Annual Financial Report 2024
2
Read more
Additional videos and information
about the 2024 financial year
are available online at
annual-report.vig/2024
Some of the additional content:
• Video with CEO Hartwig Löger
• Explanatory videos on “Who is VIG?”,
the “VIG 25 strategic programme”
and the “VIG sustainability
programme”.
• Other highlights from the 2024
financial year
All VIG Holding publications
are available at group.vig/reports
Group management report
Structure and organisation
Segmentation and scope of consolidation
Changes in the preparation of the Group management report
Business development and economic position
Economic environment
Legal environment
Group business development and financial
performance indicators
Branch offices
Business development and financial performance indicators
by reportable segment
Consolidated non-financial report
General information
Environmental information
Social information
Governance information
Other mandatory disclosures
Research and development
Holdings, purchase and sale of own shares
Internal control and risk management system
Capital, share, voting and control rights and associated
agreements
Corporate governance
Outsourcing disclosures
Expected development and risks of the Group
Significant risks and uncertainties
Expected development – Outlook for 2025
6
6
6
6
7
8
12
12
21
22
61
93
108
115
115
115
115
117
117
117
118
118
118
Consolidated income statement
Consolidated statement of comprehensive income
Consolidated balance sheet
Consolidated statement of change in equity
Consolidated cash flow statement
Notes
General information and principles of
significant accounting policies
Segment reporting
Explanatory notes to the net assets, financial
position and operating results
Additional disclosures
Risk strategy and risk management
123
124
125
126
128
128
133
138
198
261
279
293
297
GROUP MANAGEMENT REPORT 2024
5
6
6
General
122
122
Consolidated financial statements
Consolidated income statement
Consolidated statement of comprehensive income
Consolidated balance sheet
Consolidated statement of change in equity
Consolidated cash flow statement
Corporate governance report
Supervisory Board report
Declaration by the Managing Board
Auditor’s Report
Independent assurance report
298
304
121
CONSOLIDATED FINANCIAL STATMENTS 2024
Primary financial statements
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
3
Management report
324
309
312
312
316
321
322
322
310
MANAGEMENT REPORT TO THE
ANNUAL FINANCIAL STATEMENTS IN
ACCORDANCE WITH UGB
Company profile
Management report 2024
VIG Holding business development
Risk report
Internal control and risk management
system in the accounting process
Disclosures in accordance with
§ 243a and § 243(3)(3) UGB
Disclosures on outsourcing in accord-
ance with § 156(1)(1) in conjunction
with § 109 VAG
Outlook
Annual financial statements
327
328
328
330
332
348
349
354
355
Auditor’s report
Declaration by the Managing Board
Supervisory Board report
ANNUAL FINANCIAL STATEMENTS IN
ACCORDANCE WITH UGB
Annual Financial Statements
Balance sheet
Income statement
Notes to the financial statements for 2024
Proposed appropriation of profits
Service
359
SERVICE INFORMATION
360
List of abbreviations
362
Notice – Address
Sustainability statement
in accordance with
CSRD and ESRS
F
or the first time, VIG is publishing a consolidated
non-financial report (sustainability statement)
based on the Corporate Sustainability Reporting
Directive (CSRD) and the European Sustainability
Reporting Standards (ESRS). You can find the
report starting on page 21.
4
Annual Financial Report 2024
VIENNA
INSURANCE GROUP AG Wiener Versicherung Gruppe
5
Group
management
report
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
6
Annual Financial Report 2024
General information
STRUCTURE AND ORGANISATION
VIG Insurance Group operates with more than one company
and brand in most of its markets. The market presence of
each company in a country is aimed at different target groups.
Their product portfolios differ accordingly. The use of this
multi-brand strategy does not mean, however, that potential
synergies remain unexploited. Structural efficiency and the
cost-effective use of resources are examined regularly. Back
offices that perform administrative tasks for more than one
company are already being used successfully in many coun-
tries. Mergers of insurance companies are considered if the
additional synergies that can be achieved outweigh the ben-
efits of a diversified market presence. To ensure uniform man-
agement, clearly defined country responsibilities also exist at
Managing Board level. As part of the VIG 25 strategic pro-
gramme, the country responsibilities of the members of the
VIG Holding Managing Board were reassigned and, in ad-
dition to the CEO (Chief Executive Officer) and CFRO (Chief
Financial and Risk Officer), a CTO (Chief Technical Officer), a
COO (Chief Operations Officer) and a CIO (Chief Innovation
Officer) were also established at the Managing Board level.
To improve readability, company names have been short-
ened throughout the entire report. A list of full company
names is provided starting on page 360. In order to avoid
duplicate information, reference will be made to appropriate
information the notes to the consolidated financial state-
ments. Changes in significant balance sheet and income
statement items are presented in both the segment re-
porting and the notes to the financial statements. Additional
disclosures in the management report are intended to
explain these data in more detail.
SEGMENTATION AND SCOPE OF CONSOLIDATION
The over 50 VIG insurance companies and pension fund
s
operate in the following reportable segments: Austria,
Czech Republic, Poland, Extended CEE, Special Markets
and Group Functions. These six segments are explained in
the segment reporting section of the Group management re-
port from page 12. The segment Extended CEE includes the
countries of Albania incl. Kosovo, the Baltic states, Bosnia-
Herzegovina, Bulgaria, Croatia, Hungary, Moldova, North
Macedonia, Romania, Serbia, Slovakia and Ukraine. The seg-
ment Special Markets consists of the four countries Ger-
many, Georgia, Liechtenstein and Türkiye. Further informa-
tion on the scope of consolidation and the method of con-
solidation can be found in Note 21. Affiliated companies and
participations on page 210 and Note 24.2. Business com-
binations on page 226. Details on the changes in scope of
consolidation can be found in Note 20. Business combina-
tions starting on page 209.
CHANGES IN THE PREPARATION OF THE GROUP
M
ANAGEMENT REPORT
FIRST-TIME APPLICATION OF CSRD AND ESRS
The consolidated non-financial report (sustainabilit
y state-
ment) was prepared for the first time on the basis of the
Corporate Sustainability Reporting Directive (CSRD, EU
Directive 2022/2464). All sustainability matters, which also
reflect the material sustainability topics of the CSRD, are
covered in accordance with the Austrian Sustainability and
Diversity Improvement Act (NaDiVeG) and Section 267a of
the Austrian Commercial Code (UGB). Companies that
make use of the group exemption on the basis of the con-
solidated sustainability reporting are listed in the sustain-
ability statement in BP-1 “General basis for preparation of
consolidated non-financial report”. Detailed information can
be found in the chapter “Consolidated non-financial report”
starting on page 21 of the Group management report.
Business development and economic position
ECONOMIC ENVIRONMENT
The eurozone concluded 2024 with a reported real GDP
growth rate of 0.8 %. Private and public consumption
proved to be supports for growth, albeit weak in some
cases, while declining exports slowed the recovery process.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
7
Economic development varied from region to region. While
Spain and France, for example, proved to be the drivers of
this growth, Germany disappointed with continued stagna-
tion, weighed down by the ongoing weakness of the global
industrial economy. Austria has also reported a contraction
in real GDP of 1.2%, while Erste Group analysts summarise
a real GDP growth of 2.0% in 2024 for the Central and East-
ern Europe region.
Inflation in the Eurozone was 2.4% in 2024, meaning it has
been less than half the rate of the previous year. The disin-
flationary process prompted the European Central Bank
(ECB) to lower its deposit rate to 2.5% in its final step in
February 2025.
The Eurozone labour market remained strong and unem-
ployment rates low. The labour market in Central and East-
ern Europe remained stable. The Austrian labour market
also proved to be fundamentally robust, although the num-
ber of vacancies fell and the unemployment rate rose slightly.
LEGAL ENVIRONMENT
SUSTAINABLE FINANCE
A range of comprehensive European legislative initia
tives
have been introduced in recent years under the “European
Green Deal”. In the reporting year, VIG focused on the first-
time application of the EU Corporate Sustainability Report-
ing Directive (CSRD) and the associated mandatory Euro-
pean Sustainability Reporting Standards (ESRS) in accord-
ance with the currently applicable provisions of the Austrian
Sustainability and Diversity Improvement Act (NaDiVeG). In
order to exempt the Group companies outside of Austria
from reporting at the individual company level, VIG has de-
cided to apply the new requirements on a consolidated basis,
despite the lack of national implementation in Austria. The
implementation required extensive preparatory work at both
the Holding and Group company levels. The first Group-
wide consolidated sustainability statement, which was
prepared in accordance with these new requirements, can
be found in the chapter “Consolidated non-financial report”
of the Group management report starting on page 21. In
addition, the Corporate Sustainability Due Diligence Direc-
tive (CSDDD) entered into force on 25 July 2024. Member
States have two years to transpose the directive into
national law, and the first companies – including VIG – will
have to apply it from July 2027. The directive requires com-
panies to conduct the necessary human rights and environ-
mental due diligence with respect to their own activities and
those of their subsidiaries and business partners in their
“chain of activities”. In contrast to the real economy, the ob-
ligations of financial companies are initially limited to the
upstream part of the activity chain (“upstream activities”).
Furthermore, companies will be required to prepare a
transition plan that includes a strategy for how the company
will contribute to achieving the 1.5°C target.
In autumn 2024, the European Commission provided
further details on an earlier announcement to reduce red
tape by cutting corporate reporting by 25%. This initiative
will consist of several “Omnibus packages”, the first of
which was proposed by the European Commission in
February 2025 and includes amendments to the EU
Taxonomy Regulation, CSRD and CSDDD. The European
legislator is responsible for the final formulation of this first
“Omnibus package”. The European Commission’s pro-
posals include both changes to requirements that are
already applicable and to future requirements. For example,
the current mandatory reporting templates for the tax-
onomy KPIs and the sustainability reporting standards
(ESRS Set 1) are to be condensed and simplified. Future
additional bureaucratic burdens such as the sector-specific
sustainability reporting standards (ESRS Set 2) and a
potential extension of the due diligence obligations to
include the client relationships of financial companies
(CSDDD) are to be eliminated. The proposed restrictions on
the scopes of application (Taxonomy Regulation, CSRD) do
not offer any advantage for VIG, which is still subject to the
obligation, but they do pose an indirect disadvantage. Since
significantly fewer companies in the value chain would have
to report, the data situation could deteriorate. However, the
final impact on VIG can only be analysed after the European
legislative process has been completed.
8
Annual Financial Report 2024
DIGITAL RESILIENCE
The regulation of digital security in the financial sector
remained a focus at the European level during the reporting
period. Since 17 January 2025, the Digital Operational
Resilience Act (DORA) has been applicable to European
financial entities, requiring them, among other things, to
take all required security precautions to mitigate cyber
attacks and other risks in the area of information and com-
munication technology (ICT risks). Essential details for the
provisions in DORA are set at level 2. These level 2 meas-
ures were developed by the ESAs (EIOPA, EBA and ESMA)
in the course of 2024 in a joint committee. They will become
legally binding upon their adoption by the European Com-
mission and subsequent publication in the Official Journal
of the European Union.
INTERNATIONAL SANCTIONS
After significant changes to the dynamics, complexit
y and
extent of the international sanctions environment as a result
of Russia’s attack on Ukraine in 2022, multiple countries
and organisations, above all the European Union, the
United States of America and the United Kingdom of Great
Britain and Northern Ireland, imposed further compre-
hensive sanctions against Russia and Belarus or expanded
already existing sanctions in the reporting year. The
restrictions rang from (investment) restrictions for specific
economic sectors to embargoes on goods, complete trade
embargoes for specific regions to the significant expansion
of the number of persons and companies that were placed
on sanctions lists and with whom business relationships are
therefore prohibited. As in the previous year, the European
Union, the United States of America and the United
Kingdom of Great Britain and Northern Ireland again step-
ped up their efforts to prevent sanctions being circum-
vented. In this context, in 2024, numerous individuals and
companies from outside Russia and Belarus were sanc-
tioned. This also includes persons with nationalities from EU
countries or companies with their registered office in the EU.
In 2024, also Iran was once again the target of sanctions,
particularly by the European Union and the United States of
America. The main reasons for that were the attacks on
Israel and the continued military support for Russia. Further
restrictive measures were already adopted in 2025 due to
ongoing conflicts, particularly in relation to Russia and the
Middle East.
GROUP BUSINESS DEVELOPMENT AND FINANCIAL
P
ERFORMANCE INDICATORS
FINANCIAL PERFORMANCE INDICATORS
The key financial performance indicators that form t
he basis
for assessing the business development are presented
below. All disclosures are based on IFRS figures. Due to a
lack of data availability, market data relates to the gross writ-
ten premiums in the respective period.
Gross written premiums
Further details on the gross written premiums are included
in Note 1.7. Risk of concentration on page 167.
In 2024, VIG Insurance Group achieved gross written
premiums of EUR 15,226.3 million and thus an increase of
10.5% year-on-year (2023: EUR 13,784.0 million).
With double digit growth rates in comparison to the pre-
vious year, gross written premiums in the segments Ex-
tended CEE (+10.5%) and Special Markets (+59.4%) grew
especially strongly. Of the countries in the Extended CEE
segment, Romania (+16.3%), the Baltic states (+10.4%),
Slovakia (+7.4%) and Bulgaria (+14.8%) in particular re-
corded dynamic premium development. In the Special
Markets segment, Türkiye recorded strong premium growth
in particular (+96.7%).
Insurance service revenue – issued business
Additional details on the insurance service revenue issued
business, hereinafter referred as “Insurance service rev-
enue”, are included in Note 1.3. Insurance contracts issued
starting on page 142 in the notes to the consolidated finan-
cial statements.
The insurance service revenue in the year 2024 amounted
to EUR 12,138.5 million (2023: EUR 10,921.8 million), with
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
9
all segments showing growth. The increase of 11.1% com-
pared to the previous year is primarily due to growth in pro-
perty and casualty insurance (accounted for using the Pre-
mium Allocation Approach) in the Extended CEE and
Special Markets segments.
Insurance service expenses – issued business
Further details on the insurance service expenses – issued
business, hereinafter referred as “Insurance service ex-
penses”, are included in Note 1.3. Insurance contracts is-
sued starting on page 142 in the notes to the consolidated
financial statements.
In 2024 the insurance service expenses amounted to
EUR 10,656.8 million (2023: EUR 9,265.3 million). The in-
crease of 15.0% compared to the previous year is mainly
due to the significant increase in business volume as well
as the increase in weather-related damage and natural
disasters.
Insurance service result – reinsurance held
Further details on the insurance service result – reinsurance
held can be found in Note 1.4. Reinsurance contracts held
starting on page 154 in the notes to the consolidated finan-
cial statements.
The insurance service result – reinsurance held resulted in
2024 in a loss of EUR 295.3 million (2023: loss of
EUR 448.4 million). The improved reinsurance result is pri-
marily due to the higher assumption of weather-related
damage.
Total capital investment result
Details on the investment result can be found in Note 9.
Notes to the consolidated income statement starting on
page 188 in the notes.
The total capital investment result consists of investment
result, income and expenses from investment property, in-
surance finance result and result from associated consoli-
dated companies. The two significant positions are the in-
vestment result in which the results of the assets evaluated
according to IFRS 9 are shown and the insurance finance
result, which primarily shows the interest effect of the
underwriting liabilities and assets or the total financing effect
of the Variable Fee Approach.
The total capital investment result increased in 2024 to
EUR 435.6 million (2023: EUR 284.3 million). The signifi-
cant increase compared to the previous year is primarily
due to higher interest revenues from the bond portfolio,
which benefited from the general development of market
interest rates. This improvement is not reflected in a higher
allocation to direct participating contracts in the Variable
Fee Approach portfolio, as the portfolio of underlying assets
shows a significant decrease in unrealised gains.
ABBREVIATED CONSOLIDATED INCOME STATEMENT
2024
2023
∆ in %
∆ absolute
in EUR million
Insurance service result 1,186.4
1,208.1
-1.8%
-21.7
Insurance service
revenue - issued business
12,138.5
10,921.8
11.1%
1,216.7
Insurance service
expenses - issued business -10,656.8
-9,265.3
15.0%
-1,391.5
Insurance service
result - reinsurance held
-295.3
-448.4
-34.1%
153.1
Total capital investment result 435.6
284.3
53.3%
151.4
Investment result 1,884.0
1,893.1
-0.5%
-9.0
Income and expenses from
investment property 60.6
31.8
90.4%
28.8
Insurance finance result -1,536.0
-1,657.1
-7.3%
121.1
Result from associated
consolidated companies 27.0
16.5
64.0%
10.5
Finance result -78.8
-98.5
-20.0%
19.7
Other income and expenses -545.0
-517.9
5.2%
-27.1
Business operating result 998.2
876.0
14.0%
122.2
Adjustments* -116.4
-103.3
> 100%
-13.1
Result before taxes 881.8
772.7
14.1%
109.1
Taxes -214.9
-196.4
9.4%
-18.5
Result for the period 666.9
576.2
15.7%
90.6
Non-controlling interests in net
result for the period 21.6
17.3
25.2%
4.3
Result for the period less
non-controlling interests 645.3
559.0
15.4%
86.3
Earnings per share (in EUR) 4.98
4.31
15.6%
0.7
*The value includes impairments of goodwill as well as (reversals of) impairments of intangible assets.
10
Annual Financial Report 2024
Result before taxes
The consolidated result before taxes increased in 2024 to
EUR 881.8 million (2023: EUR 772.7 million). The increase
of 14.1% originates predominately from the significantly
higher results in the segments Poland, Extended CEE,
Special Markets and Group Functions.
The result before taxes, adjusted for adjustments of
EUR 116.4 million (2023: EUR 103.3 million), which in 2024
mainly resulted from the impairment of goodwill in Hungary,
resulted in a business operating result of EUR 998.2 million
in 2024, which is 14.0% higher than the previous year’s
figure (2023: EUR 876.0 million).
Total capital investment portfolio
Further details on financial instruments can be found in
Note 2. Financial assets and liabilities as well as other
balance sheet items evaluated according to IFRS 9 from
page 171 in the notes to the consolidated financial
statements.
SPLIT OF THE CAPITAL INVESTMENTS HELD AT OWN RISK 2024
The total capital investment portfolio as of the reporting date
31 December 2024 amounted to EUR 44,568.3 million
(31 December 2023: EUR 42,586.1 million). The increase
of 4.7% year-on-year is primarily due to the increased
market values of the investments measured at fair value.
The financial instruments of unit- and index-linked life
insurance also increased by 10.2% from EUR 7,768.3
million in 2023 to EUR 8,558.4 million in 2024 due to the
positive market value development.
The “risk-bearing portfolio” includes cash and cash equiva-
lents, financial assets, investments in associates, invest-
ment property and owner-occupied property. As of 31 De-
cember 2024 the portfolio amounted to EUR 36,476.8 mil-
lion (31 December 2023: EUR 35,288.7 million) and cor-
responds to the total capital investment portfolio minus the
financial instruments for unit- and index-linked life insurance
plus owner-occupied property. As owner-occupied prop-
erty a value of EUR 466.8 million was reported as of 31 De-
cember 2024 (31 December 2023: EUR 471.0 million).
Consolidated shareholders’ equity
Further details on the consolidated shareholders’ equity are
included in the Notes starting on page 189.
The consolidated shareholders’ equity increased by 8.0%
in 2024 to EUR 6,513.3 million (31 December 2023:
EUR 6,029.7 million). This development is primarily attri-
butable to the retained profits and the positive development
of unrealised gains and losses recognised in equity. In 2024,
the equity attributable to shareholders amounted to
EUR 6,367.1 million (2023: EUR 5,892.3 million).
Insurance contracts liabilities issued
Further details on the insurance contracts liabilities issued
are included in Note 1.3. Insurance contracts issued
starting on page 142 in the notes to the consolidated
financial statements.
The insurance contracts liabilities issued amounted to
EUR 39,598.1 million as of the balance sheet date 31 De-
cember 2024 (31 December 2023: EUR 37,804.1 million).
This corresponds to an increase of 4.7% compared to the
previous year, which is mainly due to the increased business
Property 9.8%
(9.8%)
Loans 1.8% (2.1%)
Other investments
10.1% (8.1%)
Shares 3.2% (3.4%)
Bonds 73.8%
(74.9%)
Affiliated companies 1.3%
(1.7%)
Values for 2023 in parentheses
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
11
volume of product lines accounted in PAA – in particular in
property and casualty insurance – as well as to the positive
market development of the underlying assets in the Variable
Fee Approach – especially in the long-term life and health
insurance lines of business.
Cash flow
Cash flow from operating activities improved in 2024
primarily due to the increase in business volume to
EUR 346.0 million (2023: EUR -139.3 million). In 2024 cash
flow from investment activities was EUR 257.7 million (2023:
EUR 489.8 million). In 2024 the cash flow from financing
activities was EUR -409.6 million (2023: EUR -1,100.7 mil-
lion). The change in cash flow from financing activities is
primarily due to the buyback of subordinated bonds (re-
ported in the balance sheet item “Subordinated liabilities”)
in the previous year. At the end of 2024 cash and cash
equivalents of the Group were at EUR 1,748.1 million
(2023: EUR 1,558.1 million). In 2024, the received interest
and dividends in total amounted to EUR 1,018.1 million
(2023: EUR 899.3 million).
Earnings per share
Earnings per share is a key figure that compares the result
for the period (less non-controlling interests) to the average
number of shares outstanding. The number of shares com-
pared to the previous year remained unchanged.
In 2024 earnings per share were EUR 4.98 (2023: EUR 4.31).
The year-on-year increase is therefore 15.6% and reflects
the positive business performance.
Operating return on equity (Operating RoE)
Operating return on equity measures the profitability of
the insurance group. This ratio is calculated by dividing the
business operating result by the average shareholders’
equity less unrealised gains and losses.
As of 31 December 2024, Vienna Insurance Group
achieved an operating return on equity of 16.4%
(31 December 2023: 15.1%).
Operating Return on Equity 31/12/2024
31/12/2023
31/12/2022
adjusted
in EUR million
Shareholdersʾ equity 6,513.3
6,029.7
5,713.9
Unrealised gains and losses
recognised in equity* -195.7
-159.3
52.3
Adjusted shareholders’
equity 6,317.6
5,870.4
5,766.2
Average adjusted
shareholders’ equity 6,094.0
5,818.3
Business operating result 998.2
876.0
Operating RoE in % 16.4
15.1
*adjusted by non-controlling interests
Net combined ratio
The calculation of the net combined ratio is the insurance
service expenses for issued business less insurance service
expenses from reinsurance contracts held divided by the
insurance service revenue from issued business less
insurance service revenue from reinsurance contracts held
in property and casualty insurance.
The net combined ratio in 2024 remained at a solid level,
but increased in comparison to the previous year due to an
increase in weather-related damage and natural disasters
such as storm “Boris” to 93.4% (2023: 92.6%). Vienna In-
surance Group’s conservative reinsurance policy signifi-
cantly reduced the negative impact from storm “Boris”, lim-
iting the impact on the Group accordingly.
Net combined ratio 2024
2023
in EUR million
Insurance service revenue net 8,494.8
7,582.2
Attributable costs net -2,601.4
-2,306.3
Insurance service expenses excl.
attributable costs net -5,330.2
-4,711.7
Insurance service expenses net -7,931.6
-7,018.0
Net claims ratio in % 62.7
62.1
Net cost ratio in % 30.6
30.4
Net combined ratio in % 93.4
92.6
Contractual service margin (CSM)
The contractual service margin (CSM) includes the un-
realised profits originally priced into the insurance contract,
12
Annual Financial Report 2024
which is reported as a separate component of the technical
provisions. As of 31 December 2024 the CSM amounted to
EUR 5,523.2 million (31 December 2023: EUR 5,797.2 million)
and mainly stems from long-term life and health insurance.
This corresponds to a decrease of 4.7% compared to the
previous year, mainly due to changes in the Variable Fee
Approach as a result of lower interest rates.
BRANCH OFFICES
VIG Insurance Group has branch offices in Germany, F
rance,
Italy (2024 closed in accordance with regulatory law), Kosovo,
Slovenia, the Baltic countries Estonia, Latvia and Lithuania
and the North European countries Sweden, Norway and Den-
mark. Information on branches and any significant changes
compared to the previous year are discussed in more detail
for the respective reportable segment in the section below, if
applicable. A list of the addresses of the insurance com-
panies and pension funds and their branch offices is also
provided in VIG’s Group Annual Report 2024 on page 335.
BUSINESS DEVELOPMENT AND FINANCIAL
P
ERFORMANCE INDICATORS BY REPORTABLE SEGMENT
The reportable segments Austria, Czech Republic, Poland,
Extended CEE, Special Markets and Group Functions are
discussed below. The discussion focuses on the presen-
tation of these reportable segments and descriptions of the
market position held by VIG Group in the respective coun-
tries. A detailed presentation of the consolidated income
statement by reportable segment can be found the notes to
the consolidated financial statements starting on page 135.
INSURANCE SERVICE REVENUE
2024
2023
∆ in %
∆ absolute
in EUR million
Austria 3,543.2
3,307.4
7.1%
235.9
Czech Republic 2,078.2
2,040.1
1.9%
38.2
Poland 1,373.3
1,224.5
12.1%
148.8
Extended CEE
1
3,599.5
3,148.1
14.3%
451.4
Special Markets
2
924.2
617.6
49.6%
306.6
Group Functions
3
1,780.9
1,652.2
7.8%
128.6
Consolidation -1,160.8
-1,068.1
8.7%
-92.7
Total 12,138.5
10,921.8
11.1%
1,216.7
1
Extended CEE: Albania incl. Kosovo, Baltics, Bosnia-Herzegovina, Bulgaria, Croatia, Hungary,
Moldova, North Macedonia, Romania, Serbia, Slovakia, Ukraine
2
Special Markets: Georgia, Germany, Liechtenstein, Türkiye
3
Group functions: VIG Holding, VIG Re, Wiener Re, VIG Fund, corporate IT service providers, asset
management company and intermediate holding companies
RESULT BEFORE TAXES
2024
2023
∆ in %
∆ absolute
in EUR million
Austria 336.1
385.9
-12.9%
-49.8
Czech Republic 211.1
218.0
-3.1%
-6.8
Poland 65.1
29.4
> 100%
35.7
Extended CEE
1
159.7
101.0
58.1%
58.7
Special Markets
2
88.6
64.2
37.9%
24.3
Group Functions
3
21.3
-25.8
n/a
47.1
Consolidation 0.0
0.0
n/a
0.0
Total 881.8
772.7
14.1%
109.1
1
Extended CEE: Albania incl. Kosovo, Baltics, Bosnia-Herzegovina, Bulgaria, Croatia, Hungary,
Moldova, North Macedonia, Romania, Serbia, Slovakia, Ukraine
2
Special Markets: Georgia, Germany, Liechtenstein, Türkiye
3
Group functions: VIG Holding, VIG Re, Wiener Re, VIG Fund, corporate IT service providers, asset
management company and intermediate holding companies
AUSTRIA
AUSTRIAN INSURANCE MARKET
In Austria the top 5 insurance groups in the country
in the
1
st
to 3
rd
quarter 2024 generated approximately 71% of the
gross written premiums. The two largest insurance groups
contributed around 44%.
MARKET DEVELOPMENT 1
ST
TO 3
RD
QUARTER 2024 COMPARED TO
THE PREVIOUS YEAR
+11.1%
+5.9%
Source: Austrian Insurance Association
EUR 16.5 bn
EUR 10.3 bn
+1.2%
9M 2024 figures
+5.4%
Life
Property and
casualty
Total
Health
EUR 2.3 bn
EUR 3.9 bn
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
13
In the 1
st
to 3
rd
quarter of 2024, the Austrian insurance in-
dustry generated a total of EUR 16.5 billion gross written
premiums. Compared to the previous year this corresponds
to an increase of approximately 5.4%, which is primarily
attributable to the positive development of health insurance
as well as of property and casualty insurance.
In the 1
st
to 3
rd
quarter 2024 an increase of 5.9% in the
property and casualty insurance was recorded year-on-year.
The motor vehicle insurance contributed with an increase in
the gross written premiums of 7.0%, which is especially
attributable to the increased price levels. The premiums in
the motor third party liability insurance grew by 5.5%, in the
motor own damage insurance (Casco) by 9.2%. The pre-
miums in the non-motor lines of business grew by 5.3% in
the 1
st
to 3
rd
quarter 2024.
In life insurance a moderate increase in gross written
premiums of 1.2% was recorded in the 1
st
to 3
rd
quarter
2024. While the income from regular-premium life insur-
ance declined slightly by 1.1% year-on-year, a double-digit
gain of 21.1% was recorded in single-premium life in-
surance. Unit- and index-linked life insurance also
recorded a significant increase of 11.7% compared to the
same period in the previous year. In income protection
insurance, which is also classified as life insurance, slight
growth of 2.6% was achieved. Endowment insurance,
which constitutes the largest share of life insurance,
recorded a decline of 5.5%. The gross written premiums in
the health insurance developed positively with an increase
of 11.1% year-on-year.
According to internal calculations based on data from the
International Monetary Fund (IMF) and the Austrian Insur-
ance Association (VVO), in 2023 an average of EUR 2,220
per capita was spent for insurance in Austria. Of which the
non-life sector accounted for EUR 1,656 and life insurance
accounted for EUR 564.
MARKET SHARE OF THE LARGEST INSURANCE GROUPS
VIG COMPANIES IN AUSTRIA
VIG is represented by the two insurance companies Wi
ener
Städtische and Donau Versicherung in Austria. s Versicherung,
which was merged with Wiener Städtische in 2018, continues
to exist as a brand for bancassurance customers. Wiener
Städtische also operates via a branch in Slovenia. The branch
in Italy was closed in 2024 for regulatory reasons.
VIG Holding operates out of Austria as a reinsurer of the
Group and an insurer in the cross-border corporate busi-
ness. In addition, since 2019 it operates via branches in the
Northern European countries of Sweden, Norway and
Denmark in the traditional industrial insurance business. VIG
Holding is assigned to the segment Group Functions.
The VIG insurance companies are the leading insurance
group in Austria with a market share of 23.0% in the 1
st
to
3
rd
quarter 2024. In property and casualty insurance and in
life insurance it holds first market rankings, in the health
insurance business it takes third place.
Source: Austrian Insurance Association; as of 9M 2024
23.0%
VIG ranked 1
st
20.6%
Ranked 2
nd
15.2%
Ranked 3
rd
41.2%
Other participants
Per cent of total premium volume
14
Annual Financial Report 2024
FINANCIAL PERFORMANCE INDICATORS IN THE REPORTABLE
SEGMENT AUSTRIA
Insurance service revenue
The insurance service revenue in 2024 amounted to
EUR 3.543,2 million (2023: EUR 3.307,4 million). This corre-
sponds to an increase of 7,1 %, which is due in particular to
the positive development in the non-life insurance line of busi-
ness (accounted for using the Premium Allocation Approach).
INSURANCE SERVICE REVENUE BY LINE OF BUSINESS
Result before taxes
The result before taxes in the segment Austria amounted to
EUR 336.1 million in 2024 (2023: EUR 385.9 million). This
corresponds to a decrease of 12.9%, which is mainly due
t
o the decrease in the total capital investment result and the
decline in the combined ratio.
Net combined ratio
At 92.5%, the net combined ratio remained at a good level
in 2024 despite a weather related higher claims ratio (2023:
91.6%).
CZECH REPUBLIC
CZECH INSURANCE MARKET
In the 1
s
t
to 3
rd
quarter of 2024 the insurance market in the
Czech Republic was dominated by the top 5 insurance groups,
which together held a share of approximately 84% of the
total gross written premiums. The two largest insurance
groups contributed around 56%.
MARKET DEVELOPMENT 1
ST
TO 3
RD
QUARTER 2024 COMPARED TO
THE PREVIOUS YEAR
According to the market share analysis of the Czech insur-
ance association ČAP, the Czech insurance market record-
ed gross written premiums in the amount of CZK 139.8 bil-
lion in the 1
st
to 3
rd
quarter of 2024 and thus an increase of
7.6% year-on-year. Both life insurance (+4.3%) and non-life
insurance (+8.7%) contributed to this growth.
In the motor lines of business the motor own damage insur-
ance had a remarkable increase of 11.8% year-on-year. The
motor third party liability insurance also developed positively
with an increase of 5.8%. Both lines of business benefited in
2024 from the dynamic price development as well as from the
increased number of newly insured vehicles (+2.8% in motor
third party liability insurance; +10.2% in motor own damage
insurance). In non-motor insurance there was an increase of
10.4% in the 1
st
to 3
rd
quarter 2024 largely influenced by the
double-digit growth rate in the property insurance.
The growth in life insurance is mainly due to the good
performance of single-premium life insurance, which
recorded an increase of 15.3%. Private health insurance
also recorded a strong increase of 25.7%. Index-linked life
insurance achieved growth of 10.2%.
Non-life
Source: Czech Insurance Association
+7.6%
+8.7%
+4.3%
Total Life
9M 2024 figures
CZK 139.8 bn
CZK 33.6 bn
C
ZK 106.2 bn
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
15
MARKET SHARE OF THE LARGEST INSURANCE GROUPS
According to internal calculations based on the data of the
International Monetary Fund (IMF) and the Czech Insurance
Association, the Czech population spent an average of
EUR 786 per capita for insurance premiums in 2023. This
amount was divided into EUR 543 for non-life insurance
and EUR 243 for life insurance.
VIG COMPANIES IN THE CZECH REPUBLIC
VIG Insurance Group is represented by two companies
in the
Czech Republic, Kooperativa and ČPP. With a market share
of 32.4%, it was the largest insurance group in the Czech
Republic in the 1
st
to 3
rd
quarter 2024. It was in first place in
the market for both life insurance and non-life insurance. The
Group’s own reinsurance VIG Re, which has its headquarters
in Prague, is assigned to the segment Group Functions.
FINANCIAL PERFORMANCE INDICATORS IN THE REPORTABLE
SE
GMENT CZECH REPUBLIC
Insurance service revenue
T
he insurance service revenue was EUR 2,078.2 million in
2024 (2023: EUR 2,040.1 million). This represents a slight
increase of 1.9%, which is due to the positive development
of both motor insurance and other property and casualty
insurance.
INSURANCE SERVICE REVENUE BY LINE OF BUSINESS
Result before taxes
The result before taxes in the segment Czech Republic
amounted to EUR 211.1 million in 2024 (2023: EUR 218.0 mil-
lion). This decrease of 3.1% is primarily due to the deterio-
ration in the net combined ratio.
Net combined ratio
The net combined ratio increased in 2024 mainly due to
higher claims in the retail business and an increase in
weather-related claims, including storm “Boris”, to 94.8%
(2023: 91.3%).
POLAND
POLISH INSURANCE MARKET
The five largest insurance groups in the country wro
te ap-
proximately 78% of the gross written premiums in the first
three quarters of 2024. The three largest insurance groups
contributed approximately 63%.
In the 1
st
to 3
rd
quarter 2024 the Polish insurance market
generated PLN 63.3 billion and thus an increase of 9.6%
year-on-year. The increase is attributable to the good devel-
opment of both the non-life insurance (+12.0%) and also life
insurance (+4.0%).
Source: Czech Insurance Association; as of 9M 2024
11.5%
Ranked 3
rd
32.7%
Other participants
Per cent of total premium volume
32.4%
VIG ranked 1
st
23.4%
Ranked 2
nd
16
Annual Financial Report 2024
MARKET DEVELOPMENT 1
ST
TO 3
RD
QUARTER 2024 COMPARED TO
THE PREVIOUS YEAR
The motor insurance recorded growth in the 1
st
to 3
rd
quar-
ter 2024 - motor third party liability insurance increased by
10.7% compared to the same period in the previous year
partly due to the increase in average premiums (+7.0%).
The premiums in motor own damage insurance (Casco) in-
creased by 10.2%, which can be partly attributed to the in-
creased number of new contracts concluded (+5.7%). The
non-motor lines of business grew by 13.5% especially as a
result of the good development in the property and industrial
insurance. The health insurance products in the non-life in-
surance showed a significant increase of 18.9% year-on-year.
Life insurance recorded an increase of 4.0% year-on-year
in the 1
st
to 3
rd
quarter 2024. This is mainly due to the posi-
tive development of life insurance with regular premiums,
which increased by 6.1% in the first nine months of 2024
compared to the same period in the previous year. In con-
trast, single-premium life insurance recorded a decline of
7.6% in the 1
st
to 3
rd
quarter 2024.
The average insurance spending per resident in Poland
amounted to EUR 473 per capita in 2023 according to the cal-
culations of the data of the International Monetary Fund (IMF)
and Polish financial market authorities. Of which EUR 336 was
for non-life insurance and EUR 137 for the life insurance area.
MARKET SHARE OF THE LARGEST INSURANCE GROUPS
VIG COMPANIES IN POLAND
VIG Insurance Group is represented on the Polish mar
ket by
Compensa Non-Life, the digital insurer Beesafe, InterRisk, the
life insurer Vienna Life and the pension fund Wiener PTE.
Since 2019, InterRisk has held a stake in the mutual insurance
association TUW “TUW”.
In 2024, Vienna Insurance Group consolidated its market pre-
sence in Poland from six insurance companies to three. The
merger of the non-life companies Compensa and Wiener
TU in July 2024 created a key player on the Polish non-life
insurance market, which operates under the brand name
Compensa Non-Life. InterRisk will continues to operate in-
dependently. The three life insurance companies Compensa
Life, Vienna Life and Aegon Life were merged to form a
larger, strong market player in the life insurance business,
operating under the Vienna Life brand. The merger was
completed in October 2024.
VIG Insurance Group ranks fourth in the overall market in
Poland with a share of 8.5% in the first nine months of 2024.
In the non-life segment, it is also ranked fourth, and in the
life segment fifth, among the top insurers.
Non-life
Source: Financial Market Authority Poland
+12.0%
+4.0%
Total Life
9M 2024 figures
PLN 63.3 bn
PLN 17.7 bn
P
LN 45.5 bn
+9.6%
Source: Financial Market Authority Poland; as of 9M 2024
8.5%
VIG ranked 4
th
15.4%
Ranked 2
nd
35.1%
Ranked 1
st
28.7%
Other participants
Per cent of total premium volume
12.3%
R
anked 3
rd
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
17
FINANCIAL PERFORMANCE INDICATORS IN THE REPORTABLE
SEGMENT POLAND
Insurance service revenue
The insurance service revenue in 2024 amounted to
EUR 1,373.3 million (2023: EUR 1,224.5 million). Compared
to the same period in the previous year, this represents an
increase of 12.1%, which is primarily due to the positive
development of other property and casualty insurance and
health insurance.
INSURANCE SERVICE REVENUE BY LINE OF BUSINESS
Result before taxes
In 2024, the result before taxes amounted to EUR 65.1 mil-
lion (2023: EUR 29.4 million). The significant increase com-
pared to the previous year is mainly due to the improvement
in the combined ratio. It should also be noted that the pre-
vious year’s result was negatively impacted by provisions for
restructuring.
Net combined ratio
In 2024, the net combined ratio improved to 95.6%, despite
an increase in weather-related claims (2023: 97.4%).
EXTENDED CEE
The reportable segment Extended CEE includes the
countries of Albania incl. Kosovo, Baltic states, Bosnia-
Herzegovina, Bulgaria, Croatia, Hungary, Moldova, North
Macedonia, Romania, Serbia, Slovakia and Ukraine.
Albania incl. Kosovo
VIG Insurance Group operates in the Albanian insurance
market with the non-life insurers Sigma and Intersig. It
ranked second in the market with a market share of 20.4%
in the first nine months of 2024. Via a branch Sigma is also
represented in Kosovo where it ranked sixth with a market
share of 9.3% in the 1
st
to 3
rd
quarter of 2024.
Vienna Life was founded in Albania in 2024 with a focus on
life and health insurance. The company’s licence was is-
sued by the Albanian Financial Supervisory Authority on
24 December 2024. Vienna Life was not included in the
scope of consolidation for 2024.
Baltic states
VIG insurance companies are represented in all three Baltic
states. Compensa Life has its headquarters in Estonia and is
also represented in Latvia and Lithuania via branch offices. BTA
Baltic operates in Latvia and is active in Estonia and Lithuania
with branches. The non-life company Compensa Non-Life op-
erates in Lithuania. It maintains branches in Latvia and Estonia.
VIG insurance companies are the market leader in the Baltic
states with a market share of 26.0% in the 1
st
to 3
rd
quarter
2024. They are ranked first in both non-life and life insurance.
Bosnia-Herzegovina
VIG Insurance Group is represented in the Serbian Republic
of Srpska of Bosnia-Herzegovina by Wiener Osiguranje with
headquarters in Banja Luka and by Vienna Osiguranje with
headquarters in Sarajevo. The VIG insurance companies
were in fourth place overall based on a market share of 8.7%
according to the data of the 1
st
to 3
rd
quarter 2024.
18
Annual Financial Report 2024
Bulgaria
On the Bulgarian insurance market VIG is represented by
Bulstrad Life and Bulstrad Non-Life. Together they held a
market share of 14.0% in the 1
st
to 3
rd
quarter 2024. Thus,
VIG insurance companies were in first place in Bulgaria. In
the non-life insurance sector they ranked third in the market
and in life insurance they are in second place.
In addition, the PAC Doverie pension fund is part of VIG
Insurance Group, and has a 24.5% market share in Bulgaria.
Croatia
In Croatia the VIG insurance company Wiener Osiguranje is
active. A market share of 7.7% in the 1
st
to 3
rd
quarter 2024
puts it in fourth place on the Croatian insurance market. It
is in fifth place in the non-life insurance sector and ranks
second in the life insurance sector.
Moldova
The VIG insurance company Donaris operates in Moldova.
With a market share of 12.5% in the 1
st
to 3
rd
quarter 2024
it is in fifth place on the market. In the non-life insurance
sector, it is in fourth place.
North Macedonia
On 1 July 2024, the North Macedonian non-life insurers
Winner Non-Life and Makedonija Osiguruvanje merged.
VIG is thus represented by one non-life and one life
insurance company in North Macedonia, Makedonija
Osiguruvanje and Winner Life, respectively. The two VIG
insurance companies together held a market share of 18.4%
in the 1
st
to 3
rd
quarter 2024. This makes the VIG companies
the leading insurance group in North Macedonia. VIG is the
leading company in the non-life sector and ranks third in the
life sector.
Romania
There are three VIG insurance companies operating in the
Romanian insurance market, the non-life insurer Omniasig,
the composite insurer Asirom and the life insurer BCR Life. In
addition, VIG is represented on the Romanian market with the
pension fund Carpathia Pensii. The portfolio of the Romanian
branch of Aegon Life in Poland acquired in 2023 was trans-
ferred to Asirom in 2024. VIG is the market leader in Romania,
with a market share of 25.7% in the 1
st
to 3
rd
quarter 2024.
It is the market leader in non-life insurance and ranks sec-
ond in life insurance.
Serbia
In Serbia, VIG Insurance Group is active with the Wiener
Städtische Osiguranje. With a market share of 10.9% it
occupied fourth place in the 1
st
to 3
rd
quarter 2024. In the
non-life insurance sector it is also in fourth place, in the life
insurance sector it ranks second.
Slovakia
Two VIG insurance companies, Kooperativa and Komunálna,
are represented in the Slovakian insurance market. In addition,
the pension company Kooperativa, d.s.s. (formerly 365.life.) is
part of VIG Insurance Group. With a market share of 28.4% in
the 1
st
to 3
rd
quarter 2024 they are in first place as the largest
insurance group in Slovakia. They are ranked first in both non-
life and life insurance.
Ukraine
The VIG non-life insurers Kniazha and USG as well as the
life insurer Kniazha Life are active in Ukraine. With a share
of 10.5% in the 1
st
to 3
rd
quarter 2024 the VIG insurance com-
panies are in second place in the overall market. In the non-
life sector, Vienna Insurance Group ranks second in Ukraine.
Hungary
In Hungary, Vienna Insurance Group operates with Union
Biztosító and Alfa Biztosító. According to the data published
by the Hungarian Association MABISZ from the 1
st
to 3
rd
quarter 2024, the VIG insurance companies are in first place
in the market with a market share of 18.8%. They are in first
place both in non-life and life insurance.
FINANCIAL PERFORMANCE INDICATORS IN THE REPORTABLE
SE
GMENT EXTENDED CEE
Insurance service revenue
The insurance service revenue in 2024 amounted to
EUR 3,599.5 million and was thus 14.3% above the
previous year’s figure (2023: EUR 3,148.1 million). The in-
crease resulted primarily from the good development in the
Baltic states, Bulgaria, Romania, Slovakia and Hungary. In
particular, motor insurance and other property and casualty
insurance achieved solid growth.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
19
INSURANCE SERVICE REVENUE BY LINE OF BUSINESS
Result before taxes
The result before taxes in the segment Extended CEE in
2024 was EUR 159.7 million (2023: EUR 101.0 million).
The significant increase compared to the previous year is
primarily due to the improvement in the combined ratio in
Romania and Slovakia.
In 2024, the result before tax, adjusted for adjustments of
EUR 116.3 million (2023: EUR 81.7 million), which are
primarily due to the impairment of goodwill in Hungary,
resulted in a business operating result of EUR 276.0 million
in the segment Extended CEE (2023: EUR 182.8 million).
Net combined ratio
In 2024, the net combined ratio in the segment Extended
CEE improved to 93.9% as a result of a better claims ratio
and cost ratio (2023: 95.2%).
SPECIAL MARKETS
The segment Special Markets includes the countries of
Ger-
many, Georgia, Liechtenstein and Türkiye.
Germany
VIG insurance companies InterRisk Non-Life and InterRisk
Life operate in Germany. The InterRisk companies distribute
exclusively through around 10,000 independent sales part-
ners. InterRisk Non-Life specialises in accident and liability
insurance and selected property insurance products.
InterRisk Life focuses on retirement provision and occu-
pational disability solutions, as well as protection for
surviving dependents. The VIG companies continue to be
successful in the German market as profitable niche
players.
The Group internal reinsurance company VIG Re has also
been represented by a branch in Germany since 2017. It is
assigned to the segment Group Functions.
Georgia
VIG Insurance Group is represented in Georgia by the com-
panies GPIH and IRAO. With a market share of 24.0% the
companies are the leading insurance group in Georgia in
the 1
st
to 3
rd
quarter 2024.
Liechtenstein
VIG is represented in Liechtenstein by the Group company
Vienna-Life, which ranked fourteenth in the market in 2023.
In order to better meet customer and market requirements,
Vienna-Life initiated a revision of its product range in the 4
th
quarter of 2023, including the implementation of a new
onboarding platform. Implementation took place in 2024,
and the distribution of the old products has been dis-
continued.
Türkiye
In Türkiye, VIG Insurance Group operates with the non-life
insurer Ray Sigorta and the life insurance company
Viennalife. With a market share of 5.2% the VIG insurance
companies reached fifth place on the Turkish market.
FINANCIAL PERFORMANCE INDICATORS IN THE REPORTABLE
SEGMENT SPECIAL MARKETS
Insurance service revenue
Insurance service revenue in the segment Special Markets
increased from EUR 617.6 million in 2023 to EUR 924.2 mil-
lion in 2024, mainly due to the dynamic business develop-
ment in Türkiye. This corresponds to a significant increase
of 49.6%, which is attributable to a higher premium volume,
particularly in motor insurance and other property and
casualty insurance in Türkiye. In addition, life insurance in
Türkiye also developed positively.
20
Annual Financial Report 2024
INSURANCE SERVICE REVENUE BY LINE OF BUSINESS
Result before taxes
In 2024 the segment Special Markets increased its result
before taxes considerably by 37.9% to EUR 88.6 million
(2023: EUR 64.2 million). This significant increase is pri-
marily due to the strong business development in Türkiye
mentioned earlier. It should also be taken into account that
the previous year’s result was impacted by impairments of
intangible assets of EUR 9.8 million.
Net combined ratio
The net combined ratio was 98.7% in 2024, primarily due to
increased weather-related claims in Germany (2023: 96.6%).
GROUP FUNCTIONS
The Group Functions reportable segment includes VIG
Holding (including the branches in Northern Europe), VIG Re
(including the branches in Germany and France), Wiener
Re, VIG Fund, corporate IT service providers, one asset
management company and intermediate holding com-
panies. VIG Holding primarily focuses on managerial tasks
for the Group. It also operates as the reinsurer for the Group
as well as in the international corporate business.
VIG Re, a reinsurance company established in Prague in
2008, offers tailored reinsurance solutions to both VIG insur-
ance companies and third parties. With its branches in Ger-
many and France, it is the leading reinsurance company in
the CEE region and is continuously expanding its market
position in continental Europe and Asia. At the end of 2024,
the rating agency Standard & Poor’s again confirmed the
“A+” rating of VIG Re with a stable outlook.
FINANCIAL PERFORMANCE INDICATORS IN THE REPORTABLE
SEGMENT GROUP FUNCTIONS
Insurance service revenue
The insurance service revenue was EUR 1,780.9 million in
2024 and thus over the previous year’s figures by 7.8%
(2023: EUR 1,652.2 million). The increase is mainly due to
a positive development resulting from the increased busi-
ness volume.
Result before taxes
In 2024, in the segment Group Functions, a result before
taxes in the amount of EUR 21.3 million was recognised
(2023: loss in the amount of EUR 25.8 million). The im-
proved result is primarily due to the higher total capital
investment result and the decline in the finance result due
to the early buyback of subordinated bonds (reported in the
balance sheet item “Subordinated liabilities”).
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
21
Consolidated non-financial report
CONTENTS
ESRS
standard
Disclosure
Requirement
Description Reference
ESRS 2 BP-1 General basis for preparation of consolidated non-financial report Page 23
BP-2 Disclosures in relation to specific circumstances Page 24
GOV-1 The role of the administrative, management and supervisory bodies Page 28
GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies Page 30
GOV-3 Integration of sustainability-related performance in incentive schemes Page 31
GOV-4 Statement on due diligence Page 31
GOV-5 Risk management and internal controls over consolidated sustainability reporting Page 32
SBM-1 Strategy, business model and value chain Page 33
SBM-2 Interests and views of stakeholders Page 38
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model Page 40
IRO-1 Description of the process to identify and assess material impacts, risks and opportunities Page 45
IRO-2 Disclosure requirements in ESRS covered by the undertaking’s consolidated non-financial report Page 47
E1 - Disclosures pursuant to Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation) Page 61
E1-1 Transition Plan for climate change mitigation Page 75
E1-2 Policies related to climate change mitigation and adaptation Page 80
E1-3 Actions and resources in relation to climate change policies Page 82
E1-4 Targets related to climate change mitigation and adaptation Page 83
E1-5 Energy consumption and mix Page 86
E1-6 Gross Scope 1, 2, 3 and Total GHG emissions Page 86
S1 S1-1 Policies related to own workforce of the company Page 94
S1-2 Processes for engaging with employees and employees’ representatives about impacts Page 96
S1-3 Processes to remediate negative impacts and channels for own workers to raise concerns Page 97
S1-4 Taking action on material impacts and approaches to managing material risks and pursuing material opportunities related to own
workforce, and effectiveness of those actions and approaches
Page 97
S1-5 Targets related to managing material impacts, advancing positive impacts, as well as to risks and opportunities Page 98
S1-6 Characteristics of the undertaking’s employees Page 99
S1-7 Characteristics of non-employees in the undertaking’s workforce Page 99
S1-8 Collective bargaining coverage and social dialogue Page 100
S1-9 Diversity metrics Page 100
S1-10 Adequate wages Page 100
S1-11 Social protection Page 101
S1-12 Persons with disabilities Page 101
S1-13 Training and skills development metrics Page 101
S1-14 Health and safety metrics Page 101
S1-15 Work-life balance metrics Page 102
S1-16 Compensation metrics (pay gap and total compensation) Page 102
S1-17 Incidents, complaints and severe human rights impacts Page 103
S4 S4-1 Policies related to consumers and end-users Page 103
S4-2 Processes for engaging with consumers and end-users about impacts Page 104
S4-3 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns Page 105
S4-4 Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material
opportunities in respect of consumers and end-users, and effectiveness of those actions
Page 106
S4-5 Targets related to managing material impacts, advancing positive impacts, as well as to risks and opportunities Page 108
G1 G1-1 Corporate culture and business conduct policies Page 109
G1-3 Prevention and detection of corruption and bribery Page 111
G1-4 Confirmed incidents of corruption or bribery Page 113
G1-5 Political influence and lobbying activities Page 113
- Additional company-specific disclosures Page 113
22
Group Annual Report 2024
GENERAL INFORMATION
PREAMBLE
All material topics of VIG’s sustainability activities are reported
in the consolidated non-financial report or sustainability state-
ment as part of the Group management report, in accordance
with both the currently applicable Austrian Sustainability and
Diversity Improvement Act (NaDiVeG, EU Directive 2014/95)
and the Corporate Sustainability Reporting Directive (CSRD,
EU Directive 2022/2464). This covers all sustainability mat-
ters in accordance with NaDiVeG and § 267a of the Austrian
Commercial Code (UGB), which reflect the material sustain-
ability matters of the CSRD. These topics will be addressed
in the consolidated non-financial report, regardless of the re-
porting standard used, provided that they are necessary for
an understanding of the impacts of the activity. They are
described in the chapters ESRS E1 “Climate change” for en-
vironmental matters in accordance with NaDiVeG; ESRS S1
“Own workforce” for employee matters in accordance with
NaDiVeG; ESRS S1 and ESRS S4 “Consumers and end-
users” for respect for human rights in accordance with
NaDiVeG and ESRS G1 “Business conduct” for combating
corruption and bribery in accordance with NaDiVeG.
At the time of reporting, the CSRD has not yet been trans-
posed into Austrian law. Therefore, the consolidated non-
financial report is being prepared on a voluntary basis in ac-
cordance with the EU requirements of the CSRD and the
European Sustainability Reporting Standards published in
this context. VIG discloses all material information on sus-
tainability-related impacts, risks and opportunities in ac-
cordance with the applicable European Sustainability Re-
porting Standards (ESRS) under the CSRD.
The report was voluntarily prepared in accordance with Article
29a of the EU Accounting Directive (EU Directive 2013/34) in
accordance with the ESRS and the EU Taxonomy. The scope
of consolidation of the consolidated non-financial report is the
same as that of the IFRS consolidated financial statements
(with the exception of reported data on the internal operations
of the three insurance companies in Ukraine). Companies that
make use of the group exemption on the basis of the con-
solidated sustainability reporting are listed in BP-1 “General
basis for preparation of consolidated non-financial report”.
On 26 February 2025, the European Commission announced
a simplification of sustainability reporting aimed at reducing
the administrative burden. The specific impact on the con-
solidated non-financial report of VIG cannot yet be esti-
mated at the current time of reporting.
Categories of ESRS Standards
The ESRS are divided into different categories of standards:
two cross-cutting standards (ESRS 1 “General requirements”
and ESRS 2 “General disclosures”) and three topical stan-
dards Environmental, Social and Governance (responsible
business conduct), which in turn comprise ten ESRS sub-
topic standards E1 to E5, S1 to S4 and G1.
The consolidated non-financial report has been prepared and
is presented in accordance with the general requirements of
ESRS 1. In accordance with the requirements of ESRS 2, VIG
fulfils the disclosure requirements of all material sustain-
ability matters of governance, strategy, management of im-
pacts, risks and opportunities, as well as metrics and tar-
gets (see reporting areas). In addition, VIG discloses sustain-
ability information in accordance with the topical standards.
In accordance with ESRS 1, topics whose impacts, risks and
opportunities have been rated as “not material” for both VIG
and sustainability matters are not taken into account.
COMPANY-SPECIFIC DISCLOSURES
VIG also discloses company-specific information that was
identified during the double materiality assessment at the
Group level.
Reporting areas
The disclosure requirements are divided into the following
reporting areas:
– Governance (GOV): governance processes, controls and
procedures for monitoring, managing and overseeing
impacts, risks and opportunities;
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
23
– Strategy and business model (SBM): the interaction of
the strategy and the business model with the material
impacts, risks and opportunities, including how they are
addressed;
– Impact, risk and opportunity management (IRO): pro-
cesses for identifying the impacts, risks and opportun-
ities, assessing their materiality and taking appropriate
action to address them;
– Metrics and targets (MT): metrics and defined targets
and progress towards achieving targets.
Double materiality as the basis for the non-financial report
The principle of double materiality is of fundamental impor-
tance for the consolidated non-financial report. On this
basis, the report aims to give readers an understanding of
two key perspectives: on the one hand, the impact of VIG’s
business activities on sustainability matters (inside-out per-
spective; impact materiality) and, on the other hand, how
sustainability matters can affect VIG’s financial position (out-
side-in perspective; financial materiality). The double ma-
teriality assessment thus forms the basis of the consoli-
dated non-financial report. Further details are provided in
chapter IRO-1 “Description of the process to identify and
assess material impacts, risks and opportunities”.
ESRS 2 – GENERAL DISCLOSURES
Basis for preparation
T
he following disclosure requirements were applied in the
preparation of the consolidated non-financial report:
DISCLOSURE REQUIREMENT BP-1 – GENERAL BASIS FOR
PREPARATION OF CONSOLIDATED NON-FINANCIAL REPORT
Scope of consolidation of the sustainability statemen
t
The ESRS reporting is prepared by VIG Holding for VIG (fully
consolidated companies) for the reporting period from
1 January 2024 to 31 December 2024. A sustainability state-
ment has therefore been prepared on a consolidated basis.
The principles of consolidation have been harmonised be-
tween the financial and sustainability reporting and applied
consistently.
The scope of consolidation of the CSRD sustainability state-
ment therefore corresponds to that of the consolidated fi-
nancial statements prepared in accordance with IFRS, with
the exception of reported data on the internal operations of
the three insurance companies in Ukraine. Details of these
three insurance companies can be found in the chapter
“The war in Ukraine” (see page 131). However, these three
companies were included in the calculation and reporting of
Scope 3.15 emissions in the same way as the other com-
panies. More information on the scope of consolidation and
the consolidation method is provided in the consolidated
financial statements in chapter “21. Affiliated companies
and participations” on page 210 and chapter “20. Business
combinations” on page 209.
In determining the ESRS scope of consolidation according
to the nature and scope of the inclusion of associated com-
panies, no undertakings over which VIG has operational
control were identified among the non-consolidated com-
panies in the financial reporting pursuant to IFRS. Green-
house gas emissions from at equity companies were rec-
ognised on a pro rata basis and included in Scope 3.15 in
accordance with the respective ownership interests.
The following table shows the companies for which the
group exemption from preparation of a separate sustain-
ability report is being utilised locally for the 2024 financial
year.
Company
Country
Alfa Hungary
Asirom Romania
BTA Baltic Latvia
Compensa Life Poland
Compensa Non-Life Lithuania
Compensa Non-Life Poland
ČPP Czech Republic
Donau Versicherung Austria
InterRisk Poland
Komunálna Slovakia
Kooperativa Czech Republic
Kooperativa Slovakia
Omniasig Romania
Union Biztosító Hungary
Wiener Osiguranie Croatia
Wiener Städtische Austria
24
Group Annual Report 2024
Coverage of the value chain
The term “value chain” encompasses the activities of inter-
nal operations, underwriting and asset management. Both
upstream and downstream activities are included. Further
information on the value chain can be found in chapter
ESRS 2 SBM-1 “Strategy, business model and value chain”.
The Vienna Insurance Group value chain was taken into ac-
count in the identification of material impacts, risks and op-
portunities in accordance with this categorisation.
Classified and sensitive information, and informatio
n on intellectual
property, know-how or results of innovation
No specific information was excluded with regard to intel-
lectual property, know-how or the results of innovations.
DISCLOSURE REQUIREMENT BP-2 – DISCLOSURES IN RELATION TO
SPECIFIC CIRCUMSTANCES
Time horizons
The following time horizons have been defined by VIG
in the
sustainability reporting:
– for the short-term time horizon: a reporting period of up
to two years
– for the medium-term time horizon: from the end of the
short-term reporting period up to five years
– for the long-term time horizon: more than five years
The time horizons are based on the general risk manage-
ment approach.
Value chain estimation
The following section describes the approaches for c
al-
culating emissions data for internal operations, underwriting
(corporate and retail) and asset management, including the
real estate portfolio.
Estimates in internal operations
Estimates were made in the reporting year for the environ-
mental metrics in internal operations where detailed con-
sumption data were not available. A uniform approach was
developed for this. If data on the energy consumption of
individual companies were not available or not available in
full, an extrapolation was carried out to enable the data-
points and greenhouse gas emissions to be calculated on
a consolidated basis. The net usable area of the respective
company, among other things, was used for this extrapo-
lation of the energy metrics. This figure was multiplied by a
median value (e.g. median of the reported electricity con-
sumption per square metre multiplied by the reported net
usable area of the company). The approach used therefore
provides a consistent and reliable basis for the extrapo-
lations and should thus ensure that the consumption data
are estimated as realistically as possible.
I
n addition, consumption data from some companies were
only available quarterly. If a company was not able to pro-
vide all energy metrics for 2024 in detail as of January 2025,
extrapolations were made based on the existing monthly
figures from the previous year. In these isolated cases,
therefore, a higher degree of measurement uncertainty may
exist.
The aim is to integrate the Ukrainian data for the year 2025,
depending on the war situation.
Value chain estimation in underwriting
F
or corporate underwriting, emissions have been calculated
in accordance with the Partnership for Carbon Accounting
Financials (PCAF) Standard, Part C, using the “economic ac-
tivity-based emissions estimate”. This calculation is based
on average emissions data for the respective industry. The
total absolute emissions of the policyholders in the insur-
ance portfolio were calculated by assigning the insurance
contracts to the average economic emission intensities of
the policyholders’ underlying industry. The policyholders’
revenue figures were often not recorded in the underwriting
system and therefore had to be estimated. The average cost
of risk (i.e. the average written premiums of policyholders in
the sector in relation to the revenue generated by policy-
holders with their company) was used to convert the pre-
miums written under the insurance contracts into an esti-
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
25
mate of the insured revenue (representative of the share of
the total insurance). The insurance contracts were then
mapped to industry averages using NACE codes of varying
granularity. The NACE code is the classification of economic
activities in the European Union (the term “NACE” derives
from the French title “Nomenclature statistique des activités
économiques dans la Communauté européenne”). This
estimate reflects the share of absolute emissions of policy-
holders that are covered by the insurance contracts. The
insurance-associated emissions were calculated by dividing
the total absolute emissions by the average cost of risk of
the underlying sector to obtain the insured revenue in that
industry. This figure was then multiplied by the average
emission intensity (tCO
2
e/revenue) of this sector in order to
obtain the estimated emissions. Alternatively, the premiums
written under an insurance contract can be divided by the
cost of risk and then multiplied by the average energy in-
tensity of the respective sector. The emissions data for
underwriting (corporate) were calculated in the reporting
year with a reporting date of 31 October 2024. This differ-
ence in reporting date has no material impact in terms of
data quality, since at that time the vast majority of the rele-
vant data was already available and the remaining two
months did not cause any significant changes in the port-
folio. Since average values were used to calculate the emis-
sions, a certain degree of measurement uncertainty in the
reporting year cannot be ruled out. Within the scope of the
given possibilities, every effort has been made to minimise
or completely avoid estimation uncertainties. In the future,
the focus will continue to be on improving data quality in
order to ensure a more precise recording of emissions.
In the area of retail underwriting (private households and
small and medium enterprises), a reference value (baselin-
ing) was established for the reported emissions in the motor
portfolio in accordance with the PCAF Standard (Part C)
“Insurance-Associated Emissions”. The estimated vehicle-
specific approach (Score 2-3) was used for estimates for
passenger cars and vans as described in the PCAF
standard and the estimated vehicle-unspecific approach
(Score 4) for other vehicles. These approaches were chosen
because no primary data are available from the motor port-
folio of policyholders for the actual vehicle-specific approach
(Score 1). Using data based on existing insurance contracts,
each vehicle with a motor third party liability insurance
(MTPL) policy was assigned emission values in the motor
portfolio. Based on the data submitted annually by the indi-
vidual consolidated companies, which in the reporting year
were submitted with a reporting date of 31 October 2024,
the emissions were calculated using two indicators: vehicle-
specific emissions per 100 km driven and the annual dis-
tance travelled by the vehicle.
For the reporting year, approx. 77% of the reported emis-
sions were calculated using the official CO
2
e data from ve-
hicle manufacturers. The remaining emissions represent an
approximate value based on the estimation methodology
cited. The data gap for this remaining approximately 23%
of emissions is due to the fact that not all vehicle iden-
tification numbers (VINs) were available in full. Therefore, an
approximation based on the known vehicle categories in
the respective country was used in this context. The data
on kilometres travelled were obtained from public sources.
For about 8% of the companies, mileage was derived from
local statistical databases. If such data were not available,
the average mileage from various publications was used for
each country and vehicle category. The earlier reporting
date did not result in any significant inaccuracies with regard
to the data quality in the underwriting (retail) portfolio, as
there were only minor fluctuations and seasonality had no
material impact on the emissions calculations. In order to
improve the accuracy of the emissions collected in the
future, the aim in the coming years will be to obtain even
more precise information about the distance travelled by
vehicles and to improve the CO
2
e emissions database with
a view to improving the recording of vehicle types.
Value chain estimation in asset management
I
n the area of asset management, 74.78% of corporate
bonds and equities were directly covered by emissions data
from an external ESG database of a specialised financial
service provider in 2024 (including investment fund units).
26
Group Annual Report 2024
The coverage rate for government bonds in the reporting
year was 99.90%. If the external financial service provider
was unable to collect direct data on emissions by the
reporting date of 31 December 2024, the financial service
provider’s internal models were used to estimate the data.
This means that an adequate level of accuracy can be
assumed. The quality of the emissions data available is ex-
pected to continue to improve as more companies disclose
their emissions. As a result, the coverage rate will also in-
crease and the portion of the portfolio that is currently ex-
trapolated based on the available emissions will decrease in
the future.
Value chain estimation in the real estate portfolio
T
he financed emissions from VIG’s real estate portfolio were
collected and calculated in accordance with PCAF Part A –
“Financed Emissions”. These emissions were calculated
using three approaches based on the availability of primary
and secondary data with descending data quality in ac-
cordance with PCAF Part A. A detailed description of the
calculation of emissions from VIG’s real estate portfolio can
be found in section ESRS E1-6 “Gross Scopes 1, 2, 3 and
Total GHG emissions”, which presents VIG’s greenhouse
gas emissions (GHG).
A distinction was made between actual emissions and es-
timated and calculated emissions when collecting the
relevant emissions. For all properties for which verifiable and
complete consumption figures were available, the actual
emissions were collected and reported. For all those
properties for which no (detailed) consumption data were
currently available, the information shown on the energy
performance certificate was used to calculate the total
emissions. To do this, the estimated energy consumption
per m2 based on the information in the energy performance
certificate was used to calculate the emissions based on an
average emission factor for the energy source used. In the
case of real estate investments for which neither
consumption data nor energy performance certificates
were available, estimates were carried out in the same way
as for the other investment classes, using approximations
from an external specialised financial service provider in
accordance with the NACE classification. Consequently,
VIG used all three approaches proposed by PCAF Part A
for calculating the real estate portfolio’s emissions. As data
quality increases, the inaccuracy of estimates will gradually
decrease in the future.
Sources of estimation and outcome uncertainty
The same method used for the consolidated income state-
ment in financial reporting was used to translate foreign cur-
rency amounts into the reporting currency of euros during
the financial year in order to ensure consistent and com-
parable reporting in accordance with ESRS 1 (see chapter
25.1 “Currency translation”). Where possible, actual and up-
to-date emissions data from the investee companies, taken
from the external database used, were used to determine the
financed emissions. Missing emissions data in the portfolio
in 2024 were described under “Value chain estimation in
asset management”.
All the estimates described above in relation to the envi-
ronmental metrics, as well as any associated possible
measurement uncertainty, were therefore mainly due to a
lack of available data. For example, in the case of real estate
leased by VIG, not all of the tenants’ consumption data
were known, and in the retail customer motor portfolio,
information on the kilometres driven and the actual fuel con-
sumption of policyholders was not fully available. Likewise,
estimates were sometimes required in the area of under-
writing for corporate customers where it was not possible
to assign the actual pro rata insured emissions.
The use of industry averages to determine financed and
insured emissions is based on the assumption that the port-
folio companies are, on average, close to the industry aver-
age. This approach was used on the basis of the business
model and owing to a lack of granular data.
