VGH Group announces premium increases for motor vehicle insurance

VGH Group announces premium increases for motor vehicle insurance

VGH Group customers must prepare for increases in premiums for motor vehicle insurance. Last year, the insurer recorded a gross underwriting loss of around 65 million euros in this area, and a deficit is also expected for 2024. This increase is due to increased costs for auto parts and repairs as well as an increase in claims. The entire industry recently recorded billions in losses in car insurance. Nevertheless, the VGH insurance companies as a whole were able to increase their gross surpluses by 17 percent to 187 million euros.

The VGH has already increased the price of motor vehicle insurance to compensate for this increase in costs. For private customer business, VGH reported an average premium increase of around 8 percent compared to the previous year. The combined ratio in the motor vehicle insurance business was around 115 percent, which means that for every euro collected, 1.15 euros had to be spent.

As a result of the floods in Lower Saxony and Bremen in December, VGH incurred damages of around 25 million euros. Nevertheless, the damage was contained thanks to the successful efforts of the fire brigade and many helpers. Overall, contrary to the industry trend, the landscape fire fund had to pay less for damages than in the previous year.

The premium income of VGH insurance increased by 2.9 percent to 1.92 billion euros in 2023. Growth was particularly successful in the fire and property insurance divisions of the Brandkasse, which recorded increases of up to 18.6 percent. Nevertheless, the Provinzial Lebensversicherung Hannover had to record a decline in premium income of more than 9 percent to 467 million euros, while the Provinzial Krankenversicherung Hannover recorded an increase in premiums of around 8 percent to 105 million euros. In total, the VGH Group employs around 4,400 people, including 1,850 in Hanover.