Vienna Insurance Group profit up by 25 percent in first six months

Vienna Insurance Group’s figures for the first half of 2021 show a 25 percent rise in profit before tax to 251 million Euro.

“VIG Group business development is continuing at the level before the coronavirus pandemic. The significant increase both in premium volume and in profit was achieved in an environment that remains challenging, as the pandemic continued during the first half of the year and affected our everyday life to varying degrees. I consider our business model, which gives all regional Group companies the entrepreneurial freedom needed to tailor products and solutions to meet local needs, as a positive factor in our stable development. It allows us, as the largest international insurance group in Central and Eastern Europe, to act quickly and individually in the different situations in each country in our region”, explains CEO Elisabeth Stadler.

Premium volume followed a significant upward trend in spite of the varying effects of Covid-19 in VIG markets, rising 3.5 percent to EUR 5,773 million. With the exception of single premium life insurance, all lines of business recorded premium increases. Premiums grew particularly strongly in the other property and casualty line of business, rising 5.7 percent to EUR 2.9 billion. In the motor lines of business, premiums increased significantly by 7.3 percent to EUR 709 million for own damage insurance and 3.7 percent to EUR 810 million for third party liability insurance. Health insurance premiums rose to EUR 368 million (+3.3 percent). While regular premium life insurance saw premiums increase to EUR 1,362 million (+1.9 percent), in line with strategy, single premium life insurance recorded a decline of 6.7 percent to EUR 446 million. The largest premium increases were achieved in the segments Czech Republic, Poland, Romania, and Hungary.

Expenses for claims and insurance benefits less reinsurers’ share were EUR 3.6 billion, 0.9 percent higher compared to the same period in the previous year.

The result before taxes of EUR 251.4 million was 25 percent above the value in the previous year and includes provisions for Covid-19 and adverse weather events. The result after taxes and non-controlling interests was EUR 186.3 million for the first half of 2021, up by 47.5 percent.

The VIG Group regulatory solvency ratio was 267 percent as of 30 June 2021, indicating that capital resources remain very strong and stable. The financial result (incl. the result from at equity consolidated companies) was EUR 353.6 million in the first half of 2021, 8.9 percent below the previous year. The decrease was mainly due to a reduction in realised gains and losses. The return on equity before taxes improved from 9.1 percent to 11 percent. The VIG Group had EUR 37.5 billion in investments as of 30 June 2021.