Vienna Insurance Group recorded 277.3 million Euro profit before taxes, up 10.3 percent in first half of 2022

Vienna Insurance Group announced its financial results for the half-year of 2022. Premium volume increases by 11.6 percent to 6.44 billion Euro, while profit before taxes rises by 10.3 percent to 277.3 million Euro.

“We still experience very challenging times, marked primarily by the war in Ukraine, high inflation and the pandemic, which is still making its effects felt. Although these influences – which also have an impact on the insurance industry – are clouding the economic outlook, VIG Group continues to show 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 periods. The half-year results make us confident that we will achieve a positive operating performance in 2022”, explains CEO Elisabeth Stadler.

Non-life business drives around 12 percent rise in premiums

In the first half of 2022, the premium volume increased significantly by 11.6 percent to EUR 6,443 million (excluding Aegon companies). All lines of business and all VIG segments are showing a rise in premiums compared to the first half of the previous year. The significant increase with double-digit growth rates is primarily due to the non-lifelines of business (motor third-party liability EUR 975.2 million, +20.3 percent; motor own-damage insurance EUR 787.5 million, +11.1 percent; other property and casualty insurance EUR 3,323.7 million, +15.2 percent; and health insurance EUR 411.8 million, +11.9 percent). Life regular premium business accounts for EUR 1,418.2 million (+4.1 percent) and life single premium business for EUR 485.4 million (+8.9 percent). The largest premium increases were achieved in the Czech Republic, Austria, and the Extended CEE segments, and here Romania and the Baltic States in particular recording high premium growth.

Result before tax up by more than 10 percent and net income up by 8.6 percent

The result before taxes of EUR 277.3 million was 10.3 percent higher than in the previous year. In addition to the measures already taken in the first quarter of 2022, this result includes further measures, meaning over three quarters of the approximately EUR 165 million exposure to Russian government and corporate bonds of the VIG Group have already been provided for in the first half of the year. The financial result (excluding the result from at-equity consolidated companies) is EUR 315.5 million (-10.1 percent) for the first half of 2022. At EUR 202.3 million, net income was 8.6 percent higher than in the previous year

Combined ratio improves 0.9 percentage points

Both a lower cost and claims ratios led to a significant improvement in the combined ratio to 94.3 percent compared to the previous year (95.2 percent). The biggest improvements in the combined ratio were recorded in the segments Austria, Poland, and Extended CEE, and here particularly Bulgaria and Albania, including Kosovo.