WE ARE - Wiener Städtische

Transcription

WE ARE
Austria
Annual REPORT 2010 | Wiener Städtische Versicherung AG
A NNUA L REP O R T 2010 | W iener S tä dt i s che
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NUMBER 1 IN AUSTRIA
WE HAVE
APPROXIMATELY 140 BUSINESS OFFICES
AND MORE THAN 2,000 ADVISORS.
NO ONE ELSE IN AUSTRIA CAN OFFER
SO MUCH TO THEIR CUSTOMERS.
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ANNUAL RE P O R T 2010 | W iener S tä dt i s che
WE ARE AVAILABLE
nation-wide
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EVEN MORE TIME FOR YOUR CONCERNS
THE VIENNA INSURANCE GROUP
ASSUMES GROUP AND HOLDING
COMPANY RESPONSIBILITIES, AND WE
HAVE MORE TIME TO SERVE
OUR CUSTOMERS
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WE GIVE NEW MEANING TO
problem-free
IN AUSTRIA
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OUR RECIPE FOR SUCCESS SINCE 1824
ASSUME LEADERSHIP IN CURRENT INSURANCE
TOPICS AND PRODUCT INNOVATION, AND PROVIDE
PROFESSIONAL ADVISORS AND SERVICE. THE
RESULTS: FAIR, LONG-LASTING CUSTOMER
RELATIONSHIPS
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WE OFFER THE MOST
professional
ADVISORS AND SERVICE IN AUSTRIA
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IT MUST BE IN THE GENES
A CLAIM TO LEADERSHIP IN ALL GENERATIONS.
JUST AS THE VIENNA INSURANCE GROUP
IS AMONG THE LEADERS IN MANY
CEE MARKETS, WIENER STÄDTISCHE
IS NUMBER 1 IN AUSTRIA.
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WE BELONG TO THE VIENNA INSURANCE GROUP, A
leading family
IN THE CEE REGION
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HighLights
Highlights
WELCOME TO THE FUTURE
> Reorganisation of Group structure, Vienna Insurance Group assumes
holding company responsibilities
> New Managing Board team for Austria
> Full concentration on the insurance business in Austria and the branch
offices in Italy and Slovenia
> Number 1 in the Austrian insurance market
> Retirement pensions receiving more attention
CONTINUOUS IMPROVEMENT
> Premium volume increases by 4.2% to EUR 2.4 billion in 2010
> Profit before taxes considerably higher than in the previous year
> Combined ratio of 96.6% once again significantly below 100%
> Wiener Städtische’s product and service innovations are
on the pulse of the times
> New Wiener Städtische website offers extensive product
information and service highlights
> Advertising awards
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editorial
»wE ARE AUSTRIA ...«
186 years of experience in the Austrian insurance market make us strong. The building blocks of our success
are proximity to customers throughout Austria, leadership
in current insurance topics and product innovation, and
providing the most professional advisors and service. We
use our leading position to create sustainable value, based
on the four pillars of region, people, financial strength and
optimal solutions. Our main guiding principle: relieve our
customers of their concerns.
In August 2010, Robert Lasshofer assumed the position of CEO for
Wiener Städtische that had previously been held by Günter Geyer.
General Manager Günter Geyer
Thanks to the new Group structure, we can now concentrate even more strongly on the Austrian market. As the
new holding company, the Vienna Insurance Group has
been responsible for managing the Group since August
2010, giving Wiener Städtische Versicherung AG more
opportunity to focus on its traditional insurance business.
At the same time, responsibility for managing the Company was assigned to Robert Lasshofer. The modern,
forward-looking management structure of our Group also
allows us to restructure activities in our home market to
become more efficient and customer-focused. So that we
can truly say: WE ARE AUSTRIA!
General Manager Robert Lasshofer
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Managing Board of Wiener Städtische Versicherung AG (from left to right) Erich Leiss, Judit Havasi,
General Manager Robert Lasshofer, Christine Dornaus, Peter Höfinger
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interview
»... FACED WITH THE CHALLENGE OF BECOMING
EVEN BETTER AS NUMBER 1 ...«
An interview with the members of the
Managing Board of Wiener Städtische Versicherung AG,
General Manager Robert Lasshofer, Christine Dornaus,
Judit Havasi, Peter Höfinger and Erich Leiss.
2010 brought fundamental change
for you, the separation of Wiener
Städtische and VIG, which will focus
on holding company and Group management responsibilities in the future.
What does this mean for you?
»WE CAN FOCUS
MORE STRONGLY ON
THE AUSTRIAN
MARKET.«
Robert Lasshofer
Lasshofer: For Wiener Städtische, it
means a natural continuation of its
successful past. We were one of the
first to dare enter Eastern Europe
after the fall of the Iron Curtain, and
we have grown to become one of
the leading insurance companies in
the region. At the same time, we increased in size to such an extent that
separating holding company responsibilities, now managed by VIG, and
operating responsibility for Wiener
Städtische’s insurance business became a natural next step. This separation of responsibilities puts us once
again ahead of our times, and allows
us here at Wiener Städtische to concentrate more strongly on the Austrian market and branch offices in Italy
and Slovenia, and the security needs
of our customers.
Will customers also see changes? Continuity is particularly important when it
comes to insurance.
Leiss: And continuity is exactly what
we are focusing on. Our main themes
were, and still remain, absolute
customer-orientation and security.
The concept of security has been
expanded, however, to include not
only our original business of providing risk coverage, but also security
in a broader sense of safety, lasting
customer relationships. A partner offering long-term security is precisely
what customers need when deciding
to join a pension plan, for example.
What do you consider your overall role
in the Austrian insurance market? After all, this Annual Report begins with
the highly confident statement, “We
are Austria.”
Dornaus: Our number 1 position
in the Austrian insurance market is
based on a market share of 14.5%,
approximately 3,500 employees,
2,000 advisors and 1.3 million customers. Our self-confidence is therefore based on impressive facts. The
statement “We are Austria”, however,
reflects many other factors. We are
an Austrian company, managed from
Austria, with a successful history of
186 years as Austria’s oldest insur-
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»... FORWARD-LOOKING TRENDSETTERS IN
ance company. We are also one of
the largest investors and employers
in the country. We are well positioned
throughout Austria, near to our customers and responsive to their needs.
Our expansion into the CEE region
was, however, also managed from
Austria. And now, thanks to the reorganisation of VIG, we can once again
place our full attention on our home
market of Austria.
What does being a part of VIG mean
for you, and your customers?
»WE WANT TO
PROVIDE QUICK
LONG-TERM
SOLUTIONS FOR
CUSTOMER
NEEDS.«
Erich Leiss
Höfinger: Being part of an international group of companies brings us
stability, financial strength and a network covering the entire CEE region,
which is of particular interest to our
large customers, who often operate
out of Austria in the entire region.
VIG also performs important management functions that determine
our strategic direction and provide
synergies. This brings considerable
cost benefits, for example in the IT
area or back office. In addition, all
of the companies in VIG benefit from
exchanging know-how and best practices. It is important to us that the
other companies in the Group meet
the same high goals and standards
as the Group as a whole.
And where specifically do you score
points compared to your competitors?
Leiss: Our goal is to recognise trends
before others do, and to immediately
turn this knowledge into products
that address those needs. We therefore see ourselves as forward-looking
trendsetters in the Austrian insurance industry. Wiener Städtische’s
track record of consistent success
throughout its history shows that we
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can achieve this goal. One example:
we were the first in the market to
expand catastrophic protection in
homeowner insurance.
Havasi: We were also first mover with
retirement pensions in the 1960s,
and in the area of nursing care provisions, where we were the first in
Austria to offer an insurance solution.
Aside from product innovation, however, one of the crucial differences,
particularly in a business based on
trust, is the high level of professional
service and support we provide. Because of our nation-wide network,
we truly are near to our customers
everywhere in Austria. Another factor that perhaps none of us would
have suspected, and that also underscores longterm performance, is
that we have been the trusted insurance company of many monasteries
and other parts of the Austrian clergy
since the Company was established.
How does it look in terms of profitability? The last few years have also been
difficult for insurance companies.
How did the Company do in 2010?
Lasshofer: Very well. Premium volume increased by more than 4%, exceeding our target for the year, and
the result from ordinary activities is
also considerably higher than the
year before.
Single-premium life insurance policies made a particularly large contribution to premium volume, the cost
reduction programme begun in 2009
was brought to a successful conclusion, and the reorganisation measures needed when the Company was
split off from VIG were also completed
quickly. This increased efficiency
considerably.
interview
THE AUSTRIAN INSURANCE MARKET ...«
Dornaus: In the investments area,
we used a very conservative and security-oriented investment policy to
minimise our exposure to default risk.
This produced an excellent financial
result. Earnings were also increased
by a successful property sale, which
was reported in the extraordinary result. Independent of this sale, we further expanded our real estate portfolio to increase security and stabilise
our actuarial reserve fund.
ruption due to the financial and economic crisis, the trend is now returning even more strongly. Single-premium policies, traditional life insurance,
and our “Prämienpension” pension
product showed clear signs of this in
2010. In overall terms, life insurance
premiums rose by 12.9% last year.
What were the most important external factors? The media often reported
on natural catastrophes and an increased trend towards retirement provisions.
Leiss: We once again made a very
large number of product additions
and modifications in 2010. The
central principle was to provide increased ease of use and transparency by, for example, promoting the
use of the Internet, smartphones, and
the like. For example, we now offer
apps and claims processing tools for
these channels. The main goal was to
satisfy customer requirements, both
in terms of sustainability, which is important in areas like retirement provisions, for example, which demand a
great deal of advisory services, and
in terms of speed, for example in motor vehicle claims settlement. At the
same time, we also worked intensively in 2010 on preparations for the
product innovation initiative that is
planned for 2011.
Höfinger: 2010 was, in fact, greatly
affected by natural catastrophes.
In terms of our private customers,
although there was no single largescale event, like the flood of the millennium that occurred in 2002, there
were many smaller events spread
over the year. In the business segment, since we accompany many
Austrian companies as they move
into foreign countries, we are naturally also affected by natural events
in other regions and on other continents. In total, we paid out EUR 1.4
billion in insurance benefits last year.
Our reinsurance policy has proven its
value here, as it allowed the charges
for Wiener Städtische itself to be
kept to a minimum. Due to the large
number of major losses, however, the
reinsurance market has become considerably more cautious.
Havasi: With respect to provisions for
retirement, demographic change and
increasingly tight government budgets have caused this area to grow
strongly for years. After a short inter-
What were the most important initiatives in the product and services areas
in 2010?
»WE CHOOSE
SECURE INVESTMENTS
FOR CUSTOMER
PREMIUMS.«
Christine Dornaus
With respect to employees, in addition
to a professional organisational structure, customer-orientation and good
service require committed, competent
employees.
Lasshofer: That is why we are continuously investing in our employees.
This is done with two goals in mind.
First, we want to ensure that we have
the best employees in our team and,
second, we need to ensure that our
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»... WIENER STÄDTISCHE’S SUCCESS IS
»OUR REINSURANCE
POLICY HAS PROVEN
ITS VALUE.«
Peter Höfinger
advisors provide the high level of
professional service demanded by
the market. We use something similar to a double-brand strategy here.
The image of our Company, and its
success, are a product of both the
“Wiener Städtische” brand and the
personal “brand” of each individual
employee. Wiener Städtische’s success is also the success of each individual employee, and vice versa. This
is why we invest large sums in training
and advanced training, motivation,
and the development of young employees, as well as the targeted use
of experienced employee expertise,
and the use of job rotation to promote
networking within the Group. High
priority is also given to informational
events and training courses for our
field staff, who are of key importance
to our sales.
joyment, but also brings a high level
of responsibility, both to our employees and our customers. I am pleased
to take on the challenge!
Without our employees, we could not
have achieved the good result we reported for the year just ended, and
I would like to take the opportunity
here to thank them deeply for their
past and future support.
Havasi: As another example, we also
have one of the first company daycare centres in Austria, with 105 children currently registered. This also
fits the image we have of ourselves as
a first mover. One result is that 90% of
mothers return after maternity leave,
which is likely to be a new record. We
also use targeted measures to encourage women to join the Company.
Each year, for example, the Company holds a “Daughters’ Day” event,
where the daughters of employees
can learn more about the professional careers available for women in the
insurance industry. At the same time,
equal treatment is also an important
principle for us in other areas. For
example, Wiener Städtische has 96
employees with disabilities.
Mr. Lasshofer, you took on the position
of CEO in August 2010. What does this
mean for you personally, and what areas are you planning to focus on?
Lasshofer: The need for security has
been with us since the dawn of mankind, and I would like to build on this
basic principle to further strengthen
Wiener Städtische’s leading position
in the market. We want to continue to
follow the successful path we are on,
and add further to our achievements.
Our challenge, therefore, is to further
improve our position as number 1. In
terms of what the new position means
to me personally, it brings great en-
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Two members of the Managing Board
are women. This is completely unheard of for a large Austrian company.
What are your thoughts about equal
treatment in general?
Dornaus: The situation is excellent
at Wiener Städtische, but society as
a whole unfortunately has a long way
to catch up. We don’t need a quota
system in the Company; everything
is simply based on performance. This
holds true for all areas of the company, including the Managing Board. Of
the total 1,546 inside employees of
Wiener Städtische, 953 are women.
That is more than 60%.
What is the situation in terms of corporate social responsibility, in particular,
sponsoring?
interview
THE SUCCESS OF ALL OUR EMPLOYEES.«
Havasi: As a company committed to
sustainable security, we also recognise our responsibility to society, and
regularly support a broad portfolio
of initiatives. Our main focus is on
cultural and social initiatives, in
sports we limit ourselves to recreational sports, such as the Vienna City
Marathon. In the area of culture, the
VBW theatre company (Vereinigte
Bühnen Wien) and St. Margarethen
Opera Festival are some of our partners, and we also support the Festival der Bezirke festival and the Long
Night of the Churches (Lange Nacht
der Kirchen) regularly. Providing support for social causes, however, is
particularly important to us. Highlights in this area include, for example, the Safety Tour for children and
the Caritas nursing care campaign,
which we are co-financing. A project
started with the “Second Savings
Bank” (Zweite Sparkasse) provides
low-cost or, in some cases, free insurance for people in a precarious
financial situation who have special
needs in this area. This is a matter of
particular concern to us. We feel it is
important to be a long-term, reliable
partner in all of these projects, and to
provide long-lasting support over the
long term.
sions and nursing care provisions,
and continuously develop new products to provide long-term security in
this area. On the other hand, life is
becoming ever faster, and needs are
becoming more short-term. We are
also reacting flexibly to these developments, and are planning a series
of innovations for retirement pensions, motor vehicles and nursing
care in 2011 that are a perfect match
for these new needs. We will also, of
course, combine this with further
training and advanced training for our
advisors. They need to have detailed
knowledge of the products and customer needs, and be able to see the
bigger picture.
In terms of figures, we will naturally
be aiming for sustainable growth.
This applies in particular to the nonlife area, where natural catastrophes,
rising criminality, and the economic
crisis have increased people’s security needs, leading to an upward
trend. In addition, we also see potential in nursing care provisions. In
overall terms, we have a good basis
for further increasing our volume of
business.
»WE TAKE OUR SOCIAL
RESPONSIBILITY
VERY SERIOUSLY.«
Judit Havasi
Thank you for the interview.
Let us finish with a look into the future.
What are your expectations and most
important plans for financial year
2011?
Lasshofer: As mentioned previously,
we are planning a product innovation
initiative for 2011. The overall aim of
the initiative is to achieve new quality
for our products. This has two main
dimensions. First, we aim to remain a
reliable partner in all long-term insurance areas, such as retirement pen-
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wiener städtische MANAGING BOARD
Judit Havasi
Member of the Managing Board
Areas of responsibility:
Human resources and
development, company law,
sponsoring, life insurance,
casualty insurance, health
insurance, personal
insurance service centre
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Erich LeiSS
Property insurance, general liability
insurance and legal expenses
insurance, private and commercial
business, motor vehicle insurance,
property insurance service centre,
special damages, legal expenses
claims, business organisation,
IT management and provider
management
Christine dornaus
Securities and funds, equity
investment management and
loans, real estate and real
estate-related equity investments, finance and accounting,
collections service centre
Robert Lasshofer
General Manager, CEO
Media and public relations,
internal communications
marketing, advertising, central
sales management, primary
distribution, secondary distribution,
Erste Bank Sparkasse Group
partnership, provincial
head offices
Peter Höfinger
Corporate and large customer
business, reinsurance
OVERVIEW
A
COMPANY & STRATEGY
Number 1 in Austria
The Vienna Insurance Group
Clear objectives and strategy
Leadership in current insurance topics and innovation
Professionalism and reliability
Employees as a key factor in success
Success can be shared
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28
30
32
34
36
38
B
MAJOR TOPICS 2010
The new Wiener Städtische
Expansion of the service centres
Negative effects of natural catastrophes
Attention on retirement provisions
Product and service initiatives
Advertising does well
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40
41
42
44
48
52
C
MANAGEMENT REPORT 2010
Business development in 2010
Risk report
Outlook for 2011
Proposal on the distribution of profits
54
59
61
63
D
ANNUAL FINANCIAL STATEMENTS 2010
Balance sheet
Income statement
Notes to the financial statements
Auditor’s report
Supervisory Board report
Declaration by the Managing Board
SERVICE
State advisory boards
Provincial head offices
Contact information and addresses
Glossary
66
74
81
104
106
108
109
112
113
123
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KEY FIGURES FOR Wiener StädtiSche Versicherung AG
in million EUR
Gross premiums written
Property/casualty
Life
Health
Financial result
Profit from ordinary activity
Total capital assets
Capital assets
Capital assets of unit- and index-linked life insurance
Underwriting provisions
(excluding unit- and index-linked life insurance)
Underwriting provisions of unit- and
index-linked life insurance
Equity capital
Number of employees
Internal
External (including trainees)
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2010
2,432.8
1,046.5
1,058.5
327.8
388.4
187.6
12,510.6
10,286.6
2,234.0
8,294.9
2,141.4
881.7
3,497
1,546
1,951
COMPANY & STRATEGY | MAJOR TOPICS 2010 | MANAGEMENT REPORT 2010 | ANNUAL FINANCIAL STATEMENTS 2010
Premiums by segments
Insurance claims by segments
A
Property/casualty
32.6%
Property/casualty
43.0%
Life 53.6%
Life 43.5%
Health 13.8%
Health 13.5%
* incl. costs of claims processing
Result from ordinary business by segments
Life 21.7%
Structure of investments*
Others 1.3%
Real estate 2.7%
Loans 13.0
Property/casualty
65.7%
Securities 65.9%
Health 12.6%
Ownership
interests 17.1%
* Balance of investments excluding unit-linked and index-linked life
insurance was EUR 10,286.60 mn as at 31 December 2010
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wiener städtische versicherung AG
Austria’s tightest safety net
Vienna location
Floridsdorf
Donaustadt
Office "Vorsorge"
Ottakring
HEADQUARTERS PROVINCIAL HEAD OFFICE
Braunau/Inn
Landstraße
Mattighofen
Liesing
Seekirchen
SALZBURG
Hallein
Kufstein
Bregenz
Dornbirn
FELDKIRCH
Bludenz
Wörgl
Bischofshofen
Reutte
Schwaz
Imst
Zell / See
Telfs
Landeck
St. Johann/Pongau
INNSBRUCK
Bad Gastein
Lienz
Hermagor
24
A
Waidhofen/Thaya
Gmünd
Laa/Thaya
Retz
Poysdorf
Horn
Zwettl
Grieskirchen
LINZ
Leonding
Traun
Steyr
Zistersdorf
Gänserndorf
Klosterneuburg
Vienna (see
Groß Enzersdorf
map on left)
Bruck/Leitha
Neulengbach
Mödling
Schwechat
Baden
ST. PÖLTEN
Scheibbs
Vöcklabruck
Korneuburg
Tulln
Perg
Melk
Amstetten
Wels
Vorchdorf
Stockerau
Krems
Herzogenburg
Eferding
Ried/Innkreis
Wolkersdorf
Gföhl
Freistadt
Bad Leonfelden
Schärding
Mistelbach
Hollabrunn
Rohrbach
Neusiedl/See
Schörfling
Kirchdorf/Krems
Lilienfeld
Waidhofen/Ybbs
Wr. Neustadt
Gmunden
Mondsee
Bad Ischl
EISENSTADT
Mattersburg
Kremsmünster
Ternitz
Scharnstein Windischgarsten
Neunkirchen
Aspang
Bad Aussee
Kindberg
Liezen
Oberpullendorf
Mürzzuschlag
Kapfenberg
Abtenau
Hartberg
Gröbming
Leoben
Oberwart
Bruck/Mur
Knittelfeld
Güssing
Gleisdorf
Murau
Tamsweg
Weiz
Gratkorn
Judenburg
Voitsberg
GRAZ
Fürstenfeld
Jennersdorf
Feldbach
St. Veit/Glan
Spittal/Drau
Deutschlandsberg
Wolfsberg
Feldkirchen
Leibnitz
Bad Radkersburg
Headquarters/Provincial head offices
KLAGENFURT
Völkermarkt
Villach
Ferlach
Branch offices
NUMBER 1 IN AUSTRIA
For a remarkable 186 years, Wiener Städtische has been the reliable
partner for its customers, a manager for their problems today, and the
provisions they make for the future. Experience, competence, financial strength and innovation are the pillars of our economic success.
»MARKET LEADER
THANKS TO THE
TRUST OF
1.3 MILLION
CUSTOMERS«
Wiener Städtische is the largest single
company in the international Vienna Insurance Group (VIG), with registered office in
Vienna. Wiener Städtische is an independent company that concentrates fully on
activities in the Austrian market and the
branch offices in Italy and Slovenia
Leading market position
The confidence of 1.3 million customers,
a total premium volume of approximately
EUR 2.4 billion in 2010, and a market share
of 14.5% make Wiener Städtische the largest insurance company in Austria. Its customers benefit from its experience, pro-
factbox
>Largest insurance company in Austria,
with a market share of 14.5% and
1.3 million customers
>Nation-wide service provided by nine
provincial head offices, approximately
140 business offices, and 3,500
employees, including 2,000 advisors
> Financial strength provided by good
capital resources and integration into
the Vienna Insurance Group
26
fessional employees and innovative range
of products. The Company operates in all
insurance classes and offers customers security in many areas of life.
Important for the economy
In addition, Wiener Städtische plays a
major role in maintaining Austria’s attractiveness as a business centre, not only as
a major employer, but also as one of the
most important investors in the country.
Sustainable investments and equity investments, and support in the social and
cultural areas are deeply anchored in our
business strategy.
Wiener Städtische also makes a major contribution to the stability and growth of the
Austrian economy by being a reliable partner for industry and large customers. Wiener Städtische is one of the most important
real estate investors in Austria. The investment portfolio is supplemented with real
estate in order to offer customers sustainability and a high level of security.
An insurance partner in all classes
Wiener Städtische operates in the property/casualty, life and health insurance areas, and offers innovative custom-tailored
solutions for private, commercial and corporate customers. Everything is based on
the needs of the market and customers –
in the future, Wiener Städtische will continue to offer products that provide stability
and security in the future, as well as flexibility and convertibility.
A
Proximity to customers and
service orientation
Close to 3,500 employees, including more
than 2,000 advisors, in nine provincial
head offices and approximately 140 business offices provide personal service tailored to individual needs throughout all of
Austria. Use of this regional approach and
strong nation-wide customer service will
continue to be one of the most important
pillars of Wiener Städtische’s success. It
guarantees proximity to customers, rapid
claims settlement, and personal, comprehensive service.
Insurance Group, provides additional stability. VIG’s top listing on the Vienna Stock
Exchange and its success in the CEE region generate significant added value for
Austria as a financial centre.
Due to the events that occurred in financial markets in recent years, the European
Union intends to change its capital requirements (Solvency II). Wiener Städtische is
already well positioned in terms of its riskaware culture and risk management for implementing these rules.
Attractive multi-channel distribution
Our field staff, brokers, agents, and approximately 140 business offices represent
Wiener Städtische’s sales strength. Our
salaried field staff are our strongest channel for private sales, and sales to small and
medium-sized business. In 2008, a new
institutional distribution option, banking
distribution, was added to the previous
successful channels of distribution.
The cooperation with the Erste Bank
Sparkasse Group helps to develop insurance solutions for capital accumulation
using competitive forms of investment.
The cooperation is also being steadily expanded, with the goal of positioning these
two distribution channels as professional
and reliable partners for both banking and
insurance products.
Stability and security
As a result of choosing targeted investments in highly secure projects known
to have good capital resources, Wiener
Städtische is excellently positioned and financially strong, even in times of economic
tension. The broad positioning of Wiener
Städtische‘s parent company, the Vienna
A NNUA L REP O R T 2010 | W iener S tä dt is che
27
THE Vienna Insurance group
The Vienna Insurance Group (VIG) is a listed international
insurance group with its registered office in Vienna. With a
premium volume in excess of EUR 8 billion and approximately
25,000 employees, VIG is one of the largest players in the
insurance market of Central and Eastern Europe.
»MORE STABILITY
AND SECURITY
THROUGH INTEGRATION
IN AN INTERNATIONAL
GROUP«
VIG’s insurance companies offer their
customers high-quality products and
services in the life and non-life areas.
Shares of the Vienna Insurance Group
are listed on the Vienna and Prague
stock exchanges.
VIG’s focused and systematic strategy for
expanding into the CEE region enabled it to
make the leap from being a national insurance company to an international group of
approximately 50 insurance companies in
24 countries. Standing for financial stability, VIG is able to offer customers, shareholders, partners and employees a high
level of security. This is also underscored
by the A+ rating, with a stable outlook,
given to it by the well-known rating agency
Standard & Poor’s.
The CEE growth region
In 1990, VIG was the first Western insurance
company to move into Central and Eastern
Europe – a region that today already accounts for around 50% of total group premiums. The Group has group companies
operating in this region in Albania, Belarus,
Bulgaria, Croatia, the Czech Republic, Estonia, Georgia, Hungary, Latvia, Lithuania,
Macedonia, Montenegro, Poland, Romania, Russia, Serbia, Slovakia, Turkey and
Ukraine. There is also a Wiener Städtische
branch office in Slovenia. VIG is therefore
optimally positioned to participate in the
CEE region’s rising standard of living and
hence in its rising need for insurance.
28
VIG is also represented in Germany, Liechtenstein and Italy.
Core market: Austria
Austria is a key market for the Group; it is
here that the expansion began. The excellent positioning of VIG’s three Austrian
companies, Wiener Städtische Versicherung,
Donau Versicherung and Sparkasse Versicherung, makes it the market leader in
Austria.
Corporate structure redesigned
In 2010, as part of a restructuring, Wiener
Städtische’s operating business in Austria
was separated from the international holding company activities. As a result, VIG now
focuses on management responsibilities
for the Group. The transparent structures
and processes created within the Group
have enabled management to become
more efficient.
All of the Group companies have strong
regional roots, and can also build on VIG’s
strong international background. The restructuring provides them with a common
umbrella and a strong, unifying identity that
extends beyond their individual markets.
Full range of products offered
VIG has more than 185 years of experience
in the insurance business. Committed customer advisors, innovative products, excellent service, and optimal customer access
through multi-channel distribution were
A
MANY BRANDS,
ONE GROUP
and are the cornerstones of the company’s
successful development. VIG also uses a
multi-brand strategy to take advantage of
the power of the proven brands rich in tradition in every country.
