Vienna Insurance Group exceeds EUR 10 billion premium volume

Cristian Hatis 3 Min Read
  • Total premium volume increases to around EUR 10.4 billion (+7.7%)
  • Profit (before taxes) rises to around EUR 522 million (+7.4%)
  • Combined ratio clearly improved to 95.4% (-0.6 percentage points)
  • Earnings per share significantly higher at EUR 2.59 (+27%)
  • Dividend increase to EUR 1.15 per share proposed (+15%)

A significant rise of 7.7% pushed total premiums written in 2019 above the EUR 10 billion threshold for the first time, to EUR 10,399.4 million. Without exception, all sectors recorded growth and contributed to the year-on-year increase in premiums of around EUR 742 million.

The other property and casualty and comprehensive motor business dominated with respect to absolute premium growth. Health insurance recorded the largest percentage increase of around 12%.

The non-life sector represents around 58% of the premium portfolio (motor third party liability, comprehensive motor, other property and casualty insurance), life insurance around 35% (regular premium, single premium products) and health insurance around 7%.

The largest premium gains were recorded in the segments Poland (EUR +234.2 million), Baltic states (EUR +124.5 million), Austria (EUR +103.4 million), Remaining CEE (EUR +72.2 million) and Czech Republic (EUR +61.6 million).

The Baltic States (+33.1%), Bulgaria (+30.7%), Poland (+26.1%) and Remaining CEE (+19.3%) segments stand out in terms of percentage premium growth. In the Remaining CEE segment, Ukraine (+58.2%), Bosnia-Herzegovina (+37.6%) and Serbia (+14.0%) recorded especially large premium growth.

Profit (before taxes) around EUR 522 million

In 2019, the target range for profit (before taxes) was EUR 500 to 520 million. At EUR 521.6 million, the profit (before taxes) was slightly above the target range and 7.4% higher than the result in the previous year. The increase in profit was due to a clear combined ratio improvement and, among other things, a significant increase in the profits contributed by Austria (EUR +37 million) and Poland (EUR +37 million).

This was offset by a small decrease in the financial result, mainly due to a decrease in the contribution from the non-profit societies resulting from the deconsolidation starting 31 July 2019, and the entire goodwill impairment in the Romania segment in the amount of EUR 108.8 million (previous year EUR 50.1 million).

In the course of the annual impairment test, the earnings expectations for Romania were further reduced due to the sustained difficult market situation.

With the exception of Romania, all segments earned profits (before taxes). 53% of the profit (before taxes) was achieved in the CEE region.

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