VIG’s total gross premiums gain 24.4 pct to EUR 533.4 mln, in Romania, in 2016

Georgiana Bendre 23/03/2017 | 11:32

Vienna Insurance Group (VIG) said that the total gross premiums recorded in Romania reached EUR 533.4 million in 2016, up by 24.4 percent compared to 2015. Also, the profit before taxes was EUR 3.5 million in 2016.

Overall, at group level, the premiums increased to around EUR 9.1 billion and the  profit (before taxes) more than doubled to around EUR 407 million. The proposed dividend increased to EUR 0.80 per share.

For Agenda 2020, VIG expects all-around positive results based on the preliminary figures for 2016.

“We have achieved all our major targets for 2016. This sends a clear signal of the stability we feel is important to be a reliable partner in times of dynamic change,” said Elisabeth Stadler (in photo) at a press conference in the Vienna Ringturm building on March 23.

Preliminary premium volume of EUR 9 billion showed a stable development (+EUR 31 million compared to the previous year). Premiums increased significantly in all lines of business, with the exception of single-premium life insurance (- 19.2 percent).

Without single-premium products, premiums increased + 4.4 percent across all lines of business.

“Due to the since years existing low interest rate environment, our focus in the life insurance area is on unitlinked and index-linked life insurance and coverage for biometric risks. Unit-linked and index-linked life insurance increased from 25.5 percent to almost 35 percent of total life insurance over the last five years, and represented 41 percent of new business in 2016,” said Stadler.

Premiums grew particularly strongly in the Remaining CEE segment (+ 7.9 percent), including contributions from Serbia (+ 18.5 percent) and Croatia (+ 9.4 percent), and in the segments Turkey/Georgia (+ 14.5 percent) and Hungary (+ 9.8 percent). Growth in Romania was exceptional, reaching the highest recorded level of 24.4 percent, in part due to market adjustments.

VIG generated a financial result of EUR 959 million in 2016. This represented a 7.8 percent year-on-year decrease that was mainly due to lower realised gains on the disposal of investments in bonds, loans and equities.

Photo: www.vig.com

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