OVB Holding AG revised its guidance for 2017, anticipating a slight decrease in sales and moderate decline in operating income, "to minimize the effect of an increasingly challenging environment," group CFO Oskar Heitz said.
German sales commission dropped to €30.3 million in the first half, from €30.4 million in the year-ago period, due to the implementation of commission reductions under the country's Life Insurance Reform Act. The group's total sales commission declined to €114.5 million from €115.8 million in the year-ago period.
The Cologne, Germany, headquartered insurer reported a consolidated net income of €5.5 million in the first half, a 9.9% decrease from €6.1 million in the year-ago period. EPS was down 9.9% to €0.39 compared to €0.43 in the year-ago period. The group's earnings before interest and tax decreased 3.2% to €7.8 million from €8.0 million a year ago.
OVB Holding CEO Mario Freis said there was an increase in demand for consulting services from Europe's private households, adding that despite increasing changes in regulatory conditions, the group's performance was "solid." The group also plans to use leveraging potential and digitization besides modernization and business expansion under its Evolution 2022 strategy to fuel growth, Freis added.