The Vienna Insurance Group has just published its latest financials and the news is very good. The company provided an interesting breakdown by country across Eastern Europe, plus a note on rapid growth in Turkey. Here’s the word;
In the first three quarters, VIG was able to generate a total premium volume of 10,619 million euros. 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 premiums of EUR 769 million (+42.1%), with the growth largely coming from Turkey, both in the life, motor vehicle and property insurance sectors.
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 IFRS reporting, but they are still presented.
High capital strength
- Solvency ratio at the end of the third quarter at 303.8% (including transitional measures)
- S&P recently confirmed the A+ rating with a stable 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.
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