Changes in preparation or presentation of sustainabi
lity information
As this is the first year of sustainability reportin
g in ac-
cordance with the CSRD/ESRS, there are no changes to
report under ESRS 2 BP-2 “Disclosures in relation to spe-
cific circumstances”. However, the process has changed
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
27
significantly compared to the GRI reporting of the 2023
Sustainability Report and the scope of the report has been
extended beyond the insurance companies. The newly
added non-insurance companies were gradually incor-
porated into the reporting in 2024 and fully integrated into
the process. Furthermore, a double materiality assessment
was carried out to comply with the new statutory require-
ments (see chapter IRO-1 – “Description of the process to
identify and assess material impacts, risks and opportunities”).
Following the introduction of ESRS reporting, the figures for
the EU Taxonomy are now presented in a separate chapter
of the consolidated non-financial report. Compared to the
previous year, 100% of all consolidated non-life insurance
companies of VIG were included in the evaluation of the
technical screening criteria (TSC) in the underwriting pro-
cess. In addition, a Group Guideline entitled “MSS Screen-
ing in Underwriting” was created in 2024 to comply with the
minimum social safeguards (MSS).
Reporting errors in prior periods
Since this is the first year in which the consolidat
ed non-
financial report was prepared in accordance with the CSRD/
ESRS, the disclosure of errors from previous reporting pe-
riods is not applicable.
Disclosures stemming from other legislation or generally accepted
pronouncements on the consolidated non-financial report
Disclosures in accordance with Article 8 of Regulati
on
2020/852 (Taxonomy Regulation) are published in the en-
vironmental information (see page 61). Where information
has been included in the consolidated non-financial report
on the basis of other legislation or recognised standards,
this has been indicated in the appropriate places. Refer-
ences outside the consolidated non-financial report:
Chapter ESRS reporting Reference
BP-1
General basis for preparation of
consolidated non-financial report
Consolidated financial statements,
chapter "The war in Ukraine"
BP-2
Disclosures in relation to specific
circumstances
Consolidated financial statements,
chapter "Currency translation"
GOV-1
The role of the administrative,
management and supervisory
bodies
Corporate Governance Report,
chapter “Supervisory Board
independence”
GOV-2
Information provided to and
sustainability matters addressed
by the undertaking’s
administrative, management and
supervisory bodies
Chapter “Procedures followed by
the Managing Board and by the
Supervisory Board and its
committees”
GOV-3
Integration of sustainability-related
performance in incentive schemes
Consolidated financial statements,
chapter "Compensation policies for
Managing Board members"
GOV-5
Risk management and internal
controls over consolidated
sustainability reporting
Consolidated financial statements,
chapter "Risk strategy and
objectives"
SBM-1
Strategy, business model and
value chain
Chapters “Strategic principles”,
“Sustainability programme”
Group management report,
chapter “Financial performance
indicators”
SBM-2
Interests and views of
stakeholders
Chapter “Strategy programme”
SBM-3
Material impacts, risks and
opportunities and their interaction
with strategy and business model
Consolidated financial statements,
chapters "Goodwill",
"Calculation of fair value"
MDR-P
Policies adopted to manage
material sustainability matters:
Chapters “Strategic principles“,
“Sustainability programme”
MDR-T
Tracking effectiveness of policies
and actions through targets
“Strategy programme”,
“Sustainability programme”
E1-6
Gross Scopes 1, 2, 3 and Total
GHG emissions: Insurance
turnover: Insurance service
revenue – issued business
Consolidated financial statements,
chapter "Consolidated income
statement“
E1-6
Gross Scopes 1, 2, 3 and Total
GHG emissions: Real estate
income (from rented properties of
insurance companies and from
real estate holding companies)
Consolidated financial statements,
chapter 4. "Investment property“
E1-6
Gross Scopes 1, 2, 3 and Total
GHG emissions: IFRS 15 turnover
from non-insurance companies:
Other income (other revenue from
services)
Consolidated financial statements,
chapter 15.3 "Other income and
expenses“
IRO-1
Description of the process to
identify and assess material
impacts, risks and opportunities
Notes, chapter "Risk strategy and
risk management"
28
Group Annual Report 2024
Governance
DISCLOSURE REQUIREMENT GOV-1 – THE ROLE OF THE
ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY BODIES
The VIG Holding Managing Board comprised seven mem-
bers as of 31 December 2024. The Supervisory Board con-
sists of 12 members. There is no works council at VIG Hold-
ing, so there are no workers’ representatives on the Super-
visory Board. The interests of employees are covered by the
specific activities described in more detail in the chapter on
Disclosure Requirement ESRS S1-2 “Processes for engag-
ing with employees and employees’ representative about
impacts”, as well as through due consideration in the rele-
vant bodies.
The areas of responsibility and country responsibilities of the
members of the Managing Board are described in the Cor-
porate Governance Report (from page 279).
The gender-specific composition and other diversity metrics
for both the Managing Board and the Supervisory Board of
VIG Holding are presented below. Gender, generations and
internationality are the primary diversity criteria in relation to
top management. The data as of 31 December 2024 were
used to calculate the percentage distribution.
VIG Holding Managing
Board
Supervisory Board of VIG
Holding
Total
in %
Total
in %
Gender
Male 6
86.71%
7
58.33%
Female 1
14.29%
5
42.66%
Nationality
Austrian 6
86.71%
6
50.00%
Non-Austrian 1
14.29%
6
50.00%
Generations
Under 30 years old 0
0.00%
0
0.00%
30-50 years old 3
42.86%
2
16.66%
Over 50 years old 4
57.14%
10
83.33%
75% of the members of the Supervisory Board elected by
the Annual General Meeting can be categorised as inde-
pendent in accordance with the criteria for independence
defined by the Supervisory Board pursuant to C-Rule 53 of
the Austrian Code of Corporate Governance; see page 285
“Supervisory Board independence”.
The Corporate Governance Report starting on page 279
provides comprehensive information on the roles and re-
sponsibilities of the Managing Board and the Supervisory
Board. This includes an overview of the individuals and
committees of the Supervisory Board. The Supervisory
Board, as a whole, regularly deals with sustainability issues.
The Supervisory Board has established the Committee for
Urgent Matters (Working Committee), the Audit Committee
(Accounts Committee), the Committee for Managing Board
Matters (Personnel Committee), the Strategy Committee
and the Nomination Committee. It performs all activities de-
fined under the law, articles of association and the pro-
cedural rules of the Supervisory Board. The Audit Com-
mittee (Accounts Committee) performs the tasks in accord-
ance with § 92 (4a) of the Austrian Stock Corporation Act
(AktG) and § 123 (9) of the Austrian Insurance Supervision
Act (VAG) 2016. It is therefore responsible in particular for
the auditing and preparation of the approval of the separate
financial statements, the proposal for appropriation of
profits and the management report. The Audit Committee
is also responsible for auditing the consolidated financial
statements and making a proposal for the election of the
auditor, and reporting to the Supervisory Board on the mat-
ter. The Committee for Managing Board Matters (Personnel
Committee) deals in particular with the personnel matters of
the Managing Board members and reviews the remu-
neration policy at regular intervals. The Managing Board
submits the Group management report and thus the con-
solidated non-financial report contained therein to the Audit
Committee and the Supervisory Board as a whole, and the
Audit Committee and Supervisory Board then audit the
consolidated non-financial report as part of the audit of the
management report.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
29
The VIG Holding Managing Board is responsible for the man-
agement of the company and the Group. The Managing
Board manages the business of the Company under the
leadership of its Chairperson and within the constraints of the
law, articles of association and procedural rules of the Man-
aging Board. It meets as needed (generally every two weeks)
to discuss current business developments, and makes the
necessary decisions and resolutions during the course of
these meetings. The Managing Board members continu-
ously exchange information with each other and with the
heads of various departments. Sustainability is fundamen-
tally embedded as a cross-cutting theme in all areas of the
organisation and is therefore an integral part of the core
topics. Accordingly, the responsibility for implementing sus-
tainability matters also lies with the respective departmental
areas, or is decentralised among the companies.
Sustainability matters are taken into account by the indi-
vidual departments when performing their tasks within the
scope of their respective responsibilities on the VIG Holding
Managing Board. In addition, a Group Sustainability Office
(GSO) has been established within VIG Holding to consoli-
date and coordinate efforts. This office is assigned to the
portfolio of the Chairman of the Managing Board. On behalf
of the Managing Board, it coordinates and manages the
sustainability activities and their further development at VIG,
involving the relevant departments.
A Sustainability Committee, consisting of members of the
Managing Board and managers from various departments
of VIG, deals with material topics concerning the intro-
duction, implementation and further development of VIG’s
sustainability activities across the board. In particular, it is
responsible for making recommendations to the Managing
Board as a whole on material topics relevant to sustain-
ability-related resolutions. The Sustainability Committee
meets at least quarterly, and the Managing Board is up-
dated by means of the relevant minutes and, if necessary,
an oral report at a Managing Board meeting. The following
are represented on the Sustainability Committee: Deputy
Chairman of the Managing Board, Chief Finance and Risk
Officer (CFRO), Chief Operating Officer (COO) and, in par-
ticular, managers from the Corporate Business, Retail Insur-
ance & Business Support, Asset Management (including
Real Estate), Human Resources, European Affairs and Risk
Management departments. To ensure close coordination
with the ESRS reporting process, the team leader for ESRS
reporting is also represented at the Sustainability Com-
mittee meetings, in addition to the Head of Group Finance
and Regulatory Reporting. The nomination of these repre-
sentatives within VIG Holding is linked to the spheres of
impact of VIG’s sustainability programme. The Group Sus-
tainability Office is responsible for managing the committee.
In 2024, the VIG Holding Managing Board informed the
members of the Supervisory Board of material sustainability
and IT security matters. The topics discussed in the re-
porting year included the VIG sustainability programme, the
new legal requirements for the consolidated non-financial
report in accordance with the ESRS, the results of the
double materiality assessment and the preparatory work for
the consolidated transition plan for climate change miti-
gation for the VIG insurance companies. Regular reports on
compliance, IT security and data protection are also pro-
vided. The Supervisory Board, both as a whole and through
the Audit Committee, took the opportunity to address sus-
tainability matters.
The members of the Managing Board and the Supervisory
Board have the necessary specialist knowledge, industry
knowledge and experience, especially in the countries in
Central and Eastern Europe in which VIG operates, in order
to properly fulfil their duties. The relevant experience and
expertise comes from relevant further education and train-
ing courses as well as corresponding professional exper-
ience, which is also ensured by the statutory fit & proper
requirements. The members of the Supervisory Board also
receive regular training and information on current specialist
topics.
VIG has established a comprehensive document governance
system that regulates in detail how binding requirements
30
Group Annual Report 2024
can be issued for the Group companies. This system differ-
entiates between Group policies, Group guidelines and
Group operating procedures. While policies are adopted by
the full Managing Board, guidelines are approved by the re-
sponsible Managing Board member. Operating procedures
are issued by the responsible department manager or a
special representative of VIG Holding on the basis of an
authorisation in a policy or guideline. The governance docu-
ments are communicated to the Group companies within
the scope of application of the document by the respective
document creator. In addition, the documents can be ac-
cessed at any time on the Intranet. The governance docu-
ments require local implementation at Group company level
in order to be effective, and the approval requirements must
correspond to those at VIG Holding level. If, in exceptional
cases, Group requirements cannot be implemented at
Group company level, there is a standardised process for
handling deviations that provides for appropriate commu-
nication between the Group companies in exceptional
cases and the document creator(s) at VIG Holding and
requires the decision of the local Supervisory Board in the
event of disagreement. Once a year, Compliance (incl. AML)
of VIG Holding carries out a centralised query to check that
the Group-wide governance documents have been formally
implemented.
The relevant VIG Holding document creator is responsible
for monitoring implementation. In addition, the implemen-
tation of governance documents forms part of the internal
audit process. This multi-pronged approach to monitoring
ensures effective implementation and compliance in the
Group companies.
DISCLOSURE REQUIREMENT GOV-2 – INFORMATION PROVIDED TO
AND SUSTAINABILITY MATTERS ADDRESSED BY THE
UNDERTAKING’S ADMINISTRATIVE, MANAGEMENT AND
SUPERVISORY BODIES
Individual members of the Managing Board or the Managing
Board as a whole are informed about sustainability matters
by the managers from the relevant departments, the Group
Sustainability Office (GSO) or the Chairman of the Sustain-
ability Committee, depending on their areas of responsibility
The Managing Board as the management body and the
Supervisory Board as the governance body are involved in
such matters in accordance with the statutory requirements
for these bodies, which clearly define the relevant respon-
sibilities. The strategic and economic relevance of the deci-
sion plays an important role in this. Further information on
how the management bodies deal with sustainability mat-
ters can be found in the Corporate Governance Report in
the chapter “Procedures followed by the Managing Board
and by the Supervisory Board and its committees” on
page 286.
The material sustainability-related impacts, risks and oppor-
tunities identified in the double materiality assessment are
reflected in the six spheres of impact of the VIG sustain-
ability programme and are described in detail below for the
reporting year. The actions taken in connection with ESRS
E1 “Climate change” focused on the preparation of a tran-
sition plan for Vienna Insurance Group (with a focus on the
insurance sector in 2024) and were approved by the VIG
Holding Managing Board on 27 January 2025. In addition,
key performance indicators (KPIs) related to ESRS reporting
were presented, for example on the GHG emissions from
underwriting, asset management and internal operations,
including the significance analysis for ESRS E1 “Climate
change”. The VIG Holding Managing Board also dealt with
compliance issues several times in the reporting year. The
final report of an anti-greenwashing working group founded
in 2024 was discussed in the Sustainability Committee. A
Group policy on underwriting for retail customers was dis-
cussed by the Managing Board and, among other things,
contains aspects relating to the topic of anti-greenwashing
(Non-Life Underwriting Guideline). In addition, the VIG Hold-
ing Managing Board regularly addressed IT security-related
topics and was updated on the current status of the Cyber
Defense Center programme in 2024. Training on the Digital
Operational Resilience Act (DORA) was provided to all
members of the Supervisory Board and Managing Board of
VIG in 2024. IT and security risks were also discussed in the
VIG Holding Risk Committee. Matters related to the Group’s
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
31
own workforce are addressed by the VIG Group Policy Re-
muneration and VIG Group Policy Fit & Proper, the Code of
Business Ethics and the diversity strategy.
DISCLOSURE REQUIREMENT GOV-3 – INTEGRATION OF
SUSTAINABILITY-RELATED PERFORMANCE IN INCENTIVE SCHEMES
The incentive schemes for the members of the VIG Holding
Managing Board reflect the Company’s success from the
perspective of the various stakeholders, i.e. the remuner-
ation is intended to reward successful management, parti-
cularly with regard to sustainable earnings on the one hand,
and contributions to employee and common good on the
other. The remuneration package for members of the VIG
Holding Managing Board is divided into fixed and variable
components (see the part of the VIG Holding remuneration
policy relating to members of the Managing Board, Section
2.2.5), while the remuneration for members of the VIG Holding
Supervisory Board does not include a variable component.
The variable remuneration of VIG Holding Managing Board
members is tied to the achievement of predefined annual
performance targets. These include both financial targets
such as income and revenue growth as well as non-financial
targets. For 2024, the strengthening of diversity was de-
fined as a non-financial target for the members of the VIG
Holding Managing Board and weighted at 10% of the
strategic special targets (see also Section 2.2.2 b of the re-
muneration policy). Moreover, a significant part of the variable
remuneration is subject to a sustainability-oriented deferral
rule, where 40% of the bonus earned for the financial year
is deferred on a straight-line basis over three years.
The deferred payments depend on the sustainable devel-
opment of Vienna Insurance Group. When assessing sus-
tainable development, both economic goals and the re-
sponsibility towards the environment, society and em-
ployees are considered, thus embedding long-term sus-
tainability into the remuneration structure.
The Supervisory Board, specifically the Supervisory Board
Committee for Managing Board Matters of VIG Holding, is re-
sponsible for approving and regularly reviewing the terms of
the incentive schemes for VIG Holding Managing Board
members.The remuneration of the members of the
Supervisory Board requires a resolution to be passed at the
Annual General Meeting.
Further details can be found in the VIG Holding Remuneration
Policy 2024 on the VIG website (https://group.vig/corporate-
governance).
DISCLOSURE REQUIREMENT GOV-4 – STATEMENT ON DUE DILIGENCE
The following table provides an overview of the core el-
ements of due diligence in the consolidated non-financial
report. The processes implemented by VIG Holding to iden-
tify impacts, risks and opportunities are taken into account,
including the double materiality assessment, as well as the
actions taken to prevent negative impacts.
List of information provided on the due diligence pr
ocess
Core elements of due diligence Disclosure
Requirement
Paragraphs in the consolidated non-financial report
a) Embedding due diligence in governance,
strategy and business model
ESRS 2 GOV-2
Information provided to and sustainability matters addressed by the undertaking’s administrative,
management and supervisory bodies
ESRS 2 GOV-3 Integration of sustainability-related performance in incentive schemes
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
32
Group Annual Report 2024
Core elements of due diligence Disclosure
Requirement
Paragraphs in the consolidated non-financial report
b) Engaging with affected stakeholders in all
key steps of the due diligence
ESRS 2 GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative, management and
supervisory bodies
ESRS 2 SBM-2 Interests and views of stakeholders
ESRS 2 IRO-1 Description of the process to identify and assess material impacts, risks and opportunities
ESRS 2 MDR-P Policies adopted to manage material sustainability matters:
ESRS E1-4 Targets related to climate change mitigation and adaptation
ESRS S1-4
Taking action on material impacts and approaches to managing material risks and pursuing material opportunities
related to own workforce, and effectiveness of those actions and approaches
ESRS S4-1 Policies related to consumers and end-users
ESRS S4-5 Targets related to managing material impacts, advancing positive impacts, as well as to risks and opportunities
ESRS G1 Additional company-specific disclosures
c) Identifying and assessing adverse
impacts
ESRS 2 IRO-1 Description of the process to identify and assess material impacts, risks and opportunities
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
d) Taking actions to address those adverse
impacts
ESRS E1-1 Transition Plan for climate change mitigation
ESRS E1-2 Policies related to climate change mitigation and adaptation
ESRS E1-3 Actions and resources in relation to climate change policies
ESRS S1-1 Policies related to own workforce of the company
ESRS S1-2 Processes for engaging with employees and employees’ representatives about impacts
ESRS S1-3 Processes to remediate negative impacts and channels for own workers to raise concerns
ESRS S1-4 Taking action on material impacts and approaches to managing material risks and pursuing material opportunities
related to own workforce, and effectiveness of those actions and approaches
ESRS S4-1 Policies related to consumers and end-users
ESRS S4-2 Processes for engaging with consumers and end-users about impacts
ESRS S4-3 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns
ESRS S4-4
Taking action on material impacts on consumers and end-users, and approaches to managing material risks and
pursuing material opportunities in respect of consumers and end-users, and effectiveness of those actions
ESRS G1-1 Corporate culture and business conduct policies
ESRS G1-3 Prevention and detection of corruption and bribery
ESRS G1 MDR-A Actions and resources in relation to material sustainability matters
e) Tracking the effectiveness of these
efforts and communicating
ESRS 2 SBM-2 Interests and views of stakeholders
ESRS E1-4 Targets related to climate change mitigation and adaptation
ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions
ESRS S1-5 Targets related to managing material impacts, advancing positive impacts, as well as to risks and opportunities
ESRS S1-6
Characteristics of the undertaking's employees until ESRS S1-17 - Incidents, complaints and severe human rights
impacts
ESRS S4-4 Taking action on material impacts on consumers and end-users, and approaches to managing material risks and
pursuing material opportunities in respect of consumers and end-users, and effectiveness of those actions
ESRS S4-5 Targets related to managing material impacts, advancing positive impacts, as well as to risks and opportunities
ESRS G1-4 Confirmed incidents of corruption or bribery
DISCLOSURE REQUIREMENT GOV-5 – RISK MANAGEMENT AND
INTERNAL CONTROLS ON CONSOLIDATED SUSTAINABILITY REPORTING
Risk management plays a crucial role at VIG in the iden-
tification of material risks as part of the double materiality
assessment. The aim of the internal control processes re-
lating to the consolidated non-financial report is to ensure
the accuracy, reliability and completeness of the consoli-
dated sustainability disclosures. The area of responsibility
includes data collection and validation through to gover-
nance through the creation of internal guidelines and policies.
General information on the governance system, risk management
system and internal control system
The governance system, along with the organisation of the
risk management system and the risk management pro-
cess, is described in the chapter “Risk strategy and risk
management – Governance system” and in more detail in
the “Risk management processes” section on page 266.
Sustainability risks are risks to which the Company is ex-
posed (outside-in perspective), as well as any risks arising
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
33
from the business activity of VIG that could potentially have
negative impacts on society or the environment (inside-out
perspective). Such risks have always been taken into ac-
count implicitly or even explicitly in some cases within the
scope of risk management.
Ongoing promotion of a highly developed level of risk aware-
ness, coupled with the defined risk governance, ensures
that risk is minimised in all areas as far as possible.
Risks and controls in relation to ESRS reporting
For monitoring operational risks, VIG maintains an ad
equate
internal control system (ICS), which ensures ongoing moni-
toring of risks. The following two risks are specifically con-
sidered in relation to the consolidated non-financial report
as part of the ICS. The risk “Incomplete consolidated non-
financial report” entails the risk that Group-wide reporting
on material sustainability matters is insufficient and therefore
incomplete. To mitigate this risk, a double materiality as-
sessment was carried out in consultation with the relevant
departments within VIG Holding and the local (re)insurance
companies before the consolidated ESRS report was pre-
pared. This ensured that all material topics were identified.
In addition, the principle of dual control was applied in the
preparation of the report. The VIG Holding departments re-
sponsible for the data have implemented appropriate con-
trol mechanisms to mitigate the risk of “Incorrect data in the
consolidated non-financial report”. These controls range
from the implementation of the principle of (at least) dual
control to (semi-)automated data validation procedures. In
addition, data plausibility checks are part of the process of
preparing the consolidated non-financial report.
The ICS is an important component of the governance sys-
tem and is firmly anchored in all VIG insurance and reinsur-
ance companies. It is based on an appropriate process or-
ganisation with clearly defined areas of decision-making
and responsibility. Based on this determination of respon-
sibility, duties and general requirements, guidelines are es-
tablished for the respective companies and/or departments,
which form the framework of the ICS. Within the ICS, all
relevant operational risks and accounting-specific risks are
recorded for each area of the Company and assessed by
the risk owners according to the existing controls using a
severity/frequency analysis. The individual risks, along with
their assessments, are categorised into 12 risk categories,
which are visualised and analysed through an operational
risk heat map.
To ensure a structured approach to the identification of
sustainability risks in the Group, a Group-wide risk cata-
logue (ESG risk inventory) with explicit reference to sustain-
ability risks has additionally been prepared in observance of
the Guide for Managing Sustainability Risks published by
the Austrian Financial Market Authority. The ESG-specific
risk catalogue includes at least those risks that were identified
as material as part of the consolidated double materiality as-
sessment. Furthermore, each of the identified risks that has
an impact on VIG is assigned to a specific VIG risk category.
The VIG (re)insurance companies and the pension funds
and asset management companies regularly review this risk
catalogue for completeness as part of a standardised risk
management process (“risk inventory”) and supplement it if
necessary. All VIG companies mentioned must evaluate the
defined or newly added risks on a qualitative basis with re-
gard to the risk and further development and describe any
mitigation measures. In the reporting year, the relevant sus-
tainability risks were also identified and assessed at the VIG
companies mentioned and at the level of the insurance group.
Reporting to the Managing Board
The VIG Holding Managing Board is regularly updated
on
the risk situation of the Group and of the insurance com-
panies in dialogue with Risk Management.
In addition, sustainability matters are included in the internal
audit plan. All internal audit reports and their results are
made available to the VIG Holding Managing Board.
Strategy
DISCLOSURE REQUIREMENT SBM-1 – STRATEGY, BUSINESS MODEL
AND VALUE CHAIN
VIG is a diversified insurance group. The insurance com-
panies belonging to VIG offer insurance solutions that have
been adapted to the local conditions and the needs of cus-
tomers and policyholders. VIG’s insurance portfolio is diverse
34
Group Annual Report 2024
and comprehensive, covering a broad spectrum of needs
for both individuals and corporates. Additionally, tailored
options like supplementary health insurance, nursing care
insurance, endowment insurance, term life insurance and
investment-oriented products meet specific customer re-
quirements. The VIG companies are responsible for large
capital investments, which is why security and sustainability
are the focus of the investment strategy. Diligence guides
the reinsurance policy: To obtain the optimal risk balance,
some risks are bundled at the Group level and some are
placed on the international reinsurance market.
VIG is the leading insurance group in Central and Eastern
Europe. It consists of the listed VIG Holding and more than
50 insurance companies and pension funds in 30 countries.
Based on the principle of local entrepreneurship, it adopts a
decentralised management approach in order to best meet
the different requirements of the markets in which it operates.
The decentralised organisational structure gives local man-
agement and employees the necessary flexibility to conduct
their business activities. This allows products and sales to
be adjusted optimally to local circumstances.
VIG serves a total of around 33,000,000 customers, includ-
ing private individuals, small and medium enterprises (SMEs)
and large companies. VIG Holding has no operational retail
or SME business. This business is conducted by the local
VIG insurance companies. VIG Holding handles the corpo-
rate business both itself and through the local VIG insurance
companies. These local companies attach great import-
ance to being close to their customers and, to this end, pur-
sue a multi-channel distribution approach. VIG has around
30,000 employees.
The VIG insurance companies invest the premium payments
they receive in such a way that they are able to fully meet
their obligations to their policyholders at all times. Security
is the top priority for investments, which is why good credit
ratings and stable returns are preferred. VIG’s responsible
investment, insurance and reinsurance practices reflect a
focus on environmental aspects and social responsibility.
This includes the exclusion of certain (sub-)sectors/issuers
from its investment universe and its underwriting activities
(see website: https://group.vig/en/sustainability/downloads/).
The exclusion criteria are described in detail in chapter
ESRS E1-2 “Policies related to climate change mitigation
and adaptation”.
According to the requirements of the ESRS, a breakdown
of total income that deviates from the IFRS consolidated fi-
nancial statements is not required. The revenue reported in
segment reporting in accordance with IFRS 8 includes is-
sued business. This revenue is shown in the income state-
ment under “Insurance service revenue – issued business”
and amounted to EUR 12,138,477,000 in 2024.
According to the clarifications of the European Financial Re-
porting Advisory Group (EFRAG), the disclosures required
by ESRS 2 SBM-1 Section 40d relate to direct revenue from
sectors of the undertaking’s own business activities and not
to that of policyholders or investee undertakings, thus ex-
cluding underwriting and asset management in the VIG
value chain. VIG does not generate revenue from activities
associated with fossil fuels, chemicals production, contro-
versial weapons, or tobacco cultivation and production.
Consequently, this datapoint does not apply to VIG.
Key elements of VIG’s general sustainability efforts are set
out in the strategic programme, of which the VIG sustain-
ability programme is an integral part. It is helping to achieve
the Company’s strategic objectives, which encompass the
three parts “Expanding the leading market position in CEE”,
“Creating sustainable value” and “Sustainability objectives
in six spheres of impact”. Details on the programme can be
found in VIG’s Group Annual Report 2024 in the chapter
“Strategic principles” on page 10. Furthermore, the stra-
tegic programme sets out VIG’s goals, which include more
efficiency, more customer proximity and more added value.
In the area of asset management, VIG takes social and en-
vironmental criteria into account. The long-term target is to
reduce the greenhouse gas emissions of the investment
portfolio to net zero by 2050. In the area of underwriting,
the company strives to reduce greenhouse gas emissions
in its corporate portfolio. The aim of this strategic effort is to
reach net zero by 2050. VIG also strives to reduce its emis-
sions in its internal operations and is aiming to be climate
neutral by 2030 and achieve net zero by 2050. Climate neutral
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
35
means that the emissions caused are offset by compen-
satory measures, while the aim of net zero is to reduce
emissions as much as possible and to permanently neu-
tralise unavoidable emissions. Detailed information on the
climate targets and the related actions that aim to support
the achievement of the emission reduction targets in the re-
spective areas can be found in chapters ESRS E1-2 “Poli-
cies related to climate change mitigation and adaptation”
and ESRS E1-3 “Actions and resources in relation to cli-
mate change policies”.
With its promise of “protecting what matters”, VIG wants to
help close existing insurance gaps. The Company also strives
to support policyholders in preparing themselves better for
the insurance impacts of climate change. Details can be
found in chapter E1 IRO-1 “Description of the process to
identify and assess material impacts, risks and opportunities”.
In addition to the application of exclusion criteria and en-
gagement activities, comprehensive services are also of-
fered for corporate customers. The VIG Group company
Risk Consult Sicherheits- & Risiko-Managementberatung
GmbH (Risk Consult) also carries out analyses of natural
hazards specifically for large companies. It uses mathemati-
cal models and local factors to accurately assess potential
threats. In some cases, insurance coverage is contingent
on the implementation of these recommended measures,
ensuring that policyholders are better protected against
natural hazards.
By integrating these tailored services, VIG addresses the
specific sustainability concerns of its diverse customer seg-
ments. In Austria, the insurance industry is working to raise
awareness among retail customers and SMEs of the im-
pacts of climate change. Together with another organisation,
the Austrian insurance sector is financing the “Kuratorium
für Verkehrssicherheit”. Originally founded to raise aware-
ness in the area of traffic and to reduce the number of ac-
cidents, the focus in recent years has increasingly ex-
panded to include the impact of climate change on property
damage.
With regard to products, the process contains a detailed
overview of the range of insurance products offered by
Vienna Insurance Group. The product range includes, among
others, motor third party liability and motor own damage
insurance, accident insurance, liability insurance, fire and
natural hazards insurance as well as travel insurance. For
example, local insurance companies have introduced cov-
erage extensions in individual products that encourage the
adoption of green technologies and support climate risk
mitigation efforts. In order to fulfil financially sustainable cri-
teria, new ideas are analysed before adapting products, in-
cluding questions regarding the insurability of the risk,
market acceptance and reinsurance coverage.
Such products are only introduced if the risk is insurable,
the product is accepted in the market and adequate rein-
surance coverage is available, thus meeting the criteria for
financial sustainability.
In the motor sector, local insurance companies are closely
tied to the development of the vehicle market in the coun-
tries. Motor third party liability insurance is mandatory in all
VIG countries (except Georgia), so there is little scope for
insurance companies to act.
The transition plan for the local insurance companies was
developed in 2024, defining specific actions to gradually re-
duce greenhouse gas emissions and to align product port-
folios with sustainability goals. More detailed information is
provided in ESRS E1-3 “Actions and resources in relation
to climate change policies”.
The impacts of the double materiality assessment are ad-
dressed in the strategy via four components of the sustain-
ability programme:
– Economic component: VIG pursues a profitable business
model that creates sustainable value for the Group’s
stakeholders, thereby ensuring the Group’s continued
economic existence.
– Governance component: Business conduct that is re-
sponsible, transparent and geared towards long-term
success is central to VIG. In its markets, the Group is a
reliable partner to the market and to society.
– Social component: VIG wants to contribute towards a
well-functioning community and a stable, economically
36
Group Annual Report 2024
resilient society in which all members can participate.
VIG offers its customers a comprehensive range of
insurance products and creates an attractive working
environment for its employees.
– Environmental component: VIG considers the environ-
mental impacts of its business activities and helps to re-
duce the negative effects of climate change. The aim is to
ensure that we can continue to operate in a world that is
worth living in for everyone.
Further details of the sustainability programme can be
found in VIG’s Group Annual Report 2024 on page 14.
VIG is committed to the United Nations Global Compact
(UNGC) and its ten universal principles and discloses an
annual Communication on Progress with information on how
it contributes to these principles. The table below shows the
pages of the consolidated non-financial report that address
VIG’s contributions to the Principles of the UNGC.
No.
Principles
Disclosure
Requirement
Paragraphs in the consolidated
non
-
financial report
Human Rights
1
Businesses should support and
respect the protection of
internationally proclaimed
human rights.
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
ESRS 2 IRO-2 Disclosure requirements in ESRS covered by the undertaking’s consolidated non-financial report
ESRS 2 MDR-P Policies adopted to manage material sustainability matters:
ESRS S1.SBM-2 Interests and views of stakeholders
ESRS S1-1 Policies related to own workforce of the company
ESRS S1-17 Incidents, complaints and severe human rights impacts
ESRS S4-1 Policies related to consumers and end-users
2
Businesses should make sure
that they are not complicit in
human rights abuses.
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
ESRS 2 IRO-2 Disclosure requirements in ESRS covered by the undertaking’s consolidated non-financial report
ESRS 2 MDR-P Policies adopted to manage material sustainability matters:
ESRS S1.SBM-2 Interests and views of stakeholders
ESRS S1-1 Policies related to own workforce of the company
ESRS S1-17 Incidents, complaints and severe human rights impacts
ESRS S4-1 Policies related to consumers and end-users
Labour
3
Businesses should uphold the
freedom of association and the
effective recognition of the right
to collective bargaining.
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
ESRS 2 MDR-P Policies adopted to manage material sustainability matters:
ESRS S1.SBM-2 Interests and views of stakeholders
ESRS S1-1 Policies related to own workforce of the company
ESRS S1-8 Collective bargaining coverage and social dialogue
ESRS S1-11 Social protection
4
Businesses should uphold the
elimination of all forms of forced
and compulsory labour.
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
ESRS 2 IRO-2 Disclosure requirements in ESRS covered by the undertaking’s consolidated non-financial report
ESRS S1.SBM-2 Interests and views of stakeholders
5
Businesses should uphold the
effective abolition of child
labour.
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
ESRS 2 IRO-2 Disclosure requirements in ESRS covered by the undertaking’s consolidated non-financial report
ESRS 2 MDR-P Policies adopted to manage material sustainability matters:
ESRS S1.SBM-2 Interests and views of stakeholders
6
Businesses should uphold the
elimination of discrimination in
respect of employment and
occupation.
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
ESRS 2 IRO-2 Disclosure requirements in ESRS covered by the undertaking’s consolidated non-financial report
ESRS 2 MDR-P Policies adopted to manage material sustainability matters:
ESRS S1.SBM-2 Interests and views of stakeholders
ESRS S1-1 Policies related to own workforce of the company
ESRS S1-17 Incidents, complaints and severe human rights impacts
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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No.
Principles
Disclosure
Requirement
Paragraphs in the consolidated non
-
financial report
Environment
7
Businesses should support a
precautionary approach to
environmental challenges.
ESRS 2 GOV-3 Integration of sustainability-related performance in incentive schemes
ESRS 2 GOV-5 Risk management and internal controls over sustainability reporting
ESRS 2 SBM-1 Strategy, business model and value chain
ESRS 2 SBM-2 Interests and views of stakeholders
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
ESRS 2 IRO-2 Disclosure requirements in ESRS covered by the undertaking’s consolidated non-financial report
ESRS 2 MDR-P Policies adopted to manage material sustainability matters:
ESRS 2 MDR-T Tracking effectiveness of policies and actions through targets
- Disclosures pursuant to Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation)
ESRS E1 Climate change
ESRS S4-4
Taking action on material impacts on consumers and end-users, and approaches to managing material risks
and pursuing material opportunities in respect of consumers and end-users, and effectiveness of those actions
ESRS G1 Additional company-specific disclosures
8
Businesses should undertake
initiatives to promote greater
environmental responsibility.
ESRS 2 SBM-2 Interests and views of stakeholders
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
ESRS E1 Climate change
ESRS S4-1 Policies related to consumers and end-users
ESRS G1 Additional company-specific disclosures
9
Businesses should encourage
the development and diffusion
of environmentally friendly
technologies.
ESRS 2 SBM-1 Strategy, business model and value chain
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
ESRS E1.SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
ESRS E1-1 Transition Plan for climate change mitigation
ESRS E1-3 Actions and resources in relation to climate change policies
ESRS S4-4
Taking action on material impacts on consumers and end-users, and approaches to managing material risks
and pursuing material opportunities in respect of consumers and end-users, and effectiveness of those actions
Anti-corruption
10
Businesses should work against
corruption in all its forms,
including extortion and bribery.
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
ESRS 2 IRO-2 Disclosure requirements in ESRS covered by the undertaking’s consolidated non-financial report
ESRS 2 MDR-P Policies adopted to manage material sustainability matters:
ESRS S1.SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
ESRS S1-1 Policies related to own workforce of the company
ESRS G1-1 Corporate culture and business conduct policies
ESRS G1-3 Prevention and detection of corruption and bribery
ESRS G1-4 Confirmed incidents of corruption or bribery
VIG pursues a comprehensive strategy to sustainably
strengthen its markets, customers and employees. It en-
deavours to minimise any possible negative impacts on the
environment in a targeted manner. These impacts are de-
scribed in more detail in chapter E1 “Climate change”.
Qualified and motivated employees play a central role in the
provision of high-quality insurance services for customers.
That is why great importance is attached to continuously
increasing our attractiveness as an employer and de-
veloping our corporate culture. In addition, IT is a key factor
for operational performance and is focused on ensuring the
highest security standards and implementing regulatory
requirements. A comprehensive and effective compliance
management system has been set up in Vienna Insurance
Group to ensure compliance with regulatory requirements.
Further details can be found in the respective topic
chapters.
38
Group Annual Report 2024
VIG actively engages with stakeholders to understand their
concerns and expectations, which helps to refine strategies
and enhance sustainability performance (see also chapter
SBM-2 “Interests and views of stakeholders”).
VIG offers policyholders a wide range of insurance products
and services tailored to the needs of the different policy-
holder segments. The advantages include comprehensive
risk coverage and a conservative investment and reinsur-
ance policy. Other stakeholders also benefit from VIG’s
commitment to sustainability, employee development and
corporate social responsibility. Details on the key financial
performance indicators that form the basis for assessing
the business development are described in the chapter
“Financial performance indicators” starting on page 8.
VIG’s value chain can be divided into the three areas of
underwriting, asset management and internal operations,
and ranges from product development, underwriting and
risk transformation to asset management, claims settle-
ment, marketing and distribution. Areas such as Oppor-
tunity Management, Group Actuarial, Planning & Controlling,
Human Resources, General Secretariat and Legal, Risk
Management, Compliance (incl. AML), VIG IT, Group
Finance & Regulatory Reporting etc. support the overall
product development process.
DISCLOSURE REQUIREMENT SBM-2 – INTERESTS AND VIEWS OF
STAKEHOLDERS
Stakeholder engagement is an important component of VIG’s
approach to corporate responsibility. VIG stakeholders range
from customers, sales and business partners, the
professional public, (potential) employees, and share-
holders/investors to the media, NGOs, authorities and society.
Depending on the topic and the stakeholder group, VIG
offers various channels of communication so that issues can
be raised. The frequency of communication varies depend-
ing on the stakeholder group and communication channel
concerned. Taking different perspectives into account en-
ables VIG to react to challenges and opportunities in an ap-
propriate way and to make well-informed decisions for the
future. VIG uses the following, among others, for its ongoing
dialogue with stakeholders:
– Employee surveys
– Customer satisfaction surveys
– Personal dialogue, workshops and training
– Newsletters
– Memberships
– Press conferences
– Commitment to sustainability initiatives
As VIG is a decentralised group, the local insurance com-
panies have a great deal of decision-making freedom to
best meet the needs of local stakeholders. Engagement
with the following stakeholder groups takes place via
various channels:
Sustainability-related concerns:
Group Sustainability Office, Klaus Mühleder,
Email: GroupSustainabilityOffice@vig.com
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
39
Stakeholder group Dialogue format Contact options
Policyholders Contact by personal advisors, service offices or by video, telephone and email
VIG insurance companies: group.vig/en/vig-
inside/group/markets
VIG Holding: info@vig.com
Contact form for social media channels on the website:
https://group.vig/en/footer/contact-form
Feedback via social media channels
Surveys
(Market) analyses
Professional public Membership in insurance associations and sustainability initiatives
Communication, Collaboration & Cooperation, Karin Kafesie,
karin.kafesie@vig.com
info@vig.com
Industry networking events
Participation in conferences
Sales and business
partners
Personal contact See Policyholders
Workshops and trainings
Newsletter
Distribution portals
Events
(Potential) employees (Virtual) events
Human Resources,
Barbara Hohl,
barbara.hohl@vig.com
Intranet
Regular, structured meetings to discuss objectives and development
Joint development of policies and actions
Surveys
Grievance mechanisms
Contact with students through cooperations with universities etc.
Website, social media (LinkedIn)
Shareholders/(potential)
investors
Continuous capital market information
Investor Relations,
Nina Higatzberger-Schwarz,
investor.relations@vig.com
Information exchange and communication via various channels (website,
social media etc.)
Contacts in the Investor Relations team
Regular telephone conferences when publishing results
Annual general meeting
Participation in investor conferences
NGOs Regular dialogue with NGOs
Group Sustainability Office,
Klaus Mühleder,
GroupSustainabilityOffice@vig.com
Society, media, authorities Press conferences and interviews
Communication, Collaboration & Cooperation, Karin Kafesie,
karin.kafesie@vig.com
info@vig.com
Personal contact
Voluntary work
Participation in initiatives, supporting projects
Implementation of own cultural and social projects
Regulatory dialogue with legislation and supervision
Stakeholder engagement is organised through structured
and continuous processes, as shown in the table. By incor-
porating stakeholder views, VIG Holding ensures that its
sustainability efforts stay relevant and effective. Engage-
ment with policyholders takes place through direct feed-
back channels, surveys and digital platforms. Employees
participate in regular dialogue and surveys, including a
standardised employee engagement survey, and receive in-
ternal communications. Communication with investors takes
place via virtual or in-person meetings, capital market up-
dates, telephone conversations and annual general meetings,
as well as ad hoc surveys, which are carried out by external
consultants. In addition to compliance with regulatory re-
quirements, society and authorities are taken into account
in the VIG markets through public consultations and also
through the organisation of joint initiatives.
As well as expanding VIG’s ESG investment strategy, VIG has
actively started a dialogue with investee companies and
potentially investable companies. This is included under the
term internationally known as engagement service provider
that aggregates the interests of many investors and engages
40
Group Annual Report 2024
with companies on sustainability issues. For example, the
aim of the dialogue with investee companies is to address
ESG issues in a targeted manner, identify potential areas
for improvement and increase ESG data transparency. This
supports companies in their development of an ESG
strategy.
Employee feedback has shaped workplace practices and
corporate culture, while policyholder input has influenced
the development of new sustainable insurance products in
underwriting.
The feedback from investors is incorporated into VIG’s busi-
ness strategy.
This dialogue shows that policyholders place importance to
quality, reliable service and the inclusion of sustainability fea-
tures in insurance products. Employees have access to career
development opportunities, inclusive workplace practices,
and the company’s commitment to social and environmental
responsibility. Investors are particularly concerned with finan-
cial performance, risk management and the incorporation of
environmental, social and governance criteria into business
practices. The task of the supervisory authorities is to monitor
compliance with legal regulations. Stakeholders in general are
paying greater attention to VIG’s contribution to environmental
protection and ethical business conduct.
The dialogue with stakeholders has driven the development
of sustainability-oriented products such as unit-linked life in-
surance that invest in funds with ESG characteristics and
investments in green bonds, as well as the integration of
sustainability criteria into investment and underwriting pro-
cesses. In addition, numerous initiatives for employees, for
example improving diversity and integration in the work-
place, are being implemented. Furthermore, VIG has set
itself the target of achieving net-zero emissions by 2050,
despite the obvious challenges arising from the transfor-
mation itself and the limited direct influence of VIG (see also
SBM-1 “Strategy, business model and value chain”).
The findings from this dialogue are incorporated into various
actions. Among other, this includes the further development
of IT security and data protection aspects. In addition, the
multi-channel distribution approach, which includes direct
sales, brokers, agents, bancassurance partnerships and
digital platforms, has been further optimised to ensure com-
prehensive customer care and accessibility. Further infor-
mation can be found in chapter SBM-1 “Strategy, business
model and value chain”.
In the future, VIG will continue to focus on digital innovation
as part of its sustainability efforts. The aim is to increase the
use of digital platforms in order to improve interaction with
customers and increase its market reach. This includes the
development of new digital tools and services that offer poli-
cyholders added value. Further process simplifications and
automations are also planned to boost productivity and
efficiency and thus enhance customer service. As part of its
approach to engagement, VIG plans to support its sustain-
ability objectives by motivating investee and potential in-
vestee companies, among others, to also commit to
achieving net-zero greenhouse gas emissions by 2050, to
set medium-term reduction targets (2025–2030) and to
develop decarbonisation strategies in line with the Paris
Agreement. Further steps planned include promoting risk
literarcy in VIG markets and, if appropriate, updating VIG’s
sustainability programme in 2025, taking into account the
results of the double materiality assessment. No further
initiatives are currently planned.
VIG Holding ensures that the Managing Board and Super-
visory Board are well informed about stakeholders’ views
regarding sustainability-related impacts by taking a struc-
tured and comprehensive approach, which is described
under GOV-2 “Information provided to and sustainability
matters addressed by the undertaking’s administrative,
management and supervisory bodies”.
DISCLOSURE REQUIREMENT SBM-3 – MATERIAL IMPACTS, RISKS
AND OPPORTUNITIES AND THEIR INTERACTION WITH STRATEGY
AND BUSINESS MODEL
The following overview describes the material impacts,
opportunities and risks in VIG’s value chain arising from the
double materiality assessment in 2024. Details of the results
are described below the table.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
41
ESRS topic ESRS sub-topic IRO Value chain
ESRS E1 Climate change mitigation Impacts Internal operations
Impacts, risks, opportunities Underwriting: Corporate / Retail, Asset Management
Climate change adaptation Impacts, risks, opportunities Underwriting: Corporate / Retail
Risks Asset Management
Energy impacts Internal operations, Asset Management
Opportunities Underwriting: Corporate / Retail
ESRS S1 Working conditions Impacts Internal operations
Equal treatment and opportunities for all Impacts, opportunities Internal operations
Other work-related rights Impacts Internal operations
ESRS S4
Information-related impacts on consumers and/or end-
users
Impacts, risks Underwriting: Retail
Personal safety of consumers and/or end-users Impacts, risks Underwriting: Retail
Social inclusion of consumers and/or end-users Impacts, opportunities Underwriting: Retail
ESRS G1 Corporate culture Impacts, risks
Internal operations, Underwriting (Corporate/Retail),
Asset Management
Corporate culture Risks Underwriting: Corporate
Protection of whistle-blowers Impacts Internal operations
Political influence and lobbying activities Impacts Internal operations
Corruption and bribery Impacts, risks Internal operations
Corruption and bribery Risks Underwriting: Corporate
Corruption and bribery Impacts, risks Asset Management
Company-specific disclosures Impacts Internal operations
Impacts in the value chain
In internal operations, ESRS E1 “Climate change”, ESRS S1
“Own workforce” and ESRS G1 “Business conduct” were
identified as material topics. The positive impacts in the sub-
topics of ESRS E1 “Climate change mitigation”, “Climate
change adaptation” and “Energy” include the contribution
to decarbonisation through the increased use of renewable
energies and energy-saving measures, while negative im-
pacts arise from greenhouse gas emissions from internal
operations. Good working conditions and respect for em-
ployees’ rights, such as freedom of association and social
dialogue, are the basis for respectful and fair cooperation.
Several positive impacts were also identified in ESRS S1
“Own workforce/Working conditions”. This includes im-
proving the satisfaction of VIG employees by offering ap-
propriate remuneration as well as additional individual offers
such as childcare, healthcare and flexible working hours,
which go beyond the statutory provisions. These actions
contribute to increased motivation and well-being and also
improve employees’ life balance. In the sub-topic ESRS S1
“Equal treatment and opportunities for all”, the impact lie in
the promotion of diversity, equality and inclusion as well as
in the support given to the professional and personal de-
velopment of employees through training and development
measures. Under ESRS S1 “Other work-related rights”, the
material impacts identified were the contribution to the
protection of (international) human rights (e.g. child labour
and forced labour) through the Code of Business Ethics
applicable to all VIG employees and the guarantee of data
protection through compliance with the General Data Pro-
tection Regulation (GDPR) and local data protection regu-
lations. Vienna Insurance Group rejects all forms of cor-
ruption and bribery as described in the Code of Business
Ethics. Further details can be found under MDR-P “Policies
adopted to manage material sustainability matters”.
In underwriting for corporate and retail customers, all ESRS
E1 sub-topics—climate change mitigation, climate change
adaptation and energy—were identified as key impacts. In
underwriting for corporate customers, the topic ESRS G1
“Business conduct” is included, while for retail customers
ESRS S4 “Consumers and end-users” is also listed. In the
42
Group Annual Report 2024
area of ESRS E1 “Climate change”, greenhouse gas emis-
sions from insured properties are the primary negative im-
pacts for both retail customers and corporates, while aware-
ness-raising measures among policyholders and climate-
friendly products can make a positive contribution. For
ESRS S4 “Consumers and end-users”, the focus was on
providing clear and understandable information, improving
living conditions by offering private health insurance and en-
suring robust data protection. Further information can be
found in the declarations “Responsible Insurance in Corpo-
rate Business” and “Responsible Investment”. These are
described starting on page 80.
Material impacts in asset management can be found in the
sub-topics ESRS E1 “Climate change mitigation”, “Climate
change adaptation” and “Energy” as well as in ESRS G1
“Corporate culture”. Related to the greenhouse gas emis-
sions, VIG is committed to reducing emissions in its invest-
ment portfolio to net zero by 2050, and thereby enabling
sustainable projects such as green buildings, renewable en-
ergy, and green transportation. The negative impacts arise
from investments in fossil fuels, sectors with a high level of
greenhouse emissions and companies that rely heavily on
non-renewable energies.
Risks in the value chain
The main risks in internal operations are related to
ESRS G1
“Business conduct”. These include the potentially inad-
equate application of ESG disclosure requirements, insuffi-
cient sustainability data for reporting (e.g. greenhouse gas
emissions), and the consequences of potentially inad-
equate IT security measures and privacy breaches, which
can result in reputational damage.
In underwriting, there are risks in relation to ESRS E1 “Cli-
mate change” and the sub-topics “Climate change miti-
gation” and “Climate change adaptation”. These factors re-
sult in a higher claims frequency due to more frequent natu-
ral disasters and changing weather patterns, which can af-
fect both corporate and retail customers. The risks for retail
customers in ESRS S4 “Consumers and end-users” include
the inadequate protection of policyholders’ personal data,
possible reputational damage due to potentially misleading
communication regarding “green” products (greenwashing),
and data protection requirements in internal operations.
Under ESRS G1 “Business conduct”, there is a risk in the cor-
porate business in connection with the insurance of com-
panies, which is integrated into the relevant business pro-
cesses by VIG in accordance with the “Responsible Insurance”
declaration. Further information can be found in ESRS E1-2
“Policies related to climate change mitigation and adaptation”.
In asset management, risks in the area of ESRS E1 “Climate
change” include the risk of default or a decline in the credit
rating of debtors due to the increase in extreme events
(weather, natural disasters). The loss of the value of invest-
ments due to transition risks, such as a change in the long-
term regulatory environment, or reputational damage due to
negative media coverage, are further risks in the area of
ESRS E1 for investments. In ESRS G1 “Business conduct”,
there is a risk of reputational damage due to investments in
non-sustainable companies or companies with negative en-
vironmental practices.
Opportunities in the value chain
In internal operations, opportunities have been identified in
ESRS S1 “Equal treatment and opportunities for all” through
the implementation of a diversity strategy that increases
VIG’s attractiveness as an employer while improving the
quality and inclusiveness of its teams by ensuring equal
opportunities regardless of personal background.
In both the retail and the corporate business, the growing
demand for sustainable and socially acceptable solutions
may offer opportunities in ESRS E1 “Climate change adap-
tation” and “Energy” as interest in insurance coverage for
green technologies, renewable energy projects and low-
carbon solutions increases, which is also in line with EU-
wide efforts to combat climate change. Furthermore, in
ESRS S4 “Consumers and end-users”, demographic change.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
43
and changing health needs are leading to higher demand for
private health insurance products and an expanded range of
services for policyholders. The need for long-term financial
security is also increasing the interest in private pension
products that address policyholders’ evolving priorities.
In asset management, the opportunities in ESRS E1 “Climate
change” lie in the expansion of investments in green bonds,
which enable VIG to finance sustainable projects while
strengthening its commitment to sustainable goals.
As a company-specific topic, social engagement has been
identified as a material opportunity for VIG. This benefits
society and it is described in more detail in chapter ESRS G1
“Business conduct” as social engagement is implemented
within the framework of clearly defined corporate guidelines.
Detailed information on the impacts, risks and opportunities
of the value chain areas is provided in the relevant ESRS
topic chapters (see ESRS E1 “Climate change”, ESRS S1
“Own workforce”, ESRS S4 “Consumers and end-users”,
ESRS G1 “Business conduct”).
In recent years, VIG’s main impacts, risks and opportunities
have already influenced the business model, value chain,
strategy and decision-making processes. VIG’s sustain-
ability programme should be mentioned in particular in this
context. This programme has built on previous findings to
integrate sustainability into the core business strategy. Both
the strategic programme and the principles for responsible
insurance and investment are described in more detail in
chapter ESRS E1-2 “Policies related to climate change
mitigation and adaptation”.
VIG’s business activities have both positive and negative im-
pacts on people and the environment. In internal operations,
underwriting and asset management, these are linked to
climate change. VIG has a positive impact in terms of
improving employee well-being, promoting diversity and
creating a more inclusive work environment. The avoidance
of corruption and bribery is addressed in corresponding
Group-wide regulations such as the Code of Business
Ethics. This also has a positive impact on underwriting and
asset management, such as the insurance of renewable
energy products.
VIG recognises that material impacts — whether envi-
ronmental, social, or governance-related — are deeply
intertwined with its strategy and business model. These im-
pacts are both a result of and a driver for setting priorities.
The impacts on the environment are a crucial driver of VIG’s
focus on environmentally friendly solutions and net-zero
targets.
The time horizons vary for the identified impacts. In the area
of “internal operations”, VIG aims to reduce greenhouse gas
emissions in the short to long term. As working conditions
are already at a high level, it is expected that the additional
actions taken to promote diversity will have positive social
impacts in the short term and will further strengthen em-
ployee satisfaction and retention in the long term.
In underwriting, it can be assumed that the positive impacts
of climate-conscious products will gain in importance in the
medium to long term, as the awareness of climate risks
among policyholders is growing. The negative impacts of
underwriting carbon-intensive industries will be reduced in
the short to long term, as VIG increasingly focuses on lower-
emission policyholders and those with transition strategies.
In the area of asset management, it is expected that the
positive impacts of sustainable investments will already ma-
terialise in the short term. Furthermore, the risks of negative
impacts such as those from investments in high-carbon in-
dustries are expected to be minimised in the short term, as
VIG continues to orient its portfolio towards greener assets.
VIG addresses material impacts directly through its internal
operations and indirectly through business relationships in
its underwriting and investment activities. These are de-
scribed in more detail under “Impacts in the value chain”.
44
Group Annual Report 2024
There are risks and opportunities for VIG in its internal
operations and in underwriting and asset management. Op-
erational risks include insufficient ESG disclosures, a lack of
sustainability data for reporting purposes, and possible IT
security breaches that could result in data losses and harm
to VIG’s reputation. Identifiable climate risks are included in
the best estimate of technical provisions by way of rate-
setting and reserve allocations. In forecasts, these iden-
tifiable climate risks are implicitly taken into account in
the expected value of cash flows and in the solvency capital
requirement applied for the impairment test (see chapter
25.5 “Goodwill” in the notes to the consolidated financial
statements). Asset management may involve companies
that do not actively monitor their environmental impacts.
This can lead to market and reputation risks. In the future,
these risks may lead to a reduction in the fair values of as-
sets and consequently, where applicable, to impairment
losses to be recognised in the separate and consolidated
financial statements. The valuation process for determining
the fair value of financial assets is described in chapter 25.9
“Calculation of fair value”.
Non-sustainable investments may be subject to impair-
ments due to changes in market requirements or regulatory
requirements. Therefore, in the medium and long term, the
focus will be on integrating sustainable strategies more
closely into investment decisions. Climate-related risks,
such as increasing insurance claims from extreme weather
events, will lead to adjustments in underwriting practices
and reserve allocations in connection with changed claims
experience. These risks and opportunities are actively moni-
tored by the actuarial function in order to ensure consist-
ency with sustainability risks and financial resilience. Climate
change as a relevant risk for VIG is a material topic across
the entire value chain.
On the basis of the Company’s own business and capital
planning, the overall regulatory solvency requirement is
projected together with the solvency capital requirements
and the available capital base over the entire planning
period. The extent to which possible deviations from the
planned business development affect VIG is determined on
the basis of appropriate stress tests or scenario analyses.
This is to ensure that even in the event of adverse business
developments VIG will have access to sufficient capital in
the short, medium and long term to cover its own liabilities
and that regulatory solvency capital requirements can be
met at all times.
The knowledge gained from the projections and regulatory
stress tests, together with other internal analysis results,
form the basis for the definition of strategic actions. In the
course of reporting to the VIG Holding Managing Board, the
preliminary results are discussed and the business planning
of VIG is adjusted if necessary. The Managing Board reviews
the strategic direction of VIG based on the results. It includes
the business strategy, which defines the main principles to
achieve the targets, a comprehensive risk strategy, which
determines the appropriate risk management actions for ma-
terial risks, and the capital strategy, which ensures sufficient
own funds with a view to the defined risk-bearing capacity.
VIG has pursued a conservative reinsurance approach for
many years and sees risk transfer through reinsurance in
the non-life area, particularly in the area of natural disasters,
as a key risk mitigation technique to protect against major
and catastrophic events and any balance sheet volatilities.
The reinsurance strategy is characterised by a conservative
retention policy as well as the targeted selection and
accompanying review of reinsurers. VIG insurance com-
panies must follow a Security List defined by the
Reinsurance Security Committee. The reinsurers that are
not on this list require individual approval by the Reinsur-
ance Security Committee. Concentration risk in the area of
reinsurance is also mitigated by means of diversification.
In the first half of 2024, the European Insurance and
Occupational Pensions Authority (EIOPA) conducted a
Europe-wide stress test for the 48 largest insurance groups
in Europe, consisting of a liquidity component and a capital
component. While the capital component concerned insur-
ance groups, the impacts of the liquidity component were
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
45
analysed at the level of selected individual companies in
these groups. The objective of the capital component was
to analyse the resilience of the European insurance sector
to adverse economic developments. The solvency ratio
should be determined on the basis of a given scenario with
market-specific and insurance-specific shocks as of 31 De-
cember 2023. VIG has a very solid solvency ratio in the
given stress scenario. For the liquidity component, the
shocks defined in the capital component should be applied
to balance sheet items in the Group solvency balance sheet
and the impact of those shocks on liquidity over a 90-day
period, starting on 31 December 2023, should be analysed.
The liquidity of the selected companies decreased in this
context, largely due to the assumed cancellation of 20% of
the life insurance portfolio. The liquidity outflow from this
unlikely scenario can be covered by the sale of highly liquid
assets in the VIG companies concerned.
This consolidated non-financial report reflects the first-time
adoption of the CSRD/ESRS, which means that there is no
comparison with the impact, risk and opportunity (IRO)
disclosures from previous years. However, the 2023 VIG
Sustainability Report already covers the material topics
identified in the course of the double materiality assessment.
VIG reports on the requirements set out in the ESRS under
ESRS E1 “Climate change”, ESRS S1 “Own workforce”,
ESRS S4 “Consumers and end-users” and ESRS G1 “Busi-
ness conduct”, as well as company-specific disclosures.
These are described in chapter ESRS G1, as social engage-
ment is implemented within the framework of clearly defined
corporate guidelines.
Impact, risk and opportunity management
DISCLOSURE REQUIREMENT IRO-1 – DESCRIPTION OF THE
PROCESS TO IDENTIFY AND ASSESS MATERIAL IMPACTS, RISKS
AND OPPORTUNITIES
VIG has carried out its double materiality assessment in ac-
cordance with the structure of the three ESRS topical stand-
ards Environment, Social and Governance, which cover the
sub-topics E1 to E5, S1 to S4 and G1. This was done using
a structured approach in accordance with ESRS criteria,
including a data model in the underwriting and investment
portfolio, which analyses the positive and negative impact
of sectors and their respective shares. This classification is
based on widely available sources such as UNEP FI, WWF
and other organisations and served as a basis for further
discussion. Material topics at the Group level are reported
by all fully consolidated subsidiaries according to their clas-
sification in the value chain.
Procedure for the double materiality assessment
In the first step, the content requirements of the t
opical
standards according to the ESRS were analysed and
identified. Since the standards were sector-independent at
the time of implementation, it was examined on the basis of
market standards such as SASB (Sustainability Accounting
Standards Board) and GRI (Global Reporting Initiative)
whether additional sustainability topics are relevant for VIG.
In addition, company-specific topics were taken into ac-
count that were included in the 2023 Sustainability Report
and in VIG’s strategic programme. The value chain was then
defined (see Section SBM-1 “Strategy, business model and
value chain”) and, based on existing documents, the
relevant impacts, risks and opportunities (IROs) were as-
sessed. The double materiality assessment was based on
the insurance companies in the financial consolidation
group, as they have the greatest influence both financially
and in terms of sustainability.
As part of the process, the relevant areas of VIG Holding
were identified and their roles were defined in relation to the
double materiality assessment and the respective value
chain. The assessment was carried out by expert decision-
makers from the local insurance companies and VIG Hold-
ing. The results were then validated by internal and external
experts and stakeholders as well as by all insurance com-
panies of VIG. Following the adoption of a resolution on the
results by the VIG Holding Managing Board, they were
communicated to all managing board members of the VIG
insurance companies for information.
46
Group Annual Report 2024
Identification and assessment of impacts
For VIG, a distinction was made between impacts for cor-
porates and for retail customers (private households and
small and medium enterprises). A distinction was also made
in underwriting between life and/or health insurance and
non-life insurance. This distinction had no impact on the
materiality threshold. In addition, asset management was
considered separately. Furthermore, the impact of internal
operations was assessed. The potential or actual impacts
that VIG might have or already has on governance, the
environment, and people, including the potential impacts on
their human rights, through its own activities were analysed.
Internal stakeholders such as department managers from
specialist departments throughout the value chain and con-
tact persons from subsidiaries such as works councils were
involved in the process. As external stakeholders, the Aus-
trian Insurance Association, representatives of civil society
(Vienna University of Economics and Business Administra-
tion) and NGOs were involved in the process. The consul-
tation included a presentation of the ESRS standards, the
double materiality assessment process and the results
available, with a focus on the main topic relevant to the re-
spective external stakeholders.
Potential and actual impacts were prioritised and evaluated
as follows:
– Scale: how serious the negative impacts are or how bene-
ficial the positive impacts are for people or the environment.
– Scope: the extent of the negative or positive impacts,
for example the scope of the environmental damage or
the number of people adversely affected.
– Irremediable character of the impact (only applies to
negative impacts): whether and to what extent the
negative impacts could be remediated, i.e. whether the
environment or affected people could be restored to
their prior condition.
– Likelihood (applies only to potential impacts): the likely-
hood that a potential impact will occur.
All evaluations were carried out on a scale of 1 to 5, with
the materiality threshold set at 3.
Identification and assessment of risks and opportunities
As part of the risk management process, the interactions
between the activities and the associated environmental,
social and governance aspects were analysed. This en-
abled risks and opportunities to be identified that could
potentially have significant financial impacts on VIG. The
criteria specified by the ESRS were used for the assess-
ment of materiality.
The risks and opportunities were assessed in the same way
as the impacts, without geographical restrictions, for
internal operations as well as for underwriting and asset
management.
The materiality of risks and opportunities was assessed on
the basis of the likelihood of occurrence (from less than
every ten years to more than 100 times a year) and the
potential scale of the financial impacts (from insignificant to
serious) associated with the risk or opportunity. Sustain-
ability risks were identified on the basis of the existing VIG
risk catalogue, which is collected as part of the regular risk
inventory process (see GOV-5 “Risk management and
internal controls on consolidated sustainability reporting”).
Further risks were included on the basis of industry bench-
marks. To assess the potential scale, percentages of VIG’s
own funds were used in accordance with the approach
defined in the Group-wide VIG risk management policy. The
likelihood was also assessed on the basis of the likelihood
of occurrence defined in this policy. The scenario analyses
conducted as part of the Company’s internal risk analysis
were an important input for the assessment of materiality. In
addition, a Group-wide qualitative assessment of sustain-
ability risks was taken into account as part of a secondary
analysis (see also “Procedure for the double materiality
assessment”). If it was not possible to quantify the risks and
opportunities, the materiality of the risks and opportunities
was assessed on a qualitative basis.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
47
These risks, which have been identified in the double ma-
teriality assessment and discussed with Risk Management,
are implicitly or in some cases explicitly taken into account
throughout the Group as part of risk management practices.
To ensure a structured approach to the identification of sus-
tainability risks in Vienna Insurance Group and appropriately
account for both perspectives, a Group-wide risk catalogue
with explicit reference to sustainability risks has additionally
been prepared in observance of the Guide for Managing
Sustainability Risks published by the Austrian Financial
Market Authority. Risks were handled and examined equally
without prioritisation.
Processes, control and management procedures in conn
ection with
the double materiality assessment
The description of the regular reporting to the administrative,
management and supervisory bodies in chapter GOV-2 “In-
formation provided to and sustainability matters addressed
by the undertaking’s administrative, management and super-
visory bodies” is also applicable to the double materiality.
Internal control procedures are carried out by various com-
mittees. Further information can be found in GOV-1 “The
role of the administrative, management and supervisory
bodies”. It is very important to VIG to be fully aware of all
the risks to which it is exposed. The Group-wide risk inven-
tory process supports the Company in its task of compre-
hensively identifying and appropriately assessing these risks.
The results of the double materiality assessment have been
discussed in detail with Risk Management. Detailed infor-
mation is provided in chapter GOV-5 “Risk management
and internal controls on consolidated sustainability report-
ing”. The process also includes the systematic identification
of potential opportunities, which have been evaluated in
close cooperation with the VIG Holding departments. The
identified opportunities were then presented and discussed
in various committees (see GOV-1 “The role of the admin-
istrative, management and supervisory bodies”). This
structured procedure takes all relevant perspectives into ac-
count and effectively integrates opportunities into strategic
planning.
Various external data sources were used to carry out the
double materiality assessment. These include SASB (Sus-
tainability Accounting Standards Board), ISS ESG Rating
(Institutional Shareholder Services), MSCI (Morgan Stanley
Capital International), Sustainalytics, CDP (formerly Carbon
Disclosure Project) and the World Economic Forum Global
Risks Report. Some topics, such as responsible business
conduct and claims processing, were assessed on the
basis of a peer group analysis.
Compared to the materiality assessment from 2021, which
was based on the inside-out approach, a double materiality
assessment was carried out in accordance with both the
inside-out and the outside-in approach for the first time in
the reporting year. It thus enables a more comprehensive
examination of the relevant topics.
DISCLOSURE REQUIREMENT IRO-2 – DISCLOSURE REQUIREMENTS
IN ESRS COVERED BY THE UNDERTAKING’S CONSOLIDATED NON-
FINANCIAL REPORT
The disclosure requirements determined and followed in the
preparation of the consolidated non-financial report on the
basis of the results of the evaluation of the double materiality
assessment, including the page numbers containing the
corresponding information in the consolidated non-financial
report, can be found on page 21. In addition, the following
provides information on datapoints in ESRS 2 and in the
topical standards that derive from other EU legislation, as
well as requirements under the topical ESRS, which must
be taken into account when reporting the disclosure re-
quirements in ESRS 2.
48
Group Annual Report 2024
List of datapoints in general and topical standards that derive from other EU legislation. Non-material or non-reported datapoints are shown
accordingly in the first column.
