Business development in Romania in 2012

Premiums written in Romania

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Premium development

Premiums written declined by 10.9% in Romania to EUR 448.25 million in 2012 (2011: EUR 503.08 million). Net earned premiums were EUR 371.25 million in 2012.

In the non-life line of business, premium income was EUR 334.05 million (2011: EUR 402.11 million), a decrease of 16.9%. The Romanian insurance market is currently experiencing intensive price competition. Vienna Insurance Group, on the other hand, continues to follow a risk/return-based price policy aimed at restructuring its portfolio.

The Romanian Vienna Insurance Group companies increased their life insurance premium income by 13.1% to EUR 114.21 million in 2012 (2011: EUR 100.97 million). Our outstanding cooperation with the Erste Group subsidiary BCR continues here, with BCR Life recording an increase in premiums of 17.3% via this distribution channel.

Expenses for claims and insurance benefits

The Romanian companies had EUR 308.92 million in expenses for claims and insurance benefits (2011: EUR 306.04 million).

Acquisition and administrative expenses

Vienna Insurance Group had acquisition and administrative expenses of EUR 111.32 million in Romania in 2012 (2011: EUR 136.18 million). This is 18.3% less than the previous year. This change was due both to the decrease in premiums, and the resulting decrease in acquisition costs, as well as the effects of a cost-cutting programme.

Loss of EUR 20.45 million

Due to a decrease in non-life premiums, combined with an adverse change in the level of motor vehicle claims, a loss of EUR 20.45 million was recorded in Romania in 2012.

Combined ratio of 119.2%

Due to an increase in the claims ratio, the combined ratio for Romania was 119.2% in 2012 (2011: 112.1%).

Vienna Insurance Group in Romania