Capital market developments are being closely monitored by VIG. The coronavirus crisis is mainly affecting the VIG Group through its effects on capital market performance. There have also been some decreases in new business that could not be compensated by a simultaneous increase in online business.
- Gross written premiums: EUR 3,118 million (+7.2%), of which:
- GWP Austria: EUR 1,365 million (+6.7%)
- GWP Czechia: EUR 466 million (+2.4%)
- GWP Slovakia: EUR 220 million (+4.8%)
- GWP Poland: EUR 313 million (+25.2%)
- GWP Romania: EUR 126 million (+8.6%)
- GWP Baltics: EUR 131 million (-1.7%)
- GWP Hungary: EUR 99 million (+21.6%)
- GWP Bulgaria: EUR 62 million (-6.5%)
- GWP Turkey/Georgia: EUR 72 million (+26.3%)
- GWP Remaining CEE: EUR 127 million (+17.9%)
- GWP Others: EUR 77 million (-2.2%)
- Total income: EUR 2,715 million (+6.3%)
- Total expenses: EUR 2,593 million (+6.8%)
- Combined ratio: 95.1% (-1.7 pp.)
- Result before taxes: EUR 122 million (-4.4%)
- Net profit: EUR 86 million (+2.8%)
The Austria (+EUR 86 million) and Poland (+EUR 63 million) segments recorded the highest absolute premium increases, while Turkey/Georgia (+26.3%), Poland (+25.2%) and Hungary (+21.6%) grew the most in relative terms.
The first quarter of 2020 closed on a positive note, with a somewhat lower profit (before taxes) of EUR 121.9 million (-4.4%) and a slightly higher net profit (after taxes and non-controlling interests) of EUR 85.8 million (+2.8%), despite initial dampening effects of the COVID-19 pandemic.
The claims ratio was significantly lower year-on-year in the first quarter of 2020, leading to a combined ratio of 95.1% (1Q2019: 96.8%). The Baltic states (-7.8 pp. to 92.1%), Slovakia (-5.1 pp. to 91.3%) and Turkey/Georgia (-7.5 pp. to 93.7%) segments showed major improvements in the combined ratios.
The financial result (excl. the result from at-equity consolidated companies) amounted to EUR 136 million in the first quarter of 2020, 25% less than the same period in the previous year. This was primarily due to deconsolidation of the non-profit housing societies on 31 July 2019, and increased impairment of investments. Group investments including cash and cash equivalents were EUR 34.7 billion as of 31 March 2020.
"We recorded a very good start into the year, with a significant increase in premiums. This was due to strong performance in the months of January and February 2020 that significantly compensated for the initial effects of the restrictions implemented starting in the middle of March in the battle against COVID-19. Premium losses due to a decrease in new business will primarily be noticeable starting in the second quarter of 2020 and are expected to continue for the remainder of the financial year."