Get real time updates directly on you device, subscribe now.
Vienna Insurance Group (VIG) reported in the first quarter for Romania a profit of EUR 3.2 million, up 113 percent over the same period last year when it posted a profit of EUR 1.5 million, a press release informs.
However, the regulatory cap the government placed on motor third party liability (MTPL) premiums had a negative effect on overall premium development, -7.5 percent to EUR 131.6 million. The premium also decreases in Austria (-4.2 percent) were due to the ongoing decline in single premium business.
“All our key performance indicators are showing a clear improvement compared to the1st quarter of the previous year and are thus fully in line with our plans. The good economic outlook for both Austria and our Central and Eastern European markets makes us highly confident that we are on course for continued success in 2017,” stated Elisabeth Stadler, Chairwoman of the Managing Board of Vienna Insurance Group, summarising the initial positive interim results for the year.
At group level, total premium volume reached around EUR 2.72 billion in the first three months of 2017, corresponding to an increase of +0.5 percent compared to the 1st quarter of 2016. Single premium life insurance business continued to decline (-22.1 percent). Excluding single premium products, premiums increased by +4.2 percent year-on-year.
Profit was around EUR 110 million, corresponding to an increase of +22.4 percent compared to the 1st quarter of 2016. The companies in the Czech Republic made the largest contribution to group profit, namely 38 percent, followed by Austria (35 percent) and Slovakia (10 percent).
VIG generated a financial result of EUR 247.7 million in Q1 of 2017. This year-on-year increase of +10.6 percent was primarily due to higher current income resulting from full consolidation of the non-profit housing societies.
Highly positive premium development was recorded in the neighbouring countries of Hungary (+46.5 percent), Slovakia (+10 percent) and the Czech Republic (+5.1 percent). In the remaining CEE segment, consisting of Albania, Bosnia-Herzegovina, Croatia, Macedonia, Moldova, Serbia and Ukraine, premiums rose by +12.4 percent, with Serbia and Bosnia-Herzegovina being the fastest-growing markets. The Turkey and Georgia segment also recorded double-digit premium growth of +17.7 percent. Except for Slovakia and Serbia, where growth was driven by life insurance (unit-linked single premium life insurance), the increases were mainly due to property and casualty insurance.
- Advertisement -