Business Development in Poland in 2008

Premium growth

The Vienna Insurance Group wrote a total of EUR 795.14 million in premiums in Poland in 2008 (2007: EUR 543.14 million), representing an increase of 46.4%. Earned premiums in 2008 grew by 54.5% over the previous year, to EUR 747.55 million.

The non-life segment generated premium volume of EUR 413.45 million in 2008 (2007: EUR 324.34 million), an increase of 27.5% over the previous year. InterRisk contributed a particularly impressive EUR 202.47 million to premiums, an increase of 26.1%. Compensa Non-life’s premium volume rose to EUR 164.87 million, a 29.0% increase over the year before, primarily due to strong growth in the motor vehicle own-damage segment.

The Vienna Insurance Group’s companies in Poland increased their life insurance premium income by an outstanding 74.4% to EUR 381.68 million in 2008 (2007: EUR 218.80 million). Benefia life generated close to three-quarters of the life insurance premiums (EUR 280.71 million), which is due to the merger of Benefia Life and Royal Polska.

Expenses for claims and insurance benefits

The Vienna Insurance Group had expenses for insurance claims of EUR 456.39 million in Poland in 2008 (2007: EUR 269.57 million). This represented an increase of EUR 186.81 million, or 69.3%, in Vienna Insurance Group expenses for insurance claims (less reinsurance) in Poland. The increase in expenses for insurance claims is due to the strong growth in premiums in the life insurance segment.

Operating expenses

The Polish companies had operating expenses of EUR 255.40 million in 2008 (2007: EUR 207.04 million). These expenses are calculated including acquisition costs and less reinsurance commissions received. Operating expenses increased 23.4% over the previous year.

Polish companies increase their profit before taxes by 39.0%

The Polish companies earned a profit before taxes of EUR 26.11 million in 2008. This was an increase in profit before tax of EUR 7.33 million, or 39%, compared to 2007.

Combined ratio of 98.7%

The combined ratio is 98.7% in Poland (2007: 99.2%), which is well below the 100 per cent mark. The combined ratio was 0.5 percentage points better than the previous year.