Premium volume and expenses

Premium volume

A detailed disclosure of premium development is included in Note 15 Premiums written in the notes to the consolidated financial statements.

Premiums written reached EUR 10,399.4 million in 2019, representing a year-on-year increase of 7.7%. The significant increase was primarily the result of good growth in other property and casualty and motor own damage insurance, and first-time consolidation of the insurance companies Wiener TU (formerly Gothaer TU) in Poland and Seesam in the Baltic states. Adjusted for the first-time consolidation effects, the Group recorded organic growth of 5.3%. It retained EUR 9,420.7 million of the gross premiums written (2018: EUR 8,811.1 million). EUR 978.7 million was ceded to reinsurance companies (2018: EUR 846.2 million).

Premiums written grew particularly strongly in the Baltic states (+33.1%), Bulgaria (+30.7%), Poland (+26.1%) and Remaining CEE (+19.3%) segments. In the Remaining CEE segment, Ukraine (+58.2%), Bosnia-Herzegovina (+37.6%) and Serbia (+14.0%) recorded particularly large premium growth. Overall, the Group generated 61.2% of its premiums outside Austria in 2019.

Net earned premiums rose 6.7%, from EUR 8,729.4 million in 2018 to EUR 9,317.9 million in 2019. Net reinsurance cessions were EUR 944.7 million (2018: EUR 823.0 million).

Expenses for claims and insurance benefits

A detailed disclosure of expenses for claims and insurance benefits is included in Note 19 Expenses for claims and insurance benefits in the notes to the consolidated financial statements.

Group expenses for claims and insurance benefits less reinsurers’ share were EUR 7,262.7 million in 2019, representing a year-on-year increase of 4.5% (2018: EUR 6,947.0 million). The increase is due to a considerable increase in premium volume.

Acquisition and administrative expenses

A detailed disclosure of acquisition and administrative expenses is included in Note 20 Acquisition and administrative expenses in the notes to the consolidated financial statements.

Acquisition and administrative expenses for all consolidated VIG companies increased 7.1% year-on-year to EUR 2,293.2 million in 2019 (2018: EUR 2,140.7 million). This was mainly due to higher commissions resulting from the increase in premium volume.