VIENNA INSURANCE GROUP AG
No. 08/2015
20 May 2015
"In a very challenging market environment, Vienna Insurance Group managed successfully to achieve positive results in all countries and business lines. Our strong regional ties which give us a close relationship with the markets resulted in certain parts in a significant premium growth."
Peter Hagen, CEO Vienna Insurance Group
Number 1 in core markets with roughly 19 percent market share
In the first quarter of 2015, Vienna Insurance Group wrote consolidated premiums of
about EUR 2.8 billion, representing an increase of 0.9 percent despite the marked decline in single premium policies in life.
Profit (before taxes) reached EUR 130.9 million in the first quarter of 2015. All countries and business lines contributed positively to this result. The historically low interest rates adversely affected current income in the financial result and also made a precaution for personnel provisions in Austria necessary. In addition, interest expense for the subordinated bond issued in March 2015 was recognised for the first time. Furthermore, notably higher expenses were registered in weather related claims than in the same quarter in the prior year. Overall, this led to a decreased result of
15.2 percent.
The combined ratio improved further and stood at
96.3 percent, a very good level.
Vienna Insurance Group's investments (including cash and cash equivalents) rose by 4.0 percent and amounted to EUR 32.4 billion as of 31 March 2015. The Group's financial result amounted to
EUR 273.4 million.
VIENNA INSURANCE GROUP: W iener Städtische (AT) • Donau (AT) • s Versicherung Gruppe (AT, CZ, HR, HU, RO, SK) • Intersig (AL) • Sigma Interalbanian (AL) Bulstrad (BG) • Bulstrad Life (BG) • W iener Osiguranje (BIH) • Kupala (BY) • Kooperativa (CZ) • CPP (CZ) • VIG RE (CZ) • InterRisk (DE) • Compensa Life (EE, LT, LV) GPIH (GE) • IRAO (GE) • Wiener osiguranje (HR) • Union Biztosító (HU) • Vienna Life Biztosító (HU) • Vienna-Life (LI) • Donaris (MD) • Wiener Städtische Podgorica (ME) Winner (MK) • Winner Life (MK) • Makedonija (MK) • Compensa (PL) • InterRisk (PL) • Benefia (PL) • Polisa (PL) • Skandia (PL) • Omniasig (RO) • Asirom (RO) Wiener Städtische Beograd (RS) • Kooperativa (SK) • Komunálna poisťovňa (SK) • Ray Sigorta (TR) • Kniazha (UA) • Globus (UA) • Jupiter (UA) • UIG (UA) Branches: Donau (IT), Wiener Städtische (IT), W iener Städtische (SI)
DVR: 0016705
All countries and business lines make positive contributions to VIG's resultAt the beginning of the financial year 2015, Vienna Insurance Group's strategy of strong regional diversification proved to be successful. All countries and business lines contributed positively to profit (before taxes). Despite the difficult market conditions, the positive earnings performance in Romania, Croatia and Ukraine, among others, should be emphasised. A significant double-digit premium growth was achieved in the Remaining Markets of Vienna Insurance Group.
Around 65 percent
of profit (before taxes) is generated in CEE Stable development in the Austrian market - VIG number 1
In Austria, the Group companies achieved premiums of EUR 1.3 billion. In property and casualty, the strong growth of Wiener Städtische Versicherung offset the further decline in premiums written by Donau Versicherung in Italy. In life, the single premium business declined, while a slight increase was recorded in regular premiums. Profit (before taxes) amounted to EUR 39.6 million; it was adversely affected by the precaution for personnel provisions due to the low interest rate environment,
increased expenses for weather related claims and the high reserve ratio and charges in Italy. The trend in the combined ratio was positive, improving to 98.1 percent.
In the Czech Republic, the Group wrote total premiums of EUR 457.8 million. An increase of
6.6 percent was achieved in motor casco and regular premiums in life grew by 2.7 percent. With profit (before taxes) of EUR 45.8 million, the Group companies in the Czech Republic again made the highest earnings contribution to Vienna Insurance Group in the first quarter of 2015, in spite of increased expenses for weather related claims. The combined ratio stood at an excellent
89.7 percent.
In Slovakia, the Group companies increased premiums to EUR 214.7 million. The success of bank distribution through the local Erste Group subsidiary resulted in a 4.7 percent increase in life premiums. Growth of 2.7 percent was achieved in regular premiums and single premiums increased by 5.8 percent. Profit (before taxes) rose to EUR 9.7 million, while the combined ratio improved to very good 94.5 percent.
Poland - Success in a competitive environment
Vienna Insurance Group's performance in Poland was particularly influenced by the decline in single premiums in life. Without this factor, premium growth of 17.6 percent was achieved. With a plus of
4.3 percent to EUR 16.6 million, profit (before taxes) turned in very encouraging. The combined ratio stood at 98.1 percent.
2
The overall improvement in conditions in the Romanian insurance market enabled intensified sales activities for the first time in years. With a strong increase of 21.7 percent, premiums written grew to EUR 100.3 million.
Romania: Increase in premiums and profit (before taxes)
An increase in premiums of 21.8 percent was achieved in property and casualty.
Premiums in life also rose by 21.1 percent to
EUR 16.6 million, demonstrating the success of the strong partnership in bank distribution with the local Erste Group subsidiary BCR for unit-linked insurance products.
The restructuring measures in Romania are having an effect and resulted in a profit (before taxes) of EUR 1.8 million. In 2015, we will continue to work on the improvement of the combined ratio which is still above the 100 percent mark.
The Remaining Markets region again proved its sustainable potential in the first quarter of 2015. The positive trend in premiums resulted in a climb in business volume of 15.9 percent.
