Austrian insurance market
The top 5 insurance groups in the country generated around 71% of the premium volume in Austria in the 1st to 3rd quarters of 2022. The two largest insurance groups generated around 44%.
After 2021, which was characterised by the impacts of the COVID-19 pandemic, the Austrian insurance sector had a positive start to the new year. In total, EUR 15.0 billion was generated in the 1st to the 3rd quarters of 2022. Compared with the same period in the previous year, this corresponds to an increase of around 5.0%, which is due to the positive performance of all insurance segments.
In the 1st to 3rd quarters of 2022, the property and casualty insurance recorded an increase of 6.9% compared with the same period in the previous year. The motor insurance recorded an increase of 4.7%. Of this, motor own damage insurance rose by 6.1%, primarily due to higher prices. On the other hand, motor third party liability insurance benefited from the rising number of newly insured vehicles and rose by 3.3% year-on-year. Premiums for non-motor lines of business rose 8.0%, with travel insurance recording a sharp increase of 97.5%.
In life insurance, a premium increase of 1.3% was generated in the 1st to 3rd quarters of 2022. While income from regular premium life insurance came to -0.1%, remaining stable or falling slightly year-on-year, single premium life insurance increased by 10.2%. With a year-on-year increase of 19.5%, unit- and index-linked life insurance in particular recorded increased levels of interest. Nursing care insurance also saw double-digit growth, with a 10.4% increase compared with the same period in the previous year. Premiums in health insurance recorded an equally positive year-on-year increase of 4.5%.
According to calculations based on data from the International Monetary Fund (IMF) and Austrian Insurance Association (VVO), the average per capita expenditure for insurance in Austria was EUR 2,072.4 in 2021. Of this, EUR 1,465 was spent in the non-life insurance area and EUR 607 in the life insurance area.
VIG companies in Austria
VIG Insurance Group is represented by the two insurance companies Wiener Städtische and Donau Versicherung in Austria. s Versicherung, which was merged with Wiener Städtische in 2018, continues to exist as a brand for bancassurance customers. Wiener Städtische also operates via branches in Italy and Slovenia. VIG Holding operates out of Austria as a reinsurer of the Group and an insurer in the cross-border corporate business. Since 2019, it has also been active in the traditional industrial insurance business through branch offices in the Northern European countries of Sweden, Norway and Denmark. VIG Holding is assigned to the segment Group Functions.
With a market share of 23.1% in the 1st to 3rd quarters of 2022, the VIG insurance companies represent Austria’s largest insurance group. Together they hold first place in the market in property and casualty and in life insurance, and second place in health insurance.
Financial performance indicators in the Austria reportable segment
The Austrian VIG insurance companies generated a total of EUR 4,138.4 million in premiums written in 2022, representing a year-on-year increase of 2.2% (2021: EUR 4,048.4 million). The increase was primarily due to good development in other property and casualty and the motor lines of business. Net earned premiums were EUR 3,314.8 million in 2022 (2021: EUR 3,242.5 million). This corresponds to a plus of 2.2%.
Result before taxes
The segment Austria generated a result before taxes of EUR 249.4 million in 2022 (2021: EUR 234.7 million). This corresponds to an increase of 6.3%, which is due to an improvement in the combined ratio and a better technical result in the life line of business.
The combined ratio could be further improved to 92.4% in 2022 primarily due to an improved cost ratio (2021: 92.8%).