Strong growth in premiums
The companies in the Vienna Insurance Group wrote gross premiums of EUR 3,695.37 million in Austria in 2007, representing an increase of EUR 260.64 million, or 7.6%, over the previous year. Donau Versicherung AG’s outstanding premium growth of 4.6% made a strong contribution to this increase. Net earned premiums rose from EUR 3,100.39 million in 2006 to EUR 3,304.49 million in 2007, representing an increase of 6.6%.
EUR 1,487.13 million, or 40.2% of total premiums, were written in the property/casualty area. This represented an increase of 5.3% compared to 2006. The non-motor vehicle classes in the Austrian companies generated particularly large increases in premium volume in this area. Life insurance generated EUR 1,901.64 million, or 51.5% of total premium volume, with the Vienna Insurance Group recording a 10.2% increase in premiums in Austria, despite high volatility in the single- premium area. Health insurance generated EUR 306.60 million, representing an increase of 2.9% over the previous year (2006: EUR 297.90 million).
Expenses for insurance claims
Expenses for insurance claims were EUR 3,258.25 million in 2007. This meant a moderate increase of EUR 362.76 million, or 12.5%, in expenses for the insurance claims allocated to the Vienna Insurance Group in Austria, in spite of the large number of storms recorded in 2007. The Vienna Insurance Group in Austria has demon strated that it is a reliable partner in the case of storms by providing exceedingly fast claims pro cessing. It was also possible to report claims over the Internet (www.wienerstaedtische.at and www.donauversicherung.at).
Operating expenses
After including commissions and other acquisition costs and deducting reinsurance commissions received, the three consolidated Austrian companies of the Vienna Insurance Group had operating expenses of EUR 577.93 million in 2007, representing a moderate increase of 0.3% over the previous year.
Financial result rises above EUR 244 million
The Austrian companies of the Vienna Insurance Group generated a financial result of EUR 848.34. This represents an impressive increase of EUR 244.60 million, or 40.5%, in the financial result compared to the previous year.
Record profits of EUR 286.8 million
The Vienna Insurance Group in Austria reported a growth in profit before tax of 37.2%, an increase of EUR 77.75 million, compared to 2006.
Combined ratio of 93.8%
The combined ratio – a key insurance industry indicator – for the Austrian portion of the Vienna Insurance Group was once again well below 100%. To be precise, the combined ratio of the Austrian companies after reinsurance (not including investment income) was 93.8% in 2007 (2006: 96.1%). This positive result was largely due to preventative measures implemented by the Group that led to a reduction of losses.
