With consolidated premiums written (without other insurance participations) of EUR 5.03 bln in the aggregate, the Vienna Insurance Group in the first three quarters of 2007 achieved an increase of 16.5% as compared to the same period of the previous year. Thus, the 5 bln euro mark was surpassed for the first time at the end of the third quarter.
The Group’s profit (before taxes, consolidated) increased by a remarkable 40.5% to EUR 324.21 mln in the first three quarters of the current year. Thus, the overall result of the year 2006 was surpassed already after only nine months.
At 95.9%, the combined ratio of the Group after reinsurance (not considering investment income) was improved as compared to the previous year’s figure (97.0%) in spite of the storm damage suffered in the current year.
The financial result was EUR 743.08 mln in the first nine months of the current year and was up by a remarkable 38.0% from the same period of the previous year. This positive financial result underscores the rightness of the conservative investment policy pursued by the Vienna Insurance Group.
The Viena Insurance Group did not make investments in the US subprime market and did not get involved with companies whose portfolios include such investments. Thus for the Group, no negative effects are expected now or in the future.
The expenses for claims incurred in the property/casualty segment amounted to EUR 1.31 bln. Despite storm damage the expenses rose sub-proportionally relative to the premiums, namely by 15.3%. The expenses for claims and insurance benefits from the life segment amounted to EUR 2.06 bln (up 23.1%).
The total investments of the Vienna Insurance Group increased from EUR 19.60 bln as of December 31, 2006 to EUR 22.10 bln as of September 30, 2007. This translates to a 12.7% increase.
— INCREASE OF DIVIDEND
The systematic implementation of the Group’s policy as well as the increase in income and profit and the ensuing improvement of the positions on the most important markets in the first nine months of the current year make it posible to raise the dividend for the year 2007 from EUR 0.82 to EUR 1.10 per share – subject to the approval of the competent corporate bodies.
— AMBITIOUS TARGETS UNTIL 2010
Profit (before taxes) 2007: approx. EUR 435 mln
Profit (before taxes) 2008: approx. EUR 530 mln
Profit (before taxes) 2010: approx. EUR 770 mln (currently over USD 1.1 bln) and moreover a premium volume in the amount of approx. EUR 10 bln (currently approx. USD 15 bln).
