Consistency amid change: VIG Re prepares for renewals

“We’re entering this renewal season with a focus on consistency,” said Tobias Sonndorfer, the incoming chief executive officer of VIG Re, who is taking over from Johannes Martin Hartmann from January 1, 2025.

Reflecting on how the market had evolved in recent months, with natural disasters such as hurricanes Helene and Milton in the US and severe flooding in Central and Eastern Europe (CEE) leaving their mark, Sonndorfer believes the overarching dynamics have remained stable, saying: “The fundamental static of the market hasn’t really changed.”

He pointed out that one of the most significant events in the last few months had been the severe flooding in Austria, Czechia, and Poland. 

“This will certainly have an impact on renewals in the region—the models have been tested,” he noted. 

Despite these recent challenges, VIG Re’s stance remains firm: “Our position remains stable for the upcoming renewal.

“We would like to continue to approach our clients as we have in the past,” Sonndorfer continued, emphasising that consistency would continue to define VIG Re’s market strategy. 

“We want to be a sustainable partner going forward: we would like to grow, but only where it makes sense for us with proper terms and conditions.”

Remaining partner-focused

VIG Re is focused on being a reliable partner to its clients, and Sonndorfer stated: “There’ll be no revelations from us this upcoming renewal: consistency is the magic word.” 

The market, according to him, is shaped by the forces of supply and demand, and VIG Re’s strategy is to ensure its underwriting discipline remains intact while balancing client relationships and market dynamics. 

“We always make sure that the alignment of interests sits well,” he said, highlighting the importance of reinsurance contracts reflecting the intentions of both parties.

VIG Re aims to deepen relationships with its clients in Germany and France while expanding its footprint beyond into Continental Europe, where there are further opportunities for growth. 

“We have, through our headquarters in Prague, and particularly through our offices in Munich and in Paris, a truly continental European reach.

“For us, the idea is to approach a truly continental European renewal,” he said.

Sonndorfer acknowledged the recent flooding in CEE had not impacted VIG Re’s underwriting approach, but he sees this as an opportunity for the market to reassess the effectiveness of preventive investments. 

CEE’s primary exposure is multi-country flooding, so these events have challenged existing reinsurance models, particularly the flood protection measures that many countries had invested in.

Sonndorfer is clear the upcoming renewal will be a crucial moment for the region. “This was a significant event for the whole market, and now is the time to reflect on the extent to which these flood measures have worked: that will help us calibrate our models,” he said.

Floods and other natural catastrophes pose significant challenges, but Sonndorfer remains confident in VIG Re’s ability to adapt, saying: “We will reallocate capital if required.”

He emphasised that VIG Re’s capital allocation approach remained exposure-driven and forward-looking. “We are here as a shock absorber,” he commented. 

“How do we make sure that the industry stays relevant?”

“This is exactly the type of event that an insurer buys reinsurance coverage for.” 

Looking to the future, Sonndorfer stressed that VIG Re’s mission continued to extend beyond immediate financial concerns to the societal role of re/insurance. 

He highlighted the importance of increasing insurance penetration across CEE to protect businesses and individuals from catastrophic events. 

“How do we make sure that the industry stays relevant for the people in case such devastating events happen?” he asked. 

For him, the key issue is ensuring insurance products provide real solutions to real problems.

“We are here to absorb these catastrophic events and provide the financial compensation needed for people to rebuild what was destroyed,” Sonndorfer explained, framing the larger challenge of the industry as one of maintaining relevance. 

“The world is full of risks, and climate change-related risks are at the centre of our attention. 

“We need to think about how we, as an industry, come up with solutions that are not only tradable among ourselves but also with our clients.”

As the January 1 renewals approach, Sonndorfer is confident that VIG Re’s strategy remains clear: consistency and reliability.

“We approach the renewal with consistency towards our clients,” he concluded.

Tobias Sonndorfer is the incoming chief executive officer of VIG Re. He can be contacted at: info@vig-re.com 

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