In the first quarter of this year, the Vienna Insurance Group obtained in Romania a pre-tax profit of EUR 2 million, down 51.1 percent in the first quarter of this year, according to a press release. In the first three months of 2019, the Vienna Insurance Group reported for Romania gross written premiums worth EUR 115.9 million, down 20.9 percent over the same period last year.
The group, operating in over 10 countries, increased its total premiums to EUR 2.9 billion, up 3 percent, and the pre-tax profit increased to EUR 127.5 million, up 9 percent. The combined ratio was 96.8 percent, up 0.6 percentage points due to weather conditions.
“Looking back, we can see a first quarter of success, with results in line with our expectations. So, we keep our 2019 targets, namely a EUR 9.9 billion euros subscription premium and a pre-tax profit, EUR 500-520 million,” explained Elisabeth Stadler, CEO of Vienna Insurance Group.
Health insurance registered the fastest growth rate of premiums of about 10 percent. Life premiums with single premiums, which had a slight quarterly decrease of about 2 percent in the first quarter, are improving at this time, an expected trend after significant declines that were deliberately recorded in the past. Markets in Bulgaria, the Baltic countries, Hungary and Poland contributed especially to premium growth in the first quarter of 2019.
Profit (before tax) amounted to EUR 127.5 million, an annual increase of 8.7 percent. The markets in Austria, Slovakia and Poland have contributed significantly to profit growth. Profit (after taxes and minority interests) increased by 10.5 percent to EUR 83.5 million.
“As expected, the storms that took place in Austria and the Czech Republic at the beginning of 2019 led to the increase of the compensation expenses compared to the previous year. The combined rate rose marginally by 0.6 percentage points to 96.8 percent. Slovakia’s markets (-4.0 percentage points) and Bulgaria (-3.1 percentage points) recorded a positive dynamics of the combined rate. The financial result stood at EUR 186.6 million in the first quarter of 2019. This means a year-on-year decrease of 21.7 percent mainly due to a reduction in earnings on disposal of investments. The Group’s investments, including cash and cash equivalents, totaled EUR 38.7 billion at 31 March 2019 (+ 2.8 percent 2018),” show the press release.