Austrian Insurance Market in 9M 2022

Austrian insurance market in 2023 undertakings observed an increase in premium volume by 4.7% to EUR 4.8 billion. During the three quarters of the year premiums written stood at EUR 16.2 billion in total, an increase of 5.9%.

The insurance premiums are made up of EUR 10.14 billion (+8.7%) in non-life/accident insurance, EUR 4.1 bn (+1.5%) in life insurance and EUR 2 bn (+4.5%) in health insurance.

According to the Austrian Financial Market Agency (FMA), non-life/accident insurance provided for more than half of this volume, some EUR 2.93 billion (+9%), while health insurance contributed with EUR 646 million (+3.3%). In contrast, the volume of life insurance premiums fell by 3.84% to EUR 1.22 billion.

The total of all assets at market value (excluding capital investments in unit-linked and index-linked life insurance) stood at EUR 103 billion at the end of the 3rd quarter, 2.8% lower than the previous quarter.

The technical result fell by 53.2% to EUR 247.95 million in 2022, with the financial result falling by 52% to EUR 1.1 billion.

A similar picture was also apparent for the result from ordinary activities, namely by 57.6% to EUR 607.9 million.

The operating margin, ie. the ratio of EGT to premiums, stood at 4% during the first three quarters, 584 basis points less than for the comparable period in 2021.

Hidden reserves (excluding unit-linked and index-linked life insurance) stood at EUR 10.84 billion at the end of the Q3, a decrease by 22% compared to the preceding quarter.

Almost four-fifths (79%) of all insurance undertakings were able at the end of the third quarter 2022 to post a solvency capital level (SCR – Solvency Capital Requirement) in accordance with the Insurance Supervision Act 2016 (VAG 2016) of over 200%, i.e. having more than twice as high own funds than required.

by Yana Keller