VIG, 1Q2019: Net result improved by 10.5%

23 May 2019 — Cosmin CONCEATU
In the first quarter of 2019, Vienna Insurance Group (VIG) saw an increase of 2.9% in GWP, compared to the first quarter of 2018. Profit before taxes also increased by 8.7%, while the net result increased by 10.5%.

First quarter 2019 highlights (compared to 1Q2018)

  • Gross written premiums: EUR 2,908.2 million (+2.9%)
  • Net earned premiums: EUR 2,303.0 million (+4.5%)
  • Claims and insurance benefits: EUR 1,756.6 million (+1.1%)
  • Result before taxes: EUR 127.5 million (+8.7%)
  • Net result: EUR 83.5 million (+10.5%)
  • Combined ratio: 96.8% (+0.6 pp.)

Gross written premiums (GWP)
reached EUR 2.9 billion at VIG, up by 2.9% compared to the same period of the previous year. The highest growth in GWP was seen in health insurance (+9.6%) and Motor Hull (+8.6%) in contrast to the MTPL premium reduction of 4.2%. Property insurance was by far the weightiest insurance class in VIG's portfolio, accounting for about 50% of total GWP, followed by life insurance with a weight of about 24% (for life regular business only; life regular together with life single accounted for about 32% of the Group's portfolio).

Looking at each region side by side, premium growth drivers were the Baltic States (+EUR 36 million), Central Functions (+EUR 22 million), Bulgaria (+EUR 21 million), Poland (+EUR 17 million) and Remaining CEE (+EUR 15 million). Czech Republic GWP volume decreased due to less property business (-EUR 22 million), while in Romania premiums decreased due to the planned reduction in MTPL insurance line (-EUR 31 million).

The combined ratio stood at 96.8% at Group level, indicating a slight increase of 0.6 percentage points. While most regions where VIG is active recorded underwriting profit, in the first quarter of 2019 there were 4 countries where the combined ratio indicator exceeded the 100% margin, namely: Romania, Turkey, Bosnia & Herzegovina (a +30 pp. change, pushing the indicator to 112.2%) and Moldova.

Profit before taxes amounted to EUR 128 million, a y-o-y increase of 8.7%. Austria, Slovakia and Poland made large contributions to this positive result. Profit after taxes (and non-controlling interests) reached EUR 83.5 million, up by 10.5%.

Group investments (including cash and cash equivalents) amounted to EUR 38.7 billion, showing an increase of 2.8% compared to the first quarter of previous year.

Elisabeth STADLER, CEO of Vienna Insurance Group, commented on the results:

"We can look back on a successful first quarter of 2019, with results that are clearly in line with our expectations. Therefore, we maintain our targets to achieve a premium volume of EUR 9.9 billion and profit (before taxes) of EUR 500 to 520 million in 2019."

More financial information about VIG's first quarter performance can be found here:

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