Insurance in Austria Well Positioned

The solvency ratio of the insurance companies in Austria was on average 264 percent as of June 30, significantly above the European average, as indicated in the report published by the FMA on Thursday. The managed assets increased to 130.2 billion euros, which corresponds to an increase of 3.7 percent compared to the previous year.

Insurance Companies in Austria Are Financially Well Positioned

According to the FMA report, the distribution of assets has shifted significantly in recent years. While the share invested in government and corporate bonds decreased from 46 percent (2019) to 34 percent (2025), the share of more illiquid investments such as loans, real estate, and participations increased from 28 percent to 41 percent in the same period - a trend that can also be observed internationally, according to the authority. The growth of investments in private credit and private equity is therefore increasingly coming into the focus of the supervisory authorities.

The interconnection of domestic insurance companies with the banking sector - a potential source of contagion in times of crisis - has decreased by about a third over the past ten years, according to the FMA. As of June 30, 2025, the bank exposure in the direct portfolio amounted to 17.2 billion euros, about half of which is attributable to Austrian banks. However, the interconnection varies greatly depending on the insurance company, the FMA noted.

(APA/Red)

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