Group Annual Report 2022

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Premium volume and expenses

Premium volume

A detailed disclosure of premium development is included in Note 15. Premiums written – gross in the notes to the consolidated financial statements.

VIG Insurance Group wrote EUR 12,559.2 million in premiums in 2022, an increase of 14.1% compared to the same period in the previous year (2021: EUR 11,002.6 million). This amount includes the Aegon companies in Hungary and Türkiye that were acquired and consolidated for the first time in 2022 and, with around EUR 444.5 million, account for 3.7% of the total premium volume. It retained EUR 11,177.0 million of the gross premiums written (2021: EUR 9,878.6 million). EUR 1,382.3 million was ceded to reinsurance companies in 2022 (2021: EUR 1,124.0 million).

In 2022, double-digit growth rates were generated in the motor lines of business (motor third party liability +20.1%, motor own damage +16.1%), in other property and casualty insurance (+16.0%), in health insurance (+12.4%) and in regular premium life insurance (+11.1%). Premium growth was especially strong in the segments Czech Republic (+13.8%), Extended CEE (+24.5%), Special Markets (+59.2%) and Group Functions (+16.9%). In the segment Extended CEE, the Baltic states (+20.2%), Romania (+30.6%) and Hungary (+92.6% including Aegon) recorded particularly dynamic premium growth. Overall, the Group generated 65.7% of its premiums outside Austria in 2022.

Net earned premiums rose by 12.4% from EUR 9,705.6 million in 2021 to EUR 10,910.9 million in 2022. Net reinsurance cessions were EUR 1,283.5 million in 2022 (2021: EUR 1,117.3 million).

Expenses for claims and insurance benefits – retention

A detailed disclosure of expenses for claims and insurance benefits is included in Note 19. Expenses for claims and insurance benefits – retention in the notes to the consolidated financial statements.

Expenses for claims and insurance benefits less reinsurers’ share were EUR 7,912.0 million in 2022, representing a year-on-year increase of 10.9% (2021: EUR 7,136.6 million). The increase results from the significantly higher volume of business.

Acquisition and administrative expenses

A detailed disclosure of acquisition and administrative expenses is included in Note 20. Acquisition and administrative expenses in the notes to the consolidated financial statements.

The 15.5% increase in acquisition and administrative expenses for all fully consolidated VIG companies to EUR 2,930.5 million was due to the significantly higher business volume and primarily concerns commission expenses (2021: EUR 2,536.8 million).