The companies in the CEE countries Albania, Estonia, Georgia, Latvia, Lithuania, Macedonia, Russia and Belarus, and the Ukrainian company UIG were not yet included in the Vienna Insurance Groups scope of consolidation.
The newly acquired companies Erste osiguranje Vienna Insurance Group d.d.1 (ESO) and Erste Vienna Insurance Group Biztosító Zrt.1 (ESB) have been included in the Vienna Insurance Group reporting entity since 1 October 2008.
Premium growth
The Vienna Insurance Group wrote total premiums of EUR 496.35 million in the Other CEE markets segment in 2008 (2007: EUR 383.77 million). This corresponded to an increase of 29.3%. EUR 378.78 million in earned premiums was generated (2007: EUR 300.32 million), which was an increase of 26.1% compared to 2007.
The non-life segment generated a premium volume of EUR 344.49 million in the Other CEE markets segment in 2008 (2007: EUR 258.85 million), representing an increase of 33.1% over the previous year.
The life insurance premium income generated by the Vienna Insurance Group companies in the Other CEE markets segment increased 21.6%, to EUR 151.87 million, in 2008 (2007: EUR 124.92 million). The top contribution came from Hungary, which recorded an increase of 31.1%.
Expenses for claims and insurance benefits
The Other CEE markets segment incurred expenses for insurance claims of EUR 254.84 million in 2008 (2007: EUR 199.78 million). This represented an increase of EUR 55.06 million, or 27.6%, in Vienna Insurance Group expenses for insurance claims (less reinsurance) in Bulgaria, Croatia, Serbia, Turkey, Ukraine and Hungary.
Operating expenses
The Vienna Insurance Group had operating expenses of EUR 136.44 million in the Other CEE markets segment in 2008 (2007: EUR 114.22 million). These expenses are calculated including acquisition costs and less reinsurance commissions received, and corresponded to an increase of 19.5%.
Profit before taxes
Due to the general deterioration in conditions, the Vienna Insurance Group companies in the Other CEE markets segment suffered a loss of EUR 14.41 million in 2008.
Combined ratio of 105.8%
The Vienna Insurance Group’s combined ratio in the other CEE markets segment was 105.8% in 2008 (2007: 102.8%) and remains currently above 100%.
1 New company name subject to approval by the appropriate executive bodies of the Company and registration of the amendment to the articles of association by the local authorities.
Compare to 2007