Vienna Insurance Group AG (VIG), eastern Europe’s biggest insurer, increased to the highest in almost five months after profit exceeded analysts’ estimates.
The stock advanced 2.2 percent to 842.5 koruna, its highest closing price since March 28, making it the best performer in the PX equity index, which rose 0.7 percent. In Vienna, VIG’s home market, the stock rose 1.7 percent to 34 euros.
Net income climbed to 113.6 million euros ($142 million) in the second quarter, up 7 percent from a year earlier, as gross written premiums jumped 19 percent, the Austrian company said today. That beats the 109 million-euro average estimate of nine analysts surveyed by Bloomberg.
“We consider the results positive,” said Milan Lavicka, an analyst at J&T Banka AS in Prague, in an e-mail to clients today. “An economic slowdown in Europe has not been reflected in emerging Europe’s insurance markets so far, and thanks to a rather conservative investment strategy the company has not been affected by risks stemming from the debt crisis in Europe.”
To contact the reporter on this story: Krystof Chamonikolas in Prague at firstname.lastname@example.org
To contact the editor responsible for this story: Gavin Serkin at email@example.com