EIG: The prudent approach applied in Romania, influenced the year-end group indicators

5 March 2019 — Andrei Victor
Bulgarian financial group EUROHOLD said its revenues from insurance activity at the end of December 2018 amounted to BGN 985.3 million (EUR 503.8 million), 2% less y-o-y. The insurance operating expenses for the period under review increased by 0.6% y-o-y to BGN 924.9 million (EUR 472.9) compared to BGN 919.2 million at the end of 2017.

At the same time, the Bulgarian holding informed that EUROINS Insurance Group realized a consolidated operating profit in amount of BGN 60.4 million (EUR 30.9 million) compared to BGN 85.9 million as of 31.12.2017.

In terms of GWP, EIG generated aggregate premiums written of BGN 643.3 million (EUR 328.9 million) compared to BGN 645.5 million in 2017. "The reason for this insignificant decrease is the business written by EUROINS Romania. All other subsidiaries have registered growth", as the Bulgarian holding informed in its yea-end preliminaru report. It is worth to mention, the Romanian subsidiary generated FY2018 GWP of about BGN 425 million, about two thirds of total GWP reported by the group.

Overall, the Group has reported an unaudited consolidated profit of BGN 12.6 million (EUR 6.4 million) before taxation compared to a profit of BGN 43.6 million in 2017, which is down to "the changes in the market development in Romania, where the EIG subsidiary has chosen to have a conservative pricing policy with no aspirations to expand at all costs. At the same time aiming to maintain high quality of the services provided the company has continued to register and pay claims at the same pace as in 2017, which ultimately led to lower net earned premiums and higher net incurred claims".

Click here to read the full FY 2018 interim report.

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