Group Annual Report 2023

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Austrian Insurance Market

In Austria the top 5 insurance groups in the country in the 1st to 3rd quarter 2023 generated approximately 71% of the gross written premiums. The two largest insurance groups contributed around 44%.

Market development 1st to 3rd quarter 2023 compared to the previous year

9M 2023 figures

Austria – Market development 1st to 3rd quarter of 2023 compared to the previous year (bar chart)
Source: Austrian Insurance Association

In the 1st to 3rd quarter of 2023, the Austrian insurance industry generated a total of EUR 15.7 billion gross written premiums. Compared to the previous year this corresponds to an increase of approximately 4.1%, which is primarily attributable to the positive development of the property and casualty insurance.

In the 1st to 3rd quarter 2023 an increase of 7.9% in the property and casualty insurance was recorded year-on-year. The motor vehicle insurance contributed with an increase in the gross written premiums of 7.1%, which is especially attributable to the increased price levels. The premiums in the motor third party liability insurance grew by 5.5%, in the motor own damage insurance by 8.6%. The premiums in the non-motor lines of business grew by 8.3% in the 1st to 3rd quarter 2023.

In life insurance a decline in gross written premiums of 5.9% was recorded in the 1st to 3rd quarter 2023.

While the income from regular premium life insurance declined slightly by 0.6% year-on-year, a significant decrease of 35.9% was recorded in single premiums life insurance. With a clear decline of 15.5% year-on-year the unit- and index-linked life insurance in particular recorded losses. The occupational disability and nursing care insurance achieved a growth of respectively 2.9% and 1.0% in the life insurance business. The gross written premiums in the health insurance developed positively with an increase of 7.8% year-on-year.

According to the calculations based on data from the International Monetary Fund (IMF) and the Austrian Insurance Association (VVO), in 2022 an average of EUR 2,139 per capita was spent for insurance. Of which the non-life sector accounted for EUR 1,544 and life insurance accounted to EUR 595.

Market share of the largest insurance groups

Per cent of total premium volume

Austria – Market share of the largest insurance groups (ring chart)
Source: Austrian Insurance Association; as of 9M 2023

VIG companies in Austria

The VIG 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. In addition, since 2019 it operates via branches in the Northern European countries of Sweden, Norway and Denmark in the traditional industrial insurance business. VIG Holding is assigned to the segment Group Functions.

The VIG insurance companies are the leading insurance Group in Austria with a market share of 22.9% in the 1st to 3rd quarter 2023. In property and casualty insurance and in life insurance it holds first market rankings, in the health insurance business it takes second place.

Financial performance indicators in reportable segment Austria

Insurance service revenue by line of business

Austria – Insurance service revenue by line of business (ring chart)
Values for 2022 in parentheses

Insurance service revenue

The insurance service revenue in the year 2023 amounted to EUR 3,307.4 million. (2022: EUR 3,163.4 million). This corresponds to an increase by 4.6%, which is based on the dynamic development in the non-life insurance line of business (Premium Allocation Approach).

Result before taxes

The result before taxes in the segment Austria amounted to EUR 385.9 million in 2023 (2022 adjusted: EUR 273.0 million). This corresponds to a strong increase by 41.3%, which is mainly due to the improvement of the total capital investment result.

Net Combined Ratio

The net combined ratio increased in 2023 mainly as a result of a higher net claims ratio due to higher claims in other property and casual insurance to 91.6% (2022 adjusted: 90.1%).