Vienna Insurance Group’s profit reached 413.4 million euros, up 10% in the first nine months – The Diplomat Bucharest

Vienna Insurance Group (VIG) reported a positive development for the first three quarters of 2022. All key figures improved again compared to the same period of the previous year.

Of course, like any business, we are feeling the effects of the current situation, with inflation being the main factor here. This situation leads, among other things, to an increase in the claims burden, thus weighing on the evolution of the combined ratio. Nevertheless, we are confident that our broad diversification strategy will allow us to effectively manage overall inflation risk. A risk assessment has shown that our most important markets in terms of volume are well positioned due to the measures taken and the current pricing policy. We remain confident in the long-term growth potential of the CEEC region, especially as the current forecasts for this region are again significantly higher than those of the euro zone.

Considering the current situation and provided that there are no unexpected external factors and volatility by the end of the year, we expect a premium volume of at least 12 billion euros for the whole of 2022 and a pre-tax profit that exceeds the figure for the previous year by 511 million euros. In terms of combined ratio, we are targeting a value of around 95% despite the difficult environmentsays Elisabeth Stadler, CEO of Vienna Insurance Group.

Premium growth across all lines of business and segments
A clear upward trend can be observed in the volume of premiums. The total premium volume increased significantly by 13.6% in the first nine months of 2022 to 9,530 million euros. This includes the first consolidation of the most recently acquired insurance companies in Hungary and Turkey with premiums of approximately €291 million, representing 3.0% of total premium volume. Even without these companies, premium growth is double digit at 10.1%. There was premium growth across all lines of business and segments of VIG. With the exception of single-premium life insurance (+3.1%), all business lines posted double-digit growth rates (automotive civil liability +21%, auto damage insurance +13.6%, other insurance property and liability +15.3%). , health insurance +11.8%, regular premium life insurance +10%).

Pre-tax profit up around 10%
At 413.4 million euros, the pre-tax profit was about 10% higher than the previous year’s value. At 479.2 million euros, financial income (excluding income from equity-accounted companies) was down 8.4% compared to the previous year, mainly due to the measures already taken in the first and second quarters of 2022 as part of the exhibitions on the Russian state. and corporate bonds. At 302.4 million euros, net profit was 10.1% higher than the previous year.

Slightly improved combined ratio
At 95.1%, the combined ratio is slightly lower than the value of the previous year (95.2%). However, the pressure of increasing average losses, partly due to inflation, is evident compared to the first half of the year, when the combined ratio was 94.3%.

VIG Group investments, including cash and cash equivalents, amounted to €34.1 billion as of September 30, 2022. Earnings per share (annualised) increased from €2.86 to €3.07 during the period under review (+7.3%).

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