Evaluation of the VIG Insurance Group’s Insurance Portfolio in the Czech Republic

Abstract

This article aims to determine whether the developments in the insurance business production correspond with the development of the expense-to-revenue ratio of an insurance portfolio. The subject of the research is insurance companies belonging to the VIG insurance group in the Czech Republic. Its commercial production, i. e. insurance business, will be evaluated. The evaluation will be performed by analysis and comparison of financial ratio indicators for the period 2005–2013. The insurance business will be first examined by market positions through market share, increase in gross written premiums and product diversification. Subsequently, insurance business will be evaluated by cost ratio indicators, namely by expense ratio and loss ratio. The expense-to-revenue ratio and product diversification will be assessed in the non-life segment. Finally, a comparison will reveal whether the development of market position corresponds with the development of operating costs and costs expended on insurance benefits.