Vienna Insurance Group reports double-digit premium growth in Q1 2023. The Group’s solvency ratio is at 284% which remains stable against the figure of 280% at the end of 2022. Despite numerous economic and geopolitical uncertainties, VIG remains cautiously optimistic for 2023 as a whole and still aims for a positive operating performance.
VIG Group generated a total premium volume of EUR 3,871 million for Q1 2023. This corresponds to an increase of 12.1% compared to the same period of the previous year.
Business development in the CEE markets and the initial consolidation of the acquired Aegon Group companies in Hungary and Türkiye have been attributed to this growth. Even without the initial consolidation of these companies, the premium growth is 7.1%. All VIG segments have achieved premium increases.
Elisabeth Stadler, the CEO of Vienna Insurance Group commented on the results, “The macroeconomic developments are presenting challenges for us, which we can largely tackle through operational and strategic measures. Given all these challenges, we benefit from our excellent capitalisation and our diversity in terms of regions, products and distribution channels. The current economic growth forecasts for our core market are encouraging. Despite the war in Ukraine, the economies in the CEE region are showing resilience. Although we are seeing weaker economic growth in this region, we expect stronger growth for 2023 as a whole to outstrip that in the eurozone. VIG Group is definitely aiming for a positive operating performance for 2023.”
Premium growth of 2.1% to EUR 1.4 million has been observed in Austria and of 7.1% to EUR 624 million in the Czech Republic. This is primarily due to growth in property and casualty insurance and health insurance.
In Poland, the growth drivers were motor own damage, property and casualty insurance and life single premium business and have reported a premium growth of 14.6% to EUR 386 million. In the Extended CEE segment, a premium increase of 16.5% to EUR 1.038 million has been attributed in part to the Baltic States and the initial consolidation of the Aegon company acquired in Hungary.
In the Special Markets segment (Germany, Liechtenstein, Georgia and Türkiye), there was a premium growth of 85.1% to EUR 282 million. This has been attributed almost exclusively to Türkiye, due both to the initial consolidation of the former Aegon company Viennalife and to an increase in premiums in the existing VIG company Ray Sigorta.
The 11.6% growth in premium volume in the Group Functions segment to EUR 736 million is primarily due to continuing strong premium development in the reinsurance company VIG Re.
Although the company said that the 2023 financial year is still beset by considerable uncertainty. The war in Ukraine presents a particular challenge given that the future course of the conflict still cannot be predicted, and its effects continue to be felt by all sectors. Inflation, which remains at a high level, will likewise affect future business development. The fall in real-term income despite adjustments for inflation could lead to a decline in demand for insurance coverage among consumers in some cases.
VIG Group aims to continue to be exposed to a volatile capital market. The situation in the labour market has become more acute. The lack of sufficient and suitable labour is having an impact on almost all industries and sectors of the economy said the company.
