The volume of premiums written by Austria’s insurance industry increased by + 0.21 % in the 1st Quarter of 2018 compared with the 1st Quarter of 2017 to € 5.23 billion. Premium volumes for the individual sectors stood at EUR 3.13 billion or 59.79 % (+ 2.25 %) in the non-life/accident insurance sector, EUR 1.54 billion or 29.36 % (- 4.99 %) in the life insurance sector and EUR 568 million 10.85 % (+ 4.17 %) in the health insurance sector. The decrease in the life insurance sector was attributed on the one hand to an 8.35 % fall in conventional life insurance, whereas unit-linked and index-linked life insurance increased by 5.19 %, while on the other hand one-off premiums fell by 13.34 %, and regular premiums fell by 3.18 %. These findings have emerged from the Report on the Austrian Insurance Sector for the first quarter of 2018, which was published today by the Austrian Financial Market Authority (FMA).
Weakened earnings situation
The earnings dynamic, however, fell strongly during the first three months of the year (compared with Q1/2017): The Austrian market’s technical result decreased by 18.31 %, while the financial result decreased by 19.57 %, with the effect that the result from ordinary activities fell by 32.81 % or € 113.44 million to € 232.32 million. The total of all assets at market values (excluding unit-linked and index-linked life insurance) fell (in comparison to Q1 2017) by € 1.61 billion to € 108.63 billion.
High Reserves
Despite these challenges, Austrian insurance undertakings continue to have a stable position. While the hidden net reserves (the balance of net reserves and net losses) at the end of the 1st Quarter 2018 fell by 3.79 % to € 21.05 billion, which nevertheless still constitutes a ratio of reserves to investments of 23.34 %. The solvency requirements in accordance with Solvency II, which take into account the individual risk profile of every undertaking, also provide a satisfactory report for the sector. More than half of the undertakings possess more than 230 % of the legally required solvency capital requirement (SCR) (Q1/2017: 200%). The average value (median) of all insurance undertakings stands at 253.3 %. (Q1/2017: 236.8 %).
The full quarterly report can be found on the FMA website (in German only) at https://www.fma.gv.at/versicherungen/offenlegung/quartalsberichte/
Journalists may address further enquiries to:
Klaus Grubelnik (FMA Media Spokesperson)
+43/(0)1/24959-6006
+43/(0)676/882 49 516