ERGO Versicherungsgruppe AG / Release of an announcement according to Article 37x of the WpHG [the German Securities Trading Act]
06.05.2009
Interim report according to Article 37x of the WpHG
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INTERIM ANNOUNCEMENT OF THE GROUP WITHIN THE 1ST HALF-YEAR 2009
Write-downs of goodwill and interest-rate hedges impact ERGO's first
quarter result
In the first quarter of 2009, results of the ERGO Insurance Group still
suffered from the effects of the financial crisis. Especially the balance
of gains and losses on disposals and of write-ups and write-downs which was
lower than in the first quarter of last year put a strain on results. In
the first quarter, the rise in interest rates and the decline in
volatilities compared with the end of 2008 led to impairments among the
derivatives which ERGO uses to hedge against a prolonged low-interest
period in life insurance. From an economic point of view, these are
positive developments which will improve long-term results. The
consolidated Group result amounted to EUR -97 (151) million, mainly
affected by further write-downs on goodwill of EUR 85 (-) million.
In the first quarter, the investment result amounted to EUR 698 (677)
million, a slight increase of 3.2% compared to previous year's low level.
At EUR -291 (-137) million, the balance of gains and losses on disposals
and of write-ups and write-downs overall declined compared to the previous
year's first quarter. Regular income totalled EUR 1.12 (1.11) billion and
thus recorded a rise compared to the previous year, primarily caused by
increased investments in fixed-interest securities and loans.
Total premium income rose across all segments by 6.2%, totalling EUR 5.0
(4.7) billion. Growth mainly derived from ERGO's international business.
Due to the first-time application of IFRS 8, the segments Life Germany,
Health, Non-Life Germany, Direct Insurance and International Operations
will in future be shown as individual segments.
In the first quarter of 2009, the companies of the Life Germany segment
earned total premiums of EUR 1.21 (1.25) billion, a decline of 3.4%. In the
Health segment, premium income in the first three months of 2009 went up by
11.8 % to EUR 1.5 (1.4) billion. This reflects the integration of
Europäische Reiseversicherung and Mercur Assistance at the beginning of the
year. Adjusted for the acquisition, premiums would have increased by 3.5 %
to EUR 1.41 (1.37) billion. At EUR 1.11 (1.12) billion, premium income in
the Non-Life Germany segment remained below previous year's level by 1.0 %.
Total premium income in the Direct Insurance segment rose from January to
March by 11.9 % to EUR 304 (271) million. In the International Operations
segment, total premiums increased strongly by 19.7 % and totalled EUR 920
(768) million.
Total premium income for 2009 is expected to lie within a range of EUR 18.5
to 19.5 billion.
Düsseldorf, May 2009
The Board of Management
DGAP 06.05.2009
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Language: English
Issuer: ERGO Versicherungsgruppe AG
Victoriaplatz 2
40198 Düsseldorf
Deutschland
Internet: www.ergo.com
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