Vienna Insurance Group (VIG) says it has outperformed all of its key figures for 2021, after reporting profit of €511.3 million, which increased 47.8% over the previous year to exceed its upper target range of €500 million.
However, CEO Elisabeth Stadler warned that it remains “difficult to estimate” the company’s business development for the coming year, given the “unforeseeable consequences” of the war in Ukraine.
“We are deeply saddened by the war in Ukraine in the middle of one of our VIG markets,” Stadler said.”
“The current war situation in Ukraine is not only associated first and foremost with human suffering but also economic uncertainty and possible volatility on the capital markets. This has currently made it difficult to estimate business development for 2022,” she explained.
“The VIG Group, however, sees itself as able to continue to manage its operational insurance business well because of its broad diversity and its conservative investment and reinsurance policies. We have repeatedly proven this in recent years in challenging situations. This is why we are confident that we will also be able to continue our positive performance in 2022.”
Among its notable results from 2021, VIG hit an €11 billion premium mark, achieving YoY growth of 5.5% thanks to significant growth in all lines of business.
Strong premium growth was achieved especially in the other property and casualty insurance line of business as well as in the motor lines of business, with 61.8% of the group’s premiums written outside Austria in 2021.
VIG’s combined ratio also remained under its 95% target at 94.2%, after improving 0.8 percentage points over the year, mainly due to better claims development in the segments Czech Republic, Poland and Extended CEE and efficiency increases in business operations.
The company further added that its comprehensive reinsurance programme made it possible to restrict the effects of the severe natural disasters on the combined ratio, which were reflected in the result at a net amount of roughly €90 million.
“The VIG Group once again showed strong operational resilience in the second year of the worldwide pandemic with preliminary key figures for 2021 that are significantly above expectations,” said Stadler.
“The results are proof of the successful, diversified position of the Group, of the excellent operating results of all of our insurance companies and of our early focus on the major challenges in the industry such as the digital transformation.”
