(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 178 in the notes to the consolidated financial statements.

The insurance service revenue in the year 2024 amounted to EUR 12,138.5 million (2023: EUR 10,921.8 million), with all segments showing growth. The increase of 11.1% compared to the previous year is primarily due to growth in property and casualty insurance (accounted for using the Premium Allocation Approach) in the Extended CEE and Special Markets segments.

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 178 in the notes to the consolidated financial statements.

In 2024 the insurance service expenses amounted to EUR 10,656.8 million (2023: EUR 9,265.3 million). The increase of 15.0% compared to the previous year is mainly due to the significant increase in business volume as well as the increase in weather-related damage and natural disasters.

Insurance service result – reinsurance held

Further details on the insurance service result – reinsurance held can be found in Note 1.4. Reinsurance contracts held starting on page 190 in the notes to the consolidated financial statements.

The insurance service result – reinsurance held resulted in 2024 in a loss of EUR 295.3 million (2023: loss of EUR 448.4 million). The improved reinsurance result is primarily due to the higher assumption of weather-related damage.

Insurance contracts liabilities issued

Further details on the insurance contracts liabilities issued are included in Note 1.3. Insurance contracts issued starting on page 178 in the notes to the consolidated financial statements.

The insurance contracts liabilities issued amounted to EUR 39,598.1 million as of the balance sheet date 31 December 2024 (31 December 2023: EUR 37,804.1 million). This corresponds to an increase of 4.7% compared to the previous year, which is mainly due to the increased business volume of product lines accounted in PAA – in particular in property and casualty insurance – as well as to the positive market development of the underlying assets in the Variable Fee Approach – especially in the long-term life and health insurance lines of business.

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 2024 the CSM amounted to EUR 5,523.2 million (31 December 2023: EUR 5,797.2 million) and mainly stems from long-term life and health insurance. This corresponds to a decrease of 4.7% compared to the previous year, mainly due to changes in the Variable Fee Approach as a result of lower interest rates.