31 | Premiums written

Direct business	2008 € 000	2007 € 000
Property and casualty insurance	2,363,371	2,157,697
Health insurance	947,151	907,375
Life insurance	1,626,169	1,393,344
Total (fully consolidated values)	4,936,692	4,458,416
Of which written in:
Austria	3,005,433	3,036,834
other member states of the EU and other signatory     states of the Treaty on the European Economic Area	1,684,410	1,271,167
other countries	246,849	150,415
Total (fully consolidated values)	4,936,692	4,458,416

Indirect business	2008 € 000	2007 € 000
Property and casualty insurance	38,107	40,052
Health insurance	420	384
Life insurance	27,144	29,037
Total (fully consolidated values)	65,672	69,473

	2008 € 000	2007 € 000
Total (fully consolidated values)	5,002,364	4,527,889

Premiums written in property and casualty insurance	2008 € 000	2007 € 000
Direct business
Fire and business interruption insurance	198,175	179,233
Household insurance	177,946	166,501
Other property insurance	223,432	203,727
Motor TPL insurance	594,114	554,404
Other motor insurance	448,189	373,768
Casualty insurance	259,533	240,664
Liability insurance	229,254	219,831
Legal expenses insurance	54,084	49,568
Marine, aviation and transport insurance	108,659	102,136
Other insurance	69,985	67,865
Total	2,363,371	2,157,697
Indirect business
Marine, aviation and transport insurance	2,856	2,407
Other insurance	35,252	37,645
Total	38,107	40,052
Total direct and indirect business (fully consolidated values)	2,401,479	2,197,749

Reinsurance premiums ceded	2008 € 000	2007 € 000
Property and casualty insurance	149,660	307,547
Health insurance	1,461	1,397
Life insurance	79,833	79,505
Total (fully consolidated values)	230,954	388,449

The decrease in issued reinsurance premiums is due to the termination of the quota agreements on 31 December 2007.

32 | Premiums earned

	2008 € 000	2007 € 000
Property and casualty insurance	2,213,783	1,858,355
Gross	2,363,326	2,160,721
Reinsurers’ share	–149,542	–302,366
Health insurance	946,419	905,623
Gross	947,882	907,028
Reinsurers' share	–1,463	–1,405
Life insurance	1,570,170	1,342,399
Gross	1,649,961	1,421,897
Reinsurers' share	–79,791	–79,498
Total (fully consolidated values)	4,730,372	4,106,377

Premiums earned in indirect business	2008 € 000	2007 € 000
posted immediately	10,004	10,457
posted after up to 1 year	28,022	29,512
posted after more than 1 year	0	0
Property and casualty insurance	38,026	39,969
posted immediately	420	384
posted after up to 1 year	0	0
posted after more than 1 year	0	0
Health insurance	420	384
posted immediately	3,859	4,131
posted after up to 1 year	23,285	24,906
posted after more than 1 year	0	0
Life insurance	27,144	29,037
Total (fully consolidated values)	65,590	69,391

Earnings from indirect business	2008 € 000	2007 € 000
Property and casualty insurance	–327	7,880
Health insurance	–33	–52
Life insurance	4,667	1,391
Total (fully consolidated values)	4,308	9,218

33 | Income from fees and provisions

Reinsurance commission and profit shares from reinsurance business ceded	2008 € 000	2007 € 000
Property and casualty insurance	13,626	59,842
Health insurance	116	106
Life insurance	5,657	11,478
Total (fully consolidated values)	19,399	71,426

