Austrian insurance undertakings observed an increase in premium volume in the second quarter of 2018 by +3.50% to € 4.14 billion compared to the corresponding period in the previous year. This increase could be attributed to an increase in the non-life/accident insurance sector by +4.94% to € 2.25 billion in the health insurance sector by +4.31% to € 548 million as well as in the life insurance sector by +0.86% to € 1.34 billion. During the first half of 2018 premium volume as a whole rose marginally by 0.87% to € 9.38 billion, with non-life/accident insurance increasing by +3.36% to € 5.38 billion, and health insurance increasing by +4.24% to € 1.12 billion, with life insurance in contrast falling by -2.35% to € 2.88 billion. These findings have emerged from the Report on the Austrian Insurance Sector for the second quarter of 2018, which was published today by the Austrian Financial Market Authority (FMA).
Weak earnings situation
Compared with the first half of 2017, the technical result across all sectors fell by 6.44% to € 306.01 million, with the financial result for the same period being 16.62% lower than in the preceding year. Consequently the result from ordinary activities decreased by -25.72% to € 693.79 million.
Adequate reserves
The total of all investments at market value (excluding investments in the area of unit-linked and index-linked life insurance) stood at € 108.3 billion at the end of the first half of 2018, whereas they stood at € 109 billion at the end of 2017.
Hidden net reserves (the balance of net reserves and net losses) of investments at the end of last quarter have increased by 0.26% to € 21.11 billion compared to the preceding quarter.
The solvency capital requirement of Austrian insurance undertakings pursuant to the Insurance Supervision Act 2017 was satisfactory as at the middle of 2018: More than half of the undertakings possess more than 220% of the legally required solvency capital requirement (SCR), i.e. twice as much own funds as required. The average value (median) of all insurance undertakings stands at 238.8%.
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