Business year 2023:

• Chief Executive Officer Thomas Voigt: “VHV Group holds a more than firm position and recorded an even stronger balance than the year before.”
• Premium income up by 6.3 percent to about 4.0 bn Euro / Group result increased by 17.8 percent to 214.5 m Euro
• Proportion of international business of total volume increased to 12 percent
• VHV Allgemeine: Revenue and number of contracts increased / stronger premium growth in the commercial sector
• Hannoversche Lebensversicherung successfully launched occupational disability in the brokerage market

VHV again saw solid growth in 2023 despite extensive and challenging market impacts. Written premiums rose by 6.3 percent to 3,973.9 m Euro (3,738.5 m Euro). This plus is based on both higher numbers of contracts (plus 2.0 percent) and some necessary premium adjustments. The group result grew by 17.8 percent to 214.5 m Euro (182.1 m Euro).

Chief Executive Officer Thomas Voigt said: “We are looking back at a very challenging 2023. However, despite all the challenges, we were able to achieve our ambitious goals, and we are pleased with the results. VHV Group holds a more than firm position and recorded an even stronger balance than the year before. We have made further investments in digitalisation, successfully launched new products in the market, and implemented another strategic focus area in the international sector by building VHV International SE. This allowed us to set a course for the future in important aspects, and at the same time expand our strong foundations, borne by our company’s long-term orientation. I am very pleased that our core business areas motor insurance, construction and biometrics developed positively, despite all external strains. We also used the year 2023 to further align our successful strategy with our targets”.

Premium income in international business came to about 467 m Euro, an increase of 35 percent. One of the reasons for this rise is the acquisition and integration of the Italian subsidiary VHV Assicurazioni (formerly Val Piave). In addition, VHV Allgemeine Sigorta, Istanbul, was completely integrated into the group balance for the first time in 2023. The proportion of international business of the total volume of the VHV Group has grown to nearly 12 percent. To further support this business area and continue to develop the VHV Group as an international construction insurer, we founded VHV International SE last year. The aim of this company is to bundle the earlier international activities in Türkiye, Austria, Italy and France, and to further strengthen this part of our business.

Gross claims expenditures for the business year came to 3,345.4 m Euro. This represents a plus of 13.3 percent. The increase is essentially due to our growth, which produces more claims and thus more expenditures. This past year, the rise in Germany was a result of higher costs due to inflation, especially in the motor sector. Internationally, the increase was primarily due to the severe earthquake in Türkiye, where the VHV Group with its reinsurance business stood by its customers during this crucial period. In Austria and Italy, the known natural disaster events also affected the balance. Operating expenses of the group increased by 11.5 percent to 757.2 m Euro.

The investment portfolio grew slightly by 0.2 percent to 17.39 bn Euro (17.36 bn Euro). The investment result dropped by 5.3 percent to 530.5 m Euro (560.2 m Euro) due to low current income. In total, we were able to increase the liable equity including equalisation reserves by 3.4 percent to 3,563.9 m Euro (3,447.7 m Euro). With a solvency ratio of 293.1 percent at the end of the year, VHV Group is one of a small group of best-financed insurers in Germany. As mutual insurance company with a long-term company vision, the VHV Group was again rated “A+ with a stable outlook” by Standard & Poor’s .

The group-wide number of employees again increased by the end of the year to 4,320 (4,033), a plus of 7.1 percent. Due to the demographic factor, but also because of our growth, the VHV Group continues to hire more staff. Thanks to its job security and modern workplace options, the company is one of the most attractive employers in the industry.

VHV Allgemeine: Revenue and number of contracts increased / stronger premium growth in the commercial sector

“Thanks to its long tradition, its high performance and its unparalleled network, VHV Allgemeine is the leading insurer in the construction industry. The company was able to once again prove its extensive competence in this market and further expand its business volume. Infrastructure projects in particular contributed to this growth,” explains Dr Sebastian Reddemann, Chief Executive Officer and Board Spokesman of VHV Allgemeine Versicherung. “For our long-term success, it remains crucial to be aware of the current challenges, in particular the massive increase in building damage due to extreme weather events. Insurance can be part of the solution – but the real priority should be avoiding damage. In the building industry, we also urgently need more flexibility and a legal framework for standards adapted to construction projects. This would also provide more economic leeway for climate-resilient construction”, Reddemann continues.

