Reinsurance News

VIG expecting higher premium volume in FY22 results

15th March 2023 - Author: Jack Willard

Vienna Insurance Group (VIG) has announced its preliminary results for FY22, which includes a total premium volume of €12.6 billion, exceeding the value of the previous year by €1.6 billion, or 14.1%.

VIG noted that the figure includes the newly acquired insurance companies in Hungary and Türkiye, which bring a premium volume of €444.5 million.

The firm’s profit before taxes sits at €562.4 million, which is 10% higher than it was in the previous year. VIG stated that this substantial increase in profit is primarily because due to a good operating performance and improved financial result.

At the same time, the figure also includes impairment of goodwill and other intangible assets totalling €67.6 million. Adjusted accordingly, the operating result for 2022 is €630 million, representing a 23% increase on the performance achieved in 2021.

Additionally, the firm’s net result of roughly €466 million is 24% higher than the previous years.

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Meanwhile, the company’s expected combined ratio for 2022 is 94.9%, which places it in the target range of 95%. VIG said that the slight deterioration of 0.8 percentage points compared with the previous year’s figure is due to a normalisation of claims following the COVID-19 and lockdown years.

Discussing its outlook for 2023, VIG addressed how there are many uncertainties that remain for the 2023 financial year, highlighting how the ongoing conflict between Ukraine & Russia presents a particular challenge given that its effects continue to be felt by all sectors.

VIG stated that it has confidence in the long-term potential of the CEE region and in continued significant economic growth in the VIG markets, exceeding that of Western Europe.

“The weaker macroeconomic environment and the expected higher volatility of the financial markets are currently restricting the ability to predict business trends. In this environment, and also given the switch to a new accounting system from 2023 onwards, any firm outlook for 2023 can only be provided during the course of the year, pursuant to IFRS 17/9. Given that VIG has been able to manage the current challenges in its insurance business operations very well so far, the Group aims for a further positive operating performance in 2023, subject to the factors mentioned above”, explains CEO Elisabeth Stadler.

She also comments on the company’s preliminary figures: “VIG Group’s preliminary figures for 2022 paint a highly satisfactory picture and underscore our growth strategy and our aim of being a stable and reliable partner even in challenging times. 2022 brought uncertainty in a variety of areas, and these uncertainties remain. In particular, the war in Ukraine, high inflation, which was in double digits in many of our markets last year and in some cases still is, and the pandemic, which was still making its presence felt last year.

“Despite this volatile environment, VIG Group demonstrates good resilience, as it did in the previous year. This is due, among other things, to our considerable diversity, our conservative investment and reinsurance policy and our very strong capital resources. Above all, however, it is due to the outstanding commitment of our employees, now numbering roughly 29,000, who serve around 28 million customers in 30 countries. Based on these good results, the VIG Managing Board is proposing an increase of the dividend to EUR 1.30 per share for the 2022 financial year.”

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