Vienna Insurance's pre-tax profit down 4.7%

Publish date 27 May 2014
Vienna Insurance's pre-tax profit down 4.7% image

Vienna Insurance Group's pre-tax profit fell 4.7% to 151.8 million euros ($ 207.2 million) in the first quarter of the year, according to Reuters.

At the same time, the insurance company's premium income increased by 1% to 2.73 billion euros.

The preliminary expectations of analysts involved in a Reuters survey were for a decrease in profit before taxes by 7.5% to 147 million euros.

The so-called combined ratio, which is an indicator of profitability, improved to 96.4% compared to 100.6% at the end of 2013. It was at the level of 96.9 in the first quarter of last year.

One-time deductions in Italy and Romania cut the company's profit before 2013 by 37% to 355.1m euros in taxes.

The insurer's chief executive Peter Hagen said last month that he expects the company's Romanian division to turn a profit.

The company also recorded serious losses from life insurance in Italy last year. Vienna Insurance limits its size in Italy by severing relations with many brokers, changing its managers at the local level and concentrating on clients in northern Italy who have other insurances.