Austrian group Vienna Insurance Group (VIG), the leader of the insurance sector in Romania, recognized a EUR 50 million goodwill impairment for its Romanian companies as “the current market trend and tense political situation prompted the management to review planning data for future developments”, the group announced.

This led to a loss before taxes of EUR 43.1 million from the group’s Romanian operations, despite a 5.5% increase in gross premiums written, to EUR 272.7 million, in the first half of 2018.

“Without the impairment, the result would have increased by 20.7% in Romania,” reads the group’s half-year report.

Overall, VIG reported a 3.6% rise in gross premiums, to EUR 5.2 billion, and a 5.5% higher profit before taxes, at EUR 233 million, despite impairment in Romania.

editor@romania-insider.com