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December 1 (SeeNews) - Energy and insurance group Eurohold Bulgaria [BUL:EUBG; WSE:EHG] said that its consolidated net profit jumped to 218.2 million levs ($121.45 million/111.6 million euro) in the first nine months of 2023 from a revised net profit of 121.9 million levs a year earlier, as revenue decline in the energy business was offset by a higher insurance turnover.
Total operating revenue went down to 2.75 billion levs in the January-September period from a restated 3.35 billion levs last year, the group said in an interim condensed financial statement on Thursday.
Net profit from continuing operations surged to 218.2 million levs in January-September from 44.4 million levs a year earlier. In June, a Romanian court confirmed the insolvency of Euroins Romania, whose licence was revoked by the Romanian regulator in March, and launched bankruptcy proceedings against the insurer. Eurohold has said it will seek to receive at least 500 million euro ($544.3 million) in arbitration proceedings.
For the first time, Eurohold has reported insurance results under the new IFRS 17 reporting standard in force since January 1. This has had a significant impact on financial results from insurance operations while nine-month results from 2022 have been restated, it said. IFRS 17 mandates a company to recognise profits as it provides insurance services, shifting from the conventional method of recognising profits upon premium receipt.
Thus, Eurohold's revenue from insurance operations, under subsidiary Euroins Insurance Group (EIG), grew to 1.02 billion levs from a restated 656.7 million levs a year ago.
By contrast, as power prices eased from last year's surge, Eurohold booked a decline in energy operations revenue to 1.7 billion levs from roughly 2.7 billion levs, the statement showed.
The group's operating expenses shrank to 2.17 billion levs in the nine months through September from 2.98 billion levs a year ago, driven by a 44% annual decline to 1.31 billion levs in costs incurred by its energy business.
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 Bulgaria closed at 1.65 levs in its most recent trading session on Thursday, according to stock exchange data.
(1 euro = 1.95583 levs)
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