R+V half-year results: signs point to growth in 2024
Wiesbaden (ots)
R+V Versicherung achieved an increase in premium income of around one percent in the first half of 2024. Growth at market level is expected for the year as a whole. On the claims side, natural hazards amounted to 200 million euros in the first six months.
In the first six months of the current year, the R+V Group increased its sales in German primary insurance to EUR 9.3 billion. While premiums as of June 2023 were still declining compared to the previous year, R+V recorded a positive development again this year, with +0.9 percent compared to the corresponding period last year. Even though the environment continues to be characterized by great uncertainty, R+V CEO Norbert Rollinger is cautiously optimistic for 2024 as a whole: “In view of the emerging economic recovery and more favorable market conditions, we expect to return to our usual growth path in life insurance as well. On this basis, we expect growth across all lines of business to be roughly at market level in 2024.” The German Insurance Association (GDV) expects premiums to increase by 2.8 percent for the current year.
Significant increase in demand for fund products
The reason for the positive premium balance after the first half of 2024: In life and pension insurance, the decline in premiums has slowed significantly compared to the previous year. Sales reached 3.8 billion euros, minus 4.7 percent compared to the previous year. Regular premiums increased slightly by 0.5 percent to 2.3 billion euros, while single premiums followed the market-wide downward trend and fell by 11.8 percent to 1.5 billion euros. In view of the strengthening capital markets, the unit-linked business developed particularly positively, increasing by more than 30 percent to 925 million euros. Company pension schemes once again accounted for the largest share of the total premium volume in personal insurance at 1.2 billion euros (13.7 percent below the previous year).
Opportunity-oriented and biometric products remain key growth areas for R+V in the private pension business. The product range in the also future-oriented company pension scheme will also be expanded to include a new opportunity-oriented product in September 2024.
Another strong increase in health insurance
R+V Health Insurance continued its growth path in the first half of 2024. Premiums increased by 4.6 percent to 487 million euros. Both full and supplementary insurance contributed to this. All business areas recorded growth equally. Company health insurance also continued to grow significantly. The number of customers increased by 6.7 percent to a total of around 1.7 million insured persons.
Property/casualty insurance in all lines of business in plus
In property and casualty insurance, R+V increased its turnover by 5.2 percent to around 5.0 billion euros. In its largest division, motor insurance, premiums rose by 4.1 percent to 2.1 billion euros. With around five million insured vehicles, R+V is the third-largest motor insurer on the German market. One challenge remains the sharp rise in repair costs due to inflation, which is putting a strain on the entire industry.
In the corporate customer business, R+V increased sales by 6.4 percent to 1.6 billion euros.
200 million euros in damage caused by natural hazards
The storms in the first six months of the year have so far resulted in claims expenses of around 200 million euros for R+V this year. The loss volume corresponds to that as of June 2022. 2021 remains the most expensive year to date in terms of natural hazards. These cost R+V more than one billion euros, particularly due to the flood disaster in the Ahr Valley in July 2021.
In view of the increasing risks posed by natural hazards, natural hazard insurance is of particular importance. The Wiesbaden-based insurer has been using the opt-out model for building insurance and home contents insurance since 2019. Customers must consciously opt out of protection against natural hazards if they do not want it. R+V policyholders already have an above-average rate of coverage against natural hazards at 70 percent, and in new business this figure is almost 80 percent. The industry-wide average is more than 50 percent.
R+V’s premium income from residential building insurance increased by 8.7 percent to 391 million euros in the first half of 2024.