Austrian Insurance Industry Reports Robust Growth and Optimistic Outlook
The Austrian insurance sector is experiencing a period of notable expansion and optimism, driven by strong financial performance and strategic initiatives among leading companies in the industry. Major insurers in Austria are reporting improved earnings, higher premium volumes, and ambitious targets for the coming years, reflecting both domestic market trends and successful growth in Central and Eastern Europe (CEE).
One of Austria's prominent insurance groups has recently announced revised mid-term objectives following a series of favorable quarterly results. The firm has increased its projected annual growth rate for premium income to approximately six percent by 2028, up from the previous target of five percent. Additionally, it expects significant improvements in key financial metrics such as return on equity and the combined ratio over the next three years. For the 2025 fiscal year, the company anticipates reaching the upper end of its pre-tax profit guidance, between 490 and 510 million euros.
These positive developments are attributed to disciplined cost management and substantial growth in the health insurance segment, where the company maintains a leading position in Austria. The insurer is also leveraging accelerating digitalization and dynamic expansion across CEE markets. In this region, the company now serves over 15 million clients, having achieved double-digit premium growth since 2023. Poland, the Czech Republic, and Slovakia currently contribute the largest share to the company's CEE results. Since acquiring the CEE operations of a French insurer in 2020, the group has increased its regional earnings by roughly 60 percent. It is targeting a customer base of 20 million across CEE in the coming years.
Domestically, the insurer is planning to enhance its life insurance offerings, responding to demographic shifts such as an aging population. The company advocates for reforms in the pension system, emphasizing the importance of strengthening the second and third pillars and suggesting a reduction in the insurance tax for life policies to stimulate growth in this segment. A new life insurance product is set to launch next year, aiming to address customer needs more effectively. The insurer acknowledges past shortcomings in retaining clients at the end of contract terms and is focused on developing more attractive short-term options.
Recent financial reports show a 9.2 percent increase in premiums to 6.4 billion euros and a 24.4 percent rise in pre-tax profit to 423 million euros for the first three quarters of the year.
Another leading Austrian insurer, active in more than 30 countries and serving 33 million customers, has also released strong results. Over the first nine months of the year, its pre-tax earnings climbed by 31 percent to 872.8 million euros, while written premiums increased by 8.6 percent to 12.5 billion euros. The company has raised its profit forecast for the current year to between 1.10 and 1.15 billion euros.
In a significant strategic move, the insurer announced the acquisition of a major German insurance firm for up to 1.38 billion euros. This transaction, the largest in the company's history, is designed to lessen its reliance on CEE markets and strengthen its presence in Germany. The German firm reported losses in the previous year, but the Austrian group aims to return the business to profitability. Completion of the acquisition is expected in the second half of 2026.
Both insurance groups have seen substantial gains in their stock prices since the beginning of the year, with one company's shares rising by 56 percent and the other's by 87 percent, reflecting investor confidence in the sector's strategic direction and financial health.