VIG first half pre-tax profit in Romania at EUR 1 mln despite drop in premiums

Austrian Vienna Insurance Group (VIG) has returned in the black in Romania posting a pre-tax profit of EUR 1 million in the first months of this year, despite a drop in gross written premiums as part of portfolio restructuring. The insurer had reported a loss of EUR 17.9 million in the same period of last year.

VIG, which controls locally Omniasig, Asirom and BCR Asigurari de Viata, has seen a 10.6 percent decrease of gross written premiums in the property & casualty segment to EUR 137.7 million. In the life segment, the gross written premiums lost 34.9 percent to EUR 27.5 million. Total gross written premiums lost 15.8 percent to EUR 165.2 million.

The combined ratio, which is the ratio between the amount of money VIG collected in premiums and what it paid for claims, shrank by 9.8 percentage points to EUR 108.3 million. At group level, the combined ratio was slightly reduced to 97.1 percent.

VIG has reported a group profit of EUR 290.9 million in the first six months, up 41.4 percent against the same period of last year. More than half of the profit was generated in Central and Eastern Europe. The premiums remained stable at EUR 5 billion.

Ovidiu Posirca

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