicates how many additional jobs are generated in the economy by one job in the company and how much additional value added is generated in the economy by one unit of value added generated directly in the company.

The social and fiscal impacts were calculated on the basis of information provided by the Companies and using publications from Statistics Poland. The analysis presented in this report focuses on ERGO Hestia Group companies and refers to their operating activities in the calendar year 2022. The calculations used information such as employment, tax and financial data of ERGO Hestia Group companies for 2022, as well as publications of Statistics Poland and the Polish Chamber of Insurance.