The combined ratio including the claims, commission and expense ratios is an alternative performance measure and is not a measure of financial performance under IFRS. Because it is not determined in accordance with IFRS, these ratios as presented by a.s.r. may not be comparable to other similarly titled measures of performance of other companies.
| | 2024 | 2023 |
|---|---|---|
| Claims ratio | 74.56% | 77.0% |
| Commission ratio | 12.7% | 12.3% |
| Expense ratio | 6.5% | 6.1% |
| | | |
| Combined ratio | 93.8% | 95.4% |
| | 2024 | 2023 |
|---|---|---|
| Property & Casualty (P&C) | 90.7% | 93.6% |
| Disability | 93.0% | 93.5% |
| P&C and Disability | 91.9% | 93.5% |
| Health | 99.1% | 98.9% |
The claims, commission and expense ratios can be calculated based on the following information:
| | 2024 | 2023 |
|---|---|---|
| Insurance contract revenue | 5,614 | 5,379 |
| Allocation of reinsurance premiums paid | -129 | -122 |
| Adjustment to the insurance contract revenue | 17 | 0 |
| Net insurance contract revenue | 5,502 | 5,257 |
| | | |
| Insurance claims and benefits | -4,198 | -4,267 |
| Amounts recoverable from reinsurers | 97 | 110 |
| Adjustment to the insurance claims and benefits | -2 | 106 |
| Adjusted net insurance claims and benefits | -4,102 | -4,050 |
| | | |
| Insurance service operating expenses | -1,061 | -966 |
| Of which: Incurred commission expenses | -701 | -646 |
| Insurance service operating expenses excluding incurred commission expenses | -360 | -320 |
The Non-life combined ratio indicates the insurance related profitability of a non-life insurance contract. To measure the Non-life combined ratio, the insurance service expenses are divided by the insurance contract revenue, considering the operating result definition of those items (see section 7.4.3 and section 7.10).
In 2024, the adjustment to the net insurance contract revenue (€ 17 million) relates to the impact on the CSM of hedging for pre-recognition interest rate movements. The adjustments to the insurance claims and benefits (€ -2 million) consist of € 8 million impact of changes of inflation on the Liability for Incurred Claims, € -11 million related to changes to future services on onerous contracts and € 1 million impact on the loss component of hedging for pre-recognition interest rate movements.
In 2023, adjustments to the insurance claims and benefits (€ 106 million) consist of € 87 million impact of changes of inflation on the Liability for Incurred Claims and € 19 million related to changes to future services on onerous contracts.