Business development in Romania in 2009

Premium growth

The Romanian companies in the Vienna Insurance Group wrote EUR 606.66 million in premiums in 2009 (2008: EUR 608.22 million). This corresponded to an increase of 15.0% based on the local currency. The volume of earned premiums was EUR 550.56 million in 2009.

The non-life segments generated a premium volume of EUR 519.43 million in 2009 (2008: EUR 569.16 million), corresponding to a 5.2% increase over the prior year based on the local currency.

In the life insurance area, the premium income earned by the Romanian Vienna Insurance Group companies increased 157.2% to EUR 87.23 million in 2009 (2008: EUR 39.06 million). This above-average increase in premiums was due to the strong growth experienced by the BCR insurance company, which was consolidated for the first time in 2009.

Expenses for claims and insurance benefits

The Romanian companies of the Vienna Insurance Group had expenses for claims and insurance benefits of EUR 385.54 million in 2009 (2008: EUR 395.44 million). This represented a decrease of EUR 9.90 million, or 2.5%, in Vienna Insurance Group expenses for claims and insurance benefits (less reinsurance).

Operating expenses

The Romanian companies of the Vienna Insurance Group had operating expenses (including acquisition costs and less reinsurance commissions received) of EUR 171.52 million in 2009 (2008: EUR 171.57 million),

Profit before taxes of EUR 24.19 million in Romania

The Romanian companies earned a profit before taxes of EUR 24.19 million in 2009. The decrease of 57.9% is due to the effect of the sale of the Unita insurance company on the previous year’s profit before taxes.

Combined ratio of 99.3%

The combined ratio was 99.3% in Romania this year (2008: 104.7%), which is below the 100 per cent mark. In the previous year, the companies set aside reserves for an expected growth in claims in the Romanian market.