Business development in the Czech Republic in 2009

Premiums increase by an outstanding 12.9%

In 2009, the Czech insurance companies in the Vienna Insurance Group wrote a total of EUR 1,603.29 million in premiums (2008: EUR 1,419.72 million), representing an increase of 12.9%. EUR 1,064.14 million of this premium volume was generated by Kooperativa, EUR 231.93 million by ČPP and EUR 263.39 million by PČS. The Group premiums included EUR 43.83 million from VIG Re. The volume of earned premiums was EUR 1,440.95.

The non-life area generated a premium volume of EUR 975.52 million in 2009 (2008: EUR 982.76 million), corresponding to an increase of 2.1% over the previous year based on the local currency. Kooperativa generated close to 80% of the premiums in the non-life area.

The life insurance premium income generated by the Vienna Insurance Group in the Czech Republic increased from EUR 436.97 million to EUR 627.77 million in 2009. This corresponds to an increase of 48.9% over the previous year based on the local currency.

Expenses for claims and insurance benefits

The Czech companies of the Vienna Insurance Group had expenses for claims and insurance benefits of EUR 999.53 million in 2009 (2008: EUR 806.31 million). This represented an increase in expenses for claims and insurance benefits (less reinsurance) of EUR 193.22 million, or 24.0%, due to the expansion of the scope of consolidation in the Czech Republic.

Operating expenses

The Czech companies of the Vienna Insurance Group posted operating expenses of EUR 359.10 million in 2009, including acquisition costs and less reinsurance commissions received, which represents an increase of 27.5% over the value of EUR 281.58 million the year before.

Czech Republic already contributing EUR 122.91 million to Group profit

The Vienna Insurance Group's 2009 profit before taxes of EUR 122.91 million earned in the Czech Republic represented an impressive 14.4% increase over the previous year, or an increase in Group profit before taxes of EUR 15.46 million over 2008.

Combined ratio of 91.2%

The Czech portion of the Vienna Insurance Group had a combined ratio after reinsurance (not including investment income) of 91.2% (2008: 92.2%). The combined ratio therefore improved once again relative to the previous year.