Czech insurance market
In the 1st to 3rd quarters of 2022 the insurance market in the Czech Republic was dominated by the top 5 insurance groups, which together generate around 85% of total premium volume.
Based on the calculation method of the Czech Insurance Association ČAP, the Czech insurance market recorded a premium volume of CZK 119.2 billion in the 1st to 3rd quarters of 2022, representing a year-on-year increase of 7.5%. With the exception of single premium life insurance, all major lines of business recorded positive developments. In particular, the non-motor lines of business in non-life insurance contributed to this (+13.6%). The double-digit increase is partly due to the lower reference values from the same period in the previous year, which in turn is due to the impacts of the COVID-19 pandemic.
In the motor line of business, motor own damage generated a remarkable increase of 9.1% year-on-year. Motor third party liability insurance also developed positively, with growth of 3.8%. Both lines of business were positively influenced by rising prices. In part, they also benefited from the growing number of newly insured vehicles (+1.3% in motor third party liability; +4% in motor own damage). In the non-motor insurance line of business, the 1st to 3rd quarters of 2022 saw a double-digit increase of 13.6%, which was primarily influenced by rising prices and intense acquisition in the area of industrial insurance.
In life insurance, premium volume rose by 3.2%. This increase was mainly due to good performance in regular premium life insurance, which recorded 3.7% growth in the 1st to 3rd quarters of 2022. However, a significant fall of 18.5% was recorded in single premium life insurance.
According to calculations based on data from the International Monetary Fund (IMF) and Czech Insurance Association, the average per capita expenditure for insurance in the Czech Republic was EUR 635 in 2021. EUR 418 of this amount was for non-life insurance and EUR 217 for life insurance.
VIG companies in the Czech Republic
VIG Insurance Group is represented by two companies, Kooperativa and ČPP, in the Czech Republic. With a market share of 32.1% it is the largest insurance group in the Czech Republic in the 1st to 3rd quarters of 2022. It holds first place in the market for both life and non-life insurance.
The Group reinsurance company VIG Re, which has its headquarters in Prague, is assigned to the segment Group Functions.
Financial performance indicators in the Czech Republic reportable segment
The VIG insurance companies in the segment Czech Republic wrote EUR 2,122.1 million in premiums in 2022, representing a large increase of 13.8% (2021: EUR 1,864.9 million). This was primarily due to good performance in the motor lines of business as well as in the other property and casualty and regular premium life insurance lines of business. Net earned premiums were EUR 1,575.1 million in 2022 (2021: EUR 1,399.8 million). This represented an increase of 12.5% compared to the previous year.
Result before taxes
The result before taxes in the segment Czech Republic rose by 8.0% to EUR 201.9 million in 2022 (2021: EUR 186.9 million). This increase was primarily due to a better technical result from risk insurance.
The combined ratio continued to be at a very good level of 91.5% in 2022 (2021: 90.1%). The slight increase comes from the motor lines of business, which saw the claims ratio normalise to pre-COVID levels.