The Group companies in Austria have offered innovative insurance solutions tailored to customer needs for many years in
both the life and the non-life areas. In Central and Eastern Europe, the rising standard of living has led to an increased need
for insurance. While motor vehicle insurance and household/homeowner policies
were initially in strongest demand, today
retirement provisions, savings and investment products in the form of life insurance
policies are enjoying rising popularity.
VIG Re was founded to be the Group’s inhouse reinsurance company. Its location in
the Czech Republic underscores the significance of the CEE region as a growth
market.
Employees ensure success
VIG offers the best possible advice and excellent service for its comprehensive range
of products. Group employees therefore
play a very important role in the Company’s
success. Use of a regional approach means
they are always close to the customer and
in touch with the needs of the market.
Further information on VIG is available at
www.vig.com and in its group management
report.
The Erste Group – a strong partner
In 2008, a reciprocal sales and distribution
agreement was signed with the Erste Group
in Austria and Central and Eastern Europe.
Using a multi-channel distribution approach, the Erste Group distributes VIG insurance products, while VIG companies
offer banking products in return. Both VIG
and the Erste Group are professional and
reliable points of contact for banking and
insurance products alike.
29
CLEAR OBJECTIVES AND STRATEGY
Excellent advisors and service, trend-setting products, and
its regional approach and international background have made
Wiener Städtische the clear number 1 in the Austrian market.
And the Company’s goal will continue to be maintaining and
expanding its leadership position in the market.
»FOUR KEY STRATEGIC
PILLARS FOR EXPANDING OUR MARKET
LEADERSHIP«
OBJECTIVES FOR 2011
STRATEGY FOR 2011
In 2010 the Austrian market showed clear
signs of recovering again following the end
of the financial crisis. Premium volume in
the Austrian insurance market as a whole
rose by 2%. Significant growth was recorded in all classes, especially life insurance
and health insurance, but also property/
casualty insurance.
Wiener Städtische is basing its strategy
on four key pillars to achieve its ambitious
goals: innovation, the best possible advisors and service, continuous employee development, and expansion of the partnership with the Erste Bank Sparkasse Group.
In all cases, the central focus is on the customer and their concerns.
Maintain and expand the
number 1 position
Wiener Städtische‘s market share of 14.5%
and premium volume of EUR 2.4 billion
made it the clear number 1 in the Austrian
market. The Company recorded growth at
a rate that was significantly better than the
market average, and even recorded an increase in premiums of more than 5%. This
growth was primarily due to good performance in the life insurance class. Wiener
Städtische will continue to focus on life
insurance and motor vehicle insurance in
2011.
- I nnovation: Optimisation, simplification,
personalisation and tailoring products to
customer needs are the challenges related to products.
- Best possible advisors and service:
Customer satisfaction and, therefore,
the length of customer relationships are
continuously increased by continuous improvements in service.
-C
ontinuous employee development:
Wiener Städtische employees primarily
manage customer problems. The majority
of our employees provide advisory services. Continuous employee development and
training of young advisors ensure continuing success in personal advisory services.
- E xpansion of the partnership with the
Erste Bank Sparkasse Group: Both companies have customer potential that has
not yet been fully exploited. The partnership, which permits customers to obtain
advice on a full range of financial and insurance concerns, will be further expanded and intensified.
Improvement in result from ordinary
activities
Targeted increases in premium volume
and further administrative optimisation of
services and synergies will be used to continuously improve our combined ratio and
result from ordinary activities.
30
A
31
LEADERSHIP AND INNOVATION
Wiener Städtische is currently the market leader in Austria.
This success is due to early attention to important insurancerelated topics, continuous development of new products and
improvement of proven products, as well as customer-friendly
and service-oriented advisory and distribution systems.
»... NEW PRODUCTS
THAT ARE OFTEN
FAR AHEAD OF
THEIR TIME«
A long tradition
During Wiener Städtische’s long and successful history, management and employees repeatedly changed the focus of
insurance product development in Austria
in order to react optimally to changes in
customer needs.
The Company started with non-life insurance, soon followed by the life insurance
class. Today, private customers can obtain
insurance products in all of the important
subcategories, from retirement provisions,
residential, mobility, vacation and health
products all the way to attractive, innovative special solutions, such as insurance
for students.
Wiener Städtische is the reliable partner
for all business customers’ needs, from
company pensions to business insurance
and liability insurance. Integration in the
Vienna Insurance Group enables business
customers to receive the same comprehensive service they are used to from Wiener Städtische in all CEE countries where
the Group is represented.
Product innovation
Wiener Städtische still continues to provide customers with new products that are
often far ahead of their time. For example, retirement pensions were already offered in the 1960s, long before it became
a general topic of interest. Today, nursing
care provisions are also in the centre of at-
32
tention. Wiener Städtische offered its first
insurance solution for nursing care provisions as early as in 1995, in association
with a retirement pension product.
In 2003, Wiener Städtische became the
first insurance company in Austria to offer a government-sponsored pension plan,
thereby starting a trend throughout the
Austrian insurance market. Today, more
than one million Austrians use a product
of this kind, and approximately one in five
are insured with Wiener Städtische. This
makes Wiener Städtische the clear market
leader in this area.
Alternative drive technologies will play an
increasingly important role in the future. In
2006, Wiener Städtische became the first
Austrian insurance company to promote
the sale of environmentally friendly vehicles by offering a premium discount. Today, every second customer already benefits in this way by insuring a low-emission
vehicle.
In the area of property insurance, Wiener
Städtische was the first to expand catastrophic protection in homeowner insurance and increasing the amount insured
for natural hazards. Due to climate change,
this topic will also play an increasingly important role in the future.
Students and customers with little money
often cannot afford comprehensive insur-
ance coverage. Wiener Städtische therefore offers special low-budget insurance
solutions. Customer well-being is our number 1 priority.
Further information on specific products
and changes in 2010 is available on page
48 and on the Internet at www.wienerstaedtische.at
Optimal service
Optimal advice and service is the way to
reach customers with innovative products.
This is why Wiener Städtische has always
relied on a regional approach and multichannel distribution. Close contact with
customers gives sales employees a direct
understanding of customer needs, and
this information flows directly into product
development.
A restructuring was performed in 2010, in
which the business operations in Austria
were separated from the international activities. The new structure allows Wiener
Städtische to concentrate on the Austrian
insurance business, while VIG takes responsibility for holding company activities.
The Group offers its subsidiaries an optimal
operating framework and the opportunity
to take advantage of common structures
and synergies. The customer also benefits
in the end, because more time is available
for providing advice and service.
A
»... WIENER
STÄDTISCHE –
SERVICE-ORIENTED
AND INNOVATIVE,
ON THE PULSE OF
THE TIMES«
New media are also being increasingly
used to further improve service. Whether
it is apps for smartphones or tablet PCs, or
online portals for claims reporting, Wiener
Städtische is service-oriented, innovative,
and on the pulse of the times.
Multi-channel distribution with our partners offers optimal advice and access for
every customer.
Also a trendsetting investor
In addition to playing a leading role in its
core business, the insurance industry,
Wiener Städtische is also an established financial partner, and has made new, trendsetting investments.
In 1990, Wiener Städtische was one of the
first to dare to cross the border to enter
Central and Eastern Europe. Many Austrian companies followed. The CEE region
is still one of the most important, fastest
growing economic areas for the Austrian
economy today. VIG generates a substantial portion of its profits there and continues to steadily expand its position as one
of the market leaders in the region.
33
PROFESSIONALISM AND RELIABILITY
Achieving customer satisfaction and understanding
customer concerns are important priorities for Wiener
Städtische. Providing optimal service and excellent
advisors will ensure continued success in the increasingly
competitive Austrian insurance market.
»2,000 ADVISORS
ENSURE PERFECT
SERVICE«
The best possible service by professional
employees
High quality service and custom-tailored
insurance solutions are key factors in Wiener Städtische’s successful past. Customer satisfaction has been a priority for
186 years. Wiener Städtische’s regional
approach, professional advice and guaranteed availability at all times is made possible by nine provincial head offices, three
service centres, approximately 140 business offices and more than 2,000 advisors.
line claims reporting and benefit claims,
and extensive information on individual
insurance topics. An app for direct claims
reporting has been available for smartphones since 2010. The app also provides
emergency checklists and important first
aid measures.
Optimal solutions
Customer needs are changing, with the
trend moving in the direction of more personalisation. Having professional advisors
as field staff allows customer concerns
and needs to be understood and appropriate solutions provided. Personal service
also promotes customer loyalty when the
advisor is a true “problem manager”. The
experience in previous years indicates that
customer service and personal advisors
will continue to become more important in
the future.
Strong partners
In 2008, Wiener Städtische and the Erste
Bank Sparkasse Group entered into a distribution agreement aimed at providing customers a single source of solutions for all
their financial needs. In addition to proven
insurance solutions, Wiener Städtische’s
professional advisors also offer banking
products to customers.
New service channels
In addition to the use of personal advisors
as field staff, customers can, of course,
also use service hotlines or email to contact Wiener Städtische. Many services are
also available via new media.
The Company’s new website offers customers many easy-to-use tools, such as on-
34
An SMS claims service keeps customers upto-date on the current status of their claims,
and an SMS storm warning service is available free of charge for mobile phones.
Favourably priced account packages, loans
and savings cards with attractive interest
rates provide a complement to the range of
products offered by Wiener Städtische. In
return, insurance solutions were added to
the range of products offered to customers
by the Erste Bank Sparkasse Group. This is
a win-win situation.
A
35
EMPLOYEES AS A KEY FACTOR IN SUCCESS
In addition to optimal products, Wiener Städtische customers
also rely greatly on our excellent service and personal advisors.
Professional, committed employees play a central role in
achieving our ambitious company objectives and making
Wiener Städtische an outstanding company.
Over the course of its 186-year history,
Wiener Städtische has become the largest
employer in the Austrian insurance industry, with a current total of 3,500 employees, including more than 2,000 customer
advisors. A special work environment has
been created around the core values of
fairness and mutual respect.
Education and advanced training
Well-trained trainees are the professional
advisors of tomorrow. Wiener Städtische is
already educating a third of the trainees in
the entire insurance industry. In addition,
the Company also began a trainee initiative
in 2010. More than 100 young career entrants were already hired in the first year,
and another 100 youth trainee positions
will be offered starting in the autumn of
2011.
The Company‘s human resources policy
also contains other key elements in addition to training and advanced training.
Potential analyses across the Group form
the basis for a targeted, needs-oriented
development programme that conveys
technical knowledge and Company values.
Joint training events allow a continuous exchange of best practices between all employees.
Human resources development
Wiener Städtische has a three-level management training programme that provides targeted training in internal, custom-
36
tailored courses for the different target
groups: future/young executives, department heads, and group leaders. The goal
of the programme is to further increase
management quality by teaching modern
management concepts and developing a
shared management philosophy within the
Company. The executives identify themselves with their role and network with
each other. Young employees benefit from
the knowledge and experience of their older colleagues. Attention is consciously paid
to mixing ages in structures and teams to
allow a continuous exchange of experience
and knowledge transmission.
This programme makes an important contribution to the professional and personal
development of Wiener Städtische‘s executive employees, and ensures the longterm success of the Company.
Employee ideas and experience also contribute to the development of new Wiener
Städtische products and services and further development of existing products and
services. A variety of internal company
competitions provides a good incentive to
become actively involved.
Gender equality
Wiener Städtische views equal treatment
of men and women as a key objective at all
levels. Two women and mothers in a fivemember Managing Board, and 35% women in middle management provide impressive proof of this. Wiener Städtische feels
that the corporate income transparency
amendment that entered into force on 1
March 2011 provides another good contribution to equal treatment. There are also
other initiatives, such as “Daughters’ Day”
and a variety of other measures for creating
a balance between career and family.
In 1974, Wiener Städtische became one
of the first employers in Austria to provide
company day-care facilities. Today, 105
employee children are looked after in these
facilities. The Company also offers flexible
working time and work organisation models for its employees. One pleasing result of
this is that 90% of all employees return after maternity leave. Wiener Städtische has
been one of the most family-friendly, women-friendly companies in Austria for years,
and has received many awards in this area.
A
Equal treatment is, of course, also reflected
in terms of migration. Multilingual skills are
an important factor for customer information at Wiener Städtische and are actively
promoted. English is already a minimum
requirement in all areas.
For years now, the Company has taken the
view that people with certain disabilities
can perform their work just as efficiently
as people with no disabilities. Wiener
Städtische therefore provided positions for
96 employees with disabilities in 2010, a
number considerably higher than the statutory requirement.
»OUR EMPLOYEES –
THE BASIS OF OUR
SUCCESS«
Employment statistics as at
31 December 2010
Number of employees
2009
as at
31.12.
2010
as at
31.12.
Change
Administration
Headquarters
1,526
873
1,546
1,030
20
157
653
516
-137
1,884
1,802
-82
1,654
1,598
-56
230
204
-26
149
3,559
149
3,497
0
-62
Provincial head offices
(+ branch offices)
Distribution
Field sales
representatives
Organisational
employees
Trainees
Total
- 62 fewer employees, the decline is mainly due to natural turnover without replacement
and combining of duties during the structural reorganisation of the Company
- The number of office employees rose by 20 to 1,546 in 2010 due to reassignment
of authority when the Company was separated from the Group
- Of the 1,546 office employees, 593 were men and 953 women
- 96 employees with disabilities
37
SUCCESS CAN BE SHARED
As the largest insurance company in Austria, Wiener Städtische
is aware of its responsibility to society. It therefore provides
a wide range of programmes and targeted support for
social causes, culture and the arts, sports, and the area
of child and youth development.
People form the core of Wiener Städtische.
Respectful and fair treatment of customers,
as well as employees, ensures the sustained, long-term success of the Company.
This success can be shared.
factbox
Wiener Städtische’s
most important sponsoring areas:
>Social involvement: cooperation with
the “Second Savings Bank” (Zweiter
Sparkasse), the “Bank for People without a Bank”, and a number of types of
ooperation with many aid organisations.
>Children and youth: many support
projects, such as the Children Safety
Olympics, the Zoom Children‘s
Museum, and cooperation with the
Kinderfreunde organisation.
>Culture & the arts: Wiener Städtische
supports many cultural projects, theatre productions, and film and music
festivals.
>Sports & exercise: sponsoring of
Austrian sports associations and
major events, such as the Vienna City
Marathon and Business Run.
38
Wiener Städtische has made it a goal to provide support as a partner to many social,
sports, cultural and forward-looking initiatives. People and sustainability are always a
priority. Wiener Städtische receives support
in many areas from its principal shareholder
WIENER STÄDTISCHE Wechselseitiger Versicherungsverein - Vermögensverwaltung Vienna Insurance Group.
Social initiatives
Social involvement is especially important
to the Company, and is deeply anchored in
its business philosophy.
People in need are in particular need of support – Wiener Städtische was the first Austrian insurance company to address the
topic of micro-insurance. In cooperation
with the “Second Savings Bank” (Zweite
Sparkasse), these people are offered very
low-cost or free banking and insurance
services.
The number of people requiring nursing
care is rising rapidly in Austria. Wiener
Städtische therefore supports initiatives in
the area of nursing care and works together
as a partner with aid organisations such
as Caritas, Hilfswerk, Volkshilfe and the Red
A
Cross throughout Austria to provide nursing
care to those who require it.
Arts and culture
Wiener Städtische actively promotes the
development and diversity of the cultural
sector in Austria by providing personalities
of the cultural scene with additional opportunities and freedom for artistic development. The VBW theatre company (Vereinigten Bühnen Wien), St. Margarethen Opera
Festival, Bregenz Festival, Viennale, Danube Island Festival and the “Long Night of
the Churches” (Lange Nacht der Kirchen)
are only a few examples of the many different organisations receiving support from
Wiener Städtische.
As part of the “RINGTURM.KUNST” exhibition, Wiener Städtische presented more
than one hundred selected works from its
collection in the Leopold Museum from 21
October 2010 to 14 March 2011. This is the
first time that a broad cross-section of the
Wiener Städtische collection, which focuses
on paintings and graphic art from 1945 to the
present, has been presented to the public.
Children, youth and families
Sports activities, projects on the topic of
security or in the cultural area, and support
for children and youth are of particular
importance to Wiener Städtische. Wiener
Städtische has worked with the Kinderfreunde organisation for many years, and
provides support for the Zoom Children’s
Museum, and the Safety Tour, which gives
children across Austria an understanding of
safety.
Sports
Whether the Business Run, Wachau Marathon, Vienna City Marathon or the Vienna
Street Soccer, Street Basketball and Beach
Volleyball Championships (Käfigmeisterschaften), sports are important for maintaining good health. Wiener Städtische provides support for public sports events that
allow as many people as possible to participate and achieve their personal best.
The environment
Small ideas can have a great effect. The
scale of the company can often turn small
changes into big effects. Changes that are
almost insignificant for a single person, such
as printing on both sides of a sheet of paper,
instead of using two pages, produce big effects when applied by 3,500 employees.
Wiener Städtische attempts to actively integrate environmental protection as a part of
the everyday work environment and create a
strong sense of environmental awareness in
the office. In 2006, Wiener Städtische became the first programme partner for the
Austrian Ministry of Life’s klima:aktiv climate
initiative.
Detailed information on Wiener Städtische’s
many activities in the area of Corporate
Social Responsibility are available at
www.wienerstaedtische.at.
39
WIENER STÄDTISCHE NEW
Welcome to the future!
Wiener Städtische is a wholly-owned subsidiary of
the Vienna Insurance Group and number 1 in the
Austrian insurance market.
»FULL CONCENTRATION ON AUSTRIA«
A look back explains the way to the new
company structure: Over the last two decades Wiener Städtische has developed
from a successful local insurance company
to a group operating internationally. Against
this background, Wiener Städtische was
responsible for a variety of control tasks in
addition to the insurance business operations.
factbox
> New corporate structure of Wiener
Städtische legally binding since
3 August 2010.
> The Managing Board of Wiener
Städtische is composed as followed:
Robert LASSHOFER, CEO
Christine DORNAUS
Judit HAVASI
Peter HÖFINGER
Erich LEISS
Ralph MÜLLER*
* Effective 1 April 2011, Ralph Müller
is appointed a member of the Managing
Board of Wiener Städtische.
40
A NN UAL RE POR T 20 1 0 | WI E NE R STÄ DTI SCH E
To do justice to the dynamic expansion, the
company decided to create a new corporate structure and to separate the Austrian
insurance business from the international
activities of the group.
At the general meeting of Wiener
Städtische on 29 June 2010, the split-off of
the entire insurance business into a whollyowned subsidiary was resolved. The resolution was passed with 100% of the votes
present at the general meeting.
The new organisational structure became
final on 3 August 2010 and took effect
retroactively as of 1 January 2010.
Since then, VIENNA INSURANCE GROUP
AG Wiener Versicherung Gruppe, as a publicly traded holding company, has been
responsible for the control of the group in
Austria and Central and Eastern Europe.
WIENER STÄDTISCHE Versicherung AG
Vienna Insurance Group continues to be
the group’s largest individual property/casualty, life and health insurance
company in Austria. As a result of the corporate reorganisation, Wiener Städtische
can fully concentrate on the Austrian market. The new structure provides transparency and a strong starting position for the
future.
COMPANY & STRATEGY |
MAJOR TOPICS 2010 | MANAGEMENT REPORT 2010 | ANNUAL FINANCIAL STATEMENTS 2010
EXPANSION OF THE SERVICE CENTRES
Still more customer service, more efficient communication
and optimisation of the cost position are the essential
basic ideas of the bundling of activities in
Service Centres.
B
As early as in 2009, Wiener Städtische
started a future-oriented reorganisation
programme to create clear new structures
and allow an even more efficient processing
of the insurance business.
As part of the restructuring measures, three
new Service Centres for the areas of personal insurance, property insurance and
collections were established. The Service
Centres assume the administrative agendas for all of Austria. This relieves the individual provincial head offices so that they
can concentrate even better on their core
businesses, customer service and sales.
Bundling of underwriting and claims units
creates synergy effects that allow expansion of expertise through specialisation.
Standardised and uniform processing of all
cases offers customers an even higher level
of quality and employees a more structured
work environment. Not least, bundling has
a positive effect on the cost position.
Personal Insurance Service Centre
The Personal Insurance Service Centre has
been responsible throughout Austria for
policy and claims processing for standard
personal insurance transactions since
September 2009. The bundling of life,
health and casualty insurance classes was
successfully completed in March 2010 as
scheduled.
Property Insurance Service Centre
The Property Insurance Service Centre
assumes the policy and claims processing
for standard property insurance transactions (motor vehicle, homeowner, household and legal expenses claims).
The Property Insurance Service Centre is
divided into two locations – Vienna and Linz.
The Property Insurance Service Centre
located in Linz manages Upper Austria and
Salzburg; the other provinces are managed
in Vienna. The assumption of the agendas
of the provincial head offices was completed in January 2011, faster than scheduled.
»THE GOAL IS TO
OFFER EVEN HIGHER
SERVICE QUALITY TO
OUR CUSTOMERS.«
Collections Service Centre
The responsibilities of the third service
centre cover the entire spectrum of collection services.
The bundling of collections activities was
successfully implemented over the course
of the past year. In the course of the combining exercise, all business processes
were streamlined and the workflow was
optimised. Top priority is to process external and internal customer requests quickly
and professionally.
ANNU AL REPORT 2010 | WI E NE R STÄ DTI SCH E
41
CHARGES FROM NATURAL DISASTERS
Since the year 2000, the frequency of damage
caused by natural disasters has significantly
increased worldwide.
»WHETHER
PRIVATE OR
BUSINESS – WE
OFFER INSURANCE
COVERAGE WORLDWIDE FOR NATURAL
DISASTERS.«
The more and more frequently observed
weather extremes can hardly be explained
without climate change. Over the last 30
years their number has tripled. Weather
disasters are storms like Hurricane Katrina
or Kyrill, floods as we experienced in many
parts of the world in 2010 or the heat wave
in Russia and the forest fires in Israel.
The climate changes in the last century are
probably the result of man-made greenhouse gases. Deforestation, agriculture and
waste management also play a role. The
concentration of greenhouse gases in the
atmosphere is increasing, and it is getting
warmer.
In many parts of the world, the effects of
global warming can already be seen clearly:
snow and ice layers melt, global sea levels
rise, and glaciers retreat. According to the
current state of climate research, it is likely
that our environment will also change in the
future. It can be expected that extreme
weather events will occur more often.
Natural Hazards in 2010
The year 2010 was marked worldwide by
strong earthquake occurrences and a high
number of weather disasters. The major
losses in 2010 occurred mainly outside
Austria. Since Wiener Städtische assists
Austrian companies abroad and offers
42
comprehensive insurance coverage to
business customers, Wiener Städtische was
also affected by numerous major losses.
The earthquake in Chile in February 2010
had a magnitude of 8.8 Mw on the moment
magnitude scale and was the strongest
earthquake in Chile in almost 50 years.
Wiener Städtische was affected by Austrian/European risks with interests abroad.
In May and June 2010, there was severe
flooding in Austria, the Czech Republic,
Slovakia and Poland. Wiener Städtische
processed about 2,900 individual claims
and alleviated at least the financial difficulties of the customers.
Between 6 August 2010 and 8 August
2010 there were heavy rains in the Czech
Republic, Austria and Poland. In Austria,
about 230 reports of damage were filed.
However, in Poland, the branch office of an
Austrian customer was also affected, with
the damage incurred there accounting for
most of the claim amount.
In November 2010, Thailand was afflicted
by the heaviest floods in recent decades.
Wiener Städtische was affected by this
natural disaster through the coverage of
Austrian risks abroad.
After several years of increased claims, it
was possible to reduce the claims rate for
damage caused by storm and other natural
hazards in Austria – despite isolated local
events with a low damage volume.
Insurance Coverage
Wiener Städtische offers comprehensive
insurance coverage in the event of natural
disasters. As part of the homeowner insurance System Plus, an insurance amount of
up to 50% of the agreed building and
household insurance amount can be
agreed for damage caused by natural phenomenons. This is a unique coverage in the
Austrian market.
.
With this high financial performance,
Wiener Städtische is well above the market
level. In the case of imminent acts of God,
Wiener Städtische reminds its customers
through an SMS severe weather service
and thus makes it possible for prevention
measures to be taken early enough.
In addition to private protection against
natural disasters, Wiener Städtische also
offers insurance coverage to business establishments (business class) and farms
(eco/agro) for damage caused by natural
hazards such as flooding and floods, depending on the product version and size of
the business.
B
.
43
FOCUS ON RETIREMENT PROVISION
Confidence in the state pension system is falling but
the need for financial security and the desire to
maintain one’s standard of living
even in old age is increasing.
»MORE AND MORE
PEOPLE ARE
INVESTING IN A
PRIVATE PENSION
PROVISION.«
The demographic structure of the population has changed significantly in the past
few decades. People are getting older. The
same is true for customers of Wiener
Städtische: 45% of customers are in the
age group 40-59 years and 25% in the age
group 20-39 years.
Financial Security in the Future
Life insurance is the most popular provision
instrument for securing the standard of
living in old age – ideal to make targeted,
long-term and safe provisions. On the one
hand, life insurance is a good investment
product; on the other hand, it covers many
risks. Traditional life insurance, for example,
offers a guaranteed rate of return and protection in case of death; annuity insurance
policies cover the longevity risk and secure
lifelong capital requirements. Private pension provision has developed into an indispensible pillar in the pension system.
Change of Trend in Life Insurance
As a result of the financial crisis in 2008,
there was a trend towards fewer new life
insurance policies; in uncertain times,
decisions on long-term financial commitments are naturally postponed. Given the
economic recovery, the needs of customers
for safe and conservatively invested provision products are awakening again.
44
The life insurance market – in recent years
driven primarily by expectations of return –
is currently undergoing a transformation.
Products offering capital guarantees and
flexible investing in uncertain capital market phases are gaining in importance. In
particular, traditional life insurance was a
branch of insurance in high demand in
2010.
In the coming year as well, private pension
provision will be a large thematic focus of
Wiener Städtische.
Top Trend: Government-Subsidised Additional Pension Plans
Wiener Städtische Versicherung has been
offering its government-subsidised old-age
provision product, “Prämienpension”, since
2003. As a supplement to the state pension,
“Prämienpension” is an ideal product to
build an additional capital stock for old age.
More than 230,000 customers have already opted for the “Prämienpension” and
more than a third of these customers are
under 30: this means that pension provision is starting earlier and earlier.
When paid out as a pension, the premiumsubsidised old-age provision product is
exempt from income tax and investment
income tax. No insurance taxes or speculative taxes need to be paid.
In 2010, the government subsidy was 9%
of the premiums paid, up to a maximum
of EUR 2,263.70. In 2011, there is a government subsidy of 8.5% for premiums
paid up to EUR 2,313.30 – that is up to
EUR 196.60 per year.
As part of the lifecycle model introduced in
early 2010, 30% of the premiums are invested in the Ringturm Zukunftsvorsorge
Aktienfonds equity fund and at least 70%
are invested in the traditional cover fund in
accordance with the Versicherungsaufsichtsgesetz (VAG, Austrian Insurance
Supervision Act). With advancing age, investments in the Ringturm Zukunftsvorsorge Aktienfonds equity fund will be transferred to the security-oriented cover fund.
