Profit statements

VIG increases pre-tax profit in Bulgaria by 50% year-on-year in the first half

SOFIA (Bulgaria), Aug 18 (SeeNews) – Austria’s Vienna Insurance Group (VIG) said on Thursday it recorded a pre-tax profit of 20.9 million euros ($21.2 million) on its operations in Bulgaria in during the first six months of 2022, up from a pre-tax profit of 13.9 million euros a year earlier.

VIG’s strong overall half-year result was driven by a particularly strong improvement in its combined ratio in Bulgaria, as well as in Albania and Kosovo, VIG said in its half-year financial statements.

In Bulgaria, the insurer’s net combined ratio, a measure of profitability expressed as the ratio of total costs to total revenues, stood at 78% in the first half of the year compared to 87% in the first half of 2021. total, Austria, Poland and the broader segments of Central and Eastern Europe (CEE), particularly Albania and Kosovo, contributed the most to the total improvement in the combined ration of VIG by 0.9 percentage points. percentage (pp) at 94%.

Gross written premiums (GWP) of VIG in Bulgaria increased by 16.4% year-on-year to EUR 132.9 million in the first half, mainly due to a 36% increase in health insurance in during the period considered. Individual and regular life insurance premiums also recorded significant increases, of 32% and 30.1% per year, to €7.5 million and €22 million, respectively. Gross written premiums of VIG’s largest segment in the country, Casco insurance, increased by 18% to EUR 40.1 million.

Net premiums earned from VIG in its extended CEE segment, which includes Albania, Kosovo, Bosnia and Herzegovina, Bulgaria, Croatia, Moldova, North Macedonia, Romania and Serbia as well as Ukraine , rose 14% over the year to reach 1.22 billion euros in January. -June period. Net profit for the whole segment increased by 3.2% to 70.3 million euros, affected by certain impairment charges as well as measures to hedge financial exposure through Russian investments .

“We are still living in very difficult times, marked mainly by the war in Ukraine, high inflation and the pandemic, which continues to have its effects. Although these influences – which also have an impact on the insurance sector – darken the economic outlook, VIG Group continues to show very strong resilience, which is once again evident in the improvement in key figures”, commented CEO Elisabeth Stadler. She added that the half-year results of VIG indicate a positive operational performance in 2022 as a whole.

VIG is active in the Bulgarian insurance market through Bulstrad Life and the non-insurers Bulstrad and Nova Ins. She also has a stake in Doverie, the largest Bulgarian pension insurance company.

($ = 0.9842 euros)

Bulstrad Vienna Insurance Group AD is one of the largest insurers in South Eastern Europe. For more references, see the Top 100 insurers