Strong growth in Austria and CEE drives healthy result for VIG

Vienna Insurance Group (VIG) has broken the recent trend in insurance company half-year results by reporting strong growth in premiums and a decent profit at the same time, despite the recent tough financial and operating conditions.

Group premium volume increased by 11.6% to €6.44bn. The combined ratio improved by 0.9 percentage points to 94.3%.

Profit before taxes rose by 10.3% to €277.3m and the solvency ratio of VIG Group increased to 285%.

“We still experience very challenging times, marked primarily by the war in Ukraine, high inflation and the pandemic, which is still making its effects felt. Although these influences – which also have an impact on the insurance industry – are clouding the economic outlook, VIG continues to show very strong resilience, which is once again manifested in improved key figures,” said CEO Elisabeth Stadler.

“The success of our group is built on a long-term-oriented and broadly diversified business model, which shows its strengths especially in particularly challenging periods. The half-year results make us confident that we will achieve a positive operating performance in 2022,” she added.

VIG said all lines of business and segments are showing a rise in premiums compared to the first half of the previous year. “The significant increase with double-digit growth rates is primarily due to the non-life lines of business (motor third-party liability),” stated VIG.

The largest premium increases were recorded in the Czech Republic, Austria and the wider central and eastern Europe (CEE) segments. Romania and the Baltic states in particular recorded high premium growth, said VIG.

The biggest improvements in combined ratio were recorded in Austria, Poland and extended CEE, and particularly Bulgaria and Albania, including Kosovo.

The pre-tax result of €277.3m was 10.3% higher than in the previous year, despite losses incurred due to Russia’s invasion of Ukraine.

“In addition to the measures already taken in the first quarter of 2022, this result includes further measures, meaning over three quarters of the approximately €165m exposure to Russian government and corporate bonds of the VIG group have already been provided for in the first half of the year,” said VIG.