Offsetting increases in premiums were retained insurance benefits of EUR 1,433.8 million (+ 5.5%).

Health insurance -- underproportional increase in claims
Premiums earned from the health sector amounted in the period of reporting to EUR 662.7 million EUR, corresponding to a growth of 4.6% - the highest for years. This growth is mainly due to increased new business following an almost complete revamping of the entire product range.

Retained benefits from health claims over the same period amounted to EUR 600.7 million (+ 2.8%),

For the first time in many years there was therefore an underproportional increase in claims. An important factor in this situation is the renegotiation of group insurance contracts with consistently unfavourable claims records. The aim is to limit quantitative growth and to keep specialist medical costs under control.

Damage and accident insurance: damage quota improves
The earned premium income from damage and accident insurance in the concluded year of reporting amounted to EUR 678.5 million (+ 5.0%). One reason for the strong increase in premium volume was the new contribution from Polonia S.A> from the second half of 2001. This more than compensated for the loss of the German business of the Salzburger Landes-Versicherung.

Retained benefits from damage and accident claims declined - partly because of the corrective measures taken - by 2.9% to EUR 495.2 million. The damage ratio improved by 6%.