VIG records an improvement in key figures

November 29, 2018 – In the first nine months, the insurance group Vienna Insurance Group was able to increase premiums, combined ratio and net income. In Austria, premiums decreased slightly due to lower single premiums in life insurance. Premium volume is expected to reach € 9.5 billion for the full year and pre-tax income between € 450 and € 470 million.

VIG report on the first three
Quarters 2018 (Coverage: VIG)

In the first nine months of 2018, Vienna Insurance Group AG increased its written premium volume by 2.9% to € 7.36 billion compared to the same period of the previous year.

With the exception of single premiums in life insurance, all divisions contributed to this. Single premiums decreased by 16.7% to 679 million euros.

After the markets, the Czech Republic, Hungary and the Baltic States contributed to premium growth.

"Only" in Romania, the development of the auto insurance sector is "unsatisfactory," said the Director General, Elisabeth Stadler, in the preface to the interim report presented Wednesday. Additional provisions were therefore made in the third quarter.

Biggest profit

Expenditures for claims other than reinsurance increased disproportionately compared to the same period last year. They increased by 0.5% to 5 195.6 million euros.

The financial result improved by 8.7% to 795.9 million euros. This is mainly due to the proceeds from the sale of the stake in S Immo AG and the real estate sector, according to VIG.

The combined ratio after reinsurance increased from 97.3% to 96.3%. With the higher financial result, this resulted in an increase in the consolidated result.

Austria

Companies in the Austrian group posted a slight decline in premiums in the first three quarters (€ 2.46.4 million, down 0.4%).

This is due to lower single premiums in life insurance. Adjusted for this, premiums would have increased by 1.9%.

Positive claims development in the fire and natural disaster and motor vehicle segments led to an improvement in the combined ratio from 97.0% to 94.9% for the same period last year. previous year.

As a result, pre-tax income rose from 105.7 million euros to 130.2 million euros.

perspective

Mergers of life insurance companies specializing in bank sales in 2017 with local life insurance policies in the ten countries in which VIG and Erste Group are collaborating are expected to be completed in early 2019.

It is expected to sustainably reduce the combined ratio to 95% through efficiency gains and the exploitation of synergistic potential. Life insurance continues to focus on recurring premiums and biometric risk coverage, according to VIG in its quarterly report.

The group is on track to meet its premium growth and pre-tax profit targets for the full year, said Managing Director Elisabeth Stadler. Premiums amounting to 9.5 billion euros (2017: 9.386 billion euros) and pre – tax profits of between 450 and 470 million euros (2017: 442, 5 million euros) are expected.

By 2020, premiums should rise to more than 10 billion euros and pre-tax income to 500 to 520 million euros.

To download

The first to third quarter report for 2018 can be downloaded as a PDF document (1.6 MB) from the VIG website.