euro adhoc: Generali Holding Vienna AG
Annual Reports
Generali: Dynamic
Growth in Premium Income and Earnings
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
25.08.2005
Generali: Dynamic Growth in Premium Income and Earnings Strong growth in Life insurance: premium receipts up 21 per cent. - Profit from ordinary activities jumps to EUR 111.3 million.- Entry into the Serbian market this autumn.
The Generali Vienna Group has remained firmly on track, reporting dynamic growth in its premium income and earnings. Applying Austrias HGB accounting standards, the Generali Vienna Groups premium income during the first six months of 2005 was 7.6 per cent up on the same period of 2004 at EUR 1.62 billion. Applying IFRS, it grew by 5.6 per cent to EUR 1.52 billion.
The groups first-half premium income from property/casualty insurance grew by EUR 26.6 million or 2.6 per cent on the year to pass the billion euro mark, totalling EUR 1.03 billion. Consumers spent EUR 92.6 million on Generalis private health insurance products. That was EUR 3.2 million or 3.6 per cent up on the first half of 2004.
Consumers spend 21 per cent more on Generalis private pension and savings products Including the saving components of unit-linked life insurance policies, consumers invested a total of EUR 493.2 million in Generalis life insurance products. That was 20.8 per cent more than in the first half of 2004. Even without saving components, Generali reported impressive growth of 14.8 per cent in this segment (applying IFRS) as premium income from consumers increased by EUR 50.0 million to EUR 388.4 million.
Generalis life insurance portfolio grew by 11.7 per cent to EUR 26.2 billion. Growth of the portfolio of the Generali life insurance subsidiary in Poland was particularly striking at 40.5 per cent. It was largely due to the life insurance sold by BRE Bank on Generalis behalf with the help of the present interest-rates environment.
Growth driven by Central and Eastern Europe: premium increase of 11.0 per cent The proportion of the groups aggregate premium income from primary insurance business (i.e. without reinsurance) accounted for by Generalis current total of seven markets in Central and Eastern Europe (the group will soon be entering the Serbian market, which will be its eighth market in Central and Eastern Europe) rose from 25.1 to 28.7 per cent as the groups first-half premium income from primary insurance business in Central and Eastern Europe grew by 20.7 per cent to EUR 418.0 million. It also grew in Austria, increasing by 0.3 per cent to EUR 1.04 billion. Overall, the groups premium income from primary insurance business advanced by 5.4 per cent to EUR 1.46 billion.
The Generali Vienna Groups first-half claims and benefits expense fell by 1.3 per cent to EUR 1.0 billion. Costs were stable at EUR 303.9 million.
The groups investments grew significantly, namely by 5.2 per cent to EUR 9.1 billion. That compared with growth of just 2.0 per cent in the first quarter. Furthermore, the group achieved a turnaround in its current income from investing activities. Following a decline of 5.7 per cent in the first three months of 2005, first-half current income from investing activities grew by 6.2 per cent to EUR 226.7 million.
Profit-orientated growth: conspicuous advance in profit from ordinary activities Group CEO Karl Stoss has expressed particular pleasure in the fact that the sharp increase in premium income was also accompanied by another marked advance in profit from ordinary activities. Having come to EUR 63.0 million during the first six months of 2004, profit from ordinary activities during the first half of this year already stood at EUR 111.3 million. In the words of Karl Stoss, "This increase of 76.7 per cent underlines the continuing success of our profit-orientated growth strategy."
Entry into the Serbian market in the autumn Stoss also sees the groups planned entry into the Serbian market this autumn as a reflection of its profit-orientated growth strategy: "The point is not merely to accumulate countries and subsidiaries. Our goal is to combine the expansion of our very successful activities in Central and Eastern Europe with sustained earning power. We are acquiring a majority stake in Serbias Delta Osiguranje so as to continue our expansion in the region on that basis." Delta Osiguranje is Serbias largest private insurance company. It ranks third in the Serbian marketplace with annual premium income of about EUR 16 million and is one of Serbias few providers of a complete range of insurance products. It only recently began pension fund operations to round off the product line. Delta Osiguranje can rely on an own distribution channel.
Generali has increased its growth forecast for 2005 The Generali Vienna Group has increased its full-year premium growth forecast for 2005. As things stand at the moment, it expects its premium income to grow by 3.9 per cent to EUR 2.8 billion, and it also anticipates an increase in its profit from underwriting activities. Because interest rates have remained low, the group will not quite match last years profit from investing activities. Listed group parent Generali Holding Vienna AG currently expects to be able to declare the same dividend for 2005 as for last year.
end of announcement euro adhoc 25.08.2005 07:28:00
Further inquiry note:
Generali Holding Vienna AG
Josef Hlinka
Tel.: (++43-1) 534 01-1375
Fax: (++43-1) 534 01-1593
mailto:josef.hlinka@generali.at
http://www.generali-holding.at
Branche: Insurance
ISIN: AT0000661350
WKN: 066135
Index: WBI, ATX Prime, ATX
Börsen: Berliner Wertpapierbörse / free trade
Hamburger Wertpapierbörse / free trade
Frankfurter Wertpapierbörse / free trade
Baden-Württembergische Wertpapierbörse / free trade
Bayerische Börse / free trade
Wiener Börse AG / official dealing