The statutory minimum percentage invested in equities decreases to 25% starting at age 45, and to 15% starting at age 55.
This reduces the risk due to price fluctuations on the stock exchanges as retirement
approaches. The combination of equity
funds and cover funds links income opportunities and security.
In case of policies purchased before
31 December 2009, 60% of the investment
is in the traditional cover fund and 40% in
the Ringturm Zukunftsvorsorge Aktienfonds
equity fund. Wiener Städtische also offers
existing customers the option of changing
over to the lifecycle model.
In 2010, the financial crisis resulted in the
stopping (Ausstoppen) of policies for many
funds in which money from the government-subsidised old-age provision had
been invested under a CPPI model. This
means that under certain circumstances no
more than the capital guarantee will be
received for the premiums paid in previously and the subsidies obtained. Participation in stock price gains for such models
has often dropped to zero. With the
“Prämienpension” product of Wiener
Städtische, such stopping is not possible
due to the product structure. The Ringturm
Zukunftsvorsorge Aktienfonds equity fund
is not managed and secured by a CPPI
model and therefore not affected by this
problem. Thus, the percentage invested in
equities fully affects net income. Despite
the stock market losses due to the financial
crisis, the Ringturm Zukunftsvorsorge
Aktienfonds equity fund has had an average performance of 6.2% per year since the
introduction of the government-subsidised
old-age provision in 2003.
The “Prämienpension” product, which
combines all of the life insurance benefits –
protection, tax advantages, government
subsidy, guarantees and return opportunities through investments funds – will represent a core product of Wiener Städtische in
2011 as well.
B
»THE “PRÄMIENPENSION” PRODUCT FOR
OLD-AGE PENSION
PROVISION IS ALL
THE RAGE.«
Company Pension Plans
The company pension plan is on the rise –
even though, compared with other countries, Austria has much catching up to do.
There are still too few tax incentives for
both employees and employers. A market
that certainly has potential – not only for
the coming year.
45
»WIENER
STÄDTISCHE IS
A PIONEER OF
NURSING CARE
PROVISION.«
Nursing Care Provision is Gaining
Importance
The cost of nursing care will dramatically
increase in the coming years. Care for the
elderly is becoming increasingly costprohibitive for the state and is therefore a
highly charged topic in society.
Whereas private pension provision has
been actively demanded by the population
for years now, there is a great need for
factbox
> Change of trend in life insurance: Traditional life insurance is gaining importance again in 2010.
> More and more Austrians invest in private pension provision, with the
“Prämienpension” product of Wiener
Städtische keeping in line with the
trend.
> With more than 23,000 policies, Wiener
Städtische is a pioneer of nursing care
insurance. Public awareness must still
be increased.
catching up with nursing care provision.
While the problem of nursing care financing
is largely known, public awareness of the
necessity of early nursing care provision
still needs to be increased. A government
incentive for private provision – similar to
that of old-age pension provision – could
achieve a lot here.
Since 2004, Wiener Städtische has offered
comprehensive, affordable and flexible
nursing care insurance that can fill the
nursing care provision gap and help relieve
the financial situation that arises when
nursing care is needed.
EXTRA-Pflege payments are made in parallel with government nursing care allowances and enable policyholders to live and
receive care according to their individual
needs, whether at home or in a nursing
home. The care level at which benefits
should start and the amount of the care
allowance can be freely chosen. ExtraPflege payments are made twelve times a
year during the entire period that nursing
care is required, and for an entire lifetime if
necessary.
Wiener Städtische had registered more
than 23,000 nursing care policies by the
end of 2010, making it a trailblazer in the
area of nursing care insurance.
.
46
B
47
PRODUCT AND SERVICE INITIATIVES
Wiener Städtische is the market leader and pioneer in
the development of innovative products tailored
to the customers’ personal needs.
»PRODUCTS
OFFERING CAPITAL
GUARANTEE AND
FLEXIBLE INVESTMENT ARE GAINING
IMPORTANCE.«
NEW PRODUCTS IN 2010
In 2010, numerous products were relaunched. This improves the high quality of
insurance protection even further. The new
benefit packages secure the customers’
most important basic needs and allow even
more personal customer responsiveness
through supplementary options.
The following are the major product innovations in 2010. Detailed product information
is available on the company’s website at
SECURE INVESTMENT FOR
THE FUTURE
Limited Edition Series
In 2010 Wiener Städtische launched attractive products as part of the Limited
Edition Series. These provision products
provide a safe investment, are a good alternative to savings accounts and ideal as
financial security for family members. The
fixed endowment benefit is assured by
Erste Group Bank AG in the form of subordinate bonds and, since 2011, with a senior
bond.
Limited Edition Garant 2010
With the Limited Edition Garant 2010,
158% of the investment sum is paid out
after 12 years after a one-time payment of
at least EUR 5,000. The index-linked single-
48
premium product offers the insurance
protection and the tax advantages (free of
investment income tax) of a life insurance.
The product enjoys an impressive rate of
return which is 3.9% p.a.; this corresponds
to an interest rate of 5.2% p.a. for a traditional savings product subject to investment income tax.
Limited Edition SOLID 150
Single Premium
The Limited Edition SOLID 150 singlepremium product guarantees a net premium of 150.8% after a term of 12 years
(deposit excl. insurance tax).
Limited Edition SOLID 175 + Inflation
Protection
In February 2011 Wiener Städtische
launched the new provision product Limited Edition SOLID 175 + Inflation Protection. The index-linked single-premium
product generates at least 175% of the net
premium after a term of 15 years (deposit
excl. insurance tax). One innovation is the
protection of the invested capital from the
effects of high inflation. If the total increase
in the European price index HICPxT (excluding tobacco) is higher than the minimum return of the investment, the payment
will increase accordingly. Other highlights
include the flexibility of the product during
the term. The product offers a one-time
withdrawal of 25% as of year 6 of the insurance policy and, as of a one-time premium
of EUR 10,000 with annuitisation, a guarantee is offered in accordance with the
annuity table AVÖ 2005 R.
Similarly, two new products were launched
in 2010 for regular premium payment.
Limited Edition Euro Garantie 2010
Limited Edition Euro Garantie 2010 is a
traditional endowment insurance optimised
for a policy term of 12 years. For this product, payment of the insurance sum is guaranteed by Wiener Städtische. An attractive
profit participation offers additional earnings potential.
United Funds of Success Garantie II
With United Funds of Success Garantie II,
the unit-linked life insurance with guarantee fund was relaunched. The WSTV ESPA
Garantie II guarantee fund of Erste Sparinvest KAG offers a daily adjusted and valid
80% maximum guarantee provided by
Erste Group Bank AG.
provision. In particular, young people are in
hospital more often due to an accident than
due to illness. Nevertheless, the product
additionally offers insurance coverage for
serious illness. A particular advantage is the
possibility to switch. Until their 40th birthday, customers can switch to an extended
Special Class policy every year without
having to undergo another medical examination.
ZukunftsPLUS
For private health insurance, Wiener
Städtische offers its customers a lifetime
reduction of the premium starting at age 65
optionally by 50% or 25%with the new
supplementary ZukunftsPLUS insurance.
The new product offers significant financial
relief for the 65+ generation with the same
benefits. What makes ZukunftsPLUS
unique is that customers will receive a
refund (saved-up cover reserve of the ZukunftsPLUS policy) in case of cancellation
of the Special Class and the supplementary
insurance until age 65.
B
»EARLY DETECTION
OF LONG-TERM
TRENDS IS ONE OF
OUR STRENGTHS.«
THE FOCUS IS ON HEALTH
The products of Wiener Städtische in the
area of health care provision were in high
demand in 2010. The new attractive product solutions or product components contributed significantly to this success. They
are easy to combine and can therefore be
adjusted to the customers’ personal needs
and different life situations.
TOP MED-Option
The TOP MED Special Class Insurance of
Wiener Städtische offers customers all of
the advantages available to private patients.
With the new variant TOP MED Option,
Wiener Städtische has launched an ideal
product for young people. It offers insurance protection after accidents and is affordable for newcomers to health care
One-bed room charge
With the new one-bed room policy as a
supplement to the Special Class, Wiener
Städtische offers its customers even more
convenience when they are in hospital. In
addition to advantages, such as free choice
of hospital and physician, short waiting
times and state-of-the-art treatment methods, Special Class patients enjoy absolute
privacy. Instead of the Special Class twobed room, costs for staying in a one-bed
room are guaranteed with this policy.
In recent years a growing trend towards the
one-bed room has been noticed. The Special Class additional coverage for the onebed room is available starting at a premium
of six euros per month.
49
»WE OFFER
A MOTOR VEHICLE
BONUS FOR
ENVIRONMENTALLY
CONSCIOUS
CUSTOMERS.«
INSURANCE POLICIES FOR SMALL
BUDGETS
Insurance protection should not be a question of money. Wiener Städtische therefore
offers people or students with only a limited
budget insurance solutions at low cost.
Household/homeowners insurance NEW
The new variant of the household and homeowners insurance for the small wallet
offers comprehensive insurance protection
for little money. Risks such as fire, water
damage and burglary damage, including
vandalism, are covered. In addition, insurance protection with as-new replacement
value and underinsurance waiver also apply
to the small variant. Extended natural hazard coverage, for example, for flooding, high
water and rainfall, up to EUR 2,000 is new.
The product is characterised by solid basic
coverage at an affordable premium and by
the possibility to determine the insurance
amount individually.
Climate and Environmental Bonus
With its climate and environmental bonus,
for five years now Wiener Städtische has
been offering two attractive products, designed to promote the purchase of environmentally friendly motor vehicles.
The climate bonus promotes the purchase
of low-emission vehicles with emissions of
up to 160 g CO2/km by providing a premium discount of 10% for motor vehicle
liability insurance. Since there are now
more and more vehicles with even lower
CO2 emissions available in the market, this
bonus has been extended. For emissions of
up to 120 g CO2/km, customers of Wiener
Städtische receive a 20% premium discount.
“Take it easy” Student
With its “Take it easy” product offering,
Wiener Städtische launched ideal insurance solutions for young adults who have
not yet completed their education. The
products meet customer needs and offer
affordable insurance protection in the areas of household, health, and casualty
insurance as well as pension provision. The
consistently high demand proves that there
is much need for these products.
The environment bonus promotes the purchase of natural gas-powered vehicles,
electric or hybrid vehicles and other alternative drive concepts by providing a 10%
premium discount for motor vehicle thirdparty liability insurance.
MOTOR VEHICLE BONUS FOR
ENVIRONMENTALLY CONSCIOUS
CUSTOMERS
In 2011 as well, Wiener Städtische will be
working on new quality in the area of products. Customers now want a product that
meets their personal needs and can be
adapted to different life situations. The
trend towards customisation is increasingly
noticeable. The fact that many insurance
products have become more complex led
to the conclusion that simplification in the
product area will play an increasingly grea-
With 600,000 customers in its motor vehicle liability insurance and more than
200,000 customers in its motor vehicle
own-damage insurance, Wiener Städtische
is one of the leading providers of motor
vehicle insurance in Austria. Consulting,
50
leasing, insurance protection and registration are offered from a single source. In this
area, Wiener Städtische is a pioneer in
offering environmentally friendly motor
vehicle insurances.
Already one in two people benefits from the
Wiener Städtische motor vehicle insurance.
PRODUCT INITIATIVES IN 2011
ter role in the future. This, in turn, will lead
to new quality in consulting and thus in
customer relations. Therefore, Wiener Städtische places a focus on product development in 2011.
SERVICE INNOVATIONS
To further improve services, Wiener
Städtische will increasingly use new technologies in the service area. New media,
such as the Internet and apps, not only
revolutionize claims reporting but also offer
customers a quick and mobile information
platform. Security and service for our customers are the focus of our efforts.
Claims Service App
Since 2010, Wiener Städtische has been
offering a free claims service via app. This
mobile service allows customers to get in
contact with Wiener Städtische directly
from the accident site and to report the
circumstances of the damage by transmitting pictures. Motor vehicle damage as well
as damage due to severe weather, fire,
burglary, etc. can be reported.
In addition to claims forms, the app provides information, checklists, the most
important first-aid measures and an emergency call. The Claims Service App can be
downloaded from the website and the App
Shop.
Claims Service SMS
Another innovation in the service area is
the Claims Service SMS. Upon request,
Wiener Städtische customers are kept upto-date by SMS about the current state of
processing of their claim. In the event of a
loss, customers will be notified when the
claim is opened, when payment is made
and when the claim is finally completed.
The service is available to all customers
after initial activation when a policy is pur-
chased or also subsequently and applies to
the entire customer relationship.
SMS Storm Warning Service
A free SMS storm warning service is available to a broad customer base so that preventive measures can be taken in time. The
storm warning service is available free of
charge to customers as part of their homeowners and household insurance. The
warnings relate to weather events such as
thunderstorms, hail, windstorms, heavy rain,
snow and black ice.
New company website
The new company website of Wiener
Städtische offers the general public and
customers of Wiener Städtische an attractive information platform. The website
offers extensive product information, best
service and many additional features.
User-friendliness, design and function
meet the current requirements.
B
»WITH THE
CLAIMS SERVICE APP
WE SET NEW STANDARDS IN CUSTOMER
SERVICE«
Thanks to the clear presentation of the
products, the new website is also a valuable
tool for sales support. The good clarity and
user-friendly forms facilitate Internet use in
the solicitation of bids or purchasing policies online. A service summary page bundles the most important contact platforms
and service numbers, such as online claims
notification and motor vehicle registration.
Another important part of the service pages
are tips to avoid damage.
The new company website allows modern
and fast communication with custommers
and
can
be
visited
at
51
ADVERTISING IS WELL RECEIVED
Wiener Städtische is successfully present in the market!
The current advertising campaigns convey values such as
safety and security and their clear product
messages are persuasive.
»THE TV CAMPAIGN
‘THE NEIGHBORS’
SCORES WITH ITS
LIKEABLE ACTORS.«
TV campaign
The best stories are written by life. Wiener
Städtische also feels this way, and directs
enjoyable episodes around a single woman,
her daughter and the attractive neighbour.
The aim of the campaign is to create a
series that would involve the public in a
story from everyday life.
The campaign started in November 2009
with a trailer that introduced the story and
the individuals involved. The very first
commercial “Meeting each other” received
a highly positive audience response.
The second episode followed in the summer of 2010. The single woman, who has
just moved in, introduces herself to the
neighbour who asks her over to his apartment. The new neighbour signals that he is
someone who thinks about providing for the
future. This lets an appealing reference be
made to Wiener Städtische’s “Prämienpension” pension product, the subsidized oldage provision.
The continuation of the TV campaign with
the “Burst pipe” commercial has been
entertaining viewers since November 2010.
The new neighbour is asked for help. A
burst pipe in the kitchen – in one’s own
home – communicates how helpful house-
52
hold insurance is. In this episode, the teenage daughter also plays a role for the first
time since the beginning of the campaign.
The “Burst pipe” commercial has gained
much attention among viewers.
In the Gallup Top Ten, the “Burst pipe”
commercial excelled as the TV commercial
with the strongest impact in the year 2010.
Furthermore, for the “Big 3”, the TV advertising campaigns of the year with the
strongest impact, the campaign “The dear
neighbours” won first prize. This double
award shows that the concept chosen is
very well received by viewers.
Wiener Städtische’s General Manager
Robert Lasshofer is pleased: “The campaign conveys perfectly the essence of the
Wiener Städtische Versicherung brand
which is at its customers’ side as a reliable
partner in different life situations. The success of the campaign confirms our belief
that good neighbourliness pays off – both
in business and in our TV stories.”
The series concept of Wiener Städtische
conveys not only product messages but
also values such as trust, reliability and
proximity.
B
Print campaigns
Consistent with the relevant TV commercial
and the product associated with it, the
main actors from the TV commercial can be
seen in magazines and newspapers. In
addition, the “Worry-free” campaign with
the main actors from the TV commercial
was shown in the form of a picture story on
billboards all over Austria in September
2010.
Image campaign
We wish your problems were ours – the
slogan of Wiener Städtische is well known.
In image promotion, Wiener Städtische is
very much to the point, or rather to the
letter. Because the current campaign focuses on the essentials. Key words like trust,
security, burst pipe and care convey strong
values and clear product messages.
53
MANAGEMENT REPORT 2010
BUSINESS DEVELOPMENT 2010
Wiener Städtische is an independent insurance company
and number 1 in the Austrian insurance market. It operates
in the property/casualty, life and health insurance segments. Wiener Städtische has branch offices in Italy and
Slovenia.
Wiener Städtische is a wholly-owned subsidiary of VIENNA
INSURANCE GROUP AG Wiener Versicherung Gruppe,
which received a confirmation of its existing A+ rating
with stable outlook from the international rating agency
Standard & Poor’s in 2010.
In August 2010, the insurance business operations of
VIENNA INSURANCE GROUP Wiener Städtische
Versicherung AG (now VIENNA INSURANCE GROUP AG
Wiener Versicherung Gruppe, FN 75687f) were spun off
to VERSA-Beteiligungs AG with retroactive effect as of
1 January 2010, while claiming the reorganisation tax privileges provided for under Art. VI of the Austrian Reorganisation Tax Act (Umgründungssteuergesetz).
Since the previous year values for 2009 come from the
annual financial statements of VERSA-Beteiligungs AG, and
the comparability of these values is extremely limited due
to the completely different structure of the business, the
commentation in the management report uses “2009 pro
forma values” based on the results of VIENNA INSURANCE
GROUP Wiener Städtische Versicherung AG including holding company responsibilities in 2009. These previous year
values and the 2010 year-end values have limited comparability.
The limited comparability of investments and of the financial result arises because the shares in affiliated companies
(primarily insurance companies in Eastern Europe) were
retained by the newly created holding company (VIENNA
INSURANCE GROUP AG Wiener Versicherung Gruppe)
during the demerger.
54
The holding company also took over insurance business
during the financial year. In addition, VIENNA INSURANCE
GROUP AG Wiener Versicherung Gruppe and the Company
are also related in terms of reinsurance business. These
two factors must be taken into account when comparing
underwriting items.
All disclosures, rates of change and previous year values
presented in this management report therefore refer to
these (unaudited) “pro forma values”.
Premium income
In financial year 2010, Wiener Städtische generated a total
premium volume of EUR 2,432.80 million, representing a
4.2% increase over 2009. EUR 2,419.86 million of these
total premiums were generated from direct business and
EUR 12.94 million from indirect business. Of the gross
premiums written, EUR 2,001.49 million were retained by
Wiener Städtische, and EUR 431.31 million ceded to reinsurance companies.
The property/casualty segment contributed EUR 1,046.52
million, or 43.0%, of the total premiums, the life insurance
segment EUR 1,058.52 million, or 43.5%, and the health
insurance segment EUR 327.76 million, or 13.5%.
COMPANY & STRATEGY | MAJOR TOPICS 2010 |
Expenses for claims and insurance benefits
Expenses for claims and insurance benefits were
EUR 2,252.98 million in 2010, including the change in the
mathematical reserve.
Operating expenses
Administrative expenses were EUR 423.40 million.
Wiener Städtische key figures (UGB)
in million EUR
thereof property/casualty
thereof life
thereof health
Financial result
1)
Gross expenses for insurance claims
Result from unrealised gains and losses
from unit- and index-linked life insurance
items
Gross administrative expenses
Result from ceded reinsurance
Other income/ expenses (net)
Result from ordinary activities
thereof property/casualty
thereof life
thereof health
2)
Investments
3)
Coverage of capital requirements (in %)
1)
2)
3)
2009
2010
2,334.87
1,076.11
937.40
321.36
335.65
-2,155.66
2,432.80
1,046.52
1,058.52
327.76
388.39
-2,252.97
199.55
-434.34
-83.32
-26.77
169.98
148.51
9.64
11.83
14,633.13
10,348.57
698.56
174.83
-423.40
-104.08
-28.01
187.56
123.34
40.63
23.59
12,510.59
10,990.58
226.30
MANAGEMENT REPORT 2010 | ANNUAL FINANCIAL STATEMENTS 2010
Financial result
Wiener Städtische’s financial result increased to
EUR 388.39 million in 2010. The increase is due to positive
growth in earnings from securities and loans. The extraordinary financial result also increased significantly compared to the previous year. This was due to smaller writedowns and realised gains from sales.
Investments
Investments were EUR 12,510.59 million as at 31 December 2010, including EUR 2,223.99 million attributable to
investments for unit-linked and index-linked life insurance.
Investments not including unit-linked and index-linked life
insurance were EUR 10,286.60 million in 2010.
Investments at the end of 2010 (not including investments
for unit-linked and index-linked life insurance) consisted of
65.9% securities, 17.1% ownership interests, 13.0% loans,
2.7% real estate and 1.3% other investments.
C
incl. change in mathematical reserve
incl. unit-linked and index-linked life insurance
incl. unit-linked and index-linked life insurance, incl. deposits from ceded
reinsurance business
The results from indirect business are presented in the
notes to the annual financial statements.
Combined ratio far below 100%
Wiener Städtische’s 2010 net combined ratio of 96.6%
(after deducting the reinsurers’ share) was once again
significantly below 100%. The combined ratio is a figure
showing the ratio of administrative expenses and insurance
payments to earned premiums in the property/casualty
segment.
Wiener Städtische earned a result from ordinary activities
of EUR 187.56 million in financial year 2010, calculated in
accordance with the provisions of the Austrian Corporate
Code (UGB). This corresponds to an increase of 10.3%
compared to the value in 2009 (EUR 169.98 million). This
increase is primarily due to the positive performance of the
financial markets.
55
65.7% of the result from ordinary activities came from the
property/casualty segment, 21.7% from life insurance, and
12.6% from health insurance.
In the non-motor vehicle classes (direct business), high
growth rates were recorded in the storm damage (3.4% to
EUR 30.31 million), transport (9.0% to EUR 21.16 million)
and burglary (5.2% to EUR 12.43 million) segments.
Premium volume for transport insurance increased significantly due to new policies. The increase in premiums for
burglary insurance is due to a greater need for security
resulting from the high number of break-ins. The rising
volume of premiums in the storm damage business shows
the continuing demand for coverage against natural catastrophes. The larger number of natural events in recent
years (storms) has increased public awareness of the need
for insurance coverage in this area.
Key figures property/casualty insurance
BUSINESS DEVELOPMENT IN DETAIL
Property/casualty insurance
Wiener Städtische generated EUR 1,046.52 million in premiums in the property/casualty segment (direct and indirect business), a decrease of 2.8% compared to the previous year. One reason for this decrease is that mandatory
reinsurance within the group is no longer being provided by
Wiener Städtische, but by VIG Re in Prague. Indirect premiums in the property/casualty segment therefore decreased
69.8% to EUR 9.43 million. In contrast, direct premiums
written fell only slightly, by 0.8%, to EUR 1,037.09 million.
In the non-motor vehicle classes, Wiener Städtische’s
direct premiums written grew by 1.0% compared to the
previous year, to EUR 719.74 million. In contrast, direct
premiums in the motor vehicle classes decreased by 4.5%,
to EUR 317.35 million. Premium income in the motor vehicle segment was negatively affected by the ongoing competitive market environment and the resulting increase in
price competition. The ongoing market trend towards
smaller vehicles and longer useful lives is also causing a
reduction in premiums in this segment.
56
in million EUR
Financial result
2009
1,076.11
102.19
-707.79
-236.99
-75.29
-9.72
148.51
2010
1,046.52
90.42
-682.05
-236.32
-93.25
-1.98
123.34
The loss rate was 68.6% (total after reinsurance, incl.
claims processing expenses). Expenses for claims
and insurance benefits declined by 3.6% in 2010, to
EUR 682.05 million. Gross administrative expenses were
EUR 236.32 million in 2010.
Details on the results for the individual classes are provided
in the notes to the annual financial statements.
The result from ordinary activities for the property/casualty
segment was EUR 123.34 million for all of 2010.
Life insurance
Wiener Städtische life insurance premiums rose to
EUR 1,058.52 million, representing an increase of 12.9%
compared to 2009. This was primarily due to increased
volatility in the single-premium product segment.
Direct premiums written in the life insurance segment rose
by 13.1% compared to the previous year. Single-premium
products recorded a 39.4% increase in premiums to
EUR 408.70 million. Regular premiums rose by 1.0% to a
level of EUR 646.38 million.
Key figures life insurance
in million EUR
Financial result
Gross expenses for insurance claims*
Result from unrealised gains and losses
from unit- and index-linked life insurance
items
2009
937.40
217.73
-1,184.52
199.55
-155.19
-1.96
-3.37
9.64
2010
1058,52
278.44
-1,307.88
174.83
-147.34
-1.72
-14.22
40.63
* incl. the change in the actuarial reserve
Gross expenses for claims and insurance benefits were
EUR 743.06 million in 2010. Gross administrative expenses
were EUR 147.34 million in 2010.
The result from ordinary activities in the life insurance segment was EUR 40.63 million for all of 2010.
Health insurance
EUR 327.76 million in premiums were written in the health
insurance segment during the financial year just ended,
corresponding to an increase of 2.0% over 2009.
There was strong demand for the new health insurance
products offered by Wiener Städtische in 2010. Because of
increasing public awareness of the topic of old-age nursing
care, demand for insurance solutions in this area is also
expected to rise over the long term.
Expenses for claims and insurance benefits were EUR
211.53 million in 2010. This figure already includes the
transfer to the ageing reserve. The ageing reserve ensures
funding for future insurance benefits, regardless of demographic changes. Gross administrative expenses were EUR
39.74 million in 2010.
C
The result from ordinary activities reached EUR 23.59
million in the health insurance segment.
Key figures health insurance
in million EUR
Financial result
2009
321.36
15.73
-263.35
-42.16
-6.08
-13.67
11.83
2010
327.76
19.53
-263.04
-39.74
-9.11
-11.81
23.59
* incl. the change in the actuarial reserve
57
Employees
The number of Wiener Städtische employees fell by 62
compared to the previous year. 178 employees were transferred to the holding company in 2010. At the end of 2010,
Wiener Städtische had a total of 3,497 employees, including 1,802 sales employees and 1,546 administrative employees. There were 149 trainees at the end of 2010.
Number of employees
Office employees
Field sales representatives (incl. interns)
TOTAL
2009
1,704
2,033
2010
1,546
1,951
3,737
3,497
Employee interests
Professional, motivated employees play an important role in
Wiener Städtische’s success. Training, advanced training
and equal treatment in the workplace are therefore key
values in its business philosophy. The company places
great importance on training and offers many development
and career opportunities. The company’s own human
58
resources development company, Horizont GmbH, is one of
the ways the company ensures continuous training of its
employees. Targeted support is also provided for trainee
development. As in the previous year, Wiener Städtische is
once again offering 100 young people the best career opportunities through its new 2011 trainee initiative.
Wiener Städtische is one of the most family and womenfriendly companies in Austria. The company day-care centre is one example of how employees are actively supported
in creating a balance between career and family. Wiener
Städtische also provides a variety of fringe benefits to make
conditions attractive for its employees.
Qualified, satisfied employees open the path to economic
success for Wiener Städtische.
Events occurring after the balance sheet date
No other events of special significance that would have
changed the presentation of the net assets, financial position and results of operations occurred after the balance
sheet date.
