Euroins Q1 2015 GWP jump 2-fold YoY on re-insurance (NEUTRAL)

Euroins Q1 2015 gross written premiums increased 2-fold YoY in Q1 2015 to BGN 40.2m on increase in re-insurance revenue. The share of motor insurance in GWP reached 80% as MTPL insurance rose to 56% share from 49% a year ago. The change in unearned premium reserve, up by BGN 7m YoY, brought net earned premiums to BGN 33.5m (+67% YoY). The net loss ratio increased to 76% from 55% a year ago as net insurance claims soared 131% to BGN 25.6m. Both administrative expenses and acquisition costs declined by 9% and 6% YoY respectively. Net financial income was up 41% YoY to BGN 1.2m. EBT came at BGN 80k up from loss of BGN 450k in Q1’14. On the balance sheet technical reserves, net of reinsurance increased 22% YTD to BGN 82.9m as of 31 March 2015. Cash position decreased to BGN 5.5m (BGN 14.3m at end-2014), while financial assets increased to BGN 38.5m from BGN 23m at end-2014. Euroins capital increase was completed in March, the company raised BGN 5.6m, while Euroins Insurance Group stake increased to 83.6% from 78.1% before the capital increase.