Dividend to increase

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Thanks to higher income and profits, VIG intends to pay a dividend of EUR 1.55 per share for 2024.(Bild: APA/HELMUT FOHRINGER)

Vienna Insurance Group generated more income and a higher profit last year. Solid growth in all segments and lines of business led to a ten percent increase in premiums written to EUR 15.2 billion, as the listed insurer announced on Wednesday. According to the preliminary figures, earnings before taxes increased by 14 percent to 881.8 million euros.

In the extended CEE region (Albania, Kosovo, the Baltic states, Bosnia-Herzegovina, Bulgaria, Croatia, Moldova, North Macedonia, Romania, Serbia, Slovakia, Ukraine and Hungary), premiums grew by 10.5 percent year-on-year. Of the countries in this segment, Romania (up 16.3%), the Baltic states (up 10.4%), Slovakia (up 7.4%) and Bulgaria (up 14.8%) in particular recorded significant increases.

Growth in all segments
By line of business, there was growth in motor third party liability (up 11.6 percent), motor own damage (up 12.2 percent) and other property insurance (up 10.3 percent). Premiums in health insurance rose by 14.2% and those in life insurance by 6%. In Austria, 26% of premiums written were generated.

The floods last September caused gross losses of EUR 617 million for VIG. Austria, the Czech Republic and Poland were particularly affected. "Thanks to the regional diversification of our Group and our conservative reinsurance strategy, we were able to absorb the effects of this largest loss event in our 200-year history well in terms of earnings," commented Peter Höfinger, Deputy General Manager of VIG, on the effects in a press release.

Dividend to increase
The company plans to distribute a dividend of EUR 1.55 per share for 2024 - the proposed dividend represents an increase compared to 2023 (EUR 1.40 per share). The management is optimistic for 2025 and is targeting a further increase in earnings to between 950 million and one billion euros despite the difficult market environment.