Strong capital position, regional focus underlie VIG’s success

We had a very satisfactory result in 2022, which underlined our growth strategy and our claim to be a stable and reliable partner for our stakeholders. At 12.6 billion euro, VIG’s premium volume improved by 14.1%; the profit before taxes was 10% higher, profit after taxes 24% higher than in the previous year. The numbers concerning our performance in the first half of 2023 too are extremely positive despite the continuing challenges. Our excellent capital position and our business model with a strong regional focus – which allows rapid, customised action where required – remain fundamental factors behind our continuing success in very challenging times.


We will develop our business in SEE through Euroins Bulgaria

Despite the conflict in Ukraine, the sale of our business in Russia and Belarus, as well as the cease of our operations in the volatile and crisis-ridden Romanian motor insurance market, our group continues to be very well positioned in the region. All other units within our structure are performing well and developing their business steadily. This trend has been confirmed by the leading rating agency, Fitch Ratings, which in August affirmed the ‘B+’ Insurer Financial Strength Rating with stable outlook of Euroins Bulgaria, the group’s largest subsidiary. The rating agency’s assessment is that the business of the group’s entities remains stable even after our withdrawal from the Romanian motor insurance market. Fitch also affirmed the same ratings of the holding company.


Interest in voluntary insurance likely to grow as risk awareness rises

We have always focused on providing quality products and services at the right price, bringing continuity to our customers’ lives in a simple and predictable way. In other words, we focused on being that partner that people need to live their lives confidently. All of this, together with a high-performing team and a strong brand, determined our success. We achieved very good results across all business lines and recorded double-digit increases, both in the Auto or Non-Auto sectors. We continued to consolidate these results throughout this year as well. Furthermore, Groupama now has a significantly enhanced presence in the RCA sector (civil liability car insurance), a position undertaken and built on the principle of delivering quality at a fair price.


Our success is built on broadly diversified business model

We are very satisfied with our results in a very challenging time, which is primarily characterised by the war in Ukraine, high inflation and the pandemic that is still present. Although these influences, which also apply to the insurance industry, are dampening the economic outlook, VIG Group continues to demonstrate very strong resilience, which is once again manifested in improved key figures. Improving premiums and profits, as well as the combined ratio, cannot be taken for granted. The success of our group is built on a long-term oriented and broadly diversified business model, which shows its strengths especially in particularly challenging phases. Also, digitalisation plays a very important role. We have the great advantage that in many of our markets digital literacy is considerably higher than in Austria for example, and we have launched most innovative projects in CEE.


We will transition to service-oriented business model

Based on strategic starting points and last year’s macroeconomic forecasts for 2022, the Triglav Group plans a profit before tax of 120–130 million euro and an increase in total written premium to more than 1.4 billion euro; however, due to the growth of the insurance portfolio and other factors, we also expect an increased volume of claims paid. The combined ratio is expected to remain favourable below 93%. Due to the low interest rates at which our investments were reinvested in the previous financial year, we anticipated a further decline in rates of return on investment, excluding unit-linked assets. We estimate that the planned annual profit will be achieved; however, it should be stressed that the risks related to the realisation of target profit increased significantly due to negative influences from the business environment.


Euroins Romania set for growth through products diversification, digital transformation

In less than a year, the company has seen massive improvements from digitalisation of processes to diversification of insurance products, as well as a major decrease in complaints and faster payments combined with an important increase in the non-MTPL segment.In less than a year, the company has seen massive improvements from digitalisation of processes to diversification of insurance products, as well as a major decrease in complaints and faster payments combined with an important increase in the non-MTPL segment. Other important achievements of our team are of course the new branding, the focus on improving the customer experience and the change in the company culture.

Geraldine O’Keeffe

Innovation in insurance sector – getting started with platform approach

COVID-19 has jumpstarted the digital transformation in the insurance sector. Insurance customers are embracing digital touchpoints across the entire customer lifecycle: 71% of US life insurance buyers researched their insurance products online, 74% of UK insurance buyers bought insurance online, 13% of Italian insurance buyers have interacted with their insurer via online chat, and the list goes on (Forrester, The State of Digital Insurance, 2021). Where insurance companies haven’t responded with better digital experiences, a number of insurtechs are prepared to take over. But digital technologies are changing more than just sales and service, and this is starting to affect the entire insurance value chain. Insurers are now facing three key challenges: how to increase customer satisfaction and retention, reduce operational cost and utilise legacy core insurance technology.

Elisabeth Stadler

We will further strengthen green investments and digital offerings

It has been shown that people particularly appreciate protection and security in crisis situations. Our business model therefore proves its worth especially in such situations. People appreciate being well protected at such times, which is why we were confronted with almost no cancellations of insurance policies and we registered an increased interest in health insurance. What has also proven successful is that we have been pushing the digital transformation within our group for years. The already extensive range of digital services and products has been a great benefit for us during the pandemic. We have also consciously continued to strengthen digital offerings and will continue to do so. Another factor is our strategic orientation with a high level of diversity. It has been confirmed that our business model, with its broad diversity across countries, brands, distribution channels and products, is proving successful even in difficult times. We therefore did not have to, and do not have to, rethink our strategic goals.