Vienna Insurance Group (VIG) has reported that gross written premiums increased to €7.3 billion in H1, up by 10.8% compared to the same period last year.
According to VIG, all reportable segments showed premium growth compared to H1 of the previous year, with Poland, Extended CEE and Special Markets segments “performing particularly well.”
Meanwhile, VIG’s result before taxes increased significantly in H1 of 2023, improving by 118.4% to €462.9 million.
VIG explained that the result in the previous year was strongly affected by interest rate developments during the reporting period and by measures in the amount of €126.1 million in connection with the Russian government and corporate bond exposure.
By contrast, a profit of €20.3 million was generated in H1 of 2023 through the sale of Russian government and corporate bonds.
The firm’s net combined ratio for H1 of 2023 was 94.0%, up from 90.6% in the same period last year. VIG said this is primarily due to the consideration of higher claims volatilities in the liability for incurred claims.
VIG reported that its total capital investment portfolio was €41.7 billion as of 30 June 2023, adding that the increase compared to €41.1 billion at the end of 2022 is attributable primarily to the increased market values of those investments that are measured at fair value.
Hartwig Löger, General Manager and CEO of Vienna Insurance Group, commented, “Against a backdrop of continuing challenges such as the ongoing war in Ukraine, high inflation and an uncertain economic outlook, VIG’s performance in the first half of 2023 is extremely positive.
“Our excellent capital position and our business model with a strong regional focus – which allows rapid, customised action where required – remain fundamental factors behind our continuing success in very challenging times.”
Löger concluded, “The considerable number of uncertainties limits the ability to predict our business performance for the second half of 2023.
“Results are likely to be dampened due to the severe weather events this summer and the probability for further extreme weather. We expect a result before taxes for the Group between EUR 700 million and EUR 750 million for 2023 as a whole.”
