R+V: Strategic realignment after record result - focus on regaining market share

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The cooperative insurance group is implementing comprehensive structural reforms to diversify risk and optimize sales, while formulating ambitious growth targets up to 2030.

Governance reform as a catalyst for growth

R+V Versicherung has initiated a far-reaching reorganization of its management structure. With the creation of two new departments - "Operations and IT" under the leadership of former composite board member Klaus Endres and "Finance and Risk Management" under the leadership of Dragica Mischler, the former head of Örag - the DZ Bank subsidiary is aiming to deepen its customer focus while simultaneously optimizing its risk management. The new units will commence operations on April 1, 2025.

Quantified growth ambitions

R+V has defined specific growth targets as part of its "Next Level" strategy: Group profit is to increase to at least 1.5 billion euros by 2030 (2024: 1.3 billion euros), while premium income is to grow from the current 20.9 billion euros to at least 25 billion euros over the same period. In particular, the Wiesbaden-based insurer is aiming to exploit the market potential in the SME segment more intensively and to make more effective use of the cooperative banks' sales structure.

Performance analysis by division

The divisional performance in 2024 shows a mixed picture: While premium income in life insurance rose only moderately by 0.4 percent to 7.6 billion euros and the market share fell to 8 percent, the property and casualty business recorded growth of 5.2 percent to 7.5 billion euros. Health insurance increased by 4.7% to just under one billion euros.

Motor vehicle insurance as a strategic challenge

As the third-largest motor insurer after HUK-Coburg and Allianz, R+V was able to improve its combined ratio in this segment from 107% to 103%, but still remains in deficit territory. The aim is to return to profitability (combined ratio below 100 percent) by 2025. The persistently weak margins led to a net loss of around 70,000 customers across all segments in 2024.

Earnings structure and capital investment strategy

The investment result rose significantly by 70% to EUR 5.9 billion and made a major contribution to the IFRS record result of EUR 1.3 billion. Under HGB, profit fell by EUR 80 million to EUR 115 million, primarily due to higher allocations to the equalization reserve - an indicator of more conservative risk provisioning.

The first two months of 2025 signal a continuation of the growth trend with a 9% increase in premiums compared to the same period last year, driven by the life insurance business.

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