RISK REPORT
The risk management department is responsible for the risk
strategy, risk organisation and its processes, and ensuring
continuous risk management and assessment. The systematic, comprehensive, cross-department and companywide, active, forward-looking, targeted management of the
total risk position of the group of companies is one important objective.
In addition, Wiener Städtische’s corporate risk management department monitors and reports on economic capital, which was also calculated in 2010 in accordance with
the 5th EU Quantitative Impact Study, and external rating
requirements. The rating agency Standard&Poor’s continuously rates the VIG Group and, therefore, Wiener Städtische,
which is the most important component of the group.
All important risk measures are in the good to excellent
range.
THE INDIVIDUAL RISK CATEGORIES
Underwriting risks
Underwriting risks are risks that the calculated premiums
and reserves will be insufficient to settle the benefits that
are promised to the policyholder in advance, but unknown.
Credit risk
This risk quantifies the potential loss due to deterioration of
the situation of a counterparty against which claims exist.
Liquidity risk
Liquidity risk depends on the goodness of fit between the
investment portfolio and insurance obligations.
Concentration risk
Concentration risk is a single direct or indirect position, or a
group of related positions, with the potential to significantly
endanger the insurance company, its core business or key
performance measures. Concentration risk is caused by an
individual position, a collection of positions with common
holders, guarantors or managers, or by sector concentrations.
RISK STRATEGY
The Managing Board is responsible for risk management,
and the internal control system developed from it, and
defines the risk strategy, risk policy, targets and measurement bases.
C
The objective of risk management is not complete avoidance of risk, but instead a conscious acceptance of desired
risks or the implementation of measures to monitor and
possibly also reduce existing risks based on economic factors. These considerations are based on the assumption
that higher returns can be achieved by accepting higher
risk.
The risk-return ratio is therefore a key measure that should
be optimised.
RISK ORGANISATION
Market risk
Market risk is the risk of changes in the value of investments due to unforeseen fluctuations in interest rate curves,
share prices and exchange rates, and the risk of changes in
the market value of real estate and participations.
Strategic risks
Strategic risks can arise due to changes in the economic
environment, case law, or the regulatory environment.
Operational risks
These may result from deficiencies or errors in business
processes, controls or projects caused by technology, staff,
organisation or external factors.
In addition to the operational risk managers, an independent corporate risk management unit has been established
in the General Secretariat, directly under the Managing
Board.
The risk committee assists the Managing Board with optimisation of the systematic, comprehensive, cross-department, active, forward-looking and targeted management of the total risk position of the company, optimisation
of the company-wide risk culture and risk policy, and creation of appropriate framework conditions allowing all material risks in the company to be identified, defined, quantified, calculated, estimated and managed.
59
OUTLOOK FOR 2011
Risk management will be faced with new requirements in
the future due to the provisions of the new solvency framework directive. The new solvency directive is to be transformed into national law within the EU by 2013.
Like the Basel II model for the banking sector, Solvency II is
comprised of three pillars. The first pillar deals with the
quantitative requirements of capital adequacy, while the
second pillar deals with the qualitative requirements for
company management, the risk management system and
internal controls. The second pillar also covers supervisory
principles and methods. The third pillar deals with the new
provisions on market discipline, transparency and disclosure requirements.
Five field studies, the Quantitative Impact Studies (QIS),
have been performed to date in Europe in order to test the
practicability and suitability of Solvency II standard model
prototype. All of the studies showed that Wiener Städtische
had good capital adequacy and is optimally prepared for
the future.
Although many of the details needed for implementing the
solvency framework directive are still unclear or variable,
60
the insurance industry expects high costs and higher capital costs to be an unpleasant side effect of the new upcoming solvency legislation. Many industry experts also think
that the field studies have shown that the prototype of the
standard model (QIS 5) is not yet mature.
Wiener Städtische is an active participant in the group-wide
project that is making preparations for Solvency II.
The project is currently documenting and performing regular revisions to the internal control system. Operational and
financial statement-related risk classes are ordered according to risk magnitude, combined with their controls in a
risk and control matrix and reported regularly to the Managing Board and Supervisory Board. This allows control processes to be efficiently optimised. Using multiple controls for
insignificant risks is too costly, while material risks must be
continuously monitored and managed.
Efforts are also being made to develop a potential
internal model that will optimally present the total risk
position of the group and, therefore, of Wiener
Städtische.
OUTLOOK
ECONOMIC GROWTH FOR AUSTRIA IN 2011
Economic growth recovered significantly in 2010 following
the sharp global economic downturn in 2009. According to
preliminary estimates by the Austrian national bank (Österreichische Nationalbank — OeNB), real gross domestic
product (GDP) in 2010 grew by 1.8% compared to 2009. In
view of the consolidation measures planned for the Eurozone, the expansion is not expected to accelerate in Europe
or Austria in 2011. After years of large economic fluctuations, a long period of growth is expected in Austria. The
OeNB is projecting economic growth of 2.1% and 2.3% for
2011 and 2012, respectively.
The Austrian economic upswing is primarily being supported by exports of goods. The OeNB expects exports to
rise by 10.4% in 2010, with the upturn slowing in subsequent years to approximately 7%. Although domestic
demand continued to be restrained in 2010, growth was
nevertheless already considerably faster in the 4th quarter
of 2010. Investment is expected to increase in 2011 and
2012. The crisis will continue in the construction industry.
According to the OeNB, the consolidation measures planned for 2011 will have a negative effect on real disposable
household income, thereby depressing private consumption. The labour market situation improved significantly in
2010 as a result of the economic upswing, and positive
growth is also expected for 2011 and 2012.
THE AUSTRIAN INSURANCE MARKET IN 2011
According to the latest projections by the VVO, the Austrian
insurance market will grow by 1.7% in 2011 (2010 preliminary: 2.0%). The small decrease in the growth rate is due to
the above-average growth in single-premium life insurance
business experienced in 2010. Total growth without taking
into account the single-premium business will be 2.0% in
2011 (2010 preliminary: 1.9%).
According to initial cautious projections, life insurance
premiums are expected to grow by 1.1% in 2011, which is
considerably lower compared to the previous year (2010
preliminary: 1.9%). However, because of demographic
change and the increasing number of older people in the
population, demand is expected to rise in the area of oldage provisions. Life insurance is the ideal instrument for
making provisions to protect the standard of living in old
age.
C
Premium growth is expected to remain strong in the health
insurance segment, with an increase of 2.8% expected for
2011 (2010 preliminary: 2.9%). The growing propensity to
invest in private health insurance in order to protect the
standard of medical care in old age will have a positive
effect on premium income.
A premium increase of 2.0% is projected for the property/casualty segment in 2011 (2010 preliminary: 1.9%).
Premiums for motor vehicle liability insurance are expected
to grow again slightly by 0.2% in 2011.
Due to the increasingly competitive environment in the
Austrian insurance market, the current focus on providing
advice and service will become even more important for
insurance companies in the future.
Premium income also rose considerably in the insurance
industry in 2010, as a result of the economic upswing last
year. According to preliminary estimates, the Insurance
Association of Austria (Versicherungsverband Österreich —
VVO) expects a 2% increase in premiums in 2010. The
insurance industry is also expected to have strong premium
growth in coming years.
61
WIENER STÄDTISCHE IN 2011
The strong economic upswing in 2010 and the growth
trend expected for 2011 will have a positive effect on the
Austrian insurance business. Wiener Städtische management expects strong premium growth in 2011, and positive
growth in the profit before taxes. Efforts are also being made to further improve the combined ratio in the property/casualty segment. Wiener Städtische’s main focus in
the life insurance segment is on old-age provisions.
Management’s top priority is to ensure lasting success for
Wiener Städtische and further improve the company’s
leading position. In order to achieve this, Wiener Städtische
is focusing on a culture of customer orientation, high quality
service and professional employees. The legal separation of
Wiener Städtische and the holding company that was performed in 2010 allows the company to concentrate fully on
the insurance business in Austria.
62
The focus in 2011 will be on further targeted changes to
the range of products. Innovation is one of the company's
strengths. Wiener Städtische’s core business includes
quickly identifying long-term market trends and developing
product solutions that address customer needs.
In addition to continuous improvements to the product
portfolio, Wiener Städtische is also focusing on increasing
service quality by means of rapid communications and
quick handling of customer concerns. Wiener Städtische
changed the structure of the company in 2010 in order to
optimise customer service. Three new Service Centres were
created to facilitate centralised handling of losses and
benefit claims, thereby achieving even greater efficiency.
And, as in 2010, additional modern services were once
again added to the range of services offered. The company
is also focusing on further strengthening distribution, which
is a key factor in its success.
PROPOSED DISTRIBUTION OF PROFITS
In November of the financial year, an interim dividend of EUR 80,000,000.00 was paid from net retained profits in accordance with the requirements of § 54a of the Austrian Stock Corporation Act (Aktiengesetz — AktG).
WIENER STÄDTISCHE Versicherung AG VIENNA INSURANCE GROUP ended financial year 2010 with net retained profits of
EUR 200,245,702.21.
We propose that the 2010 net retained profits be used as follows:
A dividend of EUR 154,100,000.00 should be paid from the net retained profits, and the remaining balance of
EUR 46,145,702.21 carried forward.
The dividend payment date has been set as 10 May 2011.
Managing Board:
C
Robert Lasshofer
Christine Dornaus
Judit Havasi
Peter Höfinger
Erich Leiss
Vienna, 9 March 2011
63
Annual financial statements 2010
Wiener Städtische Versicherung ag Vienna Insurance Group
Separate financial statements prepared in accordance with the Austrian Corporate Code (UGB)
and the Austrian Insurance Supervision Act
Annual financial statements
66 Balance sheet
74 Income statement
Notes to the separate financial statements
81 General information on accounting policies
81 Accounting policies
86
Notes to the balance sheet items
89 Notes to income statement items
93 Profit participation
100 Significant participations
101
Other Information
Auditor´s Report
Report by the supervisory board
Statement by the managing board
64
COMPANY & STRATEGY | MAJOR TOPICS 2010 | MANAGEMENT REPORT 2010 |
wiener städtische versicherung ag Vienna Insurance Group
Seperate financial statements prepared in accordance with the Austrian Corporate Code (UGB) and
the Austrian Insurance Supervision Act (VAG)
Reporting Period
Balance sheet comparison date
Income statement comparison date
Currency
31.12.2010
1.1.2010 – 31.12.2010
31.12.2009
1.1.2009 – 31.12.2009
EUR
D
AANNUA
NNUALL REP
REPOORRTT 2010
2010 || W
Wiener
iener SStä
tädt
dtiissche
che
65
41
BALANCE SHEET FOR THE FINANCIAL YEAR ENDED 31 DEZEMBER 2010
Assets
Property/casualty
in EUR
A. Intangible assets
I. Expenses for acquisition of an insurance portfolio
II. Other intangible assets
TOTAL INTANGIBLE ASSETS
B. Investments
I. Land and buildings
II. Investments in affiliated companies and participations
1. Shares in affiliated companies
2. Bonds and other securities of affiliated companies and loans to affiliated companies
3. Participations
thereof reorganisation surplus
4. Bonds and other securities of and loans to companies in which an ownership interest is held
III. Other investments
1. Shares and other non-fixed-interest securities
2. Bonds and other fixed-interest securities
3. Shares in joint investments
4. Mortgage receivables
5. Policy prepayments
6. Other loans
7. Bank balances
IV. Deposits on assumed reinsurance business
TOTAL INVESTMENTS
C. Investments of unit- and index-linked life insurance
Amount carried forward
66
2,100,000.00
14,943,528.24
17,043,528.24
30,024,896.56
1,160,513,409.28
472,249,653.33
14,896,944.09
0.00
5,790,118.83
519,126,616.74
440,397,952.26
0.00
52,146,754.01
0.00
47,973,228.91
2,261,005.10
1,653,450,125.53
1,061,905,557.02
668,237.73
2,746,048,816.84
0.00
2,763,092,345.08
Health
Life
Total business in 2010
2009
in EUR '000
11,523,077.80
32,210,999.09
23,482,413.11
0.00
16,157,371.29
361,823,206.05
251,759,637.08
0.00
65,685,545.60
0.00
23,618,181.14
63,616,068.70
0.00
0.00
0.00
28,940.72
2,100,000.00
14,972,468.96
0
0
0.00
28,940.72
17,072,468.96
0
44,300,695.25
199,518,451.21
273,844,043.02
0
2,619,071,304.07
300,035
475,000
0
0
0
7,375,381,008.51
18,306,491.52
0
0
0
0
0
0
0
0
83,373,861.29
766,502,638.57
1,452,843.97
312,220,711.62
316,979,137.82
237,688,946.93
8,957,022.00
15,358,520.88
1,955,248,870.90
3,078,002,539.74
40,787,111.39
253,970,445.07
18,025,828.83
150,406,160.13
50,531,856.86
882,247,317.25
5,546,972,812.92
16,185,409.82
1,484,257,198.70
821,439,790.24
276,068,304.13
8,957,022.00
37,306,011.00
2,836,198,693.69
3,770,160,129.08
40,787,111.39
371,802,744.68
18,025,828.83
221,997,570.18
116,408,930.66
895,630,039.08
6,644,923,991.20
10,286,602,847.12
775,035
0.00
895,630,039.08
2,223,989,314.98
8,868,942,246.90
2,223,989,314.98
12,527,664,631.06
0
775,035
D
67
Assets
Property/casualty
in EUR
D. Receivables
I. Receivables from direct insurance business
1. from policiyholders
2. from insurance intermediaries
3. from insurance companies
II. Receivables from reinsurance business
III. Other receivables
TOTAL RECEIVABLES
E. Pro rata interest
F. Other assets
I. Tangible assets (not incl. land and buildings) and inventories
II. Current bank balances and cash on hand
III. Futher other assets
TOTAL OTHER ASSETS
G. Prepaid expenses
I. Deferred taxes
II. Other prepaid expenses
TOTAL PREPAID EXPENSES
H. Offsetting items between departments
Total assets
68
2,763,092,345.08
84,505,610.06
70,216,238.42
32,213,613.20
186,935,461.68
75,486,200.50
139,682,011.71
402,103,673.89
20,730,750.11
19,416,361.84
32,093,098.02
89,986,970.83
141,496,430.69
50,822,608.45
45,473,819.51
96,296,427.96
-875,450,326.99
2,548,269,300.74
Health
Life
2009
in EUR '000
895,630,039.08
3,085,681.15
0.00
960,280.33
4,045,961.48
0.00
2,231,301.79
8,868,942,246.90
24,203,882.81
403,585.02
571,353.73
25,178,821.56
705,877.29
8,016,515.87
111,795,174.02
70,619,823.44
33,745,247.26
12,527,664,631.06
775,035
216,160,244.72
76,192,077.79
149,929,829.37
0
0
0
0
128
6,277,263.27
33,901,214.72
442,282,151.88
128
5,697,381.61
91,199,439.49
117,627,571.21
0
0.00
23,856,249.86
4,127,500.00
231,765.25
29,097,315.48
16,183,343.53
19,648,127.09
85,046,663.36
110,297,814.36
0
9,952
0
27,983,749.86
45,512,424.26
214,992,604.81
9,952
3,154,458.62
17,000.00
20,216,398.51
5,248,910.60
74,193,465.58
50,739,730.11
0
0
3,171,458.62
25,465,309.11
124,933,195.69
0
203,388,959.58
672,061,367.41
0.00
0
1,142,148,852.02
9,737,082,001.89
13,427,500,154.65
785,115
D
69
Liabilities and shareholders' equity
Property/casualty
in EUR
A. Shareholders' equity
I. Share capital
1. Par value
II. Capital reserves
1. Committed reserves
III. Retained earnings
1. Free reserves
IV. Risk reserve as per § 73a VAG, taxed portion
V. Net retained profits
thereof brought forward
thereof partial payment in accordance with § 54a AktG
10,000,000.00
157,617,585.61
1,000,000.00
15,301,745.25
132,935,976.92
-83,797.25
-30,000,000.00
TOTAL SHAREHOLDERS' EQUITY
B. Tax-exempt reserves
I. Risk reserve as per § 73a VAG
II. Valuation reserve for impairment losses
316,855,307.78
19,406,564.75
3,793,786.29
TOTAL RESERVES
C. Subordinated liabilities
II. Supplementary capital bond
TOTAL SUBORDINATED LIABILITIES
D. Underwriting provisions - retained
I. Unearned premiums
1. Gross
2. Reinsurers' share
II. Mathmatical reserve
1. Gross
III. Provision for outstanding claims
1. Gross
IV. Provision for profit-unrelated premium refunds
1. Gross
V. Provision for profit-related premium refunds and policyholder profit participation
1. Gross
VI. Equalisation provision
VII. Other underwriting provisions
1. Gross
TOTAL TECHNICAL PROVISIONS
E. UNDERWRITING PROVISIONS OF UNIT- AND INDEX-LINKED LIFE INSURANCE
70
23,200,351.04
70,000,000.00
70,000,000.00
105,239,791.63
-13,498,510.02
91,741,281.61
0.00
0.00
0.00
1,029,598,676.83
-290,506,735.02
739,091,941.81
24,027,639.04
-4,273,666.77
19,753,972.27
196,912.47
0.00
12,315,864.28
-1,482,277.07
196,912.47
154,222,739.00
10,833,587.21
1,015,840,434.37
0.00
1,425,896,093.19
Health
Life
2009
in EUR '000
0.00
0.00
10,000,000.00
10,000
28,724,845.15
316,539,424.61
502,881,855.37
300,000
0.00
3,325,210.71
24,811,961.26
0.00
-20,000,000.00
0.00
27,226,449.51
42,497,764.03
0.00
-30,000,000.00
1,000,000.00
45,853,405.47
200,245,702.21
-83,797.25
-80,000,000.00
0
0
-84
0
0
56,862,017.12
386,263,638.15
759,980,963.05
309,916
9,208,223.29
3,078,673.15
14,825,539.49
71,414,198.75
43,440,327.53
78,286,658.19
0
0
12,286,896.44
86,239,738.24
121,726,985.72
0
10,000,000.00
195,000,000.00
275,000,000.00
0
10,000,000.00
195,000,000.00
275,000,000.00
0
2,106,573.80
-210,657.38
1,895,916.42
35,972,471.28
-47,718.39
35,924,752.89
143,318,836.71
-13,756,885.79
129,561,950.92
0
0
841,899,176.00
-85,425,640.10
756,473,535.90
6,347,091,836.00
-14,359,062.17
6,332,732,773.83
7,188,991,012.00
-99,784,702.27
7,089,206,309.73
0
0
44,412,425.00
-4,409,599.60
40,002,825.40
44,459,573.07
-141,000.00
44,318,573.07
1,118,470,674.90
-295,057,334.62
823,413,340.28
0
0
14,960,000.00
-1,496,000.00
13,464,000.00
0.00
0.00
0.00
38,987,639.04
-5,769,666.77
33,217,972.27
0
0
51,857,773.06
154,222,739.00
0
0
0
13,421,208.11
0
0
0.00
0.00
756,898.79
0.00
0.00
0.00
756,898.79
51,660,860.59
0.00
1,830,722.11
0.00
51,660,860.59
0.00
1,830,722.11
51,857,773.06
0.00
14,903,485.18
-1,482,277.07
812,593,176.51
6,466,467,682.49
8,294,901,293.37
0
0.00
891,742,090.07
2,141,430,179.12
9,275,401,238.00
2,141,430,179.12
11,593,039,421.26
0
309,916
D
71
Liabilities and shareholders' equity
Property/casualty
in EUR
F. Non-underwriting provisions
I. Provision for post-employment benefits
II. Provision for pensions
III. Tax provisions
IV. Other provisions
1,425,896,093.19
0.00
0.00
29,258,575.00
63,445,385.89
TOTAL OTHER PROVISIONS
G. Deposits from ceded reinsurance business
H. Other liabilities
I. Liabilities from direct insurance business
1. from policiyholders
2. from insurance intermediaries
3. from insurance companies
II. Liabilities from reinsurance business
III. Liabilities from bonds (not including supplementary capital)
III. Liabilities to financial institutions
IV. Other liabilities
TOTAL LIABILITIES
I. Prepaid expenses
Total assets
72
92,703,960.89
36,783,363.85
110,766,901.79
17,480,228.47
6,901,993.36
135,149,123.62
21,796,784.51
0.00
90,665.97
831,332,471.94
988,369,046.04
4,516,836.77
2,548,269,300.74
Health
Life
2009
in EUR '000
3,556,271.77
0.00
339,462.08
891,742,090.07
9,275,401,238.00
11,593,039,421.26
309,916
0.00
0.00
0.00
10,720,879.00
14,911,511.12
89,653,732.00
230,900.00
7,647,823.04
14,911,511.12
89,653,732.00
29,489,475.00
81,814,087.93
0
0
0
7
10,720,879.00
112,443,966.16
215,868,806.05
7
87,212,116.45
14,406,780.56
138,402,260.86
0
222,857,331.73
32,269,825.89
150,000,000.00
38,510,240.58
945,164,450.00
0
0
0
0
0
0
475,192
3,895,733.85
9,073,206.93
0.00
34,001,630.57
105,491,142.95
79,420,626.16
4,372,010.64
19,837.46
83,812,474.26
1,399,834.45
150,000,000.00
4,417,944.04
8,340,835.11
193,743,799.72
21,852,239.11
7,261,292.90
152,461,714.30
247,971,087.86
1,388,801,848.20
475,192
12,052.20
86,858,929.31
91,387,818.28
0
1,142,148,852.02
9,737,082,001.89
13,427,500,154.65
785,115
D
73
INCOME STATEMENT FOR THE FINACIAL YEAR FROM 1 JANUARY TO 31 DECEMBER 2010
2010
2009
in EUR
Underwriting account
1. Net earned premiums
Premiums written
Gross
Ceded reinsurance premiums
Change due to unearned premiums
Gross
Reinsurers' share
1,046,516,324.80
-387,299,601.68
659,216,723.12
0
0
7,190,603.99
-7,617,562.28
-426,958.29
0
0
658,789,764.83
0
TOTAL PREMIUMS
2. Investment income from technical business
3. Other underwriting income
4. Expenses for claims and insurance benefits
payments for claims and insurance benefits
Gross
Reinsurers' share
Changes in provision for outstanding claims and insurance benefits
Gross
Reinsurers' share
TOTAL CLAIMS AND INSURANCE BENEFITS
5. Increase in underwriting provisions
Other underwriting provisions
Gross
Reinsurers' share
TOTAL INCREASE IN UNDERWRITING PROVISIONS
6. Expenses for profit-unrelated premium refunds
Gross
Reinsurers' share
TOTAL EXPENSES FOR PROFIT-UNRELATED PREMIUM REFUNDS
7. Administrative expenses
Acquisition expenses
Other administrative expenses
Reinsurance commissions and profit commissions from reinsurance cessions
TOTAL OPERATING EXPENSES
8. Other underwriting expenses
9. Change in the equalisation provision
UNDERWRITING RESULT (AMOUNT CARRIED FORWARD)
74
in EUR '000
52,778.58
0
6,335,128.50
0
698,492,901.45
-226,266,525.63
472,226,375.82
0
0
-16,435,839.28
-3,606,639.80
-20,042,479.08
0
0
-452,183,896.74
0
955,305.76
0
0
-955,305.76
0
8,708,005.90
0
0
-8,708,005.90
0
191,487,072.23
44,834,247.37
-62,356,010.75
0
0
0
-173,965,308.85
0
982,700.00
-27,394.24
13,165,970.00
-4,457,964.10
-7,077,516.12
0
10,409,867.60
32,697,506.14
0
0
ANNUAL FINACIAL STATEMENTS 2010
2010
2009
in EUR
in EUR '000
Underwriting result (amount carried forward)
32,697,506.14
0
Non-underwriting account
1. Investment and interest income
Income from participations
Income from land and buildings
Income from other investments
Gains from disposal of investments
Other investment and interest income
26,893,062.66
2,518,246.72
61,886,064.16
43,775,174.28
3,879,393.28
0
0
53
0
1
TOTAL INVESTMENT INCOME
2. Expenses for investments and interest expenses
Expenses for asset management
Depreciation of investments
Interest expenses
Losses from disposal of investments
Other investement expenses
138,951,941.10
54
2,535,544.53
2,879,490.36
39,892,720.43
30,012.88
3,189,508.32
0
0
53
0
0
TOTAL INVESTMENT EXPENSES
3. Investment income transferred to the underwriting account
4. Other non-underwriting income
5. Other non-underwriting expenses
-48,527,276.52
-52,778.58
567,690.45
-297,577.44
-53
0
0
-113
Result from ordinary activities, property/casualty insurance
123,339,505.15
-112
D
75
Health insurance
premiums written
Gross
Gross
Reinsurers' share
2010
2009
in EUR
in EUR '000
327,762,919.92
-40,693,060.12
287,069,859.80
0
0
-309,604.54
15,144.95
-294,459.59
0
0
286,775,400.21
0
TOTAL PREMIUMS
Payments for claims and insurance benefits
Gross
Reinsurers' share
Gross
Reinsurers' share
Mathematical reserve
Gross
Reinsurers' share
Gross
Reinsurers' share
TOTAL EXPENSES FOR PROFIT-UNRELATED PREMIUM REFUNDS
Reinsurance commissions and profit shares
From reinsurance cessions
76
19,530,134.97
0
6,853.19
0
212,094,106.73
-20,846,257.08
191,247,849.65
0
0
-560,507.00
58,069.90
-502,437.10
0
0
-190,745,412.55
0
46,216,009.00
0
0
-46,216,009.00
0
10,344,935.88
0
0
-10,344,935.88
0
26,050,907.53
13,689,504.06
0
0
51,509,148.00
-5,293,139.00
11,472,412.40
-1,127,476.52
-4,402,416.76
0
-35,337,994.83
0
-81,657.52
23,586,378.59
0
0
Health insurance
2010
2009
in EUR
in EUR '000
23,586,378.59
0
293,400.46
2,327,012.86
33,675,295.19
3,715,511.63
1,296,131.04
0
0
0
0
0
41,307,351.18
0
4,897,183.20
8,587,943.12
7,589,275.85
43.73
702,770.31
0
0
0
0
0
Interest expenses
Other investement expenses
Result from ordinary activities, health insurance
-21,777,216.21
0
-19,530,134.97
0
23,586,378.59
0
D
77
Life insurance
Premiums written
Gross
Gross
Reinsurers' share
2010
2009
in EUR
in EUR '000
1,058,516,363.15
-3,312,928.66
1,055,203,434.49
0
0
1,169,136.75
-1,075.97
1,168,060.78
0
0
1,056,371,495.27
0
278,442,323.19
0
TOTAL PREMIUMS
3. Unrealised gains on investments shown under balance sheet asset item C
186,807,456.37
0
558,247.94
0
738,968,634.56
-1,236,482.85
737,732,151.71
0
0
4,086,350.73
40,000.00
4,126,350.73
0
0
-741,858,502.44
0
564,408,567.72
0
0
-564,408,567.72
0
15,700,000.00
0
0
-15,700,000.00
0
112,082,992.73
35,258,518.11
-532,934.71
0
0
0
-146,808,576.13
-11,978,963.39
-801,911.78
40,623,001.31
0
0
0
0
Payments for claims and insurance benefits
Gross
Reinsurers' share
Gross
Reinsurers' share
mathematical reserve
Gross
Reinsurers' share
and policyholder profit participation
Gross
Reinsurers' share
TOTAL PROFIT PARTICIPATION
Reinsurance commissions and profit commissions from reinsurance cessions
9. Unrealised losses on investments shown under balance sheet asset item C
78
564,824,212.26
-415,644.54
15,700,000.00
0.00
Life insurance
Income from appreciations
Interest expenses
Other investment expenses
Result from ordinary activities, life insurance
2010
2009
in EUR
in EUR '000
40,623,001.31
0
10,764,363.32
9,260,324.51
289,381,060.82
29,004,878.50
14,520,404.06
27,165,988.49
0
0
0
0
0
0
380,097,019.70
0
18,532,413.20
50,720,470.52
9,914,736.27
1,852,348.94
20,634,727.58
0
0
0
0
0
-101,654,696.51
0
-278,442,323.19
0
7,739.53
0
40,630,740.84
0
D
79
Property/Casualty + Health + Life = Total Business
2009
in EUR '000
Underwriting result, property/casualty
Underwriting result, health
Underwriting result, life
32,697,506.14
23,586,378.59
40,623,001.31
0
0
0
TOTAL UNDERWRITING RESULT
96,906,886.04
0
37,950,826.44
14,105,584.09
384,942,420.17
29,004,878.50
62,011,089.97
32,341,512.81
0
0
53
0
0
1
560,356,311.98
54
25,965,140.93
62,187,904.00
57,396,732.55
1,882,405.55
24,527,006.21
0
0
53
0
0
-171,959,189.24
-53
-298,025,236.74
0
Non-underwriting account:
Income from appreciations
depreciation of investments
Interest expenses
Other investment expenses
575,429.98
0
5. Other non-underwriting expenses
-297,577.44
-113
6. Result from ordinary activities
187,556,624.58
-112
7. Taxes on income
-51,953,230.72
28
8. Profit for the period
9. Release of reserves
Release of valuation reserve for impairment losses
Release of investments
135,603,393.86
-84
30,726,105.60
115,000,000.00
0
0
145,726,105.60
0
1,000,000.00
0
-1,000,000.00
0
TOTAL RELEASE OF RESERVES
10. Transfer to reserves
Transfer to risk reserve as per § 73a VAG
TOTAL TRANSFER TO RESERVES
11.
