VIG grows nearly 12% in H1 on P&C; ups profit even after Russian impact
Vienna Insurance Group (VIG) managed 11.6% annual premium growth in the first half of 2022, driven by non-life gains in select high-growth Central European markets.
“We still experience very challenging times, marked primarily by the war in Ukraine, high inflation and the pandemic, which is still making its effects felt," CEO Elisabeth Stadler said. " VIG Group continues to show very strong resilience, which is once again manifested in improved key figures."
Gross written premium, excluding business from its recent purchase of Aegon, rose by 11.6% to €6.44 billion. Some 24% of that growth came from 17% annual growth in Czechia, 22% from growth in Romania where the auto personal liability business more than doubled, and 10% from the Baltics with 17-25% growth across P&C lines. Those gains made up for much slower single digit growth in the home market of Austria in Poland where automotive has suffered.
By line, non-motor property delivered two thirds of the GWP growth in the group on a 15.2% year on year gain. Growth in motor was also double digit at 20% for auto personal liability and 11% for auto-casco.
The combined ratio was said to have fallen by 0.9 percentage points (pps) to 94.3% on improvements in Austria, Poland and Extended CEE.
VIG had virtually no outlier readings amongst major regions. Management made call outs for frequency and weather issues that added 1.9 pps to the combined ratio in Czechia and claims frequency in Turkey and Georgia.
Nat cats rendered neighbourhood €35 million net impact in H1 2022 versus €42 million in the year prior period.
After a 10% decline in investment earnings and a €35.4 million hit to financial results from measures taken vis-a-vis Russian investment exposure, net profits were still up 8.6% year on year to €202 million.
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