“Vienna Insurance Group also recorded good results in the Romanian insurance market, which has been difficult for a number of years. The Group companies in Romania increased premiums by a remarkable 37.3 percent in the first half of 2016. This was primarily due to the motor insurance business, which is currently moving in a positive direction. In life insurance, VIG signed an agreement at the beginning of August to acquire the Romanian AXA Life company (subject to approval by the authorities), a further step that will expand its market leadership,” VIG said in its report.
VIG owns in Romania BCR Viata, Asirom, Omniasig and AXA Life Insurance SA.
VIG generated EUR4.9 billion in Group premiums in the first six months of 2016, representing a slight increase of 0.4% compared to the previous year. Profit (before taxes) was EUR201.3 million, down 17%.
“We announced a target of doubling the profit achieved last year to up to EUR 400 million and our half-year results show we are on course to achieve this goal, even though the low interest rate environment has not changed and continues to have a negative effect on our financial result,” said Elisabeth Stadler, CEO of Vienna Insurance Group. The financial result was EUR449.5 million (-13.2%).
Group investments including cash and cash equivalents were EUR 32.3 billion (+3.2%) as of the first half of 2016. VIG’s goal of achieving a market share of at least 10% in four markets over the medium term is also proceeding according to plan. Except for Poland where, among other things, the ongoing reduction in single-premium life insurance put downward pressure on premium volume, Hungary (premium increase of 15.4%), Croatia (+6.2%) and Serbia (+12.1%) showed clear gains, according to the report.
In July, the international rating agency Standard & Poor’s once again confirmed Vienna Insurance Group’s “A+” rating with a stable outlook in July 2016. The Solvency II ratio at the level of the listed VIG Group was 196% at the end of 2015. VIG therefore continues to be among the leading international insurance groups with regard to solvency.