Non-life insurance refers to bearing the customer's risk against insurance premiums. Non-life Insurance pre-tax earnings consist of the balance on technical account, investment Income and other Income and expenses. The balance on technical account comes from insurance premium revenue less claims incurred and operating expenses.
The most important profitability indicator is the combined ratio showing the proportion of claims incurred and operating expenses to insurance premium revenue. Non-life insurance profitability is secured, for example, by risk-based premium rating, proactive loss prevention, reinsurance on the greatest individual risks and efficient claims settlement.
With respect to investment operations, Non-life Insurance is tasked with investing assets covering technical provisions and equity in a safe and profitable way conducting a policy of sufficient risk diversification.