Extended CEE
The reportable segment Extended CEE includes the countries of Albania incl. Kosovo, Baltic states, Bosnia-Herzegovina, Bulgaria, Croatia, Hungary, Moldova, North Macedonia, Romania, Serbia, Slovakia and Ukraine.
Albania incl. Kosovo
VIG Insurance Group operates in the Albanian insurance market with Sigma Interalbanian and Intersig. It ranked second in the market with a market share of 19.6% in the first nine month of 2023. Via a branch Sigma Interalbanian is also represented in Kosovo where it ranked sixth with a market share of 8.7% in the 1st to 3rd quarter of 2023.
Baltic states
VIG insurance companies are represented in all three Baltic states. Compensa Life has its headquarters in Estonia and is also represented in Latvia and Lithuania via branch offices. BTA Baltic operates in Latvia and is active in Estonia and Lithuania with branches. Also, Compensa Non-Life, which was merged with Seesam in 2020, is active in Lithuania. It maintains branches in Latvia and Estonia.
VIG insurance companies are market leader in the Baltic states with a market share of 25.9% in the 1st to 3rd quarter 2023. They also hold first place in the non-life insurance and second place in life insurance.
Bosnia-Herzegovina
VIG Insurance Group is represented in the Serbian Republic of Srpska of Bosnia-Herzegovina by Wiener Osiguranje with headquarters in Banja Luka and by Vienna Osiguranje with headquarters in Sarajevo. The VIG insurance companies were in fifth place based on a market share of 9.0% according to the data of the 1st to 3rd quarter 2023.
Bulgaria
On the Bulgarian insurance market VIG is represented by Bulstrad Life and Bulstrad Non-Life. Together they held a market share of 13.3% in the 1st to 3rd quarter 2023. Thus, VIG insurance companies were in third place in Bulgaria. In the non-life insurance sector they ranked third in the market and in life insurance they are in second place. In addition, the pension fund PAC Doverie belongs to VIG Insurance Group.
Croatia
In Croatia the VIG insurance company Wiener Osiguranje is active. A market share of 8.0% in the 1st to 3rd quarter 2023 puts it in fourth place on the Croatian insurance market. It is in fourth place in the non-life insurance sector and ranks first in the life insurance sector.
Moldova
The VIG insurance company Donaris operates in Moldova. With a market share of 12.9% in the 1st to 4th quarter 2022 it is in fifth place on the market. In the non-life insurance sector, it is in fourth place.
North Macedonia
The VIG insurance companies Makedonija Osiguruvanje, Winner Non-Life and Winner Life together held a market share of 19.6% in the 1st to 3rd quarter 2023. This makes the VIG companies the leading insurance group in North Macedonia.
They are the number one in the non-life insurance market and number two in the life insurance market. In order to better combine the strength of both companies on the one hand and to achieve the economies of scale on the other, it is planned to merge the non-life insurance companies Winner Non-Life and Makedonija Osiguruvanje. The merger is subject to regulatory and corporate law approvals.
Romania
There are three VIG insurance companies operating in the Romanian insurance market, the non-life insurer Omniasig, the composite insurer Asirom and the life insurer BCR Life. With a market share of 24.1% the three VIG insurance companies are the market leader in Romania. In the 1st to 3rd quarter 2023 they are in second place in non-life insurance as well as in life insurance.
In addition, the closing of the Romanian Aegon-companies was completed in May 2023. Both the acquired pension fund Carpathia Pensil (formerly Aegon Pensii) and the branch of the Polish Aegon Life (AEGON Towarzystwo Ubezpieczen na Zycie S.A. Varsovia Sucursa) were not included in the consolidation in 2023.
Serbia
In Serbia the VIG Insurance Group is active with the Wiener Städtische Osiguranje. With a market share of 10.6% it occupied fourth place in the 1st to 3rd quarter 2023. In the non-life insurance sector it is in fifth place, in the life insurance sector it ranks second.
Slovakia
Two VIG insurance companies, Kooperativa and Komunálna, are represented in the Slovakian insurance market. With a market share of 28.9% in the 1st to 3rd quarter 2023 they are in first place as the largest insurance group in Slovakia. In the non-life insurance sector they are in second place, in the life insurance sector they are in first place. The Slovakian pension fund 365.life acquired via Kooperativa at the end of 2022 is assigned to the segment Group Functions.
Ukraine
The VIG non-life insurers Kniazha and USG as well as the life insurer Kniazha Life are active in Ukraine. With a share of 11.2% in the 1st to 3rd quarter 2023 the VIG insurance companies are in second place in the overall market. In the non-life insurance sector VIG is in second place in Ukraine, in the life insurance sector it is in sixth place.
Hungary
In Hungary VIG operates with Union Biztosító and Alfa Biztosító (formerly Aegon Biztosító). According to the data published by the Hungarian Association MABISZ from the 1st to 4th quarter 2023, the VIG insurance companies are in first place in the market with a market share of 19.6%. They are in first place both in non-life and life insurance.
VIG became the market leader in Hungary through the acquisition of the Hungarian companies of the Aegon Group in March 2022. The Hungarian state took a 45% stake in the holding company that was subsequently formed as a steering unit of the Hungarian business. On 30 November 2023, VIG increased its share of the Hungarian business from 55 to 90%. The state holding Corvinus continues to hold 10% and this underscores the commitment for a joint expansion of the insurance industry in Hungary.
Financial performance indicators in the reportable segment Extended CEE
Insurance service revenue by line of business
Insurance service revenue
The insurance service revenue in 2023 amounted to EUR 3,148.1 million and were thus 17.7% the previous year’s figure (2022: EUR 2,673.6 million). The increase resulted primarily from the good development in the Baltic states, Bulgaria, Slovakia, Hungary and Romania. The motor own damage, other property and casualty and health lines of business especially achieved good growth.
Result before taxes
The result before taxes in the segment Extended CEE in 2023 was EUR 101.0 million (2022 adjusted: EUR 48.4 million). The clear increase year-on-year was primarily attributable to Hungary due to lower amortisation and impairment of purchased customer bases and an improved net combined ratio. Moreover, the total capital investment result developed very positively in Slovakia and Bulgaria. This is primarily caused by the difficult market situation in 2022 and driven by assets recognised through profit and loss in accordance with IFRS 9.
The result before taxes adjusted for the impairments of goodwill in the Baltic states in the amount of EUR 75.5 million and other intangible assets in the amount of EUR 6.3 million resulted in a business operating result in the segment Extended CEE of EUR 182.8 million in 2023 (2022 adjusted: EUR 93.3 million).
Net Combined Ratio
In 2023 the net combined ratio in the segment Extended CEE improved to 95.2% (2022 adjusted: 95.4%).