Premium growth
The Romanian companies in the Vienna Insurance Group wrote EUR 608.22 million in premiums in 2008 (2007: EUR 413.49 million). This corresponded to an increase of 47.1%. Earned premiums grew by 67.7% over the previous year, rising to EUR 528.17 million in 2008. Omniasig non-life achieved the highest organic growth in premiums among the Romanian companies, generating an increase of 20.1%, to raise its premium volume to EUR 316.65 million. The company’s premium growth was primarily due to good development in both the motor vehicle and non-motor vehicle non-life segments.
The non-life segment generated a premium volume of EUR 569.16 million in 2008 (2007: EUR 399.89 million), representing an increase of 42.3% over the previous year. Omniasig non-life generated around 52% of the premiums, and Asirom contributed EUR 203.71 million of this premium volume. Unita, which has already been divested, was only included in the first half of 2008.
The life insurance premium income earned by the Vienna Insurance Group’s Romanian companies increased by 187.1%, to EUR 39.06 million, in 2008 (2007: EUR 13.60). This above-average increase in premiums is due to the first-time consolidation of Asirom in 2008. Asirom contributed around 65% of the total premiums generated in the life insurance segment.
Expenses for claims and insurance benefits
The Romanian companies of the Vienna Insurance Group had expenses for insurance claims of EUR 395.44 million in 2008 (2007: EUR 208.51 million). This represented an increase of EUR 186.93 million, or 89.7%, in Vienna Insurance Group expenses for insurance claims (less reinsurance). The increase in expenses for insurance claims was due to the fact that the profit from the sale of Unita was used in Romania to form reserves relating to the more volatile situation that had developed in the market.
Operating expenses
The Romanian companies of the Vienna Insurance Group had operating expenses (including acquisition costs and less reinsurance commissions received) of EUR 171.57 million in 2008 (2007: EUR 113.91 million), which is an increase of 50.6% compared to the year before. This increase in operating expenses is consistent with the increase in premiums.
Profit before taxes increases to EUR 57.5 million in Romania
The Romanian companies earned a profit before taxes of EUR 57.46 million in 2008, achieving an increase in profit before taxes of EUR 52.9 million relative to the previous year. This result was also affected by the sale of the insurance company Unita.
Combined ratio of 104.7%
The combined ratio was 104.7% in Romania this year (2007: 100.9%), which is above the 100 per cent mark. The combined ratio of 104.7% can be explained by the reserves that the companies formed for expected claims growth in the Romanian market.
Compare to 2007