The Central Functions include VIG Holding, VIG Re, VIG Fund, the non-profit societies, corporate IT service providers and intermediate holding companies.
VIG Holding primarily focuses on managerial tasks for the Group. It also operates as an international reinsurer and in the international corporate business.
The Group’s own reinsurance company, VIG Re, was formed in Prague in 2008 and is a successful reinsurance provider for both Vienna Insurance Group companies and external partners. VIG Re has established itself as an important company in the CEE region and follows a conservative underwriting and investment strategy. Standard & Poor’s confirmed VIG Re’s A+ rating with a stable outlook in the summer of 2016.
Business development in the Central Functions in 2016
Premiums written in the Central Functions segment rose 6.1% in 2016 to EUR 1,324.84 million. This was mainly due to an increase in premiums under internal Group reinsurance contracts. The loss of EUR 33.32 million reported in the Central Functions (2015: EUR -284.56 million) was due to interest expenses for the subordinated capital of the Group.
The result in the previous period was also negatively affected by EUR 195.0 million due to the impairment of IT systems.