Premium volume, expenses and profit before taxes
Property and casualty contributed 49.9% of total premium volume in 2014. Life insurance represented 45.9% of total premium volume. 4.2% of the premiums came from health insurance.
VIG companies generated EUR 4,560.39 million in Group premiums from property and casualty insurance in 2014 (2013: EUR 4,618.38 million). This corresponds to a decrease of 1.3%, which was due to optimisation measures that were needed in Italy, the ongoing difficult market environment in Romania, particularly in the area of own-damage insurance, and negative exchange rate effects. When adjusted for exchange rate effects, this segment recorded an increase of 1.0%.
In life insurance, Vienna Insurance Group kept premiums at a stable level of EUR 4,199.04 million (-0.1% compared to the previous year) in spite of the intentional reduction in short-term single-premium business in Poland.
Vienna Insurance Group wrote EUR 386.30 million in premiums in the health insurance segment. This represented a decrease of 2.9% that was due to the end of the government health insurance programme in Georgia. Only Austria and Georgia generate enough health insurance premiums to make a significant contribution to total premiums.
Expenses for claims and insurance benefits
Vienna Insurance Group recorded EUR 2,495.27 million in expenses for claims and insurance benefits in the property and casualty area in 2014. This reduction of 8.1% is due to fewer claims for severe weather disasters and successful portfolio restructuring. Expenses in the life insurance business were EUR 4,094.40 million, 1.6% less than the previous year. In the health insurance segment, expenses for claims and insurance benefits were EUR 330.27 million (2013: EUR 333.59 million).
Acquisition and administrative expenses
Vienna Insurance Group recorded acquisition and administrative expenses of EUR 1,120.46 million in the property and casualty business in 2014 (2013: EUR 1,169.69 million). The decline was the result of successful portfolio restructuring measures. In life insurance, acquisition and administrative expenses rose 8.2% to EUR 703.18 million and in health insurance they were EUR 51.13 million, 9.1% above the previous year value of EUR 46.89 million.
Profit before taxes
Property and casualty contributed EUR 309.64 million or 59.7% of Vienna Insurance Group profits, which were a total of EUR 518.37 million. The Group generated a profit before taxes of EUR 161.57 million in the life insurance area. This means that life insurance accounts for 31.2% of total profits. Health insurance contributed EUR 47.16 million to Vienna Insurance Group profits.