Vienna Insurance Group Annual Report 2014
Intro
An interview with the VIG Managing Board
“We want to continue growing faster than the overall market”
Background information. Financial year 2014, current challenges facing the insurance industry and future plans.
Together we are stronger and better
Vienna Insurance Group – securely one step ahead
VIG relies on security in all areas – successfully. It is a reliable partner for its customers as well as for its shareholders and employees. There are many good reasons for this.
VIG at a glance
Group premiums EUR 9.1 billion
Stable. In spite of a selective underwriting policy, premiums written by the Group remained at a stable level of EUR 9.1 billion. The Remaining Markets saw particularly strong growth in total premiums.
96.7% combined ratio
Net. The underwriting result improved in spite of numerous natural disasters. Programmes and measures for enhancing efficiency and profitability will be systematically continued.
Profit before taxes EUR 518.4 million
Overall positive. For the first time since 2011, all lines of business and regions once again provided a positive contribution to earnings compared to the previous year. The Czech Republic recorded the highest profit in the Group. Romania is back in the profit zone. Poland and Slovakia and the Remaining Markets provided their best performance to date in 2014.
Solid financial result
Low level of interest rates. In spite of a write-down of Hypo Alpe Adria bonds and the historically low level of interest rates, VIG earned a financial result of EUR 1,116.9 million in 2014, compared to EUR 1,226.9 million in the previous year.
Planned dividend per share EUR 1.40
VIG maintains dividend policy with an increase of EUR 0.10.
Best rating in the ATX Index
Outstanding. An A+ rating with stable outlook from Standard & Poor’s is clear proof of the Group’s outstanding capital resources.
VIG in the CEE region
Vienna Insurance Group (VIG)
From Austria to the CEE – a success story
Central and Eastern Europe. After its international expansion, a tour of VIG’s world now passes through 25 countries with different languages, culture and traditions. Come with us, and take a look at the leading insurance group in Austria and Central and Eastern Europe.
Guest commentary
“Growth prospects for the CEE region remain intact.”
Expert Juraj Kotian discusses the economic catch-up process in Central and Eastern Europe and how it benefits the people there.
Milestones
Highlights of VIG’S 190-year history
The Group can look back on an eventful 190-year history.
Well positioned is half the battle.
VIG markets have potential for the future
Cee news
Markets highlights
Best of 2014. VIG’s most important acquisitions, events and successes in the CEE region.
Most important CEE market
Czech Republic performs well
Undisputed. VIG’s market share of 33.7% makes it number 1 in the Czech market.
Strategy
Vienna Insurance Group success factors
A clear strategy for success
Corporate strategy. The members of the Managing Board explain the main principles of VIG’s corporate strategy – and how it sets VIG apart from its competitors.
Interview
“Antifragile due to crises”
An interview. Nassim Nicholas Taleb on anti-fragility and learning processes.
VIG and Erste Group
Successful partnership
Vienna Insurance Group acquired the entire insurance operations of the Erste Group in 2008.
Video
“Only what we can do well!”
Peter Hagen on the basic principles of VIG’s success.
An interview with the Managing Board
“We want to continue growing faster than the overall market.”
Regional Information
Flooding in the Balkans
After days of rainfall, disastrous flooding devastated entire districts in the Balkans.
Customer orientation
Customer proximity at all times
In addition to having many customers, Vienna Insurance Group’s main goal is to have satisfied customers. To keep them satisfied, we want to exceed expectations – while being friendlier, faster, more reliable and more creative. A selection of recent projects.
Wiener Städtische takes on a pioneer role for private pension provisions
“The introduction of the pension account in Austria creates clarity about individual pension needs – which are clearly substantial.”
Successes in Poland
Compensa. Custom-tailored insurance products for SMEs
Major hailstorm in Bulgaria
A hail storm left behind massive damage after only a few minutes – Bulstrad helped with unconventional claims processing.
Insights
The challenge of low interest rates
VIG – conservative investment continues
0.05% interest rate. The European Central Bank (ECB) lowered its key interest rate to this historic low on 4 September 2014. A previous reduction in June had reduced the rate from 0.25% to 0.15%.
Interview
“What does an actuary actually do?”
Interview with Werner Matula,
Group Chief Actuary
Solvency II
Big changes from Brussels
The fundamental reform of supervisory law for European insurance companies has far-reaching consequences for the industry.
Interview with an expert
“Reinsurance is becoming more and more important.”
Johannes Martin Hartmann on the responsibilities and challenges of a reinsurance company.
Did you know …?
… that the economy in the CEE region is growing faster than in Austria?
… that insurance density in the CEE region still has a great deal of catch-up potential?
… that the motor vehicle market offers great potential in the CEE region?
… that 99% of all companies in the CEE region are small and medium-sized enterprises?
VIG share
A reason to celebrate
VIG celebrates 20 years on the Vienna Stock Exchange
A success story. VIG can look back over 20 successful and exciting years on the Vienna Stock Exchange – including annual dividends.
5 questions – 5 answers
Nina Higatzberger, Head of Investor Relations
“It is essential for VIG to have strong capital resources.”
Expert check
Michael Huttner, Analyst at JP Morgan
“Capital management and dividend growth are the major topics for 2015.”
Video
A+ rating
More information on the A+ rating that was confirmed in July 2014 is provided in the video by Claudia Hartl, Investor Relations employee.
Key figures VIG share
1,40 Dividend per share
Career Lounge
An interview
We are VIG!
Success through commitment
Birgit Moosmann, head of People Management at VIG Holding, on career enjoyment, prospects and diversity.
Overview
23,360 employees
56% in the field sales force
44% in administration
60% of the employees in the Group are women
20% fraction of women in the managing boards of insurance companies
40% fraction of women at the level directly below the managing board
VIG is looking for outstanding, motivated and talented personalities
Room for diversity
Attractive employer. VIG offers committed employees a wide range of international career opportunities.
Fred Kofman – a guest of VIG
Leadership
Skills. VIG holds regular events to ensure an exchange of experience between its managers.
In high demand
Employer of Choice
At VIG committed employees have access to various attractive opportunities.
Video
Your career at VIG
VIG on Watchadoo
A look behind the scenes: See why people in the VIG like to work here. Here you can see the videos.
Corporate Social Responsibility
Responsible living – social involvement
Giving time
Around 19 working years. Thousands of VIG employees send a powerful message for more involvement, charity and solidarity on the Social Active Day. A tour of several projects from the world of Vienna Insurance Group.
CSR guiding principle
For a future worth living
Our core business has always required being able to think in terms of and for many generations, assume responsibility and satisfy all the future commitments we make to customers today.
Compact
Action instead of words: diverse projects, big results
VIG Kids Camp, “An espresso with Rainer Münz”, Motor vehicle environmental bonus, Celebrating 650 years – the University of Vienna, Breast cancer prevention for 100 women, The Veil of Agnes