Business development in Slovakia in 2013

Premium development

Vienna Insurance Group wrote EUR 744.67 million in premiums in Slovakia in 2013 (2012: EUR 704.11 million), representing an increase of 5.8%. Net earned premiums were EUR 615.15 million, which represented an increase of 5.7%.

Non-life premiums represented 43.8% of the total premium volume of the Slovakian companies in 2013. Premiums written were at approximately the same level as the previous year, rising by 0.6% to EUR 326.10 million.

In the life insurance sector, which represents 56.2% of total premium volume, the Slovakian VIG companies increased their premium income by 10.2% to EUR 418.57 million (2012:EUR 379.95 million). All of the Group companies contributed to this significant increase, with the growth in bank distribution through local Erste Group subsidiaries contributing to a particularly large increase of 30.7% for PSLSP.

Expenses for claims and insurance benefits

Expenses for claims and insurance benefits (less reinsurance) were EUR 511.41 million in 2013. This increase of 11.3% over the previous year was due to growth in life insurance, particularly in the single-premium area.

Acquisition and administrative expenses

VIG recorded EUR 88.10 million in acquisition and administrative expenses in Slovakia in 2013 (2012: EUR 90.07 million). This decrease of 2.2% was due to an increased share of single-premium policies in the overall life portfolio.

Profit before taxes

The profit before taxes of the Slovakian companies fell from EUR 56.89 million in 2012 to EUR 55.26 million in 2013, representing a drop of 2.9%. One reason for the decline is the absence of positive one-time effects that appeared in the underwriting result for 2012 but are no longer present in 2013.

Combined ratio

The Vienna Insurance Group combined ratio rose in Slovakia from 91.6% in the previous year to 93.6% in financial year 2013, in part due to the positive one-time effects in 2012 that were mentioned above.

Vienna Insurance Group in Slovakia