The geopolitical and economic conditions remain challenging. Nevertheless, VIG is showing very positive development and proves once again that it is very well positioned operationally and in terms of capital. We also believe we are fully on track with regard to earnings before taxes and expect earnings for 2023 to be at the upper end of the forecast range
Hartwig Löger, CEO of the Vienna Insurance Group
Vienna (OTS) – The Vienna Insurance Group (VIG) increased the premiums it wrote after the first nine months of 2023 to 10.6 billion euros (+1.1 billion euros or +11.4%). The group’s solvency ratio remains at a very high level at 303.8%.
„The geopolitical and economic conditions remain challenging. Nevertheless, VIG is showing very positive development and proves once again that it is very well positioned operationally and in terms of capital. We also believe we are fully on track with regard to earnings before taxes and expect earnings for 2023 to be at the upper end of the forecast range
“, explains Hartwig Löger, General Director and Chairman of the Board of the Vienna Insurance Group.
Premiums written over 10 billion euros
In the first three quarters, VIG generated a total premium volume of EUR 10,619 million. This corresponds to an increase of 11.4% compared to the previous year. A significant increase in premiums was achieved in all segments. A premium volume of EUR 3,361 million (+2.3%) was achieved in Austria and EUR 1,769 million (+9.2%) in the Czech Republic. In both countries, the increase in premiums results primarily from property and health insurance business. With a premium volume of EUR 1,150 million, Poland was able to record a double-digit premium increase (+16%), which can be attributed to very good development in the motor vehicle comprehensive insurance, other property insurance and single life insurance lines. The Extended CEE segment (Albania, Kosovo, Baltics, Bosnia-Herzegovina, Bulgaria, Croatia, Moldova, North Macedonia, Romania, Serbia, Slovakia, Ukraine and Hungary) achieved a premium volume of EUR 2,994 million (+11.3%). The drivers included a strong performance in Hungary (+122.5 million euros), the Baltic states (+62.9 million euros) and solid growth in the vehicle comprehensive segment in Romania (+53 million euros). The special markets (Germany, Georgia, Liechtenstein, Turkey) were able to generate 769 million euros in premiums (+42.1%), with the growth largely coming from Turkey, both in the life, motor vehicle and property insurance sectors.
Solvency ratio of 303.8%
The group’s solvency ratio at the end of the third quarter of 2023 was 303.8% (including transitional measures) and was further increased to 282% compared to the first half of 2023. This illustrates the continuously high capital strength, which was recently confirmed by the rating agency Standard & Poor’s (S&P) with a rating of A+ with a stable outlook. According to S&P, VIG had a robust capital position above the “AAA” level at the end of 2022 and the end of the first half of 2023.
outlook
The growth forecasts for VIG’s core markets in CEE continue to be above the EU average. The VIG companies are showing strong performance despite an overall weaker macroeconomic environment and some local severe weather events. VIG is confident that it will achieve pre-tax profit for the group at the upper end of the range of EUR 700 – 750 million for the full year 2023.
Information about reporting
Since January 1, 2023, the Vienna Insurance Group has been accounting in accordance with the new accounting standards IFRS 17 (insurance contracts) and IFRS 9 (financial instruments). The premiums charged are not part of the mandatory IFRS reporting, but they continue to be presented.
Questions & Contact:
VIENNA INSURANCE GROUP AG Vienna insurance group
Schottenring 30, 1010 Wien
public.relations@vig.com
Wolfgang Haas, Tel: +43 50 390-21029, wolfgang.haas@vig.com
