Remaining CEE

The Remaining CEE segment includes the countries of Albania incl. Kosovo, Bosnia-Herzegovina, Croatia, North Macedonia, Moldova, Serbia and Ukraine. The Remaining CEE markets generated 4.0% of Group premiums in 2018. The companies in the Montenegro and Belarus markets were not included in the VIG consolidated financial statements.

Albania including Kosovo

The Albanian insurance market grew 3.6% in local currency terms in the 1st to 3rd quarters of 2018. The motor lines of business represent more than two thirds of the Albanian insurance market. Premiums rose 5.1% for motor third party liability and 8.0% for motor own damage insurance. The non-motor lines of business also contributed to the growth of the Albanian insurance market with an increase of 1.4%, as did health insurance, with an increase of 8.5%. Life insurance recorded a decrease of 4.2% in premiums. The premium volume in Kosovo rose 5.9% year-on-year in the 1st to 3rd quarters of 2018.

VIG is represented in the non-life sector in Albania by the companies Sigma Interalbanian and Intersig. VIG has a market share of 23.1%, which puts it in second place in the Albanian insurance market. Sigma Interalbanian is also represented by a branch in Kosovo.


Premiums increased 4.0% in local currency terms in Bosnia-Herzegovina in the first two quarters of 2018. Premium volume rose 4.8% year-on-year in the non-life sector. Motor third party liability insurance, which dominates the non-life sector, grew 7.1%. Life insurance recorded a moderate increase of 1.0%.

Vienna Insurance Group is represented by Wiener Osiguranje, which has its headquarters in Banja Luka, in the Serbian Republika Srpska in Bosnia-Herzegovina. The acquisition of Merkur Osiguranje was also concluded in February 2018 and the company was renamed Vienna osiguranje d.d. in October 2018. The acquisition strengthens the range of products offered by VIG in the life insurance segment in Bosnia-Herzegovina. Vienna Insurance Group’s market share was 8.5% based on data from the 1st half of 2018, which puts it in fifth place in the market ranking.


The Croatian insurance market grew 9.7% in local currency terms in the 1st to 3rd quarters of 2018, with both the non-life and life insurance lines of business contributing to this growth. Double-digit growth rates were recorded for motor own damage insurance (+18.4%) and life insurance (+10.5%), which was primarily driven by traditional life insurance products. Premium volume rose 6.3% for motor third party liability insurance and 8.0% for health insurance.

Since the merger of Erste Osiguranje and Wiener Osiguranje was concluded in April 2018, VIG has only been represented by the insurance company Wiener Osiguranje in Croatia. Erste Osiguranje will now only be used as a brand for bank distribution in the future. Its market share of 9.3% in the 1st to 3rd quarters of 2018 put it in fourth place in the Croatian insurance market.

North Macedonia

Premium volume in the North Macedonian insurance market grew 8.9% in local currency terms in the first nine months of 2018, which was the largest increase recorded since 2015. Life insurance continued the double-digit growth recorded in previous years with an increase of 15.6%. It represents 14.8% of the overall portfolio, which corresponds to an increase of 6.4 percentage points over five years. Premium volume in the non-life sector rose 7.8%, driven by the non-motor lines of business. Motor third party liability grew 5.6% and motor own damage increased 4.2%.

VIG’s three Group companies, Makedonija Osiguruvanje, Winner Non-Life and Winner Life, together hold a market share of 20.1% in the overall market. That makes it the leading insurance group in North Macedonia.


Premium volume for the insurance companies operating in Moldova rose 2.3% based on the local currency in the first three quarters of 2018. The non-life sector recorded a year-on-year increase of 2.1%. The life sector gained 5.4%, but only represents 6.2% of the overall portfolio. Premium volume increased in the motor lines of business (motor third party liability +5.9%, motor own damage +4.0%), while the non-motor lines of business decreased 6.5%.

VIG is represented by Group company Donaris in Moldova. It generates 13.4% of the premiums in the overall market, putting it in second place. Donaris holds first place in the non-life sector.


