ERGO Versicherungsgruppe AG / Release of an announcement according to Article 37x of the WpHG [the German Securities Trading Act]
07.05.2010 11:24
Interim report according to Article 37x of the WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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INTERIM ANNOUNCEMENT OF THE GROUP WITHIN THE 1ST HALF-YEAR 2010
ERGO result in first quarter of 2010 confirms positive trend
In the first quarter of 2010, the ERGO Insurance Group continued with the
upward development which started in the second quarter of 2009. In the past
quarter, ERGO recorded an operative result of EUR 164m (44m) (+269.6 %),
the consolidated result after tax amounted to EUR 78m (-80m). The good
investment income that increased by 119.8 % to EUR 1.5bn (0.7bn) was the
main driver for the increase in profits as compared to the same period of
the previous year. As at 31 March 2010, equity including minority interests
was at EUR 4.1bn, following EUR 3.9bn as at 31 December 2009.
From January to March 2010, total premium income rose by 7.3 % to EUR 5.4bn
(5.0bn) across all segments. Gross premiums written according to IFRS -
excluding savings components of unit-linked life insurance and
capitalisation products - went up by 5.6 % to EUR 5.0bn (4.7bn). All
segments gained well, with the segment International Operations deserving
special mention with a growth of 20.5 % (total premium income) resp. 12.6 %
(gross premiums written). The companies in the segment Life Germany
generated total premiums of EUR 1.25bn (1.21bn), a plus of 3.1 %; gross
premiums written increased by 3.2 % to EUR 1.10bn (1.07bn). In the Health
segment, premium income grew by 6.3 % to EUR 1.5bn (1.4bn). In the segment
Property-casualty Germany, they rose to EUR 1.2bn (1.1bn). Total premium
income in the Direct insurance segment increased by 7.1 % to EUR 325m
(304m), in the Travel insurance segment by 8.7 % to EUR 124m (114m). For
the whole year 2010, total premium income is expected to lie in the range
of EUR 19bn to 20bn (2009: EUR 19.0bn).
Total expenses for claims and benefits (net) went up by 24.5 % to EUR 4.6bn
(3.7bn) in the first quarter of 2010, primarily based on expenditure for
premium refunds of the life and health insurance companies of the Group
which significantly increased to EUR 486m (-14m) due to the strongly
improved investment income. Allocation to provisions for future policy
benefits, too, rose by EUR 398m as compared to the previous year's first
quarter. However, the long and severe winter and winter storm Xynthia led
to a significant rise in claims in property-casualty business as compared
to the previous year. In the segment International Operations,
property-casualty business recorded a combined ratio of 108.2 (104.9) %.
For the Property-casualty Germany segment, the ratio amounted to 92.7
(91.5) % and thus lay just slightly over previous year's level.
Operating expenses went up by 8.3 % during the first three months. Growth
in international business led to higher acquisition costs (+6.6 %). In
addition, a lower extent of acquisition costs were deferred during the
first quarter of 2010 since the share of single premiums in new business in
accord with the market as a whole has been going up; these acquisition
costs are not deferred. With a total of EUR 282m and a plus of 0.1 %,
administration expenses remained on par with previous year's level.
Düsseldorf, May 2010
The Board of Management
07.05.2010 11:24 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv at |[![CDATA[|[a href="http://www.dgap-medientreff.de"|]www.dgap-medientreff.de|[/a|]]]|] and |[![CDATA[|[a href="http://www.dgap.de"|]www.dgap.de|[/a|]]]|]
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Language: English
Company: ERGO Versicherungsgruppe AG
Victoriaplatz 2
40198 Düsseldorf
Deutschland
Internet: www.ergo.com
End of News DGAP News-Service
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