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• Gross Written Premium: EUR15.2 billion, more than 10% increase from the previous year.

• Insurance Service Revenue: Increased by 11% to EUR12 billion.

• Profit Before Taxes: Increased by 14.1% to EUR881.8 million.

• P&C Net Combined Ratio: Increased by 0.8 points to 93.4%.

• Earnings Per Share: Increased to EUR4.98.

• Operating Return on Equity: Improved by 1.3 points to 16.4%.

• Dividend Proposal: Increase by 10.7% to EUR1.55 per share, yielding 5.1%.

• Goodwill Impairment: EUR116.3 million in Hungary due to additional insurance tax.

• Tax Ratio: 24.4%, down from 25.4% last year.

• Investment Portfolio: Total investments amounted to EUR36.5 billion, up 3.4%.

• Solvency Ratio: 261% including transitional measures, 238% excluding transitional measures.

• Warning! GuruFocus has detected 8 Warning Signs with DUFRY.

Release Date: March 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Vienna Insurance Group AG (WBO:VIG) reported a strong full-year performance with gross written premiums exceeding EUR 15 billion, marking a more than 10% increase from the previous year.

• Insurance service revenue increased by 11% to EUR 12 billion, driven primarily by the P&C business.

• Profit before taxes rose by 14.1% to EUR 881.8 million, despite challenges such as the storm Boris.

• The company proposed a 10.7% increase in dividends to EUR 1.55 per share, offering an attractive dividend yield of 5.1%.

• The company's diversification strategy across markets and business lines has provided a stable basis for future growth, particularly in Central Eastern Europe.

Negative Points

• The P&C net combined ratio increased by 0.8 points to 93.4%, influenced by weather-related claims from storm Boris.

• A goodwill impairment of EUR 116.3 million was recorded in Hungary due to the prolonged additional insurance tax imposed by the Hungarian government.

• The company's solvency ratio slightly decreased from 269% to 261% at year-end 2024, although it remains above the target range.

• The life business with profit participation did not experience double-digit growth, unlike other business lines.

• The geopolitical and macroeconomic environment remains challenging, posing potential risks to future performance.

Q & A Highlights

Q: Can you elaborate on the assumptions behind your 2025 guidance, particularly regarding revenue growth and P&C combined ratios? Also, with inflation moderating, should we expect a significant decline from the double-digit growth seen in recent years? A: Hartwig Loger, CEO, explained that the strategic focus remains on Central Eastern Europe, with potential growth in Poland and Slovenia. Peter Hofinger, Deputy Director General, added that despite inflationary benefits in the past, the company expects continued growth due to increased sums insured, higher investment yields, and GDP growth in Central Eastern Europe. The repatriation of workers to the region is also expected to drive demand for insurance products.