Business development in the Czech Republic in 2011

Premiums written Czech Republic

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Premium increase of 5.3%

Vienna Insurance Group companies in the Czech Republic wrote EUR 1,848.86 million in premiums in 2011 (2010: EUR 1,756.54 million), representing an increase of 5.3%. Net earned premiums were EUR 1,722.30 million in 2011.

The non-life area generated premium income of EUR 999.38 million in 2011 (2010: EUR 1,004.35 million), corresponding to a slight decrease of 0.5% compared to the previous year. Kooperativa generated approximately 76.3% of premiums in the non-life area.

In the Czech life insurance segment, premium income generated by the Vienna Insurance Group increased from EUR 752.19 million to EUR 849.48 million in 2011. As a result of this gain of 12.9% over the previous year, life insurance was once again the growth engine in 2011. The sharp increase was primarily due to good bank distribution and good performance in the distribution of Kooperativa’s flexible product line.

Expenses for claims and insurance benefits

The Czech companies had expenses for claims and insurance benefits of EUR 1,195.54 million in 2011. This was an increase of EUR 71.56 million over 2010, or 6.4%.

Acquisition and administrative expenses

Vienna Insurance Group reported EUR 425.42 million in acquisition and administrative expenses in the Czech Republic in 2011. This was an increase of 7.6% over the acquisition and administrative expenses of EUR 395.44 million reported in 2010.

Strong growth of 13.4% in profit before taxes

The Czech companies contributed EUR 189.72 million to total profits in 2011 (2010: EUR 167.33 million). This raised the profit before taxes by outstanding 13.4% over the previous year. Successful combination of back-office areas led to a satisfying decrease in administrative expenses.

Combined ratio of 91.6%

The combined ratio of 91.6% was well below the figure of 93.3% in the previous year. Following the high charges incurred due to natural catastrophes in 2010, the Czech companies were able to significantly lower their claim ratio again in the year just ended.

Vienna Insurance Group in the Czech Republic