Annual Report 2021
Financial statements
Non-life ratios
Non-life combined ratio
Claims ratio73.7%73.6%
Commission ratio13.3%14.6%
Expense ratio6.5%7.0%
Combined ratio93.6%95.2%
Non-life combined ratio per business line
Property & Casualty (P&C)91.9%92.5%
P&C and Disability91.8%93.6%

The combined ratio (COR) decreased to 93.6% (2020: 95.2%) in line with the decreasing COR's of the different business lines. As a result of a shift in the non-life business mix towards Health the commission ratio and expense ratio were decreasing whereas the claims ratio remained stable. The claims ratio benefited from the COVID-19 impact (-2%-points, 2020: -1%-point). See chapter 6.6.7 for more detailed information regarding the COVID-19 impact on the net insurance claims and benefits.

In P&C, the COR amounted to 91.9% (2020: 92.5%). The COVID-19 measures still resulted in significantly lower claims, particularly in motor and fire. There was a negative impact from reserve strengthening, primarily related to motor vehicle liability, including the effect from a further, sector-wide, lowering of the actuarial interest rate for personal injury.

In Disability, the COR amounted to 91.6% (2020: 95.1%). The underlying performance improved, thanks to pricing actions and improvements made in the sickness leave portfolio via claims control and a further focus on prevention and re-integration. Reserves were strengthened in group disability and sickness leave, reflecting new insights into the impact of long-term (psychological) absenteeism after falling ill to COVID-19. However, this impact is less severe than last year.

The COR of Health improved by 1.6%-points to 96.2%. The improvement was mainly due to a strong underlying business performance driven by growth of the portfolio. The contribution from COVID-19 compensation schemes was limited.

The claims, commission and expense ratio can be calculated based on the following information:

Claims, commission and expenses
Net insurance premiums Non-life4,0423,568
Net insurance claims and benefits-3,056-2,710
- Interest accrual on provisions (Disability)7476
- Compensation capital gains (Disability)-63
- Prudence margin (Health)85
Total adjustments7584
Net insurance claims and benefits (after adjustments)-2,981-2,626
Fee and commission income2325
Commission expenses-564-545
Corrections made for investment related commission expenses3-
Operating expenses-269-257
Corrections made for investment charges67
Operational expenses (after adjustments)-263-251