The Vienna Insurance Group (VIG) has reported premium growth in Q1 2022 of 11.2% to €3.45bn.
However, VIG said it had seen its profits before taxes fall by 3.3% to €124m. In addition, VIG said it had seen premium growth across all business lines and segments. In motor third-party liability (+18.8%), other property and casualty insurance (+15.2%) and health insurance (+11.6%), premium growth is in the double digits. The strong premium growth was driven primarily by the Czech Republic and Extended CEE segments, in particular Romania, the Baltic states, Serbia, Ukraine, and Hungary.
Elisabeth Stadler, CEO of VIG, said: “Already in the last year, we had managed to bring the effects of the pandemic on our operative business development under control, and we are also off to a very positive start in 2022 in all segments and lines of business. This is apparent in the double-digit premium growth achieved in the first quarter of 2022, which at that stage had yet to feel the impact of the war in Ukraine starting at the end of February.”
She added: “Due to the continuing uncertainty about developments in Ukraine and the associated far-reaching and hard-to-estimate economic effects, a development as dynamic as in the first quarter is not to be expected for the remainder of the financial year. We have taken precautionary measures for VIG Group in the amount of around €75m.”
VIG also said in a statement that at €123.8m, profit before taxes was down by around 3.3% on the same period of the previous year. This is due to the precautionary measures taken in relation to the ongoing war in Ukraine, which have reduced the financial result. The financial result (excl. the result from at-equity consolidated companies) was €148.1m in the first quarter of 2022, which is 15.7% less than in the same period of the previous year. Net profit was €91.3m, which is 7.7% below the previous year.
These latest results come nearly a month after the firm reported a solvency ratio of 250% in its 2021 results.