VIG, FY2016:: Profit (before taxes) of around EUR 407 million confirmed

VIG (Vienna Insurance Group) Annual Report for the 2016 financial, published today, confirms the most important preliminary KPIs. GWP increased to EUR 9,051 million; the profit (before taxes) reached EUR 406.7 million.

The combined ratio was with 97.3 percent at the level of the previous year. The Supervisory Board has in the meantime also confirmed the Managing Board's dividend proposal of EUR 0.80 per share.

Solvency II ratio stable at 195 percent

The Solvency II ratio calculated at the level of the listed VIG Group was 195 percent at the end of 2016. This already includes the call and repayment of around EUR 256 million for the two supplementary capital bonds as of 12 January 2017. VIG's solvency therefore remains at an excellent level.

Group Embedded Value reaches about EUR 6 billion

The Group Embedded Value (after taxes) as of 31 December 2016 was increased to about EUR 6 billion in spite of the low interest rate environment. This reflects the sustainability of Vienna Insurance Group's insurance business. The new business margin once again reached a high international standard of 6.1 percent in the CEE region. The 2.0 percent new business margin in Austria was a clear improvement compared to the previous year.

The Embedded Value is calculated according to international standards as the net asset value of Vienna Insurance Group plus the present value of expected future profits from existing life and health insurance policies. This has been certified by KPMG Austria GmbH.

Adjustments due to goodwill impairments in 2015

Due to an assessment by the Austrian Financial Reporting Enforcement Panel (AFREP) the Group shareholders' equity was adjusted by around EUR 90 million due to changes in the goodwill recognised in Romania, Croatia, Hungary and Albania/Kosovo. Profit (before taxes) in the 2015 financial year declined by the same amount. According to AFREP, the method that VIG used to determine the interest rate for calculating the value in use of the cash generating units (CGUs) was not IFRS-compliant because VIG used a peer group financing structure that did not verifiably reflect the asset-specific risk of the CGUs.

The VIG Annual Report is available here.

Related articles

MUNICH Re expects to generate a profit of EUR 2.1-2.5 billion in 2018

MUNICH Re announced it has raised its profit guidance compared with the previous year and is expecting to generate a profit of EUR 2.1-2.5 billion in 2018. The Company also announced that it would buy back another EUR 1 billion worth of shares before the Annual General Meeting in 2019.


GENERALI Group reports record annual operating result

GENERALI Group reported FY net profit of EUR 2.11 billion, up by 1.4% y-o-y, while its operating result amounted to a record of EUR 4.89 billion (2.3% more y-o-y) "thanks to the positive performance of the life segment and the Investments, Asset & Wealth Management business and to the cost reduction reached two years ahead of schedule (-EUR 200 million in mature markets)".



AON UK Ltd appoints new Chief Risk Officer

AON UK Ltd has confirmed the appointment of Matt KIMBER as Chief Risk Officer (CRO). Matt KIMBER has joined AON from JARDINE LLOYD THOMPSON Group (JLT), replacing John NICHOLSON who has been interim CRO for the last 11 months.


New Head of Investor Relations at AEGON

Jan Willem WEIDEMA has been appointed as the new Head of Investor Relations at AEGON. He succeeds Willem van den BERG who has led the Investor Relations team over the past 7 years.



"Insurance and Pensions reloaded" - the 7th EIOPA Annual Conference

The 7th EIOPA Annual Conference takes place today in Frankfurt am Main, Germany. A review of the current supervisory covergence issues and of the prospects of the Pan European Personal Pension Product are on the event's agenda, together with analyzing the ways in which regulation may enable innovation.



"IIF2017 - Insurance in the DIGITAL World" Conference took place in Vienna

"IIF2017 - Insurance in the DIGITAL World" conference brought together in Vienna well-known insurance professionals from all over the world who analyzed the latest digital trends in the industry, taking into account the fast digitalization of the financial services providers' world, in particular in the insurance field, which is creating both huge opportunities and strong challenges for the players.



Croatian Insurance Days Live

On 9 November has started in Opatija, Croatia, the 2017 edition of the Croatian Insurance Days Conference, the traditional meeting of the Croatian insurance top professionals with their European peers. XPRIMM Publications are supporting the event as Media Partners.



The 2017 Baden Baden Meeting: Short recap

The Baden-Baden meeting, one of the key events in the reinsurance calendar, has just set the final point of this year's edition. XPRIMM Publications have reported from the meeting's premises. Let's recap!


Baden Baden Headlines 3: CEE insurance markets are attractive for reinsurers

Central and Eastern Europe insurance markets are an important source of business for Lloyds, total premium income from this region increasing by EUR 64 million since 2010, pointed out the Lloyd's representative in a seminar dedicated to CEE insurance markets: "We are seeing strong growth from Czech Rep, Poland, Slovakia and Ukraine. At the same time are some contractions from Russia, Bulgaria, Romania and Hungary due to challenging trading conditions as political implications and other sanctions".


See all