Vienna Insurance Group (VIG) reported total premium volume of €12.6 billion for FY22, up 14.1% from the year-ago figure of €11.0 billion, confirming the preliminary figures announced on March 15.
The company noted that the amount includes the Aegon businesses in Hungary and Türkiye that were acquired and consolidated for the first time in 2022 and, with around €444.5 million, accounting for 3.7% of the total premium volume.
“This acquisition makes us the market leader in Hungary, where the Group not only grew by 1,000 employees, 1.5 mil-lion customers and EUR 311 million in premium volume, but also benefits from new opportunities in Asset Management and the Pension Funds business,” CEO Elisabeth Stadler said.
VIG’s profit before taxes rose 10% to €562.4 million, from €511.3 million in the previous year. VIG stated that this substantial increase in profit is primarily driven by good operating performance and improved financial result.
In addition, the figure also includes impairment of goodwill and other intangible assets totalling €67.6 million. Adjusted for impairments of intangible assets, the operating result for 2022 was up 23% to €630.0 million from €512.0 million in 2021.
The company posted a combined ratio of 94.9% in 2022, which increased 0.7 percentage point from the 2021 figure of 94.2%.
VIG reported a solvency ratio of 280% at the end of the 2022 financial year, highlighting the company’s strong capital position.
The group posted net result of €465.9 million in 2022, up 24% higher from €375.7 million in 2021.
Due to the prevailing economic conditions and sharp increase in yield curves, VIG reported an improved embedded value which rose by over one billion to €4.8 billion.
Value creation was supported by the conclusion of profitable new business with a margin of 3.6%, VIG achieved a very good margin of 4.8% in CEE in 2022 compared to 3.8% in 2021. In Austria and Germany, new business with a margin of 2.6% was concluded in 2022, compared to 1.8% in 2021.
“There is a lot in store for 2023 – both expected and unexpected. The new financial reporting standards IFRS 9 and IFRS 17 entered into force on 1 January 2023 and will change the way that we present our results in the future. However, the new financial reporting defined by IFRS 9/17 will not have any impact on VIG’s strategy or business model,” Stadler said while discussing the outlook for 2023.
“The development of the financial year 2023 is difficult to assess due to a number of uncertainty factors, especially associated with the ongoing war in Ukraine and its far-reaching consequences,” Stadler added.
Based on these good results, the VIG Managing Board is proposing an increase of the dividend to €1.30 per share for the 2022 from €1.25 per share.
At the end of 2022, The Sustainability Report shows a total green bond volume of €829 million, which represents an increase of more than 90% compared to the 2021 figures.
As part of its climate change strategy, VIG decided to not issue new policies to companies in the coal sector.
“No new policies are being issued for coal mining or coal-fired power plant projects. Existing policies in this area are being gradually reduced,” the company said.
In 2022, coal risks in the corporate business were reduced by 77% compared to 2019.
“Strategic considerations can currently only become meaningful if sustainability is taken into account,” Stadler explained.
