Business development in Poland in 2014

Premium development

Vienna Insurance Group wrote total premiums of EUR 1,034.05 million in Poland in 2014 (2013: EUR 1,142.30 million). This was a decrease of 9.5% compared to the previous year. When adjusted for the intentional reduction in low-margin short-term single-premium life insurance products, however, premiums written recorded an increase of 6.2%. Net earned premiums were EUR 852.93 million in 2014, 9.2% lower than in 2013.

Property and casualty insurance generated a premium volume of EUR 553.86 million in 2014 (2013: EUR 560.07 million), representing a year-on-year decrease of 1.1%.

The life insurance premium income of the Vienna Insurance Group companies in Poland decreased from EUR 582.23 million in 2013 to EUR 480.19 million in 2014. The drop of 17.5% was due to the intentional reduction in low-margin, short-term single-premium products. Products with regular premiums, on the other hand, rose by 47.3%.

Expenses for claims and insurance benefits

Vienna Insurance Group had expenses for claims and insurance benefits (less reinsurance) of EUR 582.74 million in Poland in 2014 (2013: EUR 709.91 million). This was a decrease of EUR 127.17 million or 17.9% in expenses for claims and insurance benefits (less reinsurance). This change was due to the large decrease in single-premium business in the life insurance.

Acquisition and administrative expenses

The Polish companies had acquisition and administrative expenses of EUR 260.33 million in 2014, 17.0% higher than the previous year’s value of EUR 222.54 million. This increase was partly due to the first-time consolidation of Skandia.

Profit before taxes

The Polish companies earned a profit before taxes of EUR 55.16 million in 2014. This corresponds to an increase of 9.8%, which is due to a better extraordinary financial result.

Combined ratio

The combined ratio was an excellent 96.3% in Poland, slightly above the level of the previous year (2013: 96.2%).

Vienna Insurance Group in Poland