Seizing opportunities with diversity

Dear shareholders, business partners and employees!

Every year has its successes, its challenges, its unique aspects. What will we remember in ten, twenty or thirty years’ time when we think of 2024?

A strong foundation

Let’s start with the memories that came alive again for VIG last year. We looked back at the 200-year history of Wiener Städtische Versicherungsverein, the foundation of our current insurance group. The anniversary brought to mind our roots, which are more relevant than ever: Losses that an individual cannot bear are borne by a community. This idea has survived and we practise it in all our markets today. It is as obvious as it is enduring, not least because it is based on the principle of diversity.

Diversity with added value

Today, VIG’s insurance companies and pension funds have around 33 million customers: They live alone or in various family models, they live in the country, in the city, in their own home or rented accommodation, they get up early in the morning or perform at their best in the evening. We embrace this diversity in our products and service solutions, but also in how we see ourselves as a Group. Diversity is our strength, especially because we pursue it in harmony with solidarity. Broad diversification across markets, insurance companies and distribution channels is a cornerstone of our business model. It strengthens our resilience and allows us to react flexibly to changes. CO³, short for “Communication, Collaboration, Cooperation”, in turn fosters collaboration and the exchange of experiences within the Group. The networking and coordinated interaction supports our growth strategy and improves the performance of our Group.

Tim Berners-Lee, the British physicist, computer scientist and co-creator of the World Wide Web, is said to have made the following statement: “We need diversity of thought in the world to face the new challenges.” Indeed we do. Whether politics, the economy, the world of work or the environment, many things are changing. Storm Boris once again reminded us of the consequences of climate change in Central and Eastern Europe. But this natural disaster also demonstrated the strength of VIG’s conservative reinsurance policy. A large portion of the gross losses of EUR 617 million was reinsured, and the impact on the Group’s result was limited to around EUR 70 million net. A testament to our forward-looking risk policy.

A reliable partner on the capital market

17 October marks the second jubilee in 2024: VIG’s shares were first listed on the Vienna Stock Exchange 30 years earlier. Since then, shareholders have received a dividend every year without interruption. In total, around EUR 2.8 billion in dividends have been paid out over the past 30 years. These three decades of continuous dividends are impressive testimony to our reliability on the capital market and further proof of the resilience of our business model. For the 2024 financial year, management again proposes an increased dividend of EUR 1.55 per share.

What did we achieve in 2024?

In 2024, we achieved double-digit growth not just in premiums and revenue, but also in profit. Specifically, VIG generated profit before taxes of EUR 881.8 million, even exceeding the forecast range of EUR 825 to 875 million.

In the area of sustainability, we reached further milestones in 2024. The first-time application of the ESRS/CSRD standards in the Group Annual Report marks the beginning of a new era in sustainability reporting. Our VIG sustainability programme forms the basis for VIG’s commitment to sustainability and all key sustainability activities. A transition plan has been developed based on this programme. It sets out specific targets for 2030 in the areas of asset management, underwriting and operations, and underpins our ambitious path towards climate neutrality by 2050.

In implementing our VIG 25 strategic programme, one of our focuses was on continuing the digital transformation and promoting innovation. At the same time, our Group companies have invested in the expansion of digital services and worked intensively on the development of new products and services, for example in the area of embedded insurance, with the newly established VIG platform partners providing support. With its help, we are breaking new ground in accessing an even broader range of customers through innovative insurance solutions in both digital and physical ecosystems.

In light of increasing cyber risks and ahead of the introduction of DORA (Digital Operational Resilience Act), we have established a Group-wide Cyber Defense Center programme to ensure that IT systems are secured and customer data is protected. The newly implemented, comprehensive security systems provide optimal protection at the highest current security level.

We are encouraged by the positive forecast for the CEE region.

What’s next?

The favourable developments of the past year and the positive growth forecasts for the CEE region make us optimistic about the coming year. We are confident that with our clear strategy, our strong market position and the commitment of our employees, we will remain on course for success in 2025.

The CEE region will continue to offer attractive growth opportunities in the future. There is clearly some catching up to do in the area of risk literacy, i.e. understanding risks and how to protect against them. Our task is to help our customers to better assess their risks and find suitable insurance solutions.

The VIG 25 strategic programme will enter its final in 2025. Our new strategic programme launches next year, and will further strengthen our position as the leading insurance group in the CEE region. A compact set of principles and corporate values, individual strategies for the local Group companies, even closer interlinking of cooperation (CO³) and Group-wide programmes form a robust and sustainable framework for our long-term success.

We can look back on two recent jubilees – Wiener Städtische Versicherungsverein’s 200^th anniversary and 30 years on the Vienna Stock Exchange – with appreciation and pride in what we have achieved. At the same time, these achievements motivate us to continue on our successful path with new ideas and joint efforts.

Hartwig Löger
CEO of Vienna Insurance Group