“Strong growth and high profitability continue to shape our position as the clear No. 1 in CEE in 2024. We are maintaining our successful course, which is derived from the diversification of our Group, because of both the growth in premiums and the profit result from all segments and lines of business. Based on this performance and our strong capitalization, the VIG Managing Board is proposing a dividend increase to EUR 1.55 per share”, Hartwig Löger, CEO and Chairman of the Managing Board of VIG stated.
The flooding from storm Boris resulted in EUR 617 million in gross claims for VIG – especially Austria, the Czech Republic and Poland were heavily affected. Peter Höfinger, Deputy CEO, also responsible for reinsurance, on the extreme weather event commented: “The teams of our local insurance companies have shown exceptional commitment to helping their clients quickly and directly. The regional diversification of our Group and our conservative reinsurance strategy have limited the results impact of this largest loss event in our 200-year history”.
Gross written premiums
Premium growth was driven by all reporting segments and lines of business. With double-digit growth rates, GWP in the Extended CEE (+10.5%) and Special Markets (+59.4%) increased significantly year on year. Of the countries in the Extended CEE segment, Romania (+16.3%), the Baltic States (+10.4%), Slovakia (+7.4%) and Bulgaria (+14.8%) recorded the highest premium growth rates. In the Special Markets segment, Türkiye (+96.7%) especially saw strong premium growth. In terms of the lines of business, there were double-digit increases in MTPL insurance (+11.6%), MoD insurance (+12.2%), other P&C insurance (+10.3%) and health insurance (+14.2%). Life insurance premiums have increased by 6%. Austria has generated 26% of the total GWP, 14% in the Czech Republic, 10% in Poland, 26% in Extended CEE and 9% in Special Markets.
The insurance service revenue reached EUR 12,138.5 million, by 11.1% more y-o-y. The increase is attributable to all segments and primarily to the growth in P&C in the Extended CEE and Special Markets segments.
The profit before taxes amounted to EUR 881.8 million, 14.1% up y-o-y. The increase stems primarily from the significant higher profits in Poland, the Extended CEE and Special Markets segments. Net profit after taxes and non-controlling interest rose by 15.4% to EUR 645 million. Austria accounted for the largest share of profits at 38%, followed by the Czech Republic at 24%, Poland at 7%, Extended CEE at 18% and Special Markets at 10%.
The insurance service expenses amounted to EUR 10,656.8 million, 15.0% more y-o-y, mostly due to a significantly higher business volume.
VIG reported a net combined ratio of 93.4% versus 92.6% in 2023. The increase in the net combined ratio is due to the increase in weather-related claims, in particular caused by storm Boris.
Other key figures:
- New business margin in life and health insurance: 10% | +1.1 percentage points
- Operating return on equity: 16.4% | 2023: 15.1%
- Investments: EUR 36.5 billion | +3.4%
- Solvency: 261% - The Group’s preliminary solvency ratio as of 31 December 2024 was 261%. The Group therefore remains very well capitalized.
Due to the very positive business development and strong capitalization, the VIG Managing board will propose a dividend increase by 11% from last year’s figure of EUR 1.40 per share to EUR 1.55 per share for the 2024 financial year. The dividend yield is 5.1%. Earnings per share amounted to EUR 4.98 in 2024, which equates to a 15.6% increase on the previous year.
Added value through diversity
With 50 companies in 30 countries, VIG embodies diversity that creates added value in many ways: Diversification spreads regional risks across the entire Group, shares capacities and facilitates the exchange of a wide range of expertise between countries and companies. The newly established CO³ function (Communication, Collaboration, Cooperation) promotes collaboration and the exchange of know-how and innovations within the Group, creates transparency and generates synergies. The enormous extent of the Group’s innovative power is also demonstrated by a wide range of applications of artificial intelligence being pursued by local companies.
Close cooperation also describes the strategic partnership with ERSTE Bank Group, which was further intensified last year: premiums generated via ERSTE Group banks amounted to EUR 1.4 billion and increased by 6% year on year. This growth resulted from all lines of business – the increase in the home/property insurance lines amounted to 19%.
Positive outlook for 2025
VIG has managed the impact of challenging geopolitical and macroeconomic conditions very well so far and is well prepared for the volatile environment. Based on this, a positive performance is also expected for the 2025 financial year. Liane Hirner, Chief Financial and Risk Officer of VIG, on the outlook: “Growth expectations for the CEE region are more than twice as high as those for the eurozone. Our diversification across markets and lines of business, our companies’ customer centricity and VIG’s capital strength provide excellent conditions for continuing our successful course. VIG’s Managing Board therefore has the ambition to achieve profit before taxes within a range of EUR 950 million and EUR 1 billion for the 2025 financial year”.
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