Basic information

The core activity of Wüstenrot companies in Germany and Austria has been building saving (both companies were even pioneers in the area in their countries - the name of Wüstenrot is taken from the name of the small village in the south of Germany where the idea of building saving was born in 1921), but the scope of supplementary financial and banking services has become really extensive. The Wüstenrot building saving companies became complex financial groups in Germany and Austria, offering complex services in all areas of securing, generating property and providing for housing.

It is the same in the Czech Republic where the Wüstenrot trademark appeared in 1993. After five years of operation of the Wüstenrot building saving company on the Czech market it was apparent that it would be suitable to extend the offered services with life insurance. Therefore, the Wüstenrot life insurance company was founded by Wüstenrot Versicherungs-AG, Salzburg and Wüstenrot & Württembergische AG with its seat in Stuttgart. Connection with these large and financially very strong groups is of crucial significance for the Wüstenrot life insurance company - it does not only mean strong capital background, the possibility to build upon successful tradition and use their long-standing know-how, but in particular big security for our clients.

Business results

In the very first year of its existence, the Wüstenrot life insurance company reached very good economic results when the prescribed insurance premiums amounted almost to CZK 8 million.

In the first five years of its existence when the insurance company operated with reasonable and gradually decreasing loss, it came out of red numbers and it closed the year 2004 with the profit of CZK 1.6 million. The total prescribed insurance premiums reached CZK 208 million. The prescribed insurance premiums in insurance for current premiums which is a much more important number for the economy of an insurance company rose from CZK 122 million to CZK 156 million in one year, which is almost 28%.

The insurance company reached profit also in 2005. The yearly final accounts were closed with the profit of CZK 6.4 million. The total prescribed insurance premiums reached CZK 191 million, of which the crucial part - prescribed current premiums - had positive dynamics and amounted to CZK 162 million. At the end of the year, the insurance company registered 52,000 policies with the total insured amount exceeding CZK 9.5 billion. The insurance technical reserves rose by 15% and reached the amount of CZK 485 million.

The year 2006 was very successful for the insurance company. It was the third successive year that the insurance company reached profit. Profit after taxation reached CZK 13 million. The company turnover ("prescribed insurance premiums") rose again to CZK 212 million.

In 2006, also the number of policies administered by Wüstenrot increased by 7 % – to 55,304. The sum of insured amounts within the basic insurance reached CZK 10.8 billion. The insurance technical reserves rose by 16% and reached CZK 561 million.

In 2007, the insurance company reached profit again, amounting to CZK 17.6 million after taxation, which means growth by 35% compared with the previous year. The company turnover ("prescribed insurance premiums") rose by 8.3% from CZK 212 million to CZK 229.7 million. Also the number of policies administered by the insurance company rose to 56,476.
More details about the economic results are available in the section Media Service or in our current annual report.
 
It is very important for our clients that the reached increase of the technical reserves and saved costs make it possible for us to add share in profit to current premiums within standard insurance:

• Increase in 1999 12.5 %;
• Increase in 2000 10 %;
• Increase in 2001 10 %;
• Increase in 2002 8 %;
• Increase in 2003 6 %;
• Increase in 2004 5 %;
• Increase in 2005 4 %;
• Increase in 2006 4 %;
• Increase for 2007 4 %;
  

Insurance with an individual account have borne very high interest in the past four successive years (in this insurance, the data about the amount of the yearly interest can be compared directly with the data about interest of term deposits in banks):

• Interest in 2003 6 % p.a. (Retirement insurance SPONSOR);
• Interest in 2004 5 % p.a. (The best policy SPONSOR/BANK), or 4 % p.a. (Retirement insurance SPONSOR/BANK);
• Interest in 2005 4 % (The best policy and the Retirement policy SPONSOR/BANK);
• Interest in 2006 4 % (The best policy and the Retirement policy SPONSOR/BANK Plus, Life Package, Retirement Package and Children's Package);
• Interest in 2007 4 % (The best policy SPONSOR/BANK Plus, Life Package, Retirement Package and Children's Package);
• 3 % (Retirement policy SPONSOR/BANK)