Vienna Insurance Group Wiener Versicherung Gruppe
EANS-News: Vienna Insurance Group Wiener Versicherung Gruppe
VIG in the first
three quarters of 2016: Growth in premiums and profit
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Financial Figures/Balance Sheet/9M 2016
* Premiums rise to around EUR 7.0 billion
* Profit (before taxes) increases to EUR 301.3 million
* Combined ratio stable at 97.9 percent
Vienna Insurance Group business development is on course in the first three
quarters of 2016. Group premiums rose by 0.7 percent, which is noteworthy due
to the ongoing restraint in single premium life insurance business (-18.6
percent). When adjusted for single premium business, premiums increased by a
respectable 4.7 percent.
"The interest rate environment is a challenge that all European insurers now
have to face. Given these circumstances, we are very satisfied with our profit
development, which is in line with the target we announced for 2016," said
Elisabeth Stadler, CEO of Vienna Insurance Group, adding: "Overall, the
results show that the decision to exercise restraint in the traditional single
premium life insurance business was correct."
VIG's profit (before taxes) of EUR 301.3 million means it is on target in
terms of profit development. When interpreting the sharp increase of 88.4
percent, the impairment in the comparable period of 2015 must be taken into
account. The CEE markets contributed around 65 percent of profits.
The Group's combined ratio after reinsurance (not including investment income)
was 97.9 percent in 1st to 3rd quarter of 2016.
Group investments including cash and cash equivalents were EUR 36.5 billion as
of 30 September 2016. VIG earned a financial result of EUR 703.2 Million
(-10.0 percent) in the first three quarters of 2016.
Vienna Insurance Group market developments
"Based on the motto 'identify chances', we rely on local management in our
markets. Our premium growth shows that we respond to the different
circumstances in each individual market, based on our diversity across
countries and regions. Our Group companies bring us close to our customers and
make us successful as a local insurer," stated Elisabeth Stadler, explaining
VIG's CEE strategy.
In light of the challenging circumstances, Vienna Insurance Group companies
recorded good premium growth in many markets, such as in Hungary (+14.2
percent), Romania (+30.3 percent) or Turkey/Georgia (+15.6 percent).
Premium growth was consistently positive in property and casualty. VIG
recorded significant growth in motor third party liability, casco and the non-
motor lines of business.
Vienna Insurance Group recently defined health insurance as a strategic growth
line of business. During the first nine months, premiums grew 6.3 percent in
this line of business.
However, even the markets greatly affected by the low interest rate
environment, such as the Czech Republic, Slovakia and Austria, recorded
premium growth of +6.7 percent, +4.5 percent and +0.6 percent, respectively.
Solid growth of 6.4 percent was also achieved in Poland, when adjusted for the
transfer of the Baltic non-life insurance business as well as exchange rate
effects.
Profitable insurance business is the top priority for Vienna Insurance Group.
It must be stressed that almost all regional segments made positive
contributions to profits. Profit (before taxes) rose, for example, in Hungary
(+41.6 percent), Romania (+16.6 percent) and the Turkey/Georgia segment (+80.4
percent). The Baltic region was the sole exception, recording a minus
(EUR -7.8 million) primarily due to start-up losses for the newly founded
insurance company Compensa Non-Life.
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-Schwarz
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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company: 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