Business development in the Czech Republic in 2012

Premiums written in the Czech Republic

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Premium volume of EUR 1,795.58 million

Vienna Insurance Group companies in the Czech Republic wrote EUR 1,795.58 million in premiums in 2012 (2011: EUR 1,823.89 million), which was 1.6% below the previous year value. Net earned premiums were EUR 1,453.99 million in 2012.

The non-life sector generated premium income of EUR 958.46 million in 2012 (2011: EUR 986.85 million), representing a decrease of 2.9% compared to the previous year. This decrease is primarily due to increased competition in motor vehicle liability insurance. Kooperativa generated approximately 76.8% of premiums in the non-life area.

Life insurance generated EUR 837.11 million in premiums in 2012, approximately the same level as the previous year. Expirations in the mixed life insurance portfolio were compensated by good growth in unit-linked life insurance.

Expenses for claims and insurance benefits

The Czech companies had expenses for claims and insurance benefits of EUR 1,001.92 million in 2012. This was EUR 28.84 million less than 2011, or a drop of 2.8%.

Acquisition and administrative expenses

Vienna Insurance Group reported EUR 343.26 million in acquisition and administrative expenses in the Czech Republic in 2012. This represents a decrease of 2.4% over the acquisition and administrative expenses of EUR 351.71 million reported in 2011.

Increase of 4.2% in profit before taxes

The Czech companies contributed EUR 194.97 million to total profits in 2012 (2011: EUR 187.11 million). This raised the profit before taxes by 4.2% over the previous year. The increase clearly shows the success achieved by focusing on profitable growth in a difficult market environment.

Combined ratio of 87.3%

The combined ratio of 87.3% was below the figure of 88.4% in the previous year.

Vienna Insurance Group in the Czech Republic