Vienna Insurance increases dividend after €559m record profit

Vienna Insurance Group's increased its profit by 10.1% to €559m, making 2011 the most profitable year in the group's history.

In the 2011 financial year Vienna Insurance Group earned consolidated premiums written of €8.9bn, a rise of 3.4%.

The group's combined ratio after reinsurance (without taking into account investment income) decreased by almost 1.6 percentage points to a very good level of 96.8%.

The financial result for the year 2011 amounted to €931.6m.

Other group highlights included a 5.3% increase in the property and casualty segment to €4.6m.

The group's Austrian segment fared best in terms of non-life premium growth with a 12.6% increase in GWP to €1.8bn, while non-life insurance premiums for the Polish segment increased 9.3% to €319.1m.

In Slovakia the non life GWP increased by 3.9% to €318.1m. Non-life premium income remained stable in the Czech Republic, amounting to €999.4m.

Vienna Group's Romanian segment was one of the worst performing regions, with a 7.6% reduction in premiums to €401.9m. It was also one of two non-life segments to have combined ratios in excess of 100%.

The managing board of Vienna Insurance Group will propose an increase in dividend by 10% to €1.10 for 2011.

"The strategy of Vienna Insurance Group focuses on growth while boosting revenue. We achieved our goals also in 2011, although the framework conditions are currently not optimal," commented Günter Geyer, CEO of Vienna Insurance Group.

"The confirmation of our excellent A+ rating with a stable outlook by Standard & Poor's highlights the solid foundation as well as the strong capital base of Vienna Insurance Group."