Disclosure Requirement
and related datapoint
(1) SFDR reference
1)
(2) Pillar 3 reference
2)
(3) Benchmark Regulation
reference
3)
(4) EU Climate Law reference
4)
ESRS 2 GOV-1 Board’s
gender diversity, paragraph
21 (d)
Indicator number 13 of Table #1 of
Annex 1
Commission Delegated
Regulation (EU) 2020/1816
5)
,
Annex II
ESRS 2 GOV-1
Percentage of board
members who are
independent, paragraph 21
(e)
Delegated Regulation (EU)
2020/1816, Annex II
ESRS 2 GOV-4
Statement on due diligence,
paragraph 30
Indicator number 10 Table #3 of
Annex 1
ESRS 2 SBM-1
Involvement in activities
related to fossil fuel
activities, paragraph 40 (d) i
Indicators number 4 Table #1 of
Annex 1
Article 449a Regulation (EU) No
575/2013; Commission
Implementing Regulation (EU)
2022/2453
6)
Table 1:
Qualitative information on
Environmental risk and Table 2:
Qualitative information on Social
risk
Delegated Regulation (EU)
2020/1816, Annex II
ESRS 2 SBM-1
Involvement in activities
related to chemical
production,
paragraph 40 (d) ii
Indicator number 9 Table #2 of
Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
ESRS 2 SBM-1
Involvement in activities
related to controversial
weapons, paragraph 40 (d) iii
Indicator number 14 Table #1 of
Annex 1
Delegated Regulation (EU)
2020/1818
7)
, Article 12(1)
Delegated Regulation (EU)
2020/1816, Annex II
ESRS 2 SBM-1
Involvement in activities
related to cultivation and
production of tobacco,
paragraph 40 (d) iv
Delegated Regulation (EU)
2020/1818, Article 12(1)
Delegated Regulation (EU)
2020/1816, Annex II
ESRS E1-1
Transition plan to reach
climate neutrality by 2050,
paragraph 14
Regulation (EU) 2021/1119,
Article 2(1)
Not applicable:
ESRS E1-1
Undertakings excluded from
Paris-aligned Benchmarks,
paragraph 16 (g)
Article 449a; Regulation (EU) No
575/2013; Commission
Implementing Regulation (EU)
2022/2453 Template 1:
Banking book – Climate change
transition risk: Credit quality of
exposures by sector, emissions
and residual maturity
Delegated Regulation (EU)
2020/1818, Article12.1 (d) to
(g), and Article 12.2
ESRS E1-4
Targets for reducing GHG
emissions, paragraph 34
Indicator number 4 Table #2 of
Annex 1
Article 449a Regulation (EU) No
575/2013; Commission
Implementing Regulation (EU)
2022/2453 Template 3:
Banking book – Climate change
transition risk: alignment
metrics
Delegated Regulation (EU)
2020/1818, Article 6
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
49
Disclosure Requirement
and related datapoint
(1) SFDR reference
1)
(2) Pillar 3 reference
2)
(3) Benchmark Regulation
reference
3)
(4) EU Climate Law reference
4)
ESRS E1-5
Energy consumption from
fossil sources disaggregated
by sources (only high climate
impact sectors),
paragraph 38
Indicator number 5 Table #1 and
Indicator n. 5 Table #2 of Annex 1
ESRS E1-5
Energy consumption and mix,
paragraph 37
Indicator number 5 Table #1 of
Annex 1
Not applicable:
ESRS E1-5
Energy intensity associated
with activities in high climate
impact sectors,
paragraphs 40 to 43
Indicator number 6 Table #1 of
Annex 1
ESRS E1-6
Gross Scope 1, 2, 3 and
Total GHG emissions,
paragraph 44
Indicators number 1 and 2 Table
#1 of Annex 1
Article 449a; Regulation (EU) No
575/2013; Commission
Implementing Regulation (EU)
2022/2453 Template 1:
Banking book – Climate change
transition risk: Credit quality of
exposures by sector, emissions
and residual maturity
Delegated Regulation (EU)
2020/1818, Article 5(1), 6 and
8(1)
ESRS E1-6
Gross GHG emissions
intensity, paragraphs 53 to
55
Indicators number 3 Table #1 of
Annex 1
Article 449a Regulation (EU) No
575/2013; Commission
Implementing Regulation (EU)
2022/2453 Template 3:
Banking book – Climate change
transition risk: alignment
metrics
Delegated Regulation (EU)
2020/1818, Article 8(1)
Not applicable:
ESRS E1-7
GHG removals and carbon
credits, paragraph 56
Regulation (EU) 2021/1119,
Article 2(1)
Not reported, as phase-in:
ESRS E1-9
Exposure of the benchmark
portfolio to climate-related
physical risks, paragraph 66
Delegated Regulation (EU)
2020/1818, Annex II
Delegated Regulation (EU)
2020/1816, Annex II
Not reported, as phase-in:
ESRS E1-9
Disaggregation of monetary
amounts by acute and
chronic physical risk,
paragraph 66 (a)
ESRS E1-9
Location of significant assets
at material physical risk,
paragraph 66 (c).
Article 449a Regulation (EU) No
575/2013; Commission
Implementing Regulation (EU)
2022/2453, paragraphs 46 and
47; Template 5: Banking book –
Climate change physical risk:
Exposures subject to physical
risk.
Not reported, as phase-in:
ESRS E1-9
Breakdown of the carrying
value of its real estate assets
by energy-efficiency classes,
paragraph 67 (c).
Article 449a Regulation (EU) No
575/2013; Commission
Implementing Regulation (EU)
2022/2453, paragraph 34;
Template 2: Banking book –
Climate change transition risk:
Loans collateralised by
immovable property – Energy
efficiency of the collateral
50
Group Annual Report 2024
Disclosure Requirement
and related datapoint
(1) SFDR reference
1)
(2) Pillar 3 reference
2)
(3) Benchmark Regulation
reference
3)
(4) EU Climate Law reference
4)
Not reported, as phase-in:
ESRS E1-9
Degree of exposure of the
portfolio to climate-related
opportunities, paragraph 69
Delegated Regulation (EU)
2020/1818, Annex II
Not material:
ESRS E2-4
Amount of each pollutant
listed in Annex II of the E-
PRTR Regulation (European
Pollutant Release and
Transfer Register) emitted to
air, water and soil,
paragraph 28
Indicator number 8 Table #1 of
Annex 1 Indicator number 2 Table
#2 of Annex 1 Indicator number 1
Table #2 of Annex 1 Indicator
number 3 Table #2 of Annex 1
Not material:
ESRS E3-1
Water and marine resources,
paragraph 9
Indicator number 7 Table #2 of
Annex 1
Not material:
ESRS E3-1
Dedicated policy,
paragraph 13
Indicator number 8 Table 2 of
Annex 1
Not material:
ESRS E3-1
Sustainable oceans and
seas, paragraph 14
Indicator number 12 Table #2 of
Annex 1
Not material:
ESRS E3-4
Total water recycled and
reused, paragraph 28 (c)
Indicator number 6.2 Table #2 of
Annex 1
Not material:
ESRS E3-4
Total water consumption in
m
3
per net revenue on own
operations, paragraph 29
Indicator number 6.1 Table #2 of
Annex 1
Not material:
ESRS 2 – IRO-3 – E4,
paragraph 16 (a) i
Indicator number 7 Table #1 of
Annex 1
Not material:
ESRS 2 – IRO-3 – E4,
paragraph 16 (b)
Indicator number 10 Table #2 of
Annex 1
Not material:
ESRS 2 – IRO-3 – E4,
paragraph 16 (c)
Indicator number 14 Table #2 of
Annex 1
Not material:
ESRS E4-2
Sustainable land / agriculture
practices or policies,
paragraph 24 (b)
Indicator number 11 Table #2 of
Annex 1
Not material:
ESRS E4-2
Sustainable oceans / seas
practices or policies,
paragraph 24 (c)
Indicator number 12 Table #2 of
Annex 1
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
51
Disclosure Requirement
and related datapoint
(1) SFDR reference
1)
(2) Pillar 3 reference
2)
(3) Benchmark Regulation
reference
3)
(4) EU Climate Law reference
4)
Not material:
ESRS E4-2
Policies to address
deforestation,
paragraph 24 (d)
Indicator number 15 Table #2 of
Annex 1
Not material:
ESRS E5-5
Non-recycled waste,
paragraph 37 (d)
Indicator number 13 Table #2 of
Annex 1
Not material:
ESRS E5-5
Hazardous waste and
radioactive waste,
paragraph 39
Indicator number 9 Table #1 of
Annex 1
ESRS 2 SBM3 – S1
Risk of incidents of forced
labour, paragraph 14 (f)
Indicator number 13 Table #3 of
Annex I
ESRS 2 SBM3 – S1
Risk of incidents of child
labour, paragraph 14 (g)
Indicator number 12 Table #3 of
Annex I
ESRS S1-1
Human rights policy
commitments, paragraph 20
Indicator number 9 Table #3 and
Indicator number 11 Table #1 of
Annex I
ESRS S1-1
Due diligence policies on
issues addressed by the
fundamental International
Labour Organisation
Conventions 1 to 8,
paragraph 21
Delegated Regulation (EU)
2020/1816, Annex II
ESRS S1-1
processes and measures for
preventing trafficking in
human beings, paragraph 22
Indicator number 11 Table #3 of
Annex I
ESRS S1-1
workplace accident
prevention policy or
management system,
paragraph 23
Indicator number 1 Table #3 of
Annex I
ESRS S1-3
grievance/complaints
handling mechanisms,
paragraph 32 (c)
Indicator number 5 Table #3 of
Annex I
ESRS S1-14
Number of fatalities and
number and rate of work-
related accidents,
paragraph 88 (b) and (c)
Indicator number 2 Table #3 of
Annex I
Delegated Regulation (EU)
2020/1816, Annex II
ESRS S1-14
Number of days lost to
injuries, accidents, fatalities
or illness, paragraph 88 (e)
Indicator number 3 Table #3 of
Annex I
ESRS S1-16
Unadjusted gender pay gap,
paragraph 97 (a)
Indicator number 12 Table #1 of
Annex I
Delegated Regulation (EU)
2020/1816, Annex II
52
Group Annual Report 2024
Disclosure Requirement
and related datapoint
(1) SFDR reference
1)
(2) Pillar 3 reference
2)
(3) Benchmark Regulation
reference
3)
(4) EU Climate Law reference
4)
ESRS S1-16
Excessive CEO pay ratio,
paragraph 97 (b)
Indicator number 8 Table #3 of
Annex I
ESRS S1-17
Incidents of discrimination,
paragraph 103 (a)
Indicator number 7 Table #3 of
Annex I
ESRS S1-17
Non-respect of UNGPs on
Business and Human Rights
and OECD, paragraph 104
(a)
Indicator number 10 Table #1 and
Indicator n. 14 Table #3 of Annex I
Delegated Regulation (EU)
2020/1816, Annex II
Delegated Regulation (EU)
2020/1818, Art 12 (1)
Not material:
ESRS 2 SBM3 – S2
Significant risk of child
labour or forced labour in the
value chain, paragraph 11 (b)
Indicators number 12 and n. 13
Table #3 of Annex I
Not material:
ESRS S2-1
Human rights policy
commitments, paragraph 17
Indicator number 9 Table #3 and
Indicator n. 11 Table #1 of Annex
1
Not material:
ESRS S2-1
Policies related to value
chain workers, paragraph 18
Indicator number 11 and n. 4
Table #3 of Annex 1
Not material:
ESRS S2-1
Non-respect of UNGPs on
Business and Human Rights
principles and OECD
guidelines, paragraph 19
Indicator number 10 Table #1 of
Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
Delegated Regulation (EU)
2020/1818, Art 12 (1)
Not material:
ESRS S2-1
Due diligence policies on
issues addressed by the
fundamental International
Labour Organisation
Conventions 1 to 8,
paragraph 19
Delegated Regulation (EU)
2020/1816, Annex II
Not material:
ESRS S2-4
Human rights issues and
incidents connected to its
upstream and downstream
value chain, paragraph 36
Indicator number 14 Table #3 of
Annex 1
Not material:
ESRS S3-1
Human rights policy
commitments, paragraph 16
Indicator number 9 Table #3 and
Indicator n. 11 Table #1 of Annex
1
Not material:
ESRS S3-1
non-respect of UNGPs on
Business and Human Rights,
ILO principles or OECD
guidelines, paragraph 17
Indicator number 10 Table #1 of
Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
Delegated Regulation (EU)
2020/1818, Art 12 (1)
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
53
Disclosure Requirement
and related datapoint
(1) SFDR reference
1)
(2) Pillar 3 reference
2)
(3) Benchmark Regulation
reference
3)
(4) EU Climate Law reference
4)
Not material:
ESRS S3-4
Human rights issues and
incidents, paragraph 36
Indicator number 14 Table #3 of
Annex 1
ESRS S4-1
Policies related to consumers
and end-users, paragraph 16
Indicator number 9 Table #3 and
Indicator n. 11 Table #1 of Annex
1
ESRS S4-1
Non-respect of UNGPs on
Business and Human Rights
principles and OECD
guidelines, paragraph 17
Indicator number 10 Table #1 of
Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
Delegated Regulation (EU)
2020/1818, Art 12 (1)
ESRS S4-4
Human rights issues and
incidents, paragraph 35
Indicator number 14 Table #3 of
Annex 1
ESRS G1-1
United Nations Convention
against Corruption,
paragraph 10 (b)
Indicator number 15 Table #3 of
Annex 1
ESRS G1-1
Protection of whistle-
blowers, paragraph 10 (d)
Indicator number 6 Table #3 of
Annex 1
ESRS G1-4
Fines for violation of anti-
corruption and anti-bribery
laws, paragraph 24 (a)
Indicator number 17 Table #3 of
Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
ESRS G1-4
Standards of anti- corruption
and anti- bribery, paragraph
24 (b)
Indicator number 16 Table #3 of
Annex 1
1)
Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financia services sector (OJ L 317, 9.12.2019, p. 1).
2)
Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No
648/2012 (Capital Requirements Regulation) (OJ L 176, 27.6.2013, p. 1).
3)
Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of
investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1).
4)
Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU)
2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1).
5)
Commission Delegated Regulation (EU) 2020/1816 of 1
7 July 2020 supplementing Regulation (EU) 2016/1011 of the European Parliament and of the Council with regard to the explanation in the benchmark
statement of how environmental, social and governance factors are taken into account in each benchmark that is made available and published (OJ L 406, 3.12.2020, p. 1).
6)
Commission Implementing Regulation (EU) 2022/2453 of 30 November 2022 amending the implementing technical standards laid down in Implementing Regulation (EU) 2021/637 with regard to the
disclosure of environmental, social and governance risks (OJ L 324, 19.12.2022, p. 1).
7)
Commission Delegated Regulation (EU) 2020/1818 of 17 July 2020 supplementing Regulation (EU) 2016/1011 of the European Parliament and of the Council with regard to minimum standards for EU Climate
Transition Benchmarks and EU Paris-aligned Benchmarks (OJ L 406, 3.12.2020, p. 17).
54
Group Annual Report 2024
Disclosure and Application Requirements in topical ESRS that are applicable jointly with ESRS 2 General Disclosures:
ESRS 2 Disclosure Requirement Paragraphs in the consolidated non-financial report
GOV-1 The role of the administrative, management and
supervisory bodies
ESRS G1.GOV-1 The role of the administrative, management and supervisory bodies
(Article 5)
GOV-3 Integration of sustainability-related performance
in incentive schemes
ESRS E1.GOV-3 Integration of sustainability-related performance in incentive schemes
(Article 13)
SBM-2 Interests and views of stakeholders ESRS S1.SBM-2 Interests and views of stakeholders (Article 12)
ESRS S4 (Article 8) in ESRS 2
SBM-2
Interests and views of stakeholders (Article 12)
SBM-3 Material impacts, risks and opportunities and
their interaction with strategy and business
model
ESRS E1.SBM-3 Material impacts, risks and opportunities and their interaction with strategy
and business model (Articles 18 and 19)
ESRS S1.SBM-3
Material impacts, risks and opportunities and their interaction with strategy
and business model (Articles 13 to 19)
ESRS S4.SBM-3 Material impacts, risks and opportunities and their interaction with strategy
and business model (Articles 9 to 12)
IRO-1 Description of the processes to identify and
assess material impacts, risks and
opportunities
ESRS E1.IRO-1 Description of the processes to identify and assess material climate-related
impacts, risks and opportunities (Articles 20 and 21)
ESRS G1.IRO-1 Description of the processes to identify and assess material impacts, risks
and opportunities (Article 6)
In accordance with ESRS 1 Section 3.2 on the identification
of material information, VIG has applied a structured evalu-
ation process, which is described in chapter IRO-1 “De-
scription of the process to identify and assess material im-
pacts, risks and opportunities”. The combination of these
inputs ensures that the disclosed information is relevant,
comprehensive, and aligned with current priorities and
future considerations.
The double materiality assessment is an ongoing process,
with a scheduled revision every three years or sooner if sig-
nificant market or regulatory changes occur. This is evalu-
ated annually. In addition, VIG monitors emerging issues
such as developments in regulatory matters so that they
can be taken into account accordingly.
MINIMUM DISCLOSURE REQUIREMENT – MDR-P – POLICIES
ADOPTED TO MANAGE MATERIAL SUSTAINABILITY MATTERS
The following chapter provides an overview of the Group-
level and Holding-level policies or guidelines and other re-
quirements of VIG that are relevant for more than one ma-
terial topic. In addition, reference is made to this chapter in
the respective topic chapters, if applicable. Requirements
that are only relevant for one topic chapter are only de-
scribed in the respective chapter.
VIG’s mission statement, which provides employees with
guidance in their day-to-day activities, is of overarching rele-
vance across all topics. The vision of VIG is:
– We want to be the first choice for our customers. Our
stakeholders see us as a stable and reliable partner. This
enables us to consolidate our position as the leading
insurance group in Central and Eastern Europe.
– We pursue a customer-oriented and long term-oriented
business strategy in our markets.
– We invest sustainably and make a valuable contribution
to the positive development of the insurance markets in
which we operate.
– We offer our customers security and reliability.
The strategic objectives and management principles are
described in the chapter “Strategic principles” starting on
page 10 of VIG’s Group Annual Report 2024.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
55
VIG strategic programme and sustainability programme
VIG’s strategic programme and sustainability programme are
related to ESRS E1 “Climate change”, ESRS S1 “Own
workforce”, ESRS S4 “Consumers and end-users“, ESRS G1
“Business conduct” and “Additional entity-specific disclo-
sures”. With the involvement of members of the managing
boards of the Group companies, the management of VIG
Holding has developed the VIG 25 strategic programme for
the period 2021 to the end of 2025. This will be updated in
2025. The VIG sustainability programme defines the six
spheres of impact: asset management, underwriting, inter-
nal operations, employees, customers and society. Based
on insurance industry trends, VIG sets targets and formu-
lates actions that focus on financial stability and profitability,
customer proximity, sustainability and market growth. With-
in the scope of the VIG 25 strategic programme, VIG has
also developed a sustainability programme (see page 14 of
VIG’s Group Annual Report 2024), which aims to further
strengthen the importance of sustainability as an integral
element and foundation of the Group’s business model and
thus ensure the Group’s future success. One of the ways in
which sustainability has been integrated into the business
processes is through the “Responsible Insurance” and
“Responsible Investment” declarations, which are de-
scribed in more detail in ESRS E1-2 “Policies related to
climate change mitigation and adaptation”. The scope of
the strategic and sustainability programmes includes all VIG
(re)insurance companies and non-insurance companies.
Specific policies and guidelines are implemented locally
through the sustainability programme with support from the
Group Sustainability Office in collaboration with the sub-
sidiaries. VIG’s approach, including the “Responsible In-
vestment” dec-laration and “Responsible Insurance” decla-
ration, is publicly available on VIG’s website group.vig/en.
For more information, see “Disclosures stemming from
other legislation or generally accepted pronouncements on
the consolidated non-financial report”.
VIG Holding is currently working to support the insurance
companies in implementing the requirements of the sustain-
ability programme in the best possible way, particularly with
regard to decarbonisation options. To this end, discussions
were held with the insurance companies under the leader-
ship of the Group Sustainability Office in the reporting year.
The focus was primarily on presenting the steps required for
the local implementation of the sustainability programme
and the development of emission reduction actions.
United Nations Global Compact
The United Nations Global Compact (UNGC) is referenc
ed
in connection with ESRS E1 “Climate change”, ESRS S1
“Own workforce”, ESRS S4 “Consumers and end-users”
and ESRS G1 “Business conduct”. VIG joined the UNGC,
the world’s largest initiative for corporate responsibility and
sustainability, in 2021. VIG is therefore committed to the ten
universal principles of the UN Global Compact on Environ-
ment, Labour, Human Rights and Anti-Corruption. Once a
year, VIG publishes its Communication on Progress in the
corresponding UN Global Compact portal. By doing so, VIG
declares its continued support of the network and discloses
its sustainability efforts (see also SBM-1 “Strategy, business
model and value chain”).
Code of Business Ethics
The
Code of Business Ethics
is referenced in connection
with ESRS E1 “Climate change”, ESRS S1 “Own work-
force”, ESRS S4 “Consumers and end-users”, ESRS G1
“Business conduct” and “Additional entity-specific disclo-
sures”. It is a Group guideline based on the VIG mission
statement and the values of diversity, customer proximity
and responsibility. It serves as a uniform code of conduct in
the Group by setting binding minimum standards. It is a
general guideline for day-to-day business and for relation-
ships with customers, business partners, shareholders and
the general public. The code contains the following 15 prin-
ciples: 1) Compliance with legal, regulatory and internal pro-
visions, 2) Protection of human rights, 3) Diversity and
inclusion, 4) Environmental protection, 5) Healthy and safe
workplace, 6) Protection of company property, 7) Pre-
vention of conflicts of interest, 8) Prevention of corruption
56
Group Annual Report 2024
and bribery, 9) Data protection, 10) Management of con-
fidential information, 11) Fair competition, 12) Prevention of
market abuse, 13) Prevention of money laundering, fi-
nancing of terrorism and breaching of international sanc-
tions, 14) Fair and professional treatment of customers and
15) Reliable communication. Additional, Group-wide regu-
lations may apply to individual areas of the code, such as
procurement, international sanctions, and money laun-
dering prevention.
The code was approved by the VIG Holding Managing
Board and must be implemented at the level of the Group
companies on the basis of a Managing Board resolution. It
applies to all VIG (re)insurance companies, including VIG
Holding, as well as to all asset management companies and
pension funds, whether or not they are based within the
European Union or outside of it, provided that VIG Holding
(directly or indirectly) holds more than 50% of the shares.
These Group companies are themselves responsible for the
appropriate and effective implementation of the code and
proper communication of the code to all employees. This
also includes training sessions given in the Group com-
panies. Each one of the companies mentioned must deter-
mine, on the basis of a risk-oriented approach, which of
their subsidiaries fall within the scope of the Code of
Business Ethics and ensure that it is implemented ac-
cordingly. It is therefore also implemented in some non-
insurance companies. The code is reviewed annually to
ensure that it is up to date and, if necessary, adapted by
Compliance (incl. AML) of VIG Holding. Local compliance
officers or Compliance (incl. AML) of VIG Holding offer
guidance on these matters and on reporting channels com-
pliant with local regulations that can be used to report
perceived misconduct (see chapter G1-1 “Business
conduct policies and corporate culture”). The code of
conduct applies to all employees, regardless of their
position in the Company. Furthermore, it calls for customers
and business partners to also behave in accordance with
the principles of the code of conduct. The Code of Business
Ethics is available online on the Group-wide Intranet and
publicly at https://group.vig/en/cobe.
Whistleblowing
Whistleblowing in Vienna Insurance Group is material in the
context of ESRS E1 “Climate change”, ESRS S1 “Own
workforce”, ESRS S4 “Consumers and end-users”, ESRS
G1 “Business conduct” and “Additional entity-specific dis-
closures”. In VIG Group, requirements for dealing with whis-
tleblowers are often implemented in local governance docu-
ments and in accordance with the local legal framework,
including in all insurance companies, with some exceptions
in Albania, Georgia, Kosovo, Moldova, North Macedonia
and Türkiye. Appropriate actions have also been taken in
individual non-insurance companies. In addition to a guide-
line on this subject, a VIG Whistleblower Portal (whistleblower-
portal.vig) has been set up at VIG Holding as an internal re-
porting channel by which perceived violations of the regu-
lations mentioned in the Austrian Whistleblower Protection
Act (Hinweisgeber:innenschutzgesetz) can be reported at
any time — including anonymously. Perceived violations in
other legal areas can be reported to a dedicated email
address (whistleblowing@vig.com) and to Compliance (incl.
AML) of VIG Holding by post. For more information on
handling tips and possible compliance violations, see the
ESRS G1 “Business conduct” section below.
Risk management
The VIG Group Policy Risk Management is primarily mat
erial
for ESRS E1 “Climate change”, ESRS S4 “Consumers and
end-users” and ESRS G1 “Business conduct”. It defines ten
risk categories which cover all possible sources of risk,
including sources connected to sustainability risks/ESG
factors (environment, social and governance). The overall
responsibility for the risks assumed by VIG lies with the VIG
Holding Managing Board. The responsibility for the risks
assumed by the local companies lies with the local man-
aging boards. Within every company, the risk owners for
each risk category or sub-risk category are defined during
the risk inventory process in order to ensure clear re-
sponsibilities. The policy is an essential component of the
(risk) management framework within Vienna Insurance
Group. The scope of the policy covers all VIG (re)insurance
companies, including VIG Holding, as well as all asset
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
57
management companies and pension funds. The
document is based on Articles 44 and 246 of the Solvency
II Directive and Article 259 of the Delegated Regulation on
Solvency II.
Data protection
VIG’s and VIG Holding’s Data Protection guidelines are
referenced in connection with ESRS S1 “Own workforce”,
ESRS S4 “Consumers and end-users” and ESRS G1
“Business conduct”. In both the Company’s own interest
and in the interest of all policyholders, business partners
and employees, great importance is given to the protection
of confidential information (business and trade secrets) as
well as compliance with statutory data protection regu-
lations (particularly the EU General Data Protection Regu-
lation/GDPR). The Data Protection Officer at VIG Holding is
responsible for the establishment of a data protection
management system in the Company and for monitoring
compliance with the GDPR and other data protection-
relevant regulations. She reports directly to the VIG
Managing Board, both on an annual and ad hoc basis.
From an organisational point of view, the VIG Holding Data
Protection Officer is integrated into Compliance (incl. AML)
of VIG Holding which supports her in the fulfilment of her
tasks. The Data protection management department in the
operational organisation provides support, particularly on
awareness measures and data protection issues that are
related to the operational organisation. The VIG Holding
Data Protection guideline is aimed at all employees of VIG
Holding, including those in the branch offices. The regu-
lations and requirements apply to the office workplace, the
home workplace and mobile working. A data protection
management system has also been set up at the Group
level. It is continuously developed, controlled and monitored
by the VIG Group Data Protection Coordinator, who is also
the Data Protection Officer of VIG Holding. The core
elements are a Group-wide data protection guideline, a re-
porting process defined in detail and ongoing training
measures for local data protection responsible persons on
data protection topics. In addition, the VIG Group Data Pro-
tection Coordinator conducts ad hoc monitoring activities
when required to ensure a consistent, Group-wide mini-
mum standard in data protection matters.
IT Security
The VIG Group Guideline IT Security is relevant to ESRS S1
“Own workforce”, ESRS S4 “Consumers and end-users”,
and ESRS G1 “Business conduct”. It applies to all VIG in-
surance companies (including reinsurance) and to all VIG
non-insurance companies providing any IT support for in-
surance companies (i.e. IT service providers), provided that
they have their own IT organisation and do not use an IT
environment that is shared with affiliated insurance com-
panies in which VIG directly or indirectly holds the majority
of shares. The companies are responsible for ensuring that
their subsidiaries and branch offices comply with the pro-
visions of this guideline. This guideline is based on ISO/IEC
Standard 27001. It defines the basic obligatory measures
for establishing effective controls for electronic information
and data, information systems and computer applications,
as well as computer, telecommunications, and network fa-
cilities and equipment. It also defines the basic obligatory
measures for preventing the loss of confidentiality, integrity
and availability. All employees and, where relevant, contrac-
tors receive IT security training suitable for their job functions.
Procurement principles
The VIG Group Guideline Procurement Principles and t
he
corresponding Holding guideline are relevant to ESRS S1
“Own workforce” and ESRS G1 “Business conduct”. They
relate to any kind of engagement of service providers and
suppliers. As laid down in the Code of Business Ethics, VIG
complies with all legal requirements that are applicable to
its business activities. This includes respecting the funda-
mental principles of human rights and environmental pro-
tection. Therefore, all the Group’s insurance companies,
pension funds and asset management companies—and, if
defined on the basis of a risk-oriented approach, also non-
insurance companies—must take suitable due diligence
measures with regard to (potential) service providers or sup-
pliers. Certain minimum standards are defined for these meas-
ures. The due diligence measures must ensure compliance
58
Group Annual Report 2024
with legal obligations (such as screening in connection with
international sanctions) as well as the consideration of hu-
man rights, labour law, health and safety, environment and
integrity/ethics by the suppliers.
Asset management
The VIG Group Policy Asset Management is relevant to
ESRS E1 “Climate change” and ESRS G1 “Business
conduct”. This policy applies to the management of all
types of assets and transactions, including but not limited
to securities (equities, bonds and investment funds), loans
and advances, term deposits, financial derivatives, real
estate and participations. In addition, this Group-wide
policy integrates sustainability matters and requires com-
pliance with VIG’s environmental, social and governance
(ESG) requirements, as well as compliance with regulatory
requirements. It applies to all of VIG’s operational insurance
and reinsurance companies, including VIG Holding. The
Group-wide policy is also in line with VIG’s “Responsible
Investment” ESG strategy, which prescribes the integration
of environmental, social, governance and human rights
aspects into investment processes. The perspectives of key
stakeholders are given careful consideration in this context.
The aim is to reconcile economic objectives with social and
environmental responsibility and to reflect the Group’s
commitment to sustainable investments. It is publicly
available and can be found on the following website:
https://group.vig/en/sustainability/downloads/.
Professional training and development
The VIG Holding professional training and developmen
t
guideline according to IDD is relevant to ESRS S1 “Own
workforce”, ESRS S4 “Consumers and end-users” and
ESRS G1 “Business conduct”. The European Insurance
Distribution Directive (IDD) requires insurance and reinsur-
ance companies in the EU to ensure that all persons in-
volved in insurance and reinsurance distribution, either
directly or in a managerial capacity, have the knowledge and
skills required for the proper performance of the tasks
assigned to them with regard to the activities carried out
and the products sold. The objectives of the IDD include:
protection of policyholders, improvement of consumer pro-
tection, and minimum European harmonisation in the dis-
tribution of insurance products. In addition to regulations on
products and advice, it contains binding specifications for
all insurance and reinsurance companies with regard to the
training and development of all employees directly involved
in sales and in a managerial role. This is to ensure that
policyholders receive the best possible advice. At VIG
Holding, this is ensured by the professional training and de-
velopment guideline in accordance with the IDD, among
other measures.
Remuneration
The VIG Group Policy Remuneration is referenced in t
he
context of ESRS S1 “Own workforce” and indirectly also
has an influence on G1 “Business conduct”. Working hours,
required qualifications, as well as the duties and respon-
sibilities of the position in question are all taken into account
when setting remuneration levels. It is ensured that the sala-
ry does not fall below the minimum wage stipulated under
national law or existing collective bargaining agreements. If
a variable remuneration component has been agreed, the
targets that determine the amount of variable remuneration
are transparent and agreed once per year. All insurance and
reinsurance companies of VIG in the EU and Liechtenstein
are obliged to apply the policy in full. Other insurance and
reinsurance companies not domiciled in the EU or Liechten-
stein, as well as non-insurance companies consolidated
fully or at equity, in accordance with the Group-wide “HR
Non-Insurance” guideline, are obliged to comply with na-
tional law and the basic standards in accordance with spe-
cific requirements as a minimum requirement. The remu-
neration policy must be reviewed and updated annually by
VIG Human Resources if adjustments are necessary on
account of changes to the regulatory environment or for
internal reasons. VIG takes all relevant statutory require-
ments into account when setting out and applying the policy.
Fit & Proper
The VIG Group Policy Fit and Proper policy is releva
nt to
ESRS S1 “Own workforce”, ESRS S4 “Consumers and end-
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
59
users” and G1 “Business conduct”. The qualification of
persons in key functions is an important factor for the suc-
cess of insurance and reinsurance companies. It defines on
the one hand whether a person is fit, i.e. whether they have
the necessary professional skills and knowledge, and on the
other hand whether they meet the standards for personal
reliability and integrity. All insurance and reinsurance com-
panies of VIG in the EU and Liechtenstein are obliged to
apply this policy in full. Other insurance and reinsurance
companies not domiciled in the EU or Liechtenstein, as well
as non-insurance companies consolidated fully or at equity,
as described in the Group-wide “HR Non-Insurance” policy,
are obliged to comply with national law and generally de-
fined standards on topics such as discrimination, training
and conflicts of interest as a minimum requirement. The VIG
Group Policy Fit & Proper must be reviewed and updated
annually if adjustments are necessary on account of
changes in the regulatory environment or for internal reasons.
VIG Human Resources is responsible for the adequacy of
this document.
Compliance management
The VIG Group Guideline Compliance Management System
is mainly related to ESRS G1 “Business conduct”, but it also
affects all other material areas. The guideline provides mini-
mum requirements and standards for the implementation of
a compliance management system as an integral part of an
effective Group-wide governance system and fulfils the
requirements for a compliance policy according to Art 270
of Commission Delegated Regulation (EU) 2015/35, Art. 10
of Commission Directive 2010/43/EU and Art. 61 of Com-
mission Delegated Regulation (EU) 2031/2013. It describes
in detail how the compliance management system is set up
at the local and Group levels, which tasks and respon-
sibilities are fulfilled by the local compliance officers and
persons responsible for compliance, and how the inter-
action between the Group and the local levels in the field of
compliance is organised. Further details regarding the
Group’s compliance management system are governed by
an additional Group-wide compliance management imple-
mentation guideline.
The VIG Group Guideline Compliance Management System
policy also covers the authorisation to draft Group-wide
guidelines on compliance-related topics in certain fields. It
applies to all VIG (re)insurance companies, including VIG
Holding, as well as to all asset management companies and
pension funds, provided that VIG Holding (directly or indi-
rectly) holds more than 50% of the shares.
All Group-wide requirements are formally approved by the
full VIG Holding Managing Board (policies) or the respon-
sible Managing Board members (guidelines) or heads of de-
partment or specific officers (work instructions) in accord-
ance with the VIG Group document governance system
and must be reviewed annually to ensure that they are up
to date. Unless otherwise specified, the policies and guide-
lines are distributed to all persons or companies in the
scope of application via VIG’s Group-wide Intranet and pub-
lished on the Group-wide Intranet. This ensures that the in-
formation is accessible to and usable by those who must
comply with the regulations.
In ESRS E1 “Climate change”, the internal risk analyses of the
Group, including those relating to the natural disaster process,
are relevant in addition to the above-mentioned requirements.
ESRS S1 “Own workforce” refers to VIG’s diversity strategy in
addition to the above-mentioned Group-wide requirements.
ESRS S4 “Consumers and end-users” also references the
VIG Holding complaint management guideline.
ESRS G1 “Business conduct” references the Group-wide
guideline on the prevention of money laundering and terrorist
financing.
MINIMUM DISCLOSURE REQUIREMENT – ACTIONS MDR-A –
ACTIONS AND RESOURCES IN RELATION TO MATERIAL
SUSTAINABILITY MATTERS
Above all, the priorities defined in VIG’s strategic pro-
gramme and sustainability programme apply, which are
described on page 12 of VIG’s Group Annual Report 2024.
60
Group Annual Report 2024
In order to specify the strategic focus areas, actions to
achieve climate neutrality by 2030 in internal operations
have been defined; they are described in chapters ESRS
E1-2 “Policies related to climate change mitigation and
adaptation” and E1-3 “Actions and resources in relation to
climate change policies”.
In order to prevent any negative impacts arising from the
violation of data protection regulations, a data protection
management system has been established both at the level
of VIG Holding and at the level of the local companies. The
Data Protection Officer at VIG Holding is responsible for the
establishment of a data protection management system in
VIG Holding and for monitoring compliance with the GDPR
and other data protection-relevant regulations. She reports
directly to the VIG Holding Managing Board, both on an
annual and ad hoc basis. From an organisational point of
view, the VIG Holding Data Protection Officer is integrated
into Compliance (incl. AML) of VIG Holding which supports
her in the fulfilment of the tasks. A data protection manage-
ment system has also been set up at the Group level. It is
continuously developed, controlled and monitored by the
VIG Group Data Protection Coordinator, who is also the
Data Protection Officer of VIG Holding. The core elements
are a Group-wide data protection guideline, a reporting
process defined in detail and ongoing training measures for
local data protection responsible persons on data pro-
tection topics. In addition, the VIG Group Data Protection
Coordinator conducts ad hoc monitoring activities when re-
quired to ensure a consistent, Group-wide minimum stand-
ard in data protection matters. Further details can be found
in ESRS 2 MDR-P “Policies adopted to manage material
sustainability matters”.
In addition, the current version of the VIG Holding Fit & Proper
Policy applies. The individual professional training measures
are defined and implemented in close cooperation between
Human Resources and the managers of the VIG Holding
employees to be trained. Induction plans or training plans
are available, to be drawn up by the relevant employees’
managers and implemented with the support of Human
Resources.
VIG maintains regular dialogue with customers in order to
define adequate actions and enable the Company to react
appropriately to material negative impacts. Feedback mecha-
nisms such as surveys, consultations with stakeholders or
interactions with customer service support the process.
This allows VIG to solve problems promptly and proactively.
Satisfaction is measured in the local insurance companies
primarily by means of specially defined metrics such as the
Net Promoter Score (NPS) or the average duration of the
claims settlement process. For further details, see ESRS
S4-2 “Processes for engaging with consumers and end-
users about impacts”.
In the reporting year, the Company took actions to further
expand the prevention of corruption and to implement the
requirements of the EU Whistleblower Directive. For more
information, see G1-1 “Business conduct policies and cor-
porate culture” and G1-3 “Prevention and detection of
corruption and bribery”.
Metrics and targets
MINIMUM DISCLOSURE REQUIREMENT – METRICS MDR-M –
METRICS IN RELATION TO MATERIAL SUSTAINABILITY MATTERS
Key metrics for measuring performance and target achieve-
ment are detailed in the topic-specific chapters under
“Metrics and targets”. Material assumptions and estimates
are described in the chapter “Value chain estimation” in
ESRS 2 BP-2 “Disclosures in relation to specific circum-
stances”. There are currently no plans for external SBTi vali-
dation of the targets.
MINIMUM DISCLOSURE REQUIREMENT – TARGETS MDR-T –
TRACKING EFFECTIVENESS OF POLICIES AND ACTIONS THROUGH
TARGETS
Through actions to reduce greenhouse gas emissions, VIG
supports the objectives of the European Green Deal, which
are aimed at minimising the impact of climate change and
supporting the transition to a carbon-neutral economy. In
addition, VIG undertakes to incorporate the Ten Principles
of the UN Global Compact on Human Rights, Labour, En-
vironment and Anti-Corruption in its business activities.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
61
This commitment is in line with the OECD Guidelines for
Multinational Enterprises, which promote responsible busi-
ness and ensure compliance with international standards.
VIG’s strategic targets are described in its strategic pro-
gramme and sustainability programme in VIG’s Group
Annual Report 2024 from page 10 onwards. As described
in SBM-1 “Strategy, business model and value chain”, the
concrete measurable target is to reduce greenhouse gas
emissions to net zero in the defined spheres of impact by
2050. The base year for target achievement is 2023. The
details are described in E1 “Climate change”.
ENVIRONMENTAL INFORMATION
DISCLOSURES PURSUANT TO ARTICLE 8 OF REGULATION (EU)
2
020/852 (TAXONOMY REGULATION)
Key figures for investments under the EU Taxonomy Regulat
ion
The EU Taxonomy Regulation is a classification system that
specifies criteria for determining whether an economic
activity qualifies as environmentally sustainable. The criteria
are linked to six EU environmental objectives: Climate
change mitigation, Climate change adaptation, Sustainable
use and protection of water and marine resources,
Transition to a circular economy, Pollution prevention and
control, Protection and restoration of biodiversity and
ecosystems.
The Taxonomy Regulation differentiates between taxonomy-
eligible and taxonomy-aligned economic activities. Taxono-
my-eligible economic activities are described in the tech-
nical screening criteria and are in principle suitable for
making a positive contribution to one or more of the six
environmental objectives. Moreover, if the economic activity
fulfils the defined technical screening criteria and does not
significantly harm any of the other objectives, the economic
activity is considered to be taxonomy-aligned. In addition,
the criteria for minimum safeguards must be met. For insur-
ance companies, special key figures have been defined
which relate to the taxonomy-aligned proportion of invest-
ments and non-life insurance premiums.
MANDATORY REPORTING FOR INVESTMENTS
For VIG’s assets, the Taxonomy Regulation requires that
exposures from investment activities have to be analysed
and disclosed with respect to their taxonomy eligibility and
their taxonomy alignment. On this basis, the key figures are
set out in accordance with Annex X to the Taxonomy Re-
gulation. These key figures are to be provided as a per-
centage relative to total assets. VIG defines total assets as
the sum of real estate holdings and financial instruments.
Exposure to governments, central banks and supranational
issuers was deducted from the recognised assets and/or
the coverage ratio. The disclosures are made based on the
Group solvency balance sheet and the key figures are
based on the fair values as of the reporting date of 31 De-
cember 2024. Only assets that represent investments in
economic activities are included in the taxonomy key figures.
These investments essentially consist of all direct invest-
ments, including investments in collective investment
undertakings, participations, loans, mortgages, real estate
and tangible assets. If the EU Taxonomy Regulation does
not make it clear which weighting should be used for the
calculation of a key figure, then the key figure based on
turnover will be applicable. This also applies to information
on investments of unit- and index-linked life insurance
where taxonomy alignment is indicated for both the
numerator and the denominator. If information is directly
available for determining the taxonomy eligibility and/or
alignment of an exposure, it is reported under the required
taxonomy key figures. For investments in companies, data
from an external data provider was used to determine
taxonomy eligibility and/or alignment. Real estate holdings
and other direct investments in non-financial assets were
assessed using a separate measurement method to deter-
mine taxonomy eligibility and/or alignment.
Real estate under construction is also taken into account to
the extent that it is reflected in the IFRS consolidated
balance sheet either under the balance sheet item “Invest-
ment property” or under “Owner-occupied property and
equipment”. Their alignment has been determined based
on the construction plans. If there is no data available for
determining the taxonomy alignment of real estate or tangible
62
Group Annual Report 2024
assets, these are classified as non-taxonomy-aligned. Expo-
sures to governments, central banks and supranational issu-
ers are not included in the taxonomy-eligible economic ac-
tivities. In VIG’s view, this only applies to national governments,
not to federal states, regions, municipalities, cities or com-
munities. Derivative financial instruments are also not included
when assessing taxonomy eligibility.
Additionally, exposures to companies that are not required
to publish non-financial information under Directive (EU)
2022/2464 (CSRD) are also not included in the taxonomy
key figures. These companies were identified using an ex-
ternal data provider.
As a precaution, non-consolidated funds for which no fund
content data is available are included under the exposures
to companies that are not required to report non-financial
information. Thus, only exposures to companies that are re-
quired to report non-financial information are reported as
non-taxonomy-eligible.
As of the reporting date 31 December 2024, the EU Tax-
onomy alignment includes both financial and non-financial
issuers for the first two objectives. For all other objectives,
only taxonomy alignment for non-financial issuers is publicly
available and considered in the reported key figures. The
following table presents the investment key figures in ac-
cordance with the Taxonomy Regulation. In the reporting
year, the proportion of investments related to the financing
of Taxonomy-aligned economic activities was 3.59% based
on turnover (previous year: 4.19%) and 4.69% based on
CapEx (previous year: 5.49%). Information on activities in
the fields of nuclear energy and fossil gas can be found on
page 65 onwards.
THE PROPORTION OF THE INSURANCE OR REINSURANCE UNDERTAKING’S INVESTMENTS THAT ARE DIRECTED AT FUNDING OR ARE
ASSOCIATED WITH TAXONOMY-ALIGNED IN RELATION TO TOTAL INVESTMENTS
Higher-level information on the KPIs
Explanatory notes on percentages in %
Explanatory notes on Euro figures in EUR million
The weighted average value of all the
investments of insurance or reinsurance
undertakings that are directed at funding, or
are associated with Taxonomy-aligned
economic activities relative to the value of
total assets covered by the KPI, with following
weights for investments in undertakings per
below
The weighted average value of all the
investments of insurance or
reinsurance undertakings that are
directed at funding, or are associated
with Taxonomy-aligned economic
activities, with following weights for
investments in undertakings per below
Turnover-based: 3.59%
Turnover-based: 1,190.6
CapEx-based: 4.69%
CapEx-based: 1,553.6
The percentage of assets covered by the KPI
relative to total investments of insurance or
reinsurance undertakings (total AuM).
Excluding investments in sovereign entities.
(Coverage ratio in %)
73.15%
The monetary value of assets covered
by the KPI. Excluding investments in
sovereign entities. (in EUR)
33,160.2
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
63
Additional, complementary disclosures: breakdown of denominator of the KPI
Explanatory notes on percentages in %
Explanatory notes on Euro figures in EUR million
The percentage of derivatives relative to total assets covered
by the KPI. -0.13%
The value in monetary amounts of derivatives:
-41.8
The proportion of exposures to financial and non-financial
undertakings not subject to Articles 19a and 29a of Directive
2013/34/EU over total assets covered by the KPI
Value of exposures to financial and non-financial undertakings
not subject to Articles 19a and 29a of Directive 2013/34/EU
For non-financial undertakings: 12.35%
For non-financial undertakings: 4,096.4
For financial undertakings: 25.02%
For financial undertakings: 8,296.9
The proportion of exposures to financial and non-financial
undertakings from non-EU countries not subject to Articles
19a and 29a of Directive 2013/34/EU over total assets
covered by the KPI:
Value of exposures to financial and non-financial undertakings
from non-EU countries not subject to Articles 19a and 29a of
Directive 2013/34/EU:
For non-financial undertakings: 12.44%
For non-financial undertakings: 4,125.4
For financial undertakings: 9.41%
For financial undertakings: 3,121.2
The proportion of exposures to financial and non-financial
undertakings subject to Articles 19a and 29a of Directive
2013/34/EU over total assets covered by the KPI:
Value of exposures to financial and non-financial undertakings
subject to Articles 19a and 29a of Directive 2013/34/EU
For non-financial undertakings: 11.51%
For non-financial undertakings: 3,815.4
For financial undertakings: 12.92%
For financial undertakings: 4,284.4
The proportion of exposures to other counterparties over
total assets covered by the KPI: 16.47%
Value of exposures to other counterparties and assets:
5,462.2
The proportion of the insurance or reinsurance undertaking’s
investments other than investments held in respect of life
insurance contracts where the investment risk is borne by
the policy holders, that are directed at funding, or are
associated with, Taxonomy-aligned economic activities: 0.65%
Value of insurance or reinsurance undertaking’s investments
other than investments held in respect of life insurance
contracts where the investment risk is borne by the policy
holders, that are directed at funding, or are associated with,
Taxonomy-aligned economic activities: 215.5
The value of all the investments that are funding economic
activities that are not taxonomy-eligible relative to the value
of total assets covered by the KPI:
16.64%
Value of all the investments that are funding economic
activities that are not taxonomy-eligible:
5,517.7
The value of all the investments that are funding Taxonomy-
eligible economic activities, but not Taxonomy-aligned
relative to the value of total assets covered by the KPI: (in %) 20.67%
Value of all the investments that are funding Taxonomy-
eligible economic activities, but not taxonomy- aligned:
6,853.7
64
Group Annual Report 2024
Additional, complementary disclosures: breakdown of numerator of the KPI
Explanatory notes on percentages in %
Explanatory notes on Euro figures in EUR
million
The proportion of Taxonomy-aligned exposures to financial and non-
financial undertakings subject to Articles 19a and 29a of Directive
2013/34/EU over total assets covered by the KPI:
Value of Taxonomy-aligned exposures to financial and non-financial
undertakings subject to Articles 19a and 29a of Directive
2013/34/EU:
For non-financial undertakings turnover-based:
2.25%
For non-financial undertakings turnover-based:
747.6
For non-financial undertakings CapEx-based:
3.26%
For non-financial undertakings CapEx-based:
1,081.5
For financial undertakings turnover-based:
0.17%
For financial undertakings turnover-based:
56.3
For financial undertakings CapEx-based:
0.26%
For financial undertakings CapEx-based:
85.4
The proportion of the insurance or reinsurance undertaking’s
investments other than investments held in respect of life insurance
contracts where the investment risk is borne by the policy holders, that
are directed at funding, or are associated with, Taxonomy-aligned
Value of insurance or reinsurance undertaking’s investments other
than investments held in respect of life insurance contracts where
the investment risk is borne by the policy holders, that are directed
at funding, or are associated with, Taxonomy-aligned
Turnover-based:
0.65%
Turnover-based:
215.5
CapEx-based:
0.88%
CapEx-based:
291.3
The proportion of Taxonomy-aligned exposures to other counterparties
and assets in over total assets covered by the KPI
Value of taxonomy-aligned exposures to other counterparties and
assets over total assets covered by the KPI:
Turnover-based:
1.17%
Turnover-based:
386.7
CapEx-based:
1.17%
CapEx-based:
386.7
Breakdown of the numerator of the KPI by environmental objective – Taxonomy-aligned activities – provided “Do-no-significant-harm”
(DNSH) and social safeguards are positive assessment
Environmental objective Turnover
in %
CapEx in %
Transitional
activities
Turnover (%)
Transitional
activities
CapEx (%)
Enabling activities
Turnover (%)
Enabling activities
CapEx (%)
1) Climate change mitigation 3.53%
4.52%
0.24%
0.27%
1.45%
2.03%
2) Climate change adaptation 0.05%
0.16%
0.08%
0.04%
3) The sustainable use and protection of
water and marine resources 0.00%
0.00%
0.00%
0.00%
4) The transition to a circular economy 0.00%
0.00%
0.00%
0.00%
5) Pollution prevention and control 0.00%
0.00%
0.00%
0.00%
6) The protection and restoration of
biodiversity and ecosystems 0.00%
0.00%
0.00%
0.00%
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
65
STANDARD TEMPLATES FOR DISCLOSURE PURSUANT TO ARTICLE 8(6) AND (7)
Template 1 – Nuclear and fossil gas-related activities
Row Activities
Turnover KPI
Yes/No
CapEx KPI
Yes/No
Nuclear energy related activities
1.
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of
innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the
fuel cycle. Yes
Yes
2.
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to
produce electricity or process heat, including for the purposes of district heating or industrial processes such as
hydrogen production, as well as their safety upgrades, using best available technologies.
Yes
Yes
3.
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce
electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen
production from nuclear energy, as well as their safety upgrades. Yes
Yes
Fossil gas related activities
4.
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that
produce electricity using fossil gaseous fuels. Yes
Yes
5.
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined
heat/cool and power generation facilities using fossil gaseous fuels.
Yes
Yes
6.
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation
facilities that produce heat/cool using fossil gaseous fuels. Yes
Yes
66
Group Annual Report 2024
Template 2.1 – Taxonomy-aligned economic activities (denominator) – based on the turnover KPI
Row Economic activities Amount and proportion (the information is to be presented in monetary amounts and as percentages)
CCM + CCA Climate Change Mitigation
(CCM)
Climate Change Adaptation
(CCA)
Amount (EUR)
%
Amount (EUR)
%
Amount (EUR)
%
1.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI 172,537
0.00%
172,537
0.00%
0
0.00%
2.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI 3,597,748
0.01%
3,597,748
0.01%
0
0.00%
3.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI 26,486,647
0.08%
26,486,000
0.08%
648
0.00%
4.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
128,172
0.00%
128,172
0.00%
0
0.00%
5.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
4,406,873
0.01%
2,589,785
0.01%
1,817,087
0.01%
6.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI 462,470
0.00%
462,470
0.00%
0
0.00%
7.
Amount and proportion of other
taxonomy-aligned economic activities not referred to
in rows 1 to 6 above in the denominator of the
applicable KPI 1,154,095,989
3.48%
1,137,785,194
3.43%
16,310,795
0.05%
8. Total applicable KPI 1,189,350,436
3.59%
1,171,221,906
3.53%
18,128,531
0.05%
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
67
Template 2.2 – Taxonomy-aligned economic activities (denominator) – based on the CapEx KPI
Row Economic activities Amount and proportion (the information is to be presented in monetary amounts and as percentages)
CCM + CCA Climate Change Mitigation (CCM) Climate Change
Adaptation (CCA)
Amount (EUR)
%
Amount (EUR)
%
Amount (EUR)
%
1.
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.26 of Annexes I and II
to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI 1,115,130
0.00%
1,115,130
0.00%
0
0.00%
2.
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.27 of Annexes I and II
to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI 10,287,530
0.03%
10,287,530
0.03%
0
0.00%
3.
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.28 of Annexes I and II
to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI 19,609,838
0.06%
19,609,838
0.06%
0
0.00%
4.
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.29 of Annexes I and II
to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
211,077
0.00%
211,077
0.00%
0
0.00%
5.
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.30 of Annexes I and II
to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
2,271,353
0.01%
2,271,353
0.01%
0
0.00%
6.
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.31 of Annexes I and II
to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI 1,107,752
0.00%
1,107,752
0.00%
0
0.00%
7.
Amount and proportion of other
taxonomy-aligned economic activities not referred to
in rows 1 to 6 above in the denominator of the
applicable KPI 1,517,638,441
4.58%
1,465,230,036
4.42%
52,408,406
0.16%
8. Total applicable KPI 1,552,241,123
4.68%
1,499,832,717
4.52%
52,408,406
0.16%
68
Group Annual Report 2024
Template 3.1 – Taxonomy-aligned economic activities (numerator) – based on the turnover KPI
Row Economic activities Amount and proportion (the information is to be presented in monetary amounts and as percentages)
CCM + CCA Climate Change Mitigation
(CCM)
Climate Change Adaptation
(CCA)
Amount (EUR)
%
Amount (EUR)
%
Amount (EUR)
%
1.
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of
the applicable KPI 172,537
0.01%
172,537
0.01%
0
0.00%
2.
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 in the numerator of
the applicable KPI 3,597,748
0.30%
3,597,748
0.30%
0
0.00%
3.
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 in the numerator of
the applicable KPI 26,486,647
2.23%
26,486,000
2.23%
648
0.00%
4.
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 in the numerator of
the applicable KPI
128,172
0.01%
128,172
0.01%
0
0.00%
5.
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 in the numerator of
the applicable KPI
4,406,873
0.37%
2,589,785
0.22%
1,817,087
0.15%
6.
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.31 of Annexes I and II to
Delegated Regulation 2021/2139 in the numerator of
the applicable KPI 462,470
0.04%
462,470
0.04%
0
0.00%
7.
Amount and proportion of other taxonomy-aligned
economic activities not referred to in rows 1 to 6 above
in the numerator of the applicable KPI
1,154,095,989
97.04%
1,137,785,194
95.66%
16,310,795
1.37%
8.
Total amount and proportion of taxonomy-aligned
economic activities in the numerator of the applicable
KPI 1,189,350,436
100.00%
1,171,221,906
98.48%
18,128,531
1.52%
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
69
Template 3.2 – Taxonomy-aligned economic activities (numerator) – based on the CapEx KPI
Row Economic activities Amount and proportion (the information is to be presented in monetary amounts and as percentages)
CCM + CCA Climate Change Mitigation
(CCM)
Climate Change Adaptation
(CCA)
Amount (EUR)
%
Amount (EUR)
%
Amount (EUR)
%
1.
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.26 of Annexes I and II
to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI 1,115,130
0.07%
1,115,130
0.07%
0
0.00%
2.
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.27 of Annexes I and II
to Delegated Regulation 2021/2139 in the numerator
of the applicable KPI 10,287,530
0.66%
10,287,530
0.66%
0
0.00%
3.
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.28 of Annexes I and II
to Delegated Regulation 2021/2139 in the numerator
of the applicable KPI 19,609,838
1.26%
19,609,838
1.26%
0
0.00%
4.
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.29 of Annexes I and II
to Delegated Regulation 2021/2139 in the numerator
of the applicable KPI
211,077
0.01%
211,077
0.01%
0
0.00%
5.
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.30 of Annexes I and II
to Delegated Regulation 2021/2139 in the numerator
of the applicable KPI
2,271,353
0.15%
2,271,353
0.15%
0
0.00%
6.
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.31 of Annexes I and II
to Delegated Regulation 2021/2139 in the numerator
of the applicable KPI 1,107,752
0.07%
1,107,752
0.07%
0
0.00%
7.
Amount and proportion of other taxonomy-aligned
economic activities not referred to in rows 1 to 6
above in the numerator of the applicable KPI
1,517,638,441
97.77%
1,465,230,036
94.39%
52,408,406
3.38%
8.
Total amount and proportion of taxonomy-aligned
economic activities in the numerator of the
applicable KPI 1,552,241,123
100.00%
1,499,832,717
96.62%
52,408,406
3.38%
70
Group Annual Report 2024
Template 4.1 – Taxonomy-eligible but not taxonomy-aligned economic activities – based on the turnover KPI
Row Economic activities Amount and proportion (the information is to be presented in monetary amounts and as percentages)
CCM + CCA Climate Change Mitigation
(CCM)
Climate Change Adaptation
(CCA)
Amount (EUR)
%
Amount (EUR)
%
Amount (EUR)
%
1.
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.26 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
267,867
0.00%
267,867
0.00%
0
0.00%
2.
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.27 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI 568,832
0.00%
568,832
0.00%
0
0.00%
3.
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.28 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI 45,829,274
0.14%
45,829,274
0.14%
0
0.00%
4.
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.29 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI 92,057,739
0.28%
92,057,739
0.28%
0
0.00%
5.
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.30 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI 56,612,750
0.17%
52,979,091
0.16%
3,633,658
0.01%
6.
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.31 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI 7,345,711
0.02%
7,345,711
0.02%
0
0.00%
7.
Amount and proportion of other taxonomy-eligible but
not taxonomy-aligned economic activities not referred
to in rows 1 to 6 above in the denominator of the
applicable KPI 5,874,064,261
17.71%
5,825,015,462
17.57%
49,048,799
0.15%
8.
Total amount and proportion of taxonomy-eligible
but not taxonomy-aligned economic activities in the
denominator of the applicable KPI
6,076,746,433
18.33%
6,024,063,975
18.17%
52,682,458
0.16%
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
71
Template 4.2 – Taxonomy-eligible but not taxonomy-aligned economic activities – based on the CapEx KPI
Row Economic activities Amount and proportion (the information is to be presented in monetary amounts and as percentages)
CCM + CCA Climate Change Mitigation
(CCM)
Climate Change Adaptation
(CCA)
Amount (EUR)
%
Amount (EUR)
%
Amount (EUR)
%
1.
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.26 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
228,401
0.00%
228,401
0.00%
0
0.00%
2.
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.27 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI 2,611,124
0.01%
2,611,124
0.01%
0
0.00%
3.
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.28 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI 1,900,682
0.01%
1,900,682
0.01%
0
0.00%
4.
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.29 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI 81,011,993
0.24%
79,255,131
0.24%
1,756,862
0.01%
5.
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.30 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI 47,448,487
0.14%
47,448,487
0.14%
0
0.00%
6.
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.31 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI 13,887,923
0.04%
13,887,923
0.04%
0
0.00%
7.
Amount and proportion of other taxonomy-eligible but
not taxonomy-aligned economic activities not referred
to in rows 1 to 6 above in the denominator of the
applicable KPI 6,023,825,721
18.17%
5,954,308,151
17.96%
69,517,570
0.21%
8.
Total amount and proportion of taxonomy-eligible
but not taxonomy-aligned economic activities in the
denominator of the applicable KPI
6,170,914,331
18.61%
6,099,639,899
18.39%
71,274,432
0.21%
Template 5 is not reported, as the activities listed therein are
taxonomy-eligible by definitions, although the template is
intended to show these activities as non-taxonomy-eligible,
which is contradictory.
K
ey figures for non-life insurance under the EU Taxonomy
Regulation
Insurance companies must also report the degree to which
they are sustainable based on the EU Taxonomy for sustain-
able economic activities. This includes not only the proportion
of taxonomy-aligned investments but also the proportion of
taxonomy-aligned non-life insurance premiums.
VIG insurance companies ensure compliance with the Tax-
onomy Regulation (EU) 2020/852 in various ways, including
through Group-wide requirements and an appropriate pro-
duct development process.
As part of the sales process, which can also be carried out
through brokers and other partners in addition to own sales
72
Group Annual Report 2024
workforce, VIG provides policyholders with relevant infor-
mation on the coverage options. The insights gained from
this process as well as the findings from market observation
are incorporated into the product development process.
According to Annex II of Delegated Regulation 2021/2139,
amended by the European Commission’s sustainable fi-
nance package on 27 June 2023, only 8 of the 12 non-life
insurance lines of business are generally taxonomy-eligible
under Solvency II, as defined in Annex I of Delegated Regu-
lation (EU) 2015/35. These insurance lines of business in-
clude medical expense insurance, income protection insur-
ance, workers’ compensation insurance, motor vehicle lia-
bility insurance, other motor insurance, marine, aviation and
transport insurance, fire and other damage to property in-
surance, and assistance. Only those insurance lines of busi-
ness that also include coverage for climate-related risks as
defined in Appendix A of the above-mentioned Annex II are
to be classified as taxonomy-eligible.
The local insurance companies within the scope of the Tax-
onomy Regulation currently cover climate risks in the form
of natural disaster cover. The natural disaster risks that are
relevant under Solvency II are flooding, earthquakes, storms
and hail. Since current scientific knowledge has not iden-
tified an increase in the earthquake risk as a result of climate
change, earthquakes are generally not taken into account
as part of this evaluation. Coverage for the remaining natural
disaster risks exists mainly in the following three insurance
lines of business: other motor insurance, marine, aviation
and transport insurance, and fire and other damage to
property insurance. These three insurance lines of business
therefore form the basis for the taxonomy-aligned proportion
of the non-life insurance premiums that has to be disclosed.
Article 3 of the Taxonomy Regulation (EU) 2020/852 stipulates
that taxonomy-eligible insurance lines of business must fulfil
the following requirements to be classified as a taxonomy-
aligned proportion of the non-life insurance premiums:
– They make a substantial contribution to the achievement
of one or more environmental objectives of the Regulation.
– They do no significant harm to one or more of the envi-
ronmental objectives of the Regulation (DNSH or “Do No
Significant Harm” criterion).
– The minimum safeguards laid down in Article 18 of the
Regulation are adhered to.
– The technical screening criteria must be met.
The technical screening criteria are used to assess whether
an insurance service makes a substantial contribution to the
environmental objective “climate change adaptation”. They
include: leadership role when it comes to climate risk pricing
and modelling; product design requirements; innovative
solutions for insurance coverage; data sharing; high stand-
ards of service after natural disasters. All local insurance
companies that provide climate risk coverage within an
eligible line of business use a questionnaire to assess
whether the criteria have been met. The completed ques-
tionnaires of the insurance companies are validated by VIG
Holding and incorporated into the calculation for deter-
mining the taxonomy-aligned proportion of non-life insur-
ance premiums.
Compliance with the DNSH criteria is assessed in VIG on
the basis of NACE codes used throughout the Group,
which are a recognised classification system for economic
activities.
In addition, the minimum safeguards in accordance with
Article 18 must be met. Compliance with minimum safe-
guards at VIG is ensured across multiple levels and in
relevant value chain areas by means of Group-wide guide-
lines, a risk-based approach to counterparty screening, and
a remediation process in place if a material risk is identified.
For the calculation of the taxonomy-aligned proportion of
non-life insurance premiums, the gross written premiums
are used for the numerator and denominator, as these are
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
73
published in the Group Annual Report. For the calculation
of the numerator, the EU Commission interpreted the infor-
mation in Annex II of the Regulation in a Commission Notice
(C/2024/6691) with questions and answers on the EU
Taxonomy published on 8 November 2024 to the effect that
only the part of the premium of a taxonomy-aligned in-
surance contract that relates to coverage of climate-related
risks may be applied. Based on market practice and the
report on the first-time publication, the premium split has
been derived from the claim’s history excluding major loss
events, reinsurance pricing information, and expert esti-
mates based on company-specific circumstances and data
availability.
The KPI calculation is based on data submitted by the local
insurance companies in a standardised form with integrated,
automated validations and then uploaded by way of a central
reporting system. The consolidated key figures (KPIs) for the
non-life insurance business are calculated on the basis of this
data. The results are reconciled with the data used for the
consolidated financial statements within the reporting plat-
form. This data is internal VIG data, reinsurance data, and
data from external service providers, which is consistent with
the data used for the consolidated financial statements. The
data sources are consistent with other VIG financial reporting
systems. The mandatory key figures to be disclosed for the
non-life insurance business are set out in the table below.
Template for the KPIs of insurance and reinsurance un
dertakings
Substantial contribution to climate
change adaptation
DNSH (Do No Significant Harm)
Economic activities (1) Absolute
premiums
2024
(2)
Proportion
of
premiums
2024
(3)
Proportion
of
premiums
2023
(4)
Climate
change
mitigation
(5)
Water and
marine
resources
(6)
Circular
economy
(7)
Pollution
(8)
Biodiversity
and
ecosystems
(9)
Minimum
safeguards
(10)
in € million
in %
in %
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
A.1. Non-life insurance and
reinsurance underwriting
Taxonomy-aligned activities
(environmentally sustainable)
613.9
5.85%
4.78%
Y
Y
Y
Y
Y
Y
A.1.1. Of which reinsured 217.5
2.07%
1.86%
Y
Y
Y
Y
Y
Y
A.1.2. Of which stemming from
reinsurance activity 0.0
0.00%
0.00%
Y
Y
Y
Y
Y
Y
A.1.2.1. Of which reinsured
(retrocession)
0.0
0.00%
0.00%
Y
Y
Y
Y
Y
Y
A.2. Non-life insurance and
reinsurance underwriting
Taxonomy-eligible but not
environmentally sustainable
activities (not Taxonomy-aligned
activities) 3,289.3
31.36%
26.27%
B. Non-life insurance and
reinsurance underwriting
Taxonomy-non-eligible activities 6,587.2
62.79%
68.95%
Total (A.1 + A.2 +B) 10,490.4
100.00%
100.00%
74
Group Annual Report 2024
The taxonomy-eligible premium for the reporting year in-
creased to 31.36%, which was achieved through an im-
proved portfolio screening process. The taxonomy-aligned
premium increase to 5.85% was achieved in particular
through a more detailed assessment of the technical
screening criteria and the implementation of more precise
methodology in the data collection process.
Based on the findings and results of the report on taxonomy
alignment in the previous year (first-time reporting), VIG has
included the KPI “taxonomy-aligned premium” in its sus-
tainability programme and developed a plan to increase the
proportion of sustainable premiums.
VIG does not disclose the standard templates laid down in
Delegated Regulation (EU) 2022/1214 in accordance with
Annex XII for exposures in the non-life insurance business,
as there is not currently sufficient counterparty data avail-
able and the information obtained would be of little use to
investors and other stakeholders. In addition, VIG has formu-
lated the “Responsible Insurance” declaration with regard
to the exclusion criteria for certain sectors, among other
things. This declaration is described in more detail in ESRS
E1-2 “Policies related to climate change mitigation and
adaptation”.
WEIGHTED AVERAGE VALUE IN ACCORDANCE WITH THE EU
TAXONOMY REGULATION
In order to comply with the disclosure pursuant to Annex XI
DDA (EU) 2021/2178, the following values are reported in
accordance with the EU Taxonomy Regulation in relation to
the turnover-based investment KPI and the CapEx-based
investment KPI of the insurance or reinsurance undertaking
and the KPI of the insurance or reinsurance undertaking for
non-life insurance activities, weighted according to the
share of the revenue of the insurance or reinsurance under-
taking from its investment activity and the share of the
revenue of the insurance or reinsurance undertaking from
its non-life insurance activities of the total revenue of the
insurance or reinsurance undertaking.
Weighted KPI
in %
The weighted average of the turnover-based KPI on investments of the insurance or reinsurance undertaking and the KPI on non-life underwriting
of the insurance or reinsurance undertaking with weightings in accordance with the proportion of revenue that the insurance or reinsurance
undertaking derives from its investing activities and the proportion of revenue the insurance or reinsurance undertaking derives from its non-life
underwriting activities in the total revenue of the insurance or reinsurance undertaking 5.77%
The weighted average of the CapEx-based KPI on investments of the insurance or reinsurance undertaking and the KPI on non-life underwriting of
the insurance or reinsurance undertaking with weightings in accordance with the proportion of revenue that the insurance or reinsurance
undertaking derives from its investing activities and the proportion of revenue the insurance or reinsurance undertaking derives from its non-life
underwriting activities in the total revenue of the insurance or reinsurance undertaking 5.81%
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
75
ESRS E1 CLIMATE CHANGE
The following section describes the requirements related to
ESRS 2.
