Motor vehicle liability: VHV and Baloise lead the way in terms of profitability!

Motor vehicle liability: VHV and Baloise lead the way in terms of profitability!

The current analysis of motor vehicle liability insurance reveals an exciting picture of market participants. According to data from the “Industry Monitor 2024: Motor Insurance” from V.E.R.S. In Leipzig, VHV and Baloise have the lowest combined ratios on a six-year average, each at less than 86 percent. While VHV is at the top with an outstanding rate of 85.3 percent, Baloise was only slightly higher and generated an average profit of around 14 cents per euro of contributions.

There were also several other providers with combined ratios below 90 percent, including Garanta, S-Direkt, Cosmos, ADAC Autoversicherung, Signal Iduna and Gothaer. These figures make it clear that some market participants operate profitably, while others struggle with loss and expense ratios.

Challenges for some providers

From 2018 to 2023, ten of the 50 largest providers of motor vehicle liability insurance found that their expenses for claims and costs exceeded their income. Particularly outstanding in a negative sense was Allianz Direct Versicherungs-AG, which had the worst position with a combined ratio of over 115 percent.

However, some providers were able to stabilize. Cosmos, for example, was once in the red in 2018, but managed to achieve the industry's lowest ratio of 71.9 percent in 2021. Other lucrative providers such as Signal Iduna and Gothaer earned more than ten cents in profit per euro of contributions over the average period.

Market overview and developments

It is noteworthy that VHV, S-Direkt and Garanta were able to reduce the combined claims and expense ratio to below 80 percent in two years of the observation period. In contrast, VHV (94.1%), S-Direkt (98.7%) and Garanta (103.1%) had the worst combined ratios.

In the last year of the reporting period, Cosmos and Baloise in particular stood out as the providers with the lowest combined ratios. The “Industry Monitor 2024” not only offers an insight into the financial health of providers, but also into the challenges that many are faced with.

For those interested, the detailed report, which contains numerous key figures, is available for a fee of 1,487.50 euros. Further information and a deeper analysis can be found on the websites of Insurance Journal as well as in the comprehensive exposé of Industry Monitors be found.