The latest financials from Vienna Insurance Group are strong, here’s an extract from the latest company update;
With double-digit premium growth and a strong increase in profit, Vienna Insurance Group (VIG) presents a particularly successful financial year 2023. At EUR 13.8 billion, the premium volume is up 10% on the previous year’s figure and the profit before taxes increased to EUR 772.7 million (+32%).
Considering the challenges of patchy supply chains globally, various cyber attacks and the usual Cat events, that is impressive. Naturally the CEO is feeling positive;
Hartwig Löger, CEO and Chairman of the Managing Board of Vienna Insurance Group: “Our strong growth across all regions and segments confirms our clear positioning as number 1 in CEE. Although the amount of insurance benefit payments made to our customers in 2023 of EUR 9.8 billion was significantly higher than in recent years, we have been successful in growing our profit considerably.
On the basis of this performance and our strong capitalisation, the VIG Managing Board is proposing a dividend increase to EUR 1.40 per share.”
Gross written premiums by region
The increase in gross written premiums results from all segments and lines of business. Double-digit growth rate on the previous year was reported in the Poland (+12.7%), Extended CEE (+12.5%),
Special Markets (+11.3%) and Group Functions (+13.8%) segments. Of the countries in the Extended CEE segment, the Baltic states (+12.2%), Romania (+17.8%) and Hungary (+24.1%) in particular saw a dynamic premium development. In the Special Markets segment, Georgia (+19.9%) and Türkiye (+18.4% adjusted for inflation) generated significant premium growth.
In terms of business lines, there was double-digit growth in motor third-party liability (+14.4%), motor own damage (+14.3%) and other
property and casualty (+11.2%). Premiums were up 7.5% for health insurance and 2.7% for life insurance. 56.2% of premiums written was generated outside of Austria.
Significant increase in profit before taxes
Profit before taxes increased to EUR 772.7 million. The 31.9% increase was attributable primarily to positive developments in the Austria, Extended CEE and Group Functions segments. The net result after taxes and non-controlling interests rose by 18.3% to EUR 559 million.
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