The Vienna Insurance Group (VIG) has reported a 4.4% decrease in profits to €121.9m (£108.8m) in its Q1 results.
The firm’s claims ratio was also “significantly” lower year-on-year in the first quarter of 2020, leading to a combined ratio of 95.1% – compared with 96.8% during the same period last year.
Despite this, the firm said it achieved “positive business development” during the period, with premiums rising 7.2% to €3.1bn (£2.7bn). Additionally, branch offices in the countries where the VIG operates gradually began to re-open starting at the beginning of May.
VIG said the main focus is on providing customer service while still observing “strict health and safety regulations”
CEO Elisabeth Stadler said: “We recorded a very good start into the year, with a significant increase in premiums. This was due to strong performance in the months of January and February 2020 that significantly compensated for the initial effects of the restrictions implemented starting in the middle of March in the battle against Covid-19.
“Premium losses due to a decrease in new business will primarily be noticeable starting in the second quarter of 2020 and are expected to continue for the remainder of the financial year.”