Vienna insurance group: 1st-3rd quarter of 2013

  • Positive development of the Group’s result affected by heavy losses in Romania and Italy
  • Premiums of about EUR 7.1 billion (-5.1 percent)
    Adjusted for special effects, increase by 2 percent
  • Profit before taxes of EUR 315.9 million (-28.8 percent)
  • Considerable improvement in the result of the 3rd quarter, compared to the 2nd quarter 2013
  • Successful issue of EUR 500 million subordinated bond

Key data for the first three quarters of 2013

Despite the very challenging market environment, Vienna Insurance Group recorded a sound development of premiums. Consolidated premiums written amounted to EUR 7.1 billion (-5.1 percent) in the first three quarters of 2013. The decline of premiums is mainly due to the planned reduction of the short-term single-premium business in Poland as well as of the motor business in Italy. Without special effects, Vienna Insurance Group reported a growth in premiums of about 2 percent.

Against the background of intensive competition, premiums of EUR 3.6 billion were earned in the property/casualty insurance. This corresponds to a decline by 1.9 percent in this segment, which has in particular been due to the downsizing of the motor business in Romania and Italy.

The development of premiums in the life insurance business remained under the impact of the restraint in the short-term single-premium business in Poland. The Group earned premiums of EUR 3.1 billion (-9.0 percent) in this segment. Adjusted for the effect in Poland, growth amounted to 2.8 percent. Regular premiums increased by 1.3 percent, with double-digit growth rates achieved in this sector in many CEE countries.

Premiums in health insurance continued to grow to a total of EUR 303.7 million (+1.8 percent).

The profit (before taxes) of the Group amounted to EUR 315.9 million, and the combined ratio stood at 100.6 percent. The adjusted result – excluding special effects from Romania and Italy – totalled EUR 458.0 million (+3.3 percent).

The 3rd quarter was characterised by a significant improvement of the profit (before taxes) to EUR 110.2 million, as compared to EUR 46.3 million in the previous quarter of 2013.

Despite heavy losses in Romania, the result in the CEE countries developed favourably. The profit (before taxes) increased by 4.5 percent. Substantial contributions were made by the remaining CEE markets (+93.5 percent) and Poland (+54.3 percent).

The financial result of the Group amounted to EUR 892.1 million in the first three quarters of 2013. The investments, including cash and cash equivalents, totalled EUR 29.5 billion as of 30 September 2013.


Due to the continuing difficult market conditions in Romania and the adverse situation of Donau Versicherung’s motor insurance business in Italy, the Managing Board of Vienna Insurance Group assumes, based on the result for the third quarter of 2013, that the envisaged objective of keeping volatilities in the development of results sustainably as low as possible, will not be met in the current year.

Nevertheless, the management of Vienna Insurance Group will maintain its established strategy to focus on the markets of Austria and Central and Eastern Europe as well as on its core competence “insurance business”. Vienna Insurance Group will continue to adhere to a risk-conscious and conservative investment policy based on a strong capitalisation.

27/11/2013 Vienna Insurance Group AG Wiener Versicherung Gruppe – Managing Board Changes Next Article