During the 4th quarter of 2019, Austrian insurance undertakings posted an increase in premium volume of +2.29% to € 4.00 billion, in comparison with the corresponding period in 2018. For the full-year 2019 premium volume stood at € 17.56 billion, an increase of +2.21% compared with the preceding year. These findings have emerged from the Report on the Austrian Insurance Sector for the fourth quarter of 2019, which was published today by the Austrian Financial Market Authority (FMA).
The volume of premiums in the 4th Quarter of 2019 consisted of € 2.00 billion in the non-life/accident insurance sector (+2.67% compared to Q4 2018), € 1.42 billion in the life insurance sector (+0.78%) and € 580 million in the health insurance sector (+4.82%). For the full year in 2019, premium volume in life insurance fell by -2.18% to € 5.40 billion. The sectors non-life and accident insurance and health insurance were able to post increases of +4.13% to € 9.83 billion and +4.86% to € 2.33 billion respectively.
In 2019 the technical result compared with 2018 increased by +22.09% or € 111.91 million to € 618.45 million, with the financial result increasing by +23.33% or € 589.86 million to € 3.12 billion. Consequently the result from ordinary activities (EGT) increased by € 526.27 million or +45.04% to € 1.69 billion.
The total of all assets at market value (excluding investments in the area of unit-linked and index-linked life insurance) stood at € 110.60 billion at the end of 2019, an increase of 3.45% or + € 3.69 billion more than the corresponding value at year-end 2018.
Solvency remains good
The undisclosed net reserves (the balance of undisclosed reserves and losses) stood at € 22.84 at the end of 2019, a fall of € 1.65 billion (-6.74%) compared with the previous quarter, but an increase of € 4.03 billion or +21.42% compared with the year-end 2018.
With regard to the solvency requirements pursuant to the Insurance Supervision Act 2016 (VAG 2016; Versicherungsaufsichtsgesetz 2016), more than half of all insurance undertakings had an SCR solvency level of over 210%; i.e. holding more than double the amount of own funds as required. At the end of 2018 this value was however 230%. The Solvency Capital Requirement (SCR) measures whether the insurance undertaking is able with 99.5% probability within the next twelve months to absorb unexpected losses as well as to be able to meet its obligations towards policyholders. The MCR solvency level at approximately half of the insurance undertakings was even in the range from 501% to 913% (cf. 2018: 561% to 948%). The Minimum Capital Requirement (MCR) is the minimum amount of own funds that the insurance undertaking is required to hold in any case and at all times.
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