Vienna Insurance Group Wiener Versicherung Gruppe
EANS-Adhoc: Vienna Insurance Group with Group Embedded Value, Solvency II ratio and final result for 2016 as well as adjustments to the 2015 result
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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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annual result/Adjustments to the 2015 result
19.04.2017
- Group Embedded Value further increased
- Solvency II ratio stable at 195 per cent as of 31 December 2016
- Profit (before taxes) confirmed unchanged at EUR 407 million in 2016
- Adjustments in accordance with IAS 8 lead to goodwill impairments in
2015 of approx. EUR 90 million
Group Embedded Value reaches about EUR 6 billion
Embedded Value is calculated according to international standards as the net
asset value of Vienna Insurance Group plus the present value of expected future
profits from existing life and health insurance policies. This has been
certified by KPMG Austria GmbH.
The sustainability of Vienna Insurance Group's insurance business is reflected
by the increase in the Group Embedded Value (after taxes), growing to about EUR
6 billion as of 31 December 2016 (adjusted value for 2015: EUR 5.7 billion). The
new business margin once again reached a high international standard of 6.1
percent in the CEE region. The 2.0 per cent new business margin in Austria was a
clear improvement compared to the previous year.
Solvency II ratio unchanged at 195 percent
The Solvency II ratio calculated at the level of the listed VIG Group was 195
per cent at the end of 2016. This already includes the call and repayment of
around EUR 256 million for the two supplementary capital bonds as of 12 January
2017. VIG's solvency therefore remains at an excellent level.
Result
Vienna Insurance Group will publish its Group Annual Report for the 2016
financial year tomorrow. The auditor has certified the previously published
profit before taxes of EUR 406.73 million. Due to changes in the goodwill
recognised in Romania, Croatia, Hungary and Albania/Kosovo, the Group
shareholders' equity was adjusted by around EUR 90 million. Profit before taxes
in the 2015 financial year declined by the same amount. The adjustment is based
on an error notification by the Austrian Financial Reporting Enforcement Panel
(AFREP). According to AFREP, the method that VIG used to determine the interest
rate for calculating the value in use of the cash generating units (CGUs) was
not IFRS-compliant because VIG used a peer group financing structure that did
not verifiably reflect the asset-specific risk of the CGUs.
Dividend
The resolution proposals for the Annual General Meeting on 12 May 2017 include
the previously announced dividend of EUR 0.80 per share that has, in the
meantime, also been confirmed by the Supervisory Board.
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
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