In an increasingly interconnected global economy, the international expansion of financial institutions has become a key strategic priority. Austrian insurance groups are no exception, having significantly extended their operations beyond national borders over the past decades. This development has been driven by a combination of market saturation in the home market, growth opportunities in emerging markets — particularly in Central, Eastern and Southeastern Europe (CESEE) — and the pursuit of diversification to mitigate local risks.
This analysis aims to explore the structure, performance, and strategic importance of the foreign business activities of Austrian insurance groups. It will examine the geographical distribution of their international operations, assess financial contributions from foreign markets, and evaluate the challenges and opportunities these companies face in a competitive and evolving global insurance landscape.
The importance of such an analysis has grown considerably in light of recent global developments. Geopolitical tensions, such as conflicts near key markets, shifting regulatory environments, and economic sanctions, can significantly impact cross-border insurance operations. At the same time, the accelerating effects of climate change are reshaping risk landscapes and insurance models worldwide, requiring insurers to adapt their strategies and product offerings. Additionally, emerging trends such as digital transformation, ESG (Environmental, Social, and Governance) integration, and demographic shifts are influencing how insurance groups operate and compete internationally.
The findings are intended to provide valuable insights for a broad range of interested parties, including policymakers, investors, industry analysts, and academic researchers, who seek to better understand the dynamics and implications of Austrian insurers’ international engagement in this complex and rapidly changing environment.
Five insurance groups headquartered in Austria (GRAWE, Merkur, UNIQA, Vienna Insurance Group, Wüstenrot) are active on foreign insurance markets via insurance and reinsurance subsidiaries.
For a more structured overview, FMA divides the scope of international activity into five geographical segments: Austria (AT), Central Europe (CE), Southeastern Europe (SEE), Eastern Europe (EE) and Western Europe (WE). The aim of this allocation is to achieve a more homogeneous grouping of insurance markets, taking various criteria into account (e.g. EEA-countries, macroeconomic factors, insurance markets’ level of maturity).
Due to market exit of UNIQA in 2024, Russia is no longer a foreign market for Austrian insurance groups. Therefore, the scope of Austrian insurance groups includes 26 countries besides Austria by year-end 2024.
Not all groups are represented in each geographical segment, but overall, there is a clear focus on the AT and EE region, where most of the foreign premium volume is generated.
| Number of undertakings | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|---|
| Insurance undertakings | Austria | 9 | 8 | 8 | 9 | 9 | 9 |
| Foreign markets | 89 | 92 | 86 | 88 | 88 | 84 | |
| Reinsurance undertakings | Austria | 1 | 1 | 1 | 1 | 1 | 1 |
| Foreign markets | 4 | 4 | 4 | 4 | 4 | 4 | |
| Insurance and reinsurance undertakings | 103 | 105 | 99 | 102 | 102 | 98 | |
| Source: FMA Solvency II reporting | |||||||
At year-end 2024, the scope of Austrian insurance groups covered 98 insurance and reinsurance undertakings. Thereof, there are 93 insurance undertakings (9 in Austria and 84 in foreign markets) and 5 reinsurance undertakings (1 located in Austria and 4 abroad).
There has been a decrease of -4 in the number of insurance and reinsurance undertakings compared to the previous year, which results from the market exit from Russia (-1 undertaking) and several mergers in Poland (-3 undertakings) and North Macedonia (-1 undertaking). In Albania, one further insurance undertaking has been founded by Vienna Insurance Group (VIG).
To thoroughly analyse the foreign insurance business activities, it’s essential to consider the macroeconomic conditions in the countries where they operate. This evaluation involves reviewing key indicators such as real GDP growth, inflation, and unemployment.
The unweighted average real GDP growth rate was highest in the EE region with 4.75%, followed by SEE with 3.15% and CE with 0.24%. The highest growth rates were recorded in Georgia with 7.83%, followed by Montenegro with 6.3% and Ukraine and Turkiye with 5.5% each. In contrast, growth rates were negative in the countries Latvia and Estonia with values between -0.4% and -0.3%.