Governance
DISCLOSURE REQUIREMENT RELATED TO ESRS 2 GOV-3 –
INTEGRATION OF SUSTAINABILITY-RELATED PERFORMANCE IN
INCENTIVE SCHEMES
With regard to the integration of sustainability-related perfor-
mance in incentive schemes, reference is made to the
information provided in chapter ESRS 2 GOV-3 “Integration of
sustainability-related performance in incentive schemes”. Cli-
mate considerations are integrated into the incentive scheme
insofar as part of the variable remuneration of the members of
the VIG Holding Managing Board is subject to deferred pay-
ment, which is tied to the sustainable development of VIG.
The assessment of sustainable development takes into ac-
count not only economic objectives but also the responsibility
for the environment, society and employees. However, it
should be noted that no specific targets or metrics in the
sense of the defined greenhouse gas emission reduction tar-
gets are used for the assessment of these areas, but rather a
holistic assessment of the progress made is carried out.
Strategy
DISCLOSURE REQUIREMENT E1-1 – TRANSITION PLAN FOR
CLIMATE CHANGE MITIGATION
In the reporting year, VIG developed a transition plan for
climate change mitigation, which serves to define and im-
plement the strategic actions and targets that will support
the transformation towards a more sustainable business.
The transition plan for climate change mitigation includes
VIG’s consolidated insurance companies as well as, for its
internal operations, financial companies such as pension
funds and all companies that are essential for the insurance
business (e.g. claims management).
With its transition plan for climate change mitigation, VIG
aims to reduce the absolute greenhouse gas emissions in
Scope 1, 2 and 3 in line with the Paris Agreement. To this
end, VIG has elected to follow a scientifically grounded net-
zero path as a reference for its target and has chosen the
Net Zero 2050 scenario developed by the Network for
Greening the Financial System (NGFS), which is in line with
the target of limiting global warming to 1.5°C through strict
climate guidelines and technological innovations. It takes
into account measures such as the decarbonisation of the
energy sector, increased energy efficiency and the develop-
ment of new technologies to combat emissions that are
difficult to reduce. It is also based on the latest scientific
evidence and represents a reduction path for absolute
greenhouse gas emissions without distinguishing between
regions or industries. For this reason, VIG applies the reduc-
tion targets derived from the scenario uniformly to all focus
portfolios consolidated at the Group level in order to ensure
that the targets are implemented in accordance with science-
based targets.
The transition plan for climate change mitigation defines
science-based targets and is currently focused on the cor-
porate portfolio in underwriting, on corporate bonds and
equities and other non-fixed-interest securities in asset
management, and on VIG’s internal operations. The reduc-
tion targets for the selected portfolios apply at the Holding
level and are also assigned at the level of the individual
Group companies. The greenhouse gas emissions from the
base year 2023 serve as a starting point for measuring pro-
gress. Based on the selected scenario, the path to net zero
by 2050 requires VIG to achieve an absolute reduction in
greenhouse gas emissions of a little under 30% (starting
from the base year 2023) by 2030. The specific reference
target values resulting from this reduction for each sphere
of impact are presented in chapter ESRS E1-4 “Targets
related to climate change mitigation and adaptation”.
Key decarbonisation levers have been identified for each
sphere of impact. These serve as a guide and create the
framework for tangible actions, both at the level of the
individual Group companies and at the investment level (e.g.
investment security, issuer). An extract of the identified
decarbonisation levers is presented in the following table:
76
Group Annual Report 2024
Sphere of impact
1)
Decarbonization levers
Underwriting
Corporate
Reduction of coverage for risks and contracts: The systematic reduction of insurance coverage in emission-intensive areas can actively contribute to
reducing greenhouse gas emissions.
Expansion of new business, taking into account target intensities (tCO
2
e/million EUR): New contracts will increasingly be concluded with a “net-zero”
target intensity (tCO
2
e/million EUR) by 2030.
Focus on coverage in renewable energies sector: A particular focus is to be placed on customers in the renewable energies sector who contribute to
the energy transition and to sustainable transformation.
Reduction in greenhouse gas-intensive industries: Another focus is on exclusion criteria in particularly emission-intensive industries such as thermal
coal (see chapter ESRS E1-2 “Policies related to climate change mitigation and adaptation”).
Asset Management
Reinvestment of the corporate bonds of top issuers with maturities prior to 2030: On maturity, the aim is to reinvest in issuers with a respective
average greenhouse gas intensity of the sector, thereby improving the climate balance of the VIG portfolio.
New investment with target intensity: For new investments due to business growth, the aim is to invest to the extent necessary in line with a "net-
zero" target intensity 2030.
Reduction of investments in high-intensity sectors: In the absence of climate targets or reduction plans, investments in particularly emission-intensive
industries are being gradually reduced. Another focus is on exclusion criteria such as for thermal coal (see chapter ESRS E1-2 “Policies related to
climate change mitigation and adaptation”).
Internal operations
Reduction of Scope 1 emissions in the undertaking’s own vehicle fleet: The aim is to reduce the greenhouse gas emissions of the VIG vehicle fleet by
switching to low-emission or electric vehicles.
Reduction of Scope 2 emissions: The expansion of the use of renewable electricity sources and the optimization of energy consumption for heating
(in some cases including Scope 1) and cooling are to be accelerated.
1)
For the Underwriting Retail portfolio, no science-based targets have been set yet as part of the transition plan for climate change mitigation due to a lack of framework conditions for target tracking. Therefore,
the sphere of impact is not listed separately in this table.
The majority of VIG’s greenhouse gas emissions are in-
directly caused in Scope 3 by emissions related to insur-
ance contracts or financed emissions. In the area of internal
operations, greenhouse gas emissions are comparatively
low and can be found in Scope 1 and Scope 2 as well as in
Scope 3 (air travel). With regard to the quantification of in-
vestments and financial resources that support the imple-
mentation of the transition plan for climate change mitiga-
tion, the collection and analysis of the relevant data were
still in progress in the reporting year. Disclosure of this infor-
mation is planned for future reporting periods as soon as
the necessary data is available and the corresponding pro-
cesses have been fully implemented. Since the Scope 3
emissions of VIG are primarily related to financed emissions
under category 15 in accordance with the Greenhouse Gas
Protocol (GHG Protocol), over which VIG has only limited
control, no significant locked-in GHG emissions can be re-
ported in the year under review. A risk to the reduction targets
due to locked-in emissions is therefore not relevant for VIG.
The transition plan for climate change mitigation is based on
VIG’s sustainability programme and is of central importance
for its business activities. It is embedded throughout VIG’s
governance structure, which means that targets, activities,
progress and updates are developed like all other business-
related actions and subsequently reported and discussed
on a regular basis by the local managing boards and
supervisory boards of the companies. The interaction
between local companies and the VIG Holding departments
with regard to the implementation of the transition plan for
climate change mitigation at the local level takes place on a
consultation and dialogue basis. All activities relating to the
integration of Group targets at the level of the companies
and to the measurement and control of results and progress,
including any resulting adjustments, are primarily the re-
sponsibility of the local managing boards of the companies
and consequently also of the VIG Holding Managing Board
or, subordinately the respective departments.
Overall responsibility for sustainability matters, the transition
to a more sustainable economy and thus the transition plan
for climate change mitigation and its implementation lies
with the VIG Holding Managing Board. In view of the im-
portance and the cross-divisional scope of the transition
plan for climate change mitigation, the plan was adopted by
the Managing Board in January 2025. Since the transition
plan for climate change mitigation was drawn up in the
reporting year, VIG Holding will monitor implementation and
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
77
target achievement from 2025 onwards. Progress in imple-
mentation and significant changes to the transition plan for
climate change mitigation are discussed in the meetings of the
Sustainability Committee. With regard to the measurement of
progress with the emission reductions in the individual
spheres of impact, reference is made to chapter E1-6 “Gross
Scopes 1, 2, 3 and Total GHG emissions”.
DISCLOSURE REQUIREMENT RELATED TO ESRS 2 SBM-3 –
MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR
INTERACTION WITH STRATEGY AND BUSINESS MODEL
In the course of carrying out the double materiality assess-
ment of VIG, the material climate-related impacts, risks and
opportunities were identified. The table below shows the
climate-related risks classified as material and assigns them
to physical or transition risks.
The physical risks of climate change arise directly from the
consequences of climate change, such as an increase in
the global average temperature and the related more
frequent and intense natural disasters and extreme weather
events such as floods, heat/droughts, storms and hail.
Transition risks relate to the risks that arise in the course of
the transition to a climate-neutral and sustainable economy
and society. For example, they may result in a devaluation
of assets. The reasons for this include changes in the
political and legal framework conditions of the real economy
(e.g. introduction of a CO
2
tax), technological innovations
(e.g. renewable energy, storage technologies) and changes
in consumer behaviour.
ESRS sub-topic Sphere of
impact
Material climate-related risks according to the double materiality assessment Type of climate-related risk
Climate change
adaptation
Underwriting Increased occurrence of natural disasters due to climate change Physical risk
Higher frequency of regular losses due to changed weather conditions (e.g. increased number
of days with rain and snowfall, longer periods of drought)
Physical risk
Asset
Management
Default or negative impacts on the creditworthiness of debtors due to the increase in extreme
events (weather, natural disasters)
Physical risk
Climate change
mitigation
Underwriting
Increase in claims by policyholders due to climate events that could have been avoided if
appropriate preparations/precautions had been taken
Transition risk
Asset
Management
Losses in the value of investments (indirectly through stranded assets) due to sustainability
measures, e.g. by the legislator
Transition risk
Negative media coverage because investments are made in businesses that do not adequately
mitigate their impact on the environment.
Transition risk
A detailed description of the identified climate-related impacts,
risks and opportunities can be found in the next chapter
concerning the disclosure requirement related to ESRS 2 IRO-
1 “Description of the processes to identify and assess material
climate-related impacts, risks and opportunities”.
By conducting scenario analyses, VIG also assesses how
climate change will affect claims development and therefore
the insurance business. Regular internal risk analyses are
also carried out on the medium- and long-term impacts of
climate change, covering both transition risks and physical
risks. Internal and external experts working together assess
the probabilities of natural disasters and calculate the pos-
sible impacts in all key markets of VIG in order to ensure the
long-term resilience of the Group-wide insurance portfolio.
Scenarios with three different temperature increases (1.5°C,
2.0°C and 3.0°C) are analysed, which enables analysis over
short-, medium- and long-term time horizons. The risk
models applied are regularly improved on the basis of new
data, facts and insights such as the latest scientific studies
or newly constructed flood protection measures, for example.
In the consolidated financial statements, any impacts of the
climate risks identified in the course of the scenario analysis
78
Group Annual Report 2024
(including floods) were also assessed in the valuation of as-
sets and liabilities, where applicable. The expertise gained in
the area of underwriting helps VIG purchase the optimal re-
insurance coverage for assumed risks, among other things.
In addition, the natural disaster reinsurance programme is
reviewed annually, allowing the occurrence of any scenario
impacts to be mitigated by appropriate reinsurance.
Impact, risk and opportunity management
DISCLOSURE REQUIREMENT RELATED TO ESRS 2 IRO-1 –
DESCRIPTION OF THE PROCESSES TO IDENTIFY AND ASSESS
MATERIAL CLIMATE-RELATED IMPACTS, RISKS AND OPPORTUNITIES
As explained in section E1 ESRS 2 SBM-3 “Material im-
pacts, risks and opportunities and their interaction with
strategy and business model”, VIG performed a scenario
analysis, as in previous years, that considered the potential
impacts, risks and opportunities of climate scenarios with
global warming levels of 1.0°C, 2.0°C and 3.0°C. The analy-
sis was carried out on the basis of a short-, medium- and
long-term time horizon and includes the assessment of
physical risks as well as transition risks that could arise from
various climate scenarios. The scenario analysis is carried
out, among other things, to assess the possible financial
impacts under different warming paths and to derive appro-
priate actions. Detailed information on the classification of
climate risks and the identification of short-, medium- and
long-term transition events can be found in the notes to the
consolidated financial statements in the section “Risk strat-
egy and risk management” starting on page 261.
The process of the double materiality assessment in relation
to the evaluation of climate-related impacts, risks and op-
portunities is described in chapter ESRS 2 IRO-1 “Descrip-
tion of the processes to identify and assess material cli-
mate-related impacts, risks and opportunities”. The results
in relation to the three sub-topics of “Climate change adap-
tation”, “Climate change mitigation” and “Energy” are pres-
ented below.
Material climate-related impacts
The material negative climate-related impacts of int
ernal op-
erations result from greenhouse gas emissions, particularly
those caused by energy consumption. VIG works continu-
ously to reduce the emissions it produces, for example by
installing equipment to produce renewable energy, pur-
chasing renewable energy, acquiring electric vehicles and
installing electric charging stations.
Insurance products themselves do not produce green-
house gases, but the insured items such as buildings or ve-
hicles do. According to a 2022 analysis by the German Fed-
eral Statistical Office, cars and motorcycles are responsible
for the majority (about 60%) of all emissions caused by road
traffic in the European Union. Since motor third party liability
insurance is mandatory in the countries in which VIG oper-
ates (except Georgia), and there is also an acceptance ob-
ligation for motor third party liability insurance in some of
these countries, these insured items have a high climate-
related impact, which, due to the insurance obligation, can
only be controlled indirectly by the insurance industry as a
whole. The focus in underwriting is therefore on reducing
the harmful impacts of climate change. (Re)insurance solu-
tions play a central role in this. As one of the leading insur-
ance companies in Central and Eastern Europe, VIG offers
a wide range of policyholders security and protection by
covering risks from natural disasters in accordance with
VIG’s insurance contracts.
In the area of asset management, VIG’s investments in infra-
structure projects such as wind and solar energy, which
contribute to the achievement of EU-wide energy transition
targets, were identified as positive climate-related impacts.
A description of VIG’s emission reduction targets is included
in chapters E1-1 “Transition plan for climate change mitiga-
tion” and E1-4 “Targets related to climate change mitigation
and adaptation” in connection with the transition plan for
climate change mitigation.
Material climate-related risks
In underwriting, the physical risk of increased frequ
ency of
regular losses due to changes in weather patterns (e.g.
more frequent rain and snowfall or longer droughts) has
been identified. In addition, there is the physical risk of an
increased occurrence of natural disasters, such as the risk
of flooding as a result of climate change. The regions of
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
79
Eastern Europe and Central Asia are considered to be par-
ticularly at risk in this regard. More frequent natural disasters
can also lead to higher gross losses. Severe weather events
categorised as a 100-year event or more extreme have
already occurred more frequently in the last two decades
(e.g. snow loading, flooding, hail, storms). Based on internal
risk analyses, VIG considers the issue of flooding in par-
ticular to be material in terms of natural disasters.
The assessment and pricing of climate risks by incorpo-
rating climate data and risk modelling into insurance terms
and conditions enables the appropriate consideration of
potential losses and supports the long-term stability and
sustainability of the insurance business. This has become
particularly important in non-life insurance.
In the corporate business, the local insurance terms and
conditions are based on the individual risk situation of the
respective policyholder, which may be assessed by VIG’s
own consulting company, Risk Consult, where applicable.
In individual cases, insurance can only be concluded once
the proposed risk minimisation measures have been im-
plemented.
In addition to the physical risks, the transition risk of a
potential increase in losses due to insufficient preparation
for climate change was identified in underwriting. In liability
insurance in particular, higher losses may occur due to a
lack of preparation for climate change.
The physical risk of default or negative impacts on the
creditworthiness of debtors as a result of an increase in
extreme weather events has also been identified for VIG in
the area of asset management. Natural disasters can lead
to production shutdowns, which can affect the creditwor-
thiness of investee companies. The corresponding risk is
taken into account in the market risk. In addition, VIG in-
vestments that do not meet sustainability criteria entail tran-
sition risks, among others. These can lead to losses in value
due to changes or additions to the legal framework and
have therefore been identified as material. As ESG aspects
are taken into account in VIG’s investment strategy, the risk
is already being addressed appropriately.
In addition, ESG limit monitoring is used to continuously
monitor whether investments comply with the Group-wide
ESG investment strategy. If investments were to be made
outside the ESG investment strategy, there would be a
reputational risk for VIG as part of this transition risk. VIG
seeks to reduce this risk by implementing various actions
under the sustainability programme, such as taking green-
house gas emissions into account in future investment
decisions.
Material climate-related opportunities
In its communication of 31 August 2023, the European
In-
surance and Occupational Pensions Authority (EIOPA) as-
sumes that around 75% of climate-related disasters are not
covered by insurance. The reason for this is that state infra-
structure in particular is not insured. Although the general
public is expected to show a growing interest in insurance
solutions for climate risks, these can only be offered within
the limits of the available reinsurance capacity and, if nec-
essary, with the involvement of state coverage (e.g. the
discussion about increasing natural disaster coverage in
Austria). Climate change mitigation actions taken in the area
of underwriting therefore also require adjustments to prod-
ucts by extending the coverage where insurable. Insurance
for environmental technology solutions offers the oppor-
tunity to offer new products and services. However, this
requires that these risks be insurable and that sufficient
reinsurance protection be provided, since the increase in
the potential risk from additional cover for natural disasters
will result in higher costs for insurance service providers,
which must be priced in a risk-adequate manner. In the area
of underwriting, climate change adaptation is also seen as
an opportunity to contribute to economic stability and resili-
ence by providing adequate insurance protection against
natural disasters. This accelerates economic recovery and
enables the affected regions to resume their economic
activity more quickly.
Another climate-related opportunity has been identified in the
area of asset management with regard to VIG’s investment
opportunities in green bonds. This allows VIG to make an
active contribution to sustainable transformation, meet the
expectations of its stakeholders and create long-term value.
80
Group Annual Report 2024
DISCLOSURE REQUIREMENT E1-2 – POLICIES RELATED TO CLIMATE
CHANGE MITIGATION AND ADAPTATION
Appropriate policies have been developed to address the
identified material impacts, risks and opportunities for VIG,
as described below.
Policies related to climate change mitigation and adaptation in
internal operations
Although the largest share of VIG’s greenhouse gas e
mis-
sions can be attributed to the underwriting and asset man-
agement spheres of impact, greenhouse gas emissions are
also generated in internal operations. VIG has leverage in
this area that can be used to contribute to climate change
mitigation and adaptation. Reference is made here to the
sustainability programme, which is described in more detail
in ESRS 2 MDR-P “Policies adopted to manage material
sustainability matters”. The first step is to reduce emissions
as much as possible, followed by offsetting any remaining
emissions. VIG’s sustainability programme combines actions
that address climate change mitigation, climate change ad-
aptation, energy efficiency and the use of renewable en-
ergies. The Code of Business Ethics is another element that
addresses the topic of environmental protection. Details are
provided in ESRS 2 MDR-P “Policies adopted to manage
material sustainability matters”.
Policies related to climate change mitigation and ad
aptation in
underwriting
VIG is committed to helping its policyholders adapt
better
to climate change and to continuously increasing the range
of products and services that support these efforts. Some
VIG insurance companies offer specific products for this
purpose. In addition, some VIG life insurance companies
offer investment options in funds with ESG characteristics.
To this end, VIG has developed the “Responsible Insurance”
declaration, which includes self-imposed climate-related cri-
teria defined by VIG for its corporate business. These criteria
help to embed sustainability even more comprehensively in
the core business. The declaration is available for download
on the VIG website (group.vig/sustainability/downloads/) and
has been approved by the VIG Holding Managing Board.
The stricter requirements of the declaration have applied
since March 2024 and are mandatory for all VIG insurance
and reinsurance companies.
In consideration of the issues of climate change mitigation,
climate change adaptation, energy efficiency and the use of
renewable energies, VIG has not concluded any new insur-
ance contracts for coal mining or coal power plant con-
struction projects since 2019. Existing insurance contracts
in this area are being gradually reduced. The updated re-
quirements of the declaration mean that there is an obli-
gation to pursue a declining underwriting strategy for exist-
ing risk insurance. In view of this, VIG insurance companies
will not increase their engagement in insurance cover for
coal risks. Only in countries where the economy and em-
ployment depend to a significant extent on the coal sector
may the provision of cover for coal risks be maintained in
exceptional cases, in line with the country’s strategy for
phasing out coal-based energy. These exceptional cases
are set out in detail in the “Responsible Insurance” declara-
tion. In addition, VIG does not offer risk coverage for uncon-
ventional oil and gas exploration. This includes shale gas
and shale oil as well as all kinds of new deep-sea mining
projects. In the interest of promoting the use of renewable
energy sources, VIG has also been providing insurance for
renewable energy sources such as wind and water power,
photovoltaics and biomass in Central and Eastern Europe
for many years. This makes VIG one of the leading insur-
ance providers in this region for renewable energy genera-
tion facilities.
In addition, the underwriting portfolio for corporates is ana-
lysed at the individual company level based on the absolute
greenhouse gas emissions volume. A programme of ac-
tions and activities has been developed for the main green-
house gas emitters, with the aim of aligning the corporate
portfolio with the net-zero pathway. Furthermore, climate-
related risks, such as environmental risks and the natural dis-
aster risk of VIG policyholders, are evaluated by the Group’s
consulting company, Risk Consult, where appropriate.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
81
Based on the results, actions are then developed and im-
plemented with the respective companies.
Policies related to climate change mitigation and adaptation in asset
management
VIG invests its premium income in such a way that it can fully
meet its obligations to customers at all times. VIG therefore
focuses on security in investments and prefers good credit
ratings and thus stable returns. At the same time, however,
VIG takes responsibility for the environmental impact of its
investments and so implements expanded sustainability cri-
teria. An important tool for decarbonising the investment
portfolio is the portfolio analysis carried out in each of the
local insurance companies as part of the sustainability pro-
gramme, which focuses on the main greenhouse gas emit-
ters in the portfolio. The companies then had to develop an
action plan for this group of emitters with the aim of putting
the entire portfolio on a development path in terms of the
CO
2
e footprint that is consistent with the net-zero target for
2050 at 1.5°C warming.
VIG’s “Responsible Investment” declaration, which addresses
the material impacts, risks and opportunities related to cli-
mate change mitigation and climate change adaptation in
asset management, applies to all VIG (re)insurance com-
panies and was approved by the VIG Holding Managing
Board. It is available for download from the VIG website
(https://group.vig/en/sustainability/downloads/) and is based
on a combination of several strategies. Among other things,
investments in companies to which the VIG exclusion cri-
teria apply are excluded. In addition, VIG pursues an en-
gagement approach that promotes active dialogue with
investee companies to encourage them to improve the sus-
tainable impact of their business activities. To implement
this approach, VIG has entered into a collaboration with the
internationally renowned external partner ISS ESG. Since
September 2023, a report has been prepared on the en-
gagement activities and the results are published annually
on the VIG website. The declaration also aims to increase
the share of investments based on the VIG Sustainability
Bond Framework (e.g. renewable energies, environmentally
friendly construction methods) and the share of investments
in green bonds. In the reporting year, a total of EUR 1,525 mil-
lion was invested in green bonds. This represents an in-
crease of 27% over the previous year. The sustainability
characteristics of a bond are identified on the basis of
publicly available data. Details of the Sustainability Bond
Framework can be downloaded from the VIG website
(https://group.vig/sustainability-framework).
The “Responsible Investment” declaration defines the fol-
lowing exclusion criteria for specific sectors:
– Thermal coal: The coal exclusion criterion for new direct
investments has been in place since 2019, with stricter
limits applying from 2023. For example, VIG now ex-
cludes, among other things, new direct investments in
companies that generate more than 5% of their turnover
from thermal coal mining. The same applies to com-
panies that produce more than 10 million tonnes of ther-
mal coal per year. By the end of 2025, existing invest-
ments will be reduced by more than 50% compared to
2019, and will be eliminated completely by the end of
2035 at the latest.
– Unconventional oil and gas: New direct investments in
companies that generate more than 5% of their turn-
over from unconventional oil and gas are also excluded.
This includes, for example, income from oil sands or
shale gas.
The declaration also defines social exclusion criteria, such
as the exclusion of investments in companies that produce
or trade in banned weapons. Furthermore, the declaration
includes the Ten Principles of the UN Global Compact, in-
cluding human rights and labour rights, and environmental
protection and anti-corruption measures.
In the context of climate change adaptation and climate
change mitigation, the exclusion criteria mentioned in the
declaration for investments that violate the following prin-
ciples of the UN Global Compact relating to environmental
protection should be highlighted:
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Group Annual Report 2024
– Principle 7: Businesses should support a precautionary
approach to environmental challenges;
– Principle 8: undertake initiatives to promote greater en-
vironmental responsibility; and
– Principle 9: encourage the development and diffusion
of environmentally friendly technologies.
The application of the exclusion criteria of the declaration
generally applies to direct investments (with the exception
of securities issued by governments, federal states, regions,
municipalities and supranational organisations), including
such investments in consolidated investment funds of all
VIG (re)insurance companies.
In addition to the climate-related exclusion criteria presented
above, analyses are carried out for the VIG portfolio as a
whole in connection with a climate risk report. In this regard,
various scenario analyses are presented to show how com-
pany valuations could change in relation to transition risks
and physical risks. These analyses help to show, among other
things, whether the investment portfolio is aligned with the
global temperature pathway of the Paris Agreement targets.
DISCLOSURE REQUIREMENTS E1-3 – ACTIONS AND RESOURCES IN
RELATION TO CLIMATE CHANGE POLICIES
The following section addresses the actions and resources
in relation to the climate change policies presented in the
previous section. The significant CapEx amounts required
to implement the actions described cannot yet be disclosed
in the reporting year due to a lack of data. The aim is to
allocate the figures to the key performance indicators in ac-
cordance with Commission Delegated Regulation (EU)
2021/2178 and the relevant items in the financial state-
ments for subsequent reporting years.
Actions and resources in internal operations
The areas of energy consumption and the vehicle flee
t were
identified as the biggest decarbonisation levers in VIG’s
internal operations. Actions include, in particular, striving for
greater energy efficiency, switching to energy suppliers with
lower greenhouse gas intensity and expanding the fleet of
electric vehicles. There is also increasing investment in the
generation of electricity from renewable sources for self-
consumption.
As already described in chapter E1-1 “Transition plan for
climate change mitigation”, the key decarbonisation levers
and starting points for the continuous reduction of green-
house gas emissions in all areas of VIG were identified as
part of the transition plan for climate change mitigation de-
veloped in the reporting year. The transition plan for climate
change mitigation will be fleshed out over the next few years
as further actions are planned in the course of the imple-
mentation of the sustainability programme by the individual
companies. The necessary targets and the actions resulting
from the difference between the target and the projection
were developed in the course of the transition plan for
climate change mitigation on the basis of the “NGFS Net
Zero” climate scenario and the “Nationally Determined Con-
tributions (NDCs)” scenario from the range of “Hot house
world” scenarios. Detailed information on the transition plan
for climate change mitigation can be found in chapter ESRS
E1-1 “Transition plan for climate change mitigation”. For
details of the emission reductions resulting from the climate
change mitigation actions taken and planned, please refer
to chapter ESRS E1-6 “Gross Scopes 1, 2, 3 and Total
GHG emissions”.
Actions and resources in underwriting
In underwriting, the net-zero target will be achieve
d
through a variety of actions, such as the continuous ex-
pansion of the range of environmentally friendly and sus-
tainable insurance products. The underwriting portfolio will
also be balanced using the best-in-class approach. In
doing so, a stronger focus will be placed on the insurance
of sectors with lower emissions. In addition, it will be very
important to engage with policyholders in order to support
them on the path set out in the transition plan for climate
change mitigation.
Actions and resources in asset management
In order to achieve the net-zero target in the inves
tment
portfolio by 2050, greenhouse gas emissions will be given
greater consideration in future investment decisions. In
addition, opportunities for green investments in the invest-
ment portfolio are continuously evaluated. The primary
focus is on corporate bonds and equities and other non-
fixed-interest securities, for which the VIG insurance com-
panies are to set specific greenhouse gas reduction targets
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
83
at the local company level by 2030. VIG is not currently
focusing on emissions in connection with government bonds,
as these offer little scope for reducing emissions due to
restrictions relating to risk-bearing capacity and regulation.
Metrics and targets
DISCLOSURE REQUIREMENT E1-4 – TARGETS RELATED TO CLIMATE
CHANGE MITIGATION AND ADAPTATION
The following section details VIG’s targets related to climate
change mitigation and adaptation. In view of the selected
“Net Zero 2050” scenario, VIG has defined specific targets
for reducing greenhouse gas emissions by 2030 as an initial
milestone. Setting milestones is not only a legal requirement,
but also a business necessity to lay the foundation for a
successful transition to a sustainable future. VIG’s mile-
stones were formulated based on two guiding principles of
proper business conduct. The initial focus is on the key
parts of the VIG portfolio, which are presented in chapter
ESRS E1-1 “Transition plan for climate change mitigation”.
The extent to which VIG can take additional actions to
further support target achievement will also be examined.
The scenario selected for setting the climate target is
considered to be a reliable basis because the Network for
Greening the Financial System (NGFS), which provides this
scenario, is strongly supported by regulators, central banks
and scientific institutions. To ensure a solid basis for the tar-
get and to build the transition plan for climate change miti-
gation on the most reliable data quality, the decision was
made to use 2023 as the base year, as the greenhouse gas
emissions data collected for that year was of a good quality.
In addition, the law stipulates that the base year must not be
more than three years before the first reporting year. Further
information on the approach to target setting and the se-
lected climate scenario is presented in detail in chapter
ESRS E1-1 “Transition plan for climate change mitigation”.
In line with the climate scenario selected and the guiding
principles mentioned above, this transition plan for climate
change mitigation sets out emission reduction targets for
2030 for underwriting (corporate), asset management
(corporate bonds and equities and other non-fixed-interest
securities) and internal operations. In close cooperation with
the relevant departments of VIG Holding, the emission re-
duction targets were formulated on the basis of the NGFS
climate scenario and corresponding levers were derived as
starting points for possible greenhouse gas reductions. In
addition, the local insurance companies have developed
sustainability programmes that form the basis for future
emission reductions. This ensured that relevant stake-
holders were involved in setting the targets and ensuring
their achievability.
For the underwriting portfolio of retail customers, which, for
the purposes of reporting, is limited to the emissions of
motor vehicle insurance policies, no science-based targets
have been set for the time being as part of the transition
plan for climate change mitigation, despite the portfolio’s
significance, because the possibility of effectively tracking
and controlling such targets is very low. This is partly due to
the fact that the insurable “vehicle fleet” in a country is deter-
mined by the purchasing preferences of economic agents
and can therefore only be changed by regulatory or (fiscal)
policy measures. With motor vehicle insurance playing a
significant role in national economies by providing coverage
for strict liability and, as mentioned earlier, motor vehicle in-
surance generally being mandatory at a national level when
a vehicle is registered, along with an insurance acceptance
obligation in some cases, withdrawing from this insurance
segment is not an option for VIG. Despite the lack of a “hard”
target, VIG is still endeavouring to reduce emissions through
selected activities. VIG emissions generated by the motor
portfolio are in any case continuously recorded and are re-
ported in chapter ESRS E1-6 “Gross Scopes 1, 2, 3 and
Total GHG emissions” as part of the financed emissions
(Scope 3 category 15).
In the area of asset management, VIG has set a science-
based target for the portfolio of corporate bonds and equi-
ties and other non-fixed-interest securities. Although the
greenhouse gas emissions of the government bond port-
folio are significant and this portfolio accounts for around
30% of VIG’s total investments as of 31 December 2023,
VIG has only limited scope to reduce them. The reason for
this is that regulatory requirements in various jurisdictions
prescribe investments in government bonds. Furthermore,
the need to avoid currency gaps significantly limits the choice.
84
Group Annual Report 2024
In addition, VIG believes that not investing in government
bonds is undesirable for economic reasons. Despite these
limitations, a reference target has been derived as a guide
and the greenhouse gas footprint of the government bond
portfolio is continuously monitored with the aim of imple-
menting “soft” compensatory actions when needed and
available. In addition, the emissions from the government
bond portfolio are disclosed in chapter ESRS E1-6 “Gross
Scopes 1, 2, 3 and Total GHG emissions” under the financed
emissions. Greenhouse gas emissions in EU countries are
generally expected to decrease by 2030 and beyond, given
the commitments made by the states to contribute to the
achievement of climate targets. Emissions from VIG’s real
estate portfolio were not yet included in the transition plan
for climate change mitigation during its initial preparation in
the reporting year. However, the aim is to also include these
emissions in the target setting next year. Furthermore, in-
vestments of unit- and index-linked life insurance were not
included in the development of the reduction targets due to
a lack of direct control options for VIG in the portfolio.
A science-based interim target for 2030 has also been set
for internal operations, with the aim of achieving the net-
zero target by 2050. Compared to the financed or insur-
ance-associated emissions, VIG’s internal operations cause
negligible emissions, according to the result of the signifi-
cance analysis. However, this is the only area in which VIG
can directly influence emissions, which is why the target set
for Scope 1–3 emissions (whereby Scope 3 only applies to
air travel) is being pursued.
As explained in chapter ESRS E1-1 “Transition plan for cli-
mate change mitigation”, a reduction of VIG’s emissions
across all the spheres of impact already mentioned by just
under 30% by 2030 is necessary to ensure implementation
of the net-zero scenario by 2050. The reference target
values for the selected portfolios resulting from this reduc-
tion target for 2030 are shown in the table below in tonnes
of CO
2
equivalent (CO
2
e, taking into account all Kyoto gases
including NF3). The emissions categorised under Scope 3,
category 15, for the portfolios considered in the transition
plan for climate change mitigation from the spheres of im-
pact of underwriting (corporate) and asset management
(corporate bonds and equities and other non-fixed-interest
securities) as well as the Scope 1–3 emissions from VIG’s
internal operations (subject to the previously mentioned
limitation) for the year 2023 were used as the baseline data.
Selected portfolios GHG emission
baseline (2023)
Reference target
value 2030
in t CO
2
e
Underwriting Corporate 680,105
485,633
Asset Management (Corporate Bonds and
Equities) 1,218,310
869,874
Internal Operations
1)
38,066
27,027
Gross Scope 1 GHG emissions 18,136
Gross Scope 2 GHG emissions (market-
based) 18,619
Gross Scope 3 GHG emissions
(business travel)
1,311
1)
An overarching (market-based) reduction target was set for Scope 1-3 emissions for VIG’s internal
operations as part of of the transition plan for climate change mitigation, as the measures to
reduce emissions in the individual scopes have a holistic effect and their reduction is therefore
considered together.
As can be seen from the table above, a reduction of
194,472 tonnes of CO
2
e in emissions is required for the
corporate underwriting business in relation to Scope 3.15
in order to achieve the reference target value of 485,633
tonnes of CO
2
e. Compared to the previous year, a reduction
of 25,471 tonnes of CO
2
e (-4%) was achieved in the cor-
porate underwriting business in the reporting year. For the
asset management (corporate bonds and equities) portfolio,
around 350,000 tonnes of CO
2
e must be saved in relation
to Scope 3.15 in order to achieve the reference target value
of 869,874 tonnes of CO
2
e for this portfolio by 2030. In the
reporting year, 319,584 tonnes of CO
2
e (-26%) have already
been saved in this regard compared to the base year.
In order to achieve the required target in VIG’s internal op-
erations, market-based Scope 1–3 emissions need to be
reduced by 11,039 tonnes of CO
2
e by 2030, according to
the previous table. In the reporting year, a reduction of
2,154 tonnes of CO
2
e (-6%) in market-based emissions
was already achieved compared to the base year.
Details of the identified decarbonisation levers and actions
for each sphere of impact, which were defined in the course
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
85
of setting the reduction targets, are described in chapter
ESRS E1-1 “Transition plan for climate change mitigation”.
It is not yet possible to present the quantitative impacts and
total contributions to decarbonisation of the individual
actions in the reporting year. VIG plans to implement this
step by step in the coming years.
Differences in the presentation of emissions between
the transition
plan for climate change mitigation and the disclosed greenhouse
gas emissions
The presentation of emissions in the transition plan for cli-
mate change mitigation differs in some respects from the
disclosed greenhouse gas emissions, as different portfolios
are taken into account in some cases to enable better
tracking of the climate targets set for the transition plan for
climate change mitigation. More emissions are included in
the disclosure of VIG’s emissions in chapter E1-6 “Gross
Scopes 1, 2, 3 and Total GHG emissions” because a
broader database is used here. However, it is ensured that
all emissions reported in the transition plan for climate
change mitigation are also fully included in the disclosure
of VIG’s emissions. The differences in the database for the
individual spheres of impact are explained in more detail
below.
For underwriting (corporate), the same emissions are re-
corded and reported in both the transition plan for climate
change mitigation and the greenhouse gas balance sheet.
While the transition plan for climate change mitigation does
not currently cover the area of underwriting (retail) due to
the limited possibility of effective target tracking and control,
the GHG balance sheet does show the emissions from the
motor portfolio from this sphere of impact.
For asset management, the Scope 1–2 emissions of cor-
porate bonds and equities and other non-fixed-interest se-
curities were included for the transition plan for climate
change mitigation and the associated climate target.
Emissions from the real estate portfolio are to be included
in the targets in the coming year. In addition to the emis-
sions included in the transition plan for climate change
mitigation, the emissions disclosed in ESRS E1-6 “Gross
Scopes 1, 2, 3 and Total GHG emissions” also include all
emissions from government bonds and from property as
well as Scope 3 emissions of the remaining investment. The
disclosed emissions also include the emissions from in-
vestments of unit- and index-linked life insurance contracts
and from non-consolidated participations. Due to the low
level of investment in this asset class, investments are not
included in this transition plan for climate change mitigation.
Furthermore, there is currently no intention to include these
in the transition plan for climate change mitigation next year.
Although investments of unit- and index-linked life insur-
ance are part of the consolidated balance sheet, the invest-
ment decision and the investment risk lie with the customer.
However, VIG insurance companies offering unit-linked and
index-linked insurance products will enable low-carbon
unit-linked and index-linked alternatives for both new busi-
ness and existing contracts (reallocation).
In VIG’s internal operations, the insurance companies’ (ex-
cluding the three Ukrainian companies) emissions from the
base year were used to calculate VIG’s climate-related targets.
In addition, the emissions of some non-insurance companies
were included in the development of the emission reduction
target due to their relevance for the transition plan for climate
change mitigation. The additional non-insurance companies
include financial companies such as pension funds, asset
management, assistance and service companies that are
material to the insurance business. All insurance companies
included in the IFRS scope of consolidation (except for the
three Ukrainian companies) were included in the disclosure of
emissions in accordance with ESRS E1-6 “Gross Scopes 1,
2, 3 and Total GHG emissions”. The data basis of the tran-
sition plan for climate change mitigation therefore differs from
the presentation of emissions from the base year in ESRS E1-
6 “Gross Scopes 1, 2, 3 and Total GHG emissions”.
As explained in this chapter, all emissions reported in the
transition plan for climate change mitigation are also in-
cluded in the disclosure in accordance with ESRS E1-6
“Gross Scopes 1, 2, 3 and Total GHG emissions”. Consist-
ency between the targets and the greenhouse gas inventory
limits is thus ensured, as the additional emissions in the
greenhouse gas balance sheet fully integrate the emissions
included in the transition plan for climate change mitigation.
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Group Annual Report 2024
DISCLOSURE REQUIREMENT E1-5 – ENERGY CONSUMPTION AND MIX
The following table shows VIG’s energy consumption from
internal operations in the base year (2023) and in the
reporting year. As an insurance service provider, VIG is not
assigned to any high climate impact sector based on its
business activities. The high climate impact sector disclo-
sure requirements set out by the ESRS therefore do not
apply in this report.
Energy consumption and mix
2023
2024
Total fossil energy consumption (MWh) 126,529
125,551
Share of fossil sources in total energy consumption (%) 85.64%
84.81%
Consumption from nuclear sources (MWh) 7,215
5,103
Share of consumption from nuclear sources in total energy consumption (%) 4.88%
3.45%
Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal waste of biologic origin,
biogas, renewable hydrogen, etc.) (MWh)
27
46
Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh) 13,968
16,738
The consumption of self-generated non-fuel renewable energy (MWh) n. a.
593
Total renewable energy consumption (MWh) 13,995
17,377
Share of renewable sources in total energy consumption (%) 9.47%
11.74%
Total energy consumption (MWh) 147,738
148,030
Total fossil energy consumption fell by around 1% com-
pared to the previous year. Energy consumption from nu-
clear sources fell by 29% compared to the base year. At the
same time, total renewable energy consumption increased
by 24% compared to 2023. The total energy consumption
increased slightly compared to the previous year.
DISCLOSURE REQUIREMENT E1-6 – GROSS SCOPES 1, 2, 3 AND
TOTAL GHG EMISSIONS
The following table shows VIG’s greenhouse gas emissions
by Scope 1, 2 and 3 in accordance with the Greenhouse
Gas (GHG) Protocol in CO
2
equivalents (taking into account
all Kyoto gases, including NF3). The table includes emis-
sions generated directly by the Company (from heating
energy requirements, refrigerants and fuel consumption –
Scope 1) and the emissions caused indirectly by the Com-
pany (due to electricity, district cooling and district heating
consumption – Scope 2). In addition, the emissions caused
by employee business flights (Scope 3 – category 6) and
the financed emissions (Scope 3 – category 15) in the areas
of asset management (including real estate) and under-
writing (corporate and retail) are shown. The emissions of
those companies in which VIG holds a corresponding interest
(at equity companies) are also reported in Scope 3
– category 15. The databases of the International Energy
Agency (IEA), the Austrian Environment Agency, the
Department for Environment, Food and Rural Affairs
(DEFRA) and the German Association of the Automotive
Industry (VDA) were used to calculate greenhouse gas
emissions. The methodology follows the guidelines of the
GHG Protocol to ensure consistent and transparent emis-
sions calculations.
In addition to the greenhouse gas emissions for the re-
porting year, the emissions from the base year 2023 are
cited with regard to target achievement. Due to the CSRD
requirements, the VIG IFRS scope of consolidation, which
is identical for the 2024 consolidated non-financial report,
has expanded significantly. Therefore, the greenhouse gas
emissions from the 2023 Sustainability Report are no longer
comparable with the metrics in this report. In the base year
2023, only the greenhouse gas emissions of the VIG fully
consolidated insurance companies were recorded, whereas
in the reporting year 2024, fully consolidated non-insurance
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
87
companies are also included in the reporting scope. In order
to be able to show the same reporting scope for the base
year, a back-calculation approach was developed to ex-
trapolate the emissions for the non-insurance companies
for the year 2023 based on the number of employees.
Based on the number of employees (headcount), the insur-
ance companies accounted for 87% of emissions in 2023.
The remaining 13% are accounted for by the non-insurance
companies included in the scope of consolidation from
2024 onwards and were calculated by extrapolating the
emissions already recorded.
The energy metrics used as the basis for calculating the
CO
2
e emissions for VIG’s internal operations were reported
by the individual VIG companies included in the scope of
consolidation as of the reporting date of 31 December 2024,
with a projection approach used for missing data. Likewise,
the financed emissions from the investment portfolio include
the values as of 31 December 2024. Due to data availability,
the financed emissions from the real estate portfolio are
shown with a reporting date of 30 June 2024. Despite this
offset period, the calculation of the emissions data in the real
estate portfolio is based on full-year values. Past experience
has shown that the real estate portfolio as a whole is very
constant over the course of the year due to the long-term
orientation. The reporting date of 31 October 2024 was
used for the reporting of emissions from the underwriting
portfolio (corporate and retail). However, the early reporting
date has no material impact on the disclosure of the emis-
sions data. A description of the emission calculation can be
found below. In addition, the estimates made in calculating
the emissions data are discussed in detail in chapter ESRS
2 BP-2 “Disclosures in relation to specific circumstances”.
•
Gross Scope 1 GHG emissions
S
cope 1 includes direct greenhouse gas emissions. These
emissions come from sources directly owned or controlled by
VIG, such as emissions from the combustion of fossil fuels in
company-owned or controlled facilities (including on-site
heating systems) and the refill volume of refrigerants for air
conditioning systems in the reporting year. In addition, the fuel
consumption of the vehicle fleet was recorded. This refers
to the petrol or diesel consumption of company-owned or
leased vehicles.
•
Gross Scope 2 GHG emissions
T
he emissions recorded under Scope 2 represent the green-
house gas emissions resulting from the generation of pur-
chased energy. VIG reports the Scope 2 emissions for 2024
using both the location-based and market-based approach
according to the GHG Protocol. With the location-based ap-
proach, emissions are calculated based on the average emis-
sion factors of the regional energy supply, i.e. the local elec-
tricity and heating network. The market-based approach, on
the other hand, takes into account the specific greenhouse
gas emissions of the energy actually procured. The emission
factors of the International Energy Agency (IEA) were used to
calculate the Scope 2 emissions from electricity, which include
the emissions of carbon dioxide (CO
2
), methane (CH
4
) and
nitrous oxide (N
2
O).
•
Gross Scope 3 GHG emissions
T
he greenhouse gas emissions recorded under Scope 3 are,
by definition, a consequence of an undertaking’s activities
that originate from sources that are not owned or controlled
by the undertaking. Scope 3 emissions can be divided into
15 different categories.
In the reporting year, a significance analysis was carried out
in accordance with the requirements of the ESRS. This
analysis was used to evaluate which categories of Scope 3
emissions are relevant for VIG and must therefore be re-
corded and reported. The ESRS do not provide a detailed
approach for conducting such an analysis, but they do refer
to the GHG Protocol, which states that the undertaking’s
ability to influence emissions and the share of total Scope 3
emissions in the respective category are appropriate criteria
for assessing relevance.
The analysis performed in the reporting year used the emis-
sions and consumption data of the VIG insurance com-
panies included in the reporting scope in previous years, as
88
Group Annual Report 2024
well as additional data that were available in some cases
(including train travel and waste data), and extrapolated the
results to the scope of the fully consolidated companies.
This extrapolation was based on the number of employees
(in tonnes of CO
2
e per employee per category multiplied by
the total number of employees according to the ESRS).
The share of each respective category in the total Scope 3
emissions, as well as the extent to which they can be in-
fluenced and their industry relevance, were used as criteria
to identify the relevant Scope 3 categories. According to the
GHG Protocol, the degree of influence corresponds to the
undertaking’s potential to reasonably reduce emissions from
the respective Scope 3 category. With regard to industry
relevance, the GHG Protocol refers to sector-specific guide-
lines, which are not yet available for the financial industry. For
this reason, an industry comparison based on the sustain-
ability reporting of the Scope 3 emissions of six insurance
companies was carried out to assess industry relevance.
In the reporting year, the result of the significance analysis led
to the classification of Scope 3 emissions in category 3.15
(financed emissions) as relevant and, consequently, their
inclusion in the consolidated non-financial report. Although
the share of Scope 3.6 emissions from air travel in VIG’s
total Scope 3 emissions is less than one percent, green-
house gas emissions will continue to be reported as in the
past due to the assumed relevance for certain stakeholders.
The financed emissions (category 3.15) represent emis-
sions from the Company’s investment and underwriting
portfolio and account for around 97% of total Scope 3
emissions. Asset management and underwriting are VIG’s
core business activities, and VIG has levers and actions in
place to reduce emissions from the portfolio. Furthermore,
the industry comparison shows that Scope 3 emissions in
category 15 are generally the most relevant category of
greenhouse gas emissions for financial companies. The
procedure for calculating emissions from this category is
explained below for underwriting (corporate and retail) and
asset management (including real estate).
The remaining categories of Scope 3 emissions were not clas-
sified as material in the reporting year. Scope 3 category 1
“Purchased goods and services” is not relevant, since the
products purchased by VIG, as a service provider, are pri-
marily limited to paper products and the resulting emissions
are negligible. In addition, certain IT products were included
in the emissions calculation, although this has not changed
the relevance of this category. Similarly, emissions in cat-
egory 3.2 “Capital goods” are negligible, since the capital
goods purchased for VIG are limited to office infrastructure
(IT and furniture) and company vehicles. Category 3.3 “Fuel
and energy-related activities” is not material for VIG as a
non-manufacturing company. The upstream emissions
from energy and fuel consumption are low and account for
less than one percent of total Scope 3 emissions. As a fi-
nancial company without significant transport and logistics
activities, categories 3.4 and 3.9 “Transportation and dis-
tribution (upstream and downstream)” are not material for
VIG. Category 3.5 “Waste” covers those emissions that
arise from the disposal and treatment of waste by third
parties. As a non-manufacturing company, only household
waste with low greenhouse gas emissions is generated in
the office buildings of VIG. Emissions from category 3.7
“Employee commuting” were calculated on the basis of
data from Statistics Austria and a study by the Austrian
Automobile, Motorcycle and Touring Club (Österreichischer
Automobil-, Motorrad- und Touring Club — ÖAMTC) and
the Vienna University of Technology. The results of these
calculations show that the share of emissions is less than
one percent of total Scope 3 emissions and the category is
therefore not material for VIG. With regard to category 3.8
“Upstream leased assets”, the emissions resulting from
rented office space are already included in the Scope 1 and
Scope 2 emissions. The emissions of the VIG real estate
portfolio are included in Scope 3.15 (financed emissions) in
the reporting year. Category 3.10 “Processing of sold prod-
ucts” is also not material for VIG as a service company,
which is also confirmed by the industry comparison. Cat-
egories 3.11 “Use of sold products” and 3.12 “End-of-life
treatment of sold products” are also not applicable, since
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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VIG does not sell products, but services. Emissions resulting
from the sale of insurance products (“insurance-associated
emissions”) are reported in category 3.15. Category 3.13
“Downstream leased assets” is also not applicable to VIG
in the reporting year, as emissions from real estate owned by
VIG and rented to third parties are recorded in Scope 3.15
under the “real estate” asset class. Scope 3.14 “Franchises”
is not material, as VIG does not undertake any franchise
activities.
Calculation of financed emissions in underwriting (c
orporate)
Emissions in corporate underwriting are calculated on the
basis of the PCAF (Partnership for Carbon Accounting Finan-
cials) “economic-activity based emission estimation” approach,
as described in detail in chapter ESRS 2 BP-2 “Disclosures in
relation to specific circumstances”. The estimates of emissions
in this area are also presented in chapter ESRS 2 BP-2
“Disclosures in relation to specific circumstances”.
Calculation of financed emissions in underwriting (r
etail)
The financed emissions from retail underwriting include the
emissions from VIG’s motor portfolio. The area of building
insurance is excluded in the reporting year because no PCAF
standard was available at the time of reporting for the emis-
sions calculation. Please refer to chapter ESRS 2 BP-2 “Dis-
closures in relation to specific circumstances” for information
on the estimates made for emissions from the motor portfolio.
Calculation of financed emissions in asset managemen
t
A financial software solution is used to calculate the financed
emissions in the investment portfolio, which enables the in-
tegrated processing of portfolio management and risk
management data. The calculation logic of the financed
emissions from corporate bonds and equities and other non-
fixed-interest securities follows that of PCAF Part A. The
emissions data are obtained from a specialised financial
service provider and updated quarterly. The financed emis-
sions of corporate bonds and equities and other non-fixed-
interest securities are calculated on the basis of EVIC (Enter-
prise Value Including Cash), the investment and the corpo-
rate emissions. Where emissions data were not available,
the existing emissions data were used and scaled up ac-
cordingly for each asset class. In the area of government
bonds, the financed emissions are calculated in accor-
dance with the PCAF standard; data from a financial service
provider’s database is also used here. For further details re-
garding estimates in the area of asset management, please
refer to chapter ESRS 2 BP-2 “Disclosures in relation to
specific circumstances”.
Calculation of financed emissions in the real estate
portfolio
The whole building approach according to the PCAF standard
is used to calculate emissions from VIG’s real estate invest-
ments. With this approach, the total Scope 1 and 2 emissions
are considered for each building in the portfolio. A software
solution is used to collect the data needed to calculate real
estate-related emissions. This allows each VIG real estate in-
vestment to be displayed in detail and assigned its own
identification number. The data must be transmitted periodi-
cally by the holding companies and are consolidated at VIG
Holding level. Data from the energy performance certificates
and the respective floor areas and volumes of the properties
(to check the plausibility of the inputs from the energy perfor-
mance certificates) are particularly relevant for the calculation
of the financed emissions from the real estate portfolio. Emis-
sions from real estate investments for which no data were pro-
vided were extrapolated using approximations from an exter-
nal specialised financial service provider for NACE code 68.2
(Renting and operating of own or leased real estate).
In some cases, properties are used by the Company itself.
In these cases, it was necessary to distinguish the emis-
sions of the properties used for own use (electricity con-
sumption, heat and cooling from Scope 1 and 2) from those
of the properties used by third parties (Scope 3.15) or to
deduct them in Scope 3.15.
With regard to the estimates made, reference is made to
chapter ESRS 2 BP-2 “Information relating to specific
circumstances”.
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Group Annual Report 2024
Total VIG Scope 3 emissions are calculated based on a
combination of available activity data. In VIG’s internal op-
erations, emissions from air travel were partly calculated on
the basis of primary data using the exact flight kilometres
reported by the companies. The percentage of primary data
used to calculate emissions in internal operations in the re-
porting year is 33%. The emissions data in underwriting
(corporate and retail) were calculated entirely on the basis
of secondary data. In asset management, the emissions
were calculated largely based on data from an external
database provider, which also contains estimates. For this
reason, the share of emissions calculated with the aid of the
external database provider cannot be referred to as primary
data. The exact share of primary data used for the calcu-
lation in asset management cannot yet be disclosed in the
reporting year. For 4.88% of the emissions data for VIG’s
real estate portfolio, it was possible to refer to primary data.
The following table provides an overview of the greenhouse
gas emissions calculated in the reporting year, categorised by
scope. In addition, the emissions of the base year and the
percentage change compared to that year are shown. As
already described in chapter E1-4 “Targets related to climate
change mitigation and adaptation”, the scope of emissions for
individual portfolios included in the transition plan for climate
change mitigation differs from the presentation of emissions in
the table below. The milestones and the measurement of
progress in terms of emissions in accordance with the tran-
sition plan for climate change mitigation are therefore shown
in a separate table on page 92 for the sake of comparability.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
91
Retrospective
Base year
Reporting year
Change in %
2023
2024
Scope 1 GHG emissions
1)
Gross Scope 1 GHG emissions (tCO
2
eq) 19,490
18,538
-4.88%
Percentage of Scope 1 GHG emissions from regulated emission trading schemes (%) 0.00%
0.00%
Scope 2 GHG emissions
2)
Gross location-based Scope 2 GHG emissions (tCO
2
eq) 19,301
21,195
9.81%
Gross market-based Scope 2 GHG emissions (tCO
2
eq) 19,755
17,678
-10.51%
Significant scope 3 GHG emissions
Total Gross indirect (Scope 3) GHG emissions (tCO
2
eq)
6) Business traveling 1,101
1,345
22.16%
15) Investments
Underwriting (Corporate) 680,105
654,634
-3.75%
Underwriting (Retail) 1,911,887
1,956,328
2.32%
Asset Management (Corporate Bonds and Equities and other non-fixed-interest securities)
3)
13,343,356
10,603,806
-20.53%
Asset Management (Government Bonds) 2,979,043
2,375,284
-20.27%
Asset Management (Real Estate)
4)
111,064
102,847
-7.40%
At equity companies
5)
n. a.
3,714
n. a.
Total GHG emissions
Total GHG emissions (location- based) (tCO
2
eq) 19,065,347
15,737,691
-17.45%
Total GHG emissions (market- based) (tCO
2
eq) 19,065,801
15,734,174
-17.47%
1)
The biogenic greenhouse gas emissions from the combustion or biodegradation of biomass (Scope 1) amount to 592 tCO
2
e in the reporting year.
2)
The biogenic greenhouse gas emissions from the combustion or biodegradation of biomass (Scope 2) amount to 7,717 tCO
2
e (location-based) and. 6,036 tCO
2
e (market-based).
3)
The emissions from asset management (corporate bonds and equities and other non-fixed-interest securities) shown in the table are not comparable with the emissions from the transition plan for climate
change mitigation, as Scope 3 emissions are not taken into account in this plan. The GHG emissions from asset management excluding Scope 3 amount to 1,545,956 tCO
2
e in the reporting year.
4)
Greenhouse gas emissions from properties rented within VIG were not recorded in the required data quality in the reporting year. This resulted in double counting of emissions in Scope 1 and 2 and in the real
estate portfolio in Scope 3.15. Efforts are underway to improve data quality.
5)
The base year emissions of at equity companies are not disclosed, as these companies were not yet included in VIG’s reporting scope in 2023, and a retrospective calculation of the emission data was not
possible due to missing energy metrics.
As can be seen in the table, the Gross Scope 1 GHG emis-
sions fell by 5% compared to the previous year, which is
due in part to the reduction in total fossil energy consump-
tion in VIG as shown in chapter E1-5 “Energy consumption
and mix”. Gross Scope 2 GHG emissions (location-based)
increased by 10% year on year. This is partly due to the fact
that the calculation of location-based emissions is based on
the average emission factors of the local energy supply and
an increase in the purchase of energy from renewable
sources is not directly reflected in the location-based
greenhouse gas balance sheet. Gross Scope 2 GHG
emissions (market-based), which take into account the
increase in renewable energy sources, decreased by 11%
c
ompared to 2023. There was a 22% increase in Gross
Scope 3 GHG emissions caused by business travel by plane
in internal operations. Overall, the location-based Scope 1–3
emissions from VIG’s internal operations increased by 3%,
whereas the market-based Scope 1–3 emissions from
internal operations decreased by around 7%. When com-
paring emissions with the previous year, however, it should
be noted that the emission values for the base year 2023
for all non-insurance companies of VIG are based on es-
timates, since these companies are new to the VIG re-
porting scope and the energy metrics were not yet being
collected in the base year.
Underwriting (corporate) saw a 4% reduction in insurance-
associated emissions compared to the previous year. This
92
Group Annual Report 2024
reduction is partly due to the lower industry-weighted emis-
sion intensities of the external data provider used to calcu-
late the emissions. Despite the growth of the portfolio over
the last year, a lower emissions total was recorded in the
reporting year.
In underwriting (retail), emissions from the motor portfolio
increased by 2%. This can partly be explained by the fact
that the number of vehicles included in the calculation that
have motor third party liability insurance (in accordance with
the PCAF standard) has increased by around 7%. In terms
of average emissions per vehicle, however, a reduction of
4% was recorded in the reporting year compared to the
previous year.
In asset management, there was a reduction of 21% in
emissions from corporate bonds and equities and other
non-fixed-interest securities compared to the previous year.
This reduction is due in part to the fact that bonds from
companies that are frequent issuers have expired and
allocations have been made to other issuers in accordance
with the ESG investment strategy. The increase in the de-
gree of coverage is another influencing factor. Investee
companies are increasingly publishing their issue data, and
the proportion of estimated data has been significantly
reduced as a result. Furthermore, the proportion of com-
panies with particularly high greenhouse gas emissions has
decreased. In addition, there has been an improvement in
the quality of the data provided by the external data provider
Government bond emissions also fell by 20% compared to
the previous year. This reduction was mainly due to changes
in the underlying data from the external data provider, which
led to lower absolute emissions being recorded for high-
emission countries. Emissions from the real estate portfolio
decreased by around 7% compared to the previous year.
This decline was due in part to targeted individual actions
taken as well as to the slight increase in the proportion of
calculated emissions compared to the previous year, which
meant that fewer estimated emissions were required. This
improvement in data quality allowed emissions to be meas-
ured more accurately, resulting in lower emissions.
Overall, a reduction of 17% in total greenhouse gas emis-
sions (both location-based and market-based) was record-
ed compared to the base year. Over the coming years, there
is expected to be a further reduction in greenhouse gas
emissions as a result of the targeted actions in the transition
plan for climate change mitigation and additional future
initiatives.
The following table shows the portfolios selected as part of
the transition plan for climate change mitigation and their
emissions in the base year and the reporting year. In
addition, the milestones for 2030 in accordance with the
transition plan for climate change mitigation and the current
progress towards achieving them are presented.
Portfolios in accordance with the Transition Plan for
climate change mitigation
Base year
2023
Reporting year
2024
Change in %
Target year
2030
Annual % target /
Base year
Scope 1-3 GHG emissions (internal operations) (tCO
2
e) 38,066
35,912
-5.66%
27,027
19.51%
Scope 3 GHG emissions
15) Investments
Underwriting (Corporate) (tCO
2
e) 680,105
654,634
-3.75%
485,633
13.10%
Asset Management (Corporate Bonds and Equities and
other non-fixed-interest securities) (tCO
2
e) 1,218,310
898,726
-26.23%
869,874
91.72%
As already described in chapter E1-4 “Targets related to
climate change mitigation and adaptation”, an overarching
reduction target has been set for Scope 1–3 emissions from
internal operations. In the reporting year, a reduction of 6%
was achieved compared to the previous year. Around 20%
of the planned emission reductions in internal operations
were achieved in the reporting year in relation to the 2030
milestone.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
93
As already described, a 4% reduction in emissions was
recorded in the underwriting (corporate) sphere of impact.
In terms of the milestone, target achievement of 13% is
therefore guaranteed in the reporting year. When comparing
emissions from the underwriting (corporate) portfolio, it
should be noted that the portfolio and thus the basis for
calculating emissions may vary from year to year.
There was a 26% reduction in the emissions from corporate
bonds and equities and other non-fixed-interest securities
in the asset management sphere of impact recorded in the
transition plan for climate change mitigation. With regard to
the milestone set for 2030, 92% of the planned emission
reductions were already achieved in the reporting year.
On the basis of the actions set out in the transition plan for
climate change mitigation, emissions will be gradually and
sustainably reduced in the coming years.
GHG intensity based on net revenue
The following table summarises the intensity of VIG’s green-
house gas emissions. VIG’s total greenhouse gas emissions
are shown in relation to the revenue disclosed in the consoli-
dated financial statements. The insurance service revenue –
issued business, rental income from investment property and
other income (service turnover) were recorded as revenue.
GHG intensity per net revenue
(according to ESRS)
2023
2024
Change
t CO
2
e/EUR
t CO
2
e/EUR
in %
Total GHG emissions (location-
based) per net revenue 0.0017
0.0013
-25.90%
Total GHG emissions (market-
based) per net revenue
0.0017
0.0013
-25.92%
The following table shows the reconciliation of the relevant
revenue to the corresponding items in the consolidated
balance sheet.
2023
2024
Type of turnover used to calculate GHG intensity Income statement item
Reference to Consolidated
Financial Statements
Amount (EUR '000)
Amount (EUR '000)
Insurance turnover
Insurance service revenue –
issued business Page 122 10,921,825
12,138,477
Real estate income (from rented properties of insurance
companies as well as real estate holding companies)
Rental income from investment
property Page 183 194,758
214,139
IFRS 15 turnover from non-insurance companies
Other income (other revenue from
services) Page 197 121,222
166,429
Total net revenue 11,237,805
12,519,045
SOCIAL INFORMATION
ESRS S1 OWN WORKFORCE
The following section describes the requirements ass
ociated
with ESRS 2.
Strategy
DISCLOSURE REQUIREMENT RELATED TO ESRS 2 SBM-2 –
INTERESTS AND VIEWS OF STAKEHOLDERS
VIG takes into account the interests of its employees, which
are determined directly by surveys, meetings and consulta-
tions. Feedback on working conditions, safety and well-
being is taken into account in decision-making to ensure
that impacts, risks and opportunities are properly managed.
In addition, employees and, where applicable, their repre-
sentatives are regularly informed about important company
decisions. In cooperation with non-governmental organi-
sations, VIG incorporates the perspectives of vulnerable
groups and minorities in initiatives and keeps up to date on
challenges and procedures for promoting diversity, equality
and inclusion (for further information, see ESRS S1-2
“Processes for engaging with employees and employees’
representatives about impacts”). These exchanges enable
VIG to stay up to date on emerging challenges and existing
94
Group Annual Report 2024
practices, and thus develop programmes and policies that
promote diversity, equality and inclusion within the work-
force. A fundamentally respectful approach creates a sup-
portive, inclusive environment that is consistent with ethical
practices and respect for human rights.
This commitment is in line with VIG’s commitment to ethical
principles and underpins the management of both positive
and negative impacts on the workforce. The following prin-
ciples of the UN Global Compact are supported in connec-
tion with own workers:
Human Rights
– Principle 1: within their sphere of influence, businesses
should support and respect the protection of interna-
tionally proclaimed human rights and
– Principle 2: make sure that they are not complicit in hu-
man rights abuses.
Labour
– Principle 3: businesses should uphold the freedom of
association and the effective recognition of the right to
collective bargaining,
– Principle 4: the elimination of all forms of forced and
compulsory labour,
– Principle 5: the effective abolition of child labour and
– Principle 6: the elimination of discrimination in respect
of employment and occupation.
DISCLOSURE REQUIREMENT RELATED TO ESRS 2 SBM-3 –
MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR
INTERACTION WITH STRATEGY AND BUSINESS MODEL
VIG’s own workforce includes both people who are in an
employment relationship (“employees”) and non-employees.
Employees consist of staff in both office and field staff roles.
Non-employees are individuals who do not have a direct em-
ployment relationship with VIG but provide work either as
self-employed people or through third-party undertakings.
Flexible work models, training and development pro-
grammes, family-friendly, health- and diversity-promoting
initiatives, and fair remuneration that largely exceed legal
and/or collective agreement requirements are provided for
VIG’s own workforce. Training measures cover topics such
as the Code of Business Ethics, anti-corruption and data
protection. Implementing a diversity strategy in internal op-
erations creates opportunities that both strengthen VIG’s
reputation and attractiveness as an employer and promote
team spirit and inclusiveness. This is achieved by ensuring
equal opportunities for all, regardless of personal background,
in line with the requirements of the Company’s own workforce.
Impact, risk and opportunity management
DISCLOSURE REQUIREMENT S1-1 – POLICIES RELATED TO OWN
WORKFORCE OF THE COMPANY
Policies to manage material impacts, risks and oppor
tunities (IROs)
Binding documents have been established in VIG to man-
age the material impacts, risks and opportunities identified
for its own workforce, e.g. the Code of Business Ethics and
documents on the topics of remuneration, fit & proper, and
data protection (see MDR-P “Policies adopted to manage
material sustainability matters”). Policies relating to the
protection of whistleblowers are described in G1-1 “Busi-
ness conduct policies and corporate culture”. In addition to
these, VIG predominantly adopts policies and comprehen-
sive actions to support health and safety in the workplace,
adapting them to the specific country where necessary. By
continuously improving these practices, VIG creates a sup-
portive, inclusive and fair working environment. These prac-
tices are regularly reviewed to ensure they remain relevant
and effective in addressing emerging risks and opportun-
ities in the workforce.
Diversity is a high priority at VIG and is a core value in the
VIG mission statement and part of the HR strategy. By
applying diversity management to all employees, VIG
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
95
expects to generate corresponding diversity in the can-
didate pool for successor planning in the long term. It is
applicable throughout the Group and at the same time
enables flexible, local implementation. At Holding level, it
focuses on the criteria of gender, generations and
internationality.
– Gender: ensure equal gender treatment in all areas (career
and development options, benefits and income, etc.)
– Generations: use mixed-age teams and take into ac-
count the various phases of life to develop full potential
(generation-appropriate offers and support in the var-
ious phases of life, learn from one another, life balance,
fair recruitment)
– Internationality: Group-wide exchange of know-how
(local expertise), collaborative learning, use of the inter-
nal Group job market and ensuring an appropriate mix
of people from different countries within VIG
The criteria of gender, generations and internationality are
also taken into account when new Supervisory Board Mem-
bers are proposed for election at General Meetings. Further-
more, VIG embraces the concept of local entrepreneurship,
thereby also strengthening internationality at the Managing
Board level of VIG. The VIG Holding Diversity Advisor
advises local VIG companies on diversity management is-
sues as needed.
Flexibility in how actions are implemented locally gives rise
to a broad spectrum of actions and solutions. They range
from diversity training to mentoring programmes to promote
learning across generations and nationalities. Numerous
other VIG actions and projects can be found in the “best
practice book” created by the VIG Holding Diversity Advisor.
