ERGO Versicherungsgruppe AG / Release of an announcement according to Article 37x of the WpHG [the German Securities Trading Act]
08.05.2008
Interim report according to Article 37x of the WpHG
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INTERIM ANNOUNCEMENT OF THE GROUP WITHIN THE 1ST HALF-YEAR 2008
The results posted by the ERGO Insurance Group in the first three months of
2008 were again good: the operating result totalled EUR 236m (320m) (-26.2
%) and the consolidated result after tax EUR 151m (250m) (-39.7 %). From an
underwriting point of view, the first quarter of 2008 was outstanding: the
combined ratio in the property-casualty segment (incl. legal expenses)
improved significantly to 87.8 % (101.2 %). In the same period last year,
the underwriting result had been burdened by Winter Storm Kyrill, whilst in
the period under review the beneficial effects of the IBNR reserve set up
at the end of 2007 were felt. The bottom-line decrease against the first
quarter last year was chiefly attributable to the investment result.
The investment result for the first three months of 2008 fell by 66.0 % to
EUR 0.7bn compared with the exceptionally good first quarter of 2007 (EUR
2.0bn). With regular income rising slightly, the decline was primarily due
to the deterioration in the balance from gains and losses on disposals by
EUR 1,130m and from write-ups and write-downs, which totalled -EUR 149m
against EUR 981m in the first quarter of 2007. Whilst in the previous year
we had achieved high gains from the sale of a major real estate package and
equities, the period under review was adversely affected by the turmoil on
the capital markets.
All classes of business in Germany and abroad recorded premium growth. In
life insurance total premium income rose to EUR 1.69bn (1.66bn), in the
health segment to EUR 1.43 (1.38) bn. In property-casualty insurance volume
was up by 6.6 %, in legal expenses by
1.6 %. Overall premium income totalled EUR 4.7bn (4.6bn), gross premiums
written according to IFRS amounted to EUR 4.5bn (4.4bn). Not included in
this figure are the savings premiums of unit-linked life insurance and
capitalisation products such as 'Riester' pensions in Germany - product
lines which are playing an ever more important role for us.
Overall premium income should grow by 3.0 - 4.5 % in 2008 to around EUR
18bn. We expect to achieve an annual result of EUR 480m to EUR 600m,
subject to good development on the capital markets.
Düsseldorf, May 2008
The Board of Management
DGAP 08.05.2008
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Language: English
Issuer: ERGO Versicherungsgruppe AG
Victoriaplatz 2
40198 Düsseldorf
Deutschland
Internet: www.ergo.com
End of News DGAP News-Service
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