This article first appeared on GuruFocus .
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Gross Written Premiums:Exceeded EUR9 billion, up 5.4%.
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Profit Before Tax:EUR640 million, up approximately 20% year-over-year.
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Net Combined Ratio:Improved to 91.4%, a 0.5 percentage point improvement despite higher NatCat claims.
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Solvency Ratio:272% as of June 2026, including Nurnberger on a simplified basis (down from 296% at year-end 2025).
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Operating Return on Equity:17.8%.
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Net Profit After Taxes and Non-Controlling Interests:EUR473.4 million, up 15.8%.
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Annualized Earnings Per Share:EUR7.28.
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Insurance Service Revenue:Grew 7.1% to EUR6.8 billion.
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Total Capital Investment Result:EUR373.5 million, up 26.4%.
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Life and Health CSM:Increased 1.3% in the period; CSM release of EUR299 million, new business of EUR252 million.
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New Business Margin:9% for the first half of 2026.
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Investments at VIG's Own Risk:Increased to EUR39.1 billion, up EUR1.1 billion compared to year-end.
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Goodwill Impairment (Hungary):Full impairment of EUR72.8 million recorded in the comparison period.
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Release Date: August 26, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Gross written premiums grew 5.4% to over EUR9 billion, with strong growth in key markets like Poland (8.3%) and Czechia (8.1%).
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Profit before taxes increased by 20.7%, driven by strong performances in Extended CEE, Austria, and Special Markets segments.
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Net combined ratio improved to 91.4% despite higher NatCat claims activity, reflecting operational efficiency.
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Solvency ratio remains robust at 272% even after including Nurnberger, with a simplified calculation method.
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Successful and fast integration of Nurnberger, with 99.2% of shares acquired and a squeeze-out process initiated.
Negative Points
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Solvency ratio decreased by 24 percentage points to 272% due to the inclusion of Nurnberger, indicating increased capital strain.
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Poland's result before taxes decreased by 12.8% due to technical reserve strengthening, impacting profitability.
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Czechia's combined ratio increased due to higher motor claims frequency and lower reinsurance commissions.
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The CSM release of EUR299 million was not fully offset by new business of EUR252 million, leading to a slight CSM decline.
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The insurance service result from reinsurance contracts held deteriorated significantly year-on-year due to large losses in the second half of 2025.
Q & A Highlights
Q: Can you explain the reserve strengthening in Poland, which led to a higher combined ratio despite strong growth? Is this a prudence build or a sign of adverse claims trends, and has pricing adequately reflected these trends? A: Peter Hoefinger, Deputy CEO, clarified that the reserve strengthening in Poland is a prudent measure. As the company returns to a growth dynamic, it is using favorable results to make the balance sheet in Poland more robust. This is a proactive step to strengthen financial stability rather than a response to adverse claims trends.
Q: How should we interpret the solvency ratio including Nurnberger, and what are the potential capital synergies from the transaction? A: Liane Hirner, CFRO, explained that the solvency ratio of 272% includes Nurnberger using a simplified method with Q1 data. This approach adds SCR submodules and own funds, which includes some diversification effects at the sub-module level. However, the full consolidation at year-end could lead to different effects and potential volatility. The company expects to remain well above the 200% threshold after full consolidation.
Q: What is the specific impact of Nurnberger's inclusion on the solvency ratio, and can you explain the strong movement in the 'taxes and other' category in the own funds development? A: Liane Hirner, CFRO, stated that without Nurnberger, the solvency ratio would be 296%, meaning the 24 percentage point difference is entirely due to Nurnberger's inclusion. The strong movement of plus EUR964 million in the 'taxes and other' category is primarily driven by additional funds from Nurnberger (approximately EUR1 billion) offset by a negative tax effect of EUR100 million.
Q: What are the effects of sector-specific taxes in Hungary in H1, and what are your expectations for insurance sector taxes under the new government? A: Peter Hoefinger, Deputy CEO, noted that there has been no change in taxes in Hungary so far, with no effect from changing taxes. It is too early to evaluate future changes, though the company hopes for positive short-to-mid-term changes for the insurance sector. The specific impact of additional sector taxes in Hungary for H1 was EUR24 million.
Q: Can you explain the deterioration in the insurance service result from reinsurance contracts held and other income/expenses in H1 2026? A: Liane Hirner, CFRO, explained that the deterioration in the insurance service result from reinsurance contracts held is due to large losses that occurred in the second half of 2025, which had a positive impact in the prior year. The change in other income and expenses includes a one-off related to the consolidation of reinsurance balances that does not impact the net result.
Q: What is driving the strong growth in Hungary, and is there any effect from the political change in the first half? A: Peter Hoefinger, Deputy CEO, stated that growth in Hungary is partly supported by FX effects, but there is also a positive mood and atmosphere in the economic environment from which the company is benefiting. There has been no change in taxes yet, and it is too early to get a concrete evaluation of future political impacts.
Q: Can you provide more details on the Nurnberger acquisition progress and the integration process? A: Peter Hoefinger, Deputy CEO, highlighted that the closing occurred on May 18, achieving 99.2% of shares, with a squeeze-out process initiated. The company was fast between signing and closing (seven months), allowing immediate start of the integration process, with a special focus on developing and implementing an IT transformation strategy. Financial targets for Evolve 28 will be updated once the integration and IFRS 17 are completed at year-end.
Q: What is driving the strong performance in the Special Markets segment, particularly in Turkiye? A: Liane Hirner, CFRO, noted that the Special Markets segment grew by 35% in result before taxes, driven by the performance of Turkiye with profits up by EUR19 million, based on a strong capital investment result. This was despite a restrictive approach in the motor business in Turkey in 2026.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
