VIG H1 pre-tax loss triples to EUR 18 mln on precautionary measures

Vienna Insurance Group (VIG), the Austrian insurer, said on Thursday it tripled pre-tax losses in Romania to EUR 17.9 million in the first semester against the same period of last year, citing precautionary measures.

The VIG, which controls local insurers Omniasig VIG, Asirom and BCR Life, registered a 16.8 percent fall in premiums to EUR 196.3 million, out of which EUR 154 million were generated in the non-life segment. The group reported premiums worth EUR 42 million in the life segment, down 18 percent year-on-year.

“In view of the continuing difficult situation in the Romanian insurance market, the management of Vienna Insurance Group has revised its assessment of the medium-term development opportunities in Romania,” said the insurer in a statement.

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“In line with the Group’s traditionally cautious valuation policy an extraordinary mid-year impairment test of the goodwill of the segment Romania non-life was made, based on current data of the first six months of 2013. This test led management to effect an impairment of the goodwill in the size of EUR 75 million,” added the VIG.

The group’s overall pre-tax profit lost 31.9 percent to EUR 206 million, while written premiums amounted to over EUR 5 billion.

Ovidiu Posirca