This article first appeared on GuruFocus .
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Gross Written Premium:16.3 billion, an increase of 7.1% from 2024.
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Insurance Service Revenue:13.2 billion, up by 8.7%.
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Profit Before Taxes:1.16 billion, an increase of over 30%.
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Net Combined Ratio:Improved by 3.3 percentage points to 90.1%.
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Solvency Ratio:Increased to 296% from 261% in 2024.
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Operating Return on Equity:18.7%, up by 2.5 percentage points from last year.
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Dividend Proposal:1.73 per share, up 12% from 1.55.
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Share Price Performance:Increased by 121.4%, closing at 67.20.
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CSM New Business Margin:9.8%, slightly below the previous year's 10%.
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Capital Investments:Increased to 38 billion, with bond portfolio proportion rising to 74.6%.
Release Date: March 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Vienna Insurance Group AG ( VNRFY ) achieved a record profit before taxes, surpassing the billion mark for the first time.
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The company reported a significant increase in gross written premiums, reaching 16.3 billion, a 7.1% rise from the previous year.
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The solvency ratio improved to 296%, indicating strong financial stability and capacity for future investments.
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The company's share price performance was outstanding, with a 121.4% increase, reaching an all-time high.
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Standard and Poor's upgraded the company's outlook from stable to positive, affirming its financial strength and growth potential.
Negative Points
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Goodwill impairments in Hungary amounted to 72.6 million, following a similar impairment of 116 million in the previous year.
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The dividend payout ratio remains below 30%, which is considered low compared to industry peers.
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The company faces potential indirect impacts from geopolitical tensions, such as increased inflation and stock market volatility.
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Despite strong growth, the dividend increase of 12% was lower than the 30% growth in earnings, raising questions about dividend policy.
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The company has no coverage for claims arising from war activities, which could pose risks in volatile regions.
Q & A Highlights
Q: Could you provide more details on the underlying drivers of the combined ratio, particularly the NatCAT impact in 2025? A: Peter Hoefinger, Deputy Chairman, explained that the combined ratio was influenced by inflation, successful rate increases, and improved pricing tools. The NatCAT impact difference between 2024 and 2025 was 1.1 percentage points. Economies of scale also contributed to a decrease in the cost ratio.
Q: Despite a 30% earnings growth, the dividend increased by only 12%. Why not increase the dividend payout ratio? A: Liane Hirner, CFO, stated that the dividend policy aims for stability and growth, with a 12% increase seen as positive. The group is financing acquisitions like Nurnberger with own funds, and the payout ratio is expected to increase in the future.
Q: Can you elaborate on the 580 million "other changes" in the solvency walk? A: Liane Hirner explained that these changes are due to valuation differences between Solvency II best estimates and IFRS 17 reserves, mainly influenced by positive interest rate developments. A stable development is expected going forward.
Q: What are the expectations for growth in 2026, and will the combined ratio improve further? A: Hartwig Loeger, CEO, highlighted that growth is expected from dynamic markets in Central and Eastern Europe, with potential in both organic growth and strategic partnerships. The combined ratio is expected to benefit from continued improvements in pricing and segmentation.
Q: How are new pricing tools impacting margins, and what is their potential for further improvements? A: Peter Hoefinger noted that new pricing tools have improved segmentation and profitability, particularly in motor insurance. While exact future improvements are hard to quantify, the tools are expected to continue enhancing margins.
Q: What is the budget for NatCAT events in your strategic plan? A: Peter Hoefinger stated that there is a budget for NatCAT and weather-related claims at a local level. The group has resilient coverage with low retention for large events, minimizing their impact on overall results.
Q: What is the potential impact of the Solvency II review on VIG? A: Liane Hirner mentioned that the Solvency II review's impact varies by portfolio type, but overall, no significant changes are expected for the group due to its diversification.
Q: Are there any remaining goodwill impairments expected for Hungary? A: Liane Hirner confirmed that the entire goodwill for Hungary has been written down, and no further impairments are expected.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
