The Raiffeisen Insurance segment increased the premiums written, including the savings portion from the unit-linked and index-linked life insurance in 2014, by 3.1 per cent to €905.3 million (2013: €878.5 million), despite the noticeable decline recorded in premiums in unit-linked life insurance. The main causes of this development are subsequent effects of maturing life insurance policies in conjunction with the decision that was already made back in 2011 to withdraw completely from the German market and not to underwrite any more new business. The strong trend in the Austrian core business with Raiffeisen as a partner bank was able to overcompensate for that deterioration. Although recurring premiums dropped by 8.6 per cent to €754.0 million (2013: €825.3 million), single premiums rose 184.7 per cent to €151.3 million (2013: €53.1 million).
Including the savings portion from the unit-linked and index-linked life insurance, the volume of premiums earned at Raiffeisen Versicherung AG amounted to €794.0 million (2013: €767.7 million). The volume of premiums earned (net, according to IFRS) rose in 2014 by 14.1 per cent to €650.8 million (2013: €570.6 million).
While premiums written rose in property and casualty insurance by 5.1 per cent to €153.2 million (2013: €145.7 million); in life insurance they increased by 2.6 per cent to €752.1 million (2013: €732.8 million). Health insurance is not offered in the Raiffeisen Insurance segment.
Retained premiums earned (according to IFRS) rose in property and casualty insurance by 3.9 per cent to €79.8 million (2013: €76.8 million); in life insurance, they increased by 15.6 per cent to €571.1 million (2013: €493.9 million). Including the savings portion from the unit-linked and index-linked life insurance, the volume of premiums earned in life insurance amounted to €714.2 million (2013: €690.9 million).
Retained insurance benefits in the Raiffeisen Insurance segment increased in 2014 by 8.8 per cent to €685.2 million (2013: €630.0 million). They rose 8.1 per cent in property and casualty insurance to €57.1 million (2013: €52.9 million). In life insurance, this increase was noticeably less than the premiums earned: they rose 8.8 per cent to €628.1 million (2013: €577.1 million). The previous year’s figure was impacted as a result, among other things, of an increase in the free provision for premium refunds. This expense did not repeat itself to the same extent in the 2014 financial year. Overall, in 2014 the loss ratio in property and casualty insurance amounted to 71.6 per cent (2013: 68.8 per cent).
Operating expenses, not including reinsurance commissions received and the share of profit from reinsurance ceded, which amounted to €30.5 million (2013: €26.2 million), decreased in 2014 by 9.2 per cent to €101.5 million (2013: €111.7 million). They fell in property and casualty insurance by 27.9 per cent to €12.0 million (2013: €16.6 million); in life insurance, they increased by 6.0 per cent to €89.5 million (2013: €95.2 million).
The cost ratio in the Raiffeisen Insurance segment after reinsurance, i.e. the relation of total operating expenses, less reinsurance commissions received and the share of profit from re-insurance ceded, to the premiums earned, including the savings portion from the unit-linked and index-linked life insurance, fell to 12.8 per cent in 2014 (2013: 14.6 per cent).
Net investment income
Net investment income in the Raiffeisen Insurance segment rose in 2014 by 6.1 per cent to €267.0 million (2013: 251.6 million). Among other things, the gains from the disposal of prop-erty had a positive effect on net investment income in the 2014 financial year.
Profit/(loss) from ordinary activities
Profit/(loss) from ordinary activities in the Raiffeisen Insurance segment climbed by 68.2 per cent to €108.6 million (2013: €64.6 million). It rose in property and casualty insurance by 55.4 per cent to €14.1 million (2013: €9.1 million); in life insurance, profit increased by 70.3 per cent over the previous year’s level to €94.6 million (2013: €55.5 million). The main drivers of this positive trend in profit or loss were the drop in expenses connected with the policyholders’ dividend reserve, the reduced costs and the increase in net investment income.