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Vienna Insurance Group (VIG) presented its half-year 2025 results on August 27, 2025, revealing strong financial performance across its Central and Eastern European operations. The company reported significant profit growth, improved operational efficiency, and continued expansion through strategic acquisitions.
H1 2025 Performance Highlights
VIG reported a 10.5% increase in profit before taxes to €531.4 million for the first half of 2025, compared to €481.0 million in the same period last year. This performance puts the company on track to reach the upper end of its full-year target range of €950-1,000 million.
Insurance service revenue grew by 8.1% to €6,396.9 million, while gross written premiums increased by 8.7% to €8,569.5 million. The company’s P&C net combined ratio improved by 1.4 percentage points to 91.9%, primarily due to lower weather-related claims of approximately €73 million in the first half of 2025.
As shown in the following comprehensive overview of VIG’s key performance metrics:
The company’s earnings per share rose by 10% to €5.92 (annualized based on half-year results), while operating return on equity improved significantly by 2.7 percentage points to 18.9%. These results demonstrate VIG’s ability to maintain strong growth momentum following its robust first quarter, when it reported an 8.1% increase in insurance service revenue and a 7.5% rise in profit before tax.
The detailed income statement reveals a 19% improvement in insurance service result and a substantial 32.5% increase in total capital investment result:
Segment Performance Analysis
VIG’s performance was strong across most of its geographic segments, with particularly impressive results in Poland, where profit before taxes surged by 51.3% to €62.6 million. The Czech Republic also delivered solid growth with an 18.4% increase in profit before taxes to €115.1 million.
The Special Markets segment, which includes Germany, Georgia, Liechtenstein, and Türkiye, showed the highest insurance service revenue growth at 29.7%, primarily driven by dynamic business development in Türkiye.
The following chart illustrates insurance service revenue growth across VIG’s key segments:
However, the Extended CEE segment, which includes operations in the Balkans, Baltic states, and Eastern Europe, experienced a 19.9% decline in profit before taxes to €98.2 million, primarily due to goodwill impairment in Hungary.
The segment profit breakdown shows the varied performance across regions:
A key driver of VIG’s improved profitability was the enhanced P&C net combined ratio, which measures insurance efficiency. The ratio improved across most segments, with particularly strong gains in Poland:
Investment and Capital Position
VIG maintained a strong investment portfolio with 74% allocated to bonds, 9.6% to property, and 9.2% to equities. The company’s total capital investment result increased by 32.5% to €295.6 million, supported by higher interest revenue using the effective interest rate method.
The company’s solvency ratio stood at a robust 278% with transitional measures (259% without), significantly above regulatory requirements and providing ample capacity for continued growth and acquisitions.
The following comprehensive segment overview table provides a detailed breakdown of performance across all markets:
Strategic Initiatives and Outlook
VIG continues to strengthen its position as the leading insurance group in Central and Eastern Europe through strategic acquisitions. The company has entered into exclusive due diligence regarding the potential acquisition of a controlling stake of over 50% in NÜRNBERGER and has won a public auction for acquiring an 80% stake in Moldasig S.A.
The company’s extensive network across Central and Eastern Europe provides a strong foundation for continued growth:
"We feel to be currently in the right area of Europe," Deputy CEO Peter Höfinger had stated during the Q1 earnings call, a sentiment that appears validated by the strong half-year results. CFO Liane Hirner had previously noted that "a smoothly increasing interest rate curve is positive," which has contributed to the improved investment results in the first half of 2025.
VIG is currently developing a new three-year strategy program for 2026-28, which is expected to build on the company’s successful geographic diversification and market leadership in the region.
The company’s stock has performed well, trading near its 52-week high of €195, reflecting investor confidence in VIG’s strategic direction and financial health. With half-year results exceeding market expectations and continued expansion into new markets, VIG appears well-positioned to maintain its growth trajectory through the remainder of 2025.
Full presentation:
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