34 | Net investment income

By segment	Property and casualty insurance		Health insurance		Life insurance		Group total
	2008 € 000	2007 € 000	2008 € 000	2007 € 000	2008 € 000	2007 € 000	2008 € 000	2007 € 000
I. Properties held as financial investments	5,547	–19,336	21,922	8,399	25,597	6,344	53,065	–4,593
II. Shares in associated companies	4,605	201,148	2,054	64,383	136,483	37,544	143,142	303,075
III. Variable-yield securities	–27,300	50,086	–45,839	14,454	–307,631	222,522	–380,770	287,062
1. Available for sale	–20,283	45,460	–23,191	9,886	–226,558	168,165	–270,032	223,511
2. At fair value through profit or loss	–7,017	4,626	–22,648	4,568	–81,072	54,357	–110,738	63,551
IV. Fixed interest securities	19,193	31,721	10,999	15,050	192,968	180,141	223,159	226,912
1. Held to maturity	494	0	1,129	0	7,721	0	9,343	0
2. Available for sale	20,535	31,509	15,807	14,570	204,070	172,587	240,411	218,666
3. At fair value through profit or loss	–1,836	212	–5,937	480	–18,823	7,554	–26,595	8,247
V. Loans and other investments	69,468	20,684	28,515	17,690	84,036	11,543	182,018	49,917
1. Loans	13,952	10,259	18,753	13,770	30,817	11,426	63,522	35,455
2. Other investments	55,516	10,425	9,762	3,920	53,219	117	118,496	14,462
VI. Derivative financial instruments (held       for trading)	335	14,170	–1,068	14,851	26,003	128,762	25,270	157,783
VII. Expenditures for asset management,        interest expenditures and other	–5,416	–16,777	–2,783	–1,306	–10,090	–9,068	–18,289	–27,152
Total (fully consolidated values)	66,432	281,696	13,799	133,521	147,364	577,788	227,596	993,005

The exceptionally high income from shares in associated companies resulted in the financial year from capital gains (€115,140,000), in the previous year from capital gains (€72,937,000) and gains from dilution (€211,416,000) during the capital increases and floatation of STRABAG SE.

By income type	Ordinary income		Write-ups and unrealised capital gains		Realised capital gains		Write-offs and unrealised capital losses		Realised capital losses		Group total		of which value adjustment
	2008 € 000	2007 € 000	2008 € 000	2007 € 000	2008 € 000	2007 € 000	2008 € 000	2007 € 000	2008 € 000	2007 € 000	2008 € 000	2007 € 000	2008 € 000	2007 € 000
I. Properties held as financial investments	51,546	48,223	0	0	35,539	1,516	–31,352	–54,251	–2,668	–81	53,065	–4,593	–1,004	–25,000
II. Shares in associated companies	29,488	18,288	0	211,416	115,140	73,593	–1,000	0	–485	–222	143,142	303,075	0	0
III. Variable-yield securities	135,794	129,863	157,282	107,174	183,123	318,192	–650,759	–192,286	–206,211	–75,881	–380,770	287,062	–323,773	–40,832
1. Available for sale	105,338	109,757	32,781	8,178	84,611	265,103	–343,170	–94,063	–149,591	–65,465	–270,032	223,511	–323,773	–40,832
2. At fair value through profit or loss	30,457	20,106	124,501	98,996	98,512	53,089	–307,589	–98,223	–56,620	–10,416	–110,738	63,551	0	0
IV. Fixed interest securities	498,573	518,154	81,154	75,851	5,014	38,099	–316,891	–358,301	–44,691	–46,891	223,159	226,912	–157,526	–140,012
1. Held to maturity	9,343	0	0	0	0	0	0	0	0	0	9,343	0	0	0
2. Available for sale	471,617	488,146	67,631	66,638	4,520	35,578	–263,861	–327,715	–39,495	–43,982	240,411	218,666	–157,526	–140,012
3. At fair value through profit or loss	17,612	30,008	13,523	9,213	494	2,521	–53,030	–30,587	–5,195	–2,909	–26,595	8,247	0	0
V. Loans and other investments	195,952	62,171	4,518	162	295	0	–16,871	–12,414	–1,876	–3	182,018	49,917	0	0
1. Loans	79,092	39,703	1,662	0	279	0	–15,648	–4,245	–1,863	–3	63,522	35,455	0	0
2. Other investments	116,860	22,468	2,855	162	17	0	–1,223	–8,169	–13	0	118,496	14,462	0	0
VI. Derivative financial instruments (held for trading)	–22,600	–22,707	157,681	117,997	19,798	153,434	–118,508	–66,217	–11,102	–24,724	25,270	157,783	0	0
VII. Expenditures for asset management, interest expenditures and other	–18,289	–27,152	0	0	0	0	0	0	0	0	–18,289	–27,152	0	0
Total (fully consolidated values)	870,464	726,840	400,635	512,601	358,909	584,834	–1,135,380	–683,469	–267,032	–147,801	227,596	993,005	–482,302	–205,844

