Outstanding premium increase of 7.9%
The Czech insurance companies in the Vienna Insurance Group wrote a total of EUR 1,130.47 million in premiums in 2007 (2006: EUR 1,047.99 million), thereby achieving an increase of 7.9%. This led to earned premiums of EUR 918.96 million, corresponding to an 11.0% increase.
Premium volume in the non-life area was EUR 838.14 million for the year 2007 (2006: EUR 788.48 million), corresponding to an increase of 6.3% over the previous year. Kooperativa contributed EUR 712.06 million of this amount and ČPP EUR 126.08 million, with Kooperativa increasing its premiums by 5.7% over the previous year and ČPP even managing to achieve an increase of 9.5% in its non-life insurance premiums.
In the life insurance area, Vienna Insurance Group premium revenues in the Czech Republic rose 12.6% in 2007, from EUR 259.51 million to EUR 292.33 million. The two Czech companies achieved outstanding increases in premiums in the single-premium product area in particular. Innovative products in the unit-linked life insurance area also helped contribute to this increase.
Expenses for insurance claims
The Czech companies in the Vienna Insurance Group incurred EUR 631.35 million in expenses for insurance claims in 2007 (2006: EUR 595.84 million). This represented an increase in expenses for insurance claims (less reinsurance) of EUR 35.51 million, or 6.0%. The Vienna Insurance Group processed 553,000 loss events in the Czech Republic in 2007. Hurricane Kyrill in particular led to a large number of incidents of loss at the beginning of 2007.
Operating expenses
After including commissions and other acquisition costs and deducting reinsurance commissions received, the two Czech companies in the Vienna Insurance Group had operating expenses of EUR 218.88 million in 2007, representing an increase of 15.1% over the EUR 190.1 million recorded the year before.
Financial result
The Vienna Insurance Group achieved a financial result of EUR 44.66 million in the Czech Republic, including profits from shares in affiliated and associated companies, representing an increase of 8.6% over the financial result of EUR 41.13 million in the previous year.
Czech Republic already contributing EUR 73.81 million to Group profits
The Vienna Insurance Group earned a profit before taxes of EUR 73.81 million in the Czech Republic in 2007, representing a noteworthy increase of 24.8%, or EUR 14.69 million, over the profit before taxes in 2006.
Combined ratio of 93.7%
The combined ratio of the Czech portion of the Vienna Insurance Group was well below 100% in 2007. To be precise, the combined ratio of the companies in the Czech Republic after reinsurance (not including investment income) was 93.7% in 2007 (2006: 97.3%).
