Bread and butter from Austria, sweet fruit from CEE

Wiener Städtische digital offensive. Wiener Städtische focused clearly on online capability and digital fitness in 2015 in order to proactively use the Technical Revolution in the interests of its customers. In addition to introducing a professional video advisory service, completely renewing its range of apps and redesigning its website, it also significantly expanded the opportunities for purchasing insurance online. Learn more about the Wiener Städtische digital offensive on page 19.

Repositioning of Donau Versicherung. Donau Versicherung has been part of Vienna Insurance Group since 1971. It is the sixth largest insurance company in the Austrian insurance market, making it one of the top players. The goal in 2015 was to set this long-established company on a new, updated course to ensure that it remained competitive and profitable for the long term. As part of this repositioning, a project was created to sharpen the profile of the company and a future strategic orientation was introduced. Donau Versicherung continues to follow its vision of being perceived as the most customer-oriented insurance company in Austria. In addition to a new mission statement, the newly defined values of awareness, drive, clarity and reliability form the basis for future company decisions.

New focus for the Romanian Group companies. The optimisation measures implemented in the last few years are having an effect in Romania. All three companies worked tirelessly in 2015 on strengthening sales, developing customer-friendly products and improving their market presence. Asirom, for example, began restructuring its distribution networks and focused on expanding cooperations with brokers. BČR Life developed new products, including a life insurance policy that combined serious illness, such as cancer, with secured loans. There is no other comparable product in the Romanian market. While Omniasig focused on repositioning its brand and image. This included unifying its market presence to increase stakeholder identification with the company.

Omniasig starts a new brand campaign. Omniasig presented itself in 2015 as a strong, responsible company taking part in the sustainable development of the country. As part of its “Insurance with Value” campaign, the Romanian VIG company called for a more considerate approach to the environment, because a future worth living requires a sustainable here and now. A small amount is sent to Ivan Patzaichin’s organisation for each Omniasig policy sold. The famous Romanian canoeist is promoting sustainable development of the Danube delta region and became a popular brand ambassador for the Omniasig brand.

VIG strengthens its market presence in the Baltic region. Vienna Insurance Group successfully continued on its expansion course in 2015 with a focus on the Baltic region. VIG considerably strengthened its presence in the Baltic countries by acquiring the Lithuanian distribution company Compensa Life Distribution and Latvian non-life insurer Baltikums, and by establishing a new company, Compensa Non-Life, in Lithuania. A majority interest was also acquired of BTA Baltic in Latvia towards the end of the year. The acquisition took place subject to necessary official approvals. As a result, VIG is now one of the top three insurers in the Baltic non-life insurance market. The huge potential of the region, which recorded average economic growth of around 2% in 2015, was already apparent to VIG in 2008. VIG successfully entered Estonia at that time with its acquisition of Group company Compensa Life.

Increasing distribution in Bulgaria. Group company Bulstrad, which has been part of the Group since 2002, entered into a cooperation agreement with United Bulgarian Bank (UBB) in 2015. UBB is the third-largest Bulgarian retail bank, reaching around one million customers through its 200 branches and points of sale. This acquisition allowed the Group to diversify its portfolio in Bulgaria and increase its sales potential using its multi-channel strategy. Bulstrad also acquired 100% of the shares in the company UBB-AIG, which was formed as a banc assurance company for UBB in 2006. After receiving official approval at the beginning of 2016, the name of the company was changed to Insurance Company Nova Ins EAD (Nova).

VIG successful in Ukraine, despite the crisis. The situation in Ukraine continues to be extremely difficult for the people there and we can only hope that the situation calms down soon. VIG has almost no representation in Crimea and the conflict areas in eastern Ukraine. In spite of difficult conditions, local management continued to handle the situation there outstandingly in 2015, thereby proving the value of VIG’s principle of local entrepreneurship. The Ukrainian companies achieved strong premium growth of 31.4% in local currency terms in 2015. VIG’s market share of 4.3% puts it in third place in the Ukrainian market.

Successful first year in Moldova. VIG has been represented in the Republic of Moldova since 2014, when it entered the market and acquired Group company Donaris. This filled the final gap in VIG’s coverage of the CEE region. Donaris is number one in large customer business and motor vehicle comprehensive insurance in Moldova. “VIG’s market entry made the company a pioneer in the Moldovan market that is setting new standards and challenging competitors,” explained Dinu Gherasim, Chairman of the Managing Board. This statement underscores the company’s upward movement in market ranking from fifth to third place in just one year.