Vienna Insurance Group increased its 2024 profit despite a €617 mn loss from flooding caused by storm Boris in Central and Eastern Europe.
The group’s profit after taxes and noncontrolling interests rose to €645.3 mn from €559 mn a year earlier.
Gross written premiums increased to €15.23 bn from €13.78 bn. The combined ratio worsened slightly to 93.4 from 92.6.
Chief Financial and Risk Officer Liane Hirner stated that VIG managed the impact of challenging geopolitical and economic conditions and is prepared for continued volatility.
She noted that growth projections for Central and Eastern Europe are more than double those for the eurozone.
Hirner said VIG’s managing board expects profit before taxes to range between €950 mn and €1 bn for 2025.
CEO Hartwig Löger emphasized that the group’s diversified portfolio supports growth in both premiums and profit across all segments and business lines.
Deputy CEO Peter Höfinger, responsible for reinsurance, reported that flooding from storm Boris led to €617 mn in gross claims, mainly in Austria, the Czech Republic, and Poland. He described it as the largest loss event in the company’s 200-year history.
Perils recently raised its insured loss estimate for the Central European and Italian floods of Sept. 14-20 to €2.08 bn from €1.89 bn.
The majority of losses occurred in Austria, the Czech Republic, and Poland, with additional impacts in Italy and Slovakia.
Storm Boris swept through Central Europe, leading to fatalities, massive property destruction, and severe economic losses.
The storm’s aftermath highlights the ongoing need for robust disaster readiness and improved infrastructure to mitigate future damages.
This large-scale European flood event caused extensive damage over a considerable area. However, the combination of early flood warnings and active flood management before and during the event, coupled with other loss prevention measures implemented since other major floods in Europe, including in 1997, 2002 and 2013, helped to avoid an even worse catastrophe.
Roughly 95% of industry losses were borne by insurers in Austria, the Czech Republic, and Poland, followed by Italy and Slovakia, according to Perils. Hungary and Romania experienced comparatively minor impacts.
Storm Boris, also known as Anett, was a severe weather event in mid-September 2024 that caused significant flooding in Central and Eastern Europe.
It brought heavy and prolonged rainfall, leading to widespread flooding primarily in Eastern Austria, the central and eastern Czech Republic, and southwestern Poland. Italy and Slovakia also experienced damage.
The insured loss from the floods was substantial. Perils AG increased its estimate to €2.08 bn from an initial €1.89 bn. Most of the losses occurred in Austria, the Czech Republic, and Poland. The event marked the largest single loss in Vienna Insurance Group’s 200-year history, resulting in €617 mn in gross claims.
