After getting off to a strong start in 2010, Austria’s insurance industry has enjoyed a solid second quarter. Premium revenues grew in all balance sheet groups. The result from ordinary activities increased by 58.2% compared with the same period of 2009 to reach €552 million, the best half‑year result of the last three years.
Premiums written in direct business – excluding reinsurance business – totalled €9.04 billion during the first six months of 2010. Compared against the traditionally strong first quarter of the year, premium income was down 18.2%. Premium volume rose by 1.1% compared with the first quarter of 2009. The individual balance sheet groups recorded the following levels of growth during the first half-year: non-life and accident insurance +1.3%, life assurance +3.1% and health insurance +2.7%.
The technical account balance rose from €96 million in the first half of 2009 to €241 million during the same period of 2010. The main factors driving this development were a rise in premium income, a fall in payments due for insurance claims, and a solid financial result.
Income of €2.10 billion was generated in the capital markets during the first half of the current year. With expenditure on capital investment and interest expenses considerably lower than during the previous year, the financial result recorded at the end of June was €1.59 billion, marking an improvement of 27.6% compared with the first six months of 2009.
Assets under management have risen by 7.3% in total since the beginning of the year. As at the end of June, the value of the portfolio was €91.97 billion. Hidden net reserves have grown from €6.78 billion at the start of 2010 to €8.04 billion.
The core share ratio (i.e. listed shares, share-based investment funds, share risk in mixed funds) was practically unchanged on the beginning of the year. The ratio of 3.9% at the end of June was marginally higher than the final figure for the previous quarter. The extended share ratio, lying at 16.2% as at the end of June, has shown a similar development (encompasses core share ratio plus non-listed shares, structured debt securities without capital guarantee and structured loans without capital guarantee).
For further information please contact
Klaus Grubelnik (FMA Media Spokesperson)
+43/(0)1/24959-5106
+43/(0676)/882 49 516