From Austria to the CEE – a success story

Visitors to the Group headquarters in the Vienna Ringturm building already see an impressive presentation of all the Group companies when they come into the entrance foyer. Those who do the count learn that VIG operates 50 Group companies in 25 countries. But the path that was followed to the current position of strength and diversity of Vienna Insurance Group and its around 23,000 employees was a long one, as can be seen from a look at the Company’s history (read more).

A milestone was reached in 1990. Wiener Städtische was among the first Western European insurance companies to recognise and take advantage of the favourable political turning point in Eastern Europe and the growth opportunities that were offered by venturing into the market in what was then Czechoslovakia. That was the starting point for expansion into further markets – in each case after careful consideration and weighing all the associated opportunities and risks. The circle of VIG markets was steadily expanded over time, with Moldova being the last market entered in 2014.

Number 1 in its core markets

Careful, risk-conscious corporate management and the tireless commitment of its on-site employees is the reason that VIG holds a leading position in its markets today. A total market share of 19% makes VIG the clear number 1 in its core markets of Austria, the Czech Republic, Slovakia, Poland, Romania, Bulgaria, Croatia, Serbia, Hungary and Ukraine. The importance of the decision made around 25 years ago to enter the markets of Central and Eastern Europe is also shown by the current structure of Group premiums written. In 2014, more than half of the EUR 9.1 billion in premiums were generated in the CEE region. Ten years ago, in comparison, the markets outside Austria generated only slightly more than one third of all premiums. The great strategic significance of the CEE region was underscored again in 2008, when the Group reinsurance company VIG Re was established with its registered office in the Czech Republic.

The economic catch-up process taking place in the markets of the CEE region will also lead to an increase in the demand for insurance products. This will continue to determine the sustainable growth of VIG – particularly given that the Austrian insurance market is already partially saturated.

Strong stock market presence, long-term principal shareholder

Not least because of its core business, VIG has a long-term corporate strategy that looks generations ahead. This is a point of view that its principal shareholder, Wiener Städtische Versicherungsverein, which holds around 70% of all VIG shares, has also held from day one. The remaining shares are in free float. Its market capitalisation of around EUR 4.7 billion at the end of 2014 makes VIG one of the largest companies in the Prime Market segment of the Vienna Stock Exchange. VIG stands for continuity, stability and transparency in the capital market (read more).

Customer proximity

But what factors make VIG stand out in the development of its markets? The special skills and experience of its employees, that best satisfy the needs of local customers? Or integration of the local Group companies under the VIG umbrella? The answer is that a wide range of qualities, characteristics and strengths make VIG what it is. Its multi-brand strategy and the use of a variety of distribution channels ensures strong regional ties and excellent customer proximity. However, even the best distribution structure cannot be successful without large numbers of dedicated employees. Encouraging employee motivation and strengthening their skills and abilities is the main duty of the management of all Group companies. The Company aims to win over the best talented employees by positioning itself as an employer of choice (read more). This is the only way VIG can achieve its primary objective: remaining the first choice of its customers.