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Published: October 26, 2024 | By Rachel Kim, World-Today-News.com
Austria‘s Financial Market Authority (FMA) has reported a significant increase in insurance premiums for the first half of 2024. Total offset premiums reached EUR 13.25 billion, marking a 4.7% rise compared to the same period last year.
Damage and accident insurance accounted for the largest portion of this growth, generating EUR 8.78 billion in premiums – a 4.4% increase. Health insurance also saw significant gains, climbing 8.9% to EUR 1.717 billion. Life insurance premiums totaled EUR 2.73 billion, a 3.7% increase, largely driven by a 29% surge in one-off premiums, which amounted to EUR 433 million.
Ordinary Business Results show Strong Enhancement
The results from ordinary business operations demonstrated even more impressive growth, increasing by 62% to EUR 1.735 billion. Damage/accident insurance led the way with a 59% increase to EUR 1.464 billion. Health insurance experienced nearly a tripling of results, reaching EUR 155.4 million, while life insurance saw a 23% increase to EUR 115.8 million.
International Expansion Fuels Growth
Austrian insurance groups – including Grawe, Merkur, Uniqa, Vienna Insurance Group (VIG), and Wüstenrot – are increasingly looking abroad for growth. Net premiums from international operations increased by 11% to EUR 12.9 billion in 2024. Currently, foreign business represents 55% of overall premium income, exceeding domestic business.
The Czech Republic and Poland remain key markets for these groups. The VIG reported overall bonuses of EUR 13.5 billion, while UNIQA reached EUR 7.5 billion. Notably, the VIG experienced a doubling of its premium volume in Turkey, while Uniqa completed its withdrawal from the Russian market.
FMA Highlights Stability of Foreign Markets
The FMA emphasized the role of international business as a stable growth driver, particularly in the face of ongoing geopolitical uncertainties. The authority noted that,for several groups,foreign operations are delivering higher profitability than their domestic counterparts.
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