Austrian insurers post healthy premium growth but reduced profits in Q1

Austrian insurers recorded a strong premium increase of 6.96% in the first quarter of this year compared with the same period in 2021, to reach €6.26bn, according to latest figures from the Austrian Insurance Association (VVO).

Underwriting results deteriorated and, as a result, profits delivered by Austrian insurers fell in the first quarter against Q1 2021. But solvency levels remain very healthy and risk managers need not be worried about the security of their cover.

The total premium volume in the first three months of €6.26bn was made up of €4.11bn in P&C insurance, up 8.34%; €1.48bn from life, up 4.10 %; and €671m of health cover, up 5.12%.

The first-quarter underwriting result showed a fall of €191.82m and the financial result fell by €259.73m compared to the previous year period.

The total of all assets at market value held by Austrian insurers, excluding investments in unit-linked and index-linked life insurance, is €111.87bn.

At the end of the first quarter, hidden reserves showed a decrease of 19.86% on the previous quarter, down to €19.34bn.

Claims expenses, made up of payments for claims and changes in the provisions for outstanding claims, amounted to €3.98bn in the first quarter.

The VVO said that about 66.67% of Austrian insurance companies have a solvency ratio of more than 200%. The median is 221.36%.

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