VIG Re poised for more growth on reinsurance tailwinds
Czech Republic-based reinsurer VIG Re enjoyed its best financial results ever in 2022 with the highest profit and premium income seen in the company's history. Its CEO Johannes Martin Hartmann (pictured) said the reinsurance market tailwinds provide attractive opportunities for further growth.
The 2022 performance was driven by an underwriting result of €38.5 million, reflecting an increase of 90.4%, and a net combined ratio of 91.9%, according to preliminary financial figures.
Gross written premium increased by 19.7% to €792.3 million. Above average growth was driven by third party business assumed by the French (+35%) and the German (+17%) branch offices.
VIG Re generated a profit before tax of €30.7 million, up 14.6% on the prior year.
In 2022, the Company issued Auxiliary Own Funds in the total value of €23 million, as part of its policy to optimise its capital mix. The financial strength of the Company (FSR rating A+) has been re-confirmed S&P in October 2022 for the 14th year in a row.
“The year 2022 will be remembered as the year of raising geopolitical tensions and high inflation, causing a turnaround of central bank policies leading to interest rate hikes, and a slow-down of economic growth,” said Martin Hartmann, VIG Re’s CEO and chairman of the board of directors.
“The war in Ukraine had a direct economic impact on VIG Re amounting to a single digit million Euro write offs of its Russian underwriting and a precautionary revaluation of its Russian government bonds. While the war in Ukraine continued to rage throughout the year, we also experienced a continuous high level of natural catastrophe events, most prominently an unprecedented series of severe hailstorms in France.”
He added: “Despite these challenges, I am very pleased to report that VIG Re continued in its dynamic growth also in 2022 having delivered its best financial results ever. Our excellent underwriting result demonstrates the strength and resilience of our business model, which is founded on long-term partnership approach with our clients, while leveraging our efficient operating model and capital management. To safeguard responsibilities we have towards our clients, we will stay committed to our prudent investment and underwriting policy while the reinsurance market tailwinds provide attractive opportunities for further growth.”
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
