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distribution. The issuer is solely responsible for the content of this
announcement.
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Financial Figures/Balance Sheet/Results and Embedded Value for the year 2013
10.04.2014
- Premiums reach EUR 9.2 billion
- Premiums adjusted for special effects increase by 2.8 percent
- Profit (before taxes) EUR 355.1 million
- Result adjusted for special effects around EUR 570 million
- "Remaining markets" pass EUR 1 billion mark in premiums for the first time
- Strong capitalization: solvency ratio significantly higher than 200 percent
- Managing Board proposes increase in dividend to EUR 1.30 per share
Solid operating performance in a challenging financial year
Vienna Insurance Group earned EUR 9.2 billion in Group premiums in financial
year 2013. The intentional reduction of short-term single-premium business in
Poland, the decrease in motor business in Italy and currency effects (in
particular devaluation of the Czech crown) led to a 4.4 percent reduction in
premiums. Excluding these effects, Vienna Insurance Group achieved solid
operating premium growth of 2.8 percent.
Property and casualty premiums fell by 1.2 percent. Excluding special effects
mentioned above there was an increase of 1.6 percent.
Vienna Insurance Group achieved satisfying performance of around 5 percent in
non-motor. The high level of demand in this area shows the long-term potential
for modern insurance products in the CEE markets. Vienna Insurance Group
companies took advantage of this by increasing distribution to further
encourage portfolio diversification and risk spreading.
Adjusted for the reduction in short-term single-premium business in Poland and
exchange rate effects, Vienna Insurance Group achieved an operational increase
of 4.3 percent in life. The 8.3 percent decrease in premiums that was reported
is a result of the effects mentioned above. The successful cooperation with
Erste Group continues to have a very positive effect on the life insurance. The
Group will use its recent acquisitions in Hungary and Poland to take advantage
of these future opportunities in life insurance.
Health premiums grew by 1.6 percent to around EUR 400 million.
Challenging conditions, particularly in the Romanian market, and developments
in Italy led Group management to impair goodwill and to take additional
precautionary measures that had a dramatic negative effect on the operating
profit for the reporting period. The resulting Group profit (before taxes) was
EUR 355.1 million (-37.0 percent). The Group result, adjusted for these special
effects, was approx. EUR 570 million.
These extraordinary measures also raised the combined ratio to 100.6 percent.
The financial result of the Group remained stable at around EUR 1.2 billion.
Vienna Insurance Group investments (including cash and cash equivalents) were
close to EUR 30 billion (as of 31 December 2013).
Due to the Group's excellent capitalization, solvency ratio of sustainably more
than 200 percent and solid operating result, a proposal will be made to raise
the dividend to EUR 1.30 per share (+ EUR 0.10) at the Vienna Insurance Group
Annual General Meeting.
Group Embedded Value - continued to increase
Calculated on the basis of international standards, the embedded value is the
net asset value of Vienna Insurance Group plus the present value of potential
future profits from existing life and health insurance contracts. It was
certified by B&W Deloitte GmbH, Cologne.
The long-term viability of the insurance business of Vienna Insurance Group has
been evidenced by the fact that the Group embedded value (after taxes)
increased by 11.0 percent to EUR 6.2 billion (adjusted value for 2012: EUR
5.5 billion) as of 31 December 2013. With 6.0 percent, the CEE new business
margin reached once more an excellent value by international comparison.
Further inquiry note:
VIENNA INSURANCE GROUP AG
Wiener Versicherung Gruppe
1010 Wien, Schottenring 30
Alexander Jedlicka
Head of Public Relations, Spokesperson
Tel.: +43 (0)50 390-21029
Fax: +43 (0)50 390 99-21029
E-Mail: alexander.jedlicka@vig.com
Nina Higatzberger
Head of Investor Relations
Tel.: +43 (0)50 390-21920
Fax: +43 (0)50 390 99-21920
E-Mail: nina.higatzberger@vig.com
end of announcement euro adhoc
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issuer: Vienna Insurance Group
Schottenring 30
A-1010 Wien
phone: +43(0)50 390-21919
FAX: +43(0)50 390 99-23303
mail: investor.relations@vig.com
WWW: www.vig.com
sector: Insurance
ISIN: AT0000908504
indexes: WBI, ATX Prime, ATX
stockmarkets: official market: Wien, stock market: Prague Stock Exchange
language: English