Vienna Insurance Group company profile

Expansion into Central and Eastern Europe

The leading insurance specialist in the CEE region.

VIG’s roots in Austria go back to 1824. Since that time, the Company has developed from a locally based insurance company to a leading international insurance group. Wiener Städtische made the decision to expand internationally. In 1990, it became one of the first Western European insurance companies to recognise the growth potential of Central and Eastern Europe and took a chance on entering the market in former Czechoslovakia. The past 25 years saw a series of further expansions, including Hungary (1996), Poland (1998), Croatia (1999) and Romania (2001). After entering the market in Moldova in 2014, VIG now operates in a total of 25 countries.

Number 1 in its core markets

VIG’s core markets are Austria, Czech Republic, Slovakia, Poland, Romania, Bulgaria, Croatia, Serbia, Hungary and Ukraine. A market share of more than 18% definitely makes VIG the number 1 insurer in this group of countries.

The strategic decision taken in 1990 to expand into Central and Eastern Europe (CEE) is proving to be very successful. In 2015, around half of VIG’s total premium volume of EUR 9.0 billion was generated in the CEE markets. VIG is convinced that the economic growth of the region will continue and the demand for insurance there will continue to rise. The CEE region’s importance as a growth market for VIG is also shown by the decision to locate the registered office of its reinsurance company VIG Re (formed in 2008) in Czech Republic.

Customer proximity is VIG’s trump card in 25 markets

VIG’s success is primarily based on local entrepreneurship and customer proximity. This is reflected in the regional ties, multi-brand strategy and wide variety of distribution channels used. The Group made a conscious decision to rely on regionally established brands united under the Vienna Insurance Group umbrella. VIG’s success as a corporate group is also due to the individual strengths of these brands and the local expertise of around 50 Group companies.

Its core business is the key to VIG’s success

VIG’s activities are clearly focused on its core business, the insurance business. It pursues a progressive and highly risk-conscious insurance strategy. Reliability, trustworthiness and solidity are qualities that benefit the Group not only in its relationships with customers, but also with business partners, employees and shareholders. Credibility and integrity, entrepreneurship, customer satisfaction and quality of service, and appreciation and respect are the values on which VIG’s corporate decisions are based.

The effects of this fundamental approach are shown in its strategy of continuous sustainable growth, as well as its excellent creditworthiness. VIG’s development is confirmed by the international rating agency Standard & Poor’s, which has for some years awarded the Group a rating of A+ with a stable outlook. As a result, VIG has the best rating of all companies in the ATX, the leading index of the Vienna Stock Exchange.

Erste Group and VIG: a strong team

Erste Group has strong ties to Austria and is one of the leading banking groups in Central and Eastern Europe. VIG and Erste Group have been strategic partners since 2008. Both have benefited equally from the partnership in the region. While VIG insurance products are distributed via Erste Group branches, VIG Group companies offer banking products from Erste Group in return.

Stable dividend policy of the Group

VIG has been listed since October 1994. VIG is one of the top companies in the “Prime Market” segment of the Vienna Stock Exchange. The Company has an attractive dividend policy that offers shareholders a dividend of at least 30% of the Group profit (after minority interests).

Its listing on the Prague Stock Exchange in February 2008 also emphasises the great importance of the Central and Eastern European economic area for VIG. Just like in Vienna, VIG is also one of the top stocks on the Prague stock market.

70% of VIG’s shares are held by its principal shareholder, Wiener Städtische Versicherungsverein. The remaining 30% of the shares are in free float.

An attractive employer in Central and Eastern Europe

VIG aims to be number 1 not only in insurance products, but also as an employer. Its goal is to attract the best talent and brightest minds. Identifying and developing individual employee skills is a central priority in the Company’s modern human resources management. Diversity is seen as an opportunity and is part of day-to-day life at VIG. The Group also places great importance on creating an environment that promotes development of its employees. Vienna Insurance Group is aware that its success is based on the commitment of its almost 23,000 employees.