Bulgarian EUROHOLD maintains its revenues at a stable level in Q3 2020

2 December 2020 — Andrei Victor
Bulgarian financial holding EUROHOLD Bulgaria, - the shareholder of EUROINS Insurance Group - one of the main players in CEE/SEE/CIS region, increased its revenues and maintained its operating profit in a challenging period in the context of the COVID-19 pandemic, according to the holding's consolidated financial statement for the first nine months of 2020.

Shortly, the end-sptember main financial indicators at the group level were as follows:
  • Total revenue increased by 3% to BGN 1.21 billion (~EUR 620 million)
  • Assets grew by 10% to BGN 1.66 billion (~EUR 0.85 billion)
  • EIG increased its premium volume by slightly over 7% to BGN 661 million (~EUR 340 million)
  • Financial services' revenues rose by 63% to BGN 6.6 million (~EUR 3.4 million)
  • Operating profit decreased by 29% to BGN 18.1 million (~EUR 9.25 million)

According to the holding press release, the insurance business of UROHOLD, contributed significantly to the stable financial results. Revenues generated by the insurance business line increased by over 10% year-on-year (y-o-y) to nearly BGN 1.06 million.

EIG's gross insurance premium grew by just over 7% to BGN 661 million. According to the company representatives, the growth was due to "the expansion of the group in Southeast Europe and the successful integration of the newly acquired companies in the sector".

EIG's key subsidiaries managed to increase their revenues during the first nine months of 2020.
  • EUROINS Romania, the largest company within EIG's structure, booked a 4% rise of its GWP to just over BGN 400 million.
  • EUROINS Ukraine grew its premium by 28% compared to the first nine months of 2019 and it amounted to BGN 16 million, as well as the subsidiary reported a pre-tax profit of BGN 2.5 million.
  • EUROINS Bulgaria increased its premium income by 11% y-o-y to BGN 195 million and reported a pre-tax profit of BGN 5.9 million.
  • EUROINS Georgia reportd 59% growth on an annual basis of its GWP to BGN 11.6 million.
  • EUROINS Russia achieved a gross premium of BGN 32 million and pre-tax profit of BGN 1.4 million.

European Travel Insurance (ERV), EIG's subsidiary specialized in travel insurance, which has been the most affected by the COVID-19 pandemic, posted a decline of 49% y-o-y of its written premium to BGN 8.4 million, but report a profit of BGN 2.9 million after diversification of the product portfolio and cost optimization.

In the context of the diminishing economic growth and global decline in spending for durable goods, the leasing and automotive business of UROHOLD, operating under the brands EUROLEASE Group EAD and AVTO Union AD, registered lowered turnover but still booked a y-o-y growth of their EBITDA (see the table below). The financial and investment services, concentrated in EuroFinance AD, contributed positively to the increase of the group's revenues, accumulating a 63% rise y-o-y to more than BGN 6.6 million.

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