At the same time, the net financial result has stood at around BGN 243 million (EUR 124.34 million). “The positive performance has been due to the significantly higher profitability of the holding's energy business and the stable performance of the group's insurance subsidiaries”.
The energy business, which operates under Electrohold brand, has improved its profitability regardless of the falling prices on the free market compared to the first half of 2022. In March Electrohold signed a 10-year purchase power agreement with Yettel and CETIN Bulgaria for the supply of electricity from renewable sources. A major part of the consumption under this contract will be provided by the Verila solar power plant (124 MW), which is among the largest ones so far in Bulgaria in terms of installed capacity and is expected to be increased.
Eurohold's insurance business, concentrated in Euroins Insurance Group АD (EIG), has performed steadily after the exit of the Romanian market. In August, Fitch Ratings affirmed ‘B+’ Insurer Financial Strength Rating with stable outlook to Insurance Company Euroins AD (Euroins Bulgaria), the largest subsidiary of Euroins Insurance Group AD (ЕIG). The same rating was affirmed to the reinsurance company of the group - EIG Re AD. Fitch also removed both companies from Rating Watch Negative (RWN). This was due to both their positive performance as well as the assessment of the rating agency that the business of the group’s entities remains stable even after the exit from the Romanian market. In June Fitch confirmed ‘B’ credit rating with stable outlook for the parent company Eurohold and removed the holding from the agency's RWN as well.
“The economic and geopolitical situation in the region has been a challenge for us which we have been largely tackling through operational and strategic measures. We benefit from our development strategy and our diversity in terms of business sectors, products and markets we operate in complex times. Despite the war in Ukraine, the economies in Central and Eastern Europe (CEE) region have performed steadily and shown resilience. Although we have seen signs of economic slowdown, we expect stronger growth on the CEE markets for 2023 compared to the average one in Europe and the eurozone. We are optimistic that the holding will perform well in the rest of the current year,” commented Assen Minchev, CEO of Eurohold.