Annual Report 2022
Non-life ratios
Non-life combined ratio
Claims ratio74.0%73.7%
Commission ratio13.9%13.3%
Expense ratio6.7%6.5%
Combined ratio94.6%93.6%
Non-life combined ratio per business line
Property & Casualty (P&C)93.9%91.9%
P&C and Disability91.7%91.8%

The COR increased to 94.6% (2021: 93.6%) due to the increased COR's of the Health and P&C product lines as outlined below. The non-life business mix shifted, with growth in Disability and P&C and contraction in Health. This resulted in an increase in the commission ratio and expense ratio.

In P&C, the COR 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 COR amounted to 89.3% (2021: 91.6%). The COR improved by 2.3%-point mainly due to improved underwriting results in Individual Disability and Sickness leave. The impact of the 8% extra increase of the minimum wage to a total of 10% was excluded from the COR. The COR including this impact amounted to 95.6%. (+6.2%-points).

The COR of Health deteriorated by 4.6%-points to 100.8%. In 2021, Health benefited from government support related to COVID-19 and an extraordinary inflow of customers. This year, a net outflow in combination with unfavorable claims experience, resulted in an increase of the COR. In addition, due to a large inflow in customers (to be insured in 2023), acquisition costs were taken into account in 2022, leading to an impact of 0.8%-points on the COR.

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

Claims, commission and expenses
Net insurance premiums Non-life4,1594,042
Net insurance claims and benefits-3,227-3,056
- Interest accrual on provisions (Disability)7274
- Compensation capital gains (Disability)-11-6
- Prudence margin (Health)-58
- Incidental910
Total adjustments14775
Net insurance claims and benefits (after adjustments)-3,080-2,981
Fee and commission income2423
Commission expenses-602-564
Commission expenses - Investment related13
Operating expenses-286-269
Corrections made for investment charges86
Operational expenses (after adjustments)-278-263

The adjustment for incidental items in the table above refers to the strengthening of Disability provisions related to the 10% increase of the legal minimum wage as of 1 January 2023.