Business development in the Czech Republic
in 2010

Premiums written Czech Republic

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Premium increase of 9.6%

The Czech companies of the Vienna Insurance Group wrote group premiums of EUR 1,756.54 million in 2010 (2009: EUR 1,603.29 million), thereby achieving a 9.6% increase. Kooperativa contributed EUR 1,105.91 million, ČPP EUR 249.67 million, PČS with EUR 363.98 million and VIG RE EUR 36.98 million to this premium volume. The earned premium volume rose by 12.1%, to EUR 1,615.57 million.

In the non-life area, premium income in 2010 was a total of EUR 1,004.35 million (2009: EUR 975.52 million) corresponding to an increase of 3.0% over the previous year. Kooperativa generated about 77% 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 627.77 million to EUR 752.19 million in 2010. With gains of 19.8% over the previous year, life insurance proved to be a growth engine.

Expenses for claims and insurance expenses

Expenses for claims and insurance expenses incurred by the Czech companies of the Vienna Insurance Group amounted to EUR 1,123.98 million in 2010, up EUR 124.45 million from 2009. This is equivalent to an increase of 12.5%.

Operating expenses

The Vienna Insurance Group’s Czech companies incurred operating expenses of EUR 395.44 million in 2010, including acquisition expenses but less reinsurance commissions received, which represents an increase of 10.1% over the value of EUR 359.10 million in 2009.

Strong growth in profit before taxes of 36.1%

In the Czech Republic, the Group increased its profit before taxes by an excellent 36.1% over the previous year. In 2010, the Czech companies thus contributed EUR 167.33 million to the total results (2009: EUR 122.91 million).

Combined ratio of 93.3%

At 93.3%, the combined ratio of the Vienna Insurance Group in the Czech Republic Group was higher in 2010 than the figure of 91.2% of the previous year, primarily as a result of increased claims.

Vienna Insurance Group in the Czech Republic*