This book is intended for internal use and acts as a source
of inspiration for learning and information-sharing through-
out the Group. The actions described in the book include
training and awareness-raising on the importance of diver-
sity. For example, it mentions workshops for managers on
managing cultural differences, as well as e-learning courses
for all employees that are designed to promote under-
standing and acceptance of diversity.
Human rights commitment
VIG is committed to upholding high standards of ethical
conduct and human rights. As a signatory to the UN Global
Compact, VIG is committed to the ten principles associated
with it (see chapter ESRS 2 “SBM-1 – Strategy, business
model and value chain”), which include the protection of
human rights, fair labour practices, environmental sustain-
ability and anti-corruption. Each year, VIG publishes the
consolidated non-financial report on its website as part of
its commitment to the UN Global Compact.
Human rights are also enshrined in the Code of Business
Ethics, which underpins VIG’s commitment to fair and
ethical business practices. In its internal operations, VIG
emphasises good working conditions and the recognition
of employee rights, thereby promoting a culture of respect
and fairness. Potential human rights violations can be re-
ported through the locally established channels and to VIG
Holding. Further details on the internal reporting system are
described in ESRS 2 MDR-P “Policies adopted to manage
material sustainability matters”.
VIG is committed to upholding international human rights
and states its opposition to forced and child labour and dis-
crimination in its Code of Business Ethics. In addition, VIG
respects the rights of employees, such as freedom of
assembly, collective agreement negotiations and the elec-
tion of representatives. The relevant legal provisions in the
respective countries apply as minimum standards for VIG.
Workplace accident prevention actions
The companies of VIG ensure a safe and healthy workin
g
environment for their employees. Depending on the local
circumstances, the companies have either adopted a
workplace accident prevention policy that incorporates the
96
Group Annual Report 2024
main principles and guidelines for safety or introduced spe-
cific accident prevention actions. Both approaches take into
account the size, nature and complexity of the respective
companies and show that VIG is consistently committed to
the well-being of its employees and places a high value on
continuously improving safety practices in the workplace.
Policies aimed at the elimination of discrimination
VIG is committed to a fair working environment, and t
his is
reflected in its internal requirements. These commitments
are anchored in the Code of Business Ethics, the Group
Policy Fit & Proper and the diversity strategy. For more de-
tails, see chapter MDR-P “Policies adopted to manage
material sustainability matters”.
To prevent and address discrimination, the majority of VIG
companies have established confidential reporting mecha-
nisms, allowing employees to report concerns related to
discrimination or harassment through secure channels. In
addition, some companies offer voluntary training on dis-
crimination and harassment.
At the company level, HR and/or Compliance departments
are responsible for enforcement, ensuring adherence to
both internal guidelines and legal requirements.
DISCLOSURE REQUIREMENT S1-2 – PROCESSES FOR ENGAGING
WITH EMPLOYEES AND EMPLOYEES’ REPRESENTATIVES ABOUT
IMPACTS
Engaging with own workers and workers’ representativ
es
It is important to VIG that its employees are actively involved
in decisions and activities that impact them. Workers’ rep-
resentatives are consulted appropriately at companies that
have them. Employees can, for example, be involved in the
planning, implementation and review of actions. Partici-
pation opportunities include (online) events, surveys and
feedback in direct contact with employees, employee inter-
views and focus groups. There are also various feedback
mechanisms, such as annual appraisals, idea management
systems, onboarding actions and exit interviews, which can
vary depending on local needs. These mechanisms enable
comprehensive and ongoing input from employees at dif-
ferent levels of the organisation.
The responsibility for ensuring that employee engagement
takes place lies primarily with the Human Resources de-
partment in most VIG companies. In the final instance,
responsibility lies with the top management level.
VIG continuously assesses the success of its employee
engagement efforts by analysing feedback from employee
surveys and interviews. In 2024, around 15,000 employees
were surveyed by Great Place to Work
©
. 27 fully consoli-
dated insurance companies including branch offices, two
pension funds and five other companies from the areas of
IT, Asset Management and Assistance, among others,
participated in the survey. Employees were asked about
credibility, respect, pride, team spirit and fairness. The re-
sults of these assessments inform decision-making pro-
cesses, leading to the further development of existing poli-
cies and the introduction of new initiatives that better ad-
dress employee needs. Regular reviews ensure that in-
clusion procedures are effective to drive positive change.
Vulnerable groups and minorities
Some VIG companies work with non-governmental or-
ganisations (NGOs), social enterprises and non-profit or-
ganisations that promote the rights of vulnerable groups
and minorities, such as myAbility (support for persons with
disabilities), Pride Biz Austria and connecting people. These
partnerships enable VIG to stay informed about best prac-
tices and emerging issues. Training on diversity, equality
and integration is also offered. The aim of this training is to
promote an integrative workplace culture and enable em-
ployees to actively contribute to a fair working environment.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
97
DISCLOSURE REQUIREMENT S1-3 – PROCESSES TO REMEDIATE
NEGATIVE IMPACTS AND CHANNELS FOR EMPLOYEES TO RAISE
CONCERNS
Processes to remediate negative impacts
VIG promotes the physical and mental health of its em-
ployees and also offers flexible working time models and
family-friendly initiatives. Depending on the local circum-
stances, sports programmes, psychosocial support and
cooperations with fitness providers are available. In addition
to actions to improve well-being, great emphasis is also
placed on a culture of open communication, which includes
the opportunity for employees to express their questions
and concerns via various channels. If the concerns involve
a possible violation of the principles of the Code of Business
Ethics, they can be reported to local compliance officers via
the local channels based on the responsibilities defined in
the respective Group companies, as well as via other means.
In addition, employees can report concerns relating to
potential violations of regulatory requirements to Com-
pliance (incl. AML) of VIG Holding within the framework of
the internal whistleblowing channels set up at VIG Holding
level. There are also whistleblowing policies at local level,
where provided for by law. For more information on whistle-
blowing, see the ESRS MDR-P “Policies adopted to man-
age material sustainability matters” and ESRS G1-1 “Busi-
ness conduct policies and corporate culture”.
DISCLOSURE REQUIREMENT S1-4 – TAKING ACTION ON MATERIAL
IMPACTS AND APPROACHES TO MANAGING MATERIAL RISKS AND
PURSUING MATERIAL OPPORTUNITIES RELATED TO OWN
WORKFORCE, AND EFFECTIVENESS OF THOSE ACTIONS AND
APPROACHES
Plans and actions adopted to address material IROs
VIG is dedicated to managing material impacts on em-
p
loyees by implementing appropriate actions in its com-
panies. To support the implementation of health, safety and
well-being initiatives, VIG designates teams and depart-
ments responsible for developing and overseeing these
programmes, which work collaboratively with external con-
sultants and internal stakeholders to ensure the pro-
grammes are well-resourced and effective in mitigating risks.
Funds are available in particular for issues such as mental
health care, programmes to strengthen an appropriate
leadership culture and initiatives for diversity, equality and
inclusion. Many local VIG companies invest in both in-house
services — such as healthcare professionals — and ex-
ternal partnerships to provide comprehensive support for
employees. They also invest in training programmes and
personnel development initiatives to strengthen leadership
skills and ensure that employees acquire the skills they need
to drive their career development. VIG employees can par-
ticipate in international training and development pro-
grammes. Depending on local requirements and possibil-
ities, the local companies provide additional opportunities
for employees.
Regular employee surveys and feedback mechanisms are
a key source of information for assessing the effectiveness
of these actions, and the majority of local companies allo-
cate resources to evaluate and deduct further steps.
Actions to prevent or mitigate potential negative im
pacts on
employees
In many VIG companies, employees are offered compre-
h
ensive professional development programmes. For key
players and employees in key functions, there is also the
opportunity to complete special training courses. Manage-
ment programmes place a special focus on the promotion of
existing and future leadership talents within the organisation.
In order to assess the effectiveness of these initiatives or to
assess the impact and success of these actions, most VIG
companies rely on surveys such as those conducted by
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Group Annual Report 2024
Great Place to Work©. The results demonstrate VIG’s com-
mitment to being a responsible employer and offering a re-
spectful working environment. Employees’ suggestions are
also analysed in detail and serve as the basis for the com-
pany’s continuous development.
Identification of suitable actions in response to negative impacts
VIG takes a structured approach to identifying appro
priate
actions in response to both actual and potential negative
impacts on its workforce. Many local companies regularly
provide health and safety reviews to identify potential risks
and proactively address them. When incidents occur, the
causes are identified and resolved. In addition, some
companies use the services of external health and safety
consultants, who carry out independent assessments and
make recommendations.
Several VIG companies also use employee surveys to
obtain feedback on both actual and potential negative im-
pacts on health, safety and well-being. Based on the find-
ings from audits, surveys and incident reports, action plans
are developed. Furthermore, many companies have estab-
lished incident reporting systems that allow employees to
confidentially report health and safety concerns. In addition
to regular meetings, cross-functional working groups are
convened as required. These groups develop solutions and
use the expertise of all departments to implement appro-
priate action plans.
Ensuring that VIG practices do not contribute to neg
ative impacts
The aim of VIG is to ensure that internal requirements do
not cause or contribute to any material negative impacts on
its own workforce. In this context, all VIG companies are
obliged to protect the personal data of their employees in
accordance with the applicable data protection regulations.
Data access is restricted to authorised personnel and there
are security actions (see chapter ESRS 2 MDR-P “Policies
adopted to manage material sustainability matters”) to pro-
tect against unauthorised access or misuse of employee data.
Planned and ongoing actions to mitigate material ris
ks and pursue
opportunities
VIG has implemented a range of actions to mitigate poten-
tial risks arising in its own business operations. These are
described under “Plans and actions adopted to address
material IROs”. VIG companies also strictly adhere to
relevant labour laws and regulations to mitigate potential
legal and reputational risks.
In order to achieve a large and diverse pool of talent and to
ensure inclusion and equal opportunities regardless of per-
sonal background, VIG uses modern recruitment methods.
This includes actions such as recruitment via social media
and the implementation of diagnostic procedures to ensure
an objective selection process. Training on unconscious
bias is also provided for recruitment teams and managers
to improve objectivity. Some local companies have also set
up recruitment platforms and actively participate in job fairs
and similar events. With a view to pursuing opportunities
that benefit employees, VIG promotes career advancement
opportunities for all employees, for example through men-
toring programmes, training courses and further develop-
ment initiatives.
Metrics and targets
DISCLOSURE REQUIREMENT S1-5 – TARGETS RELATED TO
MANAGING MATERIAL NEGATIVE IMPACTS, ADVANCING POSITIVE
IMPACTS, AND MANAGING MATERIAL RISKS AND OPPORTUNITIES
The objectives of the VIG Human Resources strategy, which
relate to ESRS S1 “Own workforce”, include the perception
of VIG as a diverse, innovative, learning organisation. In ad-
dition, managers should ensure a positive working environ-
ment and support employees with future challenges. The
strategy also aims to further strengthen the feedback cu-
lture. Employee motivation and commitment are important
for the long-term success of a company. VIG therefore
strives to be an attractive employer who promotes equal
opportunities, employee centricity and diversity. In addition,
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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VIG supports its employees in obtaining the skills (personal
and professional) required for their work through further
training. Many training programmes are designed locally by
the respective companies so that they can be tailored as
much as possible to existing employee needs. Actions that
will best support individual employees in their development
are usually discussed in regular target & talent talks led by
HR departments. The proportion of employees who have
taken part in this is shown under S1-13 “Training and skills
development metrics”.
DISCLOSURE REQUIREMENT S1-6 – CHARACTERISTICS OF THE
UNDERTAKING’S EMPLOYEES
The following metrics provide information on the gender
distribution and the total number of employees by contract
type, gender and region (basis: head count).
Employees by gender
Gender Number of employees (head count)
Male 13,155
Female 21,286
Other
1)
0
Total number of employees 34,441
1) Gender according to the employees' own statements. The gender ‘other’ is not shown in the
other tables.
Employees by contract type and gender
Female
Male
Total
Head count
Total number of employees 21,286
13,155
34,441
Number of permanent employees 19,654
12,401
32,055
Number of temporary employees 1,632
754
2,386
Number of non-guaranteed hours employees 439
209
648
Employees by contract type and region
Austria
Czech Republic
Poland
Extended CEE
Special Markets
Group Functions
Total
Head count
Total number of employees 6,451
6,321
3,303
12,984
4,635
747
34,441
Number of permanent employees 6,179
5,551
3,003
12,042
4,585
695
32,055
Number of temporary employees 272
770
300
942
50
52
2,386
Number of non-guaranteed hours employees 0
244
366
23
0
15
648
Fixed-term contracts are only used in certain situations,
such as parental leave replacements or, where needed, for
projects. There are no seasonal employees. Due to national
circumstances, some VIG companies employ people with-
out guaranteed working hours. These employees are as-
signed to different areas of the company as required, in-
cluding for administrative support. They are mainly student
employees and temporary workers. During the reporting
period, 7,400 employees left a company of VIG.
Employee turnover based on the head count as of 31 De-
cember 2024 is 21%. This figure also includes retirement
and transfers within VIG, for example.
DISCLOSURE REQUIREMENT S1-7 – CHARACTERISTICS OF NON-
EMPLOYEES IN THE UNDERTAKING’S OWN WORKFORCE
A total of 7,315 non-employees work for VIG. The data were
collected by head count as of 31 December 2024, and no
average calculation was performed over the required period.
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Group Annual Report 2024
Non-employees work predominantly as self-employed people
and to a lesser extent through third-party undertakings.
Self-employed people are considered to be non-employees
if they work independently, determine their own working
time, are not organised as a legal entity, work exclusively for
VIG brands and – in the case of self-employed insurance
agents – have dfs carried out transactions for a company of
VIG Group during the reporting period.
Persons employed by a third-party undertaking are consid-
ered to be non-employees if they work under the direction
or instruction of a VIG company. This includes, in particular,
persons who take on regular tasks from permanent em-
ployees at the same location, for example as a substitute
during an absence.
DISCLOSURE REQUIREMENT S1-8 – COLLECTIVE BARGAINING
COVERAGE AND SOCIAL DIALOGUE
In total, 34% of employees are covered by collective bar-
gaining agreements. The employees that are not covered
by a collective bargaining agreement work in companies in
which collective bargaining agreements are not applicable
due to national circumstances. These countries, for ex-
ample, have qualification-based minimum wages or internal
company pay scales.
In many companies, the top management level is excluded
from agreements regulated under collective bargaining
agreements. Since the segment allocation includes both
EEA and non-EEA countries, the country is shown in the
following table.
Information on collective bargaining coverage and so
cial dialogue
Collective Bargaining Coverage Social dialogue
Coverage Rate Employees - EEA Employees - Non-EEA Workplace representation (EEA only)
(for countries with >50 empl. representing >10%
total empl.)
for regions with >50 empl. representing >10%
total empl.)
(for countries with >50 empl.
representing >10% total empl.)
0–19% Czech Republic Türkiye Czech Republic
20–39%
40–59%
60–79%
80–100% Austria Austria
DISCLOSURE REQUIREMENT S1-9 – DIVERSITY METRICS
The top management levels were defined as the members
of the Supervisory Board, the members of the Managing
Board and the first management level below the Managing
Board members (Board-1) of the insurance companies. The
following table shows the gender distribution at these levels
of the insurance companies. With regard to the diversity
metrics of VIG Holding, see chapter GOV-1 “The role of the
administrative, management and supervisory bodies”.
Supervisory Board Managing Board Board-1
Number
in %
Number
in %
Number
in %
Male 108
78.83%
109
77.86%
482
56.71%
Female 29
21.17%
31
22.14%
368
43.29%
The following table shows the distribution of all VIG em-
ployees by age group:
Employees 2024
Head count
under 30 years old 6,838
30-50 years old 18,875
over 50 years old 8,728
DISCLOSURE REQUIREMENT S1-10 – ADEQUATE WAGES
VIG ensures that all its employees receive adequate wages
and that the local minimum requirements (statutory mini-
mum wage, collective bargaining agreements etc.) are
always met or exceeded. Required qualifications and the
duties and responsibilities of the position in question are all
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
101
taken into account when setting remuneration levels. The rele-
vant policies are regularly reviewed and, if necessary, adapted.
DISCLOSURE REQUIREMENT S1-11 – SOCIAL PROTECTION
VIG guarantees social protection for all employees in
accordance with the locally applicable legal provisions. This
includes protection against loss of income due to sickness
or unemployment from the start of employment with VIG,
due to employment injury and acquired disability, and due
to parental leave and retirement. The protection is guar-
anteed subject to applicable law and taking into account
any applicable collective bargaining agreements in the re-
spective country.
DISCLOSURE REQUIREMENT S1-12 – PERSONS WITH DISABILITIES
As part of VIG’s commitment to diversity and inclusion, the
percentage of persons with disabilities in the workforce is
reported. As of 31 December 2024, 2% of the workforce is
designated as persons with disabilities in accordance with
local regulations. VIG is committed to creating an inclusive
working environment that takes into account the needs of
all employees and ensures equal opportunities for persons
with disabilities.
DISCLOSURE REQUIREMENT S1-13 – TRAINING AND SKILLS
DEVELOPMENT METRICS
As part of its commitment to the growth and further de-
velopment of all employees, VIG attaches great importance
to regular target and talent talks. These are essential to align
individual objectives with the strategic objectives and to
provide valuable mutual feedback.
The following tables show the average number of training
hours per employee and the percentage of employees who
have participated in performance and career development re-
views (broken down by gender and employment category).
Average hours of training per employee 2024
Number
Gender
Male 39.45
Female 32.01
Employment category
Office staff 23.92
Field staff 45.94
Employees who have participated in regular
performance and career development reviews
2024
in %
Gender
Male 78.74
Female 76.82
The difference in training hours between employees in sales
and administration is mainly due to the legal requirements
of the Insurance Distribution Directive (IDD), which stipu-
lates a certain level of training for persons involved in insur-
ance distribution.
DISCLOSURE REQUIREMENT S1-14 – HEALTH AND SAFETY
METRICS
In line with its commitment to the well-being of its em-
ployees, VIG ensures that the majority of its employees are
protected by a health and safety management system that
complies with legal requirements and recognised standards.
The data were collected as of 31 December 2024 and no
average calculation was performed over the required period.
99% of employees and 3% of non-employees are subject
to health and safety management based on legal require-
ments and/or recognised standards or guidelines.
No fatalities were reported in the Company’s own workforce
or among other employees working on the Company’s
premises due to work-related accidents or work-related ill
health. Furthermore, no cases of recordable work-related ill
health were reported with regard to employees. In the re-
porting year, 65 recordable work-related accidents (in ac-
cordance with local regulations, including commuting ac-
cidents, if applicable) were recorded within the own work-
force. The rate of work related injuries per 1 million hours
worked is 1.18.
A total of 1,067 days were lost due to work-related ac-
cidents with regard to employees.
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Group Annual Report 2024
DISCLOSURE REQUIREMENT S1-15 – WORK-LIFE BALANCE
METRICS
VIG attaches great importance to life balance and to
respectful and cooperative collaboration and creates a
working environment where employees are able to reconcile
their professional and personal priorities. A number of
actions being developed by the local Group companies in
line with the needs of their employees promote this balance
and include initiatives for physical and mental health as well
as offers for flexible working and family-friendliness. One-
hundred percent of employees are legally entitled to family-
related leave in accordance with local legal provisions. Of
the eligible employees, 10% took advantage of this leave.
The distribution by gender is shown in the following table.
Employees that took family-related leave 2024
in %
Male 26.01
Female 73.99
DISCLOSURE REQUIREMENT S1-16 – REMUNERATION METRICS
(PAY GAP AND TOTAL REMUNERATION)
As the leading insurance group in Central and Eastern
Europe, VIG operates in countries with different economic
conditions. This was taken into account in the calculation of
the compensation metrics by adjusting the salary data for
purchasing power differences using Purchasing Power
Parities (PPP) (Eurostat).
The gender pay gap is calculated as the difference between
the average gross hourly pay level of male and female
employees, expressed as a percentage of the average
gross hourly pay level of male employees. VIG’s unadjusted
gender pay gap is 31%. The unadjusted gender pay gap
does not take into account individual factors such as function,
hierarchy level, qualification, professional experience and
industry specifics and is therefore only of limited significance.
Taking into account only a hierarchical structure produces
the following values:
Adjusted Gender Pay Gap 2024
in %
Top management level 12.50
Management directly below the top management
(board-1)
21.46
Other employees 24.77
The annual total remuneration ratio of the highest paid
individual to the median annual total remuneration for all
employees (excluding the highest-paid individual) is 27:1.
The salary data of around 7000 employees of Austrian VIG
companies were used as the basis for determining the
median of the annual total remuneration of all employees
(excluding the highest-paid individual). Based on the
distribution of these data, the median for VIG as a whole
was derived – taking into account the average remuneration
of the Group companies outside Austria, adjusted for
purchasing power. The data were adjusted for differences
in the extend of employment. All persons employed as of
31 December 2024 in all areas of work (office and field staff)
and at all hierarchy levels (top management, management
directly below the top management (Board-1)) were taken
into account.
All fixed and variable remuneration components and one-
off payments received in the reporting year were taken into
account in the calculation of the remuneration metrics.
Expense allowances such as per diems and expenses were
not included.
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DISCLOSURE REQUIREMENT S1-17 – INCIDENTS, COMPLAINTS AND
SEVERE HUMAN RIGHTS IMPACTS
Minimum standards are defined in the Code of Business
Ethics and described in ESRS 2 MDR-P “Policies adopted to
manage material sustainability matters”. A total of seven
cases of discrimination, including harassment, were reported
for the reporting year. No further complaints were reported in
this context. The total amount of fines, penalties and com-
pensation for damages as a result of incidents and com-
plaints of discrimination, including harassment, amounted to
EUR 13,051 in the reporting period. VIG is not aware of any
severe human rights incidents connected to its own work-
force during the reporting period, nor have there been any
complaints submitted to the National Contact Point for
OECD Multinational Enterprises.
ESRS S4 CONSUMERS AND END-USERS
The following section describes the requirements ass
ociated
with ESRS 2.
Strategy
DISCLOSURE REQUIREMENT RELATED TO ESRS 2 SBM-3 –
MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR
INTERACTION WITH STRATEGY AND BUSINESS MODEL
For VIG, the scope of ESRS S4 “Consumers and end-users”
includes retail customers as well as small and medium-
sized sole proprietorships operated by natural persons. The
assignment to this customer segment is based on the
customer’s view and is not product-dependent. Corporate
customers, internal operations and capital investments do
not fall under the scope of ESRS S4. If the customer is a
legal entity, it is classed as a corporate customer.
The identified negative impacts relate to the provision of
adequate and understandable information for policyholders
and the protection of personal data. The positive impacts
are facilitated by needs-based products and services pro-
vided by VIG for policyholders. Detailed information on this
is provided in the chapter “Strategic principles” on page 10
of VIG’s Group Annual Report 2024 or under MDR-P “Policies
adopted to manage material sustainability matters”. A general
increase in demand for private provision products and/or for
a wider range of health care products is confirmed in a
study on demographic change and the demand for life in-
surance by the German Insurance Association (GDV). VIG
views this as an opportunity. The identified risks relate to the
possibility of using misleading information when offering
products that meet ESG criteria (greenwashing) and the
violation of data protection regulations.
Consumers and end-users are equally affected by the
identified impacts, risks and opportunities. Risk provisions
are implemented equally for all policyholders. Both op-
portunities and risks were analysed equally for all con-
sumers and end-users.
Impact, risk and opportunity management
DISCLOSURE REQUIREMENT S4-1 – POLICIES RELATED TO
CONSUMERS AND END-USERS
The key policies adopted to manage the described impacts,
risks and opportunities, as already described under MDR-
P “Policies adopted to manage material sustainability mat-
ters”, are the VIG strategic and sustainability programmes,
the commitment to the UN Global Compact, the Code of
Business Ethics, requirements relating to data protection
and risk management, and the Fit & Proper policy. The In-
surance Distribution Directive (Directive (EU) 2016/97, IDD)
is a material EU requirement in the context of ESRS S4
“Consumers and end-users”, as it ensures customer pro-
tection, consumer protection and minimum European har-
monisation in insurance distribution. It sets out specifica-
tions for products, advice and remuneration and obliges
insurance and reinsurance companies to train all employees
involved in sales and in managerial positions in order to
ensure that customers are given the best possible advice.
In addition, the majority of VIG insurance companies have
implemented guidelines for the appropriate handling of
complaints from policyholders. The Group Policy Life Insur-
ance addresses product design, portfolio, sales and risk
management and the avoidance of greenwashing in life
insurance. VIG insurance companies have also imple-
mented various local requirements to ensure that policy-
holders receive adequate and understandable information.
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Group Annual Report 2024
– Product information guidelines for the creation and dis-
tribution of product information are designed to ensure
that brochures, websites and other materials contain ac-
curate, up-to-date and easy-to-understand information.
– Marketing communication specifications set out stand-
ards to ensure that the insurance companies correctly
present the product content in summary form and that
they comply with the legal requirements and are not
misleading.
– Standards for digital communication ensure that prod-
uct information can be exchanged across different
channels in a consistent, secure and easily accessible
manner.
– Customer segmentation enables customer-oriented
product communication based on the corresponding
characteristics of the policyholders (e.g. age or risk
profile).
– Training enables employees to gain a comprehensive
understanding of the available products in order to
ensure expert communication.
– Enquiries are answered in accordance with specifi-
cations that are intended to ensure timely and fact-
based communication.
– Provisions for providing feedback help continuously
improve communication.
VIG respects human rights and is committed to the prin-
ciples of the UN Global Compact. Further details can be
found in ESRS 2 MDR-P “Policies adopted to manage
material sustainability matters”.
Personal data are processed with the utmost care and in
accordance with data protection regulations.
The local insurance companies have introduced feedback
mechanisms, for example in the form of stakeholder
surveys. Further details can be found in S4-2 “Processes
for engaging with consumers and end-users about
impacts”.
To ensure that the rights of consumers and end-users are
protected, most of the insurance companies have set up
complaints offices. Brokers, agents and other intermedi-
aries are also contact persons for expressing concerns and
can provide information about the possible grievance
mechanisms.
DISCLOSURE REQUIREMENT S4-2 – PROCESSES FOR ENGAGING
WITH CONSUMERS AND END-USERS ABOUT IMPACTS
The local VIG insurance companies continuously and
systematically collect feedback from policyholders. This
creates a deeper understanding of needs, which leads to
an improvement in service quality. The findings include
statements about service quality, clarity of the information
provided and general satisfaction with the services offered.
The local insurance companies are in direct contact with
policyholders via various communication channels such as
surveys, feedback forms and special portals. These chan-
nels make it possible to capture a broad and representative
range of perspectives.
The local insurance companies endeavour to take the
interests of policyholders into account in different phases.
The decision on the different coverage variants is the
responsibility of the policyholders or the brokers authorised
by them. Prior to the conclusion of an insurance contract,
local insurance companies concentrate on raising aware-
ness and educating by informing potential customers about
the respective product range, e.g. through marketing
campaigns, webinars, information brochures or relevant
content on the websites (pre-contractual information, con-
tract conditions, key information documents). Local in-
surance companies also offer face-to-face consultations,
chat support and/or tailored insurance consulting tools for
different distribution channels. During the conclusion of the
contract, the insurance companies support their customers
by providing advice in the application process, customer
services and online tools in accordance with the customers’
respective sales access. During the term of an active
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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insurance contract, the local insurance companies maintain
regular communication with policyholders via telephone,
email, online chat, or by sending newsletters containing the
latest information. Training programmes for the various
intermediaries ensure professional development, as re-
quired under the Insurance Distribution Directive (IDD).
Since policyholder support depends heavily on the respec-
tive sales partners and is an ongoing process, the local in-
surance companies also conduct regular reviews, for ex-
ample, using feedback forms at various customer contact
points (either directly or through sales partners). This en-
ables continuous assessment of policyholders’ needs.
In the event of a loss occurence, there are various pos-
sibilities for reporting a loss. This includes direct reporting to
insurance brokers, via online platforms or customer service
centres, by email or even by letter or fax. The aim is to pro-
vide policyholders with the best possible support in the
claims process. When a claim is reported to an insurance
intermediary or a customer service centre, it is also deter-
mined which documents have already been submitted and
which still need to be provided. The online process is de-
signed to ensure that claims are submitted as fully as
possible from the outset, with the goal of obtaining the
necessary documentation as quickly as possible to facilitate
swift claims processing. If an expert assessment is required,
the local insurance company initiates the process.
Surveys and interviews conducted after claims have been
processed provide valuable insights into the claims handling
process and policyholder satisfaction. If complaints arise, it
is important to determine whether they are due to a lack of
coverage or whether there are potential areas for improve-
ment in the claims process.
The contract renewal process depends on the relevant legal
requirements for renewal. During the renewal phase, local
insurance companies prepare offers in accordance with
local legal requirements. They also gather feedback at this
stage to further improve their services.
The quality of the customer relationship is evaluated using
various indicators. One of the most common metrics is the
Net Promoter Score (NPS), which measures the likelihood
that policyholders would recommend VIG services. In ad-
dition, some local insurance companies evaluate satisfac-
tion using the Customer Satisfaction Score (CSAT). Another
important metric is the time in which complaints are resolved
or clarified. Feedback analyses are also carried out, and
these can be used to derive trends and additional findings.
No disadvantaged consumer groups were identified in the
double materiality assessment. Disclosure Requirement
S4-3 – PROCESSES TO REMEDIATE NEGATIVE IMPACTS AND
CHANNELS FOR CONSUMERS AND END-USERS TO RAISE CONCERNS
In order to ensure the protection of the rights of consumers
and end-users, a complaint management system has been
established, which is organised decentrally within the Group.
The insurance companies offer their policyholders various
options for expressing their concerns and needs (such as
service helplines or online complaint portals). Reported
incidents and the actions to be derived from them are
examined individually.
Consumer complaints and concerns are recorded in
various formats, including the date on which the complaint
regarding the claim is received and the date it was
answered. Key aspects include the time required to
respond to complaints and the identification of reasons for
repeated complaints. In addition, insurance companies
within the EU are obliged to send regular reports on cus-
tomer complaints to their respective national supervisory
authority.
Agents and other intermediaries providing services to
policyholders on behalf of VIG, as well as brokers acting on
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Group Annual Report 2024
behalf of policyholders, serve as key points of contact for
raising concerns and informing customers about available
grievance mechanisms. At the same time, VIG ensures that
intermediaries, agents and other intermediaries have the
opportunity to obtain feedback. In addition, brokers who
work on behalf of VIG are offered ongoing training that
focuses on the concerns of policyholders.
Customer interactions are managed by the respective local
insurance companies. To facilitate exchange within VIG, a
Customer Experience (CX) centre has been set up in Poland.
This centre collaborates with local VIG companies on
customer experience matters and discusses with the
participating insurance companies which developments in
core insurance processes should be shared with other VIG
insurance companies.
DISCLOSURE REQUIREMENT S4-4 – TAKING ACTION ON MATERIAL
IMPACTS ON CONSUMERS AND END-USERS, AND APPROACHES TO
MANAGING MATERIAL RISKS AND PURSUING MATERIAL
OPPORTUNITIES RELATED TO CONSUMERS AND END-USERS, AND
EFFECTIVENESS OF THOSE ACTIONS
The professional training and development of sales staff
ensures that the persons involved in insurance distribution
have the necessary knowledge and skills. In addition, the
local insurance companies offer different products and
services according to the needs of local policyholders.
These include among others:
– Life insurance policies that take ESG criteria into
account, such as unit- and index-linked life insurance
policies.
– Insurance products with environmental added value,
which are intended to promote environmentally friendly
mobility and energy-efficient construction, provided
that they are financially sustainable.
– Insurance for innovative, sustainable technologies with a
focus on renewable energy in Central and Eastern Europe.
– Integration of various digitalisation solutions within the
core insurance processes, whereby the communication
process is to be modernised and gradually simplified
across the various stages.
The effectiveness of the actions taken in terms of
achievement of the desired result is assessed by means of
satisfaction measurements. Further details on this are
provided in S4-2 “Processes for engaging with consumers
and end-users about impacts”.
VIG insurance companies invest in the further development
of the online platforms for the conclusion of contracts,
contract information and claims reporting in order to provide
appropriate information to policyholders. VIG also drives the
development of tools to improve customer experience and
the promotion of innovative insurance solutions. One ex-
ample of this is the introduction of telematics tariffs that re-
ward safe driving. These initiatives are primarily designed to
close any insurance gaps, particularly those of existing cus-
tomers. Products are offered in accordance with local mar-
ket conditions and customer requirements in order to en-
sure appropriate insurance coverage. VIG insurance com-
panies decide on the respective design of products based
on local market requirements (e.g. medical infrastructure).
These actions are aimed at adapting to the changing needs
of policyholders and ensuring a high level of satisfaction.
Further actions are described in S4-2 “Processes for en-
gaging with consumers and end-users about impacts”.
The implementation of Group-wide IT standards ensures
data security. For more details, see MDR-P “Policies adopted
to manage material sustainability matters”. VIG companies
are subject to data protection regulations that determine how
personal information is collected, used and protected.
Personal data are processed securely in accordance with
data protection regulations, and IT systems are updated
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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regularly in order to eliminate potential vulnerabilities. VIG
has established reliable processes for dealing with data
breaches, including a procedure for informing the affected
policyholders and the supervisory authorities in accordance
with the statutory provisions.
In addition, VIG uses encryption technologies throughout
the Group to ensure that data, even if intercepted, remain
unreadable without the appropriate authorisation. Regular
internal and external audits and risk assessments are
intended to identify any vulnerabilities and to enable
continuous improvement of security actions. In addition,
regular security checks are carried out by external
specialists. VIG regularly assesses and monitors the data
security procedures of its providers and partners
throughout the Group in order to ensure that they comply
with the applicable security standards and take appropriate
security actions. This is implemented by the local com-
panies.
In view of the increasingly sophisticated strategies used by
cyber criminals, local insurance companies regularly inform
their employees about cyber threats. Well-trained em-
ployees play a key role in the defence against IT security
attacks. In addition, VIG has established a comprehensive
programme to protect against the increasing cyber threats.
VIG companies are served by three competence centres
(Cyber Defense Centers) in Austria, Poland and the Czech
Republic. This covers all VIG companies within the scope
of the Digital Operational Resilience Act (DORA) and com-
panies with the same IT service provider. VIG IT systems are
continuously monitored for signs of a cyber security incident.
The Cyber Defense Center programme is complemented
by information events and employee awareness campaigns.
The aim of VIG is to ensure full compliance with statutory
data protection regulations and to ensure transparency
towards policyholders regarding the use and disclosure of
their data. In the event of a data breach, the affected data
subjects and the competent authorities will be informed
immediately in accordance with the statutory provisions.
Data breaches are continuously analysed by the local data
protection responsible persons. The findings are used to
avoid similar incidents and to continuously improve pro-
cesses. Further information on the data protection man-
agement system can be found under ESRS 2 MDR-A “Ac-
tions and resources in relation to material sustainability mat-
ters”. In the reporting year, 80 data breaches were reported
to the relevant data protection authorities in accordance
with the local statutory provisions. A Romanian Group com-
pany has been fined EUR 3,000 by the local data protection
authority due to deficiencies in connection with the techni-
cal and organisational measures taken by a data processor.
A Georgian Group company has been fined EUR 700 by
the local data protection authority for a breach in con-
nection with an input dialogue on the company’s website;
the company has appealed.
IT security incidents are reported to the Chief Information
Security Officer of VIG Holding on a monthly basis. Critical
incidents are reported immediately to the Chief Information
Security Officer and the Holding Managing Board member
responsible for IT.
To prevent greenwashing in life insurance, the VIG Group
Policy Life Insurance has been adjusted through the use of
transparent and verifiable sustainability criteria, such as
independent certification, the disclosure of investment
strategies and the provision of clear definitions of sustain-
able products. Information for policyholders is presented in
accordance with the regulatory requirements. In non-life
insurance, there is no clear definition of how products
should be classified as “green”. The Group Guideline Non-
Life Underwriting therefore refers to different sources that
must be observed if a product is defined as “green or
sustainable”.
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Group Annual Report 2024
In response to the identified risks, such as greenwashing or
data protection breaches, VIG implements various meas-
ures, such as complaint channels and training for em-
ployees, which are not identical for all VIG companies due
to differing local circumstances. This approach ensures that
each insurance company can take action in line with its local
requirements. Further details can be found in S4-3 “Pro-
cesses to remediate negative impacts and channels for
consumers and end-users to raise concerns”.
Requirements that are intended to ensure that own
business practices do not have any material negative
impacts on consumers and end-users are described in
ESRS 2 MDR-P “Policies adopted to manage material
sustainability matters”.
For the reporting year, the local insurance companies were
also asked about non-compliance with the UN Guiding
Principles on Business and Human Rights, the International
Labour Organization’s (ILO) Declaration on Fundamental
Principles and Rights at Work and the OECD Guidelines for
Multinational Enterprises on Responsible Business Conduct.
No incidents have been reported in this regard.
It is not possible to present the resources for managing the
material topics in ESRS S4 “Consumers and end-users”
separately, as this forms part of VIG’s core business and is
supported by comprehensive actions throughout the Group.
Metrics and targets
DISCLOSURE REQUIREMENT S4-5 – TARGETS RELATED TO
MANAGING MATERIAL NEGATIVE IMPACTS, ADVANCING POSITIVE
IMPACTS, AND MANAGING MATERIAL RISKS AND OPPORTUNITIES
A comprehensive and continuous engagement approach is
used to take account of the various interests, which the
insurance companies develop further with the aim of
continuous improvement. Detailed information can be
found in S4-3 “Processes to remediate negative impacts
and channels”. Policyholders are kept informed of the
Company’s progress towards achieving these targets
thanks to improved services. Findings or opportunities for
improvement can be found in S4-2 “Processes for engaging
with consumers and end-users about impacts”.
GOVERNANCE INFORMATION
ESRS G1 BUSINESS CONDUCT
The following section describes the requirements as-
s
ociated with ESRS 2.
Governance
DISCLOSURE REQUIREMENT RELATED TO ESRS 2 GOV-1 – THE
ROLE OF THE ADMINISTRATIVE, SUPERVISORY AND MANAGEMENT
BODIES
VIG Holding is committed to applying and complying with
the Austrian Code of Corporate Governance (ÖCGK), which
is the standard for good business conduct and corporate
control in Austria. The Managing Board, Supervisory Board
and employees consider observance of and compliance
with the rules of the Austrian Code of Corporate Gov-
ernance to be highly important for the practical im-
plementation of corporate governance.
Strategy
DISCLOSURE REQUIREMENT RELATED TO ESRS 2 SBM-3 –
MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR
INTERACTION WITH STRATEGY AND BUSINESS MODEL
In relation to internal operations, the material impacts
identified are reflected in the contribution to a fair and sus-
tainable economic system through appropriate business
conduct. The material risks in internal operations relate in
particular to potential non-compliance with regulatory re-
quirements, in particular under supervisory law, the possible
consequences of inadequate IT security actions and data
protection breaches, which may result in reputational dam-
age, penalties and other financial losses. In addition, there is
a risk of reputational damage due to the insurance of or in-
vestment in undertakings with inappropriate business prac-
tices or challenges in relation to their own reporting, e.g. due
to the lack of disclosure of sustainability-related information.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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Impact, risk and opportunity management
DISCLOSURE REQUIREMENT RELATED TO ESRS 2 IRO-1 –
DESCRIPTION OF THE PROCESSES TO IDENTIFY AND ASSESS
MATERIAL IMPACTS, RISKS AND OPPORTUNITIES
The processes for identifying material impacts, risks and
opportunities, including all relevant criteria, are described in
chapter IRO-1 “Description of the process to identify and
assess material impacts, risks and opportunities”.
Numerous internal policies, guidelines and operating pro-
cedures exist in VIG to ensure compliance with applicable
regulatory requirements and voluntary commitments, to
promote a culture of integrity and to ensure ethically correct
conduct, as well as to actively manage material risks and
opportunities. Examples include the Code of Business
Ethics, the Group-wide policies and guidelines on the com-
pliance management system, data protection, prevention of
money laundering, risk management, Fit & Proper, IT secu-
rity, procurement, and the commitment to the principles of
the UN Global Compact. Details on individual key gover-
nance documents are described above in section ESRS 2
MDR-P “Policies adopted to manage material sustainability
matters”. In addition, the Group Guideline Prevention of
Money Laundering and Terrorist Financing is important in
this context. This guideline is based on the requirements of
the 4th and 5th EU Anti-Money Laundering Directives and
the Austrian Financial Markets Anti-Money Laundering Act
and applies to those VIG companies that are required to
comply with anti-money laundering and anti-terrorist financ-
ing regulations on account of European or national require-
ments. VIG Holding and the VIG companies support inter-
national efforts to prevent the abuse of the financial system
for the purposes of money laundering and terrorist financing
and strive to identify and verify their customers in accor-
dance with the know-your-customer (KYC) principle, check
the origin of funds and identify and monitor transactions that
appear suspicious, report them to the responsible author-
ities if necessary and reject or terminate them if necessary.
The anti-money laundering officers of VIG Holding and the
relevant Group companies play a central role in this area.
The function of the anti-money laundering officers must be
set up in such a way that they are responsible to the full
Managing Board and report directly to the Board — without
any intermediate levels.
DISCLOSURE REQUIREMENT G1-1– BUSINESS CONDUCT POLICIES
AND CORPORATE CULTURE
VIG actively fosters an appropriate corporate culture
through a variety of initiatives. This includes defining funda-
mental principles for cooperation, promoting employee en-
gagement, offering training and development opportunities,
introducing incentive schemes, fostering open communica-
tion and promoting diversity and inclusion. In addition, on-
boarding is used as an important time to familiarise new
employees with the corporate culture. Other actions include
the social commitment of VIG to the communities in their
respective countries, the conduct of employee surveys and
the continuous improvement of working conditions and
related initiatives. Some actions are explained in more detail
below.
Clear communication channels
Complete, reliable information is needed to make sou
nd stra-
tegic decisions. The Group therefore has experts who provide
the Managing Board and local company management with in-
depth analyses to support them in their decision-making.
Clearly defined channels of communication ensure the nec-
essary exchange between individual Group companies and
VIG Holding.
CO
3
The CO
3
experts department increases interaction and the
exchange of experience between the Group companies
and provides strategic input for the positioning of the Group.
Training programmes
VIG Holding offers comprehensive training programmes for
employees on topics such as compliance, international
sanctions and the Code of Business Ethics.
People are at the heart of the Group
VIG respects the cultures and traditions of the vari
ous coun-
tries and markets in which it offers its insurance services,
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Group Annual Report 2024
and it is committed to equal opportunities in the recruitment
and development of its employees. This commitment is
underlined by the Group’s diversity strategy and the appoint-
ment of a Diversity Advisor at VIG Holding. VIG regularly or-
ganises workshops, conferences and cross-departmental
and cross-company projects that encourage employees to
network and communicate effectively. These initiatives pro-
mote a positive working environment, strengthen trust and
improve overall team dynamics. VIG is aware that investing
in team building not only increases morale, but also produc-
tivity and innovation. Further information can be found under
S1-1 “Policies related to own workforce of the company”.
Compliance management system
The Group-wide compliance management system is a key
part of the measures for managing material impacts, risks and
opportunities. Alongside the Code of Business Ethics, this
system forms the core of the overall concept for ensuring
ethical and legally compliant conduct in internal operations
and in relationships with customers, business partners,
shareholders and the general public. The compliance man-
agement system also provides for mechanisms for report-
ing perceived conduct that is potentially in conflict with
regulatory and ethical requirements as well as voluntary
commitments. The Group-wide compliance management
system is continuously being evaluated and developed
further. Further information on the Code of Business Ethics,
the Group Policy Compliance Management System, the
Group Guidelines on Procurement Principles and other in-
dividual governance documents can be found in section
ESRS 2 MDR-P “Policies adopted to manage material sus-
tainability matters”.
Like the Group itself, the Compliance organisation also has
a decentralised structure. It is represented by the Group
Compliance Committee, which consists of the local com-
pliance officers and the head of Compliance (incl. AML) of
VIG Holding. Compliance officers are appointed in all (re)in-
surance companies and in certain non-insurance companies,
in particular asset management companies and pension
funds. These individuals are responsible for supporting and
developing the local compliance management system. In
addition to monitoring changes in the legal environment and
recommending necessary actions, the tasks of the com-
pliance officers include identifying and assessing com-
pliance risks, taking actions to prevent breaches, advising
employees and the members of the local managing boards
and/or local supervisory boards, monitoring existing pro-
cedures and handling compliance incidents. Beyond these
duties, the local compliance officers also have comprehen-
sive regular and ad hoc reporting obligations to the local
managing board and/or the Supervisory Board and Com-
pliance (incl. AML) of VIG Holding. This includes the annual
compliance report as well as reports on regulatory audits
and the results thereof, precisely defined compliance inci-
dents, and conflicts of interest involving certain groups of
persons. A separate Group guideline and a Holding guide-
line on conflicts of interest ensure a common understanding
of this matter and define minimum standards for handling
conflicts of interest. The local compliance officers are as-
sisted, supported, steered and monitored by Compliance
(incl. AML) of VIG Holding.
Reporting breaches
Internal and external persons can report any observa
tions
of misconduct to the compliance officers both at the level
of the individual Group companies and at the level of VIG
Holding. In line with the Austrian Whistleblower Protection
Act (Hinweisgeber:innenschutzgesetz), which implemented
the EU’s Whistleblower Directive in Austria, VIG Holding has
set up the VIG Whistleblower Portal as an internal reporting
channel to allow for secure and confidential reporting—at
any time and anonymously—perceived violations of the
statutory provisions named in the Whistleblower Protection
Act. Perceived violations in other legal areas can be reported
to a dedicated email address (whistleblowing@vig.com) and
by post to Compliance (incl. AML) of VIG Holding, for the
attention of the VIG Compliance Officer. Information on this
can be found both on the Intranet and on the VIG website
under https://group.vig/en/whistleblowing. Regardless of the
chosen reporting channel, all reports will reach Compliance
(incl. AML) of VIG Holding. Their validity is then reviewed in
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
111
line with the provisions of confidentiality, employee protec-
tion, and data protection. In a VIG Holding committee, con-
sisting of members from the Compliance (incl. AML), Gen-
eral Secretariat & Legal, Human Resources and Internal
Audit, every incoming report is evaluated regardless of
whether it concerns a subsidiary or VIG Holding, and follow-
up actions are recommended if necessary. The follow-up
actions are taken in accordance with the process speci-
fications of the Internal Audit department.
In VIG Group, process specifications for handling whistle-
blowers are implemented in local governance documents
and in accordance with the local legal framework. Group
companies based in the EU are subject to the requirements
of the EU Whistleblower Directive, which prescribes the
establishment of internal reporting channels and the protec-
tion of whistleblowers. Accordingly, all insurance companies
of the Group with their registered office in the EU have cor-
responding reporting channels. Outside the EU, insurance
companies have also set up processes in this regard in
accordance with local regulations, with a few exceptions
(see MDR-P “Policies adopted to manage material sustain-
ability matters”). The most frequently offered reporting
channels are dedicated email mailboxes and face-to-face
meetings; some companies have set up their own whistle-
blowing hotline. In addition, some non-insurance com-
panies have implemented actions to protect whistleblowers
in accordance with the applicable laws.
VIG Holding continued its extensive range of training
programmes on compliance topics during the reporting year.
New employees were required to complete a general com-
pliance training as well as trainings on preventing market
abuse and on international sanctions. Furthermore, there
was also a mandatory compliance e-learning programme.
This included modules on data protection, information sec-
urity, code of conduct, anti-corruption and money launder-
ing prevention. The planning and implementation of training
programmes in the Group companies is the responsibility of
the respective company. The scope, target group, frequency
and format of compliance trainings are therefore structured
differently in the Group companies. For the functions within
an organisation most at risk in relation to corruption and
bribery, see section G1-3 “Prevention and detection of
corruption and bribery” below.
DISCLOSURE REQUIREMENT G1-3 – PREVENTION AND DETECTION
OF CORRUPTION AND BRIBERY
The aim of an effective compliance management system is,
as described above under Disclosure Requirement G1-1
“Business conduct policies and corporate culture”, to en-
sure compliance with all regulatory requirements applicable
to an undertaking or group, as well as internal standards
and voluntary commitments. This includes, in particular, the
provisions on the prevention of corruption and bribery, on
procurement principles and on the handling of potential
conflicts of interest. The mechanisms described above for
reporting breaches therefore also extend to this legal area.
The relevant measures for the prevention and detection of
corruption and bribery are embedded in the compliance
management system and are therefore also included in
Group policies and guidelines (see also G1-1 “Business
conduct policies and corporate culture”).
Incidents of corruption and bribery are compliance inci-
dents that must be reported accordingly to Compliance (incl.
AML) of VIG Holding. Reports of perceived incidents of cor-
ruption and bribery are handled in accordance with the
locally defined responsibilities and in accordance with local
statutory regulations. Both Compliance and Internal Audit—
departments that are usually involved in receiving reports
and processing perceived incidents of corruption and
bribery—have a direct reporting line within the Group com-
panies to the local managing board and are only respon-
sible to the local managing board.
Non-insurance companies are included in the compliance
management system of the insurance company controlling
them on the basis of their individual risk situation, therefore
some non-insurance companies do not themselves have in
place the processes described above for preventing cor-
ruption and bribery. Individual insurance companies in the
112
Group Annual Report 2024
Group plan to implement additional actions in this area in
the coming years. The measures to prevent, detect and in-
vestigate reports of corruption and bribery are communi-
cated in various ways, with most Group companies using
their internal communication channels or training courses
for this purpose. The Group’s Code of Business Ethics,
which includes the prevention of corruption and bribery as
one of its 15 principles, is available at all times on the Group
Intranet and website. As described above under G1-1, the
planning and implementation of training programmes is the
responsibility of the Group companies. The scope, target
group, frequency and format of compliance trainings are
therefore structured differently in the Group companies. In
their annual compliance plans and compliance reports,
which are sent to the local managing board and Compli-
ance (incl. AML) of VIG Holding, the local compliance offic-
ers provide information on respective actions and their im-
plementation. At VIG Holding, the subject of corruption and
bribery is addressed in the mandatory general compliance
training and the e-learning program. Respective awareness-
raising actions are taken in this regard, where necessary. The
following are defined as functions-at-risk, i.e. functions that
are most at risk within the Company in relation to corruption
and bribery: Managing Board members and managers one
level below the Board. The percentage of these functions that
completed training measures on corruption and bribery in VIG
in the reporting year is not shown for this year as the cor-
responding data are not yet available in sufficient quality.
Each year, during a Supervisory Board meeting, the VIG
Holding Managing Board provides comprehensive infor-
mation to the Supervisory Board of VIG Holding on the pre-
cautions taken to combat corruption in VIG Holding. Locally,
reports are made to the local managing board and, in some
cases, to the local supervisory board by means of an annual
compliance report.
MDR-A – Actions and resources in relation to materia
l sustainability
matters
As an insurance group, VIG operates in a highly regu
lated
environment and contributes to the further development of
this legal framework as a member of insurance associations
or sector-independent industry associations. The aim is to
contribute to practical, market-oriented and effective regu-
lation through industry expertise and practical knowledge.
VIG implemented comprehensive actions to manage ma-
terial impacts, risks and opportunities. These are described
in ESRS 2 MDR-A “Actions and resources in relation to
material sustainability matters” as well as G1-1 “Business
conduct policies and corporate culture” and G1-3 “Pre-
vention and detection of corruption and bribery”. Intensive
work was also carried out on expanded greenhouse gas
reporting during the reporting year and an ESRS Group
policy was established, which serves as a binding frame-
work for the fully consolidated VIG companies with regard
to the annual reporting of non-financial information and de-
scribes the necessary processes and responsibilities. Ma-
terial topics relating to IT security have also been identified
in ESRS S4. The actions taken are described in S4-4
“Taking action on material impacts on consumers and end-
users, and approaches to managing material risks and pur-
suing material opportunities related to consumers and end-
users, and effectiveness of those actions”.
There is an ad hoc reporting obligation to Compliance (incl.
AML) of VIG Holding for (potential) conflicts of interest iden-
tified by Group companies with regard to members of the
supervisory board, members of the managing board and
holders of governance or key functions. A corresponding
guideline has also been drawn up for VIG Holding, which
requires employees to identify conflicts of interest and avoid
them in coordination with the respective managers. If this is
not possible, they must define and implement appropriate
actions for handling the relevant conflicts of interest to-
gether with the managers. If a conflict of interest cannot be
avoided or adequately handled, a report must be made to
Compliance (incl. AML) of VIG Holding.
The Group Guideline International Sanctions provides for
the mandatory screening of all customers, business part-
ners, recipients of payments and employees in relation to
international sanctions. A sanction screening tool procured
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
113
for the Group is used for this purpose. This tool is also used
to screen for the status of politically exposed person in re-
lation to anti-money laundering procedures. The tool also
contains information on negative media reports and criminal
prosecution.
As described in G1-1 “Business conduct policies and cor-
porate culture”, VIG pursues a continuous improvement pro-
cess for the actions taken, which takes into account the
respective local requirements in accordance with the decen-
tralised management approach. The time horizon for the
continuous implementation of these actions ranges from
short term to long term.
Metrics and targets
DISCLOSURE REQUIREMENT G1-4 – INCIDENTS OF CORRUPTION
OR BRIBERY
No convictions or fines were reported in the reporting year
in connection with violations of anti-corruption laws, and
consequently no additional actions were taken.
DISCLOSURE REQUIREMENT G1-5 – POLITICAL INFLUENCE AND
LOBBYING ACTIVITIES
As an insurance group, VIG operates in a highly regulated
environment and aims to contribute to the further develop-
ment of this legal framework. VIG does this indirectly, in par-
ticular, through memberships in insurance associations or
sector-independent industry associations. The European
Affairs department at VIG Holding is the competence centre
for these activities. The aim is to contribute to practical,
market-oriented and effective regulation through industry
expertise and practical knowledge. In addition, European
Affairs supports the members of the Managing Board and
the first management level below the Board in interpreting
legal developments to ensure that these developments are
considered in the strategy and business activities of the
Group in a timely manner and in a way that is in line with the
company’s interests. The employees of this department are
subject to the Code of Business Ethics and take into ac-
count the business strategy, which includes the sustainability
programme, and the Code of Conduct of the European
Transparency Register in their day-to-day work. Respon-
sibility for the European Affairs department lies with the
Deputy Chairman of VIG Holding Managing Board.
VIG does not make any contributions, including donations
and sponsorship payments, to political parties or persons
related to them. This principle is also enshrined in the Code
of Business Ethics.
In the reporting year, VIG dealt in particular with changes to
prudential regulation (Solvency II Review, Insurance Re-
covery and Resolution), sustainability regulation (in particu-
lar the Corporate Sustainability Reporting Directive, CSRD,
Corporate Sustainability Due Diligence Directive, CSDDD)
and digitalisation (in particular the Digital Operational Resili-
ence Act, DORA, Artificial Intelligence Act, AI Act). For all EU
initiatives, the aim was to ensure that the new requirements
were practical, market-oriented and effective, including
through public consultations.
VIG Holding is registered in the European Transparency
Register (see transparency-register.europa.eu/; VIG’s Trans-
parency Register number is 720555724263-16). There were
no further registrations in the Group in the reporting year.
Group-wide expenditures for compulsory memberships in
insurance associations or sector-independent industry
associations amounted to EUR 5.4 million in the reporting
year, while those for voluntary memberships amounted to
EUR 5.5 million. Contributions in the form of benefits in kind,
including the provision of personal resources, were
recorded based on estimates and amounted to around
EUR 184,000. In the two years prior to being appointed to
the Managing Board or Supervisory Board, one person held
a comparable position in public administration, including
regulators, during the reporting year.
ESRS G1 Additional entity-specific disclosures
VIG is aware of its responsibility towards customers, em-
ployees, shareholders, business partners, society and the
114
Group Annual Report 2024
general public as a whole. This goes hand in hand with its
aim to achieve a positive impact – including through spon-
sorship, donations and corporate volunteering (company
volunteering programmes), such as the group-wide Social
Active Day. Corporate volunteering is also part of the sus-
tainability programme (see MDR-P “Policies adopted to
manage material sustainability matters”). It is particularly
important to VIG to make a long-term commitment to its
sponsorship partners. The principles followed in this regard
are described in G1-5 “Political influence and lobbying ac-
tivities”. In 2024, donations and sponsorships were under-
taken in the following areas:
Sponsorship Amount of Activities
in EUR '000
Health/Sports 363
5,723
Environment 22
224
Art/Culture 359
4,620
Community/Social 192
1,192
Education/Science 94
954
Other initiatives 199
749
Total sponsorship 1,229
13,461
Donations
Health/Sports 126
2,801
Environment 43
265
Art/Culture 37
551
Community/Social 274
1,045
Education/Science 263
599
Other initiatives 11
337
Donations total 754
5,597
Total sum 1,983
19,058
In addition to the categories listed in the above table, var-
ious initiatives were supported to help raise awareness of
risk provision. The VIG Family Fund will continue to be
available to employees of the Ukrainian companies for
reconstruction in Ukraine. VIG also supported charitable
causes, art projects and actions to improve road safety. In
addition, VIG provided sponsorship for industry asso-
ciations and events such as networking events.
VIG encourages its employees to volunteer for social proj-
ects. Every year, VIG demonstrates its support for social
engagement, charity and solidarity internationally with its
Social Active Day. As part of the Social Active Day, em-
ployees can dedicate one working day per year to actively
supporting a socially important issue or project. In 2024, a
total of 14,398 employees from 48 companies and 20
countries participated in the Social Active Day. This engage-
ment can take many forms, from helping out in the social
market to cooking for people on low incomes, supporting
the soup counter, visiting care facilities, refugee shelters,
neighbourhood centres or even gardening and collecting
litter. What these activities have in common is people of-
fering their time and energy for the benefit of their fellow
human beings and the environment. Through these actions,
VIG promotes a corporate culture characterised by respon-
sibility for others and the environment and social engage-
ment, contributing to environmental protection and im-
proving the quality of life in all countries in which VIG op-
erates. As employees and stakeholders are increasingly
placing importance on environmental and social aspects,
these corporate volunteering activities can have a positive
impact on the perception of VIG as an attractive employer
and on its general reputation.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
115
Other mandatory disclosures
RESEARCH AND DEVELOPMENT
Although VIG companies do not perform any research
activities within the meaning of Section 243 (3) Z2 UGB,
they contribute their expertise to the development of insur-
ance-specific software models. VIG Holding and – for
projects – the VIG companies cooperate with Digital Impact
Labs Leipzig, Plug and Play and VENPACE, a Germany-
based start-up initiative (Investment and Corporate Building)
financed jointly with other insurers, in order to identify tech-
nological developments in the market more quickly and
internalise them if necessary. viesure was also founded as
an internal “innovation hub” focusing mainly on Austria for
this purpose. Since December 2022 an investment has also
been made in the APEX Deep Tech Fund, which focuses on
tech start-ups and supports VIG in identifying and research-
ing innovations at an early stage in order to use these for
the business model to the benefit of the customers – for
example with applications such as sensors and satellite
technology for the early detection of potential forest fires.
VIG Group also carries out indirect research activities through
its participation both in xista science ventures for streng-
thening basic research in Austria and also invlOS to support
research in the “biotech” field and the fight against cancer.
HOLDINGS, PURCHASE AND SALE OF OWN SHARES
Detailed information regarding Section 243 (3) Z3 UG
B can
be found in Note 24.10. Consolidated shareholders’ equity
starting on page 256 the notes to the consolidated financial
statements.
INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM
The preparation of the consolidated financial statements in-
cludes all activities to present and disclose the Group’s as-
sets, financial and operating results pursuant to the statu-
tory and/or IFRS regulations. The consolidated financial
statements include the balance sheet, the income state-
ment, the statement of comprehensive income, the state-
ment of changes in equity, the consolidated cash flow state-
ment, the segment reporting and the notes to the consoli-
dated financial statements, which contain a presentation of
the main accounting methods and explanations. The process
of preparing the financial statements includes the con-
solidation of all data from the accounting and the upstream
processes for the annual financial statements.
The internal control system (ICS) in the accounting process
of the Group is implemented in accordance with the five el-
ementary components of the COSCO framework model
(Committee of Sponsoring Organizations of the Treadway
Commission) for internal control. The objective of the ICS in
the accounting is to guarantee sufficient security by
implementation of controls, so that proper financial state-
ments are prepared despite the identified risks.
The implementation of ESRS requirements also requires
clearly defined processes. In the reporting year, relevant data
were collected, aggregated and validated via a shared re-
porting platform to ensure a high level of quality and
transparency of the information. In addition, all relevant
stakeholders and departments were involved, enabling
comprehensive and coordinated reporting. Furthermore, in-
ternal audit mechanisms were applied to ensure com-
pliance with regulatory requirements and to identify poten-
tial errors at an early stage.
Control environment
The organisational structure is comprised of the local
accounting departments of the companies and the Group
Finance & Regulatory Reporting Department at the head-
quarters of VIG Holding in Vienna. The accounting depart-
ments of the VIG companies prepare both financial state-
ments in accordance with local accounting regulations and
an IFRS consolidated report package and transmit these to
the Group Finance & Regulatory Reporting Department.
The IFRS consolidated report packages are prepared in ac-
cordance with uniform Group accounting policies. Stand-
ardised software with fixed reporting and consolidation
regulations is used for the preparation of the consolidated
financial statements. Reporting by VIG companies is largely
automated using upstream systems and automated inter-
faces. The consolidation of the data (capital consolidation,
expenditures and income consolidation, debt consoli-
dation and any elimination of inter-company profits) and the
preparation of the consolidated financial statements are
prepared by the Group Finance & Regulatory Reporting
Department.
116
Group Annual Report 2024
Risk assessment
In order to detect risks in the accounting process and sub-
sequently be able to eliminate them as much as possible,
documentation for the annual financial statements process
was developed. This includes the entire process of collecting
data by the employees of the VIG companies through auto-
mated controls, manual controls and analysis in the con-
solidated process to the final financial report for publication.
Control measures
The appropriate IFRS accounting and valuation require-
ments applicable across the Group are summarised in the
Group accounting manual (IFRS Application) that is binding
for all companies included in the consolidated financial
statements. The objective is to guarantee unified implemen-
tation of IFRS across the Group. This manual is subject to
annual review and is updated or adapted to the necessary
statutory provisions as required. The manual, together with
additional information on the Group-wide reporting require-
ments, is provided to the responsible persons in the local
accounting departments before the reporting process
begins. In addition, we provide information across the Group
in a timely manner about significant developments and
changes in requirements for the consolidated financial re-
porting. As part of the control system, the subsidiaries are
required to be compliant with accounting and valuation
requirements that are applicable for the Group and are
responsible for the timely reporting of their accounting-
related processes.
The transmitted financial data undergo both automatic (in the
form of validation) and manual reviews (development analysis
and plausibility checks) by the Group Finance & Regulatory
Reporting Department of VIG Holding. The performance of
control calculations and the reconciliation of intragroup
transactions serve as a further control to identify any differ-
ences and, if necessary, to correct or eliminate them.
Additionally, the preparation of the income statement rec-
onciliation, the audit of the accuracy of individual parts of
the consolidated financial statements and the plausibility
checks of the entire consolidated financial statements en-
sure that the presentation is complete and correct.
In the course of the preparation of the financial statements,
there is intensive collaboration with the Group Actuarial,
Planning and Controlling Department especially in regard to
development analysis (e.g. target-actual comparison). Also,
the data are regularly submitted to the Managing Board for
review and control.
In order to guarantee correct and timely completion of the
financial statements at the deadline for publication, both the
quarterly and the annual financial statements are based on
strict deadlines about which the VIG companies are in-
formed at the end of the 3
rd
quarter at the latest for the
coming financial year. The department preparing the con-
solidated financial statements thus ensures in advance that
the VIG companies coordinate their processes to the dead-
line requirements and thus are able to transmit their data in
a timely manner.
Information and communication
Based on intensive collaboration with other company de-
partments, in particular Group Actuarial, Planning and Con-
trolling and Asset Management (incl. Real Estate), there is
an extensive flow of information and communication.
In addition to the financial report at the end of each financial
year, a half-year financial report was published pursuant to
the statutory provisions in accordance with IAS 34.
The Investor Relations Department is responsible for re-
porting to the shareholders of VIG Holding. This takes place
both in personal discussions and through the Company
website. There the annual and interim reports are made
available to the shareholders and other interested parties
as well as regularly updated information on key figures,
share price, financial calendar, ad hoc news and other rele-
vant IR topics.
Monitoring
The Group Finance & Regulatory Reporting Department is re-
sponsible for preparing the consolidated financial statements
and the consolidated non-financial report. Regular moni-
toring of the internal control system is ensured by quarterly
reporting to the Managing Board and the Supervisory Board
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
117
The risks are continuously monitored by Group-internal
and inter-departmental controls (e.g. Group Finance &
Regulatory Reporting Department – Group Actuarial,
Planning and Controlling – Asset Management (incl. Real
Estate)).
Internal Audit also conducts quality assurance. They per-
form independent, objective audit measures by which, in
addition to the design and effectiveness of the internal
controls, the value and optimisation potential in the opera-
tional processes is examined. Internal Audit helps the
organisation reach the relevant objectives by evaluating, by
means of a systematic approach, the effectiveness of risk
management, the control system and the governance pro-
cesses including all relevant key functions within the Com-
pany and improving them through corresponding proposals.
In order to standardise the handling of significant risks
throughout the entire Group, there are Group-wide
guidelines which also are an instrument of risk monitoring.
The local management is responsible for the imple-
mentation of these guidelines in the individual VIG
companies.
In the context of the audit of the financial statements the
auditor takes into consideration the internal control system
to the extent it is important for the preparation of the con-
solidated financial statements. The auditor of the consoli-
dated financial statements also assesses the functional ad-
equacy of the risk management pursuant to rule 83 of the
Code of Corporate Governance.
CAPITAL, SHARE, VOTING AND CONTROL RIGHTS
A
ND ASSOCIATED AGREEMENTS
The share capital amounts to EUR 132,887,468.20. It is
divided into 128,000,000 no-par value ordinary bearer shares
with voting rights, each representing an equal portion of the
share capital.
The number of shares issued has remained unchanged
since the previous financial year. More detailed information
on the anticipatory resolutions and the authorisations of the
Managing Board from the Annual General Meeting pursuant
to Section 267 (3a) in connection with Section 243a (1) UGB
can be found in Note 24.10. Consolidated shareholders’
equity starting on page 256 the notes to the consolidated
financial statements.
CORPORATE GOVERNANCE
VIG Holding is committed to applying and complying w
ith
the Austrian Code of Corporate Governance and publishes
the consolidated Corporate Governance Report on the
Vienna Insurance Group website at: group.vig/en/corporate-
governance.
OUTSOURCING DISCLOSURES
Below the outsourcing disclosures pursuant to Section 156 (1)
Z1 in connection with Section 109 of the Austrian Insurance
Supervision Act (VAG) are explained in detail:
Holding
VIG Holding decided to have IT services provided by Group-
internal and external service providers. twinformatics GmbH
provides IT services for the Austrian VIG insurance com-
panies (including VIG Holding) and, if necessary, arranges
sub-outsourcing in compliance with legal and regulatory
requirements and in coordination with the VIG insurance
companies in Austria.
Since 1 January 2023, IT services in VIG Group (including VIG
Holding) have also been provided by VIG IT - Digital Solutions
GmbH (hereinafter “VIG IT-DS”). VIG IT-DS was founded by
VIG Holding to further strengthen the focus on providing IT
services throughout the Group and to have these provided by
a company specialised in this area. An outsourcing agreement
approved by the Austrian Financial Market Authority FMA was
also concluded with VIG IT-DS, in which the final responsibility
of VIG IT-DS (with twinformatics as a major sub-service
provider) for all VIG solutions (SAP NewGL, IFRS 9/17,
Readsoft and some smaller supporting applications) is agreed.
Beyond this, VIG Holding has not outsourced any critical or
important functions or operating activities.
118
Group Annual Report 2024
Group
Throughout the VIG Insurance Group, critical or important
functions or operating activities were outsourced in the fol-
lowing areas in particular:
• IT (in particular operation and maintenance of operating
modules, data centre operation, application development
services, data storage, support services, Cyber Defense
Center)
• Claims handling
The four governance functions were individually outsourced
by the operating insurance companies of VIG Insurance
Group, in particular the internal audit and actuarial functions
and related activities.
