(1068 CZK, -1,66%) said that in view of the continuing difficult situation in the Romanian insurance market, the management of has revised its assessment of the medium-term development opportunities in Romania. An extraordinary mid-year impairment test of the goodwill in the size of 75 mln. EUR of the segment Romania non-life was made, based on current data of the first 6M of 2013.
/ We consider an impairment as slightly NEGATIVE for S-T trading with shares, although some write-off could have been partly expected due to continuing losses in Romania and also as CEO Hagen turned more cautios on Romania a month ago when saying: „Romania continues to be difficult and breakeven this year won’t be easy to achieve“ contrary to his previous statement (from May) that break even in Romania could be reached in 3Q or 4Q13. Please note that 75 mln. EUR represents at least 30% of NI expected in 1H13.