The latest financials from Vienna Insurance Group;
Vienna Insurance Group (VIG) presents another successful financial year with double-digit premium growth and strong profit growth. In 2024, the premium volume of EUR 15.2 billion exceeded the previous year’s figure by 10%, while profit before taxes increased to EUR 881.8 million (+14%).
Hartwig Löger, CEO and Chairman of the Managing Board of VIG: “Strong growth and high profitability continue to shape our position as the clear No. 1 in CEE in 2024. We are maintaining our successful course, which is derived from the diversification of our Group, because both the growth in premiums and the profit result from all segments and lines of business. On the basis of this performance and our strong capitalisation, the VIG Managing Board is proposing a dividend increase to EUR 1.55 per share”.
The flooding from storm Boris resulted in EUR 617 million in gross claims for VIG – especially Austria, the Czech Republic and Poland were heavily affected. Peter Höfinger, Deputy CEO, also responsible for reinsurance, on the extreme weather event: “The teams of our local insurance companies have shown exceptional commitment to helping their clients quickly and directly. The regional diversification of our Group and our conservative reinsurance strategy have limited the results impact of this largest loss event in our 200-year history”.
Preliminary figures in detail
Premium growth was driven by all reporting segments and lines of business. With double-digit growth rates, gross written premiums in the Extended CEE (+10.5%) and Special Markets (+59.4%) segments increased significantly year on year. Of the countries in the Extended CEE segment, Romania (+16.3%), the Baltic States (+10.4%), Slovakia (+7.4%) and Bulgaria (+14.8%) in particular recorded dynamic premium growth. In the Special Markets segment, Türkiye (+96.7%) especially saw strong premium growth. In terms of the lines of business, there were double-digit increases in motor thirdparty liability insurance (+11.6%), motor own damage insurance (+12.2%), other property and casualty insurance (+10.3%) and health insurance (+14.2%).
Insurance service revenue: EUR 12,138.5 million | +11.1%
The increases here are attributable to all segments and primarily to the growth in property and casualty
in the Extended CEE and Special Markets segments.
Profit before taxes: EUR 881.8 million | +14.1%
The increase stems primarily from the significant higher profits in Poland, the Extended CEE and Special Markets segments. Net profit after taxes and non-controlling interests rose by 15.4% to EUR 645 million.
Austria accounted for the largest share of profits at 38%, followed by the Czech Republic at 24%, Poland at 7%, Extended CEE at 18% and Special Markets at 10%.
Insurance service expenses: EUR 10,656.8 million | +15.0%
The increase is primarily due to a significantly higher business volume.
Net combined ratio: 93.4% | 2023: 92.6%
The increase in the net combined ratio is due to the increase in weather-related claims, in particular caused by storm Boris.
Solvency: 261%
The Group’s preliminary solvency ratio as of 31 December 2024 was 261%. The Group therefore remains very well capitalised.
Proposed dividend of EUR 1.55 per share | +11%
Due to the very positive business development and strong capitalisation, the VIG Managing board will propose a dividend increase by 11% from last year’s figure of EUR 1.40 per share to EUR 1.55 per share for the 2024 financial year. The dividend yield is 5.1%. Earnings per share amounted to EUR 4.98 in 2024, which equates to a 15.6% increase on the previous year.
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