The Serbian insurance industry recorded a 4.1% increase in premium volume in local currency terms in the first three quarters of 2018. Although this continues the long tradition of increasing premium volumes, the growth rate is slower than in previous years. The non-life sector, which represents more than three quarters of the total market, recorded a 3.6% year-on-year increase. This growth was driven by the motor lines of business (motor third party liability +5.3%, motor own damage +12.4%), which benefited from an increasing number of registrations. Due to efforts to achieve harmonisation with EU law, a new act is being prepared for motor third party liability insurance. One of the objectives is to better regulate guarantee funds and claims for damages. Life insurance recorded an increase of 5.7%. Starting from a very low level, health insurance recorded strong growth of 25.6%.

The VIG company Wiener Osiguranje has a market share of 11.4% in the Serbian market. VIG therefore holds fourth place in the overall market in Serbia and second place in life insurance.


Approximately one third of the premium volume published in the Ukrainian market statistics in the 1st to 3rd quarters of 2018 concerns reinsurance business between companies. After adjusting for these transactions, direct premium volume rose 19.8% year-on-year in local currency. The non-life sector grew 18.1%. Mandatory motor third party liability insurance gained 20.3%. The Ukrainian motor insurance bureau (MTIBU) introduced electronic motor third party liability insurance in 2018. One of the objectives was to prevent forged and invalid policies from being issued and to make police checks easier. According to MTIBU, around 93,000 e-policies were sold during the period from introduction in February to November 2018. Strong growth of 35.6% in life insurance increased its share of total direct premiums to 11.1%.

VIG operates three non-life insurance companies in Ukraine, UIG, Kniazha and Globus, and the life insurance company Kniazha Life. VIG generates 6.0% of the premiums in the overall market in Ukraine, putting it in second place. It holds second place in the non-life sector and seventh place in the life sector.

Financial performance indicators in the Remaining CEE segment

Premium development

Premiums by line of business

Remaining CEE – Premiums by line of business (ring chart)

Values for 2017 in parentheses

The VIG companies in the Remaining CEE segment wrote EUR 374.7 million in premiums in 2018 (2017: EUR 352.0 million). The year-on-year increase of 6.4% was primarily based on growth in single premium life insurance and other property and casualty insurance in Croatia and first-time consolidation of Vienna osiguranje (formerly Merkur Osiguranje) in Bosnia-Herzegovina. Respectable growth was also achieved in Ukraine, with motor third party liability, other property and casualty and health insurance recording double-digit growth rates. Net earned premiums were EUR 285.7 million in 2018 (2017: EUR 247.2 million), an increase of 15.6% compared to the previous year.

Expenses for claims and insurance benefits

Expenses for claims and insurance benefits less reinsurance were EUR 197.2 million in 2018 (2017: EUR 170.6 million). This corresponds to a year-on-year increase of 15.6% in expenses for claims and insurance benefits (less reinsurance), which was primarily the result of a higher volume of business.

Acquisition and administrative expenses

Acquisition and administrative expenses were EUR 96.5 million in the Remaining CEE segment in 2018 (2017: EUR 93.3 million). This corresponds to a year-on-year increase of 3.4%.

Result before taxes

The result before taxes rose to EUR 23.5 million in 2018, mainly due to an improvement in the combined ratio (2017: loss of EUR 6.0 million). It should be noted that the result in the previous year was negatively affected by a goodwill impairment of EUR 19.5 million in the Ukraine, Moldova and Albania incl. Kosovo CGU groups.

Combined Ratio

The combined ratio improved to 96.6% in 2018, primarily due to the positive performance achieved in Ukraine and Croatia (2017: 100.1%).

Vienna Insurance Group in the remaining CEE segment

in EUR millions



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Premiums written





Motor own damage insurance (Casco)





Motor third party liability insurance





Other property and casualty insurance





Life insurance – regular premium





Life insurance – single premium





Health insurance





Result before taxes