Nürnberger Beteiligungs’ (F:NLVGn) top-line growth in H118 was largely assisted by the full consolidation of the legal protection insurance business. Low interest rates coupled with regulatory requirements (most notably Zinszusatzreserve, ZZR) continue to hinder the insurance industry. As a result of this and higher claims in property and casualty (P&C) business, as well as a one-off effect in H117, NBG recorded a 43.5% y-o-y drop in net profit in H118 to €23.6m, Still, FY18 net income guidance (€50m) was reiterated as H118 earnings represent c 47% of the guided number.
Modest organic growth in new premiums
NBG recorded a 3% y-o-y increase in gross premiums booked, along with a 3.7% y-o-y rise in new premiums, although mostly due to consolidation of Neue Rechtsschutz-Versicherung (NRV, majority stake acquired in Q317) within the P&C insurance segment. Organic growth in new premiums stood at only c 1.2% y-o-y, whereas gross premiums excluding the consolidation effect declined by 0.4% y o-y. Amid continued creation of significant technical reserves related to standard life insurance contracts and the increase in group insurance claims by 9.8% vs H117, net profit decreased by 43.5% y-o-y to €23.6m.
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