Premium volume and expenses
A brief presentation of premium development is included under Note 28 “Premiums written” of the notes to the consolidated financial statements.
Vienna Insurance Group wrote EUR 9,050.97 million in Group premiums in 2016, an increase of 0.3% compared to the same period in the previous year. Excluding single-premium life insurance business, the Group recorded a significant increase in premiums of 4.4%. Vienna Insurance Group retained EUR 8,240.35 million of the gross premiums written. EUR 810.62 million was ceded to reinsurance companies (2015: EUR 799.82 million).
Total premium growth was particularly strong in Romania (+24.4%) and in the Remaining CEE segment (+7.9%). In the Remaining CEE countries, Serbia (+18.5%) and Croatia (9.4%) in particular recorded large premium increases in 2016. Overall, the Group generated 56.0% of its premiums outside Austria in 2016.
Net earned premiums rose 0.1%, from EUR 8,180.54 million in 2015 to EUR 8,191.26 million in 2016. Net reinsurance cessions were EUR 786.97 million (2015: EUR 801.00 million).
Expenses for claims and insurance benefits
A brief presentation of expenses for claims and insurance benefits is included under Note 32 “Expenses for claims and insurance benefits” of the notes to the consolidated financial statements.
Group expenses for claims and insurance benefits less reinsurers’ share were around the level of the previous year at EUR 6,753.45 million in 2016 (2015: EUR 6,748.87 million).
Acquisition and administrative expenses
A brief presentation of acquisition and administrative expenses is included under Note 33 “Acquisition and administrative expenses” of the notes to the consolidated financial statements.
Acquisition and administrative expenses for all VIG consolidated companies increased to EUR 1,907.81 million in 2016. (2015: EUR 1,847.57 million). This corresponds to a year-on-year increase of 3.3%, which was primarily due to higher commissions resulting from an increase in regular premium life insurance and an increase in motor third party liability and own damage premiums.