While critical or important functions or activities from the IT
area and claims handling were outsourced primarily to
Group-external service providers, governance functions
were outsourced in VIG Insurance Group both to Group-
internal and Group-external service providers.
The notification and approval of the outsourcing of critical
or important functions or activities to or by the local super-
visory authorities was undertaken by the relevant com-
panies as needed in compliance with the respective nation-
ally applicable legal provisions.
Expected de
velopment and risks of the Group
SIGNIFICANT RISKS AND UNCERTAINTIES
Risk management is firmly anchored in the management
culture of the Company and builds on a clearly defined
conservative risk policy, extensive risk expertise, a devel-
oped risk toolkit and risk-based Managing Board decisions.
The detailed risk report of VIG Insurance Group including
the impact of climate change and the associated climate
risks can be found the notes to the consolidated financial
statements in the section “Risk strategy and risk man-
agement” starting on page 261.
For information on the financial instruments used for invest-
ments, reference is made to Note 2. Financial assets and
liabilities as well as other balance sheet items evaluated
according to IFRS 9 starting on page 171, Note 24.4. Fi-
nancial instruments starting on page 242 and the risk report
starting on page 261.
EXPECTED DEVELOPMENT – OUTLOOK FOR 2025
ECONOMIC OUTLOOK
For 2025, the Erste Group analysts expect moderate
g
rowth of 1.0% for the Eurozone. This is firstly because the
real income situation of households should continue to
improve thanks to falling inflation. Secondly, the global cycle
of interest rate cuts should increase the appetite for invest-
ment in the major economic areas and the expected fiscal
stimulus should take effect.
Growth of 0.4% is forecast for Austria. In Central and
Eastern Europe, too, consumer spending can be expected
to rise as inflation continues to weaken – or at least remain
stable – making a positive contribution to growth. A slight
acceleration in economic development can also be ex-
pected as a result of higher investment activity, driven by
the resumption of projects funded by the new budgetary
period (EU’s multiannual financial framework 2021–2027).
Overall, real GDP growth of 2.6% is expected in the Central
and Eastern Europe region in 2025.
A significant risk to growth lies in the current international
geopolitical situation and the effects of US trade policy,
which harbour additional downside risks to the Eurozone
economic outlook. In addition, budget consolidation is
planned in Austria and other countries in the region.
From a monetary policy perspective, there should be sup-
port for economic development, even if there could be
pauses in the cycle of interest rate cuts over the course of
the year. With core inflation on a downward trend, inflation
in the Eurozone is expected to reach 1.9% by the end of 2025
This should give the ECB enough leeway for further interest
rate cuts in 2025. Inflation trends may not develop in a com-
pletely linear fashion across Central and Eastern Europe. In
particular, administered prices could contribute to a some-
what more persistent inflation trend and thus also have a
delaying effect on the interest rate policy of local central banks.
Group management report | Consolidated financial statements | Management report | Annual financial statement s | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
119
OUTLOOK FOR THE INSURANCE GROUP
Vienna Insurance Group with its approximately 30,000 em-
ployees, as the market leader in Central and Eastern Europe,
is excellently positioned to take full advantage of the oppor-
tunities in this region and the associated long-term growth
potential. The VIG 25 strategic programme, which runs until
the end of 2025, is being consistently pursued. At the same
time, the Managing Board has begun discussing the follow-
up programme. A compact set of principles and corporate
values, individual strategies for the local Group companies,
even stronger reinforcement of cooperation (CO
3
) and
Group-wide programmes will form a robust and sustainable
framework for the long-term success of the Group.
As in the past, shareholders will participate in the Com-
pany’s success. In the context of the dividend policy, which
sets the previous year’s dividend as the minimum dividend
for the next year and anticipates a continuous increase de-
pending on the operational result development, the Man-
aging Board proposes to the relevant bodies an increase of
the dividend from EUR 1.40 to EUR 1.55 per share for the fi-
nancial year 2024. This corresponds to an increase of 10.7%
year-on-year.
Vienna Insurance Group has so far been able to manage
the effects of the challenging geopolitical and macro-
economic conditions very well and is well prepared for the
volatile environment. On this basis, the positive results de-
velopment is expected to continue in the 2025 financial year.
VIG’s diversification across markets and lines of business,
the customer focus of its companies and its capital strength
provide excellent conditions for continuing its successful
course. VIG’s management therefore aims to achieve a
result before taxes within a range of EUR 950 million and
EUR 1 billion for the financial year 2025.
Vienna, 25 March 2025
The Managing Board:
Hartwig Löger
General Manager (CEO),
Chairman of the Managing Board
Peter Höfinger
Deputy General Manager,
Deputy Chairman of the Managing Board
Liane Hirner
CFRO, Member of
the Managing Board
Gerhard Lahner
COO, Member of
the Managing Board
Gábor Lehel
CIO, Member of
the Managing Board
Harald Riener
Member of
the Managing Board
Christoph Rath
Deputy Member of
the Managing Board
120 Annual Financial Report 2024
Group m
anagement report | Consolidated financial statements | Management report | Annual financial statements | Service information
121
Consolidated
financial
statements
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
VIG CONSOLIDATED FINANCIAL STATEMENTS
ACCORDING TO THE INTERNATIONAL FINANCIAL
REPORTING STANDARDS (IFRS)
31/12/2024
Reporting period 01/01–31/12/2024
Consolidated balance sheet as of
previous reporting date 31/12/2023
Consolidated income statement as
of previous reporting period 01/01–31/12/2023
Currency EUR
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Primary financial statements
The numbers next to the individual items of the consolidated income statement, the consolidated statement of comprehensive income, the consolidated statement of financial position and the consolidated shareholders’ equity refer to detailed disclosures on the net assets, financial position and results of operations starting on page 128 or the notes on accounting policies starting on page 225.
CONSOLIDATED INCOME STATEMENT
Consolidated income statement | Notes | 2024 | 2023 |
in EUR ‘000 | |||
Insurance service result | 1., 24.3. | ||
Insurance service revenue ‑ issued business | |||
Insurance service expenses ‑ issued business | - | - | |
Insurance service result ‑ reinsurance held | - | - | |
Total capital investment result | |||
Investment result | 2., 9., 24.4. | ||
Interest revenues using the effective interest rate method | 2.8. | ||
Realised gains and losses from financial assets measured at AC | 2.9. | - | |
Impairment losses incl. reversal gains on financial instruments | - | - | |
Other result from financial instruments | |||
Income and expenses from investment property | 4., 9., 24.7. | ||
Insurance finance result | 1., 24.3. | - | - |
Insurance finance result ‑ issued business | - | - | |
Insurance finance result ‑ reinsurance held | |||
Result from associated consolidated companies | 6. | ||
Finance result | - | - | |
Finance income | |||
Finance costs | 9. | - | - |
Other income and expenses | 15.3. | - | - |
Other income | |||
Other expenses | - | - | |
Business operating result | |||
Impairments of goodwill | 3., 24.5. | - | - |
Impairments of intangible assets | 13., 24.6. | - | - |
Reversal of impairments from intangible assets | 13., 24.6. | ||
Result before taxes | |||
Taxes | 11.1., 24.13. | - | - |
Result for the period | |||
Attributable to shareholders and other stakeholders of the parent company | |||
Non-controlling interests | |||
Earnings per share* (in EUR) | 17. | ||
*The undiluted earnings per share equals the diluted earnings per share (in EUR).
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Consolidated statement of comprehensive income | Notes | 2024 | 2023 |
in EUR ‘000 | |||
Result for the period | |||
Other comprehensive income (OCI) | 10.4. | ||
Items that will not be reclassifiable to profit or loss in subsequent periods | - | - | |
Actuarial gains and losses from provisions for employee benefits | - | - | |
Equity instruments designated measured at FVtOCI | - | ||
Result from the FV-valuation | - | ||
Unrealised gains and losses acc. to IFRS 17 | - | - | |
Deferred taxes | |||
Items that will be reclassifiable to profit or loss in subsequent periods | |||
Exchange rate changes through equity | - | ||
Unrealised gains and losses from debt instruments measured at FVtOCI | |||
Unrealised gains and losses acc. to IFRS 17 | - | - | |
Share of other reserves of associated consolidated companies | - | ||
Deferred taxes | - | - | |
Comprehensive income for the period | |||
Attributable to shareholders and other stakeholders of the parent company | |||
Non-controlling interests | |||
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
CONSOLIDATED BALANCE SHEET
Assets | Notes | 31/12/2024 | 31/12/2023 |
in EUR ‘000 | |||
Cash and cash equivalents | 2. | ||
Financial assets | 2., 16., 24.4. | ||
Receivables | 7.1., 24.12. | ||
Current tax assets | |||
Investments in associates | 16. | ||
Insurance contracts assets issued | 1., 24.3. | ||
Reinsurance contracts assets held | 1., 24.3. | ||
Investment property | 4., 16., 24.7. | ||
Owner-occupied property and equipment | 5., 16., 24.8. | ||
Other assets | |||
Goodwill | 3., 24.5. | ||
Intangible assets | 13., 24.6. | ||
Deferred tax asset | 11.2., 24.13. | ||
Right-of-use assets | |||
Total | |||
Liabilities and consolidated shareholders' equity | Notes | 31/12/2024 | 31/12/2023 adjusted* |
in EUR ‘000 | |||
Liabilities and other payables | 7.2., 24.12. | ||
Current tax liabilities | |||
Financial liabilities | 2., 8., 16., 24.4. | ||
Other liabilities | |||
Insurance contracts liabilities issued | 1., 24.3. | ||
Reinsurance contracts liabilities held | 1., 24.3. | ||
Provisions | 12., 24.11. | ||
Deferred tax liabilities | 11.2., 24.13. | ||
Consolidated shareholders' equity | 10., 24.10. | ||
Attributable to shareholders and other stakeholders of the parent company | |||
Capital stock and capital reserves | 10.3. | ||
Retained earnings | |||
Other reserves | 10.4. | - | - |
Non-controlling interests | |||
Total | |||
*For details refer to chapter Error in presentation or disclosure on page 130.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
CONSOLIDATED STATEMENT OF CHANGE IN EQUITY
*The above subtotal equals the equity attributable to shareholders and other capital providers of the parent company.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
CONSOLIDATED CASH FLOW STATEMENT
Change in cash and cash equivalents | 31/12/2024 | 31/12/2023 adjusted |
in EUR ‘000 | ||
Result for the period | ||
Amortisation, valuation and exchange rate differences of financial instruments | - | - |
(Reversal of) Impairment of goodwill and intangible assets | ||
Scheduled depreciation of intangible assets | ||
Scheduled depreciation of right-of-use assets | ||
Scheduled depreciation of tangible assets (excluding property) | ||
Result from disposal of subsidiaries | - | |
Result from the disposals and depreciation of property | ||
Result from the disposal of financial assets incl. derivatives | - | |
Share of profit of at equity accounted companies | - | - |
Dividends received included in the result for the period | - | - |
Income tax expenses | ||
Adjusted result for the period | ||
Changes in: | - | |
Financial assets incl. derivatives | - | - |
(Re-)Insurance contracts | ||
Contract assets and liabilities (IFRS 15) | - | |
Right-of-use assets and lease receivables and liabilities | - | |
Receivables and liabilities (excl. leases) | - | |
Intangible assets | ||
Property | - | - |
Other balance sheet items (other assets, tangible assets (excl. property) and other liabilities) | - | - |
Provisions | ||
Other non-cash income and expenses* | - | - |
Paid and received income tax | - | - |
Cash flow from operating activities | - | |
Received interest | ||
Received dividends | ||
Payments for the acquisition of subsidiaries | - | |
Cash inflow from sale of financial instruments | ||
Payments for the acquisition of financial instruments | - | - |
Cash inflow from the sale of property | ||
Payments for the acquisition of property | - | - |
Cash inflow from the sale of intangible assets | ||
Payments for the acquisition of intangible assets | - | - |
Cash flow from investment activities | ||
Payments from subordinated liabilities | - | - |
Cash inflows from financial liabilities excl. subordinated liabilities and lease liabilities | ||
Payments from financial liabilities excl. subordinated liabilities and lease liabilities | - | - |
Payments from lease liabilities | - | - |
Payments for the acquisition of non-controlling interests | - | |
Paid dividends | - | - |
Paid interest | - | - |
Cash flow from financing activities | - | - |
Change in cash and cash equivalents | - | |
*The non-cash income and expenses are primarily exchange rate changes.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Development | 31/12/2024 | 31/12/2023 |
in EUR ‘000 | ||
Cash and cash equivalents at beginning of period* | ||
Change in cash and cash equivalents | - | |
Changes in scope of consolidation | ||
Exchange rate differences on cash and cash equivalents | - | - |
Cash and cash equivalents at end of period* | ||
*The cash and cash equivalents at the beginning and end of the reporting period correspond to the item cash and cash equivalents in assets and include liquid money and daily maturing cash.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Notes
General information and principles of significant accounting policies
General information
Principles of significant accounting policies
Legislation
Rounding and currency shown
Amounts were commercially rounded and, where not indicated otherwise, are shown in thousands of euros (EUR ’000). Calculations, however, are done using exact amounts, which may lead to rounding differences.
Going concern
The present consolidated financial statements were prepared on a going concern basis in accordance with IAS 1.25 and IAS 1.26. The Managing Board made this assessment primarily based on the solid capital resources, positive business development, risk-averse capital investment and the conservative reinsurance strategy.
Estimates and discretionary decisions
Consolidated financial statements prepared in accordance with IFRS require that the Managing Board make discretionary assessments and specify assumptions regarding future developments (estimates). These estimates and discretionary decisions could have a material effect on the recognition and value of assets and liabilities, the disclosure of other obligations and the reporting of income and expenses.
The book values of the items at the end of the reporting period are shown in the consolidated balance sheet on page 124 and in the respective Notes. Sensitivity analyses of assets and liabilities are also presented in the Notes related to the items.
Details regarding the areas with a higher degree of judgement as well as greater complexity, or areas where assumptions and estimates are of critical importance, can be found in Note 23. Material estimates and discretionary decisions beginning on page 218.
Accounting policies
The significant accounting policies used are presented in Note 24. Accounting policies starting on page 225. Unless otherwise stated under “Initial application of standards”, the policies described were applied consistently during the reporting periods presented in these financial statements.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Balance sheet items | Measurement principle |
Insurance contracts issued | Premium Allocation Approach (PAA), Variable Fee Approach (VFA), General Measurement Model (GMM) |
Reinsurance contracts held | Premium Allocation Approach (PAA), General Measurement Model (GMM) |
Financial instruments | Measured at AC Measured at FVtOCI (with and without recycling) Measured at FVtPL |
Goodwill | Amortised cost less accumulated impairment losses |
Intangible assets | Amortised cost and production cost |
Investments in associates | Net present value of the investment's equity or the lower recoverable amount |
Investment property | Amortised cost and production cost |
Owner-occupied property and equipment | Amortised cost and production cost |
Receivables and Liabilities | At amortised cost |
Taxes | |
Income taxes | In the amount in which a receivable from/liability to the tax authorities is expected, based on the tax rates applicable on the reporting date or in the near future |
Deferred taxes | Undiscounted income taxes recoverable in future periods based on tax rates at the settlement date |
Provisions | |
Provisions for pensions and similar obligations | Actuarial valuation using the projected unit credit method |
Provisions for other employee benefits | Actuarial valuation using the projected unit credit method |
Miscellaneous provisions | Present value of the future settlement amount |
Lease | At amortised cost |
Other assets and liabilities | At amortised cost |
Initial application of standards
Unless otherwise stated, the standards that are to be applied for the first time and are relevant to the Group have no or no material impact on the present consolidated financial statements.
Standards applicable that are used for the first time in the Group Annual Report | |
Amendments to IFRS 16 | Lease liabilities for sale and leaseback transactions |
Amendments to IAS 1 | Classification of liabilities as current or non-current |
Amendments to IAS 7 | Disclosures: Supplier Finance Arrangements |
Error in presentation or disclosure
Accounting policy for IFRS 17 insurance contracts
In particular, following the introduction of new accounting standards, the Group is conducting more detailed analyses of the figures recorded in the balance sheet in order to improve data quality and reporting accuracy. In the course of these quality-enhancing audits, data inconsistencies were found at Viennalife (Türkiye) in insurance contracts valued using the VFA. These deviations can be traced to the first-time consolidation of Viennalife (Türkiye) and are due to incorrect data being supplied for the fair values of underlying assets. Control over the company was acquired well after the final accounting standards (IFRS 9 and IFRS 17) were published and after the implementation project had been started. Due to this discrepancy in time, Viennalife (Türkiye) was unable to complete the comprehensive preparation process within the Group, meaning that it was not possible to identify the data inconsistencies and subject them to comprehensive analysis until the 2024 financial year was under way. Furthermore, Viennalife (Türkiye) undertakes a large part of its profitable life insurance business in a currency other than its functional currency (e.g. US dollars). The ongoing refinement of the accounting policies for such foreign currency contracts was also taken into account in the amounts to be corrected.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
The degree of error was determined on the basis of approximate calculations in the subledger’s test system in order to validate the differences on the reporting date. It has not been possible to reliably determine the correction amounts for individual periods in the past back to the introduction of IFRS 9 and IFRS 17, i.e. because of the allocation of the underlying assets in the VFA and the resulting development of the fair values.
The opening balance sheet of the current reporting period has been adjusted for the amounts attributable to the cumulative corrections of previous periods because, for the reasons stated above, it is not possible to reliably allocate the correction from previous years to the correct period. In the relevant IFRS 17 reconciliation tables and the statement of change in equity, the sum of these differences is shown in the IAS 8 error correction line between 31 December 2023 and the opening balance on 1 January 2024 in order to disclose the corrections of previous periods for each balance sheet item.
Consolidated balance sheet – Liabilities and consolidated shareholders' equity | 01/01/2024 |
in EUR ‘000 | |
Insurance contracts liabilities issued | -6,623 |
Liability for Remaining Coverage (LRC) | -6,623 |
Deferred tax liabilities | 1,985 |
Consolidated shareholders' equity | 4,638 |
Retained earnings | 24,268 |
Unrealised gains and losses acc. to IFRS 17 (non-recyclable) | -19,630 |
Consolidated balance sheet
In the consolidated balance sheet as of 31 December 2023, the items Retained earnings and Other reserves were shown incorrectly on page 60 of the German Group Annual Report 2023 due to a technical error. In the consolidated statement of change in equity on page 61, the items were reported with the correct amounts. Both the equity attributable to shareholders and other stakeholders of the parent company and the equity attributable to non-controlling interests were shown correctly in the consolidated balance sheet.
Liabilities and consolidated shareholders' equity | 31/12/2023 as published | 31/12/2023 adjusted |
in EUR ‘000 | ||
Attributable to shareholders and other stakeholders of the parent company | 5,892,277 | 5,892,277 |
Capital stock and capital reserves | 2,541,890 | 2,541,890 |
Retained earnings | 3,564,382 | 3,490,112 |
Other reserves | -213,995 | -139,725 |
Non-controlling interests | 137,453 | 137,453 |
Consolidated shareholders' equity | 6,029,730 | 6,029,730 |
Data for underlying assets
On the basis of the quality improvement analyses mentioned above, it was furthermore established that the published consolidated figures of the underlying assets for 2023 also included those financial instruments that serve to cover insurance contracts valued using the GMM. In accordance with IFRS 17, however, only data relating to the VFA business needed to be published.
The previous year’s figures shown in Note 1.5. Underlying assets of direct profit participating contracts starting on page 162 and in the reconciliation table on page 164 for assets valued using the FVA for the first time with no effect on income have been adjusted for these corrections. The figures published in the consolidated income statement and the consolidated balance sheet in the Annual Report 2023 are not affected.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Additional disclosures
Taxes
Change in tax rates
In the Czech Republic, the corporate income tax rate as of 1 January 2024 was increased from 19% to 21%. This caused current taxes to increase by around EUR 4.0 million and deferred tax assets to increase by around EUR 13.3 million during the reporting period.
Additional tax on insurance premiums in Hungary
As already published in the previous year’s annual report, an additional insurance tax has been introduced for insurance companies operating in Hungary. This additional tax is a progressive tax based on gross insurance premiums for both life and non-life insurance lines of business for the period 1 July 2022 to 31 December 2025. The extension until the end of 2025 was announced in November 2024.
Based on the current values of Union Biztosító and Alfa (Hungary), an amount of EUR 52.2 million was to be paid for the period from 1 January 2024 to 31 December 2024. According to the available budgeted figures, VIG can expect an additional tax burden amounting to approximately EUR 29.7 million for the 2025 financial year.
The war in Ukraine
On 24 February 2022, the armed forces of the Russian Federation invaded Ukraine, starting a war between these two countries. For the Group’s subsidiaries in Ukraine, the principal direct risks are the wellbeing of employees and the maintenance of operational business activities (e.g. office infrastructure, energy, communications, IT security). As part of sustainable risk management, a number of risks that could materialise for the Group are addressed and mitigated to the extent possible.
Business operations in Ukraine
VIG is represented in the Ukrainian market by three insurance companies that held around EUR 137.0 million in assets as of 31 December 2024. The impairments recognised as of 31 December 2023 for expected credit losses on government bonds and bank deposits remain, and were adjusted only slightly to EUR 53.3 million. This step creates the best possible starting position for the reconstruction after the end of the war for VIG Insurance Group. The Ukraine CGU does not hold any intangible assets that are subject to an impairment test in accordance with IAS 36.
The situation for VIG insurance companies operating in Ukraine, which are mainly active in the western regions of the country, is largely unchanged compared to the previous year and business operations are directly affected only marginally. The companies have now adapted to the altered conditions caused by the war and can react very quickly to any changes. The activities of the Ukrainian insurance companies have not demonstrated any significant impact that can be attributed to the sanctions against Russia. As of the editorial deadline, the Ukrainian insurance companies have been able to maintain operations despite the ongoing challenging conditions. Due to the current difficult situation in Ukraine, VIG is regularly examining whether the Ukrainian companies continue to satisfy the requirements as a going concern.
Russian bonds
At the balance sheet date, VIG Insurance Group held Russian corporate bonds with a book value of EUR 0.7 million and a nominal value of EUR 5.1 million (2023 financial year: book value of EUR 19.2 million and nominal value of EUR 62.1 million) on its books, for which no active market is basically available. Nevertheless, bonds with a nominal value of EUR 45.0 million (previous year: EUR 100.9 million) were sold during the course of 2024 and a further EUR 12.0 million was repaid. The profit from the sale and repayment recorded in the consolidated income statement amounts to EUR 8.4 million in the current financial year (previous year: EUR 21.2 million).
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Expected Credit Loss (ECL) of financial assets
KTM and Signa corporate bonds in the reportable segment Austria
In the course of the 2024 financial year, an ECL of EUR 9.9 million (nominal value: EUR 49.4 million) was taken into account due to Signa’s insolvency. KTM also filed for insolvency; an ECL of EUR 28.8 million (nominal value: EUR 35.0 million) was consequently recorded because of this and due to the uncertain solvency of KTM’s parent company, Pierer Mobility AG, from VIG’s perspective.
Political risk in Türkiye
The current uncertain political situation in Türkiye led to a significant increase in the credit risk. This prompted a change from Stage 1 to Stage 2, which necessitated the additional recording of an ECL of EUR 28.8 million (nominal value: EUR 769.2 million).
Risks related to the geopolitical situation and the current macroeconomic environment
Despite the ongoing war of aggression against Ukraine, the macroeconomic situation in Europe improved in the reporting year. After a prolonged period of stagnation, the EU economy returned to moderate growth while inflation continued to fall. Cautiously dynamic development in Eastern Europe contrasts with a very sluggish Germany, which is likely to face major structural change, particularly in the automotive industry. Given this tense situation, Austria was unable to escape Germany’s negative performance.
The coming year is characterised by a very high degree of uncertainty around geopolitical developments as a direct result of the US presidency. At this stage it is difficult to predict how the emerging rise in protectionism will affect economic indicators (inflation, trade balances, etc.). Overall, higher volatility is expected on the main capital markets, which makes this development one of the most significant risks for VIG.
Other geopolitical tensions, such as the war in Israel and Gaza, could also have an impact on the financial markets. These risks are also being addressed within the scope of sustained risk management. At the balance sheet date, VIG held Israeli government and corporate bonds with a book value of approx. EUR 53.6 million (EUR 78.5 million) and a nominal value of approx. EUR 57.0 million (EUR 86.1 million) on its books.
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Segment reporting
Operating segments
The operating segments were determined based on internal reporting to the chief operating decision maker. The individual countries in which the Group operates via insurance business and pension scheme/fund business were identified as operating segments. The VIG Holding Managing Board, as chief operating decision maker, regularly assesses its performance based on these segments and decides on the allocation of resources to them. The focus on countries reflects the respective country responsibilities of the members of the VIG Holding Managing Board.
Estonia, Latvia and Lithuania are reported to the Managing Board as the operating segment Baltic states and Albania and Kosovo as the operating segment Albania incl. Kosovo.
Reportable segments
• Austria (including the branch offices of Wiener Städtische in Slovenia and Italy (2024 closed in accordance with regulatory law)),
• Czech Republic,
• Poland,
• Extended CEE,
• Special Markets and
• Group Functions (including the branch offices of VIG Holding in Sweden, Norway and Denmark as well as those of VIG Re in Germany and France).
Extended CEE
The reportable segment Extended CEE includes the operating segments of Albania incl. Kosovo, Baltic states, Bosnia-Herzegovina, Bulgaria, Croatia, Hungary, Moldova, North Macedonia, Romania, Serbia, Slovakia and Ukraine. The reportable segment is aggregated in accordance with the aggregation criteria according to IFRS 8.14.
Special Markets
The reportable segment Special Markets corresponds to the all other segments category in accordance with IFRS 8.16 and includes the countries of Georgia, Germany, Liechtenstein and Türkiye.
Group Functions
The Managing Board steers the insurance business separately from the coordination functions in the individual countries. As a result, the individual operating segments include only those companies which are related to the insurance and pension scheme/fund business. Therefore, companies that do not distribute or assist in the distribution of insurance products (with the exception of the pension scheme/fund business), do not perform loss assessments or claims settlements, or are a service company working for the Group are presented in the reportable segment Group Functions rather than in the country in which they have their registered head office.
More specifically, this means that the reportable segment Group Functions includes, among others, VIG Holding, VIG Re, Wiener Re, VIG Fund, corporate IT service providers, an asset management company and intermediate holding companies.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Basis of revenues
The scope of business operations includes the insurance business with retail and corporate customers. The product range includes, among others, motor third party liability and motor own damage insurance, accident insurance, liability insurance, fire and natural hazards insurance as well as travel insurance.
Also a variety of life and health insurance products are offered to individuals or groups. These include, for example, supplementary health insurance, nursing care insurance as well as endowment insurance, term life insurance and investment-oriented products. The products are sold in all markets via sales employees, banks, brokers or agents, among other channels.
VIG Holding primarily focuses on steering tasks for the Group. Beyond that, VIG Holding acts as a reinsurer within VIG Insurance Group as well as in the international corporate business. The Group’s own reinsurance, VIG Re, is a successful provider of reinsurance products both for the Group’s own insurance companies as well as for external partners.
Information on major customers
VIG Insurance Group does not depend to a great extent on individual customers, as per the definition of IFRS 8.34. The 10 largest customer groups account for 1.8% of the Group’s written premiums. Companies who, according to VIG Insurance Group’s knowledge, are under common control are combined into customer groups.
General disclosures
Transfer prices between reportable segments are determined in the same manner as transactions with third parties, based on market prices. In the income statement intragroup cross-reportable-segment transactions are eliminated in the consolidation column. Exempted are dividends and intercompany results which are eliminated in the respective reportable segment. Balances arising from the elimination of cross-reportable-segment assets and liabilities are reported in VIG Holding and therefore within the reportable segment Group Functions.
Valuation basis for performance
The financial performance of the reportable segments is assessed using different control parameters. The operating IFRS business result is used as a standardised basis. Accordingly, for reasons of comparability, the income statement by reportable segments is reconciled with the consolidated income statement and only the main items are presented. The same applies in equal measure to the balance sheet by reportable segments and consolidated balance sheet.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Consolidated income statement by reportable segment
Austria | Czech Republic | Poland | Extended CEE | |||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
in EUR ‘000 | ||||||||
Insurance service result | 390,636 | 419,575 | 234,837 | 246,148 | 61,029 | 49,330 | 265,661 | 215,909 |
Insurance service revenue ‑ issued business | 3,543,242 | 3,307,356 | 2,078,225 | 2,040,071 | 1,373,271 | 1,224,497 | 3,599,456 | 3,148,077 |
Insurance service expenses ‑ issued business | -3,045,815 | -2,654,265 | -1,895,244 | -1,615,623 | -1,348,049 | -1,096,197 | -3,070,456 | -2,730,702 |
Insurance service result ‑ reinsurance held | -106,791 | -233,516 | 51,856 | -178,300 | 35,807 | -78,970 | -263,339 | -201,466 |
Total capital investment result | 115,116 | 144,478 | 42,494 | 46,706 | 36,832 | 28,443 | 139,258 | 71,530 |
Investment result | 820,847 | 1,010,854 | 143,621 | 183,108 | 125,001 | 130,074 | 404,884 | 293,611 |
Income and expenses from investment property | 40,501 | 26,252 | -8 | -1,040 | 457 | 339 | 2,204 | 226 |
Insurance finance result | -772,439 | -908,340 | -101,119 | -135,362 | -88,626 | -101,970 | -267,907 | -222,307 |
Result from associated consolidated companies | 26,207 | 15,712 | 0 | 0 | 0 | 0 | 77 | 0 |
Finance result | -29,475 | -47,424 | -3,124 | -2,920 | -2,047 | -1,012 | -8,249 | -8,270 |
Other income and expenses | -140,199 | -130,752 | -63,069 | -71,958 | -30,674 | -44,003 | -120,659 | -96,418 |
Business operating result | 336,078 | 385,877 | 211,138 | 217,976 | 65,140 | 32,758 | 276,011 | 182,751 |
Impairments of goodwill | 0 | 0 | 0 | 0 | 0 | -159 | -116,327 | -75,480 |
Impairments of intangible assets | 0 | -1 | 0 | 0 | -84 | -3,231 | 0 | -6,264 |
Reversal of impairments from intangible assets | 0 | 0 | 0 | 0 | 0 | 0 | 8 | 0 |
Result before taxes | 336,078 | 385,876 | 211,138 | 217,976 | 65,056 | 29,368 | 159,692 | 101,007 |
Taxes | -51,870 | -79,355 | -46,810 | -24,311 | -17,418 | -13,381 | -60,670 | -48,462 |
Result for the period | 284,208 | 306,521 | 164,328 | 193,665 | 47,638 | 15,987 | 99,022 | 52,545 |
Special Markets | Group Functions | Consolidation | Total | |||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
in EUR ‘000 | ||||||||
Insurance service result | 58,368 | 65,705 | 175,820 | 198,873 | 0 | 12,559 | 1,186,351 | 1,208,099 |
Insurance service revenue ‑ issued business | 924,201 | 617,638 | 1,780,879 | 1,652,249 | -1,160,797 | -1,068,063 | 12,138,477 | 10,921,825 |
Insurance service expenses ‑ issued business | -700,854 | -560,300 | -1,863,911 | -1,327,773 | 1,267,499 | 719,561 | -10,656,830 | -9,265,299 |
Insurance service result ‑ reinsurance held | -164,979 | 8,367 | 258,852 | -125,603 | -106,702 | 361,061 | -295,296 | -448,427 |
Total capital investment result | 87,134 | 42,833 | 42,425 | 12,435 | -27,610 | -62,170 | 435,649 | 284,255 |
Investment result | 337,574 | 274,198 | 79,673 | 50,780 | -27,554 | -49,557 | 1,884,046 | 1,893,068 |
Income and expenses from investment property | 235 | 543 | 17,290 | 5,579 | -56 | -55 | 60,623 | 31,844 |
Insurance finance result | -250,675 | -231,908 | -55,255 | -44,678 | 0 | -12,558 | -1,536,021 | -1,657,123 |
Result from associated consolidated companies | 0 | 0 | 717 | 754 | 0 | 0 | 27,001 | 16,466 |
Finance result | -2,122 | -577 | -62,152 | -86,233 | 28,342 | 47,944 | -78,827 | -98,492 |
Other income and expenses | -54,813 | -33,945 | -134,818 | -142,463 | -732 | 1,667 | -544,964 | -517,872 |
Business operating result | 88,567 | 74,016 | 21,275 | -17,388 | 0 | 0 | 998,209 | 875,990 |
Impairments of goodwill | 0 | 0 | 0 | 0 | 0 | 0 | -116,327 | -75,639 |
Impairments of intangible assets | 0 | -9,778 | 0 | -8,388 | 0 | 0 | -84 | -27,662 |
Reversal of impairments from intangible assets | 0 | 0 | 0 | 0 | 0 | 0 | 8 | 0 |
Result before taxes | 88,567 | 64,238 | 21,275 | -25,776 | 0 | 0 | 881,806 | 772,689 |
Taxes | -23,007 | -26,603 | -15,165 | -4,331 | 0 | 0 | -214,940 | -196,443 |
Result for the period | 65,560 | 37,635 | 6,110 | -30,107 | 0 | 0 | 666,866 | 576,246 |
Further information by reportable segment can be found in Note 9. Details on the consolidated income statement on page 188 onward.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Consolidated balance sheet by Reportable segments
Assets | Austria | Czech Republic | Poland | Extended CEE | ||||
31/12/2024 | 31/12/2023 | 31/12/2024 | 31/12/2023 | 31/12/2024 | 31/12/2023 | 31/12/2024 | 31/12/2023 | |
in EUR ‘000 | ||||||||
Cash and cash equivalents | 526,704 | 443,840 | 87,503 | 22,870 | 59,279 | 23,271 | 212,909 | 222,730 |
Financial assets | 21,492,120 | 21,799,897 | 3,140,497 | 3,472,630 | 2,719,746 | 2,257,297 | 7,096,468 | 6,427,772 |
Receivables | 278,996 | 250,590 | 52,302 | 61,220 | 19,702 | 14,713 | 130,400 | 95,852 |
Current tax assets | 8,418 | 9,448 | 4,987 | 32,420 | 7,538 | 4,321 | 4,214 | 10,686 |
Investments in associates | 189,913 | 178,073 | 0 | 0 | 152 | 150 | 6,577 | 0 |
Insurance contracts assets issued | 1,129 | -1,607 | 217,867 | 178,842 | 7,194 | 6,369 | 71,763 | 51,420 |
Reinsurance contracts assets held | 389,677 | 413,522 | 146,042 | 167,070 | 97,032 | 89,127 | 159,848 | 169,046 |
Investment property | 2,127,905 | 2,058,031 | 35,082 | 35,864 | 23,486 | 20,842 | 210,663 | 191,011 |
Owner-occupied property and equipment | 210,369 | 194,660 | 163,770 | 178,014 | 17,407 | 19,814 | 174,226 | 171,861 |
Other assets | 51,690 | 56,593 | 21,566 | 21,529 | 5,911 | 3,674 | 32,618 | 29,426 |
Goodwill | 301,716 | 301,716 | 448,108 | 456,516 | 153,735 | 151,450 | 325,793 | 451,156 |
Intangible assets | 271,013 | 273,171 | 72,976 | 55,587 | 106,978 | 32,810 | 192,883 | 181,019 |
Deferred tax asset | 195,920 | 219,364 | 165,907 | 174,166 | 614 | 0 | 46,610 | 46,963 |
Right-of-use assets | 93,967 | 80,720 | 61,719 | 57,669 | 5,678 | 7,624 | 37,557 | 37,867 |
Total | 26,139,537 | 26,278,018 | 4,618,326 | 4,914,397 | 3,224,452 | 2,631,462 | 8,702,529 | 8,086,809 |
Assets | Special Markets | Group Functions | Total | |||
31/12/2024 | 31/12/2023 | 31/12/2024 | 31/12/2023 | 31/12/2024 | 31/12/2023 | |
in EUR ‘000 | ||||||
Cash and cash equivalents | 176,533 | 174,812 | 685,196 | 670,584 | 1,748,124 | 1,558,107 |
Financial assets | 2,846,346 | 2,420,502 | 2,342,002 | 1,612,141 | 39,637,179 | 37,990,239 |
Receivables | 34,391 | 26,464 | 44,177 | 46,833 | 559,968 | 495,672 |
Current tax assets | 22,330 | 13,126 | 192,795 | 165,717 | 240,282 | 235,718 |
Investments in associates | 0 | 0 | 8,119 | 7,399 | 204,761 | 185,622 |
Insurance contracts assets issued | 21,101 | 9,243 | -19,180 | -14,776 | 299,874 | 229,491 |
Reinsurance contracts assets held | 155,145 | 141,159 | 1,195,014 | 828,374 | 2,142,758 | 1,808,298 |
Investment property | 10,696 | 10,902 | 570,433 | 535,440 | 2,978,265 | 2,852,090 |
Owner-occupied property and equipment | 16,146 | 12,913 | 47,144 | 41,897 | 629,062 | 619,159 |
Other assets | 19,515 | 9,355 | 23,578 | 20,998 | 154,878 | 141,575 |
Goodwill | 0 | 0 | 10,527 | 10,527 | 1,239,879 | 1,371,365 |
Intangible assets | 15,487 | 11,726 | 37,533 | 36,048 | 696,870 | 590,361 |
Deferred tax asset | 7,785 | 381 | 35,227 | 42,413 | 452,063 | 483,287 |
Right-of-use assets | 8,890 | 6,583 | 4,674 | 2,353 | 212,485 | 192,816 |
Total | 3,334,365 | 2,837,166 | 5,177,239 | 4,005,948 | 51,196,448 | 48,753,800 |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Liabilities and consolidated shareholders' equity | Austria | Czech Republic | Poland | Extended CEE | ||||
31/12/2024 | 31/12/2023 | 31/12/2024 | 31/12/2023 | 31/12/2024 | 31/12/2023 | 31/12/2024 | 31/12/2023 | |
in EUR ‘000 | ||||||||
Liabilities and other payables | 333,609 | 339,693 | 346,469 | 321,904 | 86,717 | 92,420 | 191,299 | 195,104 |
Current tax liabilities | 95,959 | 105,856 | 3,279 | 428 | 413 | 0 | 11,674 | 6,151 |
Financial liabilities | 467,184 | 526,805 | 64,166 | 81,637 | 65,290 | 8,660 | 39,517 | 39,669 |
Other liabilities | 39,635 | 35,931 | 6,539 | 5,131 | 6,908 | 1,673 | 25,317 | 21,595 |
Insurance contracts liabilities issued | 23,368,637 | 23,370,578 | 2,927,744 | 2,851,071 | 2,551,364 | 2,004,101 | 6,643,062 | 5,993,171 |
Reinsurance contracts liabilities held | 15,107 | 15,359 | 120 | -13,647 | 671 | 1,091 | -3,636 | -1,811 |
Provisions | 381,233 | 384,499 | 38,867 | 35,977 | 26,934 | 22,582 | 173,816 | 118,158 |
Deferred tax liabilities | 237,210 | 232,433 | 44,038 | 32,887 | 51,328 | 39,658 | 54,209 | 47,476 |
Subtotal | 24,938,574 | 25,011,154 | 3,431,222 | 3,315,388 | 2,789,625 | 2,170,185 | 7,135,258 | 6,419,513 |
Liabilities and consolidated shareholders' equity | Special Markets | Group Functions | Total | |||
31/12/2024 | 31/12/2023 | 31/12/2024 | 31/12/2023 | 31/12/2024 | 31/12/2023 | |
in EUR ‘000 | ||||||
Liabilities and other payables | 101,094 | 63,003 | 97,630 | 100,551 | 1,156,818 | 1,112,675 |
Current tax liabilities | 31,398 | 14,342 | 43,378 | 30,239 | 186,101 | 157,016 |
Financial liabilities | 9,460 | 6,862 | 1,728,523 | 1,732,688 | 2,374,140 | 2,396,321 |
Other liabilities | 2,501 | 1,192 | 17,809 | 13,435 | 98,709 | 78,957 |
Insurance contracts liabilities issued | 2,853,753 | 2,464,887 | 1,253,503 | 1,120,284 | 39,598,063 | 37,804,092 |
Reinsurance contracts liabilities held | 24,996 | 18,349 | 5,224 | 4,840 | 42,482 | 24,181 |
Provisions | 16,772 | 15,795 | 155,479 | 171,609 | 793,101 | 748,620 |
Deferred tax liabilities | 27,137 | 32,781 | 19,789 | 16,973 | 433,711 | 402,208 |
Subtotal | 3,067,111 | 2,617,211 | 3,321,335 | 3,190,619 | 44,683,125 | 42,724,070 |
Consolidated shareholders' equity | 6,513,323 | 6,029,730 | ||||
Total | 51,196,448 | 48,753,800 | ||||
The segment assets and liabilities cannot be netted to determine the segment shareholders’ equity.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Explanatory notes to the net assets, financial position and operating results
1. Insurance contracts
The accounting policies used are presented in Note 24.3. (Re-)Insurance contracts starting on page 227 and the qualitative description of the risks is presented in the chapter Risk strategy and risk management starting on page 261.
Items on the assets side were shown without a sign and items on the liabilities side with a negative sign.
The portfolio status is valued prior to any consolidation steps and is decisive for whether a portfolio of insurance contracts is recognised as an asset or as a liability. After excluding intercompany transactions, a valuation is not carried out again. The same applies to determining the loss component and the accompanying allocation of “onerous” or “non-onerous”.
Consolidation effects recognised in profit or loss are included in the item “Insurance service expenses from reinsurance contracts held” insofar as they arise from the elimination of intragroup reinsurance contracts. Essentially, intragroup reinsurance contracts are valued using the PAA, which is why such consolidation effects are allocated to this valuation model in the following tables.
For better readability, the short versions of IFRS 17 descriptions are used.
Short description | Long description |
AIC | Assets for Incurred Claims |
ARC | Assets for Remaining Coverage |
CSM | Contractual Service Margin |
FCF | Fulfilment Cash Flows |
FRA | Full Retrospective Approach |
FVA | Fair Value Approach |
GMM | General Measurement Model |
LC | Loss component |
LIC | Liability for Incurred Claims |
LoReCo | Loss Recovery Component |
LRC | Liability for Remaining Coverage |
PAA | Premium Allocation Approach |
PVFCF | Present Value of Future Cash Flows |
RA | Risk Adjustment |
VFA | Variable Fee Approach |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
1.1. Overview
Composition | 31/12/2024 | |||
PAA | GMM | VFA | Total | |
in EUR ‘000 | ||||
Insurance contracts assets issued | 5,536 | 288,903 | 1,585 | 299,874 |
Assets for Remaining Coverage (ARC) | 17,018 | 395,528 | 1,692 | 414,238 |
Estimates of the PVFCF | 934,469 | 9,766 | ||
Risk Adjustment | -254,153 | -2,579 | ||
Contractual Service Margin | -284,788 | -5,495 | ||
Assets for Incurred Claims | -11,482 | -106,625 | -107 | -118,214 |
Insurance acquisition costs recognised as assets | 3,850 | |||
Reinsurance contracts assets held | 1,302,514 | 840,244 | 2,142,758 | |
Assets for Remaining Coverage (ARC) | 102,365 | -135,107 | -32,742 | |
Estimates of the PVFCF | -206,665 | |||
Risk Adjustment | 5,476 | |||
Contractual Service Margin | 66,082 | |||
Assets for Incurred Claims | 1,200,149 | 975,351 | 2,175,500 | |
Insurance contracts liabilities issued | -8,859,155 | -3,247,996 | -27,424,599 | -39,598,063 |
Liability for Remaining Coverage (LRC) | -2,155,654 | -2,522,340 | -26,600,897 | -31,278,891 |
Estimates of the PVFCF | -1,705,668 | -20,957,067 | ||
Risk Adjustment | -162,208 | -984,540 | ||
Contractual Service Margin | -654,464 | -4,659,290 | ||
Liability for Incurred Claims | -6,703,501 | -725,656 | -823,702 | -8,252,859 |
As a liability recognised insurance cash flow | -66,313 | |||
Reinsurance contracts liabilities held | -18,688 | -23,794 | -42,482 | |
Liability for Remaining Coverage (LRC) | -34,520 | -20,700 | -55,220 | |
Estimates of the PVFCF | -35,960 | |||
Risk Adjustment | 472 | |||
Contractual Service Margin | 14,788 | |||
Liability for Incurred Claims | 15,832 | -3,094 | 12,738 | |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Composition | 31/12/2023 | |||
PAA | GMM | VFA | Total | |
in EUR ‘000 | ||||
Insurance contracts assets issued | -5,597 | 229,916 | 1,384 | 229,491 |
Assets for Remaining Coverage (ARC) | 17,945 | 314,238 | 1,404 | 333,587 |
Estimates of the PVFCF | 824,480 | 6,599 | ||
Risk Adjustment | -240,463 | -1,542 | ||
Contractual Service Margin | -269,779 | -3,653 | ||
Assets for Incurred Claims | -23,542 | -84,322 | -20 | -107,884 |
Insurance acquisition costs recognised as assets | 3,788 | |||
Reinsurance contracts assets held | 1,257,432 | 550,866 | 1,808,298 | |
Assets for Remaining Coverage (ARC) | 67,558 | -102,806 | -35,248 | |
Estimates of the PVFCF | -169,030 | |||
Risk Adjustment | 5,889 | |||
Contractual Service Margin | 60,335 | |||
Assets for Incurred Claims | 1,189,874 | 653,672 | 1,843,546 | |
Insurance contracts liabilities issued | -7,841,483 | -3,014,823 | -26,896,421 | -37,804,092 |
Liability for Remaining Coverage (LRC) | -1,845,696 | -2,368,596 | -26,072,494 | -30,286,786 |
Estimates of the PVFCF | -1,725,833 | -19,974,708 | ||
Risk Adjustment | -148,464 | -981,722 | ||
Contractual Service Margin | -494,299 | -5,116,064 | ||
Liability for Incurred Claims | -5,995,787 | -646,227 | -823,927 | -7,465,941 |
As a liability recognised insurance cash flow | -51,365 | |||
Reinsurance contracts liabilities held | 8,924 | -33,105 | -24,181 | |
Liability for Remaining Coverage (LRC) | -3,630 | -31,587 | -35,217 | |
Estimates of the PVFCF | -59,851 | |||
Risk Adjustment | 2,053 | |||
Contractual Service Margin | 26,211 | |||
Liability for Incurred Claims | 12,554 | -1,518 | 11,036 | |
1.2. Assumptions used
Cost of capital and confidence level
The cost of capital rate used for risk adjustment in the financial year 2024 amounts to 6.00% (2023: 6.00%).
If there are local legal requirements that require a different cost of capital rate, this may differ from the above for individual companies. In the current financial year it was the case for the Ukrainian insurance companies. In the previous year there were no requirements that would have required a deviation.
The risk adjustment for life, health and non-life insurance contracts corresponds to a confidence level of average 79.93% (previous year: average 79.51%).
The confidence level is calculated using an ultimate view and is net of reinsurance.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Discount rate
Spot rates1 | 31/12/2024 | 31/12/2023 | ||||||||||
1 year | 3 years | 5 years | 10 years | 20 years | 30 years | 1 year | 3 years | 5 years | 10 years | 20 years | 30 years | |
in % | ||||||||||||
ALL | 2.24 | 2.09 | 2.14 | 2.27 | 2.26 | 2.38 | 3.36 | 2.44 | 2.32 | 2.39 | 2.41 | 2.52 |
BAM | 2.19 | 2.04 | 2.09 | 2.22 | 2.21 | 2.34 | 3.31 | 2.39 | 2.27 | 2.34 | 2.36 | 2.48 |
BGN | 2.19 | 2.04 | 2.09 | 2.22 | 2.21 | 2.34 | 3.31 | 2.39 | 2.27 | 2.34 | 2.36 | 2.48 |
CHF | 0.05 | 0.06 | 0.17 | 0.38 | 0.89 | 1.24 | 1.17 | 1.10 | 1.05 | 1.16 | 1.49 | 1.71 |
CZK | 3.67 | 3.53 | 3.56 | 3.73 | 3.82 | 3.73 | 5.18 | 3.68 | 3.41 | 3.38 | 3.44 | 3.45 |
EUR | 2.24 | 2.09 | 2.14 | 2.27 | 2.26 | 2.38 | 3.36 | 2.44 | 2.32 | 2.39 | 2.41 | 2.52 |
EUR (Croatia)2 | 2.55 | 2.30 | 2.41 | 2.73 | 2.91 | 3.01 | 3.36 | 2.63 | 2.61 | 2.83 | 3.07 | 3.17 |
GBP | 4.46 | 4.15 | 4.04 | 4.07 | 4.30 | 4.23 | 4.74 | 3.67 | 3.35 | 3.28 | 3.43 | 3.35 |
GEL | 2.24 | 2.09 | 2.14 | 2.27 | 2.43 | 2.61 | 14.85 | 13.14 | 12.33 | 12.07 | 11.47 | 10.03 |
HUF | 5.68 | 6.15 | 6.36 | 6.52 | 6.99 | 6.51 | 6.30 | 5.93 | 5.71 | 5.78 | 6.00 | 5.70 |
MDL | 2.24 | 2.09 | 2.14 | 2.27 | 2.26 | 2.38 | 3.36 | 2.44 | 2.32 | 2.39 | 2.41 | 2.52 |
MKD | 2.24 | 2.09 | 2.14 | 2.27 | 2.26 | 2.38 | 3.36 | 2.44 | 2.32 | 2.39 | 2.41 | 2.52 |
PLN | 4.97 | 5.22 | 5.49 | 5.78 | 5.34 | 4.84 | 4.95 | 4.83 | 4.84 | 5.10 | 4.94 | 4.59 |
RON | 6.67 | 7.07 | 7.27 | 7.25 | 6.39 | 5.60 | 6.03 | 5.99 | 6.05 | 6.14 | 5.67 | 5.12 |
RSD | 3.76 | 3.66 | 4.00 | 5.13 | 5.34 | 4.90 | 5.09 | 5.22 | 5.45 | 6.84 | 7.00 | 6.20 |
TRY | 41.71 | 34.94 | 30.07 | 23.70 | 17.88 | 14.33 | 39.34 | 31.17 | 24.78 | 21.36 | 19.14 | 15.84 |
UAH | 15.36 | 15.87 | 14.95 | 11.01 | 7.72 | 6.80 | 17.16 | 19.14 | 17.47 | 11.18 | 7.28 | 6.46 |
USD | 4.18 | 4.06 | 4.02 | 4.07 | 4.10 | 3.84 | 4.76 | 3.72 | 3.50 | 3.45 | 3.46 | 3.23 |
1Without illiquidity adjustment
2Under certain conditions, the Croatian Insurance Bureau permits the use of a specially calculated interest rate generated on the basis of the EUR bonds of the Croatian National Bank. That is why two different EUR interest rates are presented in the table above.
