Vienna Insurance Group Wiener Versicherung Gruppe
EANS-Adhoc: 2016 preliminary results for Vienna Insurance Group *) - Profit more than doubled
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annual result
23.03.2017
- Premiums increased to around EUR 9.1 billion
- Profit (before taxes) more than doubled to around EUR 407 million
- Combined ratio at a good level of 97.3 percent
- Proposed dividend increased to EUR 0.80 per share
- Fit for the future with Agenda 2020
Preliminary premium volume of EUR 9,051 million showed a stable development
(+EUR 31 million compared to the previous year). Premiums increased
significantly in all lines of business, with the exception of single-premium
life insurance (- 19.2 percent). As in the previous year, a restrictive
underwriting policy was followed in most markets in this area due to the low
interest rate situation. Without single-premium products, premiums increased +
4.4 percent across all lines of business.
Premiums grew particularly strongly in the Remaining CEE segment (+ 7.9
percent), including contributions from Serbia (+ 18.5 percent) and Croatia (+
9.4 percent), and in the segments Turkey/Georgia (+ 14.5 percent) and Hungary (+
9.8 percent). Growth in Romania was exceptional, reaching the highest recorded
level of 24.4 percent, in part due to market adjustments.
With respect to profit (before taxes), the target set in the previous year was
to at least double the profit achieved in 2015 to up to EUR 400 million. "At EUR
406.7 million, we achieved the top end of our target range, thereby far more
than doubling our profit (before taxes)," stated Elisabeth Stadler.
Compared to the combined ratio of 97.9 percent at the 3rd quarter 2016 a
significant improvement of the combined ratio for the full year 2016 was
achieved. With 97.3 percent VIG's combined ratio remains at the level of the
previous year and is once again clearly below the 100 percent mark. The cost
ratio improved to 30.4 percent compared to 30.6 percent in 2015. In the same
dimension the claims ratio increased from 66.7 percent to 66.9 percent.
Vienna Insurance Group generated a financial result of EUR 959 million in 2016.
This represented a 7.8 percent year-on-year decrease that was mainly due to
lower realised gains on the disposal of investments in bonds, loans and
equities.
Due to the good results, the Managing Board will propose to the statutory bodies
that the dividend for the financial year 2016 be increased from EUR 0.60 in the
previous year to EUR 0.80 per share. This corresponds to an increase of 33
percent and maintains the dividend policy VIG has followed since 2005, which
provides for a minimum distribution of 30 percent of net Group profits (after
minority interests).
New "Agenda 2020" work programme
The examination of VIG's 25 markets for new potential as announced in the
previous year was effected. This resulted in a strategic work programme. In
addition to taking advantage of profitable market potential, VIG is also
focusing on areas that will ensure future viability of the Group and optimise
the business model to increase cost efficiency. This includes creating cost
benefits by merging back-office functions and companies in the Group when the
long-term benefits outweigh the benefits of a diversified market presence.
In addition to the growth opportunities in health and reinsurance VIG sees great
potential in the bank insurance business. A project group is being formed with
the bank insurance partner Erste Group. The goal of the project is to optimise
products, distribution and profits for the bank and insurance companies in all
countries where Erste Group and VIG cooperate. The focus is on customer needs
and desires, easily understandable products and the integration into the bank's
digitisation initiative. This also includes organisational and structural
considerations on the insurance side that will improve communications and
service for customers and banking partners.
Outlook for the period to 2019
VIG plans to steadily increase its premium volume to EUR 9.5 billion by 2019. In
spite of the low interest rate environment and the continued negative effect
this is expected to have on the financial result, VIG aims to increase its
profit (before taxes) to EUR 450 to 470 million by 2019. The medium-term target
of 95 percent continues to apply for the combined ratio. Dividend per share
development to follow results increase.
*) Note
The information in this press release for the financial year 2016 is based on
preliminary unaudited data. The final audited information for the financial year
2016 will be published with the Group Annual Report 2016 on 19 April 2017.
Disclaimer
This press release contains forward-looking statements that concern future
developments in Vienna Insurance Group. These statements are based on current
assumptions and forecasts by the management of Vienna Insurance Group. Changes
in general economic developments, future market conditions, capital markets and
other circumstances could result in actual events or results differing
significantly from these forward-looking statements. Vienna Insurance Group
assumes no obligation to update these forward-looking statements or modify them
based on future events or developments.
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
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