Business development in the Czech Republic in 2013

Premium development

Vienna Insurance Group companies in the Czech Republic wrote EUR 1,762.08 million in premiums in 2013 (2012: EUR 1,795.58 million), which was 1.9% below the level of the previous year. When adjusted for exchange rate effects, however, premium income rose by 1.4%. Net earned premiums were EUR 1,429.56 million in 2013.

The non-life sector generated premium income of EUR 891.95 million in 2013 (2012: EUR 958.46 million). This was a drop of 6.9% compared to the previous year, and resulted from a negative exchange rate effect of -3.0% and the ongoing difficult competitive situation in the motor vehicle insurance market.

Life insurance premiums recorded an increase of 3.9% over the previous year to EUR 870.13 million. Unit-linked and index-linked products enjoyed particularly high demand.

Expenses for claims and insurance benefits

The Czech companies had expenses for claims and insurance benefits of EUR 1,008.52 million in 2013.This was an increase of EUR 6.60 million over 2012, or 0.7%.

Acquisition and administrative expenses

Vienna Insurance Group reported EUR 345.82 million in acquisition and administrative expenses in the Czech Republic in 2013. This was an increase of 0.7% over the acquisition and administrative expenses of EUR 343.26 million reported in 2012.

Profit before taxes

The Czech companies contributed EUR 197.82 million to total profits in 2013 (2012: EUR 194.97 million). The profit before taxes therefore recorded an increase of 1.5% in spite of the drop in premium volume, clearly showing the success of the focus on efficiency improvements.

Combined ratio

The combined ratio was an excellent 91.5% in 2013 (2012: 87.3%), in spite of significant severe weather claims.

Vienna Insurance Group in the Czech Republic