Denis Napthine concedes defeat

Victorian Premier Denis Napthine has conceded defeat in Saturday's state election, despite more than a million pre-poll votes still needing to be counted.

"The figures clearly indicate that there has been a swing to the Labor Party and they will have a majority in the legislative assembly," he told Liberal supporters.

"Therefore, it's appropriate for myself as leader of the government, as leader of the Liberal Party, to do the right thing by the people of Victoria and to contact Mr Andrews and inform him that I have conceded that he has won this election and we congratulate Mr Andrews on that victory."

With his wife Peggy and children by his side, a solemn Dr Napthine told the crowd at the Sofitel that he had been proud to have led the state.

"I am extremely proud to have had the honour and privilege to be the premier of this great state of Victoria," he said.

"This is the greatest state in the best country in the world.

"And I am particularly proud that today in 2014 Victoria is a better, stronger, more financially secure state than when we came to government four years ago."

The 62-year-old Dr Napthine came to power when Ted Baillieu surprised Victorians by resigning in March 2013.

He stepped into a hung parliament with rogue former Liberal Geoff Shaw calling the shots.

His government is now the first one-term government in nearly 60 years.