Vienna Insurance Falls After Warning of ‘Volatilities’Nicholas Comfort
Vienna Insurance Group AG, Austria’s biggest insurer, fell the most in more than three weeks after saying its earnings will be marked by “volatilities” in 2013.
Vienna Insurance, which is located in the Austrian capital, decreased as much as 2.3 percent, the largest intraday drop since Oct. 21. The shares traded 2 percent lower at 38.02 euros as of 9:26 a.m. local time, extending its decline this year to 5.8 percent.
The company faces “difficult” conditions in Romania and an “adverse situation” at its Donau Versicherung unit’s motor insurance business in Italy, according to a statement it published after the market closed yesterday. Vienna Insurance, which is scheduled to report third-quarter earnings on Nov. 28, didn’t supply a target for profit this year in its statement.
Vienna Insurance will probably report net income of 378 million euros ($506 million) this year, according to the average of two analyst estimates compiled by Bloomberg. That would be a 6.9 percent decline from the 406.2 million euros it made last year.
Separately, Vienna Insurance agreed to buy Polish life insurer Skandia Poland, the Austrian company said in a statement today. The firm didn’t disclose the purchase price for Skandia, which wrote about 45 million euros of premiums in the first half of the year, according to the statement.