Premium development
In property and casualty insurance, the UNIQA Group was able to continue the positive developments of the previous year again in 2010, increasing the premiums written by 5.9% to €2,590 million (2009: € 2,446 million). As in 2009, the premium volume in Austria rose at a significantly higher rate than the market average by 2.9% to € 1,362 million (2009: € 1,324 million). In the Central and Eastern European regions (CEE & EEM), the growth of the previous years continued. The premiums written grew by 12.5% to € 821 million (2009: € 730 million), thereby contributing 31.7% (2009: 29.9%) to the Group premiums in property and casualty insurance. The premium volume in the Western European markets also increased in 2010: The premium volume written increased by 3.7% to € 406 million (2009: € 392 million). Overall, the international share of Group premiums in property and casualty insurance amounted to 47.4% (2009: 45.9%).
Details on premium volume written in the most important risk classes can be found in the Group notes (no. 31).
The retained premiums earned (according to IFRS) in casualty and property insurance totalled € 2,433 million in the reporting year (2009: € 2,290 million) after growth of 6.3%.
|
Property and casualty insurance |
2010 |
2009 |
2008 |
2007 |
2006 |
|
Premiums written |
2,590 |
2,446 |
2,382 |
2,179 |
2,019 |
|
Share CEE & EEM |
31.7% |
29.9% |
29.5% |
24.2% |
21.1% |
|
Share WEM |
15.7% |
16.0% |
17.0% |
18.5% |
18.6% |
|
International share |
47.4% |
45.9% |
46.5% |
42.7% |
39.7% |
|
Premiums earned (net) |
2,433 |
2,290 |
2,214 |
1,858 |
1,716 |
|
Net investment income |
74 |
97 |
42 |
258 |
141 |
|
Insurance benefits (net) |
–1,741 |
–1,552 |
–1,412 |
–1,251 |
–1,130 |
|
Net loss ratio (after reinsurance) |
71.5% |
67.8% |
63.8% |
67.3% |
65.9% |
|
Gross loss ratio (before reinsurance) |
69.2% |
69.7% |
62.4% |
68.1% |
63.9% |
|
Other operating expenses less reinsurance commissions |
–820 |
–789 |
–740 |
–606 |
–569 |
|
Cost ratio (net after reinsurance) |
33.7% |
34.4% |
33.4% |
32.6% |
33.2% |
|
Net combined ratio (after reinsurance) |
105.3% |
102.2% |
97.2% |
99.9% |
99.0% |
|
Gross combined ratio (before reinsurance) |
101.7% |
102.6% |
94.4% |
99.0% |
95.4% |
|
Profit on ordinary activities |
–43 |
8 |
113 |
238 |
129 |
|
Net profit |
–46 |
–10 |
104 |
193 |
104 |
Development of insurance benefits
Burdened by an accumulation of major claims primarily in Germany, Italy, Hungary and Poland, by flood claims in Poland, Hungary, Slovakia and the Czech Republic and claims caused by the severe winter in Poland and the Czech Republic (gross burden of approximately € 114 million; approximately € 103 million after reinsurance), total retained insurance benefits increased in 2010 by 12.1% to € 1,741 million (2009: €1,552 million). In Austria on the other hand, insurance benefits decreased by 6.5% to €905 million (2009: €968 million); in the Western European markets they increased by 70.6% to € 277 million (2009: € 162 million). In the Central and Eastern European regions (CEE & EEM), the insurance benefits rose by 32.3% to €559 million (2009: € 422 million).
As a result of this development, the net loss ratio (retained insurance benefits relative to premiums earned) rose by 3.7 percentage points to 71.5% (2009: 67.8%). The gross loss ratio (before reinsurance) at year-end 2010 was 69.2% (2009: 69.7%) and thus improved by half a percentage point. In contrast, the net loss ratio in Austria fell to 67.6% in 2010 (2009: 74.3%) due to the good loss trend.
Operating expenses, combined ratio
Total operating expenses in property and casualty insurance less reinsurance commissions and profit shares from reinsurance business ceded rose by 4.0% to € 820 million (2009: € 789 million). In the process, acquisition costs rose in line with premium income by 4.6% to € 543 million (2009: €519 million), while other operating expenses increased only moderately by 2.9% to €278 million (2009: € 270 million).
The cost ratio in property and casualty insurance fell in the past financial year to 33.7% (2009: 34.4%) as a result of this development. The net combined ratio increased due to the rise in the loss ratio and was at 105.3% in 2010 (2009: 102.2%). Without taking into consideration the aforementioned extraordinary burdens, the net loss cost ratio was 101.0%. The combined ratio before reinsurance improved to 101.7% (2009: 102.6%) or 97.2% without considering the special effects.
Investment results
Net investment income less financing costs rose in the past year by 23.9% to € 74 million (2009: €97 million). In contrast, the capital investments in property and casualty insurance increased slightly by 0.4% to €3,200 million (2009: € 3,189 million).
Profit on ordinary activities, net profit
Burdened by an accumulation of major claims – primarily in Germany, Italy, Hungary and Poland – and claims due to floods and the severe winter in Eastern Europe, the profit on ordinary activities was negative in 2010 and amounted to € –43 million (2009: € 8 million). Net profit declined to
€ –46 million (2009: € –10 million).
