VIG’s GWP rises to €15.2bn for 2024 as insurer reports storm Boris claims of €617m

Vienna Insurance Group (VIG) has reported a preliminary gross written premiums growth (GWP) of 10% to €15.2 billion for 2024, driven by growth in all reporting segments and lines of business.

At the same time, VIG recorded a net combined ratio of 93.4% for 2024, a slight increase from 2023’s 92.6%, driven by an increase in weather-related claims, particularly those caused by storm Boris, which resulted in €617 million in gross claims with Austria, the Czech Republic, and Poland especially heavily affected.

Peter Höfinger, Deputy Chief Executive Officer (CEO), also responsible for reinsurance, commented, “The teams of our local insurance companies have shown exceptional commitment to helping their clients quickly and directly.

“The regional diversification of our Group and our conservative reinsurance strategy have limited the results impact of this largest loss event in our 200-year history.”

A breakdown of GWP showed that the Extended CEE reported a 10.5% increase, while Special Markets rose by 59.4% year on year. Of the countries in the Extended CEE segment, Romania saw the highest growth rate of 16.3%, while Special Markets segment was driven by Türkiye with 96.7% growth.

In terms of the lines of business, there were double-digit increases in motor third-party liability insurance (11.6%), motor own damage insurance (12.2%), other property and casualty insurance (10.3%), health insurance (14.2%), while Life insurance premiums increased by 6% on 2023.

The insurance service revenue for 2024 is €12.138.5 billion, a 11.1% increase attributed to all segments and primarily to the growth in property and casualty in the Extended CEE and special markets segments. Meanwhile, insurance service expenses were reported at €10.656.8 billion, a 15% increase due to a significantly higher business volume.

The profit before taxes for 2024 was reported at €881.8 million by VIG, noting a 14.1% increase, which stems from the significant higher profits in Poland and business segments.

Net profit after taxes and non-controlling interests rose by 15.4% to €645 million, with Austria accounting for the largest share of profits at 38%.

Lastly, for 2024, new business margin in life and health insurance was 10%, operating return on equity was 16.4% and investments were reported at €36.5 billion.

VIG’s preliminary solvency ratio as of December 31st, 2024, was 261%, remaining very well capitalised.

Hartwig Löger, CEO and Chairman of the Managing Board of VIG, said, “Strong growth and high profitability continue to shape our position as the clear No. 1 in CEE in 2024. We are maintaining our successful course, which is derived from the diversification of our Group, because both the growth in premiums and the profit result from all segments and lines of business. On the basis of this performance and our strong capitalisation, the VIG Managing Board is proposing a dividend increase to €1.55 per share.”

Liane Hirner, Chief Financial and Risk Officer of VIG, stated, “Growth expectations for the CEE region are more than twice as high as those for the eurozone. Our diversification across markets and lines of business, our companies’ customer centricity and VIG’s capital strength provide excellent conditions for continuing our successful course. VIG’s Managing Board therefore has the ambition to achieve profit before taxes within a range of €950 million and €1 billion for the 2025 financial year.”

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