In the segment Western Europe, Switzerland and Germany showed growth rates of 1.3%, and -0.2%, respectively. In Austria, real GDP growth was -1%.
In 2024, inflation moderated in most CESEE countries.
The unweighted average inflation rate was highest in the EE region with 15.32%, followed by SEE with 3.2% and CE with 2.74%. Turkiye still is an outlier with a very high inflation rate of 58.5% in 2024. Ukraine with 6.5%, Romania with 5.8% and Belarus with 5.79% also recorded comparatively high inflation rates in 2024 in the CESEE region.
In the segment Western Europe, Germany and Switzerland showed inflation rates of 2.5% and 1.1%, respectively. In Austria the inflation rate was 2.9%.
The unweighted average unemployment rate was highest in the SEE region with 8.22%, followed by EE with 6.27% and CE with 5.27%. The highest unemployment rates were recorded in Montenegro with 14.1%, followed by North Macedonia with 13.42% and Bosnia and Herzegovina with 12.6%.
The lowest unemployment rates were recorded in Moldova with 1.43%, followed by Czechia with 2.6% and Poland with 2.9%.
Insurance markets relevant for Austrian insurance groups differ significantly regarding size and level of maturity. The indicators used to assess the level of maturity are insurance penetration (i.e., premiums in % of GDP) and insurance density (i.e., premiums per capita), the insurance market size (illustrated by the size of the bubbles) is measured on the basis of gross written premiums.
Regarding market size, Poland is the biggest market of the CE-region with a size of 19,849 million EUR gross written premiums, followed by Czechia with 9,380 million EUR and Hungary with 3,788 million EUR. The biggest markets in the SEE-segment are Romania with a size of 3,955 million EUR and Bulgaria with 3,677 million EUR, followed by Croatia with 1,968 million EUR. The EE-segment is dominated by the insurance markets of Turkiye with 22,784 million EUR and Ukraine with 1,236 million EUR.
A clear difference in the maturity level as measured by insurance density, can be observed between the CE and the EE segment. While the majority of CE countries show an insurance density above 380 EUR, this indicator is below 270 EUR in EE-countries and also in some of the SEE-countries. A remarkable heterogeneity can be seen in the insurance penetration within the SEE-segment: Albania records an insurance penetration of 1.0%, while this indicator reaches 3.5% in Bulgaria.
Outliers in all CESEE segments are Cyprus and Slovenia. In Cyprus, the insurance density is 1,143 EUR and the insurance penetration 4.6%. In Slovenia, the insurance density is 1,481 EUR and the insurance penetration 4.7%.
The segment Western Europe (Germany, Liechtenstein and Switzerland) and Austria are not shown in the graph, as they are still significantly more mature insurance markets. Germany has an insurance penetration of 8.4% paired with an insurance density of 4,316 EUR. Switzerland has an insurance penetration of 13.4% paired with an insurance density of 12,873 EUR. Liechtenstein represents an outlier for both measures with 76.8% and 145,489 EUR. In Austria, the insurance penetration is at 4.8% and the insurance density at 2,522 EUR.
Information on market shares of Austrian insurance groups is calculated for all EEA-countries, where data is based on national Solvency II-reporting and publicly available insurance statistics by EIOPA (market shares in terms of net written premiums).
There are 3 countries with aggregated market shares of Austrian insurance groups greater or equal to 30%: Czechia, Slovakia and Latvia. Czechia ranks first with an aggregated market share of 42.92%, followed by Slovakia with 40.39% and Latvia with 36.38%.
In most countries, the high market shares are due to the strong market positions of VIG. The EEA-country with the highest single market share is Slovakia with a market share of 37.11%, followed by Latvia with 36.38% and Czechia with 33.48%, all of them held by VIG.
Regarding market positions in non-EEA countries, no fully consistent information is available. However, Austrian insurance groups hold strong positions in several non-EEA markets, particularly in the life insurance sector. They lead the life insurance market in Albania and are among the top five in Bosnia and Herzegovina, Bulgaria, Montenegro, North Macedonia, Turkey, and Ukraine. In non-life insurance, they also rank highly in Albania, Bulgaria, Montenegro, North Macedonia, and Ukraine. Additionally, they are ranked second and third in the total insurance markets of Kosovo and Serbia, respectively.
