Key strategic elements
Concentrating on the core business
VIG and its around 50 Group companies are familiar in every respect with the wide variety of different needs that people in the individual CEE countries have in terms of security and future provisions. The Group takes care of country-specific needs with the help of tailored insurance solutions and consulting services. This has always been the core business of VIG, which can look back on more than 190 years of experience in the insurance industry. Professional customer service, a comprehensive range of products and excellent service will continue to form the pillars of success of VIG.
Focus on Austria and the CEE region
Vienna Insurance Group is an insurance company with an international focus. Around 54% of all Group premiums written in financial year 2015 were generated in markets outside of Austria. The level of economic and insurance-specific maturity of these markets varies greatly, ensuring a wide diversification.
VIG’s top priority in Austria is to consolidate its leading market position. In addition to loyalty of existing customers, VIG’s main aim is also to exploit growth opportunities in Austria. For example, Austria has a lower life insurance density than many other Western European countries. Austrian VIG Group companies have repeatedly demonstrated in the past that they possess the expertise and experience needed to identify market developments at an early stage and to address them with innovative insurance solutions. They must continue to further exploit these opportunities in the future to ensure that Austria remains a stable foundation for the Group.
The early expansion of Vienna Insurance Group into Central and Eastern Europe, beginning in the former Czechoslovakia in 1990, has given the Company a few crucial advantages. In particular, it was possible to gain valuable expertise relating to the special features of the markets and regional requirements. Although the beginning of the global economic and financial crisis in 2008 meant that the economic recovery process lost its momentum in the CEE markets, VIG remains convinced of the potential of the Central and Eastern European region.
This conviction is underpinned in particular by the levels of insurance in the individual CEE countries. While the CEE core markets of VIG had average insurance levels of EUR 201 in 2014, the comparable figure in the EU‑15 countries was EUR 2,845. In the area of non-life insurance, the figures are EUR 111 versus EUR 1,108. In the life insurance segment, the difference is even more distinct. In the CEE markets, the relevant value is EUR 90 and EUR 1,737 in the EU‑15 countries.
VIG Group companies in some countries also provided impressive proof in financial year 2015 that they can take advantage of this potential. For example, the VIG Group companies in Romania reported a significant increase in premiums for 2015 of around 26%. In addition, the Baltic States and Bulgaria reported growth of around 15%, while Serbia saw growth of 14% and Hungary over 13%. The aim is to continue on this successful path in the coming years.