VIENNA (Reuters) - Second-quarter results for Vienna Insurance Group (VIG) (VI:VIGR) came in below expectations on Tuesday as gross premiums fell and financial results suffered from low interest rates.
Austria's largest insurer reported a pretax profit of 119.6 million euros in the three months to the end of July - a fall of more than 18 percent year-on-year. Analysts polled by Reuters had on average expected a pre-tax profit of 126 million.
Gross written premiums came in came in at 2.15 billion euros, while financial results excluding at equity consolidated companies stood at 232.7 million in the second quarter - both below expectations.
"The low interest rate environment ... led to a significant drop in our financial result and required a precaution for
personnel provisions in Austria," said CEO Peter Hagen, referring to topping up pension funds.
"In the remainder of 2015, we expect the low level of interest rates to continue affecting our result," he said in the financial report.
VIG's combined ratio - a measure of profitability in the property and accident business - fell 1.2 percentage points to 95.9 percent during the first six months of the year - its best reading for the half year in 5 years.