Group Annual Report 2023

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Polish Insurance Market

The five largest insurance groups in the country wrote approximately 78% of the gross written premiums in the first three quarters of 2023. The three largest insurance groups contributed approximately 61%.

Market development 1st to 3rd quarter 2023 year-on-year

9M 2023 figures

Poland – Market development 1st to 3rd quarter of 2023 compared to the previous year (bar chart)
Source: Financial Market Authority Poland

In the 1st to 3rd quarter 2023 the Polish insurance market generated PLN 57.7 billion and thus an increase of 9.4% year-on-year. The increase is attributable to the good development of both the non-life insurance (+10.4%) and also life insurance (+7.2%).

The motor insurance recorded growth in the 1st to 3rd quarter 2023: The motor third party liability insurance grew 3.7% year-on-year. The premiums in the motor own damage insurance increased by 15.3%, which is was predominately due to the disproportional increase of the average premium (+33.5%). The non-motor lines of business grew by 12.4% especially as a result of the good development in the property and industrial insurance. The health insurance products in the non-life insurance showed a clear increase of 30.7% year-on-year.

Life insurance recorded an increase of 7.2% year-on-year in the 1st to 3rd quarter 2023. This is predominately attributable to the positive development of the single premium life insurance that, after a sharp drop in the previous year recovered and recorded an increase of 23.9% in the 1st to 3rd quarter 2023. Life insurance with regular premiums increased by 4.8% year-on-year in the first nine months of 2023.

The average insurance spending per resident in Poland amounted to EUR 410 per capita in 2022 according to the calculations of the data of the International Monetary Fund (IMF) and Polish financial market authorities. Of which EUR 288 was for non-life insurance and EUR 122 to the life insurance area.

Market share of the largest insurance groups

Per cent of total premium volume

Poland – Market share of the largest insurance groups (ring chart)
Source: Financial Market Authority Poland; as of 9M 2023

VIG-Companies in Poland

VIG Insurance Group is represented on the Polish market by Compensa Life and Non-Life, the digital insurer Beesafe, InterRisk, the life insurance Vienna Life and the non-life insurance Wiener TU. In addition, in May 2023 the closing of the Polish Aegon companies Aegon Life (AEGON towarzystwo Ubezpieczen na Zycie S.A.) together with branch offices in Romania and the pension fund Vienna PTE (formerly Aegon PTE) was completed. The acquired companies have not yet been included in the consolidation for 2023. Since 2019, InterRisk has held a stake in the mutual insurance association TUW “TUW”. VIG is concentrating its market presence in Poland from currently six to three insurance companies in the future. The merger of the non-life insurance companies Compensa and Wiener TU will create a key player in the non-life insurance market. InterRisk will continue to operate independently. The three life insurance companies Compensa Life, Vienna Life and Aegon Life will be merged to form a larger, strong market player in the life insurance business. The mergers are subject to the necessary regulatory approvals.

VIG Insurance Group ranks fourth in the overall market in Poland with a share of 9.7% in the first nine months of 2023. It ranked fourth among the top insurers both in the non-life and life insurance area.

Financial performance indicators in the reportable segment Poland

Insurance service revenue by line of business

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

Insurance service revenue

The insurance service revenue in 2023 amounted to EUR 1,224.5 million (2022: EUR 1,070.9 million). This represents a year-on-year increase of 14.3%, which is primarily attributable to the positive development in the other property and casualty insurance and motor own damage insurance lines of business.

Result before taxes

The result before taxes amounted 2023 to EUR 29.4 million (2022 adjusted: EUR 72.3 million). The 59.4% year-on-year decline is mainly due to the increase of the net combined ratio and restructuring measures taken.

The results before taxes adjusted for the impairment of intangible assets and goodwill in the amount of EUR 3.4 million resulted in a business operating result of EUR 32.8 million in 2023 (2022 adjusted: EUR 72.5 million).

Net Combined Ratio

The net combined ratio in 2023 was 97.4% due to rising costs and claims as a result of high inflation (2022 adjusted: 94.5%).