The Other Markets segment includes Germany and Liechtenstein. The Other Markets generated 3.9% of Group premiums in 2016.

Germany

Premium volume in the German insurance market remained unchanged compared to the previous year. Property and casualty insurance recorded premium growth of 3.0% in the first three quarters of 2016. Life insurance premiums decreased 3.0% in 2016 compared to the first three quarters of 2015, largely due to the continued effects of the ongoing low interest rate environment on single-premium business. While single-premium products recorded a drop of 9.7%, regular premium products remained practically unchanged (-0.1%).

Vienna Insurance Group is represented in Germany by InterRisk Non-Life and InterRisk Life. These two highly profitable niche providers operate exclusively through brokers. InterRisk Non-Life specialises in casualty and liability insurance and selected property insurance products. InterRisk Life focuses on retirement provision and occupational disability solutions, as well as protection for surviving dependants.

Liechtenstein

Liechtenstein offers insurance companies direct access to the markets in countries in the European economic area and Switzerland. As a result, the insurance companies located there offer international insurance solutions. At the end of 2016, 21 life insurance, 17 property and casualty insurance and three reinsurance companies had registered offices in Liechtenstein. The Liechtenstein insurance market remained at the level of the previous year in the first three quarters of 2016.

Vienna Insurance Group is represented by Vienna-Life in Liechtenstein. Vienna-Life operates exclusively in life insurance and concentrates predominantly on unit-linked and index-linked life insurance.

Business development in the Other Markets in 2016

Premium development

Vienna Insurance Group generated total premiums written of EUR 352.96 million in the Other Markets in 2016 (2015: EUR 410.04 million), representing a decrease of 13.9% compared to the previous year. The decrease was due to a reduction in single-premium business in Liechtenstein. Net earned premiums were EUR 311.57 million in 2016 (2015: EUR 371.16 million), representing a decrease of 16.1% compared to the previous year.

Expenses for claims and insurance benefits

The VIG companies in the Other Markets segment had EUR 255.04 million in expenses for claims and insurance benefits (less reinsurance) in 2016 (2015: EUR 254.28 million).

Acquisition and administrative expenses

Acquisition and administrative expenses decreased to EUR 25.22 million in the Other Markets in 2016 (2015: EUR 25.64 million). This corresponds to a drop of 1.6% compared to the previous year.

Result before taxes

Profit before taxes rose significantly by 9.5% to EUR 22.15 million in 2016 due to an improvement in the extraordinary financial result and to the underwriting result.

Combined ratio

Vienna Insurance Group had an excellent combined ratio of 81.8% in the Other Markets in 2016 (2015: 83.0%).