Business development in the Czech Republic in 2014

Premium development

In 2014, the Czech VIG insurance companies increased premiums by 1.3% in local currency terms. In euros, premium volume was lower than the previous year at EUR 1,683.41 million (2013: EUR 1,762.08 million), representing a decrease of 4.5%. Net earned premiums were EUR 1,366.04 million in 2014.

Property and casualty insurance generated premium income of EUR 826.65 million in 2014 (2013: EUR 891.95 million). This was a decrease of 7.3% compared to the previous year and was also mainly due to negative exchange rate effects.

Life insurance premiums rose 4.4% in local currency terms in 2014. In terms of the euro, a decrease of 1.5% to EUR 856.75 million was recorded.

Expenses for claims and insurance benefits

The Czech companies had expenses for claims and insurance benefits (less reinsurance) of EUR 957.52 million in 2014, or EUR 51.00 million less than in 2013. This represents an improvement of 5.1%.

Acquisition and administrative expenses

VIG reduced its acquisition and administrative expenses by 3.9% to EUR 332.47 million in the Czech Republic in 2014. Acquisition and administrative expenses were EUR 345.82 million in 2013.

Profit before taxes

The Czech companies contributed EUR 177.87 million to total profits in 2014 (2013: EUR 197.82 million). When expressed in euros, the profit before taxes therefore recorded a drop of 10.1%, which was mainly due to exchange rate effects.

Combined ratio

The combined ratio was an excellent 86.2% in 2014 (2013: 91.5%), which was the lowest value yet achieved in previous years.

Vienna Insurance Group in the Czech Republic