March 2 (SeeNews) - Energy and insurance group Eurohold Bulgaria [BUL:EUBG] said that its consolidated net profit excluding minority interest increased to 62.1 million levs ($33.7 million/31.75 million euro) in 2022 from 46.9 million levs a year earlier, after revenue from its energy business tripled.
Including minority interest and ceased operations, the group booked a consolidated net profit of 68.35 million levs last year, compared to 62.85 million levs in 2021, Eurohold Bulgaria said in an annual financial statement filed with the Bulgarian Stock Exchange on Wednesday.
The solid performance was chiefly due to the results of Eurohold's energy business, under the Electrohold brand, which tripled its revenue to 3.6 billion levs in 2022. Eurohold bought the power business of CEZ in Bulgaria last year and this is the first time their contribution is consolidated in its annual report.
"The energy sector has faced enormous challenges in the past year, but we have managed to take advantage of the opportunities presented and I expect good results this year as well," Eurohold chairman Kiril Boshov said.
Total operating revenue at Eurohold jumped about 70% on the year to some 6.42 billion levs. At the same time, expenses also soared in annual comparison terms, to 6.3 billion levs from 3.7 billion levs, with sizeable increases in the cost of materials, hired services, personnel and cost of goods sold.
The group's insurance arm, Euroins Insurance Group (EIG), saw a 30.1% decrease in net profit in 2022 to 55.5 billion levs. Gross written premiums (GWPs) rose by an annual 24% to roughly 1.7 billion levs, while revenue went up to 2.71 billion levs in 2022 from 2.3 billion levs a year earlier.
Euroins Romania posted a pre-tax profit of 62.2 million levs last year, Eurohold said in a separate press release. Last month, Euroins Romania signed a new reinsurance agreement with EIG Re as part of steps that Eurohold took to further guarantee the financial stability of the Romanian subsidiary. In February, Eurohold also took measures to protect stakeholders after what it described as a "co-ordinated attack" against Euroins Romania.
Looking ahead, the market share of Euroins Romania in motor third party liability (MTPL) insurance will shrink to 25% this year from under 28% in 2022 and will be comparable to those of the company's two direct competitors in the segment, Eurohold said. The company's premium volume generated by non-MTPL segments doubled over the past year.
"With over 200 million euro invested in Euroins Romania through acquisitions and capital increases over the years, as well as through the support we have provided to the company in the past difficult years for the Romanian insurance market, we have clearly and repeatedly confirmed our commitment to developing the company and serving our millions of customers," Boshov added.
In December 2022, EIG sold its insurance operations in Belarus and Russia, while retaining operations in Ukraine and Georgia. The group no longer consolidates the results of automotive and leasing businesses, which it also divested last year.
As at 1156 CET on Thursday, shares in Eurohold traded 2.94% lower at 1.65 levs on the Sofia bourse.
(1 euro = 1.95583 levs)