EANS-News: Vienna Insurance Group Wiener Versicherung Gruppe / VIG in the first three quarters of 2016: Growth in premiums and profit

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Financial Figures/Balance Sheet/9M 2016

* Premiums rise to around EUR 7.0 billion
* Profit (before taxes) increases to EUR 301.3 million
* Combined ratio stable at 97.9 percent

Vienna Insurance Group business development is on course in the first
three quarters of 2016. Group premiums rose by 0.7 percent, which
is noteworthy due to the ongoing restraint in single premium life
insurance business (-18.6 percent). When adjusted for single
premium business, premiums increased by a respectable 4.7 percent.

"The interest rate environment is a challenge that all European
insurers now have to face. Given these circumstances, we are very
satisfied with our profit development, which is in line with the
target we announced for 2016," said Elisabeth Stadler, CEO of
Vienna Insurance Group, adding: "Overall, the results show that the
decision to exercise restraint in the traditional single premium
life insurance business was correct."

VIG's profit (before taxes) of EUR 301.3 million means it is on
target in terms of profit development. When interpreting the sharp
increase of 88.4 percent, the impairment in the comparable period
of 2015 must be taken into account. The CEE markets contributed
around 65 percent of profits.

The Group's combined ratio after reinsurance (not including
investment income) was 97.9 percent in 1st to 3rd quarter of 2016.

Group investments including cash and cash equivalents were EUR 36.5
billion as of 30 September 2016. VIG earned a financial result of
EUR 703.2 Million (-10.0 percent) in the first three quarters of
2016.

Vienna Insurance Group market developments

"Based on the motto 'identify chances', we rely on local management
in our markets. Our premium growth shows that we respond to the
different circumstances in each individual market, based on our
diversity across countries and regions. Our Group companies bring
us close to our customers and make us successful as a local
insurer," stated Elisabeth Stadler, explaining VIG's CEE strategy.

In light of the challenging circumstances, Vienna Insurance Group
companies recorded good premium growth in many markets, such as in
Hungary (+14.2 percent), Romania (+30.3 percent) or Turkey/Georgia
(+15.6 percent).

Premium growth was consistently positive in property and casualty.
VIG recorded significant growth in motor third party liability,
casco and the non- motor lines of business.

Vienna Insurance Group recently defined health insurance as a
strategic growth line of business. During the first nine months,
premiums grew 6.3 percent in this line of business.

However, even the markets greatly affected by the low interest rate
environment, such as the Czech Republic, Slovakia and Austria,
recorded premium growth of +6.7 percent, +4.5 percent and +0.6
percent, respectively. Solid growth of 6.4 percent was also
achieved in Poland, when adjusted for the transfer of the Baltic
non-life insurance business as well as exchange rate effects.

Profitable insurance business is the top priority for Vienna
Insurance Group. It must be stressed that almost all regional
segments made positive contributions to profits. Profit (before
taxes) rose, for example, in Hungary (+41.6 percent), Romania
(+16.6 percent) and the Turkey/Georgia segment (+80.4 percent). The
Baltic region was the sole exception, recording a minus (EUR -7.8
million) primarily due to start-up losses for the newly founded
insurance company Compensa Non-Life.

Further inquiry note:
VIENNA INSURANCE GROUP AG
Wiener Versicherung Gruppe
1010 Wien, Schottenring 30

Wolfgang Haas
Head of Group Communications & Marketing, Spokesperson of the Group
Tel.: +43 (0)50 390-21029
Fax: +43 (0)50 390 99-21029
E-Mail: wolfgang.haas@vig.com

Nina Higatzberger-Schwarz
Head of Investor Relations
Tel.: +43 (0)50 390-21920
Fax: +43 (0)50 390 99-21920
E-Mail: nina.higatzberger@vig.com

end of announcement euro adhoc
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company: Vienna Insurance Group Wiener Versicherung Gruppe
Schottenring 30
A-1010 Wien
phone: +43(0)50 390-21919
FAX: +43(0)50 390 99-23303
mail: investor.relations@vig.com
WWW: www.vig.com
sector: Insurance
ISIN: AT0000908504
indexes: WBI, ATX Prime, ATX
stockmarkets: official market: Wien, stock market: Prague Stock Exchange
language: English

Original-Content von: Vienna Insurance Group Wiener Versicherung Gruppe, übermittelt durch news aktuell