Vienna Insurance Profit Advances 7% After Premium Income Grows

Vienna Insurance Group AG (VIG), eastern Europe’s biggest insurer, said second-quarter profit climbed 7 percent after premium growth offset weather-related claims.

Net income rose to 113.6 million euros ($141 million) from 106 million euros a year earlier, the Vienna-based company said today in a slide presentation. That beat the 109 million-euro average estimate of nine analysts surveyed by Bloomberg.

“We fully comply with our target of keeping volatilities low and improving profitability on a sustainable basis,” Peter Hagen, who took over as chief executive officer in June, said in a statement. The insurer didn’t give a specific profit forecast.

Vienna Insurance, which derives more than half its earnings from the former communist bloc, reported a 19 percent increase in gross written premiums. The insurer, which has about 1.5 billion euros of excess capital after being outbid in January for KBC Groep NV (KBC)’s Polish unit, said it doesn’t rule out acquisitions “rounding off the portfolio.”

Vienna Insurance climbed 1.6 percent as of 9:24 a.m. in Vienna trading, bringing this year’s gain to 11 percent. That compares with the 19 percent advance in the 32-member STOXX Insurance 600 index of European insurers.

To contact the reporter on this story: Boris Groendahl in Vienna at bgroendahl@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net

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