Property and casualty contributed 50,1% of total premium volume in 2013. The share of life insurance premiums to total premium volume declined compared to the previous year to 45.6%. Health insurance contributed 4.3% of premiums, a level unchanged from the previous year.
In the property and casualty area, Vienna Insurance Group companies generated Group premiums of EUR 4,618.38 million in 2013 (2012: EUR 4,673.44 million), representing a 1.2% drop in premiums in this area. This decrease was mainly due to the intentional reduction in motor vehicle business in Romania and Italy, as well as the intense competitive situation that still persists in the motor vehicle market in the Czech Republic. In Poland, although falling new car sales led to a loss in the motor vehicle lines of business, underwriting guidelines were tightened at the same time to achieve higher price margins.
The significant 8.3% drop in life insurance to EUR 4,202.37 million was primarily due to the developments in Poland and Romania. The drop in Poland was due to the intentional reduction in short-term single-premium business. In Romania, premiums fell due to elimination of a group insurance product during the realignment of BCR Life. In Slovakia and the Remaining Markets segment, on the other hand, life insurance premium volume rose by more than 10%.
Vienna Insurance Group wrote EUR 397.82 million in premiums in the health insurance segment, an increase of 1.6%. 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 2,714.11 million in expenses for claims and insurance benefits in the property and casualty area in 2013, representing an increase of 2.2%. This increase was due to the negative special effects from Romania and Italy that were previously mentioned above. Natural disasters also had an effect, but the effect was smaller. Expenses in the life insurance segment were EUR 4,162.85 million, 9.8% less than the previous year due to the decrease in premiums. In the health insurance segment, expenses for claims and insurance benefits were EUR 333.59 million (2012: EUR 320.61 million).
Acquisition and administrative expenses
Vienna Insurance Group recorded acquisition and administrative expenses of EUR 1,169.69 million in the property and casualty business in 2013 (2012: EUR 1,130.95 million). This increase is the result of a greater focus on the non-motor vehicle lines of business and the higher commission expenses associated with them. In the life insurance segment, the increase of 1.6% to EUR 649.74 million was due to a satisfying increase in new production in the regular premium product area. In health insurance, acquisition and administrative expenses were EUR 46.89 million, 3.6% higher than the figure of EUR 45.25 million in the previous year.
Profit before taxes
Property and casualty contributed EUR 57.27 million or 16.1% of Vienna Insurance Group profits, which were a total of EUR 355.14 million. The Group generated a profit before taxes of EUR 262.30 million in the life insurance area. This means that life insurance accounts for 73.9% of total profits. Health insurance contributed EUR 35.57 million to Vienna Insurance Group profits.