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Vienna Insurance Group with track record at the half-year mark 2022

20. Oktober 2022

Significantly higher premiums and profit, clearly improved combined ratio

• Premium volume increased by 11.6 percent to 6.44 billion euros
• Profit before taxes increased by 10.3% to 277.3 million euros
• Combined ratio improved by 0.9 percentage points to 94.3 percent
• Solvency ratio of the VIG Group increased to 285

Vienna Insurance Group (VIG) continues its excellent business performance with the 2022 half-year results. There is a clearly discernible improvement in the most important key figures compared to the same period of the previous year. “

We continue to find ourselves in a very challenging time, which is primarily characterized by the war in Ukraine, high inflation and the pandemic that is still present. Although these influences, which also apply to the insurance industry, are clouding the economic outlook, the VIG Group continues to demonstrate very strong resilience, which is once again manifested in improved key figures. 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 phases. The half-year results make us confident of achieving a positive operating performance for 2022 “, explains General Manager Elisabeth Stadler.

Premium growth of around 12% results from non-life business
Premium volume increased very significantly by 11.6% to EUR 6,443 million (excl. Aegon companies) in the first half of 2022. All lines of business and all VIG segments show an increase in premiums compared to the first half of the previous year. The significant increase with double-digit growth rates is mainly attributable to the non-life lines (motor liability EUR 975.2 million +20.3%, motor own damage EUR 787.5 million +11.1%, other property insurance EUR 3,323.7 million +15.2% and health EUR 411.8 million +11.9%). Life insurance with regular premium payments accounted for 1,418.2 million euros (+4.1 %) and life insurance against single premiums for 485.4 million euros (+8.9 %). The highest increases in terms of premiums were achieved in the Czech Republic, Austria and Extended CEE segments, with Romania and the Baltic States in particular recording high premium growth.

Earnings before taxes up by more than 10 percent and net income by 8.6 percent

At EUR 277.3 million, profit before tax was 10.3% higher than in the previous year. In addition to the provisions already recognized in the first quarter of 2022, the result includes a further measure so that provisions had already been recognized for more than three quarters of the VIG Group’s exposure to Russian government and corporate bonds, which amounts to around EUR 165 million, by the end of the first half of the year. The financial result (excl. result from companies accounted for using the equity method) amounted to EUR 315.5 million (-10.1%) at the end of the first half of 2022. At EUR 202.3 million, the net result is +8.6% better than in the previous year.

Combined ratio improved by 0.9 percentage points
Both a lower expense ratio and a lower loss ratio led to a significant improvement in the combined ratio to 94.3% compared to the previous year (95.2%). The largest improvements in the combined ratio were seen in the Austria, Poland and Extended CEE segments, and especially in Bulgaria and Albania incl. Kosovo.

Solvency ratio of 285%
The regulatory solvency ratio of the VIG Group as of June 30, 2022 of 285% (including transitional measures, solvency ratio as of December 31, 2021 was 250%) shows a continued very strong and stable capitalization. The VIG Group’s investments amount to EUR 34.4 billion as of June 30, 2022.

Outlook
Due to the war in Ukraine, Vienna Insurance Group has reviewed the current „VIG 25“ strategy program for any need for adjustments: „The initiatives launched in VIG 25 support the very positive current result and will continue to be implemented consistently even after an evaluation in relation to the current challenges,“ explains Elisabeth Stadler. However, the development of fiscal year 2022 remains influenced by uncertainty factors, first and foremost by the war situation in Ukraine and its unforeseeable consequences. For this reason, a year-end forecast is not being made at present. However, the VIG Group believes it is in a position to manage the challenges well and is aiming for a positive operating performance in 2022.

 

 

 

Vienna Insurance Group AG Wiener Versicherung Gruppe (VIG) is the leading insurance group both in Austria and in the entire Central and Eastern European (CEE) region. Around 50 insurance companies in 30 countries form a group with a long tradition, strong brands and a high degree of customer proximity. VIG’s more than 25,000 employees take care of the needs of more than 22 million customers every day. VIG shares have been listed on the Vienna Stock Exchange since 1994. The VIG Group has an „A+“ rating with a stable outlook from Standard & Poor’s, an internationally recognized rating agency. VIG cooperates closely with Erste Group, the largest retail bank in Central and Eastern Europe.

Disclaimer/Liability notice
This press release contains forward-looking statements that refer to future developments of Vienna Insurance Group AG Wiener Versicherung Gruppe (VIG). These statements are based on current assumptions and forecasts made by management. Changes in general economic trends, future market conditions, changes in the capital markets and other circumstances may cause actual events or results to differ materially from the current forward-looking statements. VIG assumes no obligation to update these forward-looking statements or to conform them to future events or developments.

Questions:
VIENNA INSURANCE GROUP AG Wiener Versicherung Group
Wolfgang Haas, MSc Head of Communication & Marketing Schottenring 30, 1010 Vienna Phone: +43 (0)50 390-21029 mailto: wolfgang.haas@vig.com You can also find the press release at http://www.vig.com.

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