Vienna Insurance Group achieved satisfactory results in the first half of 2020 despite the ongoing COVID-19 pandemic.
Premiums increased by 2.4% to EUR 5.6 billion.
Achieved profit before tax of € 201.2 million
Combination ratio improved to 95.5%
Solvency ratio 183.1% as of June 30, 2020
“Despite the exceptional situation in which the world finds itself due to COVID-19, we achieved an increase in insurance premiums, an improvement in the combined ratio and the solvency ratio of 183%. I believe that our strong capital resources and impressive balance sheet for 2019, as well as consistent implementation of Agenda 2020, are a very good basis for us to meet the challenges ahead. In this regard, the extensive investments we have made in digital transformation have particularly paid off. We see that we are well positioned to continue our business successfully. However, due to the current pandemic, we should expect a chilling impact on our business for the rest of this year. Due to continuing uncertainty around the world, it is currently impossible to provide year-end business projections, ”explained CEO Elisabeth Stadler.
Premium volumes were heavily impacted by various constraints in the VIG markets, resulting in a significant reduction in new business volumes, especially in the second quarter. At the same time, it could be observed that in the subsequent phase of easing, premiums in some markets returned to levels similar to those before the COVID-19 pandemic. The Group's extensive diversification and strong start to 2020 resulted in an increase in premiums of € 5,577.4 million in the first half of 2020, up 2.4% year-on-year. Property and accident insurance showed a particularly significant increase in premiums of 7%, driven by revenues from many countries such as Poland, Romania, Slovakia and Austria. In the health insurance sector, premiums also increased by 2.6%. Auto insurance, particularly impacted by COVID-19 isolation and travel restrictions, remained a stable segment with premiums at the same level as in the previous year. In life insurance with a one-time premium, the volume of payments increased by 0.7%, while in life insurance with a regular premium, it decreased by the same amount.