Key figures for Vienna Insurance Group
in % |
2016 |
2015 adjusted |
2014 adjusted |
Earnings per share (in EUR) |
2.16 |
-0.27 |
2.46 |
Return on Equity |
8.9 |
1.1 |
11.1 |
Combined Ratio |
97.3 |
97.3 |
96.7 |
Claims ratio |
66.9 |
66.7 |
65.8 |
Cost ratio |
30.4 |
30.6 |
30.9 |
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. Earnings per share rose to EUR 2.16 in 2016 (2015: EUR -0.27). The increase was due to the growth in profits in 2016.
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.
Based on this, the Group achieved return on equity (RoE) before taxes of 8.9% (2015: 1.1%).
Combined ratio significantly below 100%
The Group’s combined ratio (after reinsurance, not including investment income) of 97.3% in 2016 was at the level of the previous year. Therewith 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 area of property and casualty.