Vienna Insurance Group Wiener Versicherung Gruppe

EANS-News: Vienna Insurance Group Wiener Versicherung Gruppe
Half Year Results 2016: Vienna Insurance Group right on track

--------------------------------------------------------------------------------
  Corporate news transmitted by euro adhoc. The issuer/originator is solely
  responsible for the content of this announcement.
--------------------------------------------------------------------------------
Subtitle: "A+" rating with stable outlook confirmed again

Financial Figures/Balance Sheet/Half Year Results 2016

- Premiums rise to EUR 4.9 billion 
- Profit (before taxes) of EUR 201.3 million
- Combined ratio of 97.9 percent clearly below the 100 percent mark


Vienna Insurance Group's half year results for 2016 are right on target. VIG
generated EUR 4.9 billion in Group premiums, representing a slight increase of
0.4 percent compared to the previous year. The restrictive underwriting policy
used for single-premium life insurance in many markets continued to have an
effect on total premium income. When adjusted for single premium business, total
premiums even grew by 4.5 percent in the first six months of the current year.
 
Profit (before taxes) was EUR 201.3 million. "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 EUR 449.5 million (-13.2 percent).
 
The Group's combined ratio of 97.9 percent after reinsurance (not including
investment income) remained clearly below the 100 percent mark during the
reporting period.
 
Group investments including cash and cash equivalents were EUR 32.3 billion
(+3.2 percent) as of the 1sthalf of 2016.
 
The international rating agency Standard & Poor's once again confirmed Vienna
Insurance Group's "A+" rating with a stable outlook in July 2016. VIG therefore
continues to have the best rating of any company listed in the ATX Index.
"Standard & Poor's based its "A+" rating primarily on our leading market
position and high level of financial flexibility, which also gives us security
during periods of unexpected market turbulence. Standard & Poor's believes we
will be able to maintain our market leadership in Austria and Central and
Eastern Europe. We are pleased that the stable outlook was also confirmed,"
concluded Elisabeth Stadler.
 
VIG current market news
VIG's goal of achieving a market share of at least 10 percent 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 percent), Croatia (+6.2 percent) and Serbia (+12.1 percent) showed clear
gains. "In Croatia, significant gains were achieved, particularly from growth in
the life insurance, bringing us close to our minimum target of a 10 percent
market share. We recently signed a purchase agreement for the AXA companies in
Serbia and will soon pass our target by reaching a market share of around 12
percent, once the acquisition has been approved by the authorities," said
Elisabeth Stadler, confirming the strategy followed for these markets. 
 
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. 
 
Change to measurement of the non-profit housing societies
The half-year results for 2016 already include the adjustments and comparative
values for 2015 based on the notice recently received from the Austrian
Financial Market Authority (FMA).VIG has now regained a controlling influence
over the non-profit housing societies. The future full consolidation of the
shares held in this nine companies will not show an effect until the financial
statements for the third quarter of 2016.

Solvency II ratio of 196 percent
The change in measurement of the non-profit housing societies has no effect on
the calculation of the Solvency II ratio. This calculation is performed based on
the partial internal model that was approved by the FMA, which only includes the
future payouts made by the non-profit companies.
The Solvency II ratio at the level of the listed VIG Group was 196 percent at
the end of 2015. VIG therefore continues to be among the leading international
insurance groups with regard to solvency.

Further inquiry note:
VIENNA INSURANCE GROUP AG
Wiener Versicherung Gruppe
1010 Wien, Schottenring 30

Wolfgang Haas 
Head of Group Communications & Marketing, Spokesperson of the Group
Tel.: +43 (0)50 390-21029 
Fax: +43 (0)50 390 99-21029 
E-Mail: wolfgang.haas@vig.com

Nina Higatzberger-Schwarz
Head of Investor Relations
Tel.: +43 (0)50 390-21920
Fax: +43 (0)50 390 99-21920
E-Mail: nina.higatzberger@vig.com

end of announcement                               euro adhoc 
--------------------------------------------------------------------------------


company:     Vienna Insurance Group Wiener Versicherung Gruppe
             Schottenring 30
             A-1010 Wien
phone:       +43(0)50 390-21919
FAX:         +43(0)50 390 99-23303
mail:     investor.relations@vig.com 
WWW:      www.vig.com
sector:      Insurance
ISIN:        AT0000908504
indexes:     WBI, ATX Prime, ATX
stockmarkets: official market: Wien, stock market: Prague Stock Exchange 
language:   English
 

Original-Content von: Vienna Insurance Group Wiener Versicherung Gruppe, übermittelt durch news aktuell

Weitere Meldungen: Vienna Insurance Group Wiener Versicherung Gruppe

Das könnte Sie auch interessieren: