VIENNA INSURANCE GROUP STAYS ON COURSE IN 1ST QUARTER OF 2012 (ENGLISH)
Group premiums grew by 5.5 percent to more than EUR 2.7 billion; Increase in Group profit (before taxes) by 6.0 percent to EUR 151.4 million; Significant increase in profit in CEE by 13.8 percent; Combined ratio decreased to excellent 96.4 percent;
“Our assumptions for the current financial year have been confirmed by the business data for the 1st quarter of 2012”, explained Günter Geyer, CEO of Vienna Insurance Group. “We observe a very differentiated situation in our markets. In general, we continue on our growth path and succeeded in increasing our profit despite the difficult economic environment by 6.0 percent. It is remarkable that profit in the CEE region rose significantly by 13.8 percent. Vienna Insurance Group is pursuing a consistent strategy to keep volatilities as low as possible and to increase premiums and profit.“
“Our partnership with Erste Group proves to be fruitful, and the increase in the volume of premiums of s Versicherung Group by 15.4 percent highlights the great success of this sales channel”, Peter Hagen, Deputy General Manager of Vienna Insurance Group, points out and adds: “We will continue to pursue our goal of growing above market average and sustainably increasing our profitability.”
I. OVERVIEW OF KEY GROUP DATA FOR THE 1st QUARTER OF 2012 (in accordance with IFRS)
In the 1st quarter of 2012 Vienna Insurance Group earned a total of EUR 2.7 billion of (consolidated) premiums written, growing by 5.5 percent compared to the same period of the previous year.
The Group profit (before taxes, consolidated) amounted to EUR 151.4 million in the 1st quarter of 2012. This corresponds to a significant increase by 6.0 percent compared to the prior-year period.
The Group profit after taxes and minority interests went up by 7.9 percent to EUR 117.7 million.
In the 1st quarter of 2012 the Group’s combined ratio after reinsurance (excluding investment income) was successfully decreased by 1.4 percentage points to an excellent 96.4 percent – which is considerably below the 100-percent threshold.
The Group posted total investments, including cash and cash equivalents, of EUR 28.7 billion as of 31 March 2012. Increasing by 9.4 percent, the financial result totalled EUR 277.0 million. The hidden reserves of the Group amounted to about EUR 1.5 billion.
II. GROUP DATA BY SEGMENTS FOR THE 1st QUARTER OF 2012 (consolidated)
Property/casualty insurance
In the property/casualty insurance segment the volume of premiums grew by 4.1 percent to EUR 1.5 billion.
Life insurance
In the life insurance the Group companies of Vienna Insurance Group achieved a volume of premiums of more than EUR 1.1 billion, i.e. a plus of 7.4 percent.
Health insurance
In the health insurance Vienna Insurance Group reported an increase in premiums written by 6.1 percent to EUR 97.8 million.
III. GROUP DATA BY REGIONS FOR THE 1st QUARTER OF 2012 (consolidated)
Austria
The Vienna Insurance Group companies in Austria posted premiums written of about EUR 1.4 billion; this corresponds to an increase of 6.6 percent. In the property/casualty insurance premiums written rose by 11.7 percent to a total of EUR 727.7 million. The life insurance segment reported a minor increase in premiums by 1.2 percent to EUR 552.3 million in total.
Profit (before taxes) amounted to EUR 75.4 million.
The combined ratio improved to an excellent 91.8 percent, decreasing by more than 2 percentage points.
Czech Republic
The Group companies in the Czech Republic earned premiums written of EUR 494.1 million.
In the non-life insurance segment premiums written amounted to EUR 283.3 million. In the life insurance premiums written totalled EUR 210.8 million.
Achieving a market share of 30.2 percent, the Vienna Insurance Group companies are the number one in the insurance market of the Czech Republic.
Profit (before taxes) rose by 6.6 percent (compared to the same period of the previous year) to EUR 43.8 million.
The combined ratio stood at a favourable level of 95.2 percent.