Austrian insurance groups differ considerably regarding the size and the scale of contribution of foreign business.
| Net written premiums (in million EUR) | GRAWE | Merkur | UNIQA | VIG | Wüstenrot | Total | |
|---|---|---|---|---|---|---|---|
| Insurance undertakings | Austria | 846 | 789 | 3,527 | 5,145 | 433 | 10,741 |
| Foreign markets | 487 | 102 | 2,192 | 7,748 | 60 | 10,589 | |
| Reinsurance undertakings | Austria | 0 | 0 | 11 | 0 | 0 | 11 |
| Foreign markets | 14 | 0 | 1,749 | 567 | 0 | 2,330 | |
| Insurance and reinsurance undertakings | 1,347 | 891 | 7,480 | 13,460 | 493 | 23,671 | |
| Source: FMA Solvency II reporting | |||||||
The largest group by far is VIG with a net written premium volume of 13,459.8 million EUR. UNIQA ranks second with net written premiums of 7,480.48 million EUR, however, more than 1,749 million EUR originate from its group’s internal reinsurance company UNIQA Re (based in Switzerland). GRAWE generated net written premiums of 1,346.72 million EUR. Merkur and Wüstenrot are comparatively smaller insurance groups with a net written premium volume of 891.01 million EUR and 493.28 million EUR, respectively. The three larger groups generate a significant share of their net written premiums outside Austria. This is not the case for Merkur and Wüstenrot.
Data on profitability (taken out of the quantitative reporting template S.32.01.04.01), are aggregated numbers, so they have not been adjusted for dividends, intra-group transactions or other consolidation effects. These numbers are based on local GAAP, and thus cannot be compared to consolidated IFRS statements.
Please note that the indicator “Profit-Premium-Margin” (PPM) approximates “Return on Premiums”, based on the relation between profit and net written premiums.
In total, Austrian insurance groups achieved an aggregated net profit of 2,345 million EUR in 2024. This means a change of 8% compared to the previous year.
Significant differences in the profit-premium-margins (PPM) can be observed between the foreign and the domestic business of the insurance groups. For UNIQA and GRAWE, the foreign PPM exceeds the domestic PPM by 6.54 and 13.18 percentage points, respectively. For VIG, the PPM of foreign business was below that of domestic business in 2024. Merkur and Wüstenrot recorded a negative PPM in foreign businesses.
Except for GRAWE, all Austrian insurance groups make use of LTG and/or transitional measures for the calculation of technical provisions in life insurance (UNIQA, VIG, Wüstenrot). For Merkur, such measures applied by a subsidiary have been taken into consideration at group level since Q2/2022. Moreover, UNIQA and VIG make use of partial internal models.
At year-end 2024, solvency ratios of all Austrian insurance groups were above 200%. Merkur and UNIQA showed an increase in SCR ratios compared to the previous year. The SCR ratios of VIG, Wüstenrot and GRAWE declined, however, from a relatively high level.
In the following part of the report, data, figures and ratios are provided for each of the five Austrian groups separately (in alphabetical order).
GRAWE Group is focusing on Southeastern Europe but also obtains subsidiaries in Eastern Europe. The foreign premium share of GRAWE Group is 37.18%.
Besides Austria, the top 3 most important countries in terms of premiums are Romania, followed by Slovenia and Croatia.
Total own funds eligible to cover the Solvency Capital Requirement (SCR) include own funds of other financial sectors.
Total own funds of GRAWE Group eligible to cover the group SCR amounted to 3.9e+09 million in 2024. About 98.6% of total eligible own funds classify as Tier 1 capital (Tier 1-restricted and Tier 1-unrestricted). 1.4% are classified as Tier 2 and 0.0% as Tier 3 capital. In the case of GRAWE Group’s Tier 2 capital, this is supplementary capital of the banking group that is counted as eligible own funds from other financial sectors. The own funds of GRAWE insurance group, therefore, consist exclusively of Tier 1 capital.