Profit for the year
-80,000,000.00
12.
Partial payment in accordance with § 54a AktG
200,329,499.46
13.
Retained profits brought forward
Net retained profits
80
2010
in EUR
-84
-83,797.25
0
200,245,702.21
-84
The insurance business operations of VIENNA INSURANCE
GROUP Wiener Städtische Versicherung AG (now VIENNA
FN 75687f) were spun off to VERSA-Beteiligungs AG
(now WIENER STÄDTISCHE Versicherung AG Vienna
Insurance Group, FN 333376i) with retroactive effect as of
1 January 2010 under a demerger and acquisition agreement of 10 May 2010, while claiming the reorganisation tax
privileges provided for under Art. VI of the Austrian
Reorganisation Tax Act (Umgründungssteuergesetz). The
General Meeting resolution was adopted on 29 June 2010
and the demerger of the insurance business operations
from the holding company acquired legal force on
3 August 2010 after approval by the Austrian Financial
Market Authority (FMA).
WIENER STÄDTISCHE Versicherung AG Vienna Insurance
Group therefore continues to be the largest individual company in the group and continues to operate the property/casualty, life and health insurance business in Austria.
VIENNA INSURANCE GROUP AG Wiener Versicherung
Gruppe is a listed group holding company, and focuses on
international management responsibilities.
The balance sheet and income statement figures for
31 December 2009 for the acquiring company, VERSABeteiligungs AG, have limited comparability and informational value because of the completely different structure of
the business.
As a result of the transfer of the insurance operations during the financial year, the annual financial statements of
VERSA-Beteiligungs AG as at 31 December 2009, which
were prepared in accordance with the classification
requirements of the Austrian Corporate Code (Unternehmensgesetzbuch — UGB), were changed over to the classification requirements of the Austrian Insurance Supervision
Act (Versicherungsaufsichtsgesetz — VAG) for the purpose
of presenting previous year figures in the company's annual
financial statements as at 31 December 2010.
I. GENERAL INFORMATION ON ACCOUNTING POLICIES
The annual financial statements were prepared in accordance with Austrian generally accepted accounting principles and the general standard of presenting a fair and
true view of the net assets, financial position and results of
operations.
The precautionary principle was satisfied in that only profits that had been realised as at the balance sheet date were
reported and all identifiable risks and impending losses are
recorded in the balance sheet, with the exception of the
less strict measurement of bonds and other fixed interest
securities as provided for in § 81h(1) VAG and use of the
measurement options provided for in § 81h(2a) VAG for
units of special funds. As a rule, figures are shown in thousands of euros (EUR ’000). Figures from the previous year
are indicated as such or shown in parentheses.
II. ACCOUNTING PRINCIPLES
Land is valued at cost, buildings at cost less depreciation
and any write-downs. As a rule, repair costs for residential
buildings are spread over ten years.
Investments for unit-linked and index-linked life insurance
are valued according to the current cost principle. Unitlinked life insurance investments are made in the following
funds: E+S Erfolgs-Invest Miteigentumsfonds gem. Para 20,
RT Osteuropa Absolute ReturnMiteigentumsfonds T, Schöllerb.Zinsstruk.Plus, Schoellerbank Zinsstruktur Plus Miteigentumsf., Schoellerbank Aktienfonds währungsgesichert,
SCHOELLERBANK Aktienfonds WÄHR.(T), RT Osteuropa
Aktienfonds Miteigentumsanteile T, RT Absolute Return
Bond Fund T, RT Euro Cash Plus (T) Fonds, C-Quadrat
ARTS Total Return Special T, PIA Euro Plus Bond VT, PIA
TRADERENT (T), SCHOELLERBANK NETTO RENT,
SCHOELLERBANK NETTORENT-T, Schoellerbank Liquid
(A), Schoellerbank Liquid (T), REAL INVEST AUSTRIA-A, CQuadrat Arts Total Return Balanced, WSTV ESPA DYNAMISCH, WSTV ESPA PROGRESSIV, WSTV ESPA TRADITIONELL, TRADECOM FONDSTRADER, RT ZUKUNFTVORSORGE AKTIEN-T, Schoellerbank Realzins Plus (Ausschütter), SCHOELLERBANK REALZINS PLUS T, PIONEER AUSTRIA-CORP TR IN-A, FAIR INVEST BALANCED Miteigentumsanteile, Wiener Privatbank Premium Ausgewogen T,
Wiener Privatbank Premium Dynamisch T, ESPA STOCK
ISTANBUL-T, VPI World Invest § 20 InvFG, CRYSTAL ROOF
RUBIN FUND (T), CRYSTAL ROOF SMARAGD FUND (T),
CRYSTAL ROOF SAFIR (T), ALL JAPAN T MITEIGENTUMSANTEILE, SUCCESS ABSOLUTE (T), SUCCESS RELATIVE
D
81
FONDS (T), ALL ASIA MITEIGENTUMSANTEILE GEM § 20
INFG T, ALL EUROPE-THESAURIERUNGS-ANTEILE, GLOBAL HEALTH CARE (ALL PHARMA) MITEIGENT, ESPA
BOND DOLLAR CORP T, Ecofin Index Aktien - Thesaurierungs-Anteile, RAIFFEISEN-EURASIEN-AKTIEN-A, SemperProperty Europe T, All Trends (T), ESPA STOCK PHARMA-T, PIONEER CENTRAL EUROPE BD-A, RT ACTIVE
GLOBAL TREND (T), RINGTURM PIF DYNAMISCH
FONDS(T), RINGTURM PIF TRADITIONELL FONDS(T),
AUSTRIA STOCK-T, SPAR TRUST CORPORATE (T), GOLDEN ROOF BRANCHEN (T), PIA MASTER FONDS TRADITIONELL (T), PIA MASTER FONDS DYNAMISCH (T), PIA
MASTER FONDS PROGRESSIV (T), ALL WORLD (T) MITEIGENTUMSANTEILE, Raiffeisen Euro Rent (T), ESPA Bond
Emerging Markets, SCHOELLERBANK USD RENTENFONDS (AUSSCH., EUR NO), PIA AMERICA STOCK FONDS
(T), PIA EURO CORPORATE BOND FONDS (T), PIA DOLLAR
BOND FONDS (T), ESPA PORTFOLIO BOND (T), ESPA
CASH EURO-PLUS (T) (SPARFONDS), SCHOELLERB GLOBAL PENSION FONDS, SEMPERSHARE AUSTRIA (THESAURIEREND), GOLDEN ROOF WELT (T), C-QUADRATACTIVE BALANCED-T, C-QUADRAT-ACT GLOB EQUIT-T, CI
Global Mix 50, ESPA SELECT STOCK, SCHOELLERBANK
AKTIENFONDS T, SCHOELLERBANK EURO ALTERNATIV T,
SCHOELLERBANK ANLEIHEFONDS T, Schoellerbank Vorsorgefonds T Miteigentumsanteile, SCHOELLERBANK USD
RENTENFONDS T, Schöllerbank (Lemberger) USD Rentenfonds (T), SCHOELLERBANK KURZINVST T, Schoellerbank
USD Kurzinvest (T), SCHOELLERBANK KURZINVEST T,
SCHOELLERBANK PIF-T, Schöllerbank Global Pension, PIA
MASTER FONDS DYNAMISCH (A) ANTEILE, PIA SELECT
EUROPE STOCK (T), C-Quadrat ARTS Best Momentum T,
CPB ZZ 2 FUND, SCHOELLERBANK USD KURZINVST A,
SCHOELLERBANK USD RENTENFONDS (A), Schoellerbank USD Kurzinvest Anteile (A), PIA SELECT EUROPE
STOCK (A) Miteigentumsanteile, BAWAG PSK GLOBAL
BOND FOND, Gutmann Vorsorge Fonds, PIA MÜNDEL
BOND (A) Miteigentumsanteile, CAPITAL INVEST GOLD
STOCK-A, CAPITAL INVEST SWISS STCK-A, ESPA STOCK
VIENNA-A, Espa Cash Euro Midterm (A), RT VORSORGE
RENTENFONDS Miteigentumsanteile, RT VIF VERSICHERUNG INT. FONDS THESAURIEREND, RT VORSORGERENTENFONDS (T), PIA EURO BOND FONDS, RAIFFEISEN
OESTERREICH AK A, SemperBond Euro (A), Schoellerbank
Vorsorgefonds, Superior 3 Ethik Miteigentumsfonds gem.
Para 20, SCHOELLERBANK ANLEIHEFONDS A, Schoellerbank Aktienfonds (Ausschütter), RAIFFEISEN-OSTEUROP-
82
AKTIEN-A, Schoellerbank Kurzinvest (Ausschütter),
Schoellerbank Euro Alternativ, PIA DOLLAR CASH FONDS,
CPB ZZ1 FUND, TOP VARIO MIX-T, VPI World Select TM
gem.Par.20 InvFG, SCHOELLERBANK - TOP BAL M-T,
SCHOELLERBANK GLOBAL DYNAMIK (T), SPECIAL PLUS T,
WSTV ESPA Garantie Miteigentumsfonds, C-QUADRAT
BEST FONDS BASIC-T, Unternehmensanleihenfonds 2014
gem §20 InvFG (A), Unternehmensanleihenfonds 2014
gem §20 InvFG (T), WSTV ESPA GARANTIE II, SCHOELLERBANK
ANLHFNDS-14-A,
SCHOELLERBANK
ANLHFNDS-14-T, SCHOELLERBANK GLOB RESORCS-A,
SCHOELLERBANK GLOB RESORCS-T, Dexia Sustainable
European Balanced Medium T, KBC EQUITY FD FOOD &
BEV-C, KBC ECO FUND-WATER-C, Dexia Equities B European Property Securities, iShares eb.rexx Jumbo Pfandbriefe, iShares DJ Euro Stoxx SD 30, ISHARES DAX DE,
ISHARES DJ EURO STOXX 50 DE, PSM GROWTH UI, Nord
Concept Anteile, INVESCO UMWELT UND NACHHALTIG,
COMINVEST FONDAK-P, Cominvest Fondis, DWS INVESTA,
DWS INTER-RENTA, DWS ENERGY TYP O, DEKARENT
INTERN. FONDS, INDUSTRIA-A, ALL-PMC-INTL RENTENFONDS-A, ALLIANZ VERMOEGENSBILD DEU-A, ALLIANZ
PIMCO EUROPAZINS-A, DWS VERMOEGENSBILDUNGSFOND I (A), ALLIANZ RCM BIOTECHNOLOGIE-A, BW Renta
International Universal Fonds, OP Food Anteile (A), UNIFONDS, UNIGLOBAL, UNIDEUTSCHLAND, UNIJAPAN,
PIONEER EURO BOND MEDIUM, DWS Top 50 Asien T,
DWS HEALTH CARE TYP O, DWS AKTIEN STRAT
DEUTSCHLAND, DWS Biotech-Aktien Typ 0 (Deutschland),
Acatis Aktien Global Fonds (T), StarCapital Universal Bondvalue UI, Nordasia Fund T, CS EUROREAL A, DEGI EUROPA,
DWS &Top Dividende Anteile, C-Quadrat ARTS Total Return
Global – AMI, Berenberg-Balkan-Baltikum-Universal Fonds
(A), PSM VALUE STRATEGY UI, iShares S+P Listed private
Equity, Lyxor Euro MTS 3-5Y, Carmignac Patrim.A 3D,
CARMIGNAC INVESTISSEMENT, Lyxor ETF Euro MTS, Lyxor
ETF DJ Buywrite – Parts de Capitalisation/Di, Lyxor ETF
Euro 5-7Y, LYXOR ETF EUROMTS CBA, Lyxor ETF World
Water, BARING EUROPE SELECT-INC, Baring German
Growth Trust (T), Threadneedle European Select Fund,
THREADNEEDLE EM MK B USD 3, LLOYDS TSB MF - NEW
ZEALAND, M & G 1 Global Basic Accum.Shs.Class A, M G
ASIAN FUND A ACC, BARING GLB EMG MKTS FD USD INC,
Invesco Funds Series 1 Japanese Equity A, Invesco Funds
Series 2 - Invesco Emerging Markets, METZLER EUROP SM
COMPANIES-A, INVESCO PACIFIC EQUITY-A, INVESCO
GLOBAL TECHNOLOGY-A, Invesco Funds Ser. 4 Invesco
Japanese Small/Mid Ca, INVESCO GLB HEALTH CARE-A,
BARING EASTERN EUROPE FUND, BARING HONG KONG
CHINA FD A, DIT-GL. MKT. BOND – UNITS, COMGEST
GROWTH INDIA, MAGNA-TURKEY FUND-A, BlackRock
Global Funds-European Opportunity Fund A, BlackRock
Global Fund-Japan Small+Midcap Opportuni, Allianz dit
Bondspezial FCP (A), UBS LUX BOND FUND-CHF-P ACC,
BGF EUROPEAN FUND A2, BGF EMERGING EUROPE
FUND A2,Invesco Funds - Invesco Pan European Equtiy A,
Invesco Funds Pan European Small Cap Equity A, Templeton Emerging Markets FD-A YDIS, UBS LUX BOND FUNDUS (T), VONTOBEL-EURO BOND-A, VONTOBEL FUND US
DOLLAR BOND B-USD-CAP, UNIASIA-T, HSBC GIFCHINESE EQUITY-AD, VONTOBEL FUND EMERGING
MARKETS EQUITY B-USD CAP, CS EF(LUX)SMALL CAP
USD FUND (T), BlackRock Global Funds-Emerging Markets
Fund A2, Global Advantage Emerging Markets High Value
(T), FIDELITY EUROPEAN GROWTH FUND (A), FIDELITY
EURO BOND FUND, FIDELITY FUNDS INTERNATIONAL
USD-FUND, FIDELITY JAPAN JPY FUND, FIDELITY JAPAN
SMALL.COMP.JPY FUND, FIDELITY FDS SOUTH E ASIA A
USD, Fidelity Funds SICAV - Pacific Fund, CREDIT SUISSE
BF LUX Sfr-B, UBS (Lux) Strategy Fund FCP Balanced (T),
BlackRock Global Funds-Euro Bond Fund A2, Fidelity
Funds SICAV - Latin America Fund, JPMORGAN F EAST
EURO E A, JPMORGAN-JF PACIFIC EQUITY A DIST - USD
FUND, JPMORGAN AMERICA EQUITY A Dis-USD FUNDS,
JP MORGAN US Small Growth Cap A Dist USD, JPMORGAN
F EMERG MKTS EQ A USD, JP MORGAN FLEMING EUROPE SMALL CAP FUND, JPMORGAN F LATIN AME E A USD,
JPMORGAN F JAPAN EQTY JF A USD, Fidelity Switzerland
Fund A, BlackRock Global Funds - World Gold Fund, FIDELITY GROWTH FPS EUR FUND, FIDELITY MODERATE FPS
EUR FUND, UBS LUX MD TRM BND EUR-P-ACC, JPMorgan JF India Fund (A), CREDIT SUISSE BF LUX ST SF-B,
Threadneedle US Equities, OEKOWORLD-OEKOVISION
CLASSIC, DWS Osteuropa FCP Units Capitalisation (T),
HSBC Global Indian Equity, Fidelity Funds World Fund,
FIDELITY FDS SOUTH E ASIA A, HENDERSON HORIZ GLBL
TECH A2, BlackRock Global Funds Latin American Fund (T),
JPMorgan-Emerging Markets Debt A INC EUR, MORGAN
STANLEY EMERGING MKTS USD FUND(T), MORGAN
STANLEY EM.MKTS.DEBT USD FUND (T), MLIIF World
Mining Shs A2 Capitalisation, NORDEA I SICUSD RSRV-BPUSD, FORTIS L FUND-EQ ENRGY WD-CC, FIDELITY GLOBAL FPS USD FUND, JPMORGAN F US TECHNOLOGY A
USD, PEH Strategie Flexibel, FI Alpha Renten Global, AXA
WF-FRM SWITZERLND-ACSfr, PICTET
FUNDS FCPBIOTECH ANT. –P, BGF GBL HI YIELD BD HED A2, KBC
RENTA NZD-RENTA-CAP, FIDELITY FNDS GL TECH FD A,
Multi Invest OP, PICTET WATER I, Pictet Funds (LUX) Sicav
Water, JPMorgan Europe Strategic Value A, Allianz PIMCO,
FIDELITY FNDS GL CONS IND A, FIDELITY FNDS GLO FIN
SVC A, Templeton Growth Fund EURO, FIDELITY FND IIAUD CURRENCY, PIONEER FUNDS CORE EU EQ A, VONTOBEL-SWISS MONEY-B, BlackRock Global Funds World
Energy Fund (T), BNPP L1-EQ EU ENRGY-CD, BGF NEW
ENERGY FUND USD A2, PICTET GLOBAL EMERG DEBT P
USD, PIONEER FUNDS US DOL S T A USD, ABERDEEN GL
EMMKT EQTY A2, Ethna Aktiv E Units, FRANK TE IN FR GL
SMC G-AACC, DWS Invest European Equities (T), DWS
INVEST TOP 50 ASIA-LC, DWS Invest Top 50 Asia (T), ACTIVEST TOTAL RETURN D, Dexia Quant Equities Europe,
BLUEBAY HIGH YIELD BOND B, BlackRock Global Funds
US Flexible Equity Fund A, DJE-ABSOLUT-P, DJE-RENTEN
GLOBAL-P, DJE-INTERCASH-P, Dexia Bond Euro Inflation
Linked C, PICTET-EMERGING DEBT-HP, BlackRock Global
Funds New Energy Fund (T), BlackRock Global FundsWorld Mining Fund-A2- EUR, FIDELITY FUND-CHINA FC-A
USD, DWS Flex Pens 2014 Fonds (neu), DWS Flexpension
2015, DWS Flex Pens 2016 Fonds (neu), DWS Flexpension
2017, DWS Flexpension 2018, WALSER PORTFOLIO GERMAN SCT, SCHRODER INT EME ASIA A USD ACC, JPMorgan Global Total Return Fund, DWS Flexpension Sicav 2019,
Gartmore Continental European Shs A1, AMUNDI-LATIN
AMERICA EQ-CC, PIONEER INVESTMENTS EUROPEAN
BOND SPECIAL, PICTET WATER PDY, BlackRock Global
Funds-Global Allocation Hedge A2, DWS Flexpension Sicav
2020, Multi Invest Spezial OP, FRANKLIN TEMPLETON
ASIA GROWTH FUND, FRANK TP INV BRIC-A YDISGBP,
FRANKLIN TEMPLETON BRIC FUND, FRANKLIN TEMPLETON INDIA FUND, GOLDMAN SACHS EUROP COR E-BA,
FIDELITY GLOBAL PROPERTY FUND, Fidelity Funds European Fund, INVESCO ASIA INFRASTRUCT A A, Market
Access Jim Rogers Int Commodity Index, AXA WORLD EURO 5 7 CAP, DWS Flexpension 2021, Pictet Funds (Lux)
Sicav Security, CS EF (LUX) GLB VALUE-R CHF, PIONEER
FDS GLOBAL SEL A A, PIONEER FDS GLBL ECOLG A AC,
DWS INVEST CHINESE EQUITY-LC, DWS Invest Global
Agribusiness (T), DBX-TRACKERS DJ EU STX 50-1D, Pioneer Em. M., Julius Baer Multistock Black Sea Fund (A),
ABERDEEN GL EMERG MKT SM I2 USD, DWS Flexpension
2022, dbxt DBLCI, Pioneer Euro Aggregate Bond,
BlackRock Global Funds World Gold Fund, DkLT Em Bd
D
83
Units CF Distribution, ARERO-DER WELTFONDS, DWS
Flexpension 2023, ComStage ETF Dow Jones Euro STOXX
50 TR, DWS FlexPension II 2019 Shs 2009-31.12.2019
Capita, DWS FLEXPENSION II 2021, DWS FlexPension II
2024 -Shs 2009-31.12.2024 Capit, ETHNA - AKTIV E-T,
DWS FLEXPENSION II 2025, CS FUNDS-LUX-MNY MKT
Sfr-B, INVESCO II-JAP VALUE EQ-AYen, ABER GL II-EURO
GOV BD-A2A, ROBECO INT. ASSET MANAGM. BV.
Shares and other non-fixed-interest securities (with the
exception of units of special funds that exclusively or predominantly hold bonds or other fixed-interest securities),
and shares in affiliated companies are valued according to
the strict lower-of-cost-or-market principle (strenges Niederstwertprinzip). Starting in 2008, bonds and other fixedinterest securities have been valued using the less strict
lower-of-cost-or-market principle (gemildertes Niederstwertprinzip) provided for in § 81h(1) VAG. Valuation using
the less strict lower-of-cost-or-market principle resulted
in EUR 59,833,000 of write-downs not being performed.
With respect to bonds and other fixed-interest securities,
Greek government bonds with a nominal value of
EUR 35,000,000 were written down by 25% as a precaution.The valuation options provided for in § 81h(2a) VAG
were used to value units in special funds that exclusively or
predominantly hold bonds or other fixed-interest securities.
Use of this less strict measurement principle resulted in
EUR 0 of write-downs not being performed for units of special funds.
The company invests in fixed-interest securities, real estate,
participations, shares, and structured investment products,
taking into account the overall risk position of the company
and the investment strategy provided for this purpose. The
risk inherent in the categories specified and market risks
were taken into account when determining exposure volumes and limits.
The investment strategy is laid down in the form of investment guidelines that are continuously monitored for compliance by the corporate risk controlling and internal audit
departments. The corporate risk controlling department
reports regularly to the tactical and strategic investment
committee. The internal audit department reports continuously to the Managing Board.
84
As a rule, investments are largely low-risk. The strategic
investment committee decides on possible high-risk investments based on the inherent risk of each individual
investment after performing a full analysis of all related
risks and liquidity at risk and considering all assets currently in the portfolio and the effects of the individual investments on the overall risk position.
All known financial risks are assessed regularly and specific
limits or reserves are used to limit exposure. Security price
risk is reviewed periodically using value-at-risk and stress
tests. Default risk is measured using both internal and external rating systems.
An important goal of investment and liquidity planning is to
guarantee that the return on investment remains continuously above the minimum rate of return for the life insurance class and that adequate amounts of liquid, valueprotected financial investments are maintained for all
classes. Liquidity planning therefore takes into account the
trend in insurance payments and the majority of investment
income is generally reinvested.
The company reported assets whose interest payments
were not guaranteed and whose principal repayment might
be defaulted in whole or in part in the balance sheet asset
item “shares and other non-fixed interest securities” with a
book value of EUR 32,345,000 and a fair value of
EUR 33,996,000 as at 31 December 2010.
An interest rate swap running until 12 January 2017 with a
notional amount of EUR 120 million was entered into for
the supplementary capital bond issued on 12 January 2005
that became a variable supplementary capital bond after
the first year (AT0000342704).
Austrian banks have the option to tender previously subscribed bank bonds with a value of EUR 15,000,000 in
2013. It is currently not expected that these options will be
exercised.
As a rule, mortgage receivables and other loans, including those to affiliated companies and companies in which
an ownership interest is held, are valued at the nominal
value of the outstanding receivables. Discounts deducted
from loan principal are spread over the term of the loan and
shown under deferred income on the liabilities side of the
balance sheet.
Valuation allowances of adequate size are formed for
doubtful receivables and deducted from their nominal
values. Property, plant and equipment (not including land
and buildings) are valued at cost less depreciation. Lowcost assets are written off in full in the year of acquisition.
Unearned premiums for property/casualty insurance were
essentially calculated by prorating over time after applying
a cost deduction of EUR 16,859,000. Unearned premiums
for life insurance are formed according to the amounts
prescribed in the business plan. No cost deduction is applied. Unearned premiums for health insurance are calculated by prorating over time without applying a cost deduction.
The mathematical reserve is calculated using the formulas
and calculation bases contained in the business plans
approved by or submitted to the supervisory authority.
The provision for outstanding claims for direct business in
the property/casualty and life insurance segments is calculated for losses reported by the balance sheet date by individually evaluating claims that have not yet been settled
and adding lump-sum safety margins for large unascertainable losses. Lump-sum provisions based on past experience are formed for losses incurred but not reported.
In health insurance, provisions for outstanding claims are
calculated by applying lump-sum percentages to payments
made for claims during the financial year. The percentage
rates were unchanged compared to the previous year.
In indirect business, provisions for outstanding claims are
primarily based on reports from ceding companies as at the
31 December 2010 balance sheet date. The reported
amounts were supplemented by additional amounts if considered necessary in light of past experience.
The equalisation provision is calculated in accordance with
the Directive of the Austrian Federal Finance Minister, BGBl.
(Federal Gazette) No. 545/1991 in the version in BGBl. II No.
66/1997. Use was made of the release provision in § 13.
The provision for profit-related premium refunds and
policyholder profit participation contains the amounts
earmarked for policyholder premium refunds based on the
business plans and the articles of association and over
which no disposition had been made as of the balance
sheet date.
