Impressive Growth in Gross Written Premiums
Vienna Insurance Group (VIG) has announced a remarkable 10% increase in preliminary gross written premiums (GWP), reaching €15.2 billion for 2024. This growth was fueled by expansion across all reporting segments and lines of business.
Combined Ratio and Weather-Related Claims
The company reported a net combined ratio of 93.4% for 2024, slightly up from 92.6% in 2023. This uptick was primarily due to an increase in weather-related claims, particularly those stemming from storm Boris, which resulted in €617 million in gross claims. Austria, the Czech Republic, and Poland were among the most affected regions.
Peter Höfinger, Deputy CEO responsible for reinsurance, noted, “The exceptional commitment from our local insurance teams has ensured swift and direct assistance to our clients. Our Group’s regional diversification and conservative reinsurance strategy have mitigated the financial impact of this significant loss event, the largest in our 200-year history.”
Breakdown of Premium Growth
The Extended CEE segment reported a 10.5% increase, while the Special Markets segment saw a substantial 59.4% year-on-year rise. Among the countries in the Extended CEE segment, Romania experienced the highest growth rate at 16.3%. The impressive performance in the Special Markets segment was largely driven by Türkiye, which posted a 96.7% growth.
Line of Business Performance
Double-digit increases were observed across several lines of business: motor third-party liability insurance rose by 11.6%, motor own damage insurance by 12.2%, other property and casualty insurance by 10.3%, and health insurance by 14.2%. Meanwhile, life insurance premiums saw a 6% increase compared to 2023.
Financial Highlights
- Insurance service revenue for 2024 reached €12.138.5 billion, marking an 11.1% rise, primarily due to growth in property and casualty segments in the Extended CEE and special markets.
- Insurance service expenses were €10.656.8 billion, a 15% increase driven by significantly higher business volume.
- Profit before taxes for 2024 amounted to €881.8 million, a 14.1% increase, largely attributed to higher profits in Poland and other business segments.
- Net profit after taxes and non-controlling interests grew by 15.4% to €645 million, with Austria contributing 38% to the overall profits.
Investment and Solvency
For 2024, the new business margin in life and health insurance stood at 10%, with an operating return on equity of 16.4%. Investments were reported at €36.5 billion. VIG’s preliminary solvency ratio as of December 31st, 2024, was a robust 261%, indicating strong capitalization.
Leadership Perspectives
Hartwig Löger, CEO and Chairman of the Managing Board of VIG, stated, “Our continued strong growth and high profitability in 2024 reinforce our position as the leading insurer in the CEE region. The diversification of our Group is the key driver behind both our premium and profit growth across all segments and business lines. Given this performance and our solid capital base, the VIG Managing Board proposes a dividend increase to €1.55 per share.”
Liane Hirner, Chief Financial and Risk Officer of VIG, commented, “The growth expectations for the CEE region are more than double those for the eurozone. Our market and business line diversification, coupled with our companies’ customer-centric approach and VIG’s capital strength, provide a solid foundation for ongoing success. The VIG Managing Board is thus targeting a profit before taxes of between €950 million and €1 billion for the 2025 financial year.”
