The premium volume of Austrian insurance undertakings increased during the second quarter of 2021 by +3.82% to € 4.78 billion compared with the second quarter of 2020. This increase is broken down as follows for the individual insurances classes: Non-life/accident +4.35% to € 2.85 bn, life insurance +2.69% to € 1.31 bn as well as health insurance +3.84% to € 624 million. The premium volume for the first half of 2020 as a whole rose to € 10.63 billion, with non-life/accident insurance increasing by +3.07 % to € 6.64 billion, health insurance increasing by +3.40% to € 1.26 billion, while life insurance premium volume decreased by -1.56% to € 2.73 billion. These findings have emerged from the Report on the Austrian Insurance Sector for the second quarter of 2021, which was published today by the Austrian Financial Market Authority (FMA).
Significantly improved earnings situation
Financial results for the first half of 2020 were affected by the capital market turbulence that occurred following the outbreak of the COVID-19 pandemic. In contrast, the corresponding results for this year are significantly more positive. During the first half of 2021, the result from ordinary activities (EGT; Ergebnis der gewöhnlichen Geschäftstätigkeit)) was able to be almost doubled in comparison with the corresponding period in 2020: increasing from € 684.7 million to € 1,348 million, an increase by € 663.3 million or 96.88%. This is primarily attributable to the financial result, which improved by +113.16% or € 971.9 million to € 1,830.7 million. The technical result also improved significantly by +8.20% or + € 35.2 million to € 464 million.
The total of all assets at market value (excluding investments in the area of unit-linked and index-linked life insurance) of the insurance undertakings stood at €116.1 bn at the end of the first half of 2021, an increase of € 7.4 billion or 6.8% over the previous year. They stood at € 114.4 bn at year end 2020, and €115.1 bn at the end of the 2nd Quarter of 2021.
The undisclosed reserves of investments (excluding funds- and index-based life insurance) in contrast fell marginally by 0.14% to € 23.96 billion at the end of the 2nd quarter compared with the first quarter of 2021. At the end of the reporting period the reserve ratio therefore stood at 24.54%; a year previously it had stood at 24.54%.
Insurance industry on a very stable footing
The solvency level of Austrian insurance undertakings has again improved significantly up until the end of the first half of the year: Two thirds of the undertakings have a solvency capital requirement (SCR) of over 200%, i.e. twice as much own funds as required. A year ago only around a half of the undertakings were in such a position. As of 30 June 2021, the average level (median) stood at 221%, compared with 199.29% a year before.
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