euro adhoc: Generali Holding Vienna AG
Quarterly or Semiannual
Financial Statements
Generali Vienna Group: Profit Orientation and
Premium Growth (E)
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Q1 - Q3 2003: Premium income from primary insurance business grows by 4 per cent. At the same time, costs fall. Boom in new recurring-premium life insurance contracts.
The Generali Vienna Groups strategy of further cost cuts combined with continued systematic growth has paid off in full. As the Interim Report published today shows, the group was able to increase its Q1 - Q3 premium income from primary insurance business by nearly 4 per cent to EUR 1.9 billion. The rate of growth in the six months to mid-year had only been just over 2 per cent.
The increase was primarily driven by the groups subsidiaries in the Central and Eastern European countries, which again proved to be an engine of growth. Its premium income in the region increased by nearly 16 per cent to EUR 456 million. As a result, the proportion of the groups aggregate premium income from primary insurance business accounted for by CEEC markets already came to nearly 24 per cent. There was also some growth in Austria, where the groups premium income from primary insurance business came to EUR 1.4 billion. Including reinsurance business, the Generali Vienna Groups premium income during the first nine months of 2003 was 2.5 per cent up on the same period of 2002 at EUR 2 billion.
Faster growth in non-life insurance lines
The group is one of the leading financial service providers in Austria and Central and Eastern Europe. Its property/casualty insurance operations grew especially powerfully with an increase in premium income of over 8 per cent to EUR 1.3 billion. The group also achieved rapid growth in the health insurance segment, where its Q1 -Q3 premium income increased by over 4 per cent to EUR 129 million.
Boom in new business in the life insurance segment
The Austrian members of the group enjoyed a veritable boom in new recurring-premium business. In particular, a flexible private pension and saving product called Clever Invest and the state-subsidized Zukunftsvorsorge pension and saving line pushed the volume of new business in Austria up by 40 per cent to over EUR 60 million. Sums insured in the life insurance segment also grew substantially in the 12 months to 30 September 2003, ending that period a remarkable 30 per cent up on the year at EUR 22.2 billion group-wide. The large number of maturing life insurance policies in Austria and the fall-off in single-premium deposits triggered by developments in the capital markets led, as expected, to a 7 per cent decline in life insurance premium income, which totalled EUR 455 million.
Reduced burden of claims and costs
Claims and benefit outpayments during the first three quarters of 2003 were 20 per cent down on the same period of 2002 at EUR 1.3 billion. Outpayments in 2002 had been particularly high because of bad weather. Costs too continued to fall, namely by over 4 per cent compared with Q1 - Q3 2002 to just under EUR 440 million. Costs in the six months up to mid-year had fallen by 3 per cent.
Investments grow by EUR 280 million
The Generali Vienna Groups consolidated investments totalled roughly EUR 8.5 billion on 30 September 2003, having grown by over EUR 280 million since the beginning of the year.
Outlook: Improved underwriting result and the same distribution to shareholders as for 2002
The Generali Vienna Group still expects its full-year premium income to increase to EUR 2.6 billion in 2003. As things stand at the moment, an improvement in its underwriting result is likely. The overall profit that is currently being forecast would permit the distribution of the same outpayment to shareholders as for 2002.
Group CEO Dietrich Karner believes that the Generali Vienna Group is on the right path: "We have reacted promptly to the crisis in the capital markets and have achieved a turnaround in our underwriting results. Our systematic management of costs is also already having a positive impact."
The detailed Interim Report as of and for the period ended 30 September 2003 is available in the Internet in both German and English at: http://holding.generali.at (Section: Annual Report/Interim Reports).
end of announcement euro adhoc 28.11.2003
Further inquiry note:
Generali Holding Vienna AG
Mag. Christine Rohrer
Tel.: (++43-1) 534 01-2446
Fax: (++43-1) 534 01-1593
mailto:christine.rohrer@generali.at
http://www.generali-holding.at
Branche: Insurance
ISIN: AT0000661350
WKN: 066135
Index: ATX, ATX Prime, WBI
Börsen: Wiener Börse AG / official dealing
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