VIG 2008 Underwritten Premiums In Romania Up 47.1% YY, To EUR608.22M

The group’s pre-tax profit on the Romanian market increased to EUR57.5 million in 2008 from EUR4.6 million the previous year, as total revenues doubled to EUR671.9 million and expenses increased 84% on the year, to EUR614.5 million.

In 2007, VIG’s Romanian operations posted revenues of EUR338.4 million and expenses of RON333.9 million.

Profit growth in 2008 was mainly driven by earnings in the second quarter of the year, when the groups’ Romanian operations posted a pre-tax profit of EUR41.9 million from EUR2.9 million in the second quarter of 2007.

Another factor that increased the group’s profit is that in June 2008, VIG signed a deal with Austrian insurer Uniqa for the sale of Romanian insurer Unita.

Vienna Insurance Group is present on the Romanian market with insurers Asirom, Omniasig, Omniasig Asigurari de Viata, BCR Asigurari and BCR Asigurari de Viata, the latter two of which it bought in the last quarter of 2008 from Austrain group Erste for EUR244 million.

The results of insurers BCR Asigurar and BCR Asigurari de Viata have not been included in the group’s 2008 earnings report and will be included starting 2009. The earnings report also includes results for Unita for the first half of the year. The sale of Unita was completed in November 2008.