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Q1 2019 FMA report on the Austrian insurance industry: insurance business doing well, investment business struggling

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Austrian insurance undertakings increased their premium volume in the first quarter of 2019 by + 0.37 % to € 5.25 billion compared against the first quarter of 2018. The result from ordinary activities increased very heavily during the first quarter of 2019, by + 67.96% over the corresponding period in the previous year to € 390.2 million. This can be traced back to the technical result increasing during this period by +42.28% and the financial result by +37.18%. The total of all assets at market value (excluding investments in the area of unit-linked and index-linked life insurance) stands at € 109.6 billion (+0.89%). The capital base of the insurance undertakings remains good: More than 50 % of the undertakings have an SCR solvency level of over 220%,  i.e. holding more than double the amount of own funds required. These are the findings of the Austrian Financial Market Authority’s (FMA) “Q1 2019 Quarterly Reporting – Insurance Undertakings”, which was published today.

Insurance business doing well, investment business struggling

However, when broken down by insurance sectors, there is a very varied picture in relation to the development of premiums. While premiums increased markedly by +3.97% to € 3.25 billion in the non-life/accident insurance sector and by + 3.36% to € 587 million in the health insurance sector, it continued to fall strongly in the life insurance sector by -8.05% to € 1.41 billion.  Around four-fifths of this decrease of almost € 100 million in turn can be traced back to one-off premiums and unit-linked and index-linked life insurance. The surrender volume of 24.07%, as early redemption of life insurance products is known, is also high. These are developments that reflect the challenges present by the continuing low interest environment for investment products.

The yield on turnover (result on ordinary activities to premiums) is a significant indicator of earning capacity are improved significantly by 362 basis points to 8.9% year-on-year in the first quarter of 2019. Particularly noticeable is the contribution of life insurance, the yield on turnover of which increased from 1.03% to 4.60% (non-life/accident from 8.60% to 11.54% and health from 2.38% to 7.6%).

Journalists may address further enquiries to:

Klaus Grubelnik: +43 / (0)1 / 249 59 6001 or +43 / (0)676 / 88 249 516

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