Eurohold Bulgaria AD, a leading energy and financial group in Southeast Europe, reported strong results in the third quarter of 2022 consolidating its very positive performance since the beginning of the year, according to the company’s consolidated interim financial statement for the period.
Total revenue for the nine months through September nearly tripled year-on-year to BGN 4.7 billion (EUR 2.4 billion), all-time high for this indicator so far. EBITDA and net profit for the period amounted to BGN 263.6 million (EUR 134.7 million) and BGN 110.1 million (EUR 56.3 million), respectively.
Eurohold’s energy business, operating under Electrohold brand, accumulated 57% of the total revenue and approximately three-fourth of the holding’s earnings before interest, taxes, depreciation and amortization, prior to calculating the parent company’s results and intragroup eliminations. The final net financial result for the first nine months in this segment was BGN 73.7 million (EUR 37.7 million). The current year is the first one in which Eurohold fully consolidates Electrohold’s results in its financial statement after it acquired the Bulgarian subsidiaries of Czech energy group CEZ in July 2021.
Eurohold’s insurance business, united in Euroins Insurance Group (EIG), accounted for 42.6% of total revenues and just over one-fourth of EBITDA. Gross written premium of EIG rose by 44.7% year-to-year to BGN 1.2 billion (EUR 614 million). Eurohold’s gross revenue from insurance operations, as a whole, increased by 55% on the year to above BGN 2 billion (EUR 1.02 billion). The holding reported a net profit of BGN 64.1 million (EUR 32.8 million) from insurance activities.
All EIG‘s subsidiaries posted strong results over the first nine months of 2022. Euroins Romania booked 3-fold growth across all its non-motor insurance lines due to the changed development strategy, the increased focus on non-motor insurance and the significant expansion of the company’s product range. Solid growth was also marked by Euroins Bulgaria which unites the operations of the group under the free provision of services in the EU states. The premium volume of the Bulgarian unit increased by 35% year-on-year to BGN 342 million (ЕUR 175 million). The two Ukrainian units of EIG have gradually stabilized their results despite the extremely challenging economic environment in Ukraine due to the ongoing military conflict. The gross written premiums of the two companies reached BGN 28 million (EUR 14.3 million) over the nine months through September 2022 compared to BGN 47 million (EUR 24 million) the same period in the previous year.
“Like any company in the current situation we are operating in an environment in which we face serious challenges, especially - the high inflation and the effects of the military conflict in Ukraine. Nevertheless, we are confident that our development strategy that is focused on the energy business and a wide geographical diversification of our insurance operations, enable us to effectively manage risk and add value to our shareholders. Our performance since the beginning of the year indicates high productivity in the two main sectors in which we are developing business. We expect to expand our partnership with the EBRD, which is a minority shareholder in our insurance group. In this regard, a new investment by the bank is upcoming to increase the capital of EIG. This will further strengthen the solvency of our insurance group. Current forecasts for the economic development of CEE in the next year are more favorable than those for the EU as a whole. We remain confident in the long-term growth potential of the CEE region”, commented Kiril Boshov, chief executive officer and chairman of the management board of Eurohold.