Slovakia
The Group companies in Slovakia boosted the volume of premiums written by 2.3 percent to EUR 192.9 million.
Increasing by 2.3 percent, premiums written amounted to EUR 105.7 million in the non-life insurance segment. The life insurance segment reported a growth of 2.3 percent in premiums written, totalling EUR 87.1 million.
Thanks to a market share of 32.7 percent, the Group companies of Vienna Insurance Group strengthened their position as the number one in the Slovak insurance market.
Profit (before taxes) amounted to EUR 15.7 million.
The combined ratio stood at 94.8 percent, decreasing by 1.6 percentage points.
Poland
The Group companies of Vienna Insurance Group posted premiums written of EUR 319.6 million, growing sharply by 23.6 percent.
The non-life insurance segment reported premiums written of EUR 160.2 million. Following a significant increase by 64.9 percent, the life insurance segment posted premiums written of EUR 159.3 million.
Compared to the same period of the previous year, profit (before taxes) rose by more than two thirds to a total of EUR 16.3 million.
The combined ratio decreased by 2.5 percentage points. Amounting to 98.4 percent, this is the first time that it dropped significantly below the 100-percent threshold.
Romania
The Romanian Group companies earned premiums written of a total of EUR 134.5 million.
In the non-life insurance premiums written decreased to EUR 106.8 million due to restructuring the portfolio. In the life insurance segment premiums written grew by 2.0 percent to EUR 27.7 million.
A loss of EUR 2.7 million was reported in the 1st quarter of 2012.
The combined ratio reached a very unsatisfactory level of 112 percent.
Remaining markets
The segment “remaining markets” comprises the countries Albania, Bulgaria, Germany, Estonia, Croatia, Latvia, Liechtenstein, Lithuania, Macedonia, Serbia, Turkey, Ukraine, Hungary and Georgia.
In this segment the Group companies of Vienna Insurance Group achieved premiums written of EUR 236.3 million, growing strongly by 11.1 percent. The non-life insurance segment reported an increase of 1.0 percent in premiums written to EUR 153.5 million. In the life insurance premiums written rose by 36.3 percent to EUR 82.8 million.
Profit (before taxes) amounted to EUR 2.9 million.
The combined ratio was slightly above 100 percent.
IV. OUTLOOK
In 2012 the focus will remain on strengthening organic growth – by promoting business with existing companies. This will, however, not exclude the possibility of acquisitions rounding off the portfolio.
Vienna Insurance Group set itself the goal of growing above market average in the next years. The Management of Vienna Insurance Group has committed itself to keeping volatilities as low as possible by taking into account the economic background. Vienna Insurance Group also strives to identify cost-cutting potentials on an ongoing basis and to use them to the best advantage.
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The Vienna Insurance Group (VIG) is the company with the best rating of the leading index ATX of the Austrian Stock Exchange. The Vienna Insurance Group is one of the leading insurance groups in CEE headquartered in Vienna. Outside of its home base in Austria, Vienna Insurance Group is also active, through subsidiaries and insurance holdings, in Albania, Bosnia-Herzegovina, Bulgaria, Germany, Estonia, Georgia, Croatia, Latvia, Liechtenstein, Lithuania, Macedonia, Montenegro, Poland, Romania, Russia, Serbia, Slovakia, the Czech Republic, Turkey, Ukraine, Hungary and Belarus. Moreover, Wiener Städtische Versicherung has branches in Italy and Slovenia; Donau Versicherung has a branch in Italy.
On the Austrian market, the Vienna Insurance Group positions itself with Wiener Städtische Versicherung, Donau Versicherung and Sparkassen Versicherung.
Contact:
VIENNA INSURANCE GROUP (VIG)
Alexander Jedlicka
Head of Public Relations
Schottenring 30, 1010 Vienna
Tel.: +43 (0)50 390-21029
Fax: +43 (0)50 390 99-21029
E-Mail: alexander.jedlicka@vig.com
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