Vienna Insurance Group, which last year overhauled competitor Allianz to emerge as the biggest insurer in the former Communist part of Europe, beat analysts' estimates of a sharp decline in its first quarter pretax profit by posting a mere 3 percent fall on Tuesday.

A surprising 36 percent increase in investment income, and a rise in earnings in the Czech Republic, Romania and Austria, helped the company's pretax profit figures for the January-March quarter to reach 121 million euros, while the analysts had anticipated the figures to be 109 million euros.

The steadier income of Vienna Insurance - the gross written premiums - showed a 1.5 percent growth, including the consequence of a takeover that was not yet depicted in the 2008 first quarter. Not surprisingly then, the figures were a notable slowdown vis-à-vis the 14 percent annual growth figures posted last year.

Vienna Insurance shares, which fell a substantial 4 percent to 30.70 euros on Tuesday, are trading at nine times the projected earnings next year - 30 percent more than the index average. Analysts opine that the growth this valuation required might not be easy for the insurer to deliver.

Though Vienna Insurance reiterated that it was not possible to give a profit outlook for the full year, it still said it was looking at growth in premium income.