The updating of the value adjustment concerns both appreciation and depreciation of financial assets, excluding assets held for trading and financial assets at fair value through profit or loss. Interest income from impaired assets amounts to €55,097,000 (2007: €42,415,000). The net investment income of €227,596,000 includes realised and unrealised profits and losses amounting to €–642,868,000, which includes currency losses of €–64,089,000. In addition, positive currency effects amounting to €58,656,000 were recorded directly under equity. The effects are mainly the result of investments in USD and GBP.

Of which securities, available for sale Type of investment	Ordinary income		Write-ups and unrealised capital gains		Realised capital gains		Write-offs and unrealised capital losses		Realised capital losses		Group total		of which value adjustment
	2008 Tsd. €	2007 Tsd. €	2008 Tsd. €	2007 Tsd. €	2008 Tsd. €	2007 Tsd. €	2008 Tsd. €	2007 Tsd. €	2008 Tsd. €	2007 Tsd. €	2008 Tsd. €	2007 Tsd. €	2008 Tsd. €	2007 Tsd. €
III. Variable-yield securities
1. Available for sale	105,338	109,757	32,781	8,178	84,611	265,103	–343,170	–94,063	–149,591	–65,465	–270,032	223,511	–323,773	–40,832
Shares in associated companies	3,398	1,709	0	0	29,123	3,984	0	0	–10	–31	32,511	5,662	0	0
Shares	13,688	17,107	317	597	4,671	132,013	–224,615	–45,166	–38,165	–42,935	–244,104	61,615	–215,316	–33,982
Equity fonds	8,628	12,513	1,144	0	43	67,280	–27,123	–8,501	–73,298	–12,174	–90,605	59,119	–36,252	–5,427
Debenture bonds, not capital-guaranteed	17,519	21,636	25,248	129	31,583	42,731	–80,773	–31,776	–4,910	–1,646	–11,334	31,075	–67,964	0
Other variable-yield securities	51,435	51,353	6,072	7,452	985	347	–6,840	–4,942	–32,304	–8,202	19,348	46,007	0	2,254
Participating interests and other investments	10,670	5,439	0	0	18,206	18,749	–3,820	–3,677	–905	–476	24,152	20,035	–4,241	–3,677
IV. Fixed-interest securities
2. Available for sale
Fixed interests	471,617	488,146	67,631	66,638	4,520	35,578	–263,861	–327,715	–39,495	–43,982	240,411	218,666	–157,526	–140,012

