VIENNA INSURANCE GROUP continues on its dynamic course of success: Significant profit growth in 2024 and positive outlook for 2025
Proposal to increase the dividend by 11% from EUR 1.40 to EUR 1.55 per share
Preliminary figures for 2024
- Gross written premiums of EUR 15.2 billion (+10%)
- Insurance service revenue of EUR 12.1 billion (+11%)
- Profit before taxes of EUR 881.8 million (+14%)
- Net combined ratio 93.4% (+0.8 percentage points)
- Strong solvency ratio of 261%
Press conference to be broadcast live on 12 March 2025 at 10:00 a.m. CET at this link
Vienna Insurance Group (VIG) presents another successful financial year with double-digit premium growth and strong profit growth. In 2024, the premium volume of EUR 15.2 billion exceeded the previous year’s figure by 10%, while profit before taxes increased to EUR 881.8 million (+14%).
Strong growth and high profitability continue to shape our position as the clear No. 1 in CEE in 2024. We are maintaining our successful course, which is derived from the diversification of our Group, because both the growth in premiums and the profit result from all segments and lines of business. On the basis of this performance and our strong capitalisation, the VIG Managing Board is proposing a dividend increase to EUR 1.55 per share.
The flooding from storm Boris resulted in EUR 617 million in gross claims for VIG – especially Austria, the Czech Republic and Poland were heavily affected.
Peter Höfinger, Deputy CEO, also responsible for reinsurance, on the extreme weather event:
The teams of our local insurance companies have shown exceptional commitment to helping their clients quickly and directly. The regional diversification of our Group and our conservative reinsurance strategy have limited the results impact of this largest loss event in our 200-year history.
Preliminary figures in detail
Gross written premiums
Premium growth was driven by all reporting segments and lines of business. With double-digit growth rates, gross written premiums in the Extended CEE (+10.5%) and Special Markets (+59.4%) segments increased significantly year on year. Of the countries in the Extended CEE segment, Romania (+16.3%), the Baltic States (+10.4%), Slovakia (+7.4%) and Bulgaria (+14.8%) in particular recorded dynamic premium growth. In the Special Markets segment, Türkiye (+96.7%) especially saw strong premium growth. In terms of the lines of business, there were double-digit increases in motor third-party liability insurance (+11.6%), motor own damage insurance (+12.2%), other property and casualty insurance (+10.3%) and health insurance (+14.2%). Life insurance premiums have increased by 6%.
26% of gross written premiums were generated in Austria, 14% in the Czech Republic, 10% in Poland, 26% in Extended CEE and 9% in Special Markets.
Insurance service revenue: EUR 12,138.5 million | +11.1%
The increases here are attributable to all segments and primarily to the growth in property and casualty in the Extended CEE and Special Markets segments.
Profit before taxes: EUR 881.8 million | +14.1%
The increase stems primarily from the significant higher profits in Poland, the Extended CEE and Special Markets segments. Net profit after taxes and non-controlling interests rose by 15.4% to EUR 645 million.
Austria accounted for the largest share of profits at 38%, followed by the Czech Republic at 24%, Poland at 7%, Extended CEE at 18% and Special Markets at 10%.
Insurance service expenses: EUR 10,656.8 million | +15.0%
The increase is primarily due to a significantly higher business volume.
Net combined ratio: 93.4% | 2023: 92.6%
The increase in the net combined ratio is due to the increase in weather-related claims, in particular caused by storm Boris.
New business margin in life and health insurance: 10% | +1.1 percentage points
Operating return on equity: 16.4% | 2023: 15.1%
Investments: EUR 36.5 billion | +3.4%
Solvency: 261%
The Group’s preliminary solvency ratio as of 31 December 2024 was 261%. The Group therefore remains very well capitalised.
Proposed dividend of EUR 1.55 per share | +11%
Due to the very positive business development and strong capitalisation, the VIG Managing board will propose a dividend increase by 11% from last year’s figure of EUR 1.40 per share to EUR 1.55 per share for the 2024 financial year. The dividend yield is 5.1%. Earnings per share amounted to EUR 4.98 in 2024, which equates to a 15.6% increase on the previous year.
Added value through diversity
With 50 companies in 30 countries, VIG embodies diversity that creates added value in many ways: Diversification spreads regional risks across the entire Group, shares capacities and facilitates the exchange of a wide range of expertise between countries and companies. The newly established CO³ function (Communication, Collaboration, Cooperation) promotes collaboration and the exchange of know-how and innovations within the Group, creates transparency and generates synergies. The enormous extent of the Group’s innovative power is also demonstrated by a wide range of applications of artificial intelligence being pursued by local companies.
Close cooperation also describes the strategic partnership with ERSTE Bank Group, which was further intensified last year: premiums generated via ERSTE Group banks amounted to EUR 1.4 billion and increased by 6% year on year. This growth resulted from all lines of business – the increase in the home/property insurance lines amounted to 19%.
Positive outlook for 2025
VIG has managed the impact of challenging geopolitical and macroeconomic conditions very well so far and is well prepared for the volatile environment. Based on this, a positive performance is also expected for the 2025 financial year. Liane Hirner, Chief Financial and Risk Officer of VIG, on the outlook:
Growth expectations for the CEE region are more than twice as high as those for the eurozone. Our diversification across markets and lines of business, our companies’ customer centricity and VIG’s capital strength provide excellent conditions for continuing our successful course. VIG’s Managing Board therefore has the ambition to achieve profit before taxes within a range of EUR 950 million and EUR 1 billion for the 2025 financial year.
Preliminary results
The information in this press release for the 2024 financial year is based on preliminary data. The final information for the 2024 financial year will be published in the Annual Report on 28 April 2025.
