Vienna Insurance Group Q1 premiums rise 8.3%, profit up 7.5%

Vienna Insurance Group reported strong Q1 2025 results, with gross written premiums up 8.3% to €4.65 billion and insurance service revenue increasing 8.1% to €3.14 billion, driven by growth across all business segments and major regions. Profit before taxes rose 7.5% to €261.1 million, with Poland and the Extended CEE segment being key contributors, while the net combined ratio improved to 92.3%. The company reaffirmed its full-year profit before tax target of €950 million to €1 billion.

Analysis

Vienna Insurance Group (VIGR) reported a robust start to 2025, with first-quarter gross written premiums increasing by 8.3% year-over-year to €4.65 billion, complemented by an 8.1% rise in insurance service revenue to €3.14 billion. This growth was broad-based, evident across all business segments and major geographical regions, with the Special Markets segment leading at a 38% expansion, followed by notable gains in Extended Central and Eastern Europe (10.7%), Poland (8.2%), the Czech Republic (7.3%), and Austria (6%). Profit before taxes advanced 7.5% to €261.1 million, primarily driven by strong performances in the Poland and Extended CEE segments, particularly Romania, Bulgaria, and Slovakia. Significantly, the group's net combined ratio, a key indicator of underwriting profitability, improved by 0.4 percentage points to 92.3%, a development VIGR attributes to enhanced claims ratio management and a lower incidence of natural disasters. The insurer's capital strength remains solid, underscored by a solvency ratio of 271% at quarter-end. Management has reaffirmed its full-year profit before taxes guidance of €950 million to €1 billion, signaling confidence in sustained operational performance.

Key Decisions for Investors

• The strong Q1 2025 results, particularly the improved net combined ratio and reaffirmed full-year profit guidance, present a positive signal for Vienna Insurance Group's operational health and earnings trajectory.
• Investors should monitor the continued growth momentum in key markets such as Poland and the Extended CEE region, as these are significant contributors to profitability.
• Given the excellent solvency ratio of 271% and broad-based premium growth, current investors may consider maintaining their positions, while prospective investors could view this as an encouraging entry point, contingent on broader market conditions and individual risk appetite.