Vienna Insurance Group reports gross written premiums of 7.3 billion Euro, up 10.8 percent in first half of 2023

Vienna Insurance Group (VIG) reports results for the first half of 2023, presented for the first time in accordance with the IFRS 9 Financial Instruments and IFRS 17 Insurance Contracts accounting standards.
VIG achieved gross written premiums in the amount of 7.3 billion Euro in the first half of 2023. This represents an increase of 10.8 percent compared to the previous year’s figure of 6.5 billion Euro. All reportable segments show premium growth compared to the first half of the previous year. Poland, Extended CEE and Special Markets segments performed particularly well.

The result before taxes increased significantly in the first half of 2023, improving by 118.4 percent to 462.9 million Euro (first half of 2022: 212.0 million Euro). The result in the previous year was strongly affected by interest rate developments during the reporting period and by measures in the amount of 126.1 million Euro in connection with the Russian government and corporate bond exposure of. By contrast, a profit of 20.3 million Euro was generated in the 1st half of 2023 through the sale of Russian government and corporate bonds.

Under IFRS 17, Vienna Insurance Group primarily applies the Variable Fee Approach (VFA) to its long-term life and health insurance business. This accounts for around 75% of technical reserves. Due to the significant rise in the yield curve last year, the contribution from these areas in the first half of 2022 was significantly lower.

The net combined ratio for the first six months of 2023 was 94.0 percent (first half of 2022: 90.6 percent). This is primarily due to the consideration of higher claims volatilities in the liability for incurred claims (LIC). With the application of IFRS 17, the net combined ratio calculation method has changed. It is now calculated on the basis of the insurance service expenses from issued business less insurance service expenses from reinsurance held, divided by the insurance service revenue from issued business less insurance service revenue from reinsurance held in property and casualty insurance.

VIG anticipates a weak macroeconomic environment and volatile capital markets going forward and for 2023 as a whole. “The considerable number of uncertainties limits the ability to predict our business performance for the second half of 2023. Results are likely to be dampened due to the severe weather events this summer and the probability for further extreme weather. We expect a result before taxes for the Group between 700 million Euro and 750 million Euro for 2023 as a whole”, says Hartwig Löger, CEO of VIG.

All IFRS values reported refer to the IFRS 9 and IFRS 17 accounting standards, which have been applied for the first time. The 2022 figures have been adjusted on the basis of these standards and can no longer be compared to figures previously published for the 2022 financial year.