Due to the business' advance and the measures introduced under "2020 Agenda", the targets initially set for 2019 are overtaken for 2018. More specifically, VIG expects, in 2018, a premium volume of EUR 9.5 billion and a pre-tax profit of between EUR 450-470 million, according to CEO Elisabeth STADLER.
To achieve these goals, the group plans to develop the health insurance segment and also bancassurance operations.
Health insurance is already provided by 38 of the approximately 50 of the Group's companies. In 2017, GWP rose by about EUR 11 million - or 32% -, in those five countries where VIG plans to extend its health insurance business (Bulgaria, Poland, Romania, Turkey and Hungary).
Also, in order to promote the distribution through the banking channel, VIG decided, last year, to merge the composite insurance companies with the bancassurance companies. This process is being implemented, in different stages, in Hungary, Slovakia, Croatia, Austria and the Czech Republic.
"Currently, there is no plan to merge BCR Life Insurances and ASIROM", stated Elisabeth STADLER.
In 2017, VIG recorded a pre-tax profit of approximately EUR 443 million, up with 8.8% comparing to 2016, while underwritings rose by 3.7%, getting close to EUR 9.4 billion.
"Our success in 2017 is due to the systematic application of our business strategy. We were the first company in Austria to expand eastwards after 1989, to capitalize on the potential of Central and Eastern Europe. Now, when everyone is discussing about the major economic opportunities the Central and Eastern European countries offer, we are already reaping the fruits of our long term strategy. We entered these markets with the intention of staying, with a long term vision, regardless of short term economic developments", stressed out Elisabeth STADLER.
"Romania is a key market for VIG, which we have a long term commitment to", also stated VIG's CEO.
In 2017, the VIG member companies subscribed a premium volume of EUR 506.5 million. The gross profit was, in 2017, EUR 6.2 million, up with 75.9% from the previous year (EUR 3.5 million). At the same time, there was an improvement of the combined damage ratio, which dropped to 98.6%, from 100.1% in 2016.
The value of GWP written by VIG in Romania dropped by 5% in 2017, to EUR 506.5 million, from EUR 533.4 million in 2016.
"Romania is very important for our presence in the CEE and we are convinced that this market has a tremendous potential for growth. In fact, the current economic context is the best in Romania, if we look at the GDP growth forecast for 2018", stated Judit HAVASI - Member of the Managing Board, VIG.
VIG consists out of approximately 50 companies in 25 countries. Also, VIG has almost 200 years of experience in the insurance field, with more than 25.000 employees. Vienna Insurance Group is the best-listed company among the ATX issuers, the main stock market index of Vienna Stock Exchange. The group is also listed on Prague Stock Exchange.
In Romania, VIG owns the insurance companies OMNIASIG, active on the general insurance segment, ASIROM, with composite activity, and BCR Asigurari de Viata, with a life insurance business line.
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