The provisions for severance pay, pensions, and anniversary bonuses are based on the pension insurance calculation principles of the Actuarial Association of Austria (AVÖ),
AVÖ 2008-P (Employees), using a discount rate of 4%.
company pension plan obligations are measured using the
actuarial entry age normal method (Teilwertverfahren). The
retirement age used to calculate the provisions for anniversary bonuses and severance pay is the statutory minimum
retirement age as stipulated in the Austrian General Social
Security Act (ASVG) (2004 reform) for the provision for
anniversary bonuses, subject to a maximum age of 62 years.
The retirement age used to calculate the retirement age for
the provision for pensions depends on each individual
agreement. The following percentages were used for employee turnover based on age: <31 7.5%, 31-35 3.5%, 3640 2.5%, 41-50 1.5%, 51-55 0.5% and 56-65 0%. The
severance entitlement used to calculate the provision for
severance obligations depends on each individual agreement. The following percentages were used for employee
turnover based on age: <30 - 7.5%, 30 - 34 3.5%, 35 - 39
2.5%, 40.- 50 1.5%, 50 - 59 1.0% and 56 - 65 0%.
The interest expenses for personnel provisions of
EUR 4,921,000 are reported under investment and interest
expenses. A portion of the direct pension obligations, in the
amount of EUR 272,229,000, is being administered as an
occupational group insurance plan under an insurance
policy concluded in accordance with § 18f to 18j VAG. As
permitted under the Austrian Federal Ministry of Finance
Decree of 3 August 2001, an amount of EUR 273,000 was
transferred to an external insurance company to outsource
severance pay obligations. The severance pay provision
required under Austrian corporate law for 2010 was
EUR 70,216,000. The amount earmarked for satisfaction of
the outsourced severance pay obligations and held by the
external insurance company was EUR 60,682,000. The
difference of EUR 14,721,000 between the size of the
severance pay provision to be formed under Austrian corporate law and the deposit held by the external insurance
D
85
company is reported in the provisions for severance pay in
the balance sheet.
Amounts denominated in foreign currencies are converted
into euros at the relevant mean rate of exchange.
A portion of the underwriting items for assumed reinsurance business and the associated retrocessions for property/casualty and life insurance is deferred for one year
before being shown in the annual financial statements.
The following disclosures are provided for off-balance
sheet liabilities: Letters of comfort and liability undertakings totalling EUR 38,904,000 have been issued in connection with a real estate purchase and borrowing. Liability
undertakings totalling EUR 72,000 have been issued
in connection with loan repayments. A total of
EUR 29,149,000 relates to letters of comfort with affiliated
companies.
III. NOTES TO THE BALANCE SHEET
The value of developed and unimproved properties was
EUR 73,788,000 as of 31 December 2010.The book value
of property for own use was EUR 53,444,000.
Other loans not secured by insurance contracts were comprised of the following: loans to the Republic of Austria in
the amount of EUR 31,813,000, loan receivables from
other public bodies in the amount of EUR 30,885,000 and
loan receivables from other borrowers in the amount of
EUR 159,300,000.
86
The fair values of investments are:
Items under § 81c Abs.2 VAG
Market value
31/12/10
Market value
31/12/09
373,548
1,743,071
0
300,035
821,908
350,939
0
0
37,306
475,000
3,066,979
3,897,843
40,787
371,803
18,026
221,998
116,409
18,306
11,078,923
0
0
0
0
0
0
0
0
775,035
In EUR ´000
Land and buildings
Shares in affiliated companies
Bonds and other securities of and loans
to affiliated companies
Participations
Bonds and other securities of and loans
to other companies in which an
ownership interest exists
Shares and other non-fixed-interest
securities
Bonds and other fixed-interest securities
Shares in joint investments
Mortgage receivables
Policy prepayments
Other loans
Bank balances
Deposit receivables
Hidden reserves totalled EUR 792,320,000 in the reporting
year. The fair value of the shares in affiliated companies
and shares in companies in which an ownership interest is
held is equal to the stock market value or other available
market value (up-to-date internal valuation calculations). If
no stock market or other available market value exists, the
purchase price is used as the fair value, if necessary reduced by any write-downs or a proportionate share of the
publicly reported equity capital, whichever is greater. For
shares and other securities, stock market values or book
values (purchase price, reduced by write-downs if necessary) are used as the fair value. The remaining investments
were valued at their nominal values, where necessary reduced by write-downs.
rates were mainly taken from the Austrian 2000/2002 general mortality tables. Consistent with the premium calculation, the mathematical reserve is largely calculated using a
discount rate of 3% p.a.
The fair values of land and buildings were determined in
accordance with the recommendations of the Austrian
Association of Insurance Companies. All properties are
individually valued during a 5-year period.
In life insurance, the mathematical reserve is calculated
using principles laid down in business plans and approved
by the supervisory authority and using bases submitted to
the supervisory authority.
The fair value of EUR 373,548,000 for land and buildings is
comprised of market value appraisals for the years 2007 to
2010 as follows: 2010: EUR 124,275,000, 2009:
EUR 69,547,000, 2008: EUR 99,124,000, 2007:
EUR 80,602,000.
The mathematical reserve is calculated for each individual
case, with the prospective method being used almost exclusively.
In health insurance, the mathematical reserve is calculated using actuarial principles in accordance with
§ 18c VAG for all portfolio groups.
The main probability tables are as following:
For endowment insurance policies
For annuity insurance policies
DM 24/26
ÖVM 80/82
ÖVM/ÖVF 90/92
ÖVM/ÖVF 00/02
EROM/EROF
AVÖ 1996 R
AVÖ 2005 R
For individual insurance, the mathematical reserve is calculated exclusively for each individual policy. This also applies
to new business in the group insurance area affected by the
1994 amendment to the Austrian Insurance Contract Act
(Versicherungsvertragsgesetz — VersVG). A lump-sum
mathematical reserve is formed for the remaining group
policies. The mathematical reserve is primarily calculated
using the prospective method. The calculation of the
mathematical reserve takes into account the fact that the
mathematical reserve for a policy is forfeited in favour of
the community of the insured (Versichertengemeinschaft)
in the event of early policy termination or death of the insured.
For a large portion of the portfolio, the mathematical reserve is calculated using a discount rate of 3% p.a. Starting
in 1995, a discount rate of 4% p.a. was used for certain
policies, and between 1 July 2000 and 31 December 2003
a discount rate of 3.25% p.a. was used. In the case of policies with an inception date on or after 1 January 2004 the
discount rate is 2.75% p.a.; on or after 23 September 2005
the discount rate is 2.25% for employer group policies. In
the case of policies purchased after 1 January 2006 the
discount rate is 2.25%.
The claims frequencies used for the actuarial calculation of
the mathematical provision are primarily derived from
analyses of the group’s own claims experience. Mortality
The amount shown under other liabilities includes
EUR 22,953,000 in tax liabilities and EUR 3,167,000 in
social security liabilities.
D
87
The following balance sheet items are accounted for by affiliated companies and companies in which an ownership
interest is held:
Affiliated companies
In EUR ´000
2010
Mortgage receivables
Deposit receivables
Receivables from direct insurance business
Receivables from reinsurance business
Other receivables
Liabilities from reinsurance business
Liabilities from direct insurance business
Liabilities from reinsurance business
Other liabilities
37,761
10,452
12,356
23,521
105,269
122,532
436
12,132
905,918
2009
0
0
0
0
81
0
0
0
475,192
Companies in which an ownership
interest exists
2010
2009
5,064
0
1,358
114
195
0
50
10
0
0
0
0
0
0
0
0
0
0
Liabilities arising from the use of off-balance sheet tangible assets were EUR 25,097,000 for the following financial year
and EUR 148,922,000 for the following five years.
The book values of intangible assets, land and buildings, investments in affiliated companies and ownership interests
have changed as follows:
Intangible
assets
Land and
buildings
Shares in
affiliated
companies
Bonds and other
securities of and
loans to
affiliated
companies
Participations
Bonds and other
securities of and
loans to
companies in
which an
ownership
interest is held
In EUR ´000
As of 31 December 2009
Appreciation
Additions
Disposals
Appreciation
Change due to value adjustments
As of 31 December 2010
88
0
17,181
3,819
47
3,881
0
317,838
27,480
63,207
8,267
300,035
911,161
314,579
2,804
38,714
17,072
273,844
1,484,257
475,000
345,511
13,763
4,237
0
268,006
9,575
1,513
0
37,448
1,674
1,816
-8,597
821,440
276,068
37,306
IV. NOTES TO THE INCOME STATEMENT
The premiums written, earned premiums, expenses for insurance claims, operating expenses and reinsurance balance in
property/casualty insurance in 2010 are broken down as follows:
Gross
Premiums
written
Net earned
premiums
Expenses for claims
and insurance
benefits
Adminitrative
expenses
Reinsurance
balance
In EUR ´000
Direct business
Fire and fire business interruption insurance
Liability insurance
Household insurance
Motor liability insurance
Legal expenses insurance
Marine, aviation, and transport insurance
Other insurances
Other motor vehicle insurance
Other non-life insurance
Casuality insurance
Indirect business
Marine, aviation, and transport insurance
Other insurances
Total business direct and indirect
204,463
112,038
75,787
191,531
26,531
27,974
30,738
120,527
154,644
92,858
1,037,091
207,415
112,112
76,100
192,951
26,629
28,234
32,798
120,361
155,067
92,535
1,044,202
126,411
58,115
36,065
138,929
13,562
17,673
28,497
88,407
104,113
59,105
670,877
40,414
29,927
21,022
36,043
6,841
6,653
5,867
25,719
40,358
21,614
234,458
-60,435
-5,210
-2,518
-12,564
-13
-3,006
-702
-2,969
-14,612
-674
-102,703
101
9,324
101
9,403
71
11,109
-3
1,866
-49
65
9,425
9,504
11,180
1,863
16
1,046,516
1,053,706
682,057
236,321
-102,687
D
Premiums written for health insurance in 2010 are broken down as follows:
2010
2009
In EUR ´000
Direct business
Individual insurance
Group insurance
Indirect business
Group insurance
230,122
97,566
0
0
75
0
327,763
0
89
Premiums written for life insurance in 2010 are broken down as follows:
2010
2009
In EUR ´000
Direct business
1,055,076
Indirect business
0
3,440
0
1,058,516
0
For life insurance, premiums in the direct business are made up as follows:
2010
2009
In EUR ´000
Individual insurance
Group insurance
Single premium policies
Policies with regular premium payments
policies with profit participation
policies without profit participation
Unit-linked life insurance policies
Index-linked life insurance policies
984,289
70,787
0
0
1,055,076
408,703
646,373
0
0
0
1,055,076
449,253
3,260
556,730
45,833
1,055,076
0
0
0
0
0
0
For the branch office in Italy, direct premiums written are EUR 59,653,000 and the underwriting result is EUR 4,798,000.
The exception rule of § 81o(6) VAG was used.
The reinsurance balance for life insurance was negative in 2010, with a value of EUR 1,717,000. The result from indirect
business was EUR 540,000. The reinsurance balance for health insurance was negative in 2010, with a value of
EUR 9,109,000. The result from indirect business was EUR 64,000. A portion of the earned premiums of EUR 9,504,000
from indirect property/casualty insurance business was deferred for one year before being shown in the income statement.
Of the EUR 3,443,000 in earned premiums from indirect life insurance business, EUR 391,000 was deferred for one year
before being shown in the income statement.
90
Of the income from ownership interests, income from other investments, and income from land and buildings shown in
the income statement, affiliated companies account for the following amounts:
2010
2009
In EUR ´000
Life insurance
Total
26,061
4,388
30,449
0
0
0
Health insurance
Life insurance
Total
20,415
2,112
14,909
37,436
0
0
0
0
75
532
607
0
0
0
Income from land and building
Health insurance
Life insurance
Total
All of the investment income in the life insurance and health insurance segments was transferred to the underwriting account, as investment income is a component of the underwriting calculations in both segments. In the property/casualty
segment, only deposit interest income for indirect business was transferred to the underwriting account.
The expenses for insurance claims, expenses for operating expenses, other underwriting expenses and investment
expense items contain:
D
2010
2009
In EUR ´000
Wages and salaries
Expenses for severance benefits and payments to company pension plans
Expenses for retirement provisions
Expenses for statutory social contributions and income-related contribution and
mandatory contributions
Other social security expenses
112,932
7,980
13,428
0
0
0
46,788
1,807
0
0
Commission expenses of EUR 174,553,000 were incurred for indirect business in 2010.
Losses on disposals of investments were EUR 1,882,000 in financial year 2010.
91
The valuation reserve shown on the balance sheet as at 31 December 2010 and releases over the fiscal year are broken
down by asset item as follows:
As of
31/12/09
Rebooking
Release
As of
31/12/10
In EUR ´000
Land and buildings
Shares in affiliated companies
Participations
Shares and other non-fixed-interest securities
0
0
0
0
0
81,502
226
26,456
829
109,013
29,897
0
0
829
30,726
51,605
226
26,456
0
78,287
The formation and release of untaxed reserves resulted in an increase in income tax expenses of EUR 7,682,000 during the
financial year.
92
V. PROFIT PARTICIPATION
Since the assessment basis is negative, the percentage rate
specified in § 6(1) GBVKVU was not calculated.
HEALTH INSURANCE
LIFE INSURANCE
All policies with an adjustment clause whose premiums
were not increased by the required actuarial amount when
2010 premium adjustments were performed receive a
special profit share on 31 December 2010.
The size of the profit share equals the single-premium
amount that is necessary to provide relief to older persons
covered by health insurance.
According to § 7 of the Regulation of the Financial Market
Authority (FMA) on profit participation in the health insurance sector (Verordnung der FMA über die Gewinnbeteiligung in der Krankenversicherung — GBVKVU) of
12 June 2007, the Regulation is applicable to policies
whose actuarial bases were submitted after 30 June 2007
and whose terms provide for profit participation. The expenses for profit-related premium refunds plus any direct
credits must be at least 85% of the assessment basis for
the health insurance policies concerned.
The assessment basis within the meaning of § 3(1)
GBVKVU is calculated as follows for health insurance policies entitled to participate in profits:
in EUR ´000
Earned premiums
Expenses for insurance claims
including changes to underwriting reserves
Operating expenses
Other underwriting and
non-underwriting income/expenses
Investment and interest income
and expenses
Assessment base as at 31/12/2010
5,085
-4,340
-1,962
Under the FMA regulation on profit participation in the life
insurance sector (GBVVU) of 20 October 2006, the expenses for profit-related premium refunds and policyholder
profit participation plus any direct credits must be at least
85% of the assessment base.
The assessment basis within the meaning of § 3(1) GBVVU
is calculated as follows for life insurance policies entitled to
participate in profits:
in EUR ´000
Earned premiums
Expenses for insurance claims
including changes to underwriting reserves
Operating expenses
Other underwriting and
non-underwriting income/expenses
Investment and interest income
and expenses
Assessment base as at 31/12/2009
441,410
-560,072
-68,166
-4,119
214,530
23,583
D
As a general rule, the listed income and expense items
were calculated directly. Where this was not possible, an
allocation was performed as far as possible on the basis of
origin in accordance with the provisions of § 3(2) GBVVU.
The expenses for profit participation, including direct credits, were EUR 21,279,000 in 2010, that is, 90.2% of the
assessment basis.
-1
121
-1,097
As a general rule, the listed income and expense items
were calculated directly. Where this was not possible, an
allocation was performed as far as possible on the basis of
origin in accordance with the provisions of § 3(2) GBVKVU.
As provided for in § 3(3) GBVKVU, the entitlement to apply
a prior deduction to the calculation of the assessment basis
was used.
The Managing Board of Wiener Städtische Versicherung AG
has adopted a resolution providing the following earnings
appropriation as at 31 December 2010 for the insurance
policies in the following various profit classes depending on
the guaranteed actuarial interest rate:
93
Profit Class A
1. In accordance with policy terms and conditions, all insurance policies in Profit Class A that belong to Settlement
Class 92 will receive the following profit shares:
a)
an interest bonus equal to 0.25% of the mathematical
reserve specified in the business plan at the commencement of the current insurance year.
b)
a total bonus equal to 2.5‰ of the sum insured on
death for policies that have a proper adjustment letter
and no regular premium payments outstanding, and
1‰ for all other policies.
c)
a final bonus on maturity of the endowment sum in
2011 equal to an interest bonus as per point a) on the
total matured capital.
2. In accordance with policy terms and conditions, all insurance policies in Profit Class A that belong to Settlement
Class 96 (single-premium insurance policies) will receive
the following profit shares:
a)
b)
3. In accordance with policy terms and conditions, all insurance policies in Profit Class A – excluding policies in
Settlement Classes 92 and 96 – will receive the following
profit shares:
94
a)
b)
a total bonus equal to 3.5‰ of the sum insured on
death for policies that have a proper adjustment letter
and no regular premium payments outstanding, and
2‰ for all other policies.
c)
Profit Class B
In accordance with policy terms and conditions, all insurance policies in Profit Class B will receive profit shares
equal to 15% of the annual net premium.
Ordinary life insurance policies with an insured sum of at
least EUR 726.73 and a policy term of at least 12 years that
are included in Profit Class B will also receive a final bonus
equal to 20% of the sum insured on maturity of the sum
insured in 2011 in the event of survival. The special bonuses approved in the years 1983 and 1984 will be offset
against this final bonus.
Profit Class D
In accordance with policy terms and conditions, all insurance policies in Profit Class D will receive the following
profit shares:
a)
an interest bonus equal to 0% of the mathematical
reserve specified in the business plan on commencement of the current insurance year.
b)
a total bonus equal to 2‰ of the sum insured on death
for policies, that have a proper adjustment letter and
no regular premium payments outstanding, and 1‰
for all other policies.
c)
2011 equal to a single interest bonus as per point a) on
the total matured capital for single-premium policies,
and equal to a single interest bonus as per point a) on
the total matured capital for policies with regular premiums and a premium payment period of less than
20 years, or equal to double the interest bonus amount
for policies with a premium payment period of 20 years
or more.
Profit Classes F, H, I, J, L, X, Y and S
1. In accordance with policy terms and conditions, all insurance policies in Profit Classes F, H, I, J, L, X, Y and S that
belong to Settlement Class 2004, will receive the following
profit shares:
a)
an interest bonus equal to 0.5% of the contractual
mathematical reserve on commencement of the current insurance year.
b)
a total or additional bonus equal to 1‰ of the sum
insured upon death, or of the annuity present value or
of the survival sum for policies with no regular premium
payments outstanding.
c)
contractual mathematical reserve, regardless of
whether the payout is made in the form of an annuity or
a lump-sum payment.
responding final bonus will be allocated only if the payout is made in the form of an annuity.
belong to Settlement Class 2007 will receive the following
profit shares:
a)
an interest bonus equal to 1% of the contractual
mathematical reserve at the commencement of the
current insurance year.
b)
a total or additional bonus for policies with no regular
premium payments outstanding, equal to 1‰ of the
sum insured upon death, or the annuity present value,
or the survival sum, plus an administrative cost bonus
equal to 0.15% of the sum insured upon death, or the
annuity present value or the survival sum for each year
of the policy term and/or period of deferment, distributed over the last five years of the policy term and/or
period of deferment.
c)
a final bonus upon maturity of the endowment sum in
the year 2011 equal to a single interest bonus as per
point a) on the contractual mathematical reserve for
single-premium policies, or equal to double the interest
bonus amount as per point a) on the contractual
mathematical reserve for policies with regular premium payments. For annuity contracts the corresponding final bonus will be allocated only if the payout is
made in the form of an annuity.
belong to Settlement Class 2006, will receive the following
profit shares:
a)
b)
c)
d)
the contractual mathematical reserve for singlepremium policies, and equal to a single interest bonus
as per point a) on the contractual mathematical reserve for policies with regular premiums and a premium payment period of less than 15 years, or equal to
double the interest bonus amount as per point a) on
the contractual mathematical reserve for policies with
a premium payment period of 15 years or more. In the
case of annuity contracts, the corresponding final bonus will be allocated only if the payout is made in the
form of an annuity.
Special bonus as additional final bonus upon maturity
of the endowment sum for policies with regular premium payments equal to the interest bonus applicable
at the time. In the case of annuity contracts, the cor-
D
4. In accordance with policy terms and conditions, all insurance policies in Profit Class F that belong to Settlement
Class 2008 will receive the following profit shares:
a)
b)
a total or additional bonus for policies with no regular
premium payments outstanding, equal to 1‰ of the
sum insured upon death, or the annuity present value,
or the survival sum, plus an administrative cost bonus
equal to 0.15% of the sum insured upon death, or the
annuity present value or the survival sum for each year
of the policy term and/or period of deferment, distrib-
95
uted over the last five years of the policy term and/or
period of deferment.
c)
a final bonus upon maturity of the endowment sum in
the contractual mathematical reserve. In addition to
this final bonus, a "goal bonus" of EUR 73.00 for each
EUR 50.00 of monthly premiums will be credited to policies with Annex TBL, provided the requested premium is paid as agreed until expiry of the policy.
5. In accordance with policy terms and conditions, all insurance policies in Profit Classes F, H, I, J, L, X, Y and S –
excluding policies in Settlement Classes 2004, 2006, 2007
and 2008 – will receive the following profit shares:
a)
b)
c)
contractual mathematical reserve, regardless of
whether the payout is made in the form of an annuity or
a lump-sum payment.
Profit Class WVN
1. In accordance with policy terms and conditions, all whole
life endowment insurance policies in Profit Class WVN that
profit shares:
96
a)
b)
an additional bonus equal to 25% of the risk premium
included in the total premium for the current insurance
year for policies with no regular premium payments
outstanding.
life endowment insurance policies in Profit Class WVN that
profit shares:
a)
an interest bonus equal to 1% of the mathematical
b)
outstanding.
life endowment insurance policies in Profit Class WVN –
excluding policies in Settlement Classes 2004 and 2006 –
will receive the following profit shares:
a)
b)
outstanding.
Profit Class FLV
1. In accordance with policy terms and conditions, all insurance policies in Profit Class FLV that belong to Settlement Class 2008 will receive the following profit shares:
0.3% p.a. of the assets of the fund in question will be distributed as profit for policies with no premium payments
outstanding.
2. In accordance with policy terms and conditions, all insurance policies in Profit Class FLV that belong to Settlement Class 2010 will receive the following profit shares:
0.3% p.a. of the assets of the fund in question will be distributed as profit for policies with no premium payments
outstanding.
3. In accordance with policy terms and conditions, all insurance policies in Profit Class FLV – excluding policies in
Settlement Classes 2008 and 2010 – will receive the following profit shares:
a)
Policies with regular premium payments: a bonus equal to 3% of the premium that is set for the insurance
year commencing in 2011.
b)
Single-premium policies: a bonus amounting to 3‰ of
the single premium of the master insurance policy at
the commencement of the insurance year falling in the
year 2011.
4. For premium shares and capital shares invested in the
cover fund (Deckungsstock) of the traditional life insurance
policy, the approved total interest is distributed equally over
all of the days of the calendar year and partial amounts
credited continuously to their portion of the cover fund.
Total interest of 3.25% p.a. will be credited to the corresponding mathematical reserve in 2011.
Profit Class ZV – Retirement provision
For premium shares and capital shares invested in the
cover fund (Deckungsstock) of the traditional life insurance
policy, the approved total interest is distributed equally over
all of the days of the calendar year and partial amounts
Total interest of 3.25% p.a. will be credited to the corresponding mathematical reserve in 2011.
Profit Class BU with profit participation
In accordance with policy terms and conditions, all occupational disability policies in Profit Class BU with profit participation will receive profit shares equal to 35% of the
insurance premium, accumulated with interest at 3.25%
and paid out on expiry of the policy term.
Profit Class BU with premium bonus
In accordance with policy terms and conditions, all occupational disability insurance policies and supplementary occupational disability insurance policies with regular premium payments in Profit Class BU with premium bonus will
receive a premium bonus equal to 35% of the policy premium or supplementary policy premium that is set for the
insurance year commencing in 2011.
Profit Class K / DD supplementary insurance
1. In accordance with policy terms and conditions, all term
insurance policies with regular premium payments in Profit
Class K that belong to Settlement Class 99 will receive a
premium bonus equal to 65% of the premium that is set for
the insurance year commencing in 2011.
insurance policies with regular premium payments in Profit
Class K that belong to Settlement Class 05 receive the
following premium bonus:
a)
65% of the premium that is set for the insurance year
commencing in 2011 for tariffs 3GP, 3FP, H3P, H3G,
K3P and K3G
b)
20% of the premium that is set for the insurance year
commencing in 2011, for all remaining tariffs.
insurance policies with regular premium payments and
supplementary term insurance policies in Profit Class K –
excluding policies in Settlement Classes 99 and 05 – receive a premium bonus equal to 25% of the premium that is
set for the insurance year commencing in 2011.
4. In accordance with policy terms and conditions, all dread
disease supplementary insurance policies with regular
premium payments for lump-sum payment and premium
waiver in the event of serious illnesses or need for extensive
nursing care will receive a premium bonus equal to 10% of
the supplementary policy premium that is set for the insurance year commencing in 2011.
D
Profit Class R
1. In accordance with policy terms and conditions, all insurance policies in Profit Class R (including policies in Settlement Classes 87 and 99) – excluding policies with annuity payments that have already started – will receive the
following profit shares:
a)
b)
an additional bonus equal to 1‰ of the annuity present value or of the survival sum for policies with no regular premium payments outstanding.
97
b)
an additional bonus equal to 1‰ of the annuity present value for policies with no regular premium payments outstanding.
2. In the case of insurance policies in Settlement Class
2000 whose annuity payments have already started and
are in their second year of payments or later, the annuity
payments that have already started will receive an increase
starting as of 1 January 2010 equal to 0% of the last annuity payment. The bonus interest rate is 3.25% for bonus
annuity agreements.
c)
the total mathematical reserve.
c)
starting as of 1 January 2010 equal to 0.5% of the last annuity payment. The bonus interest rate is 3.25% for bonus
annuity agreements.
starting as of 1 January 2010 equal to 1% of the last annuity payment. The bonus interest rate is 3.25% for bonus
annuity agreements.
5. For insurance policies that are not in Settlement Classes
2000, 2004 and 2006 whose annuity payments have already started and are in their second year of payments or
later, the annuity payments that have already started will
receive an increase starting as of 1 January 2010 equal to
0.25% of the last annuity payment. The bonus interest rate
is 3.25% for bonus annuity agreements.
Profit Class Z
1. In accordance with policy terms and conditions, all supplementary pension insurance policies in Profit Class Z –
excluding policies whose annuity payments have already
started – will receive the following profit shares:
a)
98
a bonus amounting to 0.25% of the mathematical
2. In the case of insurance policies in Profit Class Z whose
annuity payments have already started and are in their
second year of payments or later, the annuity payments
that have already started will receive an increase starting as
of 1 January 2010 equal to 0.25% of the last annuity payment.
Profit Class FPZ
1. In accordance with policy terms and conditions, all insurance policies in Profit Class FPZ in the “Single” policy
form will receive profit shares equal to 25% of the risk premium at the commencement of the current insurance year
– as long as the first annuity payment has not yet become
payable. These will be transferred to an investment fund for
the acquisition of fund units.
2. Insurance policies in Profit Class FPZ are subject to the
provisions of Profit Class Z starting as of the time of liquidation.
