Central Functions
The Central Functions include VIG Holding, VIG Re, VIG Fund, 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 the reinsurer for the Group 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 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 2017.
Business development in the Central Functions in 2017
Premiums written in the Central Function segment rose by 6.5% to EUR 1,411.5 million in 2017. This was mainly the result of an increase in premiums generated by Group company VIG Re entering new reinsurance business areas (Western Europe) and an increase in internal Group reinsurance premiums received by VIG Holding. The improvement in the combined ratio for corporate business significantly improved the result before taxes in the Central Functions segment compared to the previous year, although a loss of EUR 16.7 million was still recorded (2016: loss of EUR 33.3 million).