Vienna Insurance Group, one of the largest insurers in Europe, is showing concern over the regions international insurance markets. According to the company’s forecasts, the markets are becoming stagnant and, in the best case scenario, would remain as such for the remainder of this year. This stagnation is likely a product of how consumers are responding to the ongoing economic crisis that is spreading throughout Europe. Because of this growing trend, the insurer has announced steps that it will be taking to ensure its place as one of Europe’s most influential companies.
The insurer will be focusing on organic growth, hoping to increase profitability over a long period of time. To achieve this, the insurer will be focusing on emerging markets throughout Europe that are showing signs of expansion. This plan is subject to change, however, as the European Union continues to attempt to resolve the financial crisis by implementing austerity measures and new regulations.
According to company reports, its pretax profits in 2011 rose by 10.1%. This puts the company in a good position to continue pursuing growth, as it is one of the few insurers that have posted profit increases amidst the economic disaster. The insurer expects to see a continuous growth in profits over the next few years. The company estimates that profit growth will accelerate as it begins to focus more on emerging markets in the region.
