In its report published today on the fourth quarter of 2010, the Financial Market Authority (FMA) has stated that the Austrian insurance sector can look back on a sound financial year. Premium revenues were up in all classes, year-on-year, while the €1.1 billion income from ordinary activities was the second-best result of the last five years. In addition, the technical account balance and financial result were both higher than in 2009.
The premiums written for direct business (i.e. excluding reinsurance) amounted to €16.65 billion (a rise of 1.86% compared with the previous year). The developments in premiums written among the various balance sheet groups were as follows: non-life and accident insurance +1.83%, life assurance +1.64% and health insurance +2.94%. The technical account balance rose from €132 million to €524 million during the past twelve months. The main reasons for this were fewer claims incurred (especially in non‑life and accident insurance) and a sound financial result. The financial result grew year-on-year thanks to a fall in investment charges and interest payments of €2.73 billion to €3.2 billion. The total volume (carrying amounts) of assets managed by Austrian insurance undertakings as at the end of 2009 rose, up by 7.18% to €91.87 billion. Hidden net reserves totalled €6.95 billion as at the end of December.
By contrast, the core share ratio (i.e. listed shares, share-based investment funds, share risk in mixed funds) barely changed during 2010. At the end of the fourth quarter it amounted to 3.86%. During the same period, the extended share ratio (consisting of the core share ratio plus unlisted shares, structured debt securities without a capital guarantee and structured loans without a capital guarantee) decreased from 16.42% to 15.98%.