Illiquidity adjustment | 31/12/2024 | 31/12/2023 |
in basis points | ||
Albania | 43 | 41 |
Bosnia-Herzegovina | 56 | 56 |
Bulgaria | 56 | 59 |
Germany | 48 | 56 |
Estonia | 43 | 41 |
Georgia | 43 | 40 |
Kosovo | 43 | 41 |
Croatia | 21 | 28 |
Latvia | 43 | 41 |
Liechtenstein | 27 | 39 |
Lithuania | 43 | 41 |
North Macedonia | 43 | 41 |
Moldova | 43 | 41 |
Austria | 39 | 40 |
Poland | 61 | 69 |
Romania | 32 | 35 |
Serbia | 200 | 200 |
Slovakia | 52 | 40 |
Czech Republic | 29 | 32 |
Türkiye | 44 | 54 |
Ukraine | 159 | 229 |
Hungary | 62 | 52 |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
1.3. Insurance contracts issued
Development by balance sheet item
Development – insurance contracts issued | 2024 | |||||
All measurement models | LRC / ARC | LIC / AIC | Total | |||
Excl. LC | LC | Contracts not measured under PAA | Contracts measured at PAA | |||
PVFCF | RA | |||||
in EUR ‘000 | ||||||
Assets as of 31/12 of the previous year | 342,579 | -8,993 | -84,342 | -23,172 | -370 | 225,702 |
Liabilities as of 31/12 of the previous year | -30,227,056 | -59,730 | -1,470,154 | -5,727,808 | -267,979 | -37,752,727 |
Net book value as of 31/12 of the previous year | -29,884,477 | -68,723 | -1,554,496 | -5,750,980 | -268,349 | -37,527,025 |
IAS 8 error correction | 6,623 | 0 | 0 | 0 | 0 | 6,623 |
Net book value as of 01/01 | -29,877,854 | -68,723 | -1,554,496 | -5,750,980 | -268,349 | -37,520,402 |
Insurance service revenue | 12,138,477 | 12,138,477 | ||||
insurance service expenses | -3,069,761 | -36,341 | -1,380,420 | -6,165,306 | -5,002 | -10,656,830 |
Investment components | 2,997,877 | -2,991,705 | -6,172 | 0 | 0 | |
Insurance finance result* | -1,266,361 | -1,841 | -118,095 | -227,085 | -8,996 | -1,622,378 |
Unrealised gains and losses acc. to IFRS 17 | -113,603 | 0 | -7,311 | -33,085 | -84 | -154,083 |
Total changes in the statement of comprehensive income | 10,686,629 | -38,182 | -4,497,531 | -6,431,648 | -14,082 | -294,814 |
Exchange rate differences | 166,235 | 1,413 | 8,092 | 37,386 | 1,877 | 215,003 |
Changes in scope of consolidation | -468,608 | 0 | -8,060 | 0 | 0 | -476,668 |
Total fulfilment cash flows | -11,281,359 | 0 | 4,395,905 | 5,720,990 | 0 | -1,164,464 |
Other movements (transfers, modifications, etc.) | 22,834 | -7,038 | 0 | -10,058 | -119 | 5,619 |
Net book value as of 31/12 | -30,752,123 | -112,530 | -1,656,090 | -6,434,310 | -280,673 | -39,235,726 |
Assets as of 31/12 | 427,667 | -13,429 | -106,732 | -11,386 | -96 | 296,024 |
Liabilities as of 31/12 | -31,179,790 | -99,101 | -1,549,358 | -6,422,924 | -280,577 | -39,531,750 |
*Includes exchange rate differences of EUR – 116,198,000
Development – insurance contracts issued | 2023 | |||||
All measurement models | LRC / ARC | LIC / AIC | Total | |||
Excl. LC | LC | Contracts not measured under PAA | Contracts measured at PAA | |||
PVFCF | RA | |||||
in EUR ‘000 | ||||||
Assets as of 31/12 of the previous year = assets as of 01/01 | 208,090 | -7,707 | -67,660 | -2,383 | -50 | 130,290 |
Liabilities as of 31/12 of the previous year = liabilities as of 01/01 | -29,288,729 | -73,174 | -1,356,712 | -5,345,181 | -246,619 | -36,310,415 |
Net book value as of 31/12 of the previous year = value as of 01/01 | -29,080,639 | -80,881 | -1,424,372 | -5,347,564 | -246,669 | -36,180,125 |
Insurance service revenue | 10,921,826 | 10,921,826 | ||||
insurance service expenses | -2,686,302 | 13,517 | -1,408,876 | -5,184,335 | 696 | -9,265,300 |
Investment components | 2,960,205 | -2,950,099 | -10,106 | 0 | ||
Insurance finance result* | -992,748 | -1,652 | -497,648 | -191,574 | -15,129 | -1,698,751 |
Unrealised gains and losses acc. to IFRS 17 | -928,606 | 0 | -9,622 | -129,383 | 0 | -1,067,611 |
Total changes in the statement of comprehensive income | 9,274,375 | 11,865 | -4,866,245 | -5,515,398 | -14,433 | -1,109,836 |
Exchange rate differences | 173,163 | 293 | 20,518 | 21,046 | -7,247 | 207,773 |
Total fulfilment cash flows | -10,251,377 | 0 | 4,715,602 | 5,090,936 | 0 | -444,839 |
Net book value as of 31/12 | -29,884,478 | -68,723 | -1,554,497 | -5,750,980 | -268,349 | -37,527,027 |
Assets as of 31/12 | 342,579 | -8,993 | -84,342 | -23,172 | -370 | 225,702 |
Liabilities as of 31/12 | -30,227,056 | -59,730 | -1,470,154 | -5,727,808 | -267,979 | -37,752,727 |
*Includes exchange rate differences of EUR -74,524,000
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Development – insurance contracts issued | 2024 | ||||
Premium Allocation Approach | LRC / ARC | LIC / AIC | Total | ||
Excl. LC | LC | PVFCF | RA | ||
in EUR ‘000 | |||||
Assets as of 31/12 of the previous year = assets as of 01/01 | 17,945 | 0 | -23,172 | -370 | -5,597 |
Liabilities as of 31/12 of the previous year = liabilities as of 01/01 | -1,836,695 | -9,001 | -5,727,808 | -267,979 | -7,841,483 |
Net book value as of 31/12 of the previous year = value as of 01/01 | -1,818,750 | -9,001 | -5,750,980 | -268,349 | -7,847,080 |
Insurance service revenue | 9,578,096 | 9,578,096 | |||
insurance service expenses | -2,594,653 | -33,885 | -6,165,306 | -5,002 | -8,798,846 |
Incurred claims and other insurance service expenses | -651,816 | -5,659,760 | -6,311,576 | ||
Losses of onerous contracts and reversals of those losses | -33,885 | -33,885 | |||
Changes fulfilment cash flows relating to LIC | -505,546 | -5,002 | -510,548 | ||
Amortisation of insurance acquisition costs | -1,942,837 | -1,942,837 | |||
Investment components | 6,172 | 0 | -6,172 | 0 | 0 |
Insurance finance result* | 411 | 0 | -227,085 | -8,996 | -235,670 |
Unrealised gains and losses acc. to IFRS 17 | 0 | 0 | -33,085 | -84 | -33,169 |
Total changes in the statement of comprehensive income | 6,990,026 | -33,885 | -6,431,648 | -14,082 | 510,411 |
Exchange rate differences | 15,955 | -79 | 37,386 | 1,877 | 55,139 |
Total fulfilment cash flows | -7,298,706 | 0 | 5,720,990 | 0 | -1,577,716 |
Received premiums | -9,836,208 | 33,557 | -9,802,651 | ||
Claims and other insurance service expenses paid | 5,687,433 | 5,687,433 | |||
Insurance acquisition costs | 2,537,502 | 2,537,502 | |||
Other movements (transfers, modifications, etc.) | 15,804 | 0 | -10,058 | -119 | 5,627 |
Net book value as of 31/12 | -2,095,671 | -42,965 | -6,434,310 | -280,673 | -8,853,619 |
Assets as of 31/12 | 17,018 | 0 | -11,386 | -96 | 5,536 |
Liabilities as of 31/12 | -2,112,689 | -42,965 | -6,422,924 | -280,577 | -8,859,155 |
*Includes exchange rate differences of EUR -1,138,000
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Development – insurance contracts issued | 2023 | ||||
Premium Allocation Approach | LRC / ARC | LIC / AIC | Total | ||
Excl. LC | LC | PVFCF | RA | ||
in EUR ‘000 | |||||
Assets as of 31/12 of the previous year = assets as of 01/01 | 8,502 | 0 | -2,383 | -50 | 6,069 |
Liabilities as of 31/12 of the previous year = liabilities as of 01/01 | -1,683,360 | -5,254 | -5,345,181 | -246,619 | -7,280,414 |
Net book value as of 31/12 previous of the year = value as of 01/01 | -1,674,858 | -5,254 | -5,347,564 | -246,669 | -7,274,345 |
Insurance service revenue | 8,531,488 | 8,531,488 | |||
insurance service expenses | -2,350,065 | -3,644 | -5,184,335 | 696 | -7,537,348 |
Incurred claims and other insurance service expenses | -603,987 | -5,053,578 | -5,657,565 | ||
Losses of onerous contracts and reversals of those losses | -3,644 | -3,644 | |||
Changes fulfilment cash flows relating to LIC | -130,757 | 696 | -130,061 | ||
Amortisation of insurance acquisition costs | -1,746,078 | -1,746,078 | |||
Investment components | 10,106 | -10,106 | 0 | ||
Insurance finance result* | 213 | -191,574 | -15,129 | -206,490 | |
Unrealised gains and losses acc. to IFRS 17 | 0 | -129,383 | -129,383 | ||
Total changes in the statement of comprehensive income | 6,191,742 | -3,644 | -5,515,398 | -14,433 | 658,267 |
Exchange rate differences | 126,470 | -103 | 21,046 | -7,247 | 140,166 |
Total fulfilment cash flows | -6,462,103 | 0 | 5,090,936 | 0 | -1,371,167 |
Received premiums | -8,872,233 | -8,872,233 | |||
Claims and other insurance service expenses paid | 5,090,936 | 5,090,936 | |||
Insurance acquisition costs | 2,410,130 | 2,410,130 | |||
Other movements (transfers, modifications, etc.) | 0 | ||||
Net book value as of 31/12 | -1,818,749 | -9,001 | -5,750,980 | -268,349 | -7,847,079 |
Assets as of 31/12 | 17,945 | 0 | -23,172 | -370 | -5,597 |
Liabilities as of 31/12 | -1,836,695 | -9,001 | -5,727,808 | -267,979 | -7,841,483 |
*Includes exchange rate differences of EUR -2,709,000
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Development – insurance contracts issued | 2024 | |||
General Measurement Model | LRC / ARC | LIC / AIC | Total | |
Excl. LC | LC | |||
in EUR ‘000 | ||||
Assets as of 31/12 previous of the year = assets as of 01/01 | 323,230 | -8,993 | -84,322 | 229,915 |
Liabilities as of 31/12 of the previous year = liabilities as of 01/01 | -2,341,749 | -26,847 | -646,227 | -3,014,823 |
Net book value as of 31/12 of the previous year = value as of 01/01 | -2,018,519 | -35,840 | -730,549 | -2,784,908 |
Insurance service revenue | 1,179,919 | 1,179,919 | ||
insurance service expenses | -268,839 | -6,358 | -650,485 | -925,682 |
Incurred claims and other insurance service expenses | -117,780 | -558,356 | -676,136 | |
Losses of onerous contracts and reversals of those losses | -6,358 | -6,358 | ||
Changes fulfilment cash flows relating to LIC | -92,129 | -92,129 | ||
Amortisation of insurance acquisition costs | -151,059 | -151,059 | ||
Investment components | 455,465 | -455,465 | 0 | |
Insurance finance result* | -105,175 | -1,740 | -15,043 | -121,958 |
Unrealised gains and losses acc. to IFRS 17 | -27,178 | 0 | -7,311 | -34,489 |
Total changes in the statement of comprehensive income | 1,234,192 | -8,098 | -1,128,304 | 97,790 |
Exchange rate differences | 24,244 | 714 | 1,832 | 26,790 |
Changes in scope of consolidation | -74,947 | 0 | -2,092 | -77,039 |
Total fulfilment cash flows | -1,248,547 | 0 | 1,026,832 | -221,715 |
Received premiums | -1,858,155 | -1,858,155 | ||
Claims and other insurance service expenses paid | 1,026,832 | 1,026,832 | ||
Insurance acquisition costs | 609,608 | 609,608 | ||
Other movements (transfers, modifications, etc.) | -11 | 0 | 0 | -11 |
Net book value as of 31/12 | -2,083,588 | -43,224 | -832,281 | -2,959,093 |
Assets as of 31/12 | 408,957 | -13,429 | -106,625 | 288,903 |
Liabilities as of 31/12 | -2,492,545 | -29,795 | -725,656 | -3,247,996 |
*Includes exchange rate differences of EUR -56,610,000
Under the item Changes in scope of consolidation, EUR 76,041,000 came from the first-time consolidation of Aegon Life and EUR 998,000 came from the transfer of the Aegon portfolio in Romania.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Development – insurance contracts issued | 2023 | |||
General Measurement Model | LRC / ARC | LIC / AIC | Total | |
Excl. LC | LC | |||
in EUR ‘000 | ||||
Assets as of 31/12 of the previous year = assets as of 01/01 | 197,061 | -7,707 | -67,658 | 121,696 |
Liabilities as of 31/12 of the previous year = liabilities as of 01/01 | -2,142,191 | -44,971 | -551,412 | -2,738,574 |
Net book value as of 31/12 of the previous year = value as of 01/01 | -1,945,130 | -52,678 | -619,070 | -2,616,878 |
Insurance service revenue | 1,006,668 | 1,006,668 | ||
insurance service expenses | -157,893 | 18,970 | -678,099 | -817,022 |
Incurred claims and other insurance service expenses | -46,659 | -504,389 | -551,048 | |
Losses of onerous contracts and reversals of those losses | 18,970 | 18,970 | ||
Changes fulfilment cash flows relating to LIC | -173,710 | -173,710 | ||
Amortisation of insurance acquisition costs | -111,234 | -111,234 | ||
Investment components | 471,285 | -471,285 | 0 | |
Insurance finance result* | -126,196 | -1,801 | -139 | -128,136 |
Unrealised gains and losses acc. to IFRS 17 | -141,989 | -9,622 | -151,611 | |
Total changes in the statement of comprehensive income | 1,051,875 | 17,169 | -1,159,145 | -90,101 |
Exchange rate differences | 76,176 | -330 | -486 | 75,360 |
Total fulfilment cash flows | -1,201,442 | 0 | 1,048,151 | -153,291 |
Received premiums | -1,669,613 | -1,669,613 | ||
Claims and other insurance service expenses paid | 1,048,151 | 1,048,151 | ||
Insurance acquisition costs | 468,171 | 468,171 | ||
Net book value as of 31/12 | -2,018,521 | -35,839 | -730,550 | -2,784,910 |
Assets as of 31/12 | 323,230 | -8,993 | -84,322 | 229,915 |
Liabilities as of 31/12 | -2,341,749 | -26,847 | -646,227 | -3,014,823 |
*Includes exchange rate differences of EUR -95,859,000
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Development – insurance contracts issued | 2024 | |||
Variable Fee Approach | LRC / ARC | LIC / AIC | Total | |
Excl. LC | LC | |||
in EUR ‘000 | ||||
Assets as of 31/12 of the previous year | 1,404 | 0 | -20 | 1,384 |
Liabilities as of 31/12 of the previous year | -26,048,612 | -23,882 | -823,927 | -26,896,421 |
Net book value as of 31/12 of the previous year | -26,047,208 | -23,882 | -823,947 | -26,895,037 |
IAS 8 error correction | 6,623 | 0 | 0 | 6,623 |
Net book value as of 01/01 | -26,040,585 | -23,882 | -823,947 | -26,888,414 |
Insurance service revenue | 1,380,462 | 1,380,462 | ||
insurance service expenses | -206,269 | 3,902 | -729,935 | -932,302 |
Incurred claims and other insurance service expenses | -154,590 | 0 | -728,640 | -883,230 |
Losses of onerous contracts and reversals of those losses | 3,902 | 3,902 | ||
Changes fulfilment cash flows relating to LIC | -1,295 | -1,295 | ||
Amortisation of insurance acquisition costs | -51,679 | -51,679 | ||
Investment components | 2,536,240 | 0 | -2,536,240 | 0 |
Insurance finance result* | -1,161,597 | -101 | -103,052 | -1,264,750 |
Unrealised gains and losses acc. to IFRS 17 | -86,425 | 0 | 0 | -86,425 |
Total changes in the statement of comprehensive income | 2,462,411 | 3,801 | -3,369,227 | -903,015 |
Exchange rate differences | 126,036 | 778 | 6,260 | 133,074 |
Changes in scope of consolidation | -393,661 | 0 | -5,968 | -399,629 |
Total fulfilment cash flows | -2,734,106 | 0 | 3,369,073 | 634,967 |
Received premiums | -3,246,735 | -3,246,735 | ||
Claims and other insurance service expenses paid | 3,369,073 | 3,369,073 | ||
Insurance acquisition costs | 512,629 | 512,629 | ||
Other movements (transfers, modifications, etc.) | 7,041 | -7,038 | 0 | 3 |
Net book value as of 31/12 | -26,572,864 | -26,341 | -823,809 | -27,423,014 |
Assets as of 31/12 | 1,692 | 0 | -107 | 1,585 |
Liabilities as of 31/12 | -26,574,556 | -26,341 | -823,702 | -27,424,599 |
*Includes exchange rate differences of EUR -58,450,000
Under the item Changes in scope of consolidation, EUR 275,202,000 came from the first-time consolidation of Aegon Life and EUR 124,427,000 came from the transfer of the Aegon portfolio in Romania.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Development – insurance contracts issued | 2023 | |||
Variable Fee Approach | LRC / ARC | LIC / AIC | Total | |
Excl. LC | LC | |||
in EUR ‘000 | ||||
Assets as of 31/12 of the previous year = assets as of 01/01 | 2,527 | 0 | -2 | 2,525 |
Liabilities as of 31/12 of the previous year = liabilities as of 01/01 | -25,463,178 | -22,949 | -805,300 | -26,291,427 |
Net book value as of 31/12 of the previous year = value as of 01/01 | -25,460,651 | -22,949 | -805,302 | -26,288,902 |
Insurance service revenue | 1,383,670 | 0 | 0 | 1,383,670 |
insurance service expenses | -178,344 | -1,809 | -730,777 | -910,930 |
Incurred claims and other insurance service expenses | -131,041 | 0 | -740,131 | -871,172 |
Losses of onerous contracts and reversals of those losses | 0 | -1,809 | 0 | -1,809 |
Changes fulfilment cash flows relating to LIC | 0 | 0 | 9,354 | 9,354 |
Amortisation of insurance acquisition costs | -47,303 | 0 | 0 | -47,303 |
Investment components | 2,478,814 | 0 | -2,478,814 | 0 |
Insurance finance result* | -866,765 | 149 | -497,509 | -1,364,125 |
Unrealised gains and losses acc. to IFRS 17 | -786,617 | 0 | 0 | -786,617 |
Total changes in the statement of comprehensive income | 2,030,758 | -1,660 | -3,707,100 | -1,678,002 |
Exchange rate differences | -29,483 | 726 | 21,004 | -7,753 |
Total fulfilment cash flows | -2,587,832 | 0 | 3,667,451 | 1,079,619 |
Received premiums | -3,086,382 | -3,086,382 | ||
Claims and other insurance service expenses paid | 3,667,451 | 3,667,451 | ||
Insurance acquisition costs | 498,550 | 498,550 | ||
Net book value as of 31/12 | -26,047,208 | -23,883 | -823,947 | -26,895,038 |
Assets as of 31/12 | 1,404 | 0 | -20 | 1,384 |
Liabilities as of 31/12 | -26,048,612 | -23,882 | -823,927 | -26,896,421 |
*Includes exchange rate differences of EUR 24,044,000
Development by evaluation component: Insurance contracts that are not valued using the PAA
Developments of LRC / ARC and LIC / AIC by measurement components | 2024 | |||
All measurement models that are not measured under PAA | PVFCF | RA | CSM | Total |
in EUR ‘000 | ||||
Assets as of 31/12 of the previous year | 752,221 | -247,491 | -273,432 | 231,298 |
Liabilities as of 31/12 of the previous year | -23,116,620 | -1,184,262 | -5,610,363 | -29,911,245 |
Net book value as of 31/12 of the previous year | -22,364,399 | -1,431,753 | -5,883,795 | -29,679,947 |
IAS 8 error correction | 0 | 0 | 6,623 | 6,623 |
Net book value as of 01/01 | -22,364,399 | -1,431,753 | -5,877,172 | -29,673,324 |
Changes that relate to current services | 5,354 | 149,871 | 589,951 | 745,176 |
Changes that relate to future services | 369,364 | -166,812 | -228,896 | -26,344 |
Changes that relate to past services | -33,170 | 16,732 | 0 | -16,438 |
Insurance finance result | -1,274,665 | -35,491 | -76,552 | -1,386,708 |
Unrealised gains and losses acc. to IFRS 17 | -114,102 | -6,812 | 0 | -120,914 |
Total changes in the statement of comprehensive income | -1,047,219 | -42,512 | 284,503 | -805,228 |
Exchange rate differences | 91,433 | 16,077 | 52,359 | 159,869 |
Changes in scope of consolidation | -402,124 | -8,119 | -66,425 | -476,668 |
Total fulfilment cash flows | 413,252 | 413,252 | ||
Other movements (transfers, modifications, etc.) | -2,588 | -118 | 2,698 | -8 |
Net book value as of 31/12 | -23,311,645 | -1,466,425 | -5,604,037 | -30,382,107 |
Assets as of 31/12 | 844,835 | -264,064 | -290,283 | 290,488 |
Liabilities as of 31/12 | -24,156,480 | -1,202,361 | -5,313,754 | -30,672,595 |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Developments of LRC / ARC and LIC / AIC by measurement components | 2023 | |||
All measurement models that are not measured under PAA | PVFCF | RA | CSM | Total |
in EUR ‘000 | ||||
Assets as of 31/12 of the previous year = assets as of 01/01 | 580,315 | -182,553 | -273,541 | 124,221 |
Liabilities as of 31/12 of the previous year = liabilities as of 01/01 | -22,213,298 | -1,154,159 | -5,662,544 | -29,030,001 |
Net book value as of 31/12 of the previous year = value as of 01/01 | -21,632,983 | -1,336,712 | -5,936,085 | -28,905,780 |
Changes that relate to current services | -548,502 | 149,736 | 612,586 | 213,820 |
Changes that relate to future services | 540,297 | -131,919 | -550,336 | -141,958 |
Changes that relate to past services | 577,968 | 12,557 | 0 | 590,525 |
Insurance finance result | -1,360,733 | -72,494 | -59,033 | -1,492,260 |
Unrealised gains and losses acc. to IFRS 17 | -907,185 | -31,043 | 0 | -938,228 |
Total changes in the statement of comprehensive income | -1,698,155 | -73,163 | 3,217 | -1,768,101 |
Exchange rate differences | 40,411 | -21,878 | 49,073 | 67,606 |
Total fulfilment cash flows | 926,328 | 926,328 | ||
Net book value as of 31/12 | -22,364,399 | -1,431,753 | -5,883,795 | -29,679,947 |
Assets as of 31/12 | 752,221 | -247,491 | -273,432 | 231,298 |
Liabilities as of 31/12 | -23,116,620 | -1,184,262 | -5,610,363 | -29,911,245 |
Developments of LRC / ARC and LIC / AIC by measurement components | 2024 | |||
General Measurement Model | PVFCF | RA | CSM | Total |
in EUR ‘000 | ||||
Assets as of 31/12 of the previous year = assets as of 01/01 | 745,643 | -245,949 | -269,779 | 229,915 |
Liabilities as of 31/12 of the previous year = liabilities as of 01/01 | -2,360,506 | -160,018 | -494,299 | -3,014,823 |
Net book value as of 31/12 of the previous year = value as of 01/01 | -1,614,863 | -405,967 | -764,078 | -2,784,908 |
Changes that relate to current services | 11,378 | 64,062 | 230,373 | 305,813 |
Amount of CSM recognised in profit or loss | 230,373 | 230,373 | ||
Amount of RA for the risk expired recognised in profit or loss | 69,190 | 69,190 | ||
Experience adjustments | 11,378 | -5,128 | 6,250 | |
Changes that relate to future services | 382,962 | -76,844 | -324,939 | -18,821 |
Contracts initially recognised in the period | 440,439 | -109,568 | -348,310 | -17,439 |
Changes in estimates that adjust the CSM | -55,464 | 32,093 | 23,371 | 0 |
Changes in estimates that do not adjust the CSM | -2,013 | 631 | -1,382 | |
Changes that relate to past services | -37,666 | 4,911 | 0 | -32,755 |
Changes in fulfilment cash flows relating to incurred claims | -37,666 | 4,911 | 0 | -32,755 |
Insurance finance result | -38,063 | -16,779 | -67,116 | -121,958 |
Unrealised gains and losses acc. to IFRS 17 | -27,677 | -6,812 | 0 | -34,489 |
Total changes in the statement of comprehensive income | 290,934 | -31,462 | -161,682 | 97,790 |
Exchange rate differences | 5,823 | 5,164 | 15,803 | 26,790 |
Changes in scope of consolidation | -42,150 | -5,594 | -29,295 | -77,039 |
Total fulfilment cash flows | -221,715 | -221,715 | ||
Received premiums | -1,858,155 | -1,858,155 | ||
Claims and other insurance service expenses paid as well as investment components | 1,026,832 | 1,026,832 | ||
Insurance acquisition costs | 609,608 | 609,608 | ||
Other movements (transfers, modifications, etc.) | -11 | 0 | 0 | -11 |
Net book value as of 31/12 | -1,581,982 | -437,859 | -939,252 | -2,959,093 |
Assets as of 31/12 | 835,176 | -261,485 | -284,788 | 288,903 |
Liabilities as of 31/12 | -2,417,158 | -176,374 | -654,464 | -3,247,996 |
Under the item Changes in scope of consolidation, EUR 76,041,000 came from the first-time consolidation of Aegon Life and EUR 998,000 came from the transfer of the Aegon portfolio in Romania.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Developments of LRC / ARC and LIC / AIC by measurement components | 2023 | |||
General Measurement Model | PVFCF | RA | CSM | Total |
in EUR ‘000 | ||||
Assets as of 31/12 of the previous year = assets as of 01/01 | 576,413 | -181,860 | -272,856 | 121,697 |
Liabilities as of 31/12 of the previous year = liabilities as of 01/01 | -2,071,808 | -172,563 | -494,203 | -2,738,574 |
Net book value as of 31/12 of the previous year = value as of 01/01 | -1,495,395 | -354,423 | -767,059 | -2,616,877 |
Changes that relate to current services | -254,149 | 57,960 | 204,484 | 8,295 |
Amount of CSM recognised in profit or loss | 204,484 | 204,484 | ||
Amount of RA for the risk expired recognised in profit or loss | 65,370 | 65,370 | ||
Experience adjustments | -254,149 | -7,410 | -261,559 | |
Changes that relate to future services | 280,695 | -76,197 | -185,974 | 18,524 |
Contracts initially recognised in the period | 318,262 | -95,045 | -233,453 | -10,236 |
Changes in estimates that adjust the CSM | -65,615 | 17,374 | 47,479 | -762 |
Changes in estimates that do not adjust the CSM | 28,048 | 1,474 | 29,522 | |
Changes that relate to past services | 161,885 | 942 | 0 | 162,827 |
Changes in fulfilment cash flows relating to incurred claims | 161,885 | 942 | 0 | 162,827 |
Insurance finance result | -58,618 | -9,210 | -60,308 | -128,136 |
Unrealised gains and losses acc. to IFRS 17 | -120,568 | -31,043 | 0 | -151,611 |
Total changes in the statement of comprehensive income | 9,245 | -57,548 | -41,798 | -90,101 |
Exchange rate differences | 24,578 | 6,004 | 44,779 | 75,361 |
Reclassification to BS items in accordance with IFRS 5 | 0 | 0 | 0 | 0 |
Total fulfilment cash flows | -153,291 | -153,291 | ||
Received premiums | -1,669,613 | -1,669,613 | ||
Claims and other insurance service expenses paid as well as investment components | 1,048,151 | 1,048,151 | ||
Insurance acquisition costs | 468,171 | 468,171 | ||
Net book value as of 31/12 | -1,614,863 | -405,967 | -764,078 | -2,784,908 |
Assets as of 31/12 | 745,643 | -245,949 | -269,779 | 229,915 |
Liabilities as of 31/12 | -2,360,506 | -160,018 | -494,299 | -3,014,823 |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Developments of LRC / ARC and LIC / AIC by measurement components | 2024 | |||
Variable Fee Approach | PVFCF | RA | CSM | Total |
in EUR ‘000 | ||||
Assets as of 31/12 of the previous year | 6,578 | -1,542 | -3,653 | 1,383 |
Liabilities as of 31/12 of the previous year | -20,756,114 | -1,024,244 | -5,116,064 | -26,896,422 |
Net book value as of 31/12 of the previous year | -20,749,536 | -1,025,786 | -5,119,717 | -26,895,039 |
IAS 8 error correction | 0 | 0 | 6,623 | 6,623 |
Net book value as of 01/01 | -20,749,536 | -1,025,786 | -5,113,094 | -26,888,416 |
Changes that relate to current services | -6,024 | 85,809 | 359,578 | 439,363 |
Amount of CSM recognised in profit or loss | 359,578 | 359,578 | ||
Amount of RA for the risk expired recognised in profit or loss | 92,828 | 92,828 | ||
Experience adjustments | -6,024 | -7,019 | -13,043 | |
Changes that relate to future services | -13,598 | -89,968 | 96,043 | -7,523 |
Contracts initially recognised in the period | 255,739 | -61,288 | -196,911 | -2,460 |
Changes in estimates that adjust the CSM | -292,954 | 0 | 292,954 | 0 |
Changes in estimates that do not adjust the CSM | 23,617 | -28,680 | -5,063 | |
Changes that relate to past services | 4,496 | 11,821 | 0 | 16,317 |
Changes in fulfilment cash flows relating to incurred claims | 4,496 | 11,821 | 0 | 16,317 |
Insurance finance result | -1,236,602 | -18,712 | -9,436 | -1,264,750 |
Unrealised gains and losses acc. to IFRS 17 | -86,425 | 0 | 0 | -86,425 |
Total changes in the statement of comprehensive income | -1,338,153 | -11,050 | 446,185 | -903,018 |
Exchange rate differences | 85,610 | 10,913 | 36,556 | 133,079 |
Changes in scope of consolidation | -359,974 | -2,525 | -37,130 | -399,629 |
Total fulfilment cash flows | 634,967 | 634,967 | ||
Received premiums | -3,246,735 | -3,246,735 | ||
Claims and other insurance service expenses paid as well as investment components | 3,369,073 | 3,369,073 | ||
Insurance acquisition costs | 512,629 | 512,629 | ||
Other movements (transfers, modifications, etc.) | -2,577 | -118 | 2,698 | 3 |
Net book value as of 31/12 | -21,729,663 | -1,028,566 | -4,664,785 | -27,423,014 |
Assets as of 31/12 | 9,659 | -2,579 | -5,495 | 1,585 |
Liabilities as of 31/12 | -21,739,322 | -1,025,987 | -4,659,290 | -27,424,599 |
Under the item Changes in scope of consolidation, EUR 275,202,000 came from the first-time consolidation of Aegon Life and EUR 124,427,000 came from the transfer of the Aegon portfolio in Romania.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Developments of LRC / ARC and LIC / AIC by measurement components | 2023 | |||
Variable Fee Approach | PVFCF | RA | CSM | Total |
in EUR ‘000 | ||||
Assets as of 31/12 of the previous year = assets as of 01/01 | 3,902 | -693 | -685 | 2,524 |
Liabilities as of 31/12 of the previous year = liabilities as of 01/01 | -20,141,490 | -981,596 | -5,168,341 | -26,291,427 |
Net book value as of 31/12 of the previous year = value as of 01/01 | -20,137,588 | -982,289 | -5,169,026 | -26,288,903 |
Changes that relate to current services | -294,353 | 91,776 | 408,102 | 205,525 |
Amount of CSM recognised in profit or loss | 408,102 | 408,102 | ||
Amount of RA for the risk expired recognised in profit or loss | 95,720 | 95,720 | ||
Experience adjustments | -294,353 | -3,944 | -298,297 | |
Changes that relate to future services | 259,602 | -55,722 | -364,362 | -160,482 |
Contracts initially recognised in the period | 237,171 | -58,620 | -180,602 | -2,051 |
Changes in estimates that adjust the CSM | 8,618 | 0 | -183,760 | -175,142 |
Changes in estimates that do not adjust the CSM | 13,813 | 2,898 | 16,711 | |
Changes that relate to past services | 416,083 | 11,615 | 0 | 427,698 |
Changes in fulfilment cash flows relating to incurred claims | 416,083 | 11,615 | 427,698 | |
Insurance finance result | -1,302,115 | -63,284 | 1,275 | -1,364,124 |
Unrealised gains and losses acc. to IFRS 17 | -786,617 | 0 | 0 | -786,617 |
Total changes in the statement of comprehensive income | -1,707,400 | -15,615 | 45,015 | -1,678,000 |
Exchange rate differences | 15,833 | -27,882 | 4,294 | -7,755 |
Total fulfilment cash flows | 1,079,619 | 1,079,619 | ||
Received premiums | -3,086,382 | -3,086,382 | ||
Claims and other insurance service expenses paid as well as investment components | 3,667,451 | 3,667,451 | ||
Insurance acquisition costs | 498,550 | 498,550 | ||
Net book value as of 31/12 | -20,749,536 | -1,025,786 | -5,119,717 | -26,895,039 |
Assets as of 31/12 | 6,578 | -1,542 | -3,653 | 1,383 |
Liabilities as of 31/12 | -20,756,114 | -1,024,244 | -5,116,064 | -26,896,422 |
Additional disclosures
Insurance service revenue | 31/12/2024 | 31/12/2023 adjusted | ||||
GMM | VFA | Total | GMM | VFA | Total | |
in EUR ‘000 | ||||||
Amounts relating to the changes in the LRC incl. ARC | 841,409 | 1,079,656 | 1,921,065 | 740,275 | 1,092,646 | 1,832,921 |
Expected insurance service expenses | 511,602 | 712,118 | 1,223,720 | 424,311 | 683,780 | 1,108,091 |
Change in the risk adjustment for nonfinancial risk | 72,751 | 92,828 | 165,579 | 65,370 | 95,720 | 161,090 |
Amount of CSM recognised in profit or loss | 230,373 | 359,578 | 589,951 | 204,484 | 408,102 | 612,586 |
Other amounts | 26,683 | -84,868 | -58,185 | 46,110 | -94,956 | -48,846 |
Amounts relating to recovery of insurance acquisition costs | 338,510 | 300,806 | 639,316 | 266,393 | 291,024 | 557,417 |
Allocation of the portion of premiums that relate to the recovery of insurance acquisition costs | 338,510 | 300,806 | 639,316 | 266,393 | 291,024 | 557,417 |
Total | 1,179,919 | 1,380,462 | 2,560,381 | 1,006,668 | 1,383,670 | 2,390,338 |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Contracts initially recognised in the period | 31/12/2024 | 31/12/2023 | ||||
General Measurement Model | Non-onerous | Onerous | Total | Non-onerous | Onerous | Total |
in EUR ‘000 | ||||||
Own-written | 0 | -17,439 | -17,439 | -7,002 | -3,234 | -10,236 |
Estimates of present value of future cash outflows | -1,992,739 | -182,749 | -2,175,488 | -1,501,615 | -220,586 | -1,722,201 |
Estimates of insurance acquisition costs | -383,882 | -11,581 | -395,463 | -332,238 | -24,679 | -356,917 |
Estimates of present value of other future cash outflows | -1,608,857 | -171,168 | -1,780,025 | -1,169,377 | -195,907 | -1,365,284 |
Estimates of present value of future cash inflows | 2,442,137 | 173,790 | 2,615,927 | 1,817,483 | 222,980 | 2,040,463 |
Risk Adjustment for nonfinancial risks | -101,088 | -8,480 | -109,568 | -89,417 | -5,628 | -95,045 |
Contractual Service Margin | -348,310 | -348,310 | -233,453 | -233,453 | ||
Acquired | -77,039 | 0 | -77,039 | 0 | 0 | 0 |
Estimates of present value of future cash outflows | -147,341 | 0 | -147,341 | 0 | 0 | 0 |
Estimates of present value of other future cash outflows | -147,341 | 0 | -147,341 | 0 | 0 | 0 |
Estimates of present value of future cash inflows | 105,191 | 0 | 105,191 | 0 | 0 | 0 |
Risk Adjustment for nonfinancial risks | -5,594 | 0 | -5,594 | 0 | 0 | 0 |
Contractual Service Margin | -29,295 | -29,295 | 0 | 0 | ||
Contracts initially recognised in the period | 31/12/2024 | 31/12/2023 | ||||
Variable Fee Approach | Non-onerous | Onerous | Total | Non-onerous | Onerous | Total |
in EUR ‘000 | ||||||
Own-written | 0 | -2,460 | -2,460 | -2,537 | 486 | -2,051 |
Estimates of present value of future cash outflows | -2,202,944 | -32,022 | -2,234,966 | -1,955,842 | -71,315 | -2,027,157 |
Estimates of insurance acquisition costs | -273,559 | -4,186 | -277,745 | -269,127 | -10,180 | -279,307 |
Estimates of present value of other future cash outflows | -1,929,385 | -27,836 | -1,957,221 | -1,686,715 | -61,135 | -1,747,850 |
Estimates of present value of future cash inflows | 2,459,045 | 31,660 | 2,490,705 | 2,189,650 | 74,678 | 2,264,328 |
Risk Adjustment for nonfinancial risks | -59,190 | -2,098 | -61,288 | -55,743 | -2,877 | -58,620 |
Contractual Service Margin | -196,911 | -196,911 | -180,602 | -180,602 | ||
Acquired | -399,629 | 0 | -399,629 | 0 | 0 | 0 |
Estimates of present value of future cash outflows | -477,174 | 0 | -477,174 | 0 | 0 | 0 |
Estimates of present value of other future cash outflows | -477,174 | 0 | -477,174 | 0 | 0 | 0 |
Estimates of present value of future cash inflows | 117,200 | 0 | 117,200 | 0 | 0 | 0 |
Risk Adjustment for nonfinancial risks | -2,525 | 0 | -2,525 | 0 | 0 | 0 |
Contractual Service Margin | -37,130 | -37,130 | 0 | 0 | ||
CSM expected to be recognised in profit or loss | 31/12/2024 | |||||
Insurance contracts issued | 1st year | 2nd year | 3rd year | 4th year | 5th year and later | Total |
in EUR ‘000 | ||||||
GMM | -164,336 | -124,548 | -103,363 | -86,462 | -460,543 | -939,252 |
Assets for Remaining Coverage (ARC) | -41,859 | -34,956 | -29,439 | -24,913 | -153,621 | -284,788 |
Liability for Remaining Coverage (LRC) | -122,477 | -89,592 | -73,924 | -61,549 | -306,922 | -654,464 |
VFA | -352,007 | -323,174 | -298,503 | -276,171 | -3,414,930 | -4,664,785 |
Assets for Remaining Coverage (ARC) | -230 | -274 | -309 | -335 | -4,347 | -5,495 |
Liability for Remaining Coverage (LRC) | -351,777 | -322,900 | -298,194 | -275,836 | -3,410,583 | -4,659,290 |
Total | -516,343 | -447,722 | -401,866 | -362,633 | -3,875,473 | -5,604,037 |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
CSM expected to be recognised in profit or loss | 31/12/2023 | |||||
Insurance contracts issued | 1st year | 2nd year | 3rd year | 4th year | 5th year and later | Total |
in EUR ‘000 | ||||||
GMM | -144,551 | -99,742 | -80,610 | -66,264 | -372,911 | -764,078 |
Assets for Remaining Coverage (ARC) | -39,250 | -32,224 | -27,666 | -23,238 | -147,401 | -269,779 |
Liability for Remaining Coverage (LRC) | -105,301 | -67,518 | -52,944 | -43,026 | -225,510 | -494,299 |
VFA | -386,096 | -348,868 | -319,752 | -296,568 | -3,768,433 | -5,119,717 |
Assets for Remaining Coverage (ARC) | -62 | -98 | -133 | -163 | -3,197 | -3,653 |
Liability for Remaining Coverage (LRC) | -386,034 | -348,770 | -319,619 | -296,405 | -3,765,236 | -5,116,064 |
Total | -530,647 | -448,610 | -400,362 | -362,832 | -4,141,344 | -5,883,795 |
1.4. Reinsurance contracts held
Development by balance sheet item
Development – reinsurance contracts held | 2024 | |||||
All measurement models | LRC / ARC | LIC / AIC | Total | |||
Excl. LoReCo | LoReCo | Contracts not measured under PAA | Contracts measured at PAA | |||
PVFCF | RA | |||||
in EUR ‘000 | ||||||
Assets as of 31/12 of the previous year = assets as of 01/01 | -39,390 | 4,142 | 653,672 | 1,163,020 | 26,854 | 1,808,298 |
Liabilities as of 31/12 of the previous year = liabilities as of 01/01 | -35,639 | 422 | -1,518 | 12,473 | 82 | -24,180 |
Net book value as of 31/12 of the previous year = value as of 01/01 | -75,029 | 4,564 | 652,154 | 1,175,493 | 26,936 | 1,784,118 |
Insurance service revenue | -1,477,363 | -1,477,363 | ||||
insurance service expenses | -46,865 | 2,505 | 696,344 | 531,831 | -1,748 | 1,182,067 |
Investment components | -27,770 | 0 | 7,840 | 19,930 | 0 | 0 |
Insurance finance result* | 2,396 | 673 | 10,095 | 71,456 | 1,737 | 86,357 |
Unrealised gains and losses acc. to IFRS 17 | -1,706 | 0 | 7,413 | -4,830 | -377 | 500 |
Total changes in the statement of comprehensive income | -1,551,308 | 3,178 | 721,692 | 618,387 | -388 | -208,439 |
Exchange rate differences | 1,983 | 0 | -303 | -12,860 | -334 | -11,514 |
Changes in scope of consolidation | -553 | 0 | 76 | 0 | 0 | -477 |
Total fulfilment cash flows | 1,530,434 | -399,713 | -592,356 | 538,365 | ||
Other movements (transfers, modifications, etc.) | -1,231 | 0 | -1,649 | 1,101 | 2 | -1,777 |
Net book value as of 31/12 | -95,704 | 7,742 | 972,257 | 1,189,765 | 26,216 | 2,100,276 |
Assets as of 31/12 | -40,409 | 7,667 | 975,351 | 1,174,286 | 25,863 | 2,142,758 |
Liabilities as of 31/12 | -55,295 | 75 | -3,094 | 15,479 | 353 | -42,482 |
*Includes exchange rate differences of EUR -506,000
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Development – reinsurance contracts held | 2023 | |||||
All measurement models | LRC / ARC | LIC / AIC | Total | |||
Excl. LoReCo | LoReCo | Contracts not measured under PAA | Contracts measured at PAA | |||
PVFCF | RA | |||||
in EUR ‘000 | ||||||
Assets as of 31/12 of the previous year = assets as of 01/01 | -37,144 | 17,499 | 608,545 | 1,257,568 | 28,041 | 1,874,509 |
Liabilities as of 31/12 of the previous year = liabilities as of 01/01 | -53,389 | 559 | -1,319 | 16,198 | 210 | -37,741 |
Net book value as of 31/12 of the previous year = value as of 01/01 | -90,533 | 18,058 | 607,226 | 1,273,766 | 28,251 | 1,836,768 |
Insurance service revenue | -1,339,091 | -1,339,091 | ||||
insurance service expenses | 49,694 | -13,421 | 308,863 | 548,357 | -2,829 | 890,664 |
Investment components | -31,263 | 0 | 14,512 | 16,751 | 0 | 0 |
Insurance finance result* | -3,174 | 8 | 4,562 | 38,559 | 1,673 | 41,628 |
Unrealised gains and losses acc. to IFRS 17 | -5,247 | -833 | 7,830 | 33,166 | 0 | 34,916 |
Total changes in the statement of comprehensive income | -1,329,081 | -14,246 | 335,767 | 636,833 | -1,156 | -371,883 |
Exchange rate differences | 26,494 | 752 | -12,795 | -1,549 | -160 | 12,742 |
Total fulfilment cash flows | 1,318,092 | -278,043 | -733,557 | 306,492 | ||
Net book value as of 31/12 | -75,028 | 4,564 | 652,155 | 1,175,493 | 26,935 | 1,784,119 |
Assets as of 31/12 | -39,390 | 4,142 | 653,672 | 1,163,020 | 26,854 | 1,808,298 |
Liabilities as of 31/12 | -35,639 | 422 | -1,518 | 12,473 | 82 | -24,180 |
*Includes exchange rate differences of EUR -4,911,000
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Development – reinsurance contracts held | 2024 | ||||
Premium Allocation Approach | LRC / ARC | LIC / AIC | Total | ||
Excl. LoReCo | LoReCo | PVFCF | RA | ||
in EUR ‘000 | |||||
Assets as of 31/12 of the previous year = assets as of 01/01 | 67,552 | 6 | 1,163,020 | 26,854 | 1,257,432 |
Liabilities as of 31/12 of the previous year = liabilities as of 01/01 | -3,631 | 1 | 12,473 | 82 | 8,925 |
Net book value as of 31/12 of the previous year = value as of 01/01 | 63,921 | 7 | 1,175,493 | 26,936 | 1,266,357 |
Insurance service revenue | -1,043,945 | -1,043,945 | |||
insurance service expenses | -50,809 | 10 | 531,831 | -1,748 | 479,284 |
Amounts recovered for claims and other technical expenses | 2,330 | 442,282 | 444,612 | ||
Reimbursements of losses and reversal of reimbursement of losses from groups of onerous contracts | 226 | 10 | 236 | ||
Changes fulfilment cash flows relating to LIC | 109,359 | -1,687 | 107,672 | ||
Changes in risk of non-performance by issuer of reinsurance contracts | 0 | 0 | -500 | 0 | -500 |
Consolidation effects | -53,365 | -19,310 | -61 | -72,736 | |
Investment components | -19,930 | 0 | 19,930 | 0 | 0 |
Insurance finance result* | 121 | 0 | 71,456 | 1,737 | 73,314 |
Insurance finance result* | 121 | 0 | 55,353 | 1,737 | 57,211 |
Consolidation effects | 0 | 0 | 16,103 | 0 | 16,103 |
Unrealised gains and losses acc. to IFRS 17 | 0 | 0 | -4,830 | -377 | -5,207 |
Total changes in the statement of comprehensive income | -1,114,563 | 10 | 618,387 | -388 | -496,554 |
Exchange rate differences | 708 | 0 | -12,860 | -334 | -12,486 |
Total fulfilment cash flows | 1,122,333 | 0 | -592,356 | 0 | 529,977 |
Received premiums | 1,123,975 | 1,123,975 | |||
Claims and other insurance service expenses paid as well as investment components | -592,356 | -592,356 | |||
Insurance acquisition costs | -1,642 | -1,642 | |||
Other movements (transfers, modifications, etc.) | -4,571 | 0 | 1,101 | 2 | -3,468 |
Net book value as of 31/12 | 67,828 | 17 | 1,189,765 | 26,216 | 1,283,826 |
Assets as of 31/12 | 102,348 | 17 | 1,174,286 | 25,863 | 1,302,514 |
Liabilities as of 31/12 | -34,520 | 0 | 15,479 | 353 | -18,688 |
*Includes exchange rate differences of EUR -12,000
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Development – reinsurance contracts held | 2023 | ||||
Premium Allocation Approach | LRC / ARC | LIC / AIC | Total | ||
Excl. LoReCo | LoReCo | PVFCF | RA | ||
in EUR ‘000 | |||||
Assets as of 31/12 of the previous year = assets as of 01/01 | 46,406 | -1 | 1,257,568 | 28,041 | 1,332,014 |
Liabilities as of 31/12 of the previous year = liabilities as of 01/01 | -22,244 | 0 | 16,198 | 210 | -5,836 |
Net book value as of 31/12 of the previous year = value as of 01/01 | 24,162 | -1 | 1,273,766 | 28,251 | 1,326,178 |
Insurance service revenue | -931,526 | 0 | -931,526 | ||
insurance service expenses | 45,835 | 5 | 548,357 | -2,829 | 591,368 |
Amounts recovered for claims and other technical expenses | 45,835 | 713,535 | 759,370 | ||
Reimbursements of losses and reversal of reimbursement of losses from groups of onerous contracts | 5 | 5 | |||
Changes fulfilment cash flows relating to LIC | -165,532 | -2,829 | -168,361 | ||
Changes in risk of non-performance by issuer of reinsurance contracts | 354 | 354 | |||
Investment components | -16,751 | 16,751 | 0 | ||
Insurance finance result* | -198 | 38,559 | 1,673 | 40,034 | |
Unrealised gains and losses acc. to IFRS 17 | 33,166 | 33,166 | |||
Total changes in the statement of comprehensive income | -902,640 | 5 | 636,833 | -1,156 | -266,958 |
Exchange rate differences | 11,725 | 3 | -1,549 | -160 | 10,019 |
Total fulfilment cash flows | 930,675 | 0 | -733,557 | 0 | 197,118 |
Received premiums | 930,675 | 930,675 | |||
Claims and other insurance service expenses paid as well as investment components | -733,557 | -733,557 | |||
Net book value as of 31/12 | 63,922 | 7 | 1,175,493 | 26,935 | 1,266,357 |
Assets as of 31/12 | 67,552 | 6 | 1,163,020 | 26,854 | 1,257,432 |
Liabilities as of 31/12 | -3,631 | 1 | 12,473 | 82 | 8,925 |
*Includes exchange rate differences of EUR -393,000
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Development – reinsurance contracts held | 2024 | |||
General Measurement Model | LRC / ARC | LIC / AIC | Total | |
Excl. LoReCo | LoReCo | |||
in EUR ‘000 | ||||
Assets as of 31/12 of the previous year = assets as of 01/01 | -106,942 | 4,136 | 653,672 | 550,866 |
Liabilities as of 31/12 of the previous year = liabilities as of 01/01 | -32,008 | 421 | -1,518 | -33,105 |
Net book value as of 31/12 of the previous year = value as of 01/01 | -138,950 | 4,557 | 652,154 | 517,761 |
Insurance service revenue | -433,418 | -433,418 | ||
insurance service expenses | 3,944 | 2,495 | 696,344 | 702,783 |
Amounts recovered for claims and other technical expenses | 2,961 | 366,363 | 369,324 | |
Reimbursements of losses and reversal of reimbursement of losses from groups of onerous contracts | 2,495 | 2,495 | ||
Changes fulfilment cash flows relating to LIC | 331,022 | 331,022 | ||
Changes in risk of non-performance by issuer of reinsurance contracts | 983 | 0 | -1,041 | -58 |
Investment components | -7,840 | 7,840 | 0 | |
Insurance finance result* | 2,275 | 673 | 10,095 | 13,043 |
Unrealised gains and losses acc. to IFRS 17 | -1,706 | 0 | 7,413 | 5,707 |
Total changes in the statement of comprehensive income | -436,745 | 3,168 | 721,692 | 288,115 |
Exchange rate differences | 1,275 | 0 | -303 | 972 |
Changes in scope of consolidation | -553 | 0 | 76 | -477 |
Total fulfilment cash flows | 408,101 | 0 | -399,713 | 8,388 |
Received premiums | 411,272 | 411,272 | ||
Claims and other insurance service expenses paid as well as investment components | -399,713 | -399,713 | ||
Insurance acquisition costs | -3,171 | -3,171 | ||
Other movements (transfers, modifications, etc.) | 3,340 | 0 | -1,649 | 1,691 |
Net book value as of 31/12 | -163,532 | 7,725 | 972,257 | 816,450 |
Assets as of 31/12 | -142,757 | 7,650 | 975,351 | 840,244 |
Liabilities as of 31/12 | -20,775 | 75 | -3,094 | -23,794 |
*Includes exchange rate differences of EUR -494,000
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Development – reinsurance contracts held | 2023 | |||
General Measurement Model | LRC / ARC | LIC / AIC | Total | |
Excl. LoReCo | LoReCo | |||
in EUR ‘000 | ||||
Assets as of 31/12 of the previous year = assets as of 01/01 | -83,550 | 17,500 | 608,545 | 542,495 |
Liabilities as of 31/12 of the previous year = liabilities as of 01/01 | -31,145 | 559 | -1,319 | -31,905 |
Net book value as of 31/12 of the previous year = value as of 01/01 | -114,695 | 18,059 | 607,226 | 510,590 |
Insurance service revenue | -407,565 | 0 | -407,565 | |
insurance service expenses | 3,859 | -13,426 | 308,863 | 299,296 |
Amounts recovered for claims and other technical expenses | 2,867 | 0 | 220,334 | 223,201 |
Reimbursements of losses and reversal of reimbursement of losses from groups of onerous contracts | -13,426 | -13,426 | ||
Changes fulfilment cash flows relating to LIC | 88,775 | 88,775 | ||
Changes in risk of non-performance by issuer of reinsurance contracts | 992 | 0 | -246 | 746 |
Investment components | -14,512 | 14,512 | 0 | |
Insurance finance result* | -2,976 | 8 | 4,562 | 1,594 |
Unrealised gains and losses acc. to IFRS 17 | -5,247 | -833 | 7,830 | 1,750 |
Total changes in the statement of comprehensive income | -426,441 | -14,251 | 335,767 | -104,925 |
Exchange rate differences | 14,769 | 749 | -12,795 | 2,723 |
Total fulfilment cash flows | 387,417 | 0 | -278,043 | 109,374 |
Received premiums | 387,417 | 387,417 | ||
Claims and other insurance service expenses paid as well as investment components | -278,043 | -278,043 | ||
Net book value as of 31/12 | -138,950 | 4,557 | 652,155 | 517,762 |
Assets as of 31/12 | -106,942 | 4,136 | 653,672 | 550,866 |
Liabilities as of 31/12 | -32,008 | 421 | -1,518 | -33,105 |
*Includes exchange rate differences of EUR -4,518,000
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Development by evaluation component: Insurance contracts that are not valued using the PAA
Developments of LRC / ARC and LIC / AIC by measurement components | 2024 | |||
General Measurement Model | PVFCF | RA | CSM | Total |
in EUR ‘000 | ||||
Assets as of 31/12 of the previous year = assets as of 01/01 | 473,577 | 16,955 | 60,335 | 550,867 |
Liabilities as of 31/12 of the previous year = liabilities as of 01/01 | -61,390 | 2,074 | 26,211 | -33,105 |
Net book value as of 31/12 of the previous year = value as of 01/01 | 412,187 | 19,029 | 86,546 | 517,762 |
Changes that relate to current services | 341,977 | -66,223 | -48,541 | 227,213 |
Amount of CSM recognised in profit or loss | -48,541 | -48,541 | ||
Amount of RA for the risk expired recognised in profit or loss | -66,223 | -66,223 | ||
Experience adjustments | 341,977 | 341,977 | ||
Changes that relate to future services | -105,969 | 67,455 | 40,093 | 1,579 |
Contracts initially recognised in the period | -107,939 | 67,848 | 63,434 | 23,343 |
Changes in estimates that adjust the CSM | 1,970 | -393 | -23,341 | -21,764 |
Changes that relate to past services | 42,607 | -1,976 | 0 | 40,631 |
Changes in fulfilment cash flows relating to incurred claims | 42,607 | -1,976 | 0 | 40,631 |
Changes in risk of non-performance by issuer of reinsurance contracts | -58 | 0 | 0 | -58 |
Insurance finance result | 8,250 | 1,710 | 3,083 | 13,043 |
Unrealised gains and losses acc. to IFRS 17 | 4,955 | 752 | 0 | 5,707 |
Total changes in the statement of comprehensive income | 291,762 | 1,718 | -5,365 | 288,115 |
Exchange rate differences | 1,833 | -169 | -693 | 971 |
Changes in scope of consolidation | -895 | 28 | 390 | -477 |
Total fulfilment cash flows | 8,388 | 8,388 | ||
Received premiums | 411,272 | 411,272 | ||
Claims and other insurance service expenses paid as well as investment components | -399,713 | -399,713 | ||
Insurance acquisition costs | -3,171 | -3,171 | ||
Other movements (transfers, modifications, etc.) | 1,699 | 0 | -8 | 1,691 |
Net book value as of 31/12 | 714,974 | 20,606 | 80,870 | 816,450 |
Assets as of 31/12 | 754,033 | 20,129 | 66,082 | 840,244 |
Liabilities as of 31/12 | -39,059 | 477 | 14,788 | -23,794 |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Developments of LRC / ARC and LIC / AIC by measurement components | 2023 | |||
General Measurement Model | PVFCF | RA | CSM | Total |
in EUR ‘000 | ||||
Assets as of 31/12 of the previous year = assets as of 01/01 | 465,091 | 8,061 | 69,343 | 542,495 |
Liabilities as of 31/12 of the previous year = liabilities as of 01/01 | -62,364 | 1,849 | 28,610 | -31,905 |
Net book value as of 31/12 of the previous year = value as of 01/01 | 402,727 | 9,910 | 97,953 | 510,590 |
Changes that relate to current services | -113,928 | -59,437 | -12,051 | -185,416 |
Amount of CSM recognised in profit or loss | -12,051 | -12,051 | ||
Amount of RA for the risk expired recognised in profit or loss | -62,087 | -62,087 | ||
Experience adjustments | -113,928 | 2,650 | -111,278 | |
Changes that relate to future services | -78,026 | 63,490 | -346 | -14,882 |
Contracts initially recognised in the period | -98,321 | 62,655 | 55,510 | 19,844 |
Changes in estimates that adjust the CSM | 20,295 | 835 | -55,856 | -34,726 |
Changes that relate to past services | 86,748 | 4,536 | 0 | 91,284 |
Changes in fulfilment cash flows relating to incurred claims | 86,748 | 4,536 | 91,284 | |
Changes in risk of non-performance by issuer of reinsurance contracts | 745 | 745 | ||
Insurance finance result | -6,249 | 2,362 | 5,481 | 1,594 |
Unrealised gains and losses acc. to IFRS 17 | 2,774 | -1,024 | 1,750 | |
Total changes in the statement of comprehensive income | -107,936 | 9,927 | -6,916 | -104,925 |
Exchange rate differences | 8,022 | -808 | -4,491 | 2,723 |
Reclassification to BS items in accordance with IFRS 5 | ||||
Total fulfilment cash flows | 109,374 | 109,374 | ||
Received premiums | 387,417 | 387,417 | ||
Claims and other insurance service expenses paid as well as investment components | -278,043 | -278,043 | ||
Net book value as of 31/12 | 412,187 | 19,029 | 86,546 | 517,762 |
Assets as of 31/12 | 473,577 | 16,955 | 60,335 | 550,867 |
Liabilities as of 31/12 | -61,390 | 2,074 | 26,211 | -33,105 |
Additional disclosures
Contracts initially recognised in the period | ||
General Measurement Model | 31/12/2024 | 31/12/2023 adjusted |
in EUR ‘000 | ||
Own-written | 23,343 | 19,844 |
Estimates of present value of future cash outflows | 249,077 | 263,915 |
Estimates of insurance acquisition costs | 0 | -2,160 |
Estimates of present value of other future cash outflows | 249,077 | 266,075 |
Estimates of present value of future cash inflows | -357,016 | -362,236 |
Risk Adjustment for nonfinancial risks | 67,848 | 62,655 |
Contractual Service Margin | 63,434 | 55,510 |
Acquired | -477 | 0 |
Estimates of present value of future cash outflows | -1,018 | 0 |
Estimates of present value of other future cash outflows | -1,018 | 0 |
Estimates of present value of future cash inflows | 123 | 0 |
Risk Adjustment for nonfinancial risks | 28 | 0 |
Contractual Service Margin | 390 | 0 |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
CSM expected to be recognised in profit or loss | 31/12/2024 | |||||
Reinsurance contracts held | 1st year | 2nd year | 3rd year | 4th year | 5th year and later | Total |
in EUR ‘000 | ||||||
GMM | 26,189 | 8,684 | 6,674 | 5,323 | 34,000 | 80,870 |
Assets for Remaining Coverage (ARC) | 23,319 | 7,269 | 5,532 | 4,336 | 25,626 | 66,082 |
Liability for Remaining Coverage (LRC) | 2,870 | 1,415 | 1,142 | 987 | 8,374 | 14,788 |
CSM expected to be recognised in profit or loss | 31/12/2023 | |||||
Reinsurance contracts held | 1st year | 2nd year | 3rd year | 4th year | 5th year and later | Total |
in EUR ‘000 | ||||||
GMM | 19,394 | 11,751 | 9,266 | 7,800 | 38,335 | 86,546 |
Assets for Remaining Coverage (ARC) | 17,244 | 6,974 | 5,512 | 4,582 | 26,023 | 60,335 |
Liability for Remaining Coverage (LRC) | 2,150 | 4,777 | 3,754 | 3,218 | 12,312 | 26,211 |
1.5. Underlying assets of direct profit participating contracts
Composition – Fair value | 31/12/2024 | 31/12/2023 adjusted |
in EUR ‘000 | ||
Items shown as assets | 25,817,600 | 25,289,448 |
Cash and cash equivalents | 412,695 | 359,105 |
Loans | 449,543 | 540,618 |
Bonds | 15,527,901 | 15,761,012 |
Term deposits | 98,014 | 103,057 |
Funds | 7,997,314 | 7,211,757 |
Derivatives | 892 | 1,375 |
Shares | 363,979 | 411,041 |
Shares in participating companies | 12,054 | 12,472 |
Shares in affiliated non-consolidated companies | 1,281 | 1,253 |
Receivables | 8,096 | 5,432 |
Investment property | 749,259 | 692,428 |
Owner-occupied property | 196,572 | 189,898 |
Items shown as liabilities | 597 | 547 |
Liabilities for derivatives | 597 | 547 |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Amounts recognised in profit or loss | 2024 | 2023 adjusted |
in EUR ‘000 | ||
Underlying Assets | 1,220,472 | 1,375,602 |
Interest revenues using the effective interest rate method | 432,969 | 491,841 |
Realised gains and losses from financial assets measured at AC | 0 | -32 |
Impairment losses incl. reversal gains on financial instruments | -5,292 | -3,475 |
Other result from financial instruments | 782,770 | 870,390 |
Financial result from owner occupied properties and investment properties | 10,025 | 16,878 |
Non Underlying Assets | 744,560 | 552,388 |
Interest revenues using the effective interest rate method | 564,728 | 403,960 |
Realised gains and losses from financial assets measured at AC | -5,076 | 112 |
Impairment losses incl. reversal gains on financial instruments | -12,814 | -53,009 |
Other result from financial instruments | 126,761 | 183,281 |
Financial result from owner occupied properties and investment properties | 43,960 | 1,578 |
Result from associated consolidated companies | 27,001 | 16,466 |
Insurance finance result ‑ issued business | -1,622,378 | -1,698,751 |
Interest accreted to insurance contracts using current financial assumptions | -1,032,049 | -904,897 |
Interest accreted to insurance contracts using locked-in rate at inital recognition | -35,008 | -22,095 |
Changes in interest rates and other financial assumptions | -439,123 | -697,235 |
Exchange rate differences | -116,198 | -74,524 |
Insurance finance result ‑ reinsurance held | 86,357 | 41,628 |
Interest accreted to insurance contracts using current financial assumptions | 62,709 | 38,317 |
Interest accreted to insurance contracts using locked-in rate at inital recognition | 3,598 | 1,705 |
Changes in interest rates and other financial assumptions | 20,556 | 6,517 |
Exchange rate differences | -506 | -4,911 |
Total | 429,011 | 270,867 |
Amounts recognised directly in equity | 2024 | 2023 adjusted |
in EUR ‘000 | ||
Underlying Assets | 129,638 | 835,438 |
Non Underlying Assets | 46,338 | 455,553 |
IFRS 17 – Insurance contracts issued | -154,083 | -1,067,611 |
IFRS 17 – Reinsurance contracts held | 500 | 34,915 |
Total | 22,393 | 258,295 |
Statement of comprehensive income | 2024 | 2023 |
in EUR ‘000 | ||
Recognised in profit or loss | 1,615,362 | 1,478,966 |
Insurance service result | 1,186,351 | 1,208,099 |
Investment result incl. result from associated consolidated companies and properties | 1,965,032 | 1,927,990 |
Insurance finance result | -1,536,021 | -1,657,123 |
Recognised directly in equity | 22,393 | 258,295 |
Unrealised gains and losses acc. to IFRS 9 | 175,976 | 1,290,991 |
Unrealised gains and losses acc. to IFRS 17 | -153,583 | -1,032,696 |
Total | 1,637,755 | 1,737,261 |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
1.6. Portfolio performance from IFRS 17 transition date (1 January 2022)
Development – insurance contracts issued | 2024 | 2023 | ||||
All measurement models | FVA | FRA and new contracts | Total | FVA | FRA and new contracts | Total |
in EUR ‘000 | ||||||
Contractual Service Margin as of 31/12 of the previous year | -4,940,495 | -943,297 | -5,883,792 | -5,204,472 | -731,610 | -5,936,082 |
IAS 8 error correction | 0 | 6,623 | 6,623 | 0 | 0 | 0 |
Contractual Service Margin as of 01/01 | -4,940,495 | -936,674 | -5,877,169 | -5,204,472 | -731,610 | -5,936,082 |
Changes that relate to current services | 360,632 | 229,319 | 589,951 | 437,277 | 175,310 | 612,587 |
Amount of CSM recognised in profit or loss | 360,632 | 229,319 | 589,951 | 437,277 | 175,310 | 612,587 |
Changes that relate to future services | 324,158 | -553,054 | -228,896 | -148,807 | -401,530 | -550,337 |
Contracts initially recognised in the period | -545,221 | -545,221 | -414,055 | -414,055 | ||
Changes in estimates that adjust the CSM | 324,158 | -7,833 | 316,325 | -148,807 | 12,525 | -136,282 |
Insurance finance result* | -7,863 | -68,689 | -76,552 | 9,038 | -68,070 | -59,032 |
Total changes in the statement of comprehensive income | 676,927 | -392,424 | 284,503 | 297,508 | -294,290 | 3,218 |
Exchange rate differences | 19,333 | 33,023 | 52,356 | -33,531 | 82,603 | 49,072 |
Changes in scope of consolidation | 0 | -66,425 | -66,425 | 0 | 0 | 0 |
Other movements (transfers, modifications, etc.) | -1,561 | 4,259 | 2,698 | 0 | 0 | 0 |
Contractual Service Margin as of 31/12 | -4,245,796 | -1,358,241 | -5,604,037 | -4,940,495 | -943,297 | -5,883,792 |
*Includes exchange rate differences of EUR -41,544,000
Development | 2024 | 2023 | ||||
General Measurement Model | FVA | FRA and new contracts | Total | FVA | FRA and new contracts | Total |
in EUR ‘000 | ||||||
Contractual Service Margin as of 01/01 | -321,678 | -442,399 | -764,077 | -386,863 | -380,194 | -767,057 |
Changes that relate to current services | 61,563 | 168,810 | 230,373 | 70,129 | 134,355 | 204,484 |
Amount of CSM recognised in profit or loss | 61,563 | 168,810 | 230,373 | 70,129 | 134,355 | 204,484 |
Changes that relate to future services | -31,115 | -293,824 | -324,939 | -411 | -185,564 | -185,975 |
Contracts initially recognised in the period | -348,310 | -348,310 | -233,453 | -233,453 | ||
Changes in estimates that adjust the CSM | -31,115 | 54,486 | 23,371 | -411 | 47,889 | 47,478 |
Insurance finance result* | -3,953 | -63,163 | -67,116 | 14,834 | -75,142 | -60,308 |
Total changes in the statement of comprehensive income | 26,495 | -188,177 | -161,682 | 84,552 | -126,351 | -41,799 |
Exchange rate differences | 1,120 | 14,682 | 15,802 | -19,367 | 64,146 | 44,779 |
Changes in scope of consolidation | 0 | -29,295 | -29,295 | 0 | 0 | 0 |
Other movements (transfers, modifications, etc.) | -1,603 | 1,603 | 0 | 0 | 0 | 0 |
Contractual Service Margin as of 31/12 | -295,666 | -643,586 | -939,252 | -321,678 | -442,399 | -764,077 |
*Includes exchange rate differences of EUR -32,108,000
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Development | 2024 | 2023 | ||||
Variable Fee Approach | FVA | FRA and new contracts | Total | FVA | FRA and new contracts | Total |
in EUR ‘000 | ||||||
Contractual Service Margin as of 31/12 of the previous year | -4,618,817 | -500,898 | -5,119,715 | -4,817,609 | -351,416 | -5,169,025 |
IAS 8 error correction | 0 | 6,623 | 6,623 | 0 | 0 | 0 |
Contractual Service Margin as of 01/01 | -4,618,817 | -494,275 | -5,113,092 | -4,817,609 | -351,416 | -5,169,025 |
Changes that relate to current services | 299,069 | 60,509 | 359,578 | 367,148 | 40,955 | 408,103 |
Amount of CSM recognised in profit or loss | 299,069 | 60,509 | 359,578 | 367,148 | 40,955 | 408,103 |
Changes that relate to future services | 355,273 | -259,230 | 96,043 | -148,396 | -215,966 | -364,362 |
Contracts initially recognised in the period | 0 | -196,911 | -196,911 | -180,602 | -180,602 | |
Changes in estimates that adjust the CSM | 355,273 | -62,319 | 292,954 | -148,396 | -35,364 | -183,760 |
Insurance finance result* | -3,910 | -5,526 | -9,436 | -5,796 | 7,072 | 1,276 |
Total changes in the statement of comprehensive income | 650,432 | -204,247 | 446,185 | 212,956 | -167,939 | 45,017 |
Exchange rate differences | 18,213 | 18,341 | 36,554 | -14,164 | 18,457 | 4,293 |
Changes in scope of consolidation | 0 | -37,130 | -37,130 | 0 | 0 | 0 |
Other movements (transfers, modifications, etc.) | 42 | 2,656 | 2,698 | 0 | 0 | 0 |
Contractual Service Margin as of 31/12 | -3,950,130 | -714,655 | -4,664,785 | -4,618,817 | -500,898 | -5,119,715 |
*Includes exchange rate differences of EUR -9,436,000
Reinsurance contracts held
Development | 2024 | 2023 | ||||
General Measurement Model | FVA | FRA and new contracts | Total | FVA | FRA and new contracts | Total |
in EUR ‘000 | ||||||
Contractual Service Margin as of 01/01 | 49,689 | 36,854 | 86,543 | 63,716 | 34,235 | 97,951 |
Changes that relate to current services | -8,473 | -40,068 | -48,541 | -9,387 | -2,664 | -12,051 |
Amount of CSM recognised in profit or loss | -8,473 | -40,068 | -48,541 | -9,387 | -2,664 | -12,051 |
Changes that relate to future services | 177 | 39,916 | 40,093 | -3,301 | 2,955 | -346 |
Contracts initially recognised in the period | 0 | 63,434 | 63,434 | 55,510 | 55,510 | |
Changes in estimates that adjust the CSM | 177 | -23,518 | -23,341 | -3,301 | -52,555 | -55,856 |
Insurance finance result* | 259 | 2,824 | 3,083 | -937 | 6,418 | 5,481 |
Total changes in the statement of comprehensive income | -8,037 | 2,672 | -5,365 | -13,625 | 6,709 | -6,916 |
Exchange rate differences | -35 | -656 | -691 | -402 | -4,090 | -4,492 |
Changes in scope of consolidation | 0 | 391 | 391 | 0 | 0 | 0 |
Other movements (transfers, modifications, etc.) | 43 | -51 | -8 | 0 | 0 | 0 |
Contractual Service Margin as of 31/12 | 41,660 | 39,210 | 80,870 | 49,689 | 36,854 | 86,543 |
*Includes exchange rate differences of EUR -529,000
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Underlying items
The following table shows the amounts recognised as Other comprehensive income in the statement of comprehensive income. These originate from underlying financial assets from insurance contracts which were measured using the FVA at initial recognition.
Development | 2024 | 2023 adjusted |
in EUR ‘000 | ||
Book value as of 31/12 of the previous year = Book value as of 01/01 | 836,545 | 1,601,300 |
Amounts recognised directly in equity | -90,284 | -722,263 |
Amounts recognised in profit or loss | -42,631 | -37,398 |
Changes in scope of consolidation | 160 | 0 |
Exchange rate differences | -1,196 | -5,094 |
Book value as of 31/12 | 702,594 | 836,545 |
thereof included balance of risk provision | -109,551 | -120,793 |
The change in risk provision is reported in the item Amounts recognised directly in equity.
Insurance service revenue
Insurance service revenue | 2024 | 2023 | ||||
FVA | FRA and new contracts | Total | FVA | FRA and new contracts | Total | |
in EUR ‘000 | ||||||
Insurance service revenue ‑ issued business | 1,369,492 | 10,768,985 | 12,138,477 | 1,437,101 | 9,484,724 | 10,921,825 |
Premium Allocation Approach | 0 | 9,578,096 | 9,578,096 | 8,531,487 | 8,531,487 | |
General Measurement Model | 195,372 | 984,547 | 1,179,919 | 225,762 | 780,906 | 1,006,668 |
Variable Fee Approach | 1,174,120 | 206,342 | 1,380,462 | 1,211,339 | 172,331 | 1,383,670 |
Insurance service revenue ‑ reinsurance held | -24,305 | -1,453,058 | -1,477,363 | -27,416 | -1,311,675 | -1,339,091 |
Premium Allocation Approach | 0 | -1,043,945 | -1,043,945 | -931,526 | -931,526 | |
General Measurement Model | -24,305 | -409,113 | -433,418 | -27,416 | -380,149 | -407,565 |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
1.7. Risk of concentration
Insurance contracts liabilities issued | 31/12/2024 | 31/12/2023 |
in EUR ‘000 | ||
Austria | 23,368,637 | 23,370,578 |
Czech Republic | 2,927,744 | 2,851,071 |
Poland | 2,551,364 | 2,004,101 |
Albania incl. Kosovo | 90,407 | 83,469 |
Baltic states | 1,037,409 | 862,750 |
Bosnia-Herzegovina | 116,952 | 115,348 |
Bulgaria | 288,909 | 254,262 |
Croatia | 408,883 | 433,592 |
Moldova | 15,396 | 17,210 |
North Macedonia | 19,873 | 19,778 |
Romania | 1,203,128 | 924,606 |
Serbia | 329,151 | 313,779 |
Slovakia | 1,661,644 | 1,563,953 |
Ukraine | 111,694 | 95,723 |
Hungary | 1,359,616 | 1,308,700 |
Germany | 787,719 | 766,302 |
Georgia | 27,566 | 20,400 |
Liechtenstein | 908,881 | 882,881 |
Türkiye | 1,129,587 | 795,305 |
Group Functions | 1,253,503 | 1,120,284 |
Total | 39,598,063 | 37,804,092 |
Gross written premiums | 2024 | 2023 |
in EUR ‘000 | ||
Motor third party liability insurance | 2,470,991 | 2,214,614 |
Motor own damage insurance (Casco) | 2,084,599 | 1,858,667 |
Other property and casualty insurance | 7,495,365 | 6,796,547 |
Health insurance | 1,025,497 | 898,086 |
Unit- and index-linked life insurance | 668,785 | 600,375 |
Life insurance with profit participation | 2,383,322 | 2,358,228 |
Life insurance without profit participation | 1,126,498 | 983,620 |
Consolidation | -2,028,710 | -1,926,119 |
Total | 15,226,347 | 13,784,018 |
1.8. Insurance and market risks – sensitivity analysis
The following sensitivities are calculated as effects on the capital of the Group solvency balance sheet in accordance with Solvency II. The essential aim is to establish risk-orientated systems under Solvency II and improve the risk management process. To achieve this, both quantitative and qualitative requirements must be met. VIG Insurance Group has established management processes with this objective in mind and uses them for controlling purposes.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Differences between Solvency II and IFRS 17 calculations for the insurance contracts arise mainly because of the following:
• different scope of costs to be taken into consideration,
• contract boundaries and
• discount rates applied.
In accordance with IFRS 17, only costs which can be directly allocated to an insurance contract can be taken into consideration, whereas under the Solvency II regime the total costs approach is applied when evaluating underwriting obligations.
Both regimes take into account the period of the contracts (contract boundaries) in the modelling of the future cash flows. When deriving the period of contracts, Solvency II follows primarily the risk perspective, whereas IFRS 17 focuses on the insurance contract itself. Accordingly, the different approach is also applied to the supplementary insurance contracts in those cases in which they are equivalent to the underlying main insurance contract in accordance with IFRS 17. There is also a difference with the established term of ceded reinsurance contracts. Under Solvency II, the period of the contract follows the primary insurance contract, whereas IFRS 17 recognises the contractual period of the reinsurance contract.
In the case of discounting the cash flows established for the period, Solvency II applies strict and mandatory regulatory definitions that must be observed. By contrast, both the derivation of the interest rate and the risk margin are determined by the company itself based on the IFRS 17 principles.
Despite the differences listed, VIG Insurance Group considers the risk sensitivities established using Solvency II to be an appropriate basis for the estimates in accordance with IFRS 17.
Sensitivities Own funds ‑ Change | 31/12/2024 | 31/12/2023 | ||
in EUR ‘000 | in % | in EUR ‘000 | in % | |
Base | 10,401,147 | 10,344,756 | ||
Underwriting risks | ||||
Life insurance | ||||
Mortality rates +5% | -8,251 | -0.08 | -18,251 | -0.18 |
Mortality rates -5% | 11,066 | 0.11 | 15,858 | 0.15 |
Expenses / Admin costs +10% | -219,960 | -2.11 | - | - |
Expenses / Admin costs -10% | - | - | 174,634 | 1.69 |
Lapse rates +100% | - | - | -328,934 | -3.18 |
Lapse rates +50% | -177,519 | -1.71 | - | - |
Lapse rates -50% | 241,305 | 2.32 | 259,501 | 2.51 |
Non-life insurance | ||||
Ultimate loss ratio (LIC) +1% | -62,624 | -0.60 | -60,947 | -0.59 |
Ultimate loss ratio (LIC) -1% | 60,850 | 0.59 | 58,427 | 0.56 |
Market risks | ||||
Interest rate +100bp | 155,622 | 1.50 | 166,158 | 1.61 |
Interest rate -100bp | -490,364 | -4.71 | -399,000 | -3.86 |
Equity prices -25% | -365,730 | -3.52 | -321,124 | -3.10 |
Spreads for government and corporate bonds +50bp | -456,234 | -4.39 | -448,404 | -4.33 |
The changes in the base value shown have to be considered isolated in each case. This means that different sensitivities can not be added together to derive a cumulative change in the base value.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
1.9. Insurance risk – Claims development
Premium Allocation Approach
LIC / AIC ‑ issued | 2022 | 2023 | 2024 | Total |
in EUR ‘000 | ||||
Estimated undiscounted cash outflows excl. RA | ||||
At the end of accident year | -5,250,606 | -5,668,844 | -6,754,510 | |
One year later | -5,174,532 | -5,640,597 | ||
Two years later | -5,050,530 | |||
Cumulative claims paid | 4,438,167 | 4,368,506 | 3,553,094 | |
LIC/AIC - claims years from 2022 | -612,363 | -1,272,091 | -3,201,416 | -5,085,870 |
LIC/AIC - claims year 2021 | -472,554 | |||
LIC/AIC - claims years before 2021* | -2,009,357 | |||
Effect of discounting | 1,133,471 | |||
Risk Adjustment | -280,673 | |||
Total | -6,714,983 | |||
*including all receivables and payables included in L/AIC
AIC / LIC ‑ held | 2022 | 2023 | 2024 | Total |
in EUR ‘000 | ||||
Estimated undiscounted cash outflows excl. RA | ||||
At the end of accident year | 696,401 | 587,095 | 774,871 | |
One year later | 701,875 | 649,635 | ||
Two years later | 680,120 | |||
Cumulative claims paid | -563,635 | -383,829 | -354,981 | |
AIC/LIC - claims years from 2022 | 116,485 | 265,806 | 419,890 | 802,181 |
AIC/LIC - claims year 2021 | 53,610 | |||
AIC/LIC - claims years before 2021* | 432,202 | |||
Effect of discounting | -98,228 | |||
Risk Adjustment | 26,216 | |||
Total | 1,215,981 | |||
*including all receivables and payables included in A/LIC
1.10. Credit risk
The maximum credit risk that VIG Insurance Group is exposed to corresponds to the amounts recognised in the IFRS consolidated balance sheet under “Reinsurance contracts assets held” and “Reinsurance contracts liabilities held”.
Share of the reinsurer's rating | 31/12/2024 | 31/12/2023 |
in % | ||
AAA | 1.15 | 4.95 |
AA | 49.12 | 39.53 |
A | 41.57 | 48.62 |
BBB | 2.81 | 2.58 |
BB and lower | 1.72 | 0.97 |
No rating | 3.63 | 3.35 |
Due to the good credit quality of the reinsurers of VIG Insurance Group, on 31 December 2024 and 31 December 2023 no impairments for the shares of the reinsurers were required.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
1.11. Liquidity risk
The data quality for the liquidity risk has been changed, meaning that data from the previous year cannot be included in the present consolidated financial statements.
Undiscounted net cash flows | 31/12/2024 | ||
Insurance contracts issued | GMM | VFA | Total |
in EUR ‘000 | |||
One year later | 256,287 | -858,128 | -601,841 |
Two years later | 151,400 | -1,034,021 | -882,621 |
Three years later | 54,108 | -882,920 | -828,812 |
Four years later | 27,394 | -950,886 | -923,492 |
Five years later | -19,719 | -1,076,371 | -1,096,090 |
Beyond five years | -3,573,815 | -34,730,312 | -38,304,127 |
Total | -3,104,345 | -39,532,638 | -42,636,983 |
Undiscounted net cash flows | 31/12/2024 |
Reinsurance contracts held | GMM |
in EUR ‘000 | |
One year later | -36,102 |
Two years later | 634 |
Three years later | -4,313 |
Four years later | -2,772 |
Five years later | -2,491 |
Beyond five years | -31,861 |
Total | -76,905 |
The liquidity risk arising from amounts payable on demand is simulated using the effect of the mass cancellation of life insurance policies. The parameters for this are applied in accordance with Article 142 (6) of EU Commission Delegated Regulation 2015/35. In the event of mass cancellation, the best estimate reserves increase by EUR 1,556.0 million (EUR 1,573.2 million). Under IFRS, the release of the Contractual Service Margin would have a significant positive countereffect on the income statement.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
2. Financial assets and liabilities as well as other balance sheet items evaluated according to IFRS 9
The accounting policies used are presented in Note 24.4. Financial instruments starting on page 242 and the qualitative description of the risks is presented in the chapter Risk strategy and risk management starting on page 261.
Short description | Long description |
Measured at AC | Measured at Amortised Costs |
Measured at FVtOCI | Measured at Fair Value through Other Comprehensive Income |
Measured at FVtPL | Measured at Fair Value through Profit and Loss |
Designated measured at FVtOCI | Designated measured at Fair Value through Other Comprehensive Income |
Designated measured at FVtPL | Designated measured at Fair Value through Profit and Loss |
ECL | Expected Credit Loss |
FV | Fair Value |
POCI | Purchased or Originated Credit-Impaired |
SPPI | Solely Payments of Principal and Interest |
Mandatorily measured at FVtOCI | Mandatorily measured at Fair Value through Other Comprehensive Income |
Mandatorily measured at FVtPL | Mandatorily measured at Fair Value through Profit and Loss |
2.1. Overview
Measurement and balance of risk provision | 31/12/2024 | 31/12/2023 | ||
Book value | ECL | Book value | ECL | |
in EUR ‘000 | ||||
Measured at AC | ||||
Cash and cash equivalents | 1,748,124 | 0 | 1,558,107 | 0 |
Financial assets | 3,472,610 | -81,133 | 3,031,131 | -67,811 |
IFRS 9 measured receivables | 461,697 | -19,840 | 440,374 | -21,417 |
Financial liabilities | -2,312,886 | 0 | -2,394,470 | 0 |
IFRS 9 measured liabilities | -582,834 | 0 | -587,214 | 0 |
Measured at FVtOCI | ||||
Financial assets | 24,777,481 | -177,398 | 24,420,364 | -172,613 |
Mandatorily measured at FVtOCI | 24,486,454 | -177,398 | 24,021,071 | -172,613 |
Designated measured at FVtOCI | 291,027 | 0 | 399,293 | 0 |
Measured at FVtPL | ||||
Financial assets | 11,468,221 | 0 | 10,606,555 | 0 |
Mandatorily measured at FVtPL | 11,148,394 | 0 | 10,393,733 | 0 |
Designated measured at FVtPL | 319,827 | 0 | 212,822 | 0 |
Financial liabilities | -61,254 | 0 | -1,851 | 0 |
Mandatorily measured at FVtPL | -60,746 | 0 | -1,296 | 0 |
Designated measured at FVtPL | -508 | 0 | -555 | 0 |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Risk-bearing portfolio* | 31/12/2024 | 31/12/2023 |
in EUR ‘000 | ||
Cash and cash equivalents | 1,665,742 | 1,447,034 |
Financial assets | 31,161,203 | 30,333,002 |
Investment property | 2,978,265 | 2,852,090 |
Owner-occupied property | 466,840 | 470,950 |
Investments in associates | 204,761 | 185,622 |
Total | 36,476,811 | 35,288,698 |
*Excl. financial instruments from unit- and index-linked life insurance
2.2. Categories and measurements
Assets | 31/12/2024 | 31/12/2023 |
in EUR ‘000 | ||
Measured at AC | 5,581,458 | 4,940,384 |
Cash and cash equivalents | 1,748,124 | 1,558,107 |
Loans | 654,913 | 742,306 |
Bonds | 931,707 | 978,491 |
Term deposits | 1,804,857 | 1,242,523 |
IFRS 9 measured receivables | 441,857 | 418,957 |
Measured at FVtOCI | 24,777,481 | 24,420,364 |
Mandatorily measured at FVtOCI | 24,486,454 | 24,021,071 |
Bonds | 24,486,454 | 24,021,071 |
Designated measured at FVtOCI | 291,027 | 399,293 |
Shares and shares in companies | 291,027 | 399,293 |
Shares | 41,771 | 38,259 |
Shares in participating companies | 64,451 | 70,088 |
Shares in affiliated non-consolidated companies | 184,805 | 290,946 |
Measured at FVtPL | 11,468,221 | 10,606,555 |
Mandatorily measured at FVtPL | 11,148,394 | 10,393,733 |
Shares and shares in companies | 397,914 | 484,219 |
Shares | 365,741 | 450,075 |
Shares in participating companies | 24,332 | 30,116 |
Shares in affiliated non-consolidated companies | 7,841 | 4,028 |
Loans | 4,856 | 0 |
Bonds | 1,717,122 | 1,716,436 |
Funds | 9,010,758 | 8,174,035 |
Derivatives | 17,744 | 19,043 |
Designated measured at FVtPL | 319,827 | 212,822 |
Bonds | 319,827 | 212,822 |
Total | 41,827,160 | 39,967,303 |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Liabilities | 31/12/2024 | 31/12/2023 |
in EUR ‘000 | ||
Measured at AC | 2,895,720 | 2,981,684 |
Subordinated liabilities | 1,215,495 | 1,309,283 |
Liabilities to banks | 298,188 | 306,881 |
Liabilities from financing activities | 579,072 | 579,908 |
Lease liabilities | 220,131 | 198,398 |
IFRS 9 measured liabilities | 582,834 | 587,214 |
Measured at FVtPL | 61,254 | 1,851 |
Mandatorily measured at FVtPL | 60,746 | 1,296 |
Designated measured at FVtPL | 508 | 555 |
Total | 2,956,974 | 2,983,535 |
Details regarding the liabilities resulting from financing activities can be found in Note 8. Financial liabilities on page 186. The conditions of subordinated liabilities are presented in Note 8.2. Subordinated liabilities starting on page 187.
