Eurohold Bulgaria AD

Earnings Release • Sep 19, 2016

Realized sales in August 2016 by the companies in the group of Eurohold

EUROINS INSURANCE GROUP (EIG)

The insurance holding EUROINS INSURANCE GROUP registered a 33% growth in premiums (GWP) for August amounted to EUR 21.8 mm compared to EUR 16.4 mm for the same month of 2015. (Table 1.).

Table 1.
EIG	August
	(EUR'000)		Change (%)
	08'2016	08'2015
Euroins Bulgaria	3 695	4 011	-7.9%
Motor Hull	1 040	871	19.5%
Motor TPL	2 045	1 464	39.7%
Property	186	249	-25.5%
Active reinsurance	0	945	-100.0%
Other	424	482	-12.1%
Euroins Romania	17 104	11 550	48.1%
Motor Hull	98	119	-18.0%
Motor TPL	16 397	11 032	48.6%
Property	209	181	15.7%
Other	399	218	83.3%
Euroins Macedonia	794	777	2.2%
Motor Hull	37	16	130.3%
Motor TPL	621	601	3.3%
Property	44	35	23.3%
Other	93	125	-25.5%
Euroins (HDI) Ukraine	151	-	-
Motor Hull	46	-	-
Motor TPL	70	-	-
Property	11	-	-
Other	24	-	-
Euroins Life	40	109	-62.9%
EIG TOTAL GWP	21 791	16 381	33.03%
			Source: EIG

For the first eight months of 2016 the GWP of EUROINS INSURANCE GROUP registered 7.5% growth amounted to EUR 161.7 mm compared to EUR 150.5 mm for January-August 2015, according to preliminary data (Table 2.).

Euroins Bulgaria reported a decline in premiums in the first eight months by nearly 15%, which is the result of accounted in May'2015 EUR11.6 million from active reinsurance. If

you eliminate the above one-off effect of reinsurance, the direct insurance business of Euroins Bulgaria was increased by 19% for the first eight months of 2016.

Euroins Romania registered above 17% growth in premiums for the first eight months. As a result of the rapid pace of development in recent years, Euroins Romania is now the third company by market share on the Romanian insurance market. Currently, the company focuses on quality and diversification of its insurance portfolio through detailed market segmentation, which significantly reduces the levels of risk taken. For the current year the goal of management is to keep the market position and to improve significantly the financial result.

HDI Ukraine is already part of the group of Euroins Insurance Group (EIG), after Germany-based Talanx Group transferred the 99% of shares of the Ukrainian company to EIG on 12th of August. The newly acquired insurance company will begin to consolidate in EIG as of 12th of August 2016. For the eight months the GWP of HDI Ukraine amounted to EUR 7.7 million.

Table 2.
	January-August
EIG		(YTD)
	(EUR'000)		Change (%)
	01-08'2016	01-08'2015
Euroins Bulgaria	34 777	40 820	-14.8%
Motor Hull	7 740	6 993	10.7%
Motor TPL	16 822	11 383	47.8%
Property	1 831	3 388	-46.0%
Active reinsurance	1 400	12 510	-88.8%
Other	6 983	6 546	6.7%
Euroins Romania	120 464	102 891	17.1%
Motor Hull	871	1 054	-17.4%
Motor TPL	115 267	97 875	17.8%
Property	1 314	1 218	7.9%
Other	3 012	2 744	9.8%
Euroins Macedonia	5 859	6 092	-3.8%
Motor Hull	488	471	3.6%
Motor TPL	3 898	3 927	-0.7%
Property	556	559	-0.6%
Other	917	1 134	-19.1%
Euroins (HDI) Ukraine	151	-	-
Motor Hull	46	-	-
Motor TPL	70	-	-
Property	11	-	-
Other	24	-	-
Euroins Life	433	649	-33.3%
EIG TOTAL GWP	161 684	150 452	7.47%

Source: EIG

AVTO UNION

The automotive holding AVTO UNION registered 16.9% growth with total of 305 sales of new PC and LCV for August, 2016 compared to 261 units realized in August, 2015. The highest number of sales for the month was realized by Espace Auto (Renault, Dacia) with 158 units, followed by Auto Italia (Alfa Romeo, Fiat, Lancia, Maserati) with 52 units, Star Motors (Mazda) with 46 units, Bulvaria (Opel, Chevrolet) - 37 units and Nissan Sofia (Nissan) with 12 units. (Table 3.)

Table 3.
Avto Union	August
Company	Units	Units	Change (%)
	08'16	08'15
AUTO ITALIA ALFA ROMEО,FIAT, LANCIA, MASERATI	52	34	52.9%
NISSAN SOFIA	12	21	-42.9%
NISSAN
ESPACE AUTO	158	103	53.4%
RENAULT, DACIA
BULVARIA	37	35	5.7%
OPEL, CHEVROLET
STAR MOTORS	46	68	-32.4%
MAZDA
TOTAL	305	261	16.9%
			Source: Avto Union

For the first eight months of 2016 the automotive division of Eurohold registered 1% decline with 2547 sales of new PC and LCV compared to 2572 units for January-August 2015, according to preliminary data (Table 4.).

Table 4.
Avto Union	January-August (YTD)
Company	Units	Units	Change (%)
	01-08'16	01-08'15
AUTO ITALIA	289	233	24.0%
ALFA ROMEО,FIAT, LANCIA, MASERATI
NISSAN SOFIA	233	286	-18.5%
NISSAN
ESPACE AUTO	1394	1354	3.0%
RENAULT, DACIA
BULVARIA	195	335	-41.8%
OPEL, CHEVROLET
STAR MOTORS	436	364	19.8%
MAZDA
TOTAL	2547	2572	-1.0%

Source: Avto Union