Business development in the Remaining Markets in 2014

Premium development

In spite of negative exchange rate effects, Vienna Insurance Group recorded premiums written of EUR 1,155.64 million in the Remaining Markets in 2014 (2013: EUR 1,061.64 million), representing a significant increase of 8.9% compared to the previous year. Net earned premiums were EUR 880.13 million in 2014 (2013: EUR 809.27 million), an increase of 8.8% compared to the previous year.

Property and casualty insurance generated EUR 606.08 million in premiums in the Remaining Markets in 2014 (2013: EUR 607.09 million), representing a slight decrease of 0.2% compared to the previous year.

Life insurance premium income from Vienna Insurance Group companies in the Remaining Markets rose by 28.3% to EUR 531.42 million in 2014 (2013: EUR 414.16 million). In the CEE countries, the strong growth rates achieved for regular premium products and single-premium business in the Baltic States, Bulgaria and Hungary are particularly noteworthy.

Health insurance premiums written by the Georgian Group companies fell by 55.1% to EUR 18.1 million, due to the end of the government health insurance programme.

Expenses for claims and insurance benefits

Expenses for claims and insurance benefits less reinsurance were EUR 653.14 million in 2014 (2013: EUR 580.32 million). This corresponds to a year-on-year increase of 12.5% in expenses for claims and insurance benefits (less reinsurance), which is due to the larger size of the insurance portfolio, and the many claims for flood damage in Serbia and Bosnia-Herzegovina.

Acquisition and administrative expenses

Vienna Insurance Group reduced acquisition and administrative expenses in the Remaining Markets from EUR 230.68 million in 2013 to EUR 209.29 million in 2014, representing a decrease of 9.3% compared to the previous year.

Profit before taxes

The good growth achieved in the Remaining Markets raised profit before taxes by 5.4% from EUR 49.00 million to EUR 51.66 million.

Combined ratio

Vienna Insurance Group improved the combined ratio in the Remaining Markets to 97.6% in 2014 (2013: 98.6%).

Vienna Insurance Group in the Remaining Markets*