VIG Re has published its preliminary financial results for 2022 reporting an “all-time highs” performance with a pre-tax profit of €30.7m, a 19.7% gross written premium (GWP) increase, to €792.3m, and an improved net combined ratio of 91.9%.
The reinsurance company of Vienna Insurance Group noted that an “above average growth” was driven by Third Party business assumed by the French (+35%) and the German (+17%) branch offices.
VIG Re also reported a preliminary underwriting profit for 2022 of €38.5m, up 90.4%, its total assets were up 0.4% to €1.47bn, and its return on equity was 17.9%.
In 2022, the company issued Auxiliary Own Funds in the total value of €23m, as part of its policy to optimise its capital mix, according to the announcement.
The financial strength of the company (FSR rating A+) has been reconfirmed S&P in October 2022 for the 14th year in a row.
Johannes Martin Hartmann, VIG Re’s CEO and Chairman of the Board of Directors, commented: “The year 2022 will be remembered as the year of raising geopolitical tensions and high inflation, causing a turnaround of central bank policies leading to interest rate hikes, and a slow-down of economic growth.
“The war in Ukraine had a direct economic impact on VIG Re amounting to a single digit million Euro write offs of its Russian underwriting and a precautionary revaluation of its Russian government bonds. While the war in Ukraine continued to rage throughout the year, we also experienced a continuous high level of natural catastrophe events, most prominently an unprecedented series of severe hailstorms in France.”
He added: “Despite these challenges, I am very pleased to report that VIG Re continued in its dynamic growth also in 2022 having delivered its best financial results ever.
“Our excellent underwriting result demonstrates the strength and resilience of our business model, which is founded on long-term partnership approach with our clients, while leveraging our efficient operating model and capital management.
“To safeguard responsibilities we have towards our clients, we will stay committed to our prudent investment and underwriting policy while the reinsurance market tailwinds provide attractive opportunities for further growth.”