Premium volume and expenses
Premium percentage by lines of business and region
(figures for 2013 in parentheses)
Premium volume
A brief presentation of premium development is included under Note 28 “Net earned premiums” of the notes to the consolidated financial statements.
Vienna Insurance Group was able to maintain a stable premium volume of EUR 9,145.73 million in 2014 in spite of negative exchange rate effects and its systematic profit-oriented underwriting policy. This represented only a small decrease of 0.8% compared to the previous year and was also due in part to the intentional reduction in short-term single-premium business in Poland and the optimisation measures that were required in Italy due to past loss experience. When adjusted for exchange rate effects, the Group recorded a 0.9% increase in premiums. Vienna Insurance Group retained EUR 8,337.18 million of the gross premiums written. EUR 808.55 million was ceded to reinsurance companies.
Total premium growth was particularly strong in the Remaining Markets, such as the CEE countries Albania (+40.6%), the Baltic States (+22.8%) and Hungary (+11.2%), which recorded double-digit growth rates.
Overall, the Group generated 54.8% of its premiums outside Austria in 2014. For property and casualty insurance, the share contributed by companies outside Austria was 58.6%. 55.3% of life insurance premiums were generated outside of Austria, and 4.7% of health insurance premiums were generated outside of Austria by the Georgian companies.
Net earned premiums fell 1.5%, from EUR 8,479.05 million in 2013 to EUR 8,353.74 million in 2014. Net reinsurance cessions were EUR 804.63 million.
Expenses for claims and insurance benefits
A brief presentation of expenses for claims and insurance benefits is included under Note 32 “Expenses for claims and insurance benefits” of the notes to the consolidated financial statements.
Expenses for claims and insurance benefits less reinsurers' share (EUR 448.12 million) declined 4.0% to EUR 6,919.93 million in 2014. The reduction is due to fewer claims for severe weather disasters and successful portfolio restructuring.
Acquisition and administrative expenses
A brief presentation of acquisition and administrative expenses is included under Note 33 “Acquisition and administrative expenses” of the notes to the consolidated financial statements.
Acquisition and administrative expenses were EUR 1,874.77 million for all consolidated VIG companies in 2014, representing a slight increase of 0.5% compared to the previous year.