(Re-)Insurance Contracts

Insurance service revenue – issued business

Additional details on the insurance service revenue – issued business, hereinafter referred as “Insurance service revenue”, are included in Note 1.3 Insurance contracts issued starting on page 94 in the notes to the consolidated financial statements.

The insurance service revenue in the year 2023 amounted to EUR 10,921.8 million (2022: EUR 9,737.6 million) and was thus 12.2% above the value of the previous year. The increase resulted primarily from the growth in the property and casualty insurance (Premium Allocation Approach).

Insurance service expenses – issued business

Further details on the insurance service expenses – issued business, hereinafter referred as “insurance service expenses”, are included in Note 1.3 Insurance contracts issued starting on page 94 in the notes to the consolidated financial statements.

In 2023 the insurance service expenses amounted to EUR 9,265.3 million (2022: EUR 8,525.8 million). The increase of 8.7% in comparison to the previous year resulted primarily from the significant increase in business volume.

Insurance service result – reinsurance held

Further details on insurance service result from reinsurance held are included in Note 1.4 Reinsurance contracts held starting on page 104 in the notes to the consolidated financial statements.

The insurance service result from reinsurance held resulted in 2023 in a loss of EUR 448.4 million (2022: loss of EUR 73.0 million). It should be noted that coverage of a large claim was included in the segment Austria in 2022 which had a very positive influence on the previous year’s result. On the other hand, the reported year was impacted by increased costs for reinsurance.

Insurance contracts liabilities issued

Further details on the insurance contracts liabilities issued are included in Note 1.3 Insurance contracts issued in the notes to the consolidated financial statements starting on page 94.

The insurance contracts liabilities issued amounted to EUR 37,804.1 million as of the balance sheet date 31 December 2023 (31 December 2022: EUR 36,370.4 million). That corresponds to an increase of 3.9% year-on-year and is primarily based on the positive price development of the underlying items in the Variable Fee Approach.

Contractual Service Margin (CSM)

The Contractual Service Margin (CSM) includes the unrealised profits originally priced into the insurance contract, which is reported as a separate component of the technical provisions. As of 31 December 2023 the CSM amounted to EUR 5,797.2 million (31. December 2022: EUR 5,838.1 million) and mainly stems from life and health insurance. That corresponds to a slight decline of 0.7% year-on-year that resulted particularly from the lower balance of CSM released to income and new business CSM in the Variable Fee Approach.