Annual Report 2022
Financial performance

Gross written premiums

Gross written premiums increased by 153 million to 4,276 million (2021: 4,124 million), mostly due to organic growth in P&C and Disability, which more than offset a decrease in Health. The total organic growth of P&C and Disability combined was 9.1% (263 million), driven by increased sales volumes, tariff adjustments (mainly in Disability) and the closing of a new collective disability insurance agreement as part of the collective labour agreement for the nursing and home care employee sector. In Health, premiums decreased by € 111 million due to a less competitive price proposition.

Operating result

The operating result of the Non-life segment remained relatively stable at 325 million (2021: 322 million). In P&C, the result reflects the impact of February storms (39 million) and an ongoing normalisation of claims following the abolishing of COVID-19 restrictions. Contribution from Disability increased, driven mainly by a strong performance in Individual Disability and Sickness leave. Underlying performance was strong, with healthy underwriting results in both P&C and Disability, offsetting negative developments in Health due to a decrease in the portfolio and its impact on unfavourable claims development.

Operating expenses

Operating expenses increased by 17 million (6.2%) to 286 million, mostly driven by organic growth in P&C and Disability. At segment level, the cost ratio deteriorated slightly due to a shift in the business mix. In P&C and Disability, the cost ratio improved by 0.2%-points due to volume growth at relatively fixed costs.

Combined ratio

The combined ratio of P&C and Disability remained stable at 91.7%1, which was better than the target range of 93-95%.

In P&C, the combined ratio amounted to 93.9% (2021: 91.9%). Despite the increase of 2%-points, the combined ratio and underlying business performance remained strong. 2021 was impacted positively by COVID-19 restrictions, partly offset by the July floods and reserve strengthening. This year, weather related calamities (the ‘triple storm’ in February) and large claims had a higher impact than last year, and the level of claims rose due to increased traffic intensity as lockdown measures were lifted.

In Disability, the combined ratio amounted to 89.3% (2020: 91.6%). The combined ratio improved by 2.3%-points, mainly due to improved underwriting results in Individual Disability and Sickness leave.

The combined ratio of Health deteriorated by 4.6%-points to 100.8%. In 2021, Health benefited from government support relating to COVID-19 and an extraordinary inflow of customers. This year, a net outflow and its impact on unfavourable claims experience resulted in an increase of the combined ratio. Due to a large inflow of customers (to be insured in 2023), acquisition costs were taken into account in 2022, leading to an adverse impact of 0.8%-points on the combined ratio.

Result before tax

The result before tax decreased by 271 million to 87 million (2021: 357 million), mainly due to a negative impact from incidental items. Indirect investment income decreased by 184 million, mostly due to lower realised gains and losses, lower fair value revaluations and higher impairments. The result of other incidentals decreased by 90 million, primarily driven by a strengthening of Disability provisions relating to the 10% increase in the legal minimum wage as at 1 January 2023 (91 million). This includes a 27 million reclassification of the HY 2022 operating result to other incidentals relating to the strengthening of Disability provisions on the anticipated 2.5% increase in the minimum wage at that time.

  • 1The combined ratio excludes the impact of the 10% increase of the legal minimum wage for the part that is above a regular indexation of 2.1%. The additional increase is considered an incidental item. The impact of this on the combined ratio is 3.0%-point.