Key figures for Vienna Insurance Group

Earnings per share

Earnings per share is a key figure equal to the result for the period (less non-controlling interests and interest on hybrid capital) divided by the average number of shares outstanding. The number of shares remained unchanged compared to the previous year.

Earnings per share were EUR 2.04 in 2018 (2017: EUR 2.23).

Return on equity (RoE)

Return on equity (RoE) measures the profitability of the Group by expressing the result before taxes as a ratio of the capital employed. This ratio is calculated by dividing the result before taxes by the average shareholders’ equity. VIG uses shareholders’ equity after adjusting for a provision for unrealised gains and losses for this purpose.

The Group earned a return on equity before taxes of 8.9% in 2018 (2017: 8.3%).

Combined ratio significantly below 100%

The combined ratio is calculated as the sum of all under-writing expenses and income, and net payments for claims and insurance benefits, including the net change in underwriting provisions, divided by net earned premiums in the property and casualty line of business.

The Group combined ratio (after reinsurers’ share, not including investment income) improved to 96.0% in 2018, mainly due to improvements in the Austria, Czech Republic and Poland segments (2017: 96.7%). As a result, VIG’s combined ratio continued to improve in 2018.