Key figures for Vienna Insurance Group
|
2015 |
2014 |
2013 |
Earnings per share |
EUR 0.66 |
EUR 2.75 |
EUR 1.57 |
Return on Equity |
3.7% |
11.0% |
7.2% |
Combined Ratio |
97.3% |
96.7% |
100.6% |
Loss ratio |
66.7% |
65.8% |
69.4% |
Cost ratio |
30.6% |
30.9% |
31.2% |
Earnings per share
Earnings per share is a key figure equal to annual profit for the Group (less non-controlling interests and interest on hybrid capital) divided by the average number of shares outstanding. In 2015 earnings per share fell to EUR 0.66, a decrease of 75.9% compared with the previous year (2014: EUR 2.75). The earnings per share were negatively affected by both the impairment on IT systems of EUR 195.00 million (2014: EUR 50.00 million) and also by the impairment in goodwill and insurance portfolios, as well as a significantly lower financial result.
RoE (Return on Equity)
RoE is the ratio of Group profit before taxes to total average shareholders’ equity of Vienna Insurance Group. The formula for calculating return on equity has been changed since the 2015 half-year financial statements. The average overall capital in accordance with the new calculation will be adjusted to take into account the revaluation reserve. In order to make results more comparable, the previous years values have been adjusted to the current calculation method.
According to this, the Group achieved return on equity of 3.7% (2014: 11.0%).
Combined ratio significantly below 100%
The Group had a combined ratio (after reinsurance, not including investment income) of 97.3% in 2015. This is due to the fact that Vienna Insurance Group was able to continue to keep the combined ratio below the 100% mark as a result of its solid technical result.
The combined ratio is calculated as the sum of all underwriting expenses and income, and net payments for claims and insurance benefits, including the net change in underwriting provisions, divided by net earned premiums in the property and casualty segment.