In the third quarter of 2020 – compared to the corresponding period in the previous year – observed a small decrease in premium volume by -0.7% to € 4.36 bn. More than half of premiums, some € 2.54 billion (-0.41%) originate from non-life/accident insurance. The largest fall in premiums were seen in life insurance with premiums of € 1.22 billion (-2.65%). In comparison to the corresponding quarter of the previous year, health insurance performed best with a volume of € 607 million (+2.17 %). During the first three quarters of the year premiums written stood at € 14.8 billion in total, an increase of +9.14% compared to the corresponding period last year. These premiums are made up of € 8.98 bn (+1.98%) in non-life/accident insurance, € 1.83 bn (+4.07%) in health insurance and € 3.97 bn (-0.26%) in life insurance. These findings have emerged from the Report on the Austrian Insurance Sector for the third quarter of 2020, which was published today by the Austrian Financial Market Authority (FMA).
Financial result remains negative, slight recovery in the result from ordinary activities (EGT)
The technical result improved in the first nine months of 2020 in comparison to those for the previous year by 18.07% to € 616.06 million. However, Austria’s insurance industry reports a reduction by 36.57% to € 1.46 billion in financial result. This results in a fall of 27.03% to € 933.01 million in the result from ordinary activities, compared to € 1,278.67 million for the first three quarters of 2019. Compared with the massive fall in the result from ordinary activities due to the COVID-19 pandemic during the first two quarters (-40.41%), the decline was therefore able to be arrested somewhat during the third quarter of 2020. 88.82% of EGT is obtained from non-life/accident insurance, 2.51% from life insurance and 8.67% from health insurance. The operating margin, ie. the ratio of EGT to premiums, stood at 6.49% during the first three quarters, 253 basis points less than for the comparable period in 2019. Hidden net reserves (the balance of net reserves and net losses) stood at € 23.39 billion at the end of the 3rd quarter, just under 5% more than in the preceding quarter.
Solvency remains stable
More than half (56%) of all insurance undertakings were able at the end of the third quarter 2020 to post a solvency capital level (SCR – Solvency Capital Requirement) in accordance with the Insurance Supervision Act 2016 (VAG 2016) of over 200%, i.e. having more than twice as high own funds than required. The median solvency capital requirement increased by 6% to 211.31% compared with the previous quarter.
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 / 88 249 516