Property and casualty contributed 48.3% of total premium volume in 2012. Life insurance premiums primarily rose as a result of greater demand for single-premium products in Poland, raising the share of life insurance to total premiums to 47.7% for the financial year. Health insurance contributed 4.0% of premiums, a level unchanged from the previous year.
In the property and casualty area, Vienna Insurance Group companies generated Group premiums of EUR 4,673.44 million in 2012 (2011: EUR 4,579.30 million), representing an increase of 2.1%. Austria and some countries in the Remaining Markets segment made particularly large contributions to this increase. Austria recorded an increase of 8.4%. Georgia, Macedonia, Turkey, Ukraine and Hungary even achieved growth rates in the double-digit percentage range. 59.3% of property and casualty premiums were generated outside Austria.
Life insurance rose by a highly significant 17.2% to EUR 4,620.72 million due to strong demand in the single-premium area, particularly in Poland. VIG companies in Poland, for example, generated EUR 1,024.98 million in premiums, a significant increase of close to 200%. Romania also contributed to this development with a 13.1% increase in life insurance premiums to EUR 114.21 million. The Baltic States, Bulgaria, Ukraine and Lichtenstein also recorded growth rates in the double-digit percentage range. This further increased the share of Group life insurance premiums generated outside Austria to 59.2% in 2012.
The increase to 15 years in the minimum tax lock-in period for single-premium products continues to have a negative effect in Austria, slowing the growth of the entire line of business.
Vienna Insurance Group wrote EUR 391.51 million in premiums in the health insurance segment, an increase of 8.7%. This growth was primarily due to a large increase in premiums written in Georgia. Only Austria and Georgia generate enough health insurance premiums to make a significant contribution to total premiums.
Expenses for claims and insurance benefits
Vienna Insurance Group recorded EUR 2,656.18 million in expenses for claims and insurance benefits in the property and casualty area in 2012, representing a slight increase of 4.9%. Expenses in the life insurance segment were EUR 4,613.57 million, 24.8% greater than the previous year due to the increase in premiums. In the health insurance segment, expenses for claims and insurance benefits were EUR 320.61 million (2011: EUR 308.91 million).
Acquisition and administrative expenses
Vienna Insurance Group recorded acquisition and administrative expenses of EUR 1,130.95 million in the property and casualty business in 2012 (2011: EUR 1,080.68 million). In life insurance, these expenses rose by 1.6% to EUR 638.69 million. In health insurance, acquisition and administrative expenses were EUR 45.25 million, a 4.0% increase over the previous year's value of EUR 43.51 million.
Profit before taxes
Property and casualty contributed EUR 330.48 million or 56.3% of Vienna Insurance Group profits, which were a total of EUR 587.41 million.
In the life insurance area, the Group generated a profit before taxes of EUR 225.71 million, representing a decrease of 5.9% compared to 2011. This reduction is due to a decrease in policy surrenders and the portfolio changeover in the Czech Republic, which is close to completion. As a result, life insurance accounts for 38.4% of total profits.
Health insurance contributed EUR 31.22 million to Vienna Insurance Group profits.