Vienna Insurance Group (VIG) expects all-around positive results based on the preliminary figures for 2016.
“We have achieved all our major targets for 2016. This sends a clear signal of the stability we feel is important to be a reliable partner in times of dynamic change,” emphasized Elisabeth Stadler, CEO of Vienna Insurance Group, at a press conference in the Vienna Ringturm building on 23 March. “You can count on us!”the CEO of Vienna Insurance Group added.
Preliminary premium volume of EUR 9,051 million showed a stable development (+EUR 31 million compared to the previous year). Premiums increased significantly in all lines of business, with the exception of single-premium life insurance (- 19.2 percent). As in the previous year, a restrictive underwriting policy was followed in most markets in this area due to the low interest rate situation.
Without single-premium products, premiums increased + 4.4 percent across all lines of business. “Due to the since years existing low interest rate environment, our focus in the life insurance area is on unitlinked and index-linked life insurance and coverage for biometric risks. Unit-linked and index-linked life insurance increased from 25.5 percent to almost 35 percent of total life insurance over the last five years, and represented 41 percent of new business in 2016,” explained Elisabeth Stadler, according to a press release.
Premiums grew particularly strongly in the Remaining CEE segment (+ 7.9 percent), including contributions from Serbia (+ 18.5 percent) and Croatia (+ 9.4 percent), and in the segments Turkey/Georgia (+ 14.5 percent) and Hungary (+ 9.8 percent). Growth in Romania was exceptional, reaching the highest recorded level of 24.4 percent, in part due to market adjustments.
With respect to profit (before taxes), the target set in the previous year was to at least double the profit achieved in 2015 to up to EUR 400 million. “At EUR 406.7 million, we achieved the top end of our target range, thereby far more than doubling our profit (before taxes),” stated Elisabeth Stadler.
Due to the good results, the Managing Board will propose to the statutory bodies that the dividend for the financial year 2016 be increased from EUR 0.60 in the previous year to EUR 0.80 per share, the press release maintains.
The information for the financial year 2016 will be published with the Group Annual Report 2016 on 19 April 2017.