Reinsurance News

VIG reports 41% rise in 9M profits

18th November 2021 - Author: Matt Sheehan

Vienna Insurance Group (VIG) has reported a 41.2% rise in profit before taxes for the first nine months of 2021, which totalled €376 million, versus €266.3 million for the same period last year.

The company also recorded a 0.9 percentage point improvement in its combined ratio of 95.2%, as the impact of weather-related claims was offset by its reinsurance program and by certain strategic measured implemented last year.

VIG’s premium volume was also up by 5.1% to €8.39 billion for the 9M period, with significant growth reported across all lines of business, with the exception of single-premium life insurance.

Other property and casualty made particularly strong progress, increasing by 7.4% to €4.1 billion, as well as corporate business, which saw premium growth of 13% to €1.1 billion, and was responsible for a sizeable proportion of this favourable performance.

Additionally, VIG noted that an increase in health awareness following the pandemic helped to boost its health insurance premium volume by 4.5% to €545.2 million.

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The largest premium increases were achieved in the segments Czech Republic, Poland and Romania.

Looking ahead to the end of the year, VIG expects to report full-year 2021 profit of between €450 million and €500 million, with a combined ratio of around 95%.

“We are unfortunately still experiencing a global pandemic that continues to have a significant impact on social and economic life in our markets,” said CEO Elisabeth Stadler.

“We were able to successfully manage the trends in the insurance business thanks to our diversified positioning and by taking prompt actions locally. VIG Group continues to offer security and stability even under difficult circumstances,” Stadler continued.

“The economy has also performed better in our region Central and Eastern Europe (CEE) than initially forecast some months ago. We are therefore very confident that we will achieve our targets for 2021 and exceed the projected premium volume of EUR 10.4 billion.”

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