Subsidiaries and holding companies

Vörður tryggingar hf. is a general insurance company offering convenient insurance solutions for individuals, families and corporate customers. We are there for our customers when they most need it.

Vörður continued to attract new customers during the year, and now a total 67,000 customers, including 6,400 companies, have chosen Vörður for their insurance needs. The company has made a targeted effort to expand its corporate customer base.

At the same time, revenue from insurance activities grew strongly, up 15%, supporting the company’s targets on growth and higher market share, which was up to 18.5% at the end of September.

Sustainability and social responsibility

Vörður aims to offer its customers the right insurance coverage at competitive prices. The company also strives to set a good example, not just in terms of profitability and operating efficiency, but also in environmental, social and governance issues.

The company works according to a 3-year sustainability policy. The policy sets out the company’s commitment to working with integrity in sustainability and having a positive impact on stakeholders by monitoring the direct and indirect environmental impact of its activities and by supporting the UN Sustainable Development Goals.

Environmental factors

Over the last few years Vörður has placed importance on minimizing the environmental impact of its activities. The company is guided by Iceland’s commitments to the Paris Agreement. Annual emissions are carbon offset by Kolviður, i.e. emissions from fuel consumption, electricity consumption, water, flights, waste, supplies and employee journeys to and from work and during working hours.

Social factors

Social responsibility at Vörður means working with integrity for the benefit of all stakeholders, including customers, employees, shareholders and society as a whole. The company performs this role by being a good role model in terms of equality, fairness and human rights and encourages others, such as suppliers and stakeholders, to do the same.

Prevention remains a key priority. Vörður promotes preventive measures to reduce the number of accidents and claims from customers and in society as a whole. Vörður aspires to be at the forefront of preventive action on the Icelandic insurance market, with an emphasis on security, health and environment. By getting employees involved with preventive action and introducing preventive measures and risk assessments into the company’s procedures we move closer to reaching our targets. Vörður also fosters close collaboration with companies on security issues.

Governance factors

Governance at Vörður is designed to cultivate open and honest communication between the board of directors, shareholders, customers and other stakeholders. Good corporate governance provides a basis for responsible management and decision-making, with the objective of generating social value.

Operating results

Vörður performed well in most respects in 2023. It reached its targets on growth, expanding market share, growing its corporate customer base and bringing operating expenses to below 20%. Investment income increased by ISK 2.3 billion.

Weather can have a major impact on the financial results of insurance companies. This applies in particular to the number and severity of traffic-related insurance claims, but severe weather can also result in more claims related to property, both private homes and commercial property. The first few months of the year were particularly tough in terms of the weather, with heavy snow, freezing temperatures and finally a sudden thaw putting great strain on cars and property, with plumbing in holidays homes being particularly sensitive to cold weather. House fires also left their mark on the year, resulting in higher insurance payouts. In fact claims relating to fires were so much higher at Vörður than in previous years that we look on it as an exceptional year rather than the shape of things to come. After a very challenging year for the financial markets in 2022, financial results recovered in 2023 despite some market volatility.

The total number of insurance claims was approximately 24,000, up by 1,500 from the previous year. At the same time claim-related expenses rose by 18%, largely a consequence of fire claims.

Tasks ahead

Our strategy for the next few years is shaped around Vörður being the number one choice for customers on the insurance market. Key features of the strategy are outstanding service to customers, a product range which meets their needs and fair pricing. These goals are attainable by cultivating our partnership with Arion Bank and other partners to develop our product range, push innovation and highlight prevention which is an important social issue.

Outlook

Vörður has expanded rapidly on the insurance market and the number of customers has increased each year. By using cutting-edge solutions we seek to make insurance simple and straightforward for homes and companies. There is great opportunity for growth and to enhance or services and the aim is to continue along this trajectory so that the company becomes a leading provider of services and products.