Insurance

Vienna Insurance Group: strong performance after the first three quarters of 2022

In the midst of major geopolitical and economic stakes, Vienna Insurance Group (VIG) reported a very positive development for the first three quarters of 2022

All key figures further improved compared to the same period of the previous year

“Of course, like any business, we are feeling the effects of the current situation, inflation being the main factor here. This situation leads among other things to an increase in the claims burden, thus weighing on the development of the combined ratio. Nevertheless , we are confident that our broad diversification strategy will enable us to effectively manage overall inflation risk A risk assessment has shown that our most important markets by volume are well positioned due to the actions taken and current pricing policy We remain confident in the long-term growth potential of the CEEC region, especially as the current forecasts for this region are again significantly higher than those of the euro zone

Given the current situation and provided that there are no unexpected external factors and volatilities by the end of the year, we expect a premium volume of at least 12 billion euros for the whole of 2022 and a pre-tax profit that exceeds the previous year’s figure by 511 million euros. In terms of the combined ratio, we are targeting a value of around 95% despite the difficult environment,” explains Elizabeth StadlerCEO of Vienna Insurance Group

Premium growth across all lines of business and segments

A clear upward trend can be observed in the volume of premiums. The total volume of premiums increased significantly by 13.6% over the first nine months of 2022, reaching €9,530 million. This includes the first consolidation of the most recently acquired insurance companies in Hungary and Turkey with premiums of around €291 million, which represent 3.0% of total premium volume. Even without these companies, premium growth is double digit at 10.1%. There was premium growth across all lines of business and segments of VIG. With the exception of single-premium life insurance (+3.1%), all business lines posted double-digit growth rates (automotive civil liability +21%, auto damage insurance +13.6%, other insurance property and liability insurance +15.3%, health insurance +11.8%, regular premium life insurance +10%)

Pre-tax profit up around 10%

To €413.4 million, pre-tax profit was about 10% higher than the previous year’s value. To €479.2 million, the financial result (excluding the result of equity affiliates) was down 8.4% compared to the previous year, mainly due to the measures already taken in the first and second quarters of 2022 in the context of exposure to government bonds. state and Russian enterprises. To €302.4 millionthe net result is 10.1% higher than the previous year

Slightly improved combined ratio

At 95.1%, the combined ratio is slightly lower than the value of the previous year (95.2%). However, the pressure of increasing average losses, partly due to inflation, is evident compared to the first half of the year, when the combined ratio was 94.3%.

Vig Group investments, including cash and cash equivalents, have been €34.1 billion of the September 30, 2022. Earnings per share (annualized) went from €2.86 at €3.07 in the period under review (+7.3%)