The Solvency Capital Requirement of GRAWE Group was 1.5e+09 million EUR. In relation to the eligible own funds, this results in a Group Solvency Ratio of 252.4%.
The PPM of GRAWE Group for foreign business was 21.56% compared to 8.38% for domestic business in 2024.
Merkur Group is focusing on Southeastern Europe, with subsidiaries in Croatia, Serbia and Slovenia. The foreign premium share of Merkur Group is 11.45%.
Total own funds eligible to cover the Solvency Capital Requirement (SCR) include own funds of other financial sectors.
Total own funds of Merkur Group eligible to cover the group SCR amounted to 1,088 million in 2024. 0.0% of total eligible own funds classify as Tier 1 capital (Tier 1-restricted and Tier 1-unrestricted). 0.0% are classified as Tier 2 and 0.0% as Tier 3 capital.
The Solvency Capital Requirement of Merkur Group was 448 million EUR. In relation to the eligible own funds, this results in a Group Solvency Ratio of 242.8%.
The PPM of Merkur Group for foreign business was -2.23% compared to 1.18% for domestic business in 2024.
UNIQA Group generates business in all CESEE segments, but Central Europe is its dominant geographical focus. In Western Europe, it obtains one reinsurance company in Switzerland and one insurance company in Liechtenstein. The foreign premium share of Uniqa Group is 52.7%.
Besides Austria, the top 3 most important countries in terms of premiums are Switzerland, followed by Poland and Czechia.
UNIQA Group closed the sale of its participation in SIGAL UNIQA Group AUSTRIA Sh.A., Albania, and its subsidiaries per 17th June 2025, which led to a market exit of UNIQA from Albania, North Macedonia and Kosovo.
Total own funds eligible to cover the group SCR amounted to 6,211 million in 2024. About 85.9% of total eligible own funds classify as Tier 1 capital (Tier 1-restricted and Tier 1-unrestricted). 13.9% are classified as Tier 2 and 0.2% as Tier 3 capital.
The Solvency Capital Requirement of UNIQA Group was 2,350 million EUR. In relation to the eligible own funds, this results in a Group Solvency Ratio of 264.3%.
The PPM of UNIQA Group for foreign business was 10.09% compared to 3.56% for domestic business in 2024.
VIG is the biggest Austrian insurance group and generates business in all geographical segments in CESEE, as well as in Germany and Liechtenstein. The foreign premium share of VIG is 61.77%.
Besides Austria, the top 3 most important countries in terms of premiums are Czechia, followed by Poland and Romania.
Total own funds eligible to cover the group SCR amounted to 10,401 million in 2024. About 87.8% of total eligible own funds classify as Tier 1 capital (Tier 1-restricted and Tier 1-unrestricted). 11.2% are classified as Tier 2 and 1.0% as Tier 3 capital.
The Solvency Capital Requirement of VIG was 3,989 million EUR. In relation to the eligible own funds, this results in a Group Solvency Ratio of 260.7%.
The PPM of VIG for foreign business was 10.28% compared to 14.19% for domestic business in 2024.
The foreign insurance business of Wüstenrot insurance group entirely relies on its subsidiary in Slovakia. The foreign premium share of Wüstenrot Group is 12.17%.
Total own funds eligible to cover the Solvency Capital Requirement (SCR) include own funds of other financial sectors.
Total own funds of Wüstenrot Group eligible to cover the group SCR amounted to 1,183 million in 2024. About 93.1% of total eligible own funds classify as Tier 1 capital (Tier 1-restricted and Tier 1-unrestricted). 6.8% are classified as Tier 2 and 0.1% as Tier 3 capital.
The Solvency Capital Requirement of Wüstenrot Group was 354 million EUR. In relation to the eligible own funds, this results in a Group Solvency Ratio of 334.0%.
The PPM of Wüstenrot Group for foreign business was -7.83% compared to 12.88% for domestic business in 2024.