Czech Republic
Czech Insurance Market
In the 1st to 3rd quarter of 2023 the insurance market in the Czech Republic was dominated by the top 5 insurance groups, which together held a share of approximately 84% of the total gross written premiums.
Market development 1st to 3rd quarter 2023 compared to the previous year
9M 2023 figures
According to the method of calculation of the Czech insurance association ČAP, the Czech insurance market recorded gross written premiums in the amount of CZK 127.0 billion in the 1st to 3rd quarter of 2023 and thus an increase by 6.5% year-on-year. With the exception of the single premium life insurance all insurance lines of business had a positive development. In the motor lines of business the motor own damage insurance had a remarkable increase by 11.5% year-on-year. The motor third party liability insurance also developed positively with an increase of 5.1%. Both lines of business also profited in 2023 from growth in the number of newly insured vehicles (+1.8% in the motor third party liability insurance; +7.8% in the motor own damage). In non-motor insurance there was an increase of 8.8% in the 1st to 3rd quarter 2023 largely influenced by the double digit growth rate in the property insurance.
Gross written premiums grew by 2.3% in the life lines of business. The increase is especially attributable to the good development of the life insurance with regular premiums that recorded an increase of 2.6% in the 1st to 3rd quarter 2023. On the other hand, a strong decline of 18.4% was recorded in the single premium business.
According to the calculations based on the data of the International Monetary Fund (IMF) and the Czech Insurance Association, the Czech population spent an average of EUR 744 per capita for insurance premiums in 2022. This amount was divided into EUR 502 for non-life insurance and EUR 242 for life insurance.
Market share of the largest insurance groups
Per cent of total premium volume
VIG Companies in the Czech Republic
The VIG Insurance Group is represented by two companies in the Czech Republic, Kooperativa and ČPP. With a market share of 31.8% it was the largest insurance group in the Czech Republic in the 1st to 3rd quarter 2023. It was in first place in the market for both life insurance and non-life insurance.
The Group’s own reinsurance VIG Re, that has its headquarters in Prague, is assigned to the segment Group Functions.
Financial performance indicators in the reportable segment Czech Republic
Insurance service revenue by line of business
Insurance service revenue
The insurance service revenue in 2023 was EUR 2,040.1 million (2022: EUR 1,860.8 million). This represents an increase of 9.6%, which is based on the positive development of in the motor lines of business.
Result before taxes
The result before taxes in the segment Czech Republic in 2023 amounted to EUR 218.0 million (2022 adjusted: EUR 240.7 million). This decline of 9.4% resulted primarily from the declining result in the life insurance due to a one time effect in the Variable Fee Approach.
Net combined ratio
With 91.3% the net combined ratio remained at a solid level in 2023 (2022 adjusted: 90.6%). The year-on-year increase resulted from a higher claims ratio.