1 June 2017Insurance

VIG Re plans to expand in Germany, enter new European markets

Prague headquartered VIG Re aims to strengthen its underwriting activities in Germany and to enter additional countries mainly in continental Europe, according to the company’s 2016 annual report.

As part of the plan, the company is aiming to grow its underwriting profits by 10 percent annually until 2020. “The focus on underwriting results will enable the company to offset the forecasted lower ordinary investment results driven by the continued low-interest environment,” the company said.

VIG Re is part of the Vienna Insurance Group (VIG) and was founded in 2008 to focus on the reinsurance market in Austria and Central and Eastern Europe (CEE).

In the first years after its foundation, VIG Re focused on accepting business from VIG companies, but also built a value proposition for clients outside of VIG Group. As a result, third-party business has been gaining momentum since 2013, according to the company. While still adhering to the same underwriting areas, VIG Re has been gradually building its franchise beyond VIG core insurance markets, such as Germany, Italy, Russia and Turkey.

The rising purchasing power of a growing middle class will trigger an increased demand for insurance solutions from private households, which will consequently increase insurance density. As a result, mid- to long-term macroeconomic trends provide strong growth potential for insurance and reinsurance companies in the CEE region. However, the future development of the insurance market will also depend on CEE countries implementing national reforms. And while many countries are indeed planning reforms in social, health and pension insurance, political decision-making and actual implementation still often lag behind, the company said.

In 2016, VIG Re’s gross written premium grew to €383.1 million from €357.7 million in 2015. The main focus of the reinsurer is property/casualty. During the period, VIG Re’s combined ratio improved to 93.2 percent from 95.7 percent. After-tax profit declined to €17.0 million in 2016 after €18.9 million in 2015.

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More on this story

9 December 2016   Vienna Insurance Group (VIG) has reiterated its commitment to its growth strategy in Central Eastern Europe (CEE) following its recent acquisition of AXA’s life and non-life insurance companies in Serbia.
27 June 2017   Vienna Insurance Group (VIG) said on June 26 that chief financial officer (CFO) Martin Simhandl is resigning for personal reasons.
5 March 2018   Czech Republic-based reinsurer VIG Re has realigned its organisational structure and management responsibilities. The changes, which it claims will drive “operational efficiencies”, are effective from April 1, 2018.