2.3. Equity instruments designated measured at FVtOCI
Financial investments | 31/12/2024 | 31/12/2023 |
in EUR ‘000 | ||
Fair value – in portfolio | 291,027 | 399,293 |
Shares | 41,771 | 38,259 |
Shares in participating companies | 64,451 | 70,088 |
Wiener Börse AG | 31,972 | 31,710 |
GROPYUS AG | 13,452 | 14,003 |
Remaining sum | 19,027 | 24,375 |
Shares in affiliated non-consolidated companies | 184,805 | 290,946 |
VIG Poland/Romania Holding B.V. | 0 | 97,664 |
Global Expert, s.r.o. | 0 | 53,122 |
Global Repair Centres, s.r.o. | 65,664 | |
HOTELY SRNÍ, a.s. | 32,626 | 31,609 |
CARPATHIA PENSII-SOCIETATE DE ADMINISTRARE A FONDURILOR DE PENSII PRIVATE S.A. | 0 | 20,034 |
Remaining sum | 86,515 | 88,517 |
Fair value at derecognition date | 8,661 | 4,997 |
Shares | 0 | 494 |
Shares in participating companies | 5,174 | 202 |
Shares in affiliated non-consolidated companies | 3,487 | 4,301 |
Of the shares still held in the portfolio, no single investment amounts to more than EUR 5.0 million. In the remaining amounts in the item Shares in participating companies and Shares in affiliated non-consolidated companies, no single investment with a fair value of more than EUR 10.0 million is included.
The derecognition of shares and shares in companies is due to mergers and a capital reduction and the individual values do not exceed an amount of EUR 10.0 million.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Additional Information | 2024 | 2023 |
in EUR ‘000 | ||
Received dividends from equity instruments designated measured at FVtOCI | 9,495 | 6,943 |
In Portfolio | 9,292 | 6,918 |
Sold | 203 | 25 |
Within shareholders' equity derecognised cumulative gains and losses | -8,438 | -4,294 |
2.4. Risk of concentration
The following exposures relate to data that is automatically available and represent only a subset of the Group’s risk-bearing portfolio.
Financial assets* | 31/12/2024 | 31/12/2023 adjusted |
in EUR ‘000 | ||
Exposures located in | 31,899,033 | 31,063,395 |
Austria | 5,647,846 | 5,462,642 |
United States of America | 1,744,539 | 1,737,257 |
Czech Republic | 2,760,351 | 2,972,307 |
Romania | 1,193,262 | 1,052,618 |
Hungary | 738,871 | 750,833 |
Poland | 2,231,636 | 2,066,515 |
Germany | 2,179,627 | 2,221,969 |
France | 2,055,325 | 2,308,211 |
Rest of the World | 13,347,576 | 12,491,043 |
Exposures denominated in | 31,899,033 | 31,063,395 |
EUR | 23,420,981 | 23,446,534 |
USD | 886,039 | 706,774 |
CZK | 2,741,843 | 2,820,392 |
RON | 1,128,018 | 911,655 |
HUF | 609,852 | 648,507 |
PLN | 1,858,626 | 1,669,917 |
Other currencies | 1,253,674 | 859,616 |
*Excl. financial instruments from unit- and index-linked life insurance
Due to the structure of the financial liabilities issued in the long term on the capital market and the lesser importance of liabilities at individual credit institutions, there is no significant risk of concentration.
Government bonds* (book value) | Measured at AC | Measured at FVtOCI | Measured at FVtPL | |||
31/12/2024 | 31/12/2023 | 31/12/2024 | 31/12/2023 | 31/12/2024 | 31/12/2023 | |
in % | ||||||
Austria | 3.97 | 3.79 | 9.93 | 8.93 | 2.50 | 3.11 |
Germany | 0.00 | 0.00 | 2.01 | 2.58 | 12.95 | 21.59 |
Czech Republic | 4.96 | 15.17 | 12.77 | 14.84 | 72.25 | 60.86 |
Slovakia | 2.33 | 2.25 | 5.20 | 5.31 | 0.00 | 0.00 |
Poland | 51.02 | 51.67 | 12.02 | 11.64 | 0.96 | 1.37 |
Romania | 0.00 | 0.00 | 7.72 | 6.29 | 1.26 | 2.10 |
Other countries | 37.72 | 27.12 | 50.35 | 50.41 | 10.08 | 10.97 |
*Excl. financial instruments from unit- and index-linked life insurance
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
2.5. Credit risk
Financial liabilities
Financial liabilities that are designated measured at FVtPL bear no own default risk, which would have to be recognised through Other comprehensive income.
Financial assets
The stated credit risk refers only to the Group’s risk-bearing portfolio as described in Note 2.4. Risk of concentration starting on page 174.
Credit risk | Mandatorily measured at FVtPL | Designated measured at FVtPL | |||
Loans | Bonds | Funds | Shares | Bonds | |
in EUR ‘000 | |||||
Max. exposure to credit risk | 1,180 | 788,079 | 1,541,128 | 303,565 | 317,483 |
Collaterals | 0 | 165,874 | 0 | 0 | 5,253 |
The risk provision recognised in acc. with IFRS 9 is calculated on the basis of the nominal value. Consequently, the carrying amount may be lower than the cumulative risk provision, particularly in Stage 3.
Measured at AC | 31/12/2024 | ||||||||
AAA | AA | A | BBB | BB and lower | No rating | Gross carrying amount | ECL | Net carrying amount* | |
in EUR ‘000 | |||||||||
Loans | 0 | 140,120 | 102,116 | 164,469 | 87,712 | 181,923 | 676,340 | -21,427 | 654,913 |
Stage 1 | 0 | 140,120 | 101,116 | 157,252 | 9,210 | 63,993 | 471,691 | -726 | 470,965 |
Stage 2 | 0 | 0 | 1,000 | 7,217 | 78,502 | 112,669 | 199,388 | -15,554 | 183,834 |
Stage 3 | 0 | 0 | 0 | 0 | 0 | 5,261 | 5,261 | -5,147 | 114 |
Bonds | 894 | 154,635 | 463,582 | 38,835 | 306,107 | 15,160 | 979,213 | -47,506 | 931,707 |
POCI | 0 | 0 | 0 | 0 | 655 | 0 | 655 | 5 | 660 |
Stage 1 | 894 | 154,635 | 463,582 | 38,835 | 304,722 | 160 | 962,828 | -32,503 | 930,325 |
Stage 2 | 0 | 0 | 0 | 0 | 730 | 0 | 730 | -8 | 722 |
Stage 3 | 0 | 0 | 0 | 0 | 0 | 15,000 | 15,000 | -15,000 | 0 |
Term deposits | 4,765 | 19,879 | 972,217 | 345,185 | 470,353 | 4,658 | 1,817,057 | -12,200 | 1,804,857 |
Stage 1 | 4,765 | 19,879 | 972,217 | 345,185 | 470,353 | 4,658 | 1,817,057 | -12,200 | 1,804,857 |
*The net carrying amount is the maximum exposure to credit risk excluding collaterals.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Measured at AC | 31/12/2023 | ||||||||
AAA | AA | A | BBB | BB and lower | No rating | Gross carrying amount | ECL | Net carrying amount* | |
in EUR ‘000 | |||||||||
Loans | 5,426 | 135,391 | 111,360 | 212,492 | 104,194 | 195,664 | 764,527 | -22,221 | 742,306 |
Stage 1 | 5,426 | 135,391 | 111,360 | 212,492 | 9,831 | 68,409 | 542,909 | -528 | 542,381 |
Stage 2 | 0 | 0 | 0 | 0 | 94,363 | 119,439 | 213,802 | -14,005 | 199,797 |
Stage 3 | 0 | 0 | 0 | 0 | 0 | 7,816 | 7,816 | -7,688 | 128 |
Bonds | 511 | 237,512 | 438,375 | 61,277 | 245,721 | 18,971 | 1,002,367 | -23,876 | 978,491 |
Stage 1 | 511 | 237,512 | 438,375 | 61,277 | 217,384 | 18,971 | 974,030 | -23,548 | 950,482 |
Stage 2 | 0 | 0 | 0 | 0 | 28,337 | 0 | 28,337 | -328 | 28,009 |
Term deposits | 5,007 | 11,185 | 827,053 | 134,571 | 286,421 | 0 | 1,264,237 | -21,714 | 1,242,523 |
Stage 1 | 5,007 | 11,185 | 827,053 | 134,571 | 286,421 | 0 | 1,264,237 | -21,714 | 1,242,523 |
*The net carrying amount is the maximum exposure to credit risk excluding collaterals.
Measured at FVtOCI | 31/12/2024 | |||||||
AAA | AA | A | BBB | BB and lower | No rating | Book value | ECL | |
in EUR ‘000 | ||||||||
Bonds | 3,211,650 | 6,214,967 | 8,321,477 | 5,311,484 | 1,294,464 | 132,412 | 24,486,454 | -177,398 |
Stage 1 | 3,211,650 | 6,214,967 | 8,321,477 | 5,301,226 | 396,680 | 70,236 | 23,516,236 | -19,230 |
Stage 2 | 0 | 0 | 0 | 4,258 | 897,604 | 56,861 | 958,723 | -69,903 |
Stage 3 | 0 | 0 | 0 | 6,000 | 180 | 5,315 | 11,495 | -88,265 |
Measured at FVtOCI | 31/12/2023 | |||||||
AAA | AA | A | BBB | BB and lower | No rating | Book value | ECL | |
in EUR ‘000 | ||||||||
Bonds | 3,103,904 | 6,341,607 | 7,636,692 | 5,590,543 | 1,208,807 | 139,518 | 24,021,071 | -172,613 |
Stage 1 | 3,103,904 | 6,341,607 | 7,636,692 | 5,583,139 | 960,371 | 68,133 | 23,693,846 | -28,898 |
Stage 2 | 0 | 0 | 0 | 6,391 | 225,916 | 63,820 | 296,127 | -36,827 |
Stage 3 | 0 | 0 | 0 | 1,013 | 22,520 | 7,565 | 31,098 | -106,888 |
Impairment Provision Matrix | 31/12/2024 | ||||
IFRS 9 measured receivables | Due, not overdue | 1‑30 days overdue | 31-90 days overdue | > 90 days overdue | Total |
in EUR ‘000 | |||||
Receivables from services (IFRS 15) | 42,481 | 912 | 121 | 60 | 43,574 |
Gross carrying amount | 42,482 | 913 | 122 | 152 | 43,669 |
Risk provision | -1 | -1 | -1 | -92 | -95 |
Receivables from finance lease | 60,193 | 0 | 0 | 0 | 60,193 |
Gross carrying amount | 60,193 | 0 | 0 | 0 | 60,193 |
Other IFRS 9 measured receivables | 318,897 | 7,096 | 2,212 | 9,885 | 338,090 |
Gross carrying amount | 334,710 | 7,589 | 2,292 | 13,244 | 357,835 |
Risk provision | -15,813 | -493 | -80 | -3,359 | -19,745 |
Total | 421,571 | 8,008 | 2,333 | 9,945 | 441,857 |
Loss rate – range | 0.01%-100.00% | 0.76%-62.00% | 0.96%-100.00% | 3.07%-100.00% | |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Impairment Provision Matrix | 31/12/2023 | ||||
IFRS 9 measured receivables | Due, not overdue | 1‑30 days overdue | 31-90 days overdue | > 90 days overdue | Total |
in EUR ‘000 | |||||
Receivables from services (IFRS 15) | 38,552 | 645 | 167 | 15 | 39,379 |
Gross carrying amount | 38,554 | 648 | 169 | 93 | 39,464 |
Risk provision | -2 | -3 | -2 | -78 | -85 |
Receivables from finance lease | 55,326 | 0 | 0 | 0 | 55,326 |
Gross carrying amount | 55,326 | 0 | 0 | 0 | 55,326 |
Other IFRS 9 measured receivables | 301,834 | 3,548 | 2,144 | 16,726 | 324,252 |
Gross carrying amount | 317,569 | 3,916 | 2,170 | 21,929 | 345,584 |
Risk provision | -15,735 | -368 | -26 | -5,203 | -21,332 |
Total | 395,712 | 4,193 | 2,311 | 16,741 | 418,957 |
Loss rate – range | 0.01%-100.00% | 0.84%-62.00% | 2.07%-100.00% | 1.53%-100.00% | |
In the financial year, bonds valued at FVtOCI of EUR 5,026,000 (EUR 11,456,000) were provided as collateral for liabilities or contingent liabilities.
2.6. Liquidity risk
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
2.7. Market risk
Reduction in market value | 2024 | |||||
Scenario 0 | Scenario 1 | Scenario 2 | Scenario 3 | Scenario 4 | Scenario 5 | |
of shares | 0% | -20% | -10% | -20% | -20% | 0% |
of bonds | 0% | -5% | -3% | -5% | 0% | -5% |
of real estate | 0% | -5% | -10% | 0% | -10% | -10% |
Market value of assets less liabilities (in '000 EUR) | 8,313,995 | 6,449,620 | 6,784,352 | 6,722,575 | 7,530,211 | 6,414,539 |
Reduction in market value | 2023 | |||||
Scenario 0 | Scenario 1 | Scenario 2 | Scenario 3 | Scenario 4 | Scenario 5 | |
of shares | 0% | -20% | -10% | -20% | -20% | 0% |
of bonds | 0% | -5% | -3% | -5% | 0% | -5% |
of real estate | 0% | -5% | -10% | 0% | -10% | -10% |
Market value of assets less liabilities (in '000 EUR) | 7,881,965 | 6,036,750 | 6,368,866 | 6,306,199 | 7,108,693 | 6,001,674 |
Depending on the intended application, VIG Holding performs Value-at-Risk calculations for different sub-portfolios on behalf of VIG Insurance Group. The confidence levels vary between 95.0% and 99.5% and the holding periods between 20 and 250 days. In accordance with the nature of the portfolio, the largest contributions to Value-at-Risk are made by interest rate and spread components. As a way of validating the plausibility of the calculations, the Value-at-Risk of the most important sub-portfolios is calculated both according to the parametric method described above and according to the historical calculation method.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
The following table shows the Value-at-Risk (with a confidence level of 99%) of financial assets measured at fair value:
Value-at-Risk | 31/12/2024 | 31/12/2023 |
in EUR million | ||
10-day holding period | 477 | 782 |
20-day holding period | 675 | 1,106 |
60-day holding period | 1,169 | 1,915 |
2.8. Details regarding the net result
Result from financial instruments measured at FVtPL | 2024 | 2023 |
in EUR ‘000 | ||
Financial assets | 886,565 | 950,981 |
Mandatorily measured at FVtPL | 882,145 | 935,325 |
Loans | 225 | 176 |
Bonds | 99,116 | 164,226 |
Funds | 805,018 | 713,568 |
Shares and shares in companies | -14,232 | 67,422 |
Derivatives | -7,982 | -10,067 |
Designated measured at FVtPL | 4,420 | 15,656 |
Bonds | 4,420 | 15,656 |
Financial liabilities | 47 | 17 |
Designated measured at FVtPL | 47 | 17 |
Liabilities designated measured at FVtPL | 47 | 17 |
Interest result | 2024 | 2023 |
in EUR ‘000 | ||
Interest revenues | 1,215,651 | 1,110,995 |
Interest revenues using the effective interest rate method | 997,697 | 895,801 |
Financial assets measured at AC | 203,969 | 145,064 |
Financial assets measured at FVtOCI | 793,728 | 750,737 |
Interest revenues other | 217,954 | 215,194 |
Financial assets measured at FVtPL | 174,993 | 169,128 |
Equity instruments designated measured at FVtOCI | 9,495 | 6,943 |
Other income from financial instruments | 33,466 | 39,123 |
Interest expenses | -115,351 | -126,973 |
Interest expenses using the effective interest rate method | -71,532 | -87,869 |
Financial liabilities measured at AC | -71,532 | -87,869 |
Interest expenses other | -43,819 | -39,104 |
Liabilities designated measured at FVtPL | 0 | 17 |
Other expenses from financial instruments | -43,819 | -39,121 |
Total | 1,100,300 | 984,022 |
The fee for investment management recognised in the investment result amounts to EUR 37,361,000 (EUR 39,086,000).
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
2.9. Derecognition
Derecognition gains and losses may relate to events such as sales or maturities of financial assets measured at AC.
2024 | 2023 | |||
Gains | Losses | Gains | Losses | |
in EUR ‘000 | ||||
Loans | 0 | -4,874 | 9 | -37 |
Bonds | 1,167 | -1,369 | 149 | -41 |
Total | 1,167 | -6,243 | 158 | -78 |
3. Goodwill
The accounting policies used are presented in Note 24.5. Goodwill starting on page 250.
Development | 2024 | 2023 |
in EUR ‘000 | ||
Acquisition costs | 2,099,862 | 2,090,712 |
Cumulative impairment as of 31/12 of the previous year | -728,497 | -651,991 |
Book value as of 31/12 of the previous year = Book value as of 01/01 | 1,371,365 | 1,438,721 |
Exchange rate differences | -15,159 | 8,283 |
Impairments | -116,327 | -75,639 |
Book value as of 31/12 | 1,239,879 | 1,371,365 |
Cumulative impairment as of 31/12 | 840,734 | 728,497 |
Acquisition costs | 2,080,613 | 2,099,862 |
The impairments in the current financial year relate to the CGU group Hungary (segment Extended CEE).
Due to the repeated prolongation of the additional tax on insurance by the Hungarian government, scenario analyses for further expenses arising from this tax were calculated for a period extending beyond the currently applicable statutory period. This resulted in reduced cash flow projections, leading to an impairment of goodwill.
The impairments in the previous year predominantly affected the Baltic states CGU group (EUR 75,481,000) (segment Extended CEE).
Goodwill of CGU units (book values) | 31/12/2024 | 31/12/2023 |
in EUR ‘000 | ||
Austria | 301,716 | 301,716 |
Czech Republic | 448,108 | 456,516 |
Poland | 153,735 | 151,449 |
Bulgaria | 124,354 | 124,354 |
Slovakia | 131,227 | 131,227 |
Hungary | 70,212 | 195,576 |
Group Functions | 10,527 | 10,527 |
Total | 1,239,879 | 1,371,365 |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Impairment and recoverable amounts for CGU groups | Reportable segment | 2024 | 2023 | ||
Impairments | Recoverable amount | Impairments | Recoverable amount | ||
in EUR ‘000 | |||||
Baltic states | Extended CEE | 75,481 | 231,883 | ||
Hungary | Extended CEE | 116,327 | 303,848 | ||
Impairments are recognised in the income statement as a separate item between the subtotal, business operating result and the result before taxes.
Generally applied calculation parameters | 2024 | 2023 |
Base rate before inflation differentials in % | 2.59 | 2.22 |
Market risk premium in % | 6.91 | 7.53 |
Beta-factor* | 0.89 | 0.90 |
*The beta factor was calculated based on a specified peer group.
Key calculation parameters | Discount rates* | Country risks | Long-term growth rate | |||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
in % | ||||||
Austria | 9.24 | 9.54 | 0.53 | 0.58 | 1.50 | 1.50 |
Czech Republic | 9.49 | 9.64 | 0.80 | 0.88 | 3.77–4.10 | 3.67–4.87 |
Poland | 10.70 | 11.52 | 1.13 | 1.24 | 5.48–5.75 | 5.87–7.43 |
Albania incl. Kosovo | 13.95 | 15.98 | 4.80 | 6.58 | 6.56 | 6.60 |
Baltic states | 9.93 | 10.30 | 1.22 | 1.34 | 4.82–7.60 | 5.00–7.51 |
Bosnia-Herzegovina | 17.21 | 18.29 | 8.67 | 9.51 | 5.45–7.23 | 5.49–7.32 |
Bulgaria | 10.97 | 11.09 | 2.13 | 2.34 | 5.49–6.16 | 5.75–6.37 |
Croatia | 10.31 | 11.74 | 1.60 | 2.78 | 4.78–6.38 | 5.07–7.34 |
Moldova | 20.39 | 21.23 | 8.67 | 9.51 | 8.28 | 8.33 |
North Macedonia | 13.52 | 14.02 | 4.80 | 5.26 | 5.92 | 5.85 |
Romania | 12.73 | 13.06 | 2.93 | 3.21 | 5.49–7.73 | 5.38–7.82 |
Serbia | 13.82 | 14.46 | 4.02 | 4.40 | 5.50–7.35 | 5.69–7.51 |
Slovakia | 10.31 | 10.20 | 1.60 | 1.24 | 4.54–5.31 | 5.07–5.33 |
Ukraine | 28.55 | 30.97 | 16.01 | 17.55 | 9.80–12.93 | 10.06–13.08 |
Hungary | 12.31 | 13.29 | 2.54 | 2.78 | 5.44–6.30 | 6.68–6.71 |
Germany | 8.71 | 8.96 | 0.00 | 0.00 | 1.50 | 1.50 |
Georgia | 13.74 | 14.12 | 4.02 | 4.40 | 6.45 | 6.53 |
Liechtenstein | 8.71 | 8.96 | 0.00 | 0.00 | 1.50 | 1.50 |
Türkiye | 30.02 | 61.41 | 6.01 | 9.51 | 12.28–15.22 | 26.35–29.20 |
Group Functions | 9.24–13.82 | 9.54–14.46 | 0.53–4.02 | 0.58–4.40 | 1.50–7.35 | 1.50–7.51 |
*The calculation of the discount rates is based on pre-tax parameters.
Sensitivities | 31/12/2024 | ||||
Additional impairment needed | Cash flows | Growth rate | Discount rate | Cash flows and discount rate | Deterioration of reinsurance result |
-10% | -1%p | +1%p | -10% and +1%p | -10% | |
in EUR ‘000 | |||||
Slovakia | 0 | 0 | 0 | 14,489 | 0 |
Hungary | 24,468 | 7,980 | 29,410 | 50,633 | 32,921 |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Sensitivities | 31/12/2023 | |||
Additional impairment needed | Cash flows | Growth rate | Discount rate | Cash flows and discount rate |
-10% | -1%p | +1%p | -10% and +1%p | |
in EUR ‘000 | ||||
Czech Republic | 0 | 0 | 0 | 39,977 |
Slovakia | 37,005 | 0 | 34,617 | 91,740 |
4. Investment property
The accounting policies used are presented in Note 24.7. Investment property starting on page 252. The fair values can be found in Note 16. Calculation of fair value starting on page 198.
Development | 2024 | 2023 |
in EUR ‘000 | ||
Acquisition costs | 3,914,121 | 3,613,686 |
Cumulative valuation as of 31/12 of the previous year | -1,062,031 | -968,671 |
Book value as of 31/12 of the previous year = Book value as of 01/01 | 2,852,090 | 2,645,015 |
Exchange rate differences | 1,409 | 10,445 |
Reclassifications | 2,957 | 7,180 |
Additions | 198,289 | 247,823 |
Disposals | -1,100 | -9,974 |
Changes in scope of consolidation | 2 | 47,941 |
Appreciation | 3,636 | 0 |
Scheduled depreciation | -75,281 | -69,647 |
Impairments | -3,737 | -26,693 |
Book value as of 31/12 | 2,978,265 | 2,852,090 |
Cumulative valuation as of 31/12 | 1,135,305 | 1,062,031 |
Acquisition costs | 4,113,570 | 3,914,121 |
The impairments are due mainly to the buildings of SIA “Ģertrūdes 121” (EUR 1,000,000) and NNC REAL ESTATE SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOŚCIĄ (EUR 1,882,000). The impairments from the previous year were due mainly to the buildings of ATRIUM TOWER SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOSCIĄ (EUR 6,021,000), KKB Real Estate SIA (EUR 4,546,000), VIG FUND, a.s. (EUR 4,108,000) and Pereca 11 Spółka z ograniczoną odpowiedzialnością (EUR 3,150,000).
The appreciation is due mainly to the buildings of ATRIUM TOWER SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOSCIĄ (EUR 2,507,000) and VIG FUND a.s. (EUR 1,000,000).
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Amounts recognised in profit or loss | 2024 | 2023 |
in EUR ‘000 | ||
Rental income | 214,139 | 194,758 |
Operating expenses | -78,838 | -70,045 |
Operating expenses for rented investment property | -72,640 | -65,496 |
Operating expenses for vacant investment property | -6,198 | -4,549 |
Disposal result | 705 | 3,470 |
Gain from disposal | 861 | 3,798 |
Losses from disposal | -156 | -328 |
Total | 136,006 | 128,183 |
Type of usage | 31/12/2024 | 31/12/2023 |
in EUR ‘000 | ||
Self-used | 13,770 | 8,513 |
Rented (operating lease) | 2,964,495 | 2,843,577 |
Total | 2,978,265 | 2,852,090 |
There are no material existence and amounts of restrictions or material contractual obligations for acquiring the items under “Investment property”.
Use of properties in % of the property portfolio | 31/12/2024 | 31/12/2023 |
Austria | 66.63 | 66.86 |
Owner-occupied property | 4.87 | 4.93 |
Investment property | 61.76 | 61.93 |
Group Functions | 17.74 | 17.20 |
Owner-occupied property | 1.18 | 1.09 |
Investment property | 16.56 | 16.11 |
Other segments | 15.63 | 15.94 |
Owner-occupied property | 7.50 | 8.16 |
Investment property | 8.13 | 7.78 |
5. Owner-occupied property
The accounting policies used are presented in Note 24.8. Owner-occupied property starting on page 252.
Composition | 31/12/2024 | 31/12/2023 |
in EUR ‘000 | ||
Owner-occupied property | 466,840 | 470,950 |
Tangible assets | 162,222 | 148,209 |
Total | 629,062 | 619,159 |
There are no material existence and amounts of restrictions or material contractual obligations for acquiring the items under “Owner-occupied property and equipment".
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Development | 2024 | 2023 |
in EUR ‘000 | ||
Acquisition costs | 772,132 | 772,481 |
Cumulative valuation as of 31/12 of the previous year | -301,182 | -289,640 |
Book value as of 31/12 of the previous year = Book value as of 01/01 | 470,950 | 482,841 |
Exchange rate differences | -3,461 | -524 |
Reclassifications | -4,554 | -8,453 |
Additions | 25,471 | 16,970 |
Disposals | -1,352 | -954 |
Changes in scope of consolidation | -2,083 | 0 |
Scheduled depreciation | -18,131 | -17,704 |
Impairments | 0 | -1,226 |
Book value as of 31/12 | 466,840 | 470,950 |
Cumulative valuation as of 31/12 | 310,150 | 301,182 |
Acquisition costs | 776,990 | 772,132 |
The changes in the scope of consolidation result from the deconsolidation of Driving Camp Autodrom Sosnova a.s.
Book value reportable segments | 31/12/2024 | 31/12/2023 |
in EUR ‘000 | ||
Austria | 167,634 | 163,344 |
Czech Republic | 111,479 | 118,123 |
Poland | 7,728 | 11,667 |
Extended CEE | 133,195 | 135,416 |
Special Markets | 6,007 | 6,022 |
Group Functions | 40,797 | 36,378 |
Total | 466,840 | 470,950 |
Type of usage | 31/12/2024 | 31/12/2023 |
in EUR ‘000 | ||
Owner-occupied property | 466,840 | 470,950 |
Self-used | 436,510 | 449,558 |
Rented (operating lease) | 30,330 | 21,392 |
6. Investments in associates
The Investments in associates balance sheet item consists only of shares in at equity consolidated companies. The list of associates is presented in Note 20. Business combinations starting on page 209.
Shares in at equity consolidated companies had a book value of EUR 205 million as of 31 December 2024 and a book value of EUR 186 million as of 31 December 2023. Shares in at equity consolidated companies therefore represented 0.56% (0.53%) of the book value of the total risk-bearing portfolio as of 31 December 2024.
Composition of the result | 2024 | 2023 |
in EUR ‘000 | ||
Income | 27,001 | 16,466 |
Current result | 27,001 | 16,466 |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
7. Receivables and Liabilities
The accounting policies used are presented in Note 24.12. Receivables and Liabilities starting on page 258.
7.1. Receivables
Composition | 31/12/2024 | 31/12/2023 | ||||
Gross carrying amount | ECL | Net carrying amount | Gross carrying amount | ECL | Net carrying amount | |
in EUR ‘000 | ||||||
IFRS 9 measured receivables | 461,697 | -19,840 | 441,857 | 440,374 | -21,417 | 418,957 |
Other receivables | 118,111 | 118,111 | 76,715 | 76,715 | ||
Total | 579,808 | -19,840 | 559,968 | 517,089 | -21,417 | 495,672 |
Maturity structure | 31/12/2024 | 31/12/2023 |
in EUR ‘000 | ||
Up to 1 year | 408,920 | 359,471 |
More than one year up to five years | 61,508 | 60,655 |
More than five years up to ten years | 20,229 | 19,570 |
More than ten years | 69,311 | 55,976 |
Total | 559,968 | 495,672 |
7.2. Liabilities
Composition | 31/12/2024 | 31/12/2023 |
in EUR ‘000 | ||
IFRS 9 measured liabilities | 582,834 | 587,214 |
Other liabilities | 573,984 | 525,461 |
Total | 1,156,818 | 1,112,675 |
For detailed information on the tax liabilities, please refer to the statements in Note 11. Taxes starting on page 191.
For detailed information on the lease liabilities, please refer to the statements in Note 8. Financial liabilities on page 186.
Maturity structure | 31/12/2024 | 31/12/2023 |
in EUR ‘000 | ||
Up to 1 year | 838,197 | 798,211 |
More than one year up to five years | 48,914 | 51,987 |
More than five years up to ten years | 35,865 | 28,203 |
More than ten years | 233,842 | 234,274 |
Total | 1,156,818 | 1,112,675 |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
8. Financial liabilities
8.1. Overview
Composition | 31/12/2024 | 31/12/2023 |
in EUR ‘000 | ||
Subordinated liabilities | 1,215,495 | 1,309,283 |
Liabilities to banks | 298,188 | 306,881 |
Liabilities from financing activities | 579,072 | 579,908 |
Liabilities for derivatives | 60,746 | 1,296 |
Lease liabilities | 220,131 | 198,398 |
Liabilities designated measured at FVtPL | 508 | 555 |
Total | 2,374,140 | 2,396,321 |
The development of financial liabilities has been changed in comparison to the development presented in the Group Annual Report 2023, and now only the main balance sheet items are presented.
Development | 31/12/2024 | ||
Subordinated liabilities | Liabilities to banks | Liabilities from financing activities | |
in EUR ‘000 | |||
Book value as of 31/12 of the previous year = Book value as of 01/01 | 1,309,283 | 306,881 | 579,908 |
Cash changes | -144,945 | -13,269 | -7,183 |
Cash inflows | 0 | 40 | 50 |
Payments | -91,748 | -9,336 | -1,473 |
Paid interest | -53,197 | -3,973 | -5,760 |
Non-cash changes | 51,157 | 4,576 | 6,347 |
Additions | 51,570 | 4,575 | 6,339 |
Changes in scope of consolidation | 0 | 2 | 0 |
Exchange rate differences | -413 | -1 | 8 |
Book value as of 31/12 | 1,215,495 | 298,188 | 579,072 |
Development | 31/12/2023 | ||
Subordinated liabilities | Liabilities to banks | Liabilities from financing activities | |
in EUR ‘000 | |||
Book value as of 31/12 of the previous year = Book value as of 01/01 | 1,789,281 | 343,898 | 593,118 |
Cash changes | -546,812 | -42,113 | -6,408 |
Cash inflows | 0 | 23 | 509 |
Payments | -469,987 | -37,719 | -1,287 |
Paid interest | -76,825 | -4,417 | -5,630 |
Non-cash changes | 66,814 | 5,096 | -6,802 |
Additions | 67,382 | 5,096 | 6,278 |
Changes in scope of consolidation | 0 | 0 | -21,760 |
Reclassifications | 0 | 0 | 8,643 |
Exchange rate differences | -568 | 0 | 37 |
Book value as of 31/12 | 1,309,283 | 306,881 | 579,908 |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
8.2. Subordinated liabilities
Subordinated liabilities of the Group
1The outstanding include the respective pro rata interest according to the dirty value method.
2The fair value is calculated on the basis of the securities' nominal value only, excluding accrued interest.
3The right to ordinary and extraordinary cancellation by the holder is excluded. Regular cancellation by the issuer is first allowed after 11 years.
4The right to ordinary and extraordinary cancellation by the holder is excluded. Regular cancellation by the issuer is first allowed after 10 years.
5The right to ordinary and extraordinary cancellation by the holder is excluded. No provision has been made for regular cancellation by the issuer.
Subordinated liabilities of VIG Holding
Interest on the supplementary capital bonds is paid out only if the interest is covered by the national annual profit of the company. However, the interest is included in the expenses in any case.
A subordinated bond with a total nominal amount of EUR 400,000,000.00 and a term of 31 years was issued on 2 March 2015. It can be called at 100% by VIG Holding for the first time at 2 March 2026 and at every coupon date after that. In the first 11 years of the term, the subordinated bond bears a fixed-interest rate of 3.75% per annum, after which the interest rate is variable. The subordinated bond meets the Tier 2 requirements according to Solvency II. The bond is listed on the Luxembourg Stock Exchange. An early partial buyback of subordinated bonds was effected on 21 April 2023. About 46% (EUR 185.6 million) were bought back. Thus, the still outstanding volume of these bonds is EUR 214.4 million.
A subordinated bond of EUR 200,000,000.00 was issued on 6 April 2017 as part of a private placement. The subordinated bond has a term of 30 years and can be called by VIG Holding for the first time after the expiry of 10 years. It complies with the Tier 2 requirements according to Solvency II and qualifies as capital in accordance with the requirements of rating agency S&P. In the first ten years of the term, the subordinated debt instruments bear a fixed-interest rate of 3.75% per annum, after which the interest rate is variable. The inclusion in the Third Market of the Vienna Stock Exchange took place on 13 April 2017.
A subordinated Tier 2 bond with an aggregate principal amount of EUR 500,000,000.00 was placed on 8 June 2022. The subordinated bond has a term of 20 years and can be called by VIG Holding for the first time after the expiry of 10 years. It complies with the Tier 2 requirements according to Solvency II and qualifies as capital in accordance with the requirements of rating agency S&P. The debt instruments will initially bear a fixed-interest rate of 4.875% per annum. Provided they are not called and repurchased before this date, the debt instruments will be subject to a variable rate as of and including 15 June 2032. The debt instruments are traded on the Vienna Stock Exchange.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
9. Notes to the consolidated income statement
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
10. Consolidated shareholders’ equity
Further information on the shareholders’ equity can be found starting on page 256.
10.1. Dividend payment
Composition | 31/12/2024 | 31/12/2023 |
in EUR ‘000 | ||
Dividends | 179,200 | 166,400 |
Interest payments on the hybrid capital | 9,638 | 9,638 |
Deferred taxes directly recognised in equity | -1,995 | -2,082 |
Total | 186,843 | 173,956 |
Payout 2024 for the financial year 2023 | per share | Total |
in EUR | ||
Ordinary shares | 179,200,000 | |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
10.2. Proposed appropriation of profits
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe (VIG Holding) concluded financial year 2024 with a net retained profit of EUR 392,795,125.51. The following appropriation of profits will be proposed at the Annual General Meeting:
The 128 million shares will receive a dividend of EUR 1.55 per share. For this dividend, 28 May 2025 was agreed as the payment date, 27 May 2025 as the record date and 26 May 2025 as the ex-dividend date.
A total distribution of EUR 198,400,000.00 has therefore been approved. The remaining net retained profit of financial year 2024 of EUR 194,395,125.51 after the distribution should be carried forward to the new account.
10.3. Capital reserves – hybrid capital
Issue date | Outstanding volume | Maturity | Yield | Fair value |
in EUR ‘000 | in years | in % | in EUR ‘000 | |
10/06/2021 | 300,000 | unlimited | First 10 years: 3.2125% p.a.; thereafter variable | 263,497 |
As part of a private placement with the main shareholder, Wiener Städtische Versicherungsverein, VIG Holding placed a hybrid capital bond on 15 March 2021. The hybrid capital fulfils the shareholders’ equity criteria in accordance with IAS 32.16C and .16D, as the issuer is free to decide about the interest payment and the term is unrestricted. It also complies with the Restricted Tier 1 equirements according to Solvency II as well as the capital qualification in accordance with the rating agency S&P.
10.4. Other reserves
Composition | 31/12/2024 | |||
Gross | +/- Deferred taxes | +/- Non-controlling interests | Net | |
in EUR ‘000 | ||||
Unrealised gains and losses | 266,642 | -70,958 | -4,153 | 191,531 |
IFRS 9-reserves recyclable* | -823,095 | 174,077 | 11,673 | -637,345 |
IFRS 9-reserves non-recyclable | 22,518 | -2,789 | -163 | 19,566 |
IFRS 17-reserves recyclable | 208,332 | -46,095 | -2,574 | 159,663 |
IFRS 17-reserves non-recyclable | 858,887 | -196,151 | -13,089 | 649,647 |
Actuarial gains and losses from provisions for employee benefits | -191,785 | 43,708 | 3,089 | -144,988 |
Share of other reserves of associated consolidated companies | -7,977 | 0 | 174 | -7,803 |
Currency reserve | -152,853 | 0 | 5,254 | -147,599 |
Total | -85,973 | -27,250 | 4,364 | -108,859 |
*Thereof reclassified to income statement in gross value: EUR 98,291,000.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Composition | 31/12/2023 | |||
Gross | +/- Deferred taxes | +/- Non-controlling interests | Net | |
in EUR ‘000 | ||||
Unrealised gains and losses | 226,014 | -66,693 | -4,146 | 155,175 |
IFRS 9-reserves recyclable* | -997,005 | 213,339 | 12,054 | -771,612 |
IFRS 9-reserves non-recyclable | -1,953 | -3,155 | -241 | -5,349 |
IFRS 17-reserves recyclable | 301,363 | -56,951 | -3,422 | 240,990 |
IFRS 17-reserves non-recyclable | 923,609 | -219,926 | -12,537 | 691,146 |
Actuarial gains and losses from provisions for employee benefits | -188,664 | 42,936 | 3,022 | -142,706 |
Share of other reserves of associated consolidated companies | -11,888 | 0 | 250 | -11,638 |
Currency reserve | -144,572 | 0 | 4,016 | -140,556 |
Total | -119,110 | -23,757 | 3,142 | -139,725 |
*Thereof reclassified to income statement in gross value: EUR 122,542,000.
11. Taxes
The accounting policies used are presented in Note 24.13. Taxes starting on page 259.
11.1. Tax expenses
Composition | 2024 | 2023 |
in EUR ‘000 | ||
Actual taxes | 174,289 | 152,883 |
From the current period* | 175,189 | 143,208 |
From previous periods | -900 | 9,675 |
Deferred taxes | 40,651 | 43,560 |
Change of deferred taxes in the current year | 38,032 | 55,865 |
Deferred taxes due to temporary differences relating to other periods | 5,120 | -8,948 |
Deferred taxes due to loss carry forwards relating to other periods | -2,501 | -3,357 |
Total | 214,940 | 196,443 |
*The global minimum taxation is included in the item “Actual taxes from the current period” and the amount in question is not considered to be material for the Group.
Reconciliation | 2024 | 2023 |
in EUR ‘000 | ||
Expected tax rate in % | 23.0% | 24.0% |
Result before taxes | 881,806 | 772,689 |
Expected tax expenses | 202,815 | 185,445 |
Adjusted for tax effects due to: | ||
Different local tax rate | -29,011 | -31,061 |
Change of tax rates | -1,373 | -11,528 |
Non-deductible expenses | 118,089 | 131,049 |
Income not subject to tax | -96,952 | -100,669 |
Taxes from previous years | 1,720 | -2,630 |
Non-recognition/reduction of deferred tax assets due to temporary differences | 1,539 | 6,099 |
Non-recognition/reduction of deferred tax assets due to loss carry forwards | 504 | 6,023 |
Effects due to group taxation/profit transfers | -2,871 | -403 |
Others | 20,480 | 14,118 |
Effective tax expenses | 214,940 | 196,443 |
Effective tax rate in % | 24.4% | 25.4% |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
The income tax rate of the parent company is used as the group tax rate.
The non-deductible expenses include depreciation, expenses related to tax-free income and other non-deductible expenses. The income not subject to tax is due in particular to appreciation, received dividends and interest.
11.2. Deferred taxes
The deferred tax assets and liabilities reported relate to temporary differences in the balance sheet items listed in the table below (the differences were measured using the applicable tax rates). It should be noted that deferred taxes, as far as permissible, are offset at the taxpayer level, and, accordingly, the different balances are shown either as assets or liabilities on the balance sheet.
Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that the deferred tax assets can be used. Deferred tax assets are examined each balance sheet date and reduced to the extent that it is no longer probable that the associated tax benefits can be realised.
Composition | 31/12/2024 | 31/12/2023 | ||
Assets | Liabilities | Assets | Liabilities | |
in EUR ‘000 | ||||
Cash and cash equivalents | 255 | 28,132 | 32 | 42,605 |
Financial assets and Investments in associates | 557,214 | 448,326 | 553,663 | 393,599 |
Receivables and Other assets | 166,976 | 27,962 | 211,304 | 22,191 |
Insurance contracts assets1 | 180,067 | 152,311 | 225,921 | 118,421 |
Investment property as well as Owner-occupied property and equipment | 16,927 | 35,749 | 13,627 | 36,711 |
Goodwill and Intangible assets | 3,947 | 30,663 | 4,088 | 12,801 |
Right-of-use assets | 0 | 65,283 | 0 | 59,319 |
Liabilities and other payables, Financial liabilities and Other liabilities | 316,163 | 63,874 | 275,614 | 73,449 |
Insurance contracts liabilities2 | 677,935 | 1,080,897 | 665,666 | 1,137,070 |
Provisions | 139,893 | 95,061 | 122,299 | 90,088 |
Tax-exempt reserves | 0 | 8,870 | 0 | 9,162 |
Accumulated losses carried forward | 32,012 | 0 | 46,293 | 0 |
Sum before valuation allowance | 2,091,389 | 2,037,128 | 2,118,507 | 1,995,416 |
Valuation allowance for deferred tax assets | -35,909 | -42,012 | ||
Total before netting | 2,055,480 | 2,037,128 | 2,076,495 | 1,995,416 |
Netting | -1,603,417 | -1,603,417 | -1,593,208 | -1,593,208 |
Net balance | 452,063 | 433,711 | 483,287 | 402,208 |
1Incl. Insurance contracts assets issued and Reinsurance contracts assets held
2Incl. Insurance contracts liabilities issued and Reinsurance contracts liabilities held
Deferred tax assets from seven-year amortisation of participations to going concern value were recognised in the amount of EUR 13,419,000 (EUR 10,458,000). Those amounts not recognised amount to EUR 0 (EUR 3,810,000). Deferred tax liabilities and deferred tax assets of consolidated taxable entities in the tax groups collected by the same tax authority were netted, resulting in a deferred tax liability of EUR 51,311,000 (EUR 875,000). In accordance with IAS 12.39, deferred tax liabilities were not reported for temporary differences from interests in subsidiaries and associated companies since they would not be reversed in the foreseeable future. The difference between the book value for tax purposes and the IFRS shareholders' equity is EUR 1,993,081,000 (EUR 1,868,341,000). Deferred taxes for undistributed subsidiary profits of EUR 9,218,000 (EUR 17,252,000) were also not reported, because a decision to distribute the profits had not yet been made.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Deferred taxes on temporary differences in the amount of EUR -14,972,000 (EUR -14,612,000) as well as deferred taxes on loss carryforwards in the amount of EUR -20,937,000 (EUR -27,400,000) are not recognised.
Deferred tax assets on tax loss carryforwards not recognised | 2024 | 2023 |
in EUR ‘000 | ||
Bosnia-Herzegovina | -108 | -309 |
Estonia | -340 | -340 |
Croatia | 0 | -25 |
Liechtenstein | -970 | -960 |
Lithuania | -225 | -275 |
Austria | -10,571 | -9,601 |
Poland | -4,725 | -9,379 |
Romania | -115 | -1,469 |
Serbia | -654 | -822 |
Slovakia | -1,989 | -577 |
Slovenia | 0 | -40 |
Czech Republic | -4 | -121 |
Ukraine | 0 | -85 |
Hungary | -1,236 | -3,397 |
Total | -20,937 | -27,400 |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
11.3. Tax rates
The deferred taxes are based on the following tax rates:
Tax rates | 31/12/2024 | 31/12/2023 |
in % | ||
Albania | 15.0 | 15.0 |
Bosnia-Herzegovina | 10.0 | 10.0 |
Bulgaria | 10.0 | 10.0 |
Germany1 | 30.0 | 30.0 |
Estonia2 | 0.0 | 0.0 |
Georgia3 | 0.0 | 15.0 |
Kosovo | 10.0 | 10.0 |
Croatia | 18.0 | 18.0 |
Latvia4 | 0.0 | 0.0 |
Liechtenstein | 12.5 | 12.5 |
Lithuania5 | 15.0 | 15.0 |
Moldova | 12.0 | 12.0 |
North Macedonia | 10.0 | 10.0 |
Netherlands | 25.8 | 25.8 |
Austria6 | 23.0 | 24.0 |
Poland | 19.0 | 19.0 |
Romania | 16.0 | 16.0 |
Serbia | 15.0 | 15.0 |
Slovakia7 | 21.0 | 21.0 |
Czech Republic | 21.0 | 19.0 |
Türkiye | 30.0 | 30.0 |
Ukraine | 18.0 | 18.0 |
Hungary | 11.3 | 11.3 |
1The tax rate shown here is a flat tax rate. The tax rate is between 15.825% and 31.925%, depending on the registered office and activities of the company.
2The retained profits of locally domiciled companies are not subject to corporate income tax. Profit distributions by the companies are subject to a tax rate of 14.0% to 20.0%. From 1 January 2025, the corporate income tax rate will increase to 22.0%.
3The retained profits of locally domiciled companies are not subject to corporate income tax. Profit distributions by the companies are subject to a tax rate of 15.0%.
4The retained profits of locally domiciled companies are not subject to corporate income tax. Profit distributions by the companies are subject to a tax rate of 20.0%.
5From 1 January 2025, the corporate income tax rate will increase to 16.0%.
6The second and last incremental reduction in corporate income tax was made in 2024. The rate was reduced from 24.0% to 23.0% due to a change in the law.
7The corporate income tax rate is 21.0%, but insurance companies have to pay additional taxes, meaning that a tax rate of 25.36% applies to these companies. From 1 January 2025, the corporate income tax rate will increase to 24.0%.
12. Provisions
The accounting policies used are presented in Note 24.11. Provisions starting on page 258.
Composition | 31/12/2024 | 31/12/2023 |
in EUR ‘000 | ||
Provisions for pensions and similar obligations | 333,117 | 340,708 |
Provision for pension obligations | 232,752 | 236,499 |
Provision for severance obligations | 100,365 | 104,209 |
Provisions for other employee benefits | 87,399 | 71,853 |
Miscellaneous provisions | 372,585 | 336,059 |
Total | 793,101 | 748,620 |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Miscellaneous provisions
Composition | 31/12/2024 | 31/12/2023 |
in EUR ‘000 | ||
Provision for customer support and marketing | 24,034 | 19,947 |
Provision for litigation | 21,225 | 19,398 |
Provisions for IT | 78,598 | 78,966 |
Other provisions | 248,728 | 217,748 |
Provision for guaranteed interest for pension funds | 61,683 | 30,396 |
Provision for regulatory risks | 46,307 | 28,542 |
Onerous maintenance contracts | 920 | 920 |
Remaining other provisions | 139,818 | 157,890 |
Total | 372,585 | 336,059 |
Development | Book value 01/01/2024 | Changes in scope of consolidation | Exchange rate differences | Reclassification | Additions | Amount used | Release | Book value 31/12/2024 |
in EUR ‘000 | ||||||||
Provision for customer support and marketing | 19,947 | 570 | 100 | 2,392 | 18,108 | -9,194 | -7,889 | 24,034 |
Provision for litigation | 19,398 | 7,902 | -244 | 0 | 4,983 | -2,153 | -8,661 | 21,225 |
Provisions for IT | 78,966 | 319 | 28 | 0 | 78,360 | -51,146 | -27,929 | 78,598 |
Other provisions | 217,748 | 28,993 | -1,038 | -2,392 | 119,145 | -45,813 | -67,915 | 248,728 |
Total | 336,059 | 37,784 | -1,154 | 0 | 220,596 | -108,306 | -112,394 | 372,585 |
Maturity structure | 31/12/2024 | 31/12/2023 |
in EUR ‘000 | ||
Up to 1 year | 255,437 | 249,606 |
More than one year up to five years | 39,344 | 40,583 |
More than five years up to ten years | 15,474 | 15,474 |
More than ten years | 62,330 | 30,396 |
Total | 372,585 | 336,059 |
13. Intangible assets
The accounting policies used are presented in Note 24.6. Intangible assets starting on page 251.
Composition | 31/12/2024 | 31/12/2023 |
in EUR ‘000 | ||
Purchased software | 500,119 | 476,139 |
Other intangible assets | 196,751 | 114,222 |
Total | 696,870 | 590,361 |
The increase in Other intangible assets resulted from the increase in customer bases and was primarily due to the first-time consolidation of Vienna PTE and Carpathia Pensii.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Purchased software
Development | 2024 | 2023 |
in EUR ‘000 | ||
Acquisition costs | 1,048,854 | 940,268 |
Cumulative valuation as of 31/12 of the previous year | -572,715 | -494,150 |
Book value as of 31/12 of the previous year = Book value as of 01/01 | 476,139 | 446,118 |
Exchange rate differences | -4,165 | 562 |
Reclassifications | -14,930 | -361 |
Additions | 130,732 | 120,481 |
Disposals | -2,518 | -3,328 |
Changes in scope of consolidation | 3,400 | 0 |
Reversal of impairments | 8 | 0 |
Scheduled depreciation | -88,463 | -80,498 |
Impairments | -84 | -6,835 |
Book value as of 31/12 | 500,119 | 476,139 |
Cumulative valuation as of 31/12 | 649,070 | 572,715 |
Acquisition costs | 1,149,189 | 1,048,854 |
14. Leases
Lessors – operating leases
Maturity analysis of undiscounted lease payments | 31/12/2024 | 31/12/2023 |
in EUR ‘000 | ||
Up to 1 year | 167,299 | 142,410 |
More than one up to two years | 154,787 | 127,156 |
More than two up to three years | 144,700 | 117,400 |
More than three up to four years | 132,112 | 108,340 |
More than four up to five years | 118,951 | 100,128 |
More than five years | 3,515,286 | 3,071,781 |
Total | 4,233,135 | 3,667,215 |
Lease income | 2024 | 2023 |
in EUR ‘000 | ||
Fixed lease income | 172,441 | 146,236 |
Lease income of variable lease payments | 33,115 | 27,638 |
Total | 205,556 | 173,874 |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
15. Type of expenses and details Other income and expenses
15.1. General information
Due to the accounting and valuation requirements of IFRS 17, expenses that are directly attributable to insurance contracts are included in the item Insurance service result. General administrative expenses are not directly attributable to insurance contracts and are included in the item of Other expenses.
The expenses that are taken into account under IFRS 17 amount to EUR 3,883,599,000 (EUR 3,677,783,000) in the current period. Apart from personnel expenses, a significant portion is made up of commissions paid, IT expenses, taxes related to insurance contracts and scheduled depreciation.
15.2. Personnel
Number of employees | 31/12/2024 | 31/12/2023 |
Number | ||
Sales representatives | 15,745 | 15,047 |
Office staff | 15,898 | 14,358 |
Total | 31,643 | 29,405 |
The employee figures shown are average values based on full-time equivalents.
Personnel expenses | 2024 | 2023 |
in EUR ‘000 | ||
Wages and salaries | 979,677 | 823,528 |
Expenses for severance benefits and payments to company pension plans | 9,134 | 7,320 |
Expenses for retirement provisions | 15,534 | 10,750 |
Mandatory social security contributions and expenses | 240,609 | 207,656 |
Other social security expenses | 36,471 | 29,344 |
Total | 1,281,425 | 1,078,598 |
Sales representatives | 499,043 | 458,997 |
Office staff | 782,382 | 619,601 |
15.3. Other income and expenses
2024 | 2023 adjusted | |
in EUR ‘000 | ||
Other income | 344,771 | 303,932 |
thereof exchange rate gains | 58,692 | 82,414 |
thereof other revenue from services | 166,429 | 121,222 |
Other expenses | -889,735 | -821,804 |
thereof general administrative expenses acc. to IFRS 17 | -541,786 | -512,564 |
thereof exchange rate losses | -56,809 | -87,797 |
thereof losses from non-monetary items acc. to IAS 29 | -30,947 | -31,547 |
thereof result from owner-occupied property | -6,637 | -13,388 |
Both the increase in general administrative expenses acc. to IFRS 17 and the increase in other revenues from services is due to a steady increase in regulatory requirements and a larger business volume.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Additional disclosures
16. Calculation of fair value
The accounting policies used are presented in Note 24.9. Calculation of fair value starting on page 252.
16.1. Fair value and book values of financial instruments and investments
Assets | 31/12/2024 | ||||
Book value | Level 1 | Level 2 | Level 3 | Fair value | |
in EUR ‘000 | |||||
Financial assets | 39,637,179 | 28,070,686 | 7,623,744 | 3,927,130 | 39,621,560 |
Measured at AC | 3,391,477 | 485,343 | 845,241 | 2,045,274 | 3,375,858 |
Loans | 654,913 | 0 | 538,281 | 111,313 | 649,594 |
Bonds | 931,707 | 479,288 | 306,960 | 122,960 | 909,208 |
Term deposits | 1,804,857 | 6,055 | 0 | 1,811,001 | 1,817,056 |
Mandatorily measured at FVtOCI | 24,486,454 | 20,683,803 | 3,700,951 | 101,700 | 24,486,454 |
Bonds | 24,486,454 | 20,683,803 | 3,700,951 | 101,700 | 24,486,454 |
Designated measured at FVtOCI | 291,027 | 38,162 | 0 | 252,865 | 291,027 |
Shares | 41,771 | 38,162 | 0 | 3,609 | 41,771 |
Shares in participating companies | 64,451 | 0 | 0 | 64,451 | 64,451 |
Shares in affiliated non-consolidated companies | 184,805 | 0 | 0 | 184,805 | 184,805 |
Mandatorily measured at FVtPL | 11,148,394 | 6,558,059 | 3,063,044 | 1,527,291 | 11,148,394 |
Shares | 365,741 | 289,226 | 5,619 | 70,896 | 365,741 |
Shares in participating companies | 24,332 | 0 | 0 | 24,332 | 24,332 |
Shares in affiliated non-consolidated companies | 7,841 | 0 | 0 | 7,841 | 7,841 |
Loans | 4,856 | 0 | 3,676 | 1,180 | 4,856 |
Bonds | 1,717,122 | 541,833 | 711,898 | 463,391 | 1,717,122 |
Funds | 9,010,758 | 5,726,992 | 2,340,241 | 943,525 | 9,010,758 |
Derivatives | 17,744 | 8 | 1,610 | 16,126 | 17,744 |
Designated measured at FVtPL | 319,827 | 305,319 | 14,508 | 0 | 319,827 |
Bonds | 319,827 | 305,319 | 14,508 | 0 | 319,827 |
Investments in associates | 204,761 | ||||
Investment property | 2,978,265 | 0 | 33,752 | 4,473,261 | 4,507,013 |
Owner-occupied property | 466,840 | 0 | 41,335 | 780,785 | 822,120 |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Assets | 31/12/2023 | ||||
Book value | Level 1 | Level 2 | Level 3 | Fair value | |
in EUR ‘000 | |||||
Financial assets | 37,990,239 | 25,459,784 | 9,241,370 | 3,268,013 | 37,969,167 |
Measured at AC | 2,963,320 | 448,858 | 1,004,637 | 1,488,753 | 2,942,248 |
Loans | 742,306 | 0 | 594,559 | 127,842 | 722,401 |
Bonds | 978,491 | 448,858 | 410,078 | 97,406 | 956,342 |
Term deposits | 1,242,523 | 0 | 0 | 1,263,505 | 1,263,505 |
Mandatorily measured at FVtOCI | 24,021,071 | 18,706,866 | 5,044,560 | 269,645 | 24,021,071 |
Bonds | 24,021,071 | 18,706,866 | 5,044,560 | 269,645 | 24,021,071 |
Designated measured at FVtOCI | 399,293 | 29,784 | 5,155 | 364,354 | 399,293 |
Shares | 38,259 | 29,784 | 5,155 | 3,320 | 38,259 |
Shares in participating companies | 70,088 | 0 | 0 | 70,088 | 70,088 |
Shares in affiliated non-consolidated companies | 290,946 | 0 | 0 | 290,946 | 290,946 |
Mandatorily measured at FVtPL | 10,393,733 | 6,112,598 | 3,135,874 | 1,145,261 | 10,393,733 |
Shares | 450,075 | 345,186 | 31,829 | 73,060 | 450,075 |
Shares in participating companies | 30,116 | 0 | 0 | 30,116 | 30,116 |
Shares in affiliated non-consolidated companies | 4,028 | 0 | 2,282 | 1,746 | 4,028 |
Bonds | 1,716,436 | 406,366 | 848,137 | 461,933 | 1,716,436 |
Funds | 8,174,035 | 5,361,046 | 2,251,947 | 561,042 | 8,174,035 |
Derivatives | 19,043 | 0 | 1,679 | 17,364 | 19,043 |
Designated measured at FVtPL | 212,822 | 161,678 | 51,144 | 0 | 212,822 |
Bonds | 212,822 | 161,678 | 51,144 | 0 | 212,822 |
Investments in associates | 185,622 | ||||
Investment property | 2,852,090 | 0 | 32,988 | 4,384,990 | 4,417,978 |
Owner-occupied property | 470,949 | 0 | 39,107 | 792,142 | 831,249 |
Financial liabilities | 31/12/2024 | ||||
Book value | Level 1 | Level 2 | Level 3 | Fair value | |
in EUR ‘000 | |||||
Measured at AC* | 2,092,755 | 0 | 1,621,176 | 385,516 | 2,006,692 |
Subordinated liabilities | 1,215,495 | 0 | 1,239,647 | 0 | 1,239,647 |
Liabilities to banks | 298,188 | 0 | 0 | 298,188 | 298,188 |
Liabilities from financing activities | 579,072 | 0 | 381,529 | 87,328 | 468,857 |
Mandatorily measured at FVtPL | 60,746 | 0 | 923 | 59,823 | 60,746 |
Liabilities for derivatives | 60,746 | 0 | 923 | 59,823 | 60,746 |
Designated measured at FVtPL | 508 | 0 | 0 | 508 | 508 |
Liabilities designated measured at FVtPL | 508 | 0 | 0 | 508 | 508 |
*Excl. lease liabilities
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Financial liabilities | 31/12/2023 | ||||
Book value | Level 1 | Level 2 | Level 3 | Fair value | |
in EUR ‘000 | |||||
Measured at AC* | 2,196,072 | 0 | 1,644,863 | 416,711 | 2,061,574 |
Subordinated liabilities | 1,309,283 | 0 | 1,248,646 | 21,655 | 1,270,301 |
Liabilities to banks | 306,881 | 0 | 0 | 306,881 | 306,881 |
Liabilities from financing activities | 579,908 | 0 | 396,217 | 88,175 | 484,392 |
Mandatorily measured at FVtPL | 1,296 | 0 | 707 | 589 | 1,296 |
Liabilities for derivatives | 1,296 | 0 | 707 | 589 | 1,296 |
Designated measured at FVtPL | 555 | 0 | 0 | 555 | 555 |
Liabilities designated measured at FVtPL | 555 | 0 | 0 | 555 | 555 |
*Excl. lease liabilities
The unrealised effect (net profit or loss) of Level 3 financial instruments that are still held and whose fair value will be recognised through profit and loss was EUR 68,185,000 (EUR 21,544,000) in the reporting period.
16.2. Reclassification of financial instruments
The companies in VIG Insurance Group regularly review the current validity of the last fair value classification performed on each valuation date. For example, a reclassification is performed if necessary inputs are no longer directly observable in the market.
Reclassifications | 31/12/2024 | ||||
Between Level 1 and Level 2 | Level 3 to Level 1 | Level 1 to Level 3 | Level 3 to Level 2 | Level 2 to Level 3 | |
Number | |||||
Measured at FVtOCI | 169 | 9 | 3 | 0 | 6 |
Mandatorily measured at FVtOCI | 152 | 9 | 3 | 0 | 5 |
Financial assets | 152 | 9 | 3 | 0 | 5 |
Designated measured at FVtOCI | 17 | 0 | 0 | 0 | 1 |
Financial assets | 17 | 0 | 0 | 0 | 1 |
Measured at FVtPL | 467 | 41 | 50 | 21 | 14 |
Mandatorily measured at FVtPL | 462 | 41 | 50 | 21 | 14 |
Financial assets | 462 | 41 | 50 | 21 | 14 |
Designated measured at FVtPL | 5 | 0 | 0 | 0 | 0 |
Financial assets | 5 | 0 | 0 | 0 | 0 |
Total | 636 | 50 | 53 | 21 | 20 |
The reclassifications between Level 1 and Level 2 are due to changes in liquidity, trading frequency and trading activity. The reclassifications from Level 3 to Level 1 are primarily based on an improvement in the liquidity assessment and/or the availability of valuation rates. The reclassifications from Level 1 to Level 3 are primarily based on a worsening of the liquidity and/or changes in the availability of valuation rates. The reclassifications from Level 3 to Level 2 are primarily based on an improvement in the liquidity. The reclassifications from Level 2 to Level 3 are primarily based on a worsening of the credit quality or liquidity.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Reclassifications | 31/12/2023 | ||
Between Level 1 and Level 2 | Level 1 to Level 3 | Level 2 to Level 3 | |
Number | |||
Measured at FVtOCI | 87 | 2 | 5 |
Mandatorily measured at FVtOCI | 87 | 2 | 5 |
Financial assets | 87 | 2 | 5 |
Measured at FVtPL | 189 | 9 | 10 |
Mandatorily measured at FVtPL | 183 | 9 | 8 |
Financial assets | 183 | 9 | 8 |
Designated measured at FVtPL | 6 | 0 | 2 |
Financial assets | 6 | 0 | 2 |
Total | 276 | 11 | 15 |
16.3. Measurement of the fair value of real estate
Basis of the measurement | 31/12/2024 | 31/12/2023 |
in EUR ‘000 | ||
Investment property | 4,507,013 | 4,417,978 |
Evaluated by an independent expert* | 952,700 | 1,010,579 |
Evaluated by an internal expert | 3,554,313 | 3,407,399 |
Owner-occupied property | 822,120 | 831,249 |
Evaluated by an independent expert | 364,204 | 378,823 |
Evaluated by an internal expert | 457,916 | 452,426 |
*This corresponds to 21.14% (22.87%) of the fair value of investment property.
Measurement method | 31/12/2024 | 31/12/2023 |
in EUR ‘000 | ||
Investment property | 4,507,013 | 4,417,978 |
Capitalised earnings value methode | 3,960,340 | 4,008,590 |
Comparative pricing method/market approach | 412,096 | 354,114 |
Other method | 134,577 | 55,274 |
Owner-occupied property | 822,120 | 831,249 |
Capitalised earnings value methode | 638,577 | 647,013 |
Comparative pricing method/market approach | 183,231 | 179,883 |
Other method | 312 | 4,353 |
16.4. Reconciliation of financial instruments
For information on the effects of changes in value recognised through profit and loss, please refer to Note 9. Notes to the consolidated income statement starting on page 188.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Development | 2024 | 2023 | ||||
Financial assets measured at FVtOCI | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 |
in EUR ‘000 | ||||||
Fair value as of 31/12 of the previous year = Fair value as of 01/01 | 18,736,650 | 5,049,715 | 633,999 | 18,251,987 | 3,865,880 | 483,349 |
Exchange rate differences | 15,643 | -45,958 | -2,350 | 21,703 | -1,505 | -16,257 |
Reclassification between classes of financial instruments | -253,187 | 256,816 | -7,545 | -25,816 | 15,770 | 127,046 |
Reclassification to level | 1,389,897 | 60,076 | 31,889 | 224,089 | 1,112,099 | 164,679 |
Reclassification from level | -61,411 | -1,386,034 | -34,417 | -1,131,929 | -315,281 | -53,658 |
Amortisation and accrued interest | 72,426 | 5,229 | 4,784 | 56,886 | 12,793 | -1,884 |
Additions | 5,005,745 | 418,822 | 57,431 | 3,396,212 | 591,244 | 200,781 |
Disposals | -4,338,851 | -740,683 | -167,168 | -2,977,020 | -522,290 | -108,319 |
Changes in scope of consolidation | 103,782 | 44,674 | -133,559 | 0 | -4,538 | -110,758 |
Changes in value recognised in profit and loss | 0 | 0 | 0 | 0 | 0 | 0 |
Changes in value recognised directly in equity | 51,271 | 38,294 | -28,499 | 920,538 | 295,543 | -50,980 |
Fair value as of 31/12 | 20,721,965 | 3,700,951 | 354,565 | 18,736,650 | 5,049,715 | 633,999 |
Development | 2024 | 2023 | ||||
Financial assets measured at FVtPL | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 |
in EUR ‘000 | ||||||
Fair value as of 31/12 of the previous year = Fair value as of 01/01 | 6,274,276 | 3,187,018 | 1,145,261 | 7,450,053 | 2,543,758 | 501,478 |
Exchange rate differences | 2,043 | -40,662 | 4,582 | 72,100 | -1,029 | -16,755 |
Reclassification between classes of financial instruments | 0 | 0 | 174 | 11,519 | 2,675 | -14,193 |
Reclassification to level | 712,432 | 392,643 | 256,489 | 244,114 | 774,013 | 592,993 |
Reclassification from level | -566,477 | -778,348 | -16,739 | -1,230,251 | -377,942 | -2,928 |
Amortisation and accrued interest | 6,868 | 8,031 | 4,785 | 1,081 | 8,718 | 5,142 |
Additions | 1,473,266 | 