Short reports

Bond issues strengthen capital buffer

VIG took advantage of the favourable interest rate environment in 2017 to further improve its capital position with a private placement of a EUR 200 million subordinated bond by Vienna Insurance Group and a EUR 250 million subordinated bond by Austrian Group company Wiener Städtische. Both bonds have a fixed term of ten years, are in line with Solvency II Tier 2 requirements and are traded on the Third Market of the Vienna Stock Exchange. The Group therefore now has adequate financial leeway for future projects. The required regulatory solvency ratio has been significantly exceeded. At the end of 2017, VIG had a solvency ratio of 389% as an individual company and 220% calculated at the level of the listed Group.

Best rating in the ATX index

In August 2017, Standard & Poor’s rating agency has once again confirmed its A+ rating with a stable outlook for Vienna Insurance Group. Its excellent capital position continues to receive a rating of AAA. According to Standard & Poor’s, other VIG strengths are its leading market position in Austria and Central and Eastern Europe, extensive geographical and product-specific diversification and an outstanding distribution network, including the preferred cooperation that has been in place with Erste Group since 2008. This means that Vienna Insurance Group continues to enjoy the highest rating of all companies in the ATX Index.