Austrian Vienna Insurance Group (VIG) reported GWP for the full year 2023 worth EUR 13.8 billion, 10% more y-o-y. Earnings before taxes reached around EUR 773 million, up by +32% y-o-y, while the insurance service revenue increased by 12%, to EUR 10.9 billion.
The premium increase results from all segments and divisions. The Poland (+12.7%), Extended CEE (+12.5%), Special Markets (+11.3%) and Group Functions (+13.8%) segments recorded double-digit growth rates compared to the previous year.
Of the countries in the Extended CEE segment, the Baltics (+12.2%), Romania (+17.8%) and Hungary (+24.1%) in particular showed dynamic premium development. In the specialty markets segment, Georgia (+19.9%) and Turkey (+18.4% adjusted for inflation) recorded strong premium growth.
Our growth in all regions and segments confirms our clear positioning as number 1 in CEE. Although the amount of payments for insurance services of EUR 9.8 billion that we made to our customers in 2023 is significantly higher than in previous years, we managed to significantly increase our earnings.
Hartwig LÖGER, General Director and Chairman of the Board, VIG
In terms of divisions, there were double-digit increases in auto liability insurance (+14.4%), motor vehicle comprehensive insurance (+14.3%) and other property insurance (+11.2%).
Premiums for health insurance increased by 7.5% and for life insurance by 2.7%. 56.2% of the premiums written were generated outside Austria.
Based on this result and capital strength, the VIG Executive Board will propose to the committees a dividend increase to 1.40 euros per share.
Earnings before taxes increased to EUR 772.7 million. The increase of 31.9% comes primarily from the positive developments in the Austria, Extended CEE and Group Functions segments. The net result after taxes and non-controlling interests increased by 18.3% to EUR 559 million.
Insurance service revenue increased by 12.2% to 10.9 billion euros. The increase comes primarily from growth in property and casualty insurance. Underwriting expenses increased by 8.7% to EUR 9.3 billion. The increase results primarily from the significantly increased business volume.
The underwriting result improved by 6.1% to EUR 1.2 billion compared to the previous year. The net combined ratio in the property and casualty insurance business area improved by 0.2 percentage points to 92.6% compared to the previous year.
The contractual service margin for life and health insurance was 5.8 billion euros at the end of December 2023. Profitability in new life and health insurance business developed very positively, with a contribution of EUR 326 million.
The new business margin rose by 3.1 percentage points to 8.9%. The operating return on equity (the operating group result in relation to average equity less unrealized gains and losses recognized in equity) rose to 15.1%, which corresponds to a significant increase of 3.5 percentage points. Development of capital investments
Investments (excluding fund- and index-linked investments) increased by 2.6% to EUR 35.3 billion.
The group’s preliminary solvency as of December 31, 2023 is 269% (including transitional measures). The group therefore remains very well capitalized.
Due to the very positive business development and the high capital strength, the management of the Vienna Insurance Group will propose to the committees an increase in the dividend for the 2023 financial year compared to the previous year from 1.30 euros to 1.40 euros per share. The dividend yield is 5.3%.
Earnings per share amounted to EUR 4.31 in 2023 and improved by 18.6% compared to the previous year. The new dividend policy sets the previous year’s dividend as the minimum dividend and provides for a continuous increase in the dividend depending on the development of operating results.
In order to continue the group’s positive momentum, VIG is consistently pushing forward digital transformation as part of its VIG 25 strategy program. A key component of this is the expansion of ecosystems around the topics of health, housing and mobility.
For example, customers gain access to low-threshold digital health services through VIG’s investments in health start-ups such as ‘Diagnose.me’ or ‘TeleDoc’. A telematics app was developed in the automotive sector and is already in use in several countries.
In addition to digitalization, the topic of sustainability is also deeply anchored in the group. In 2023, a new program was launched – together with all CEOs of the group companies – that strengthens sustainability as an integral part of the business model.
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