Business development in the Other CEE markets segment in 2009

The companies in the CEE countries of Georgia, Russia and Belarus were not yet included within the Vienna Insurance Group's scope of consolidation.

The markets of Albania, Estonia, Latvia, Lithuania and Macedonia were included in the Vienna Insurance Group's scope of consolidation for the first time in 2009.

Premium growth

The Vienna Insurance Group wrote total premiums of EUR 546.56 million in the Other CEE Markets segment in 2009 (2008: EUR 496.36 million). This corresponded to an increase of 10.1%. The volume of earned premiums was EUR 464.55 million (2008: EUR 378.78 million), which was an increase of 22.6% as compared to 2008.

The non-life area generated premium volume of EUR 355.60 million in the Other CEE Markets segment in 2009 (2008: EUR 344.49 million), representing an increase of 3.2% over the year before.

In the life area, the premium income of the Vienna Insurance Group companies in the Other CEE Markets segment increased 25.7%, to EUR 190.96 million, in 2009 (2008: EUR 151.87 million).

Expenses for claims and insurance benefits

Expenses for claims and insurance benefits were EUR 343.99 million in the Other CEE Markets segment in 2009 (2008: EUR 254.84 million). This represents an increase of EUR 89.15 million, or 35.0%, in Vienna Insurance Group expenses for claims and insurance benefits (less reinsurance) in the Other CEE Markets segment.

Operating expenses

The Vienna Insurance Group had operating expenses of EUR 166.49 million in the Other CEE markets segment in 2009 (2008: EUR 136.44 million). These expenses are calculated including acquisition costs and less reinsurance commissions received, and represents an increase of 22.0%.

Profit before taxes

The companies in the Vienna Insurance Group suffered a loss of EUR 23.75 million in the Other CEE Markets segment in 2009. This loss was primarily due to a special addition to the mathematical reserve resulting from a change in statutory rules in Croatia and precautionary measures due to the unstable economic situation in Ukraine.

Combined ratio of 110.7%

The Vienna Insurance Group’s combined ratio in the Other CEE markets segment still remains above 100%, with a value of 110.7% in 2009 (2008: 105.8%).