Other Markets
The Other Markets segment includes Germany and Liechtenstein. In 2019 the segment generated 3.7% of Group premiums.
Germany
The German insurance industry recorded a 6.2% year-on-year increase in premium volume in the first nine months of 2019. Life insurance, which saw premiums increase 10.7%, was an important driver of growth. The increase was mainly due to significant growth of 34.8% in single-premium products. Regular premium life insurance remained stable, with an increase of 0.2%. The German insurance market also achieved growth of 3.3% in the property and casualty insurance line of business. Private health insurance recorded an increase of 2.1%.
The VIG insurance companies InterRisk Non-Life and InterRisk Life operate in Germany. The InterRisk companies distribute exclusively through around 10,000 independent sales partners. InterRisk Non-Life specialises in accident and liability insurance and selected property insurance products. InterRisk Life focuses on retirement provision and occupational disability solutions, as well as protection for surviving dependants. The VIG companies continue to operate successfully in the German market as niche providers.
Liechtenstein
As a member of the European Economic Area, the Principality of Liechtenstein has offered insurance companies direct market access to 31 countries and around 500 million people in Europe since 1995. The life insurance companies domiciled in Liechtenstein primarily offer unit-linked and equity-linked (anteilsgebunden) retirement and insurance solutions for high net worth individuals. The property and casualty insurers cover all of the corresponding lines of business. At the end of 2019, 37 insurance companies, including 21 life insurance companies, had registered offices in Liechtenstein. Premium volume in the first three quarters of 2019 was around the same level as the previous year.
The VIG insurance company Vienna-Life operates in Liechtenstein. Vienna-Life mainly offers unit-linked and index-linked life insurance.
Financial performance indicators in the Other Markets segment
Premium development
PREMIUMS by line of business
In the Other Markets segment total premiums written of EUR 380.4 million were recorded in 2019 (2018: EUR 321.0 million), representing an increase of 18.5% compared to the previous year. The increase was due to good performance in all lines of business, in particular single-premium life insurance in Liechtenstein. Net earned premiums were EUR 332.3 million in 2019 (2018: EUR 275.1 million), an increase of 20.8% compared to the previous year.
Result before taxes
The result before taxes decreased 5.7% to EUR 22.6 million in Liechtenstein in 2019 (2018: EUR 23.9 million).
Combined Ratio
In 2019 the combined ratio was an excellent 82.4% in the Other Markets segment (2018: 82.9%).