Austrian insurer Vienna Insurance Group (VIG) ended the first nine months of the year with a profit before taxes of EUR 2.6 million in Romania, according to the company’s recent financial results. In the same period the previous year, the insurer recorded losses of EUR 36.1 million in Romania.

VIG’s gross premiums underwritten in Romania totalled EUR 243.8 million in the period between January and September, down 11.2% from EUR 274.6 million reported the year before. The decline was registered mainly due to the life insurance segment, which dropped by 36.5% to EUR 35.3 million. In the first nine months of 2013, the company’s gross written premiums on this segment totalled EUR 55.6 million.

The property & casualty gross written premiums amounted to EUR 208.6 million in this period, down 4.8% year-on-year.

“25 years after entering Central and Eastern Europe, our group companies there now generate around 57% of the profits of Vienna Insurance Group. I am convinced that this remarkable development will continue over the long term in this region," said Peter Hagen, CEO Vienna Insurance Group.

VIG is one of the largest players on the Romanian insurance market. The group controls local general insurers Omniasig, Asirom and life insurer BCR Asigurari de Viata.

At a group level, VIG’s profit before taxes amounted to EUR 430.8 million in the first nine months of 2014, up 36.4% compared to the same period in 2013. The premiums’ value stayed at some EUR 7 billion, in spite of significant negative exchange rate effects, according to the company. When adjusted for these effects, premiums increased by 1.7 percent.

The company’s profit before taxes increased by 9.5% in CEE markets and by 14.2% when adjusted for exchange rate effects.

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Irina Popescu, irina.popescu@romania-insider.com