Profit Class BKV
1. In accordance with policy terms and conditions, all insurance policies in Profit Class BKV that belong to Settlement Class 2006 will receive the following profit shares:
The profit share approved for the entire calendar year and
the guaranteed minimum interest are distributed equally
over all of the days of the calendar year and partial amounts
Total interest of 4% p.a., equal to the sum of the profit share
and guaranteed minimum interest, will be credited to the
corresponding mathematical reserve in 2011.
2. In accordance with policy terms and conditions, all insurance policies in Profit Class BKV - classic that belong to
Settlement Class 2006 will receive the following profit
shares:
An interest bonus equal to 1.75% of the mathematical
payments or later, the annuity payments that have already
started will receive an increase starting as of 1 January
2010 equal to 1.75% of the last annuity payment. There is
no increase for bonus annuity agreements. The bonus annuity interest rate is 4%.
The following applies to all profit classes:
The Managing Board will decide towards the end of 2011
on the size of the profit allocation on 31 December 2011.
3. In the case of insurance policies whose annuity payments have already started and are in their second year of
D
99
VI. SIGNIFICANT PARTICIPATIONS
Participations were held in the following companies as of 31 December 2010:
Name, Location
Direct share
in %
I. Direct interests in affiliated companies
„Grüner Baum“ Errichtungs- und Verwaltungsges.m.b.H., Vienna
Andel Investment Praha s.r.o., Prague
ARITHMETICA Versicherungs- und Finanzmathematische
Beratungs-Gesellschaft m.b.H., Vienna
BML Versicherungsmakler GmbH, Vienna
CENTER Hotelbetriebs GmbH, Vienna
DBR-Liegenschaften GmbH & Co KG, Stuttgart
DBR-Liegenschaften Verwaltungs GmbH, Stuttgart
DIRECT-LINE Direktvertriebs-GmbH, Vienna
EXPERTA Schadenregulierungs-Gesellschaft m.b.H., Vienna
HORIZONT Personal-, Team- und
Organisationsentwicklung GmbH, Vienna
KÁLVIN TOWER Immobilienentwicklungs- und
Investitionsgesellschaft m.b.H., Budapest
PFG Holding GmbH, Vienna
PFG Liegenschaftsbewirtschaftungs GmbH, Vienna
Projektbau Holding GmbH, Vienna
Senioren Residenz gemeinnützige Betriebsgesellschaft mbH, Vienna
Senioren Residenz Veldidenapark Errichtungs- und Verwaltungs GmbH, Innsbruck
Sparkassen Versicherung AG Vienna Insurance Group, Vienna
VICE-Beteiligungs AG, Vienna
Wiener Verein Bestattungs- und Versicherungsservice Gesellschaft m.b.H.,
Vienna
WPWS Vermögensverwaltung GmbH, Vienna
II. More than 20%, ownership, where a direct ownership interest exists
Österreichisches Verkehrsbüro Aktiengesellschaft, Vienna
The exception provision under § 241 (2) and (3) UGB was applied.
100
AN NUAL RE PO RT 20 1 0 | WI E NE R STÄ DTI SCH E
Net income for
the year
in EUR ´000
Equity
capital
in EUR ´000
Last Annual
Financial
Statements
33.40
100.00
-5
854
-77
27,888
2010
2010
75.00
100.00
55.00
100.00
100.00
100.00
25.00
23
23,999
-270
-7,077
0
13
273
385
775,189
-945
11,140
23
59
781
2010
2010
2010
2010
2010
2009
2009
76.00
50
197
2009
100.00
60.05
49.47
60.00
100.00
66.70
16.82
100.00
103
-7,735
0
-20,000
17
-368
68,259
-8
1,914
134,801
45
21,348
913
9,798
501,414
62
2010
2010
2009
2010
2009
2010
2010
2009
100.00
100.00
39
4,620
1,470
381,777
2010
2010
35.46
17,113
143,245
2009
VII. OTHER DISCLOSURES
The company has share capital of EUR 10,000,000.00. It is
divided into 100,000 no-par value ordinary bearer shares
with voting rights, with each share representing an equal
portion of the share capital.
The company has subordinated liabilities in the form of
supplementary capital bond 2009 in accordance with
§ 73c(2) VAG with a total nominal value of
EUR 100,000,000.00. This bond does not have a fixed term.
The interest rate during the first interest rate period (until
29 June 2010) was 4.762% p.a., after which the bond pays
variable interest.
On 22 December 2010, the company issued supplementary capital bond 2010 in accordance with § 73c(2) VAG
with a total nominal value of EUR 175,000,000.00. This
bond does not have a fixed term. The bond has a fixed interest rate of 8% p.a. and can be called in starting as of
28 December 2029.
The auditor has verified legality as required under § 73b(2)
no. 4 VAG.
The company also issued bond 2010-2020 with a nominal
value of EUR 150,000,000.00 in September 2010. The
bond has a term of 10 years and has a fixed interest rate of
3.63% p.a.
IN THE BUSINESS YEAR 2010 THE SUPERVISORY BOARD
WAS MADE UP OF THE FOLLOWING PERSONS:
Chairman:
Günter Geyer
Deputy Chairman:
Hans-Peter Hagen (beginning 24 June 2010)
Martin Simhandl (until 24 June 2010)
Members:
Rudolf Ertl (beginning 24 June 2010)
Hans-Peter Hagen (until 24 June 2010)
Christian Haidinger (beginning 24 June 2010)
Werner Muhm (beginning 24 June 2010)
Gabriele Payr (beginning 24 June 2010)
Martin Simhandl (beginning 24 June 2010)
Karl Skyba (until 24 June 2010)
Klaus Stadler (until 24 June 2010)
Sonja Zwazl (beginning 24 June 2010)
Employee representatives (beginning 3 August 2010):
Peter Grimm
Franz Urban
Gerd Wiehart
Peter Winkler
IN THE BUSINESS YEAR 2010 THE MANAGING BOARD
WAS MADE UP OF THE FOLLOWING PERSONS:
Chairman:
Robert Lasshofer
Members:
Natalia Cadek, formerlyFichtinger (until 24 June 2010)
Christine Dornaus (beginning 24 June 2010)
Judit Havasi
Peter Höfinger (beginning 24 June 2010)
Helene Kanta (until 24 June 2010)
Erich Leiss (beginning 24 June 2010)
D
DURING THE BUSINESS YEAR 2009, THE FOLLOWING
PERSONS WERE APPOINTED TO BE TRUSTEES PURSUANT
TO § 22 (1) VAG:
Trustees:
(Life insurance department – § 20 (2;1) VAG):
Oskar Ulreich
Deputy:
Nicole Plankenbüchler
Trustees:
(except life insurance department § 20 (2;1) VAG):
Wolfgang Pechriggl
Deputy:
Michael Hysek
101
The average number of employees (including cleaning
staff) was 3,528. There average number of salaried
employees was 3,442, of which 1,992 were in sales, resulting in personnel expenses of EUR 89,815,000, and 1,536
in operations, resulting in personnel expenses of
EUR 93,119,000.
There were no loans outstanding to Managing Board members as of 31 December 2010.
Supervisory Board members received no loans in 2010.
No guarantees were outstanding for members of the Managing Board or Supervisory Board as of 31 December 2010.
In 2010, the total expenses for severance pay and pensions
of EUR 21,408,000 included severance pay and pension
expenses of EUR 29,000 for members of the Managing
Board and senior management in accordance with § 80(1)
of the Stock Corporation Act (Aktiengesetz — AktG).
The members of the Managing Board received compensation of EUR 2,195,000 (for members of the Managing
Board after the demerger although relating to the entire
year 2010) for their services in 2010 (2009:
EUR 1,117,000 for the same members; EUR 3,769,000
including Managing Board members of the current VIENNA
before the demerger). Of this amount, EUR 436,000
(EUR 0) was compensation from affiliated companies.
In view of the difficult economic situation of many customers, the Managing Board, in spite of the good result
achieved for 2009 and after having foregone variable compensation for 2008, also waived its claim to bonus payments for 2009. This meant that no bonuses were paid to
the Managing Board in 2010.
102
The Managing Board consisted of five members in 2010
after the effective date of the demerger. The compensation
of these members since the beginning of the year is presented.
The total compensation paid to former members of the
Managing Board (including surviving dependants) was
EUR 1,655,000 in 2010. EUR 75,000 of this amount was
paid by affiliated companies.
Supervisory Board members received EUR 99,000 for
their services to the company in 2010.
A summary of auditing fees is provided in the notes to the
consolidated financial statements.
From 1 January 2005 to 31 December 2008, the company
was the parent company of a group of companies within the
meaning of § 9 of the Corporate Income Act (Körperschaftsteuergesetz — KStG). Since 1 January 2009, within the
meaning of § 9 KStG, the company has been a group member of Wiener Städtische Wechselseitiger Versicherungsverein – Vermögensverwaltung – Vienna Insurance Group.
The taxable earnings of the group members are attributed
to the parent company. The parent company has entered
into agreements with each group member governing the
allocation of positive and negative tax amounts for the purpose of allocating corporate income tax charges according
to their origin. A liability of EUR 11,792,000 is owed to the
parent company for tax allocations. Use was made of the
election to capitalise deferred profit taxes due to temporary
differences between earnings under corporate law and
taxable earnings. The tax rate chosen for deferred taxes is
25%.
The company is a wholly-owned subsidiary of VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe, Vienna.
It therefore is part of a group including its shareholders and
affiliated companies.
Wiener Städtische Wechselseitiger Versicherungsverein –
Vermögensverwaltung – Vienna Insurance Group, Vienna,
prepares consolidated financial statements that include
most of the companies. These consolidated financial
statements have been disclosed and are available for in-
spection at the business premises of this company at
Schottenring 30, 1010 Vienna.
VIENNA INSURANCE GROUP AG Wiener Versicherung
Gruppe, Vienna, prepares consolidated financial statements for a small number of companies. These consolidated financial statements have been disclosed and are
available for inspection at the business premises of this
company at Schottenring 30, 1010 Vienna.
The Managing Board:
Robert Lasshofer
D
Christine Dornaus
Judit Havasi
Peter Höfinger
Erich Leiss
103
AUDITOR’S REPORT
REPORT FOR THE ANNUAL FINANCIAL STATEMENTS
We have audited the accompanying annual financial statements, including the accounting system, of WIENER
STÄDTISCHE Versicherung AG Vienna Insurance Group
(formerly VERSA-Beteiligungs AG), Vienna, for the financial
year from 1 January to 31 December 2010. These annual
financial statements comprise the balance sheet as at
31 December 2010, the income statement for the financial
year ended 31 December 2010, and the notes.
Management’s responsibility for the annual financial statements and for the accounting system
The company’s management is responsible for the accounting system and for the preparation of the annual financial statements, and for providing a true and fair presentation of the company's net assets, financial position and
results of operations in accordance with Austrian Generally
Accepted Accounting Principles. This responsibility includes: the structure, implementation and maintenance of
an internal control system insofar as is relevant to the
preparation of the annual financial statements and for providing a true and fair presentation of the company's net
assets, financial position and results of operations, so that
the annual financial statements are free of material misstatements, whether due to intentional or unintentional
error, the selection and application of appropriate accounting policies, and the preparation of accounting estimates
that appear appropriate under the given circumstances.
104
Auditor’s responsibility and description of type and scope
of the statutory audit
Our responsibility is to express an opinion on these annual
financial statements based on our audit. We conducted our
audit in accordance with the statutory requirements applicable in Austria and Austrian generally accepted standards
for financial statement auditing. Those standards require
that we comply with professional guidelines and that we
plan and perform the audit to obtain reasonable assurance
that the annual financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the annual
financial statements. The procedures selected depend on
the auditor’s judgement, including the assessment of the
risks of material misstatement in the annual financial
statements, whether due to intentional or unintentional
error. In making those risk assessments, the auditor takes
into account the internal control system, insofar as is relevant to the preparation of the annual financial statements
and a true and fair presentation of the company's net assets,
financial position and results of operations, in order to design audit procedures that are appropriate given the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal controls.
An audit also includes assessing the appropriateness of the
accounting policies used and significant estimates made by
management as well as evaluating the overall presentation
of the annual financial statements.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a reasonable basis for
our audit opinion.
Opinion
Our audit did not give rise to any objections. In our opinion,
which is based on the results of our audit, the annual financial statements comply with the statutory requirements and
give a true and fair view of the net assets and financial position of the company as of 31 December 2010 and its results
of operations for the financial year from 1 January to 31
December 2010 in accordance with Austrian generally
accepted accounting principles.
COMMENTS ON THE MANAGEMENT REPORT
The management report is to be audited based on the
statutory requirements to determine whether it is consistent
with the annual financial statements and whether the other
disclosures in the management report create a misleading
view of the company’s position. The auditor’s report also
has to contain a statement as to whether the management
report is consistent with the annual financial statements.
In our opinion, the management report is consistent with
the annual financial statements.
PwC INTER-TREUHAND GmbH
Wirtschaftsprüfungs- und
Steuerberatungsgesellschaft
D
Günter Wiltschek
Austrian Certified Public Accountant
Disclosure, publication and reproduction of the annual financial statements together with the auditor’s report within the
meaning of § 281(2) UGB in a form that is not in accordance with statutory requirements and differing from the version
audited by us is not permitted. Reference to our audit may not be made without prior written permission from us.
105
REPORT BY THE SUPERVISORY BOARD
The Supervisory Board reports that it has taken the opportunity to comprehensively review the management of the
company, both acting as a whole and also regularly through
its committees, Chairman and Deputy Chairman. Detailed
presentations and discussions during meetings of the Supervisory Board and its committees were used for this purpose, as were repeated meetings with the members of the
Managing Board, who used appropriate documentation to
provide detailed explanations and records relating to the
management and financial position of the company. The
strategy, business development, risk management, internal
control system and activities of the internal audit department of the company were also discussed in these meetings.
The Supervisory Board formed four committees from its
members. Information on the responsibilities and composition of these committees is available on the company’s
website and in the corporate governance report.
One ordinary General Meeting and five Supervisory Board
meetings were held in 2010. Four meetings of the Audit
Committee were also held. The Committee for Urgent Matters held no meetings in 2010 but was contacted in writing
with regard to six matters. The Supervisory Board was informed of any resolutions passed by the committees at the
next Supervisory Board meeting. The auditor, PwC INTERTREUHAND GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft (PwC), attended four Audit Committee meetings and four Supervisory Board meetings, including the meeting dealing with the auditing of the annual
financial statements and the formal approval of the annual
financial statements, as well as the General Meeting. In
addition, one meeting of the Committee for Managing Board
matters was also held in 2010.
No agenda items were discussed in the Supervisory Board
and committee meetings without the participation of members of the Managing Board. No member of the Supervisory
Board attended fewer than half of the Supervisory Board
meetings.
106
By the inspection of appropriate documents, meetings with
the Managing Board and discussions with the auditor, the
Supervisory Board Audit Committee was able to form a
satisfactory view of the accounting process and found no
reasons for objection.
The Audit Committee also reviewed the effectiveness of the
internal control system, the internal auditing system and the
risk management system by requesting descriptions of the
processes and organisation of these systems from the Managing Board, the auditor and the individuals directly responsible for these areas. The Audit Committee reported on
these monitoring activities to the Supervisory Board and
stated that no deficiencies had been identified.
In order to prepare the Supervisory Board’s proposal for
selection of the auditor for the annual financial statements,
the Audit Committee requested that PwC INTERTREUHAND GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft submit documents relating to its
license to audit. A written report was prepared stating that
there were no grounds for exclusion or circumstances that
could provide cause for concern regarding partiality. In
addition, a list grouped by category of services showing the
total revenues received by PwC from the company in the
previous financial year was requested and reviewed, and it
was verified that PwC was included in a statutory quality
assurance system. The Audit Committee reported to the
Supervisory Board on the knowledge gained from these
investigations and proposed to the Supervisory Board and
subsequently to the General Meeting that PwC INTERTREUHAND GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft be selected as auditor for the annual
financial statements.
The 2010 annual financial statements and management
report were received from the Managing Board, and reviewed and carefully examined by the Supervisory Board
Audit Committee. The Managing Board’s proposal for appropriation of profits was also debated and discussed in the
course of this examination. As a result of this examination
and discussion, a resolution was unanimously adopted to
recommend unqualified approval to the Supervisory Board.
The committee chairman informed the Supervisory Board
of the resolutions adopted by the committee.
The 2010 annual financial statements and management
report, and the Managing Board's proposal for appropriation of profits were then addressed, thoroughly discussed,
and examined by the Supervisory Board. In addition, the
auditor’s reports prepared by PwC INTER-TREUHAND
GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft for the 2010 annual financial statements and 2010
management report were reviewed by the Audit Committee
and the Supervisory Board, and debated and discussed
in
detail
with
PwC
INTER-TREUHAND
GmbH
Wirtschaftsprüfungs- und Steuerberatungsgesellschaft. The
final findings of the audit provided no reason for objections.
The Supervisory Board declared that it had nothing to add
to the auditor's reports.
After a thorough examination, the Supervisory Board therefore unanimously adopted a resolution to approve the annual financial statements prepared by the Managing Board,
to raise no objection to the management report, and to state
its agreement with the Managing Board's proposal for appropriation of profits.
The 2010 annual financial statements have therefore been
approved in accordance with § 96(4) AktG.
The Supervisory Board proposes to the General Meeting that it approve the appropriation of profits proposed by
the Managing Board and formally approve the actions of the Managing Board and Supervisory Board.
Vienna, March 2011
D
The Supervisory Board:
Günter Geyer
(Chairman)
107
STATEMENT BY THE MANAGING BOARD
We declare to the best of our knowledge that the annual financial statements of WIENER STÄDTISCHE Versicherung AG
Vienna Insurance Group prepared in accordance with the requirements of Austrian corporate law and the Austrian Insurance Supervision Act give a true and fair view of the company’s net assets, financial position and results of operations, that
the management report presents the business development, performance and position of the company in such a way as to
give a true and fair view of its net assets, financial position and results of operations, and that the management report provides a description of the principal risks and uncertainties to which the company is exposed.
The Managing Board:
Robert Lasshofer
Christine Dornaus
Judit Havasi
Peter Höfinger
Erich Leiss
108
PROVINCIAL ADVISORY COUNCILS
The following persons belong to the advisory councils for
the individual federal provinces designated in the Articles
of Association for advising the Managing Board (status as of
31 December 2010):
Elisabeth Schubrig
Matthias Stadler
Dietmar Steinbrenner
Karl Th. Trojan
Johann Trost jun.
Wolfgang Wiedermann
Gerhard Zinner
PROVINCIAL ADVISORY COUNCIL FOR VIENNA
PROVINCIAL ADVISORY COUNCIL FOR UPPER AUSTRIA
Martin Bachlechner
Peter Bosek
Ilse Brandner-Radinger
Ismail H. Ergener
Michael Hafner
René Alfons Haiden
Peter Hanke
Brigitte Jank
Helmut Jonas
Hans Judmann
Willibald Keusch
Michael Landau
Michael Ludwig
Sigi Menz
Walter Nettig
Ernst Nonhoff
Carl Ludwig Richard
Günter Wandl
Udo Weinberger
Wilhelm Wohatschek
Othmar Bruckmüller
Herbert Brunsteiner
Robert Ebner
Othmar Friedl
Alois Froschauer
Peter Halatschek
Norbert Haudum
Heinz Hillinger
Manfred Hochhauser
Hermann Kepplinger
Richard Kirchweger
Markus Limberger
Johann Mayr
Josef Peischer
Ludwig Scharinger
Adolf Scheuchenpflug
Wolfgang Schneckenreither
Komm.-Rat Ernst Strauss
Gerda Weichsler-Hauer
PROVINCIAL ADVISORY COUNCIL FOR LOWER AUSTRIA
PROVINCIAL ADVISORY COUNCIL FOR STYRIA
Christian Aichinger
Gertrude Baumgartner
Rupert Dworak
Councillor of the consistory Burkhard Ellegast
Wilhelm Gelb
Helmut Guth
Councillor of the consistory prelate Berthold Heigl
Herwig Hofstätter
Karl Jurtschitsch
Herbert Kaufmann
Herbert Klenk
Hans Knoll
Otto Korten
Werner Magyer
Josef Panis
Herbert Beiglböck
Gerhard Deutsch
Gerhard Fabisch
Herbert Gritzner
Horst Hilmer
Karl Hofmeister
Franz Huber
Karl-Franz Maier
Ernst Meixner
Wolfgang Messner
Paul Nussbaumer
Hermann Retter
Ulrike Retter
Alois Samer
Horst Schachner
D
109
Christoph Stark
Gerald Stoiser
Josef Wallner
Manfred Wegscheider
PROVINCIAL ADVISORY COUNCIL FOR CARINTHIA AND
EASTERN TYROL
Ingo Appé
Gerald Dietrich
Helmut Eder
Hermann Egger
Horst Felsner
Günter Goach
Reinhard Iro
Rudolf Kandussi
Franz Kreuzer
Johann Lintner
Franz Liposchek
Helmut Manzenreiter
Claudia Mischensky
Hans Michael Offner
Anton Peternel
Herwig Rettenbacher
Hans Schönegger
Oskar Seidler
Arnold Sorger
Andrea Springer
Michael Stattmann
PROVINCIAL ADVISORY COUNCIL FOR SALZBURG
Wolfgang Bell
Franz Blum
Reiner Brettenthaler
Jürgen Danzmayr
August Hirschbichler
Alois Johann Nindl
Regina Ovesny-Straka
Ferdinand Saller
Günter Schied
Harald Seiss
Christian Stöckl
Josef Treml
110
PROVINCIAL ADVISORY COUNCIL FOR TYROL
Martin Baltes
Christian Bernard
Manfried Gantner
Hannes Gschwentner
Markus Jochum
Walter Kircher
Hansjörg Mölk
Hermann Nagiller
Jakob Ringler
Elmar Schmid
Harald Schneider
Karl Schranz
Prelate Raimund Schreier
Elisabeth Zanon
PROVINCIAL ADVISORY COUNCIL FOR VORARLBERG
Wilfried Berchtold
Werner Böhler
Michael Diem
Horst Fritz
Jürgen Gabrieli
Werner Gunz
Guntram Jäger
Edgar Mayer
Peter Mennel
Wilhelm Muzyczyn
Ewald Netzer
Peter Oksakowski
Kuno Riedmann
Anton Steinberger
Walter Thöny
PROVINCIAL ADVISORY COUNCIL FOR BURGENLAND
Mario De Martin De Gobbo
Hannes Frech
Oswald Hackl
Erich Horvath
Christian Illedits
Michael Koch
Helmut Löffler
Hans Lukits
Hans Niessl
Frank Pfnier
Councillor of the consistory Matthias Reiner
Ingrid Salamon
Nikolaus Sauer
Ernst Schmid
Johann Schmidt
Peter Schmitl
Erwin Schneeberger
Rudolf Simandl
Gerhard Steier
Georg Stiegelmar
Csaba Szekely
Robert Tauber
Josef Wein
ADVISORY BOARD FOR FUNERAL INSURANCE
The following persons belong to the advisory council designated in the Articles of Association and established for
advising the Managing Board on funeral matters and funeral issues (status as of 31 December 2010):
D
Walter Egger
Christian Fertinger
Wilhelm Fuchs
Peter Kotzbauer
Othmar Lechner
Hansjörg Lein
Peter Marent
Ulrich Mayerhofer
Franz Nechansky
Gerfried Redlich
Wolfgang Saiko
Peter Schlaffer
Eduard Schreiner
Mario Wagenhuber
Monsignor Karl Wagner
Gregor Zaki
111
PROVINCIAL HEAD OFFICES
PROVINCIAL HEAD OFFICE FOR SALZBURG
PROVINCIAL HEAD OFFICE FOR VIENNA
5020 Salzburg, Max-Ott-Platz 3
Phone: +43 (0) 50 350-45000
Fax: +43 (0) 50 350 99-45000
E-mail: [email protected]
Hans Vierziger, Provincial Director
1020 Vienna, Obere Donaustrasse 49-53
Phone:: +43 (0) 50 350-40000
Fax: +43 (0) 50 350 99-40000
Hermann Fried, Provincial Director
PROVINCIAL HEAD OFFICE FOR LOWER AUSTRIA
3100 St. Pölten, Europaplatz 2
Phone: +43 (0) 50 350-41000
Fax: +43 (0) 50 350 99-41000
Helmut Maurer, Provincial Director
PROVINCIAL HEAD OFFICE FOR UPPER AUSTRIA
4020 Linz, Untere Donaulände 40
Phone: +43 (0) 50 350-42000
Fax: +43 (0) 50 350 99-42000
Günther Erhartmaier, Provincial Director
PROVINCIAL HEAD OFFICE FOR STYRIA
8010 Graz, Brockmanngasse 32
Phone: +43 (0) 50 350-43000
Fax: +43 (0) 50 350 99-43000
Gerald Krainer, Provincial Director
PROVINCIAL HEAD OFFICE FOR CARINTHIA AND
EASTERN TYROL
9020 Klagenfurt, St. Veiter-Ring 13
Phone: +43 (0) 50 350-44000
Fax: +43 (0) 50 350 99-44000
Erich Obertautsch, Provincial Director
112
PROVINCIAL HEAD OFFICE FOR TYROL
6020 Innsbruck, Südtiroler Platz 4
Phone: +43 (0) 50 350-46000
Fax: +43 (0) 50 350 99-46000
Ida Wander, Provincial Director
PROVINCIAL HEAD OFFICE FOR VORARLBERG
6800 Feldkirch, Waldfriedgasse 2
Phone: +43 (0) 50 350-47000
Fax: +43 (0) 50 350 99-47000
Burkhard Berchtel, Provincial Director
PROVINCIAL HEAD OFFICE FOR BURGENLAND
7000 Eisenstadt, Kalvarienbergplatz 7
Phone: +43 (0) 50 350-48000
Fax: +43 (0) 50 350 99-48000
Gerold Stagl, Provincial Director
CONTACTS AND ADDRESSES
COMMUNICATIONS / INTERNAL COMMUNICATIONS
ADVERTISING / SPONSORING
Claudia Riebler
Phone: +43 (0)50 350 21336
Fax: +43 (0)50 350 99-21336
Sabine Weiss
Phone: +43 (0)50 350 21194
Fax: +43 (0)50 350 99-21194
AKTUARIAL SERVICES
Josef Hiller
Phone: +43 (0)50 350 21721
Fax: +43 (0)50 350 99-21721
ALTERNATIVE DISTRIBUTION
Gerhard Heine
Phone: +43 (0)50 350 22840
Fax: +43 (0)50 350 99-22840
AUDIT
Herbert Allram
Phone: +43 (0)50 350 21070
Fax: +43 (0)50 350 99-21070
BUSINESS ORGANISATION
Wolfgang Unger
Phone: +43 (0)50 350 21078
Fax: +43 (0)50 350 99-21078
COLLECTIONS SERVICE CENTRES
Andreas Weninger
Phone: +43 (0)50 350 21817
Fax: +43 (0)50 350 99-21817
COMPANY LAW
Helene Kanta
Phone: +43 (0)50 350 21122
Fax: +43 (0)50 350 99-21122
CONTROLLING
Szabolcs Nagy
Phone: +43 (0)50 350 21056
Fax: +43 (0)50 350 99-21056
CORPORATE AND LARGE RISK BUSINESS
underwriting
Wolfgang Petschko
Phone: +43 (0)50 350 21406
Fax: +43 (0)50 350 99-21406
D
claims
Josef Aigner
Phone: +43 (0)50 350 26112
Fax: +43 (0)50 350 99-26112
DISTRIBUTIONS
Walter Wichtel
Phone: +43 (0)50 350 22530
Fax: +43 (0)50 350 99-22530
113
EQUITY HOLDINGS MANAGEMENT, LOANS
LIFE AND CASUALTY INSURANCE
Christine Dornaus
Phone: +43 (0)50 350 21126
Fax: +43 (0)50 350 99-21126
Mathias Frisch
Phone: +43 (0)50 350 21600
Fax: +43 (0)50 350 99-21600
FINANCE AND ACCOUNTING
MANAGING BOARD SECRETARIAT
Hans Meixner
Phone: +43 (0)50 350 21810
Fax: +43 (0)50 350 99-21810
Doris Janik
Phone: +43 (0)50 350 21059
Fax: +43 (0)50 350 99-21059
HEALTH INSURANCE
MOTOR VEHICLE INSURANCE (UNDERWRITING)
Peter Kranz
Phone: +43 (0)50 350 21610
Fax: +43 (0)50 350 99-21610
Michael Schlögl
Phone: +43 (0)50 350 21530
Fax: +43 (0)50 350 99-21530
HUMAN RESOURCES / HUMAN RESOURCES
DEVELOPMENT
NON-LIFE, GENERAL LIABILITY AND LEGAL EXPENSES
INSURANCE – PRIVATE AND COMMERCIAL BUSINESS
(UNDERWRITING)
Robert Bilek
Phone: +43 (0)50 350 21300
Fax: +43 (0)50 350 99-21300
Robert Ulbing
Phone: +43 (0)50 350 21421
Fax: +43 (0)50 350 99-21421
IT MANAGEMENT AND PROVIDER MANAGEMENT
PERSONAL INSURANCE SERVICE CENTRE
Klaus Krebs
Phone: +43 (0)50 330 22106
Fax: +43 (0)50 330 99-22106
Sabine Pfeffer
Phone: +43 (0)50 350 21313
Fax: +43 (0)50 350 99-21313
LEGAL PROTECTION INSURANCE (CLAIMS)
PROPERTY INSURANCE SERVICE CENTRE
Günther Bauer
Phone: +43 (0)50 350 21587
Fax: +43 (0)50 350 99-21587
114
Annemarie Ulbing
Phone: +43 (0)50 350 27500
Fax: +43 (0)50 350 99-27500
REAL ESTATE AND REAL ESTATE-RELATED HOLDINGS
BRANCH OFFICES
Anton-Leonhard Werner
Phone: +43 (0)50 350 21050
Fax: +43 (0)50 350 99-21050
ITALY
REINSURANCE
Eduard Oberleithner
Phone: +43 (0)50 350 21474
Fax: +43 (0)50 350 99-21474
RISK MANAGEMENT
Alexander Schuh
Phone: +43 (0)50 350 21450
Fax: +43 (0)50 350 99-21450
Wiener Städtische Versicherung AG
Vienna Insurance Group
Via Cristoforo Colombo 149
I-00147 Rome
Phone: +39 (0) 6 510 70 11
Internet: www.wieneritalia.com
SLOVENIA
Wiener Städtische zavarovalnica podružnica
Masarykova 14
SI-1000 Ljublijana
Phone: +386 (0) 1 300 17 00
Internet: www.wienerstaedtische.si
SECURITIES AND FUNDS
Reza Kazemi Tabrizi
Phone: +43 (0)50 100 75473
Fax: +43 (0)50 100-975473
D
SPECIAL DAMAGES
Wolfgang Reisinger
Phone: +43 (0)50 350 21500
Fax: +43 (0)50 350 99-21500
OMBUDSMAN
Julia Christanell
Phone: +43 (0)50 350 21088
Fax: +43 (0)50 350 99-21088
115
BRANCH OFFICES
Wiener Städtische is available throughout Austria for the cost of local call 24 hours a day, 7 days a week.