In property and casualty, premiums increased by 8.5 percent to total of EUR 183.2 million, and in life the Group recorded a 29.4 percent rise in premiums to EUR 169.6 million.
The region showed particularly strong growth for the companies in Serbia (+23.7 percent), Turkey (+23.6 percent) and Albania (+17.8 percent).
In March, Vienna Insurance Group issued a subordinated bond in the amount of EUR 400 million. In addition, shares of the 1st tranche of the EUR 500 million hybrid bond, issued in 2008, and the supplementary capital bond 2005-2022, issued in January 2005, were repurchased. These measures contributed to the further strengthening of the Group's capital structure.
3
Consolidated Income Statement (IFRS) 1 January - 31 March 2015
(in EUR mn) | 3M 2015 | 3M 2014 | +/- % |
Gross premiums written | 2,755.9 | 2,731.1 | 0.9 |
Net earned premiums Financial result Other income Expenses for claims and insurance benefits Acquisition and administrative expenses Other expenses | 2,210.6 273.4 28.3 -1,729.8 -509.4 -142.1 | 2,212.6 275.8 27.6 -1,833.8 -469.7 -58.0 | -0.1 -0.9 2.6 -5.7 8.4 >100 |
Profit before taxes | 130.9 | 154.4 | -15.2 |
Taxes Profit for the period | -30.5 100.4 | -32.2 122.1 | -5.4 -17.8 |
Non-controlling interests Net profit after non-controlling interests | -1.6 98.8 | -1.5 120.6 | 9.0 -18.1 |
Earnings per share in EUR (annualized) | 2.94 | 3.62 | -18.6 |
Combined Ratio (net in %) | 96.3 | 96.4 | -0.1pp |
Segment Reporting (IFRS) 1 January - 31 March 2015
Split by lines of business:
Property&Casualty in EUR mn 3M 2015 3M 2014 +/- % | Life 3M 2015 3M 2014 +/- % | Health 3M 2015 3M 2014 +/- % |
Gross premiums written 1,495.7 1,474.4 1.4 | 1,158.5 1,154.1 0.4 | 101.7 102.6 -0.8 |
Profit before Taxes 78.6 94.0 -16.4 | 39.9 48.4 -17.6 | 12.5 12.0 3.9 |
Split by regions:
Austria in EUR mn 3M 2015 3M 2014 +/- % | Czech Republic 3M 2015 3M 2014 +/- % | Slovakia 3M 2015 3M 2014 +/- % |
Gross premiums written Property&Casualty 722.9 721.6 0.2 Gross premiums written Life 520.7 559.4 -6.9 Gross premiums written Health 97.4 94.3 3.2 Gross premiums written Total 1,341.0 1,375.4 -2.5 | 234.5 235.8 -0.5 223.2 230.6 -3.2 457.8 466.4 -1.8 | 103.5 106.9 -3.2 111.2 106.3 4.7 214.7 213.2 0.7 |
Profit before Taxes 39.6 57.7 -31.4 | 45.8 51.0 -10.2 | 9.7 9.4 2.6 |
Combined Ratio (net in %) 98.1 99.8 -1.8pp | 89.7 85.4 4.3pp | 94.5 95.1 -0.6pp |
Poland in EUR mn 3M 2015 3M 2014 +/- % | Romania 3M 2015 3M 2014 +/- % | Remaining 3M 2015 3M 2014 +/- % |
Gross premiums written Property&Casualty 123.4 148.4 -16.8 Gross premiums written Life 114.7 109.3 4.9 Gross premiums written Health Gross premiums written Total 238.1 257.7 -7.6 | 83.7 68.7 21.8 16.6 13.7 21.1 100.3 82.4 21.7 | 183.2 168.8 8.5 169.6 131.1 29.4 4.4 8.2 -47.1 357.2 308.2 15.9 |
Profit before Taxes 16.6 15.9 4.3 | 1.8 0.5 >100 | 17.0 16.8 1.4 |
Combined Ratio (net in %) 98.1 97.8 0.4pp | 104.8 105.8 -0.9pp | 97.1 94.7 2.3pp |
Central Functions in EUR mn 3M 2015 3M 2014 +/- % | Consolidation 3M 2015 3M 2014 +/- % | Total 3M 2015 3M 2014 +/- % |
Gross premiums written Total 371.0 359.2 3.3 | -324.3 -331.4 -2.1 | 2,755.9 2,731.1 0.9 |
Profit before Taxes 0.9 2.7 -65.2 | -0.5 0.3 n.a. | 130.9 154.4 -15.2 |
Net profit after non-controlling interests 98.8 120.6 -18.1
Calculation differences may arise when rounded amounts and percentages are summed automatically. The figures for 2014 have been restated due to changes in the scope of consolidation.
4
Vienna Insurance Group (VIG) is the leading insurance specialist in Austria as well as in Central and Eastern Europe. About 50 companies in 25 countries form a Group with a long-standing tradition, strong brands and close customer relations. VIG looks back on 190 years of experience in the insurance business. With about
23,000 employees, Vienna Insurance Group is the clear market leader in its core markets. It is therefore excellently positioned to take advantage of the long-term growth opportunities in a region with 180 million
people. The listed Vienna Insurance Group is the best-rated company of ATX, the leading index of Vienna Stock
Exchange; its share is also listed on the Prague Stock Exchange.
If you have any questions, please contact:
VIENNA INSURANCE GROUP
Public Relations
Schottenring 30
1010 Vienna
Alexander Jedlicka +43 50 390-21029, alexander.jedlicka@vig.com
Silvia Polan +43 50 390-21064, silvia.polan@vig.com
Julia Thaller +43 50 390-26814, julia.thaller@vig.com
All press releases are available for download: http://www.vig.com
5
|
distributed by
|
