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The ongoing restructuring and recent improvements in the market situation have returned Vienna Insurance Group (VIG) to earnings area in Romania last year.
„VIG was aware that this sustainability-oriented restructuring of the portfolio would cause a decrease in premiums. The Group nevertheless remains the market leader in the Romanian insurance market with a market share of 19.5 percent. Although the combined ratio was dramatically reduced, it still remains above the 100 percent mark,” a press release reads.
The Czech Republic earned the Group’s highest profit (before taxes) with EUR 178 million. Romania returned to the earnings area with a profit (before taxes) of EUR 6 million.
The leading insurance group in Austria and the CEE region earned EUR 9.1 billion in Group premiums under challenging conditions in the financial year 2014. This was an increase of 0.9 percent when adjusted for currency effects, and was achieved in spite of a further decrease in short-term single-premium business in Poland and reductions in the Italian and Romanian portfolios due to optimisation measures.
“Vienna Insurance Group benefits from expansion into the CEE region. The Group companies in this region generated almost two thirds of the Group result in 2014,” Peter Hagen, CEO VIG said.
The Austrian-based Group raised its profit (before taxes) by 46 percent to EUR 518.4 million. The share of profit contributed by the CEE region grew to about 64 percent.
For the first time since 2011, all lines of business and regions provided positive contributions to profit.
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