Business development in Romania in 2014

Premium development

Premiums written declined by 6.1% in Romania to EUR 339.67 million in 2014 (2013: EUR 361.80 million). Net earned premiums were EUR 184.49 million in 2014.

Due to continued restructuring of the product portfolio, premiums written fell by 4.9% in the property and casualty segment to EUR 285.31 million (2013: EUR 299.95 million).

Life insurance premium income generated by the Romanian Vienna Insurance Group companies fell to EUR 54.36 million in 2014 (2013: EUR 61.84 million). The drop of 12.1% was primarily due to the decrease in single-premium business and cessation of a high-volume group insurance product during the realignment of BCR Life.

Expenses for claims and insurance benefits

The Romanian companies had EUR 123.68 million in expenses for claims and insurance benefits (less reinsurance) in 2014 (2013: EUR 175.44 million). The decrease of 29.5% compared to the previous year was due to a major reduction in the motor vehicle portfolio and restructuring of life insurance.

Acquisition and administrative expenses

Vienna Insurance Group had acquisition and administrative expenses of EUR 74.29 million in Romania in 2014 (2013: EUR 87.41 million). This is 15.0% less than the previous year. This change was due both to the decrease in premiums, and the resulting decrease in acquisition costs, as well as the effects of cost optimisation measures.

Profit before taxes

Profit before taxes rose to EUR 6.08 million in 2014, moving the Romanian Group companies out of the loss zone. The significant improvement in performance was the result of successful portfolio restructuring measures.

Combined ratio

The combined ratio improved considerably compared to the previous year, although at a level of 105.0% it was still above the 100% mark (2013: 179.4%).

Vienna Insurance Group in Romania