Unabated Expansion of Vienna's Urban Landscape Persists
Down and Dirty Scoop on Wiener Städtische's Financial Gains
Last year, Wiener Städtische, a slick subsidiary of Vienna Insurance Group (VIG), rocketed its premium volume up by 6% to a whopping 3.6 billion euros. Despite a slight dip in profit, the company managed to withstand the test of time with a tax-adjusted profit of 318.6 million euros, a drop from 349.2 million euros the previous year.
Talking shop at a steamy press conference in Vienna, their CEO, Ralph Müller, revealed a record-breaking storm damage bill that put the insurer miles ahead of the competition. Wiener Städtische handily contributed around 35 percent of the group's total results.
Health insurance experienced a scorching growth of 9.9 percent, reaching 542 million euros. Müller pointed out that the influx of customers often tends to be younger with many parents scooping up policies for their kiddos.
Against the industry's grain, life insurance also saw a one-off increase by 1.8 percent, reaching a meaty 1.2 billion euros. Müller credits this surge, in part, to a growing awareness among the populous that the pension system is facing changes. He reckons this area will continue to gain ground among competitors, with index-linked life insurance policies expected to see an even stronger jump in the coming days.
The industry is grappling with the increasing aftermath of storm damage due to climate change. With a damage total of 227 million euros, Wiener Städtische blew past their 2021 record of 200 million euros. This surge cannot be shrugged off as mere inflation or an increase in insured properties' value.
In all, Wiener Städtische paid out a hefty 3.3 billion euros to their ever-grateful customers last year. Insurance payouts in motor and health insurance also experienced a significant hike. The impressive streak in premium growth across all sectors was echoed in the first quarter of 2025, with a stable performance expected for the full year.
Hints of Insight
- Wiener Städtische's dominance in market diversification, savvy partnerships, and conservative reinsurance strategies could be factors that drive overall insurance sales growth within VIG.
- Healthier demand for insurance products exists across the globe, encouraging life insurance uptake. However, in-depth growth factors for life insurance across the industry at large remain elusive.
- Other major insurers like Generali have reported impressive financial results, hinting at a robust insurance market on an international scale.
- Despite a slight dip in profit, Wiener Städtische's tax-adjusted profit ratio of 87.6% still surpassed the previous year, confirming the financial strength of the insurer within Vienna Insurance Group (VIG).
- In light of the growing awareness about changes in the pension system and the increasing demand for health insurance globally, Wiener Städtische is aiming to solidify its dominance by offering index-linked life insurance policies, expecting a stronger jump in the future.
- With a damage total of 227 million euros due to climate change-induced storms, Wiener Städtische's insurance payouts have significantly increased, suggesting a need for more vigilant policies addressing the aftermath of such natural disasters.
- The impressive growth in premiums across all sectors, such as motor and health insurance, has been echoed in the first quarter of 2025, and it is predicted that Wiener Städtische will maintain this momentum for the entire year, supported by strategic partnerships and conservative reinsurance strategies.
