EUROHOLD Bulgaria, H1 2020 results: insurance revenues offset the reduced incomes from leasing and sales sales due pandemic

29 September 2020 — Andrei Victor
Bulgarian financial group EUROHOLD, increased its H1 2020 revenues by the insurance business line in the context of the COVID-19 pandemic, according to the holding's consolidated financial statement for the period January-June 2020.

On the other hand, for the same period, the total revenues of UROHOLD reached BGN 769 million (~EUR 395 million), that is a drop of 2% on an annual basis. The operating profit (EBITDA) of the company exceeded BGN 16 million (~EUR 8.2 million) and it is BGN 4 million less compared to the first six months of 2019.

The Bulgarian holding mentioned that as expected in the context of the COVID-19 pandemic and due to the limited economic life, the leasing and automobile business of UROHOLD, operating under the brands EUROLEASE Group and AVTO Union, "reduced their incomes but reported operating profit. The financial and investment activity, concentrated in EURO-FINANCE AD, contributes positively to the results of the group".

"The financial results were achieved in the conditions of unprecedented emergency measures due to the COVID-19 in Bulgaria, Greece, Northern Macedonia, Romania and Ukraine, where the holding operates there through its subsidiaries. At the end of June the company's assets exceeded BGN 1.5 billion, that is by 2% higher compared to the end-2019 figure", as the company mentioned in a statement.

EUROINS Insurance Group (EIG) - UROHOLD's insurance arm, contributed the most to the growth of the holding company. Revenues generated by the insurance business line increased by 4% year-on-year (y-o-y) to nearly BGN 685 million. Revenues of EIG's insurance premiums increased by 7% to BGN 438 million, thanks to the expansion of the group in Southeastern Europe. Per branches, EUROINS Romania, the largest company within EIG's structure, reported a 5.5% premium increase to nearly BGN 270 million. At the same time, EUROINS Bulgaria, the second largest subsidiary increased its premium income by 6% on an annual basis up to BGN 125 million and reported a pre-tax profit of BGN 3 million.

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