VIG Re had a memorable 15th year - its preliminary results for the financial year 2023, show growth in both revenue and profits.
The reinsurance firm reported a 13.7% increase in gross written premiums, totaling €900.7 million for 2023. This growth was primarily fueled by the non-life treaty business, which saw significant advances across various segments.
Under the newly adopted IFRS 17/9 standards, VIG Re recorded insurance service revenue of €819.4 million. Despite facing substantial natural catastrophe losses in Turkey and Continental Europe, the company improved its net combined ratio to 90.8%. The insurance service result stood at €41.5 million, with reinsurance issued business contributing €136.6 million, offset by €-95.1 million from reinsurance held.
The net investment result for 2023 was €10.9 million, with profit before taxes rising to €31.6 million and net profit after taxes reaching €24.4 million, implying a tax rate of 22.7%. The company expects to release its fully audited results by April 30, 2024.
In a move to bolster future growth, VIG Re also increased its equity by €100 million in December 2023, enhancing its year-end solvency ratio to 220.2% from 173.7% in 2022. S&P Global reaffirmed VIG Re’s A+ financial strength rating on December 11, 2023, for the 15th consecutive year.
Johannes Martin Hartmann, CEO and chairman of VIG Re’s management board, reflected on the challenges and achievements of 2023.
“Our prudent underwriting policy, the further diversification of our portfolio and, last but not least, our success to attract top talents from the industry enabled us to weather these challenges. I am proud to report 2023 as another record year for VIG Re, not only with regard to our growth of revenues, but also in respect of underwriting result and profits to our shareholder,” Hartmann said.
Tobias Sonndorfer, the recently elected vice-chairman of the management board, also highlighted the company’s strategic vision in its quest for further growth.
“We will further consolidate our leadership position in Central and Eastern Europe, while expanding our franchise in Continental Europe, and diversify our portfolio in Asia and selected international markets. In addition, we will make significant investments in our people and our infrastructure to enforce our reputation as a seamless operator and a trusted advisor,” Sonndorfer said.
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