Phone +43 (0) 50 350-direct dial ; Fax: +43 (0) 50 350 99-direct dial
Offices with motor vehicle reporting
VIENNA
Headquarters
Direct dial 20000
Schottenring 30
1010 Vienna
[email protected]
Provincial Head Office Vienna
Direct dial 40000
Obere Donaustrasse 49-53
1020 Vienna
[email protected]
Kundenbüro Vorsorge
Direct dial 22380
Zelinkagasse 14
1010 Vienna
[email protected]
Donaustadt
Direct dial 51400
Bernoullistrasse 1
1220 Vienna
[email protected]
Floridsdorf
Direct dial 51300
Am Spitz 10
1210 Vienna
[email protected]
Landstrasse
Direct dial 50800
Rochusgasse 3-5
1030 Vienna
[email protected]
116
Liesing
Direct dial 51700
Breitenfurter Strasse 393
1230 Vienna
[email protected]
Bruck/Leitha
Direct dial 52900
Fischamender Strasse 54
2460 Bruck/Leitha
[email protected]
Ottakring
Direct dial 51100
Thaliastrasse 44
1160 Vienna
[email protected]
Gänserndorf
Direct dial 52500
Bahnstrasse 15
2230 Gänserndorf
[email protected]
LOWER AUSTRIA
Gföhl
Direct dial 64300
Hauptplatz 1
3542 Gföhl
[email protected]
Provincial Head Office
Lower Austria
Direct dial 41000
Europaplatz 2
3100 St. Pölten
[email protected]
Amstetten
Direct dial 53900
Waidhofner Strasse 31
3300 Amstetten
[email protected]
Aspang
Direct dial 53400
Mönichkirchner Strasse 3
2870 Aspang
[email protected]
Baden
Direct dial 53000
Bahngasse 9
2500 Baden
[email protected]
Gmünd
Direct dial 54900
Stadtplatz 17
3950 Gmünd
[email protected]
Gross Enzersdorf
Direct dial 52600
Bischof Berthold-Platz 4
2301 Gross Enzersdorf
[email protected]
Herzogenburg
Direct dial 53600
St. Pöltner Strasse 26
3130 Herzogenburg
[email protected]
Hollabrunn
Direct dial 51900
Bahnstrasse 12
2020 Hollabrunn
[email protected]
Mistelbach
Direct dial 52200
Ernstbrunnerstrasse 8
2130 Mistelbach
[email protected]
Stockerau
Direct dial 51800
Hauptstrasse 4
2000 Stockerau
[email protected]
Horn
Direct dial 54600
Schützenplatz 2
3580 Horn
[email protected]
Mödling
Direct dial 52800
Klostergasse 14
2340 Mödling
[email protected]
Ternitz
Direct dial 53200
Hans Czettel-Platz 1
2630 Ternitz
[email protected]
Klosterneuburg
Direct dial 54200
Am Renninger 2
3400 Klosterneuburg
[email protected]
Neulengbach
Direct dial 53500
Hauptplatz 27
3040 Neulengbach
[email protected]
Tulln
Direct dial 54400
Königstetter Strasse 60
3430 Tulln
[email protected]
Korneuburg
Direct dial 52100
Wiener Ring 16
2100 Korneuburg
[email protected]
Neunkirchen
Direct dial 53100
Schwarzottstrasse 2a
2620 Neunkirchen
[email protected]
Waidhofen/Thaya
Direct dial 54700
Bahnhofstrasse 8
3830 Waidhofen/Thaya
[email protected]
Krems
Direct dial 54500
Ringstrasse 11
3500 Krems
[email protected]
Poysdorf
Direct dial 52400
Brunngasse 4
2170 Poysdorf
[email protected]
Waidhofen/Ybbs
Direct dial 54000
Riedmüllerstrasse 3a/1
3340 Waidhofen/Ybbs
[email protected]
Laa/Thaya
Direct dial 52300
Stadtplatz 38
2136 Laa/Thaya
[email protected]
Retz
Direct dial 52000
Hauptplatz 21
2070 Retz
[email protected]
Wolkersdorf
Direct dial 65100
Wiener Strasse 1
2120 Wolkersdorf
[email protected]
Lilienfeld
Direct dial 53700
Babenbergerstrasse 36
3180 Lilienfeld
[email protected]
Scheibbs
Direct dial 53800
Rathausplatz 11
3270 Scheibbs
[email protected]
Wr. Neustadt
Direct dial 53300
Ferdinand Porsche-Ring 2
2700 Wr. Neustadt
[email protected]
Melk
Direct dial 54100
Hauptstrasse 9
3390 Melk
[email protected]
Schwechat
Direct dial 52700
Wiener Strasse 9
2320 Schwechat
[email protected]
Zistersdorf
Direct dial 65500
Schlossgasse 2
2225 Zistersdorf
[email protected]
D
117
Zwettl
Direct dial 54800
Neuer Markt 13
3910 Zwettl
[email protected]
Gmunden
Direct dial 56800
Schiffslände 1
4810 Gmunden
[email protected]
Linz, Urfahr
Direct dial 55200
Freistädter Strasse 16
4040 Linz,Urfahr
[email protected]
UPPER AUSTRIA
Grieskirchen
Direct dial 56600
Rossmarkt 30
4710 Grieskirchen
[email protected]
Mondsee
Direct dial 61100
Herzog-Odilostrasse 14
5310 Mondsee
[email protected]
Kirchdorf/Krems
Direct dial 56200
Linzer Strasse 2
4560 Kirchdorf/Krems
[email protected]
Perg
Direct dial 55800
Dr. Schober-Strasse 25
4320 Perg
[email protected]
Kremsmünster
Direct dial 56100
Rathausplatz 9
4550 Kremsmünster
[email protected]
Ried/lnnkreis
Direct dial 57200
Thurnerstrasse 16
4910 Ried/lnnkreis
[email protected]
Leonding
Direct dial 55400
Michaelsbergstrasse 5
4060 Leonding
[email protected]
Rohrbach
Direct dial 55600
Pfarrgasse 4
4150 Rohrbach
[email protected]
Linz, Kleinmünchen
Direct dial 55100
Zeppelinstrasse 4
4032 Linz,Kleinmünchen
[email protected]
Schärding
Direct dial 56700
Linzer Strasse 29
4780 Schärding
[email protected]
Linz, Rainerstrasse
Direct dial 55000
Rainerstrasse 22
4020 Linz
[email protected]
Scharnstein
Direct dial 56400
Hauptstrasse 22
4644 Scharnstein
[email protected]
Upper Austria
Direct dial 42000
Untere Donaulände 40
4020 Linz
[email protected]
Bad Ischl
Direct dial 56900
Karl Wiesinger-Strasse 2
4820 Bad Ischl
[email protected]
Bad Leonfelden
Direct dial 65200
Böhmerstrasse 7
4190 Bad Leonfelden
[email protected]
Braunau/lnn
Direct dial 57300
Ringstrasse 47
5280 Braunau/lnn
[email protected]
Eferding
Direct dial 55500
Bahnhofstrasse 19
4070 Eferding
[email protected]
Freistadt
Direct dial 55700
Zemannstrasse 25
4240 Freistadt
[email protected]
118
Schörfling
Direct dial 57100
Marktplatz 12
4861 Schörfling
[email protected]
Steyr, Bahnhofstr.
Direct dial 64100
Bahnhofstrasse 8
4400 Steyr
[email protected]
Steyr, Leopold-Werndl-Str.
Direct dial 55900
Leopold-Werndl-Strasse 10
4400 Steyr
[email protected]
Traun
Direct dial 55300
Kremstalerstrasse 20
4050 Traun
[email protected]
Vöcklabruck
Direct dial 57000
Linzerstrasse 61
4840 Vöcklabruck
[email protected]
Vorchdorf
Direct dial 64200
Lambacherstrasse 7
4655 Vorchdorf
[email protected]
Wels
Direct dial 56300
Bauernstrasse 9
4600 Wels
[email protected]
Windischgarsten
Direct dial 65700
Gleinkerseestrasse 1
4580 Windischgarsten
[email protected]
STYRIA
Provincial Head Office Styria
Direct dial 43000
Brockmanngasse 32
8010 Graz
[email protected]
Bad Aussee
Direct dial 59900
Kirchengasse 31
8990 Bad Aussee
[email protected]
Bad Radkersburg
Direct dial 58500
Emmenstrasse 21-27
8490 Bad Radkersburg
[email protected]
Bruck/Mur
Direct dial 58800
Mittergasse 4
8600 Bruck/Mur
[email protected]
Deutschlandsberg
Direct dial 58600
Frauentalerstrasse 44
8530 Deutschlandsberg
[email protected]
Feldbach
Direct dial 58200
Bismarckstrasse 18
8330 Feldbach
[email protected]
Fürstenfeld
Direct dial 58100
Realschulstrasse 2a
8280 Fürstenfeld
[email protected]
Gleisdorf
Direct dial 57900
Businesspark 4
8200 Gleisdorf
[email protected]
Gratkorn
Direct dial 57700
Grazer Strasse 50
8101 Gratkorn
[email protected]
Graz, Andritz
Direct dial 65400
Andritzer Reichstrasse 26
8045 Graz
[email protected]
Graz, Elisabethstrasse
Direct dial 66200
Elisabethstrasse 59
8010 Graz
[email protected]
Graz, Seiersberg
Direct dial 057600
Kärnterstrasse 525-527
8054 Seiersberg
[email protected]
D
Gröbming
Direct dial 59800
Poststrasse 336
8962 Gröbming
[email protected]
Hartberg
Direct dial 58000
Ressavarstrasse 12-14
8230 Hartberg
[email protected]
Judenburg
Direct dial 59400
Jägersteig 2
8750 Judenburg
[email protected]
119
Kapfenberg
Direct dial 58900
Mariazellerstrasse 1
8605 Kapfenberg
[email protected]
Voitsberg
Direct dial 58700
Hauptplatz 1
8570 Voitsberg
[email protected]
St. Veit/Glan
Direct dial 60200
Platz am Graben 3
9300 St. Veit/Glan
[email protected]
Kindberg
Direct dial 59000
Hauptstrasse 44
8650 Kindberg
[email protected]
Weiz
Direct dial 57800
Marburgerstrasse 47
8160 Weiz
[email protected]
Villach
Direct dial 60400
Moritschstrasse 5
9500 Villach
[email protected]
Knittelfeld
Direct dial 59300
Hauptplatz 15
8720 Knittelfeld
[email protected]
CARINTHIA
Völkermarkt
Direct dial 60000
Klagenfurter Strasse 12
9100 Völkermarkt
[email protected]
Leibnitz
Direct dial 58400
Bahnhofstrasse 9
8430 Leibnitz
[email protected]
Leoben
Direct dial 59200
Franz Josef-Strasse 1
8700 Leoben
[email protected]
Liezen
Direct dial 59700
Werkstrasse 30
8940 Liezen
[email protected]
Murau
Direct dial 59600
Anna-Neumann-Strasse 9
8850 Murau
[email protected]
Mürzzuschlag
Direct dial 59100
Kirchengasse 10
8680 Mürzzuschlag
[email protected]
120
Carinthia
Direct dial 44000
St. Veiter-Ring 13
9010 Klagenfurt
[email protected]
Feldkirchen
Direct dial 60500
Dr.-Arthur-Lemisch-Strasse 1
9560 Feldkirchen
[email protected]
Ferlach
Direct dial 60100
Hauptplatz 5
9170 Ferlach
[email protected]
Wolfsberg
Direct dial 60300
Wiener Strasse 5
9400 Wolfsberg
[email protected]
EASTERN TYROL
Lienz
Direct dial 60800
Andreas-Hofer-Strasse 1a
9900 Lienz
[email protected]
SALZBURG
Hermagor
Direct dial 60600
Hauptstrasse 33
9620 Hermagor
[email protected]
Spittal/Drau
Direct dial 60700
Bahnhofstrasse 2
9800 Spittal/Drau
[email protected]
Provincial Head Office Salzburg
Direct dial 45000
Max-Ott-Platz 3
5020 Salzburg
[email protected]
Abtenau
Direct dial 61300
Au 87
5441 Abtenau
[email protected]
Bad Gastein
Direct dial 61700
Bahnhofsplatz 7
5640 Bad Gastein
[email protected]
Tamsweg
Direct dial 61500
Kirchengasse 13
5580 Tamsweg
[email protected]
Reutte
Direct dial 62900
Mühlerstrasse 19
6600 Reutte
[email protected]
Bischofshofen
Direct dial 61400
Franz-Mohshammer-Platz 14
5500 Bischofshofen
[email protected]
Zell am See
Direct dial 61800
Brucker Bundesstrasse 67
5700 Zell am See
[email protected]
Schwaz
Direct dial 62100
Swarovskistrasse 25a
6130 Schwaz
[email protected]
Hallein
Direct dial 61200
Bürgermeisterstrasse 13
5400 Hallein
[email protected]
TYROL
St. Johann/Tirol
Direct dial 62500
Kaiserstrasse 32
6380 St. Johann
[email protected]
Mattighofen (Oberösterreich)
Direct dial 61000
Stadtplatz 18
5230 Mattighofen
[email protected]
Saalfelden
Direct dial 61900
Bahnhofstrasse 12/Top4
5760 Saalfelden
[email protected]
Salzburg, Lasserstrasse
Direct dial 60900
Lasserstrasse 32
5020 Salzburg
[email protected]
Seekirchen
Direct dial 65300
Bahnhofstrasse 5
5201 Seekirchen
[email protected]
St. Johann/Pongau
Direct dial 61600
Hans Kappacherstrasse 1
5600 St. Johann/Pongau
[email protected]
Provincial Head Office Tyrol
Direct dial 46000
Südtiroler Platz 4
6020 Innsbruck
[email protected]
Imst
Direct dial 62700
Pfarrgasse 32
6460 Imst
[email protected]
Kitzbühel
Direct dial 62400
Im Gries 27-31
6370 Kitzbühel
[email protected]
Kufstein
Direct dial 62300
Arkadenplatz 6
6330 Kufstein
[email protected]
Landeck
Direct dial 62800
Malser Strasse 19
6500 Landeck
[email protected]
Telfs
Direct dial 62600
Anton Auer Str. 5
6410 Telfs
[email protected]
VORARLBERG
D
Vorarlberg
Direct dial 47000
Waldfriedgasse 2
6800 Feldkirch
[email protected]
Bludenz
Direct dial 63000
Färberstrasse 10
6700 Bludenz
[email protected]
Bregenz
Direct dial 63400
Rheinstrasse 42
6900 Bregenz
[email protected]
121
Dornbirn
Direct dial 63200
Schwefel 91
6850 Dornbirn
[email protected]
Jennersdorf
Direct dial 64000
Eisenstädter Strasse 1
8380 Jennersdorf
[email protected]
Oberpullendorf
Direct dial 63700
Hauptstrasse 22
7350 Oberpullendorf
[email protected]
BURGENLAND
Mattersburg
Direct dial 63600
Schubertstrasse 42
7210 Mattersburg
[email protected]
Oberwart
Direct dial 63800
Waldmüllergasse 6
7400 Oberwart
[email protected]
Burgenland
Direct dial 48000
Kalvarienbergplatz 7
7000 Eisenstadt
[email protected]
Güssing
Direct dial 63900
Hauptplatz 10
7540 Güssing
gü[email protected]
122
Neusiedl/See
Direct dial 63500
Altenburgerstrasse 20/Top 1
7100 Neusiedl/See
[email protected]
GLOSSARY
Actuarial reserve
A reserve calculated according to mathematical principles
for future insurance payments in the life and health insurance segments. In the health insurance segment, this is
also referred to as an ageing reserve.
Annuity tables
Annuity tables are the most important calculation tool used
in life and health insurance. The annuity tables used by
insurers are based on the mortality tables derived from the
population census. These are revised every ten years to
take into account changing conditions, such as medical
advances and improved living conditions. For example, due
to medical advancements, improved life circumstances or
similar.
Associated companies
The parent company and its subsidiaries are considered to
be associated companies if the parent company is able to
exert control over the business policies of the subsidiary.
Examples of this are where the parent company directly or
indirectly holds more than half of all voting rights, a controlling agreement exists, or it is possible to appoint the majority of the members of the Managing Board or other executive bodies of the subsidiary (§ 244 UGB).
Capital investments
Assets such as securities, loans, real estate and company
participations that are predominantly used to cover the
commitments from the insurance business.
Share of the premiums to which the reinsurer is entitled in
return for reinsuring certain risks.
Claim rate
Ratio of expenses for the insurance incidents in comparison
to capped premiums.
Combined ratio
Ratio for evaluation of the business development in the
indemnity and accident insurance. All actuarial expenses,
after deducting the reinsurance shares except for the
change of fluctuation provision in percent of the capped
premiums after deducting the reinsurance shares (=sum of
net cost rate and net loss ratio). Does not include any financial revenues.
Consolidation
The financial assets of the parent company and those of the
subsidiaries are combined when the consolidated financial
statements are prepared by the parent company. During
this process, intercompany capital combinations, interim
profit/ loss, payables and receivables, and income and expenses between group companies are eliminated.
Consolidation circle
Consists of the parent company and all subsidiaries included in the consolidated financial statements.
Consolidated financial statement
Annual financial statement prepared by the parent company that presents the net assets, financial position, results
of operations and cash flow of the corporate group. Refer to
consolidation.
D
Cost rate
Ratio of expenses for the insurance operation in comparison to capped premiums.
123
Delayed claims
A loss that has occurred during the current business year
but will not be reported until the following year.
Direct business
In-house acquired business, including co-insurance shares
assumed, less surrendered co-insurance shares.
Earned premiums
The portion of premiums written which is allocated to the
current fiscal year.
EBT (Earnings before tax)
Earnings before tax: Total of all actuarial earnings, financial
results and other non-actuarial expenses and earnings
before tax.
Equity capital
Consists of capital stock and reserves
Expenses for insurance incidents
Paid insurance benefits plus the change in provisions for
losses that have already occurred, but are not yet processed, plus the costs for claim settlement, loss investigation
(e.g. fees for expert witnesses, legal fees) and loss prevention.
Expenses for the insurance operations
Commissions, personnel costs, cost of materials and other
expenses for selling and managing insurance policies.
Financial Market Authority (FMA)
Refer to insurance supervisory authority.
124
Financial result
Balances from revenue and expenses for capital investments and interest. This includes, for example, income from
securities, loans, real estate and equity interests, as well as
bank interest, and expenses incurred in the financial area,
such as scheduled depreciation on owned real estate, unscheduled writedowns of securities to listed market prices,
bank fees, etc.
Fluctuation provision
One of the actuarial provisions. It is built up in years with
below average loss ratio and used in years with above average loss ration.
Fund-linked life insurance
In this special form of life insurance, the benefit amount
depends on the change in value of the financial assets
combined in one fund. The policy holder carries the capital
investment risk, since he has the opportunity of directly
participating in an above average value increase of the fund,
but at the same time must take the risk of value losses into
account.
GBVVU
Regulation of the Financial Market Authority (FMA) on the
profit-sharing in the life insurance policy (Gewinnbeteiligungs- Verordnung - GBVVU) of 20 October 2006.
Gross/net
In insurance terminology, “gross/net” means before or after
reinsurance has been deducted (“net” is also used to mean
“for own account”). In connection with income from equity
interests, the term “net” is used when related expenses
have already been deducted from income (e.g., write-offs
and losses from sale).Therefore, (net) income from equity
interests equals the profit or loss from these interests.
Hidden reserves
The actual value (market value) of an asset item in the balance sheet is above the book value (created for example by
a price increase of securities).
Premium refund (profit-dependent)
The policyholder’s profit participation in the profit of the
insurance class in question (life/health/property and casualty)
Index-linked life insurance
Life insurance where the income depends upon the development of the underlying stock indices.
Premium refund (profit-independent)
Contractually accorded refund of premiums to the policyholder.
Indirect business
Transactions accepted as reinsurance (active reinsurance
Premiums written
The premiums billed to the policy holders without tax, expense and fee shares.
Insurance benefits
Refer to expenses for insurance incidents
Loss provision
Provision for not yet processed (= already occurred, but not
yet or only partially paid) insurance incidents.
NKS divisions
NKS divisions are “non-vehicle insurance divisions” in the
indemnity and accident insurance.
Premium
Agreed fee paid in exchange for assumption of risk by an
insurance company.
Profit participation
See premium refund (profit-dependent).
Reinsurance
Insurance policy for insurance companies. An insurance
company insures a portion of its risk through another insurance company, the reinsurer.
Reinsurance companies
Company that will assume the risks from a primary insurer
or another reinsurer (retrocession) for an agreed premium.
D
Premium carried forward
The portion of the premium income that represents the
remuneration for the insurance period after the balance
sheet date, i.e. money that has not yet been earned on the
balance sheet date. Premiums carried forward are reported
in the balance sheet under actuarial provisions.
125
Risks/risk
Insured individuals, objects, hazards or interests
Retained earnings
Retained earnings are the company earnings that have not
been distributed as dividends or transferred to the following
year as profit carried forward.
Secondary market rate of return
The secondary market rate of return indicates the average
rate of return of fixed-interest rate securities in circulation
with an agreed maturity of more than four years. The SMR
mirrors the interest rate level of the capital market
Single premium payment
If the policyholder fulfils the obligation to pay the premium
at the beginning of the policy period by making a lump sum
payment for the entire insurance period.
UGB
Austrian Corporate Code
126
These consist of the provision for outstanding claims, actuarial reserve, unearned premiums, provisions for profit dependent and profit-independent premium refunds, the
equalisation provision, and other underwriting reserves.
VAG
The Austrian Insurance Supervision Act (Versicherungsaufsichtsgesetz) includes provisions governing the organisation
and supervision of insurance companies.
VersVG
Insurance Contract Law, regulated the general insurance
contract law.
VVO
Austrian Insurance Association: Umbrella association of the
Austrian insurance companies in Austrian Federal Chamber
of Commerce.
POSTAL ADDRESS
GENERAL INFORMATION
Schottenring 30
1010 Vienna
Phone: (0) 50 350 350
Editor and media owner
Company register: 333376i
Dpr-Number: 4001506
Managing Board Secretariat
Contact person: Doris Janik
Schottenring 30
1010 Vienna
Production & Design
be.public
Werbung Finanzkommunikation GmbH
Produced in-house using FIRE.sys
Michael Konrad GmbH Corporate Media Solutions
English translation
Bowne Translation Services
NOTES
This annual report also includes forward-looking statements based on current assumptions and estimates that
are made by the Management of the VIENNA INSURANCE
GROUP Wiener Städtische Versicherung AG up to the best
of its knowledge. Information offered using the words “expectation” or “target” or similar formulations indicate such
forward-looking statements. The projections that are related to the future development of the company represent
estimates that were made on the basis of the information
available as of the date on which this annual report went to
press. Actual results may differ from the forecast if the
assumptions underlying the forecast fail to materialise or if
risks arise at a level that was not anticipated.
Printing
Gutenberg GmbH, Wiener Neustadt
Photos
Ian Ehm
www.shutterstock.com
www.istockphoto.com
D
17PG001AGE10
Note regarding rounding: Calculation differences may arise
when rounded amounts and percentages are summed
automatically.
The annual report was prepared with the greatest possible
care in order to ensure that the information provided in all
parts is correct and complete. Rounding, type-setting and
printing errors can nevertheless not be completely ruled
out.
Editorial deadline: 28 February 2011
127
SUCCESS AND SECURITY WITH A
future

WE ARE - Wiener Städtische

Transcription

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