Vienna Insurance Group – outlook

The Managing Board of Vienna Insurance Group will continue to rely on its Group-wide management principles in the future. The Group will continue to focus on its core competence, namely the insurance business, remain true to its regional focus and follow a conservative investment strategy.

VIG remains convinced of the great potential offered by the CEE region, and is firmly committed to Austria and Central and Eastern Europe as its home market. Since the growth and convergence process tends to progress at different rates in the CEE countries, VIG will take advantage of the opportunities and conditions in each individual market as best possible. In countries experiencing a growth phase, the focus will be on above-average exploitation of potential. Calm market phases will mainly be used to optimise processes and structures, reduce costs and adjust portfolios in order to strengthen sales during later growth phases.

Following the principle of local entrepreneurship, VIG will continue to rely on decentralised structures, and therefore on entrepreneurial thinking and local know-how. Our local managers and employees know the special regional characteristics of their customers best and can therefore react promptly and professionally to changing market needs. Technically well-trained, motivated employees form the foundation for successful development of a market. Vienna Insurance Group will continue to do whatever is needed in its 25 markets to be viewed as an attractive local employer with an international background, offer its employees the best possible development opportunities, strengthen their long-term loyalty and be the employer of choice for young talented employees.

VIG continues to have a stated goal of using its proven strategy and many optimally developed regional distribution channels, including in particular the successful cooperation with Erste Group, to grow faster than the market in Austria and the CEE region in 2015. The priority will be on using sustainable organic growth to expand market shares.

The Group does not exclude the possibility of further acquisitions in the future that improve its market position and are a good strategic addition to its existing portfolio. Mergers will be considered if the additional potential synergies that can be achieved outweigh the benefits of a diversified market presence.

The current low interest rate environment is expected to cause a decline in the ordinary financial result in 2015 that is not likely, based on what we know today, to be overcompensated by another increase in our underwriting result. VIG will continue to follow a cautious risk-aware investment strategy and has no intention of increasing investment income by making riskier investments in the future.