Vienna Insurance Group Wiener Versicherung Gruppe
EANS-Adhoc: Vienna Insurance Group with preliminary first half-year profit before taxes 2016 of about EUR 200mn and changed valuation approach and consolidation of non-profit housing societies
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Disclosed inside information pursuant to article 17 Market Abuse Regulation
(MAR) transmitted by euro adhoc with the aim of a Europe-wide distribution.
The issuer is solely responsible for the content of this announcement.
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Financial Figures/Balance Sheet
03.08.2016
VIG announces preliminary consolidated profit before taxes of about EUR 200mn
for the first half-year 2016. Thus, the result is in line with the given
earnings outlook for the financial year 2016. Consolidated shareholders' equity
will be adjusted due to the change in the valuation method from the currently
at-equity consolidated non-profit housing societies.
This amendment is based on the official notification of the Austrian Financial
Market Authority (FMA) under Section 3 (1) 3 of the Accounting Control Act dated
2 August 2016. According to this notification, the method of inclusion of the
non-profit housing societies is seen as non IFRS-compliant. The examination
included the consolidated financial statements for FY 2014 and FY 2015 as well
as the half-year reports as of 30 June 2014 and 30 June 2015. According to this
notification, the regulatory restrictions applied for non-profit housing
societies in terms of profit distribution and liquidation have not adequately
been considered neither for calculation of fair value nor for including the
profit share of these entities. According to the FMA notification, this implies
after a first and preliminary review a reduction of the profit before taxes by
about EUR 45mn and of shareholders' equity (own shares and non-controlling
interests) by about EUR 550 - 580mn for the financial year 2015.
In the meantime, the Supervisory Boards agreed upon Vienna Insurance Groups'
regaining of controlling influence over the non-profit housing societies. Most
likely from August 2016, participations in the nine companies will be fully
consolidated and relevant assets, amongst others real estate with a book value
of roughly EUR 3.5bn, will be included in the balance sheet. Based on
preliminary half-year 2016 data, the share of non-profit housing societies in
shareholders' equity increases by about EUR 1bn when fully consolidated. Going
forward, this increase will be separately shown under 'non-controlling
interests' in the consolidated balance sheet.
These accounting changes have no impact on the Solvency II ratio. So far, the
own funds calculation for regulatory solvency reason out of non-profit housing
societies was already based on future dividend payouts, in which the specific
distribution restrictions for non-profit housing societies are fully taken into
account.
Moreover, management confirms the earnings outlook for 2016. The Group aims to
at least double its profit before taxes up to EUR 400mn in 2016.
The following securities of VIG are admitted for trading on a regulated market:
Issue title ISIN Trading segment
Aktie AT0000908504 Vienna and Prague Stock Exchange,
Official Market
VIG nachrang. Anl. 15 AT0000A1D5E1 Luxembourg Stock Exchange, Second
Regulated Market
VIG nachrang. Schuldv.13-43 AT0000A12GN0 Vienna Stock Exchange, Second
Regulated Market
Wr.Staedt. Hybridkap-Anl. 08 AT0000A09SA8 Vienna Stock Exchange, Second
Regulated Market
Wr.Staedt.Vers. EK-Anl. 05-22 AT0000342696 Vienna Stock Exchange, Official
Market
Wr.Staedt.Vers. var EK-Anl. 05 AT0000342704 Vienna Stock Exchange, Official
Market
Further inquiry note:
VIENNA INSURANCE GROUP AG
Wiener Versicherung Gruppe
1010 Wien, Schottenring 30
Wolfgang Haas
Head of Group Communications & Marketing, Spokesperson of the Group
Tel.: +43 (0)50 390-21029
Fax: +43 (0)50 390 99-21029
E-Mail: wolfgang.haas@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 Wiener Versicherung Gruppe
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