The premium volume of Austrian insurance undertakings increased during the second quarter of 2020 by +2.54% to € 4.61 billion compared with the second quarter of 2019. This increase is especially attributable to the “non-life/accident” insurance sector, which increased by +5.64% to € 2.73 billion as well the “health” sectorm which increased by +4.75% to € 601 million. In contrast premium volume for life insurance decreased by -4.42%, with a decrease in premium volume to € 1.28 billion. The premium volume for the first half of 2020 as a whole rose to € 10.44 billion, with non-life/accident insurance increasing by +2.96 % to € 6.44 billion, health insurance increasing by +5.04% to € 1.22 billion, and life insurance premium volume increasing by +0.53% to € 2.78 billion. These findings have emerged from the Report on the Austrian Insurance Sector for the second quarter of 2020, which was published today by the Austrian Financial Market Authority (FMA).
Substantial decrease in the result from ordinary activities (Ergebnis der gewöhnlichen Geschäftstätigkeit (EGT))
The result from ordinary activities decreased during the 2nd quarter 2020 compared with the corresponding quarter of the previous year by -40.41% or € 464.31 million to € 684.69 million. This is attributable to the financial result, which fell by -51.87% or € 925.48 million to € 858.84 million. The technical result also fell by -1.04% or – € 4.52 million to € 428.82 million.
Hidden net reserves (the balance of net reserves and net losses) at the end of the past quarter have risen by +12.74% to € 22.32 billion in comparison with the preceding quarter. At the end of the reporting period the reserve ratio therefore stood at 24.54%.
The solvency capital ratio of Austrian insurance undertakings in accordance with the Insurance Supervision Act 2016 (VAG 2016; Versicherungsaufsichtsgesetz 2016) has fallen slightly, but still remains satisfactory as at the end of the first half of 2020: half of the undertakings have a solvency capital requirement (SCR) of over 200%, i.e. twice as much own funds as required. The average value (median) of all insurance undertakings stands at 199.29%.
The full quarterly report can be found (in German only) on the FMA website via this link.
Journalists may address further enquiries to:
Klaus Grubelnik (FMA Media Spokesperson):
+43/(0)1/24959-6006
+43/(0)676/882 49 516