The total written premiums of VHV Allgemeine Versicherung AG increased to 2,688.5 m Euro (2,509.6 m Euro), a plus of 7.1 percent. The increased volume is due to necessary premium adjustments as well as sales performance: The number of insurance contracts rose by 0.6 percent to 10,947,600 (10,885,400).

In the motor sector, written premiums increased by 3.7 percent to 1,589.9 m Euro (1,533.8 m Euro). The number of contracts climbed by 0.7 percent to 8,023,600 contracts (7,969,800 contracts). The combined ratio in motor insurance increased due to higher prices for parts, increased wage expenditures for vehicle repairs, higher rental car prices and increased health care costs in casualty cases by 7.1 percentage points to 106.2 percent (99.1 percent), which was distinctly below the market average of 111.0 percent. Additional active claims management is to further counteract the cost increase.

Overall, VHV Allgemeine disbursed more benefits to its customers: Gross expenditures for insurance claims increased by 9.9 percent to 2,032.0 m Euro (1,848.7 m Euro). The rise is due to the increased costs in the motor vehicle sector and higher costs of construction and building materials.

The cost rate climbed 0.5 percentage points to 22.6 percent. The combined ratio was 99.1 percent (96.4 percent). The actuarial result decreased by only about one quarter to 105.7 m Euro (144.1 m Euro) despite the significant increase in the combined ratio for motor insurance.

The investment portfolio grew by 3.0 percent to 6,308.7 m Euro at year’s end. The net investment result climbed significantly by 17.9 percent to 148.8 m Euro (126.2 m Euro); net interest was 2.4 percent, up 0.3 percentage points.

The annual surplus reached 232.1 m Euro (226.8 m Euro) for a plus of 2.3 percent, after having decreased the previous year.

Hannoversche Lebensversicherung successfully launched occupational disability insurance in the brokerage market

In the past year, the biometrics specialist achieved written premiums including contributions from provisions for premium refunds on existing contracts in the amount of 1,042.1 m Euro (1,053.2 m Euro). Compared to the market, which shows a drop of 3.3 percent in this area, Hannoversche once again successfully defended its position. The number of insurance contracts increased – counter to the negative market trend of minus 0.5 percent – by 1.1 percent to 1,126,600 contracts (1,113.900 contracts).

The Chief Executive Officer and Board Spokesman of Hannoversche Lebensversicherung, Frank Hilbert, said: “In particular, we would like to highlight the new business contribution in separate disability insurance: It leaped by 81 percent to 11,859,000 Euro. These figures show that Hannoversche Lebensversicherung is consistently forging ahead on its path from direct insurer focused on term life insurance toward a biometrics multi-channel insurer, and that the company was able to successfully gain a foothold in the brokerage market with its new disability insurance and its service.”

Overall, new business premiums decreased somewhat, as was expected, from 292.9 m Euro to 285.3 m Euro (minus 2.6 percent). The market experienced a double-digit decline of 10.1 percent compared to the previous year. At Hannoversche, about 55.0 m Euro (57.7 m Euro) came from current premiums and 230.4 m Euro (235.2 m Euro) from one-off premiums. Although the latter dropped by 2.0 percent for the biometrics specialist, they performed significantly above market level, which was minus 13.2 percent.

In 2023, Hannoversche provided a large amount of benefits to its customers: In total, around 1.39 bn Euro were disbursed as insurance benefits and profit shares – that is 3.5 percent more than the previous year. The administrative cost rate remained nearly stable at 1.29 percent (1.28 percent) and is still one of the lowest in the market; the acquisition cost rate increased by 0.5 percentage points to 5.3 percent.

The investment portfolio decreased to 9,934.3 m Euro (10,261.8 m Euro) by the end of the year, as expected. The net investment return came to 212.7 m Euro (247.6 m Euro) as of 31. December, exceeding expectations. Net interest was at 2.1 percent.

The annual surplus was increased by 17.8 percent to 52.2 m Euro (44.3 m Euro).

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