The FINANCIAL -- Despite the very challenging market environment, Vienna Insurance Group recorded a sound development of premiums, according to Vienna Insurance Group.
Consolidated premiums written amounted to EUR 7.1 billion (-5.1 percent) in the first three quarters of 2013. The decline of premiums is mainly due to the planned reduction of the short-term single-premium business in Poland as well as of the motor business in Italy. Without special effects, Vienna Insurance Group reported a growth in premiums of about 2 percent.
Against the background of intensive competition, premiums of EUR 3.6 billion were earned in the property/casualty insurance. This corresponds to a decline by 1.9 percent in this segment, which has in particular been due to the strategic downsizing of the motor business in Romania and Italy, according to Vienna Insurance Group.
The development of premiums in the life insurance business remained under the impact of the restraint in the short-term single-premium business in Poland. The Group earned premiums of EUR 3.1 billion (-9.0 percent) in this segment. Adjusted for the effect in Poland, growth amounted to 2.8 percent. Regular premiums increased by 1.3 percent, with double-digit growth rates achieved in this sector in many CEE countries.
Premiums in health insurance continued to grow to a total of EUR 303.7 million (+1.8 percent), according to Vienna Insurance Group.
“The development of Vienna Insurance Group shows that the strategic focus on the markets of the CEE region is very successful – despite the problems in the Romanian market. The Group is positioned excellently in this promising region and earnings in the insurance business are increasing practically in all CEE markets. Our Group companies achieve high double-digit profit growth rates in the core markets Poland, Croatia and Ukraine. In Turkey as well as Bulgaria, two challenging markets, Vienna Insurance Group continues its positive trend after the turnaround of the result”, explained Peter Hagen, CEO of Vienna Insurance Group.
The profit (before taxes) of the Group amounted to EUR 315.9 million, and the combined ratio stood at 100.6 percent. The adjusted result – excluding special effects from Romania and Italy – totalled EUR 458.0 million (+3.3 percent).
The 3rd quarter was characterised by a significant improvement of the profit (before taxes) to EUR 110.2 million, as compared to EUR 46.3 million in the previous quarter of 2013, according to Vienna Insurance Group.
Despite heavy losses in Romania, the result in the CEE countries developed favourably. The profit (before taxes) increased by 4.5 percent. Substantial contributions were made by the remaining CEE markets (+93.5 percent) and Poland (+54.3 percent).
The financial result of the Group amounted to EUR 892.1 million in the first three quarters of 2013. The investments, including cash and cash equivalents, totalled EUR 29.5 billion as of 30 September 2013, according to Vienna Insurance Group.