Vienna Insurance Group (VIG), which includes Wiener Städtische life insurance a.d. Podgorica, managed to achieve a premium of more than 10 billion euros in 2020, despite the negative impact of the pandemic (preliminary report for 2020). Profit before tax of EUR 346 million and a combined ratio of 95% show that the group has achieved significant market results and stable operating operations despite difficult times.
KEY PERFORMANCE INDICATORS:
The volume of premiums increased to 10.43 billion euros
Profit before tax of 346 million euros in the upper limit of the projected range for 2020
Combined ratio improved to 95%
Outlook for 2021: pre-tax profit in the range of 450-500 million euros
“Preliminary results for 2020 confirm that VIG is more than fulfilling its claim to be a stable and reliable partner, even in a time of great challenges. Although the situation with COVID-19 affected our business development throughout the entire financial year 2020, VIG nevertheless achieved very stable operational results overall and continued to consistently implement the measures planned for the last year of the “Agenda 2020”. During the pandemic, we focused in particular on expanding the range of digital products and services. With the acquisition of AEGON companies operating in Eastern Europe, we have taken an important step in expanding market leadership in Central and Eastern Europe, even during this unusual global situation, ”explains CEO Elizabeth Stadler.
The acquisition of AEGON has strengthened its leading position in the Central and Eastern European market
At the end of November 2020, Vienna Insurance Group signed an agreement to purchase shares to take over the business in Eastern Europe from the Dutch insurance company AEGON. In this way, an important step has been taken towards expanding market leadership in the region of Central and Eastern Europe.
“It is clear that we are the market leader in the region of Central and Eastern Europe with a market share of almost 19%. This is a confirmation of our ambition to be the leading insurance group in the region. We are very pleased with the agreement reached with AEGON and are convinced that we are the right partner for the acquisition of 15 companies in Hungary, Poland, Romania and Turkey. This package includes insurance companies, pension funds, asset management companies and service companies that are complementary to and further empower our existing portfolio in these markets. We will work intensively on the transition in the coming months. We expect to bring the process to an end in the second half of 2021, “Stadler emphasizes.
The acquisition of AEGON is the second largest acquisition in the history of VIG, 13 years after the acquisition of ERSTE GROUP insurance companies. Based on data for 2019, VIG can expect an additional 600 million euros in insurance premiums, about 5 billion euros in assets of pension funds under management and about 4.5 million new clients.
