Austrian Vienna Insurance Group reported GWP of EUR 7,886.8 million in 1H2024, 7.9% up y-o-y. Premiums increased in all segments and all lines of business, the Group said. The underwriting income increased to EUR 5.9 billion (+10.0%), while earnings before taxes grew to EUR 481.0 million (+3.9%).

The segments Special Markets (Germany, Georgia, Liechtenstein and Turkey) with a 32.0% premium increase, Extended CEE (Albania including Kosovo, Baltic States, Bosnia-Herzegovina, Bulgaria, Croatia, Moldova, North Macedonia, Romania, Serbia, Slovakia, Ukraine and Hungary) with a premium increase of 11.5% and Austria with a premium increase of 6.5% have developed particularly positively.

“With our results for the first half of 2024, VIG is showing strong growth in all segments and business areas. Based on this excellent development, we confirm the positive outlook for the 2024 financial year with a strong annual result before taxes at the upper end of the planned range of EUR 825 million to EUR 875 million,” Hartwig Loeger, VIG General Director and Chairman of the Management Board.

Technical income increased significantly
The technical income from insurance contracts issued (Insurance Service Revenue) increased to EUR 5,919.0 million (+ 10.0%). The increase is primarily the result of growth in property and casualty insurance. All segments recorded increases, with significant increases recorded in the Special Markets (+21.5%), Extended CEE (+14.5%), Poland (+14.0%) and Austria (+6.5%) segments. In the Special Markets segment, Turkey in particular is growing, and in the Extended CEE segment, Romania, Slovakia, the Baltic States, Bulgaria and Hungary are growing.

Earnings before taxes increased again
Earnings before taxes increased to EUR 481.0 million in the first half of 2024. The increase in earnings amounts to 3.9%, mainly supported by Austria, Poland and the extended CEE region. In Austria, the improvement in earnings is mainly due to the increase in sales. The increase compared to the same period last year in the Poland segment is mainly due to the significantly increased volume in non-life insurance and the improved profitability in life insurance. In the CEE segment, the increase is mainly due to the very good performance of the Romanian insurance companies and the better combined ratio in the Baltic states.

The annualized operating return on equity improved to 16.2% (15.1% at the end of 2023).

Net combined ratio improved significantly
The net combined ratio improved to 93.3% in the first six months of 2024 (first half of 2023: 94.0%), primarily due to the positive development of the loss ratio.

The storm damage recorded in the first half of 2024, at around EUR 123 million gross, is significantly lower than the previous year's figure (around EUR 256 million). After deducting reinsurance, around EUR 112 million of this remains in VIG's retention.

Contractual service margin (CSM) at a stable level
The contractual service margin as of June 30, 2024 amounts to EUR 5,633.3 million (-2.8%) and comes mainly from long-term life and health insurance. The new business CSM in life and health insurance amounts to EUR 216 million with an increasing new business margin of 9.8%.

Excellent solvency ratio
The Group's solvency ratio at the end of the first half of 2024 remains at a very high level of 265% (including transitional measures) and underlines VIG's extraordinarily high capital strength.

Increased total investment portfolio
Total investments under management amounted to EUR 43.1 billion as of June 30, 2024 (EUR 42.6 billion at the end of 2023). The increase of 1.1% is primarily due to the increase in cash and cash equivalents, mainly due to the positive cash flow from operating activities and investing activities.

Positive outlook
The Vienna Insurance Group has so far been able to manage the effects of the challenging geopolitical and economic conditions very well and continues to rely on the success factors of continuity, stability and diversity. Despite the volatile environment, VIG management confirms the positive outlook for the 2024 financial year and, based on the excellent half-year development, expects earnings before taxes at the upper end of the planned range of EUR 825 million to 875 million.