Key Financial Highlights of 2024

Wiener Städtische Versicherung AG experienced ample growth in 2024, marked by a significant increase in both premium volume and insurance benefits paid out. The insurer’s total premium volume rose by approximately six percent to €3.60 billion. However, this growth was accompanied by a nearly nine percent surge in insurance benefits, reaching €3.28 billion. this increase was largely fueled by severe storm damage and rising costs in car repairs and healthcare.

Premium Growth across All Sectors

The company reported a healthy 5.9 percent increase in overall premium income. A closer look reveals varied growth rates across different insurance sectors:

• Damage/Accident Insurance: Experienced a robust 7.6 percent increase, reaching €1.86 billion.
• Health Insurance: Showed the strongest growth at 9.9 percent, totaling €542.1 million.
• Life Insurance: Saw a more modest increase of 1.75 percent, reaching €1.20 billion, with ongoing premiums accounting for €1.08 billion (+1.5 percent).

The rising Tide of Insurance Claims

While premium revenues increased, the cost of insurance claims rose even more sharply. Total insurance benefits paid out amounted to €3.28 billion, an 8.7 percent increase compared to the previous year.

Health Insurance Claims Soar

Health insurance claims saw a notable increase, reaching €441.55 million, significantly higher than the €396.70 million recorded in 2023. This surge is attributed to rising hospital costs and increased utilization of benefits by customers. According to recent data from the Austrian Federal Ministry of Health, hospital costs have been steadily increasing by an average of 4% annually over the past five years, placing additional strain on insurers.

From today’s viewpoint, it can be assumed that this level of performance will continue to remain high in the future, as demographic change also leads to a higher level of performance in the health sector,

Ralph Müller, General Director, Wiener Städtische Versicherung AG

Storm Damage Drives Up Property Claims

The damage/accident sector experienced a sharp increase in claims, rising from €1.01 billion to €1.30 billion. this was primarily driven by a significant increase in storm-related damage. In 2024, Wiener Städtische recorded 71,000 storm-related claims, totaling €227.0 million in damages – the highest natural catastrophe value in the company’s history, surpassing the previous record of €200.0 million in 2021. The combined ratio remained solid at 94.5 percent (2023: 92.5 percent).

Recent studies by the austrian Institute for climate and Environment highlight a concerning trend: the frequency and intensity of severe weather events are increasing across Austria. This trend is expected to continue, placing further pressure on insurance companies and potentially leading to higher premiums for consumers.

The insurer’s statistics underscore the escalating impact of storms:

If the average annual damage to Vienna’s city from 2010 to 2019 was around 70 million euros,these have more than doubled to 155 million euros in the past five years,

wiener Städtische Versicherung AG

General Director Müller emphasizes the urgent need for action:

great need for action in order to be able to cushion the effects of storm damage better in the future.A bundle of measures, namely comprehensive prevention measures and strict development banks in flood areas are required.

Ralph Müller, General Director, Wiener Städtische Versicherung AG

Financial Performance and outlook

Despite the increase in claims, Wiener Städtische reported positive financial results. Expenses for the insurance company amounted to €760.22 million, compared to €705.88 million in 2023. The company’s financial result increased from €488.40 million to €531.96 million.

The result of ordinary business activities (EGT) grew by 22.8 percent to €221.90 million, and the annual surplus increased by 33.7 percent to €203.41 million.

Positive Start to 2025

Wiener Städtische reports a strong start to 2025, with premium growth in all divisions, particularly in health and property insurance.

Despite the increasing uncertainties, we can be very satisfied with the start of the year.I continue to expect a stable development for the overall year,

Ralph Müller, General Director, Wiener Städtische Versicherung AG

Additional Resources

The Wiener Städtische 2024 annual report is available for download on their website.