November 30 (SeeNews) - Energy and insurance group Eurohold Bulgaria [BUL:EUBG] said that its consolidated net profit soared to 110.1 million levs ($58.4 million/56.3 million euro) in the first nine months of 2022 compared to 4.35 million levs a year earlier, chiefly driven by the robust performance of its energy business.
Total operating revenue more than trebled year-on-year to 4.69 billion levs in the January-September period, with the holding's electricity business under Electrohold Bulgaria contributing 2.68 billion levs of the total.
The holding’s earnings before interest, taxes, depreciation and amortisation (EBITDA) surged sixfold to 263.6 million levs, with the energy business accounting for three quarters of that amount.
Eurohold's insurance business, under subsidiary Euroins Insurance Group (EIG), also grew significantly, booking income from premiums of 2 billion levs in January-September, at an annual growth rate of 44.7%. Gross written premiums (GWP) jumped 55% year-on-year in the period to over 2 billion levs.
Euroins Romania recorded a threefold annual increase in all non-motor insurance lines, thanks to renewed development strategy, sharper focus on non-motor insurance and a significant expansion of the company's product offering. EIG's two Ukrainian insurance subsidiaries showed more stable results despite the exceedingly challenging environment due to the ongoing war. The Ukrainian firms' GWP amounted to 28 million levs in January-September against 47 million levs a year earlier.
"We expect our partnership with the European Bank for Reconstruction and Development which is a minority shareholder in our insurance group, to expand. In this regard, the capital of EIG will be increased through an upcoming investment by the lender. This will further strengthen the solvency of our insurance group. Current forecasts for the economic development of Central and Eastern Europe in the coming year are more favourable than those for the EU as a whole. We are confident that the region remains with a high growth potential in the long term," Eurohold chairman Kiril Boshov commented.
He added that Eurohold Bulgaria's focus remains on its electricity business and on the broad diversification of the group's insurance activity, so as to manage risk and add value for shareholders.
Investments in grid upgrades and digitalisation of services by Electrodistribution Grid West will total 300 million levs between 2021 and 2023, Eurohold noted.
The holding also owns investment and brokerage services provider Euro-Finance, with total assets of 27.5 million levs as at end-September.
Sofia-based Eurohold Bulgaria is an independent business group active in Central and Eastern Europe, Southeastern Europe, as well as in the Commonwealth of Independent States. Eurohold owns Euroins Insurance Group (EIG) which operates in 11 countries and has subsidiaries in Bulgaria, Romania, North Macedonia, Ukraine, Georgia, Russia and Belarus. EIG also operates in Greece and Poland, and has niche insurance operations in Spain and Italy.
Shares in Eurohold closed flat at 1.84 levs on Tuesday.
(1 euro = 1.95583 levs)