ERGO Versicherungsgruppe AG / Release of an announcement according to Article 37x of the WpHG [the German Securities Trading Act]
07.11.2008
Interim report according to Article 37x of the WpHG
---------------------------------------------------------------------------
INTERIM ANNOUNCEMENT IN THE SECOND HALF 2008
The ERGO Insurance Group recorded an operating result of EUR 601 (879)
million (-31.6 %) for the first three quarters of 2008. The consolidated
Group result after taxes amounted to EUR 300 (701) million (-57.1 %).
Whereas the results of the previous two years had been marked by
above-average investment results, the first nine months of 2008 were
strongly influenced by the turbulences on capital markets. In addition, the
third quarter of the previous year had included a positive tax effect of
EUR 120 million due to the German corporate tax reform in 2008. From a
technical perspective, business in the first three quarters of the
financial year was very good.
Since the beginning of the year 2008, total premium income across all
business segments rose by 2.7 % to EUR 13.1 (12.8) billion. In
international business in particular, ERGO attained significant growth of
12.9 % across all segments. In domestic business, total premiums virtually
remained at previous year's level and amounted to EUR 10.06 (10.07)
billion.
At EUR 2.0 (4.5) billion, the investment result dropped considerably
compared to the excellent previous year (-55.7 %). The balance from
disposal gains and losses as well as from write-ups and write-downs
reflected the negative trend on capital markets. Despite ERGO's cautious
and risk-sensitive investment policy, substantial write-downs became
necessary. This was mitigated by write-ups on derivatives which were bought
for hedging purposes. The disposal gains clearly fell behind previous
year's figures which had been influenced by extraordinarily high disposal
gains from share and real estate disposals. The balance from disposal gains
and losses as well as from write-ups and write-downs declined to EUR -1.15
billion following EUR +1.07 billion in the first three quarters of 2007.
In non-life insurance, the combined ratio improved to an excellent 89.8
(92.9) %. In the previous year, the winter storm Kyrill had had a negative
impact on the loss ratio. However, during the period on review a number of
local natural events such as the storms Emma and Hilal all in all put a
similar strain on the net loss ratio as had been caused by Kyrill in the
previous year. Total operating expenses (net) decreased by 6.9 %, mainly
due to acquisition costs. Administration expenses (gross) were also
reduced, namely by 1.8 %.
Due to the current highly volatile situation on capital markets, it is
virtually impossible to give a valid forecast on the annual profit. Total
premium income in 2008 is expected to rise by 3 to 4.5 % and reach an
amount of approximately EUR 18 billion.
Düsseldorf, in November 2008
The Board of Management
DGAP 07.11.2008
---------------------------------------------------------------------------
Language: English
Issuer: ERGO Versicherungsgruppe AG
Victoriaplatz 2
40198 Düsseldorf
Deutschland
Internet: www.ergo.com
End of News DGAP News-Service
---------------------------------------------------------------------------
DGAP-IRE: ERGO Versicherungsgruppe AG:
| Source: EQS Group AG