35 | Other income

36 | Insurance benefits

	Gross		Reinsurers’ share		Retention
	2008 € 000	2007 € 000	2008 € 000	2007 € 000	2008 € 000	2007 € 000
Property and casualty insurance
Expenditure for claims
Claims paid	1,454,635	1,296,433	–120,073	–183,900	1,334,562	1,112,534
Change in provision for outstanding claims	–11,110	147,397	61,375	–32,660	50,265	114,737
Total	1,443,525	1,443,830	–58,698	–216,559	1,384,827	1,227,271
Change in actuarial provision	–1,890	–104	15	5	–1,874	–99
Change in other actuarial provisions	–460	–1,672	–401	–9	–862	–1,681
Expenditure for profit-unrelated and profit-related premium refunds	29,963	26,082	–77	–188	29,886	25,894
Total amount of benefits	1,471,138	1,468,136	–59,161	–216,751	1,411,977	1,251,385
Health insurance
Expenditure for claims
Claims paid	671,886	653,484	–1,091	–968	670,795	652,516
Change in provision for outstanding claims	4,719	996	57	58	4,776	1,053
Total	676,606	654,480	–1,034	–910	675,571	653,570
Change in actuarial provision	126,686	126,213	132	134	126,818	126,347
Change in other actuarial provisions	–4	0	0	0	–4	0
Expenditure for profit-unrelated and profit-related premium refunds	19,622	31,336	–3	–3	19,619	31,333
Total amount of benefits	822,910	812,028	–905	–779	822,005	811,250
Life insurance
Expenditure for claims
Claims paid	1,506,420	1,532,342	–69,965	–60,214	1,436,454	1,472,128
Change in provision for outstanding claims	–18,692	17,050	–296	–1,975	–18,987	15,074
Total	1,487,728	1,549,392	–70,261	–62,190	1,417,467	1,487,202
Change in actuarial provision	120,080	–144,232	–11,786	–15,136	108,294	–159,368
Change in other actuarial provisions	3,193	253	–558	–41	2,635	212
Expenditure for profit-unrelated and profit-related premium refunds and/or (deferred) profit participation	–200,586	206,344	–170	0	–200,756	206,344
Total amount of benefits	1,410,415	1,611,757	–82,775	–77,367	1,327,640	1,534,390
Total (fully consolidated values)	3,704,463	3,891,921	–142,842	–294,897	3,561,622	3,597,024

37 | Operating expenses

	2008 € 000	2007 € 000
Property and casualty insurance
a) Acquisition costs
Payments	507,717	455,648
Change in deferred acquisition costs	–11,145	–10,356
b) Other operating expenses	257,395	220,234
	753,967	665,527
Health insurance
a) Acquisition costs
Payments	87,879	86,806
Change in deferred acquisition costs	–1,232	–816
b) Other operating expenses	47,614	43,301
	134,262	129,290
Lebensversicherung
a) Acquisition costs
Payments	270,769	269,870
Change in deferred acquisition costs	15,715	–7,492
b) Other operating expenses	82,094	69,909
	368,577	332,287
Total (fully consolidated values)	1,256,805	1,127,104

38 | Other expenses

	2008 € 000	2007 € 000
a) Other actuarial expenses	59,121	58,586
Property and casualty insurance	21,016	20,119
Health insurance	1,440	2,773
Life insurance	36,665	35,694
b) Other non-actuarial expenses	28,247	26,875
Property and casualty insurance	21,757	24,316
Health insurance	354	513
Life insurance	6,136	2,047
of which
services rendered	3,882	1,391
exchange rate losses	4,416	6,703
motor vehicle registration	7,445	6,603
other	12,504	12,178
c) Other expenses	12,048	1,107
For foreign currency translation	7,991	469
For other	4,056	638
Total (fully consolidated values)	99,416	86,569

39 | Tax expenditure

Income tax	2008 € 000	2007 € 000
Actual tax in reporting year	61,735	33,052
Actual tax in previous year	–5,586	–9,600
Deferred tax	–32,680	47,811
Total (fully consolidated values)	23,470	71,263

Reconciliation statement	2008 € 000	2007 € 000
A. Profit from ordinary activities	90,217	340,256
B. Anticipated tax expenditure    (A. * Group tax rate)	23,283	85,206
Adjusted by tax effects from
1. Tax-free investment income	–8,222	–7,191
2. Other	8,409	–6,752
Amortisation of goodwill	91	4,622
Non-deductible expenses /       other tax-exempt income	2,559	–3,446
Changes / deviations in tax rates	0	–6,028
Deviations in tax rates	11,194	6,336
Taxes previous years	–5,586	–9,600
Lapse of loss carried forward and other	151	1,364
C. Income tax expenditure	23,470	71,263
Average effective tax burden in %	26.0	20.9

The corporate income tax rate applicable to all Group segments was 25%, as expected. To the extent that the minimum taxation is applied in life insurance at an assumed profit participation of 85%, this leads to a different corporate tax rate.