The Austria Financial Market Authority published its 2025 State of the Austrian Insurance Industry report, assessing sector developments, challenges and risks and providing an overview of stability and resilience. Using data as of 30 June 2025, the report portrays insurers as well capitalised, with a median solvency ratio of 264% and assets under management of EUR 130.2 billion, up 3.7% year on year. The FMA highlights a marked shift in insurers’ investment mix, with the share of government and corporate bonds falling to 34% in 2025 from 46% in 2019, while illiquid investments such as loans, real estate and participating interests rose to 41% from 28% over the same period. It also reports that insurers’ interdependency with the banking sector has declined by around one-third over the past decade, with direct portfolio bank exposure at EUR 17.2 billion (EUR 24.6 billion in 2016), around half of which (EUR 8.5 billion) is to Austrian banks, alongside heterogeneous exposure across undertakings.
Austria Financial Market Authority 2025-11-13
Austria Financial Market Authority report shows Austrian insurers’ median solvency ratio at 264% and rising illiquid investments
The Austria Financial Market Authority's 2025 report on the Austrian insurance industry highlights strong capitalisation with a median solvency ratio of 264% and assets under management of EUR 130.2 billion. The report notes a shift in investment strategies, with a decrease in government and corporate bonds to 34% and an increase in illiquid investments to 41%. Insurers' interdependency with the banking sector has also decreased by about one-third over the past decade.