5 questions – 5 answers

Long versus short-term investment horizon?

As an insurance company, we assume long-term obligations to our customers that extend decades or even an entire lifetime into the future. But for investors, an investment horizon of three to five years is already considered long-term. And portfolio managers have to deal with even shorter periods, as they are evaluated on the basis of annual performance. The latest dividend yield of 3.8% for VIG shares is one argument in favour of VIG in this respect. In spite of VIG’s capital market orientation, it does not allow itself to be misled into excessive short-term actions – in either its strategic or capital-market decision-making.

Is planning underway for Solvency II?

Yes, VIG is already making preparations at full speed. Capital adequacy under Solvency II remains a hot topic for discussion: it figured in every Investor Relations meeting in 2014, with both analysts and investors.

A+, just a rating or more?

VIG’s A+ rating with a stable outlook from Standard & Poor’s is the best rating of any company in the ATX Index, providing clear proof of the Group’s excellent capital resources. VIG intends to maintain its conservative attitude towards capital resources in the future, and it is working to make the capital market aware of this attitude and the key points of its long-term business model.

VIG price performance in 2014?

VIG shares performed well, achieving a 2.4% price gain under volatile stock exchange conditions. The ATX Index, on the other hand, lost around 15.2% of its value in 2014.

Is VIG an attractive investment?

Yes, and this is definitely the case for long-term investors who are looking for a solid company with a successful business model and sustainable dividend policy. VIG’s average dividend yield of 3.3% since 2010 is also quite respectable given the current low interest rate environment.