Outlook for VIG Insurance Group

As a market leader in Central and Eastern Europe, VIG Insurance Group with its more than 25,000 employees is in an excellent position to take advantage of the opportunities available in this region and the long-term growth options they offer. It is therefore implementing its “VIG 25” strategic programme, which was developed and initiated together with the CEOs of the VIG insurance companies based on trends and developments in the insurance business and is aimed at further increasing the premium volume and improving the combined ratio. Based on the new strategy and current conditions, a range of 150 to 200% was specified for the VIG Group solvency ratio without taking into account transitionals for underwriting provisions used by some individual Group companies. The dividend policy, which provides for a distribution in the range of 30 to 50% of Group net profits, remains unchanged. The dividend per share will continue to be aligned with the Company’s performance. The Managing Board of Vienna Insurance Group will propose increasing the dividend to EUR 1.25 per share for 2021. This corresponds to an increase of 66.7% compared to the previous year and a dividend payout ratio of 42.6%.

In addition to creating sustainable value and achieving sustainability objectives, one of the key objectives of the programme is to expand the leading market position in Central and Eastern Europe, with the aim of achieving at least a top 3 position in each CEE market, with the exception of Slovenia. The planned acquisition of the CEE business of the Dutch company Aegon N.V., which was not yet finalised by the editorial deadline, is a major step in this direction. The acquisition is expected to be formally concluded in 2022.

The further development of the financial year 2022 will remain influenced by uncertainty factors especially associated with the war in Ukraine and its unforeseeable consequences. Furthermore, the ongoing pandemic, inflation, high commodity prices, supply chain problems and resource scarcity are included among the factors that lead to increased risks and may affect VIG markets accordingly. The consequences of these uncertainty factors and the resulting effects on the business development in 2022 cannot currently be estimated. For 2022, we are aiming for a positive operating performance subject to the aspects mentioned and taking into account the fact that the VIG Group has managed the current challenges in its operating insurance business very well up to this point.

Vienna, 16 March 2022

The Managing Board: