Release Date: November 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Gross written premiums increased by 8% in the first nine months of 2024, indicating strong top-line growth.
- Insurance service revenue rose by 9.3%, showcasing robust operational performance.
- Profit before tax grew by 8.5%, demonstrating financial resilience despite adverse events.
- The solvency ratio remains strong at 259% including transitional measures, reflecting solid financial health.
- Successful mergers in Poland and North Macedonia are expected to enhance market position and operational efficiency.
Negative Points
- The CEE NatCat storm flood event, Boris, resulted in significant gross losses estimated at EUR600 million.
- The insurance service result was slightly lower compared to the previous year due to NatCat events.
- The macroeconomic environment remains volatile, posing potential risks for future impairments or negative one-off effects.
- Inflation-driven growth may slow down as inflation rates decrease, potentially impacting future growth rates.
- The reinsurance market is currently hard, which may lead to adaptations in reinsurance programs, potentially affecting costs.
Q & A Highlights
Q: Are there any estimates on how much more the storm Boris will cost in Q4 or further down the line at the start of 2025? Also, can you maintain the high growth in gross written premiums (GWP)?
A: There is no significant effect in Q4 so far. The EUR600 million estimate for Boris is conservative, and we do not expect further costs in 2025. While economic growth should benefit us, inflation-driven growth will slow, possibly reducing growth rates slightly.
Q: Do you expect any changes in reinsurance costs next year due to the CEE floods? Also, can you provide figures on profitability for P&C, life, and health?
A: Our reinsurance approach remains unchanged, and we do not foresee major impacts on our NatCat program due to the floods. The net investment result is stable at approximately EUR350 million, while the insurance service result is slightly lower due to NatCat events but remains above EUR800 million.
Q: Given the 9% PBT growth this year, why should we not expect PBT to exceed the current guidance? Can you provide more color on PBT growth by business line?
A: We maintain our guidance at the upper end of the target range due to potential macroeconomic volatility and possible impairments. The 9% PBT growth is mainly from P&C, with life showing flat development. P&C profitability increased due to inflation reflected in premiums.
Q: What are the pricing dynamics in major markets like Poland, Hungary, Austria, and Romania?
A: In Poland, we see signs of recovery in Motor TPL pricing. The Czech Republic remains competitive in Motor, while Austria is stable. Property and corporate rates are increasing in Poland and the Czech Republic, with Austria showing a more individual account-based approach.
Q: Can you provide specific figures for the first three quarters on insurance service results and net investment results?
A: The net investment result is stable at approximately EUR350 million. The insurance service result, slightly lower due to NatCat events, is well above EUR800 million for the first three quarters.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
