Business development in the Other Markets segment in 2009

Premium growth

The Vienna Insurance Group wrote total gross premiums of EUR 211.98 million in the Other markets segment in 2009 (2008: EUR 218.11 million). This represented a slight decline of 2.8% for the German and Liechtenstein companies. The volume of earned premiums was EUR 207.64 million (2008: EUR 185.00 million), which was an increase of 12.2% compared to 2008.

In the non-life area, InterRisk Germany is the only company operating in the Other markets segment. This company generated EUR 71.42 million in premiums in 2009 (2008: EUR 69.40 million), representing an increase of 2.9% over the previous year.

In the life area, Vienna Insurance Group premium income in Germany and Liechtenstein declined by 5.5% to EUR 140.56 million in 2009 (2008: EUR 148.71 million).

Expenses for claims and insurance benefits

Expenses for claims and insurance benefits were EUR 153.64 million in the Other Markets segment in 2009. This represents an increase of 9.7% compared to the EUR 140.07 million in expenses for claims and insurance benefits (less reinsurance) in 2008.

Operating expenses

The Vienna Insurance Group had operating expenses of EUR 37.29 million in the Other Markets segment in 2009 (2008: EUR 21.16 million). These expenses were calculated including acquisition costs, and less reinsurance premiums received. This corresponds to a 76.3% increase in operating expenses compared to the previous year. The increase resulted from a change to the reinsurance programme.

Profit before taxes increases 34.3% in Other Markets segment

The Vienna Insurance Group companies in the Other Markets segment earned a profit before taxes of EUR 19.98 million in 2009. This corresponds to an increase of 34.3%, or EUR 5.11 million, over the previous year. The outstanding underwriting result achieved by InterRisk non-life had a positive effect on the profit before taxes.

Combined ratio of 83.8%

InterRisk had an excellent combined ratio of 83.8% in 2009, once again below the 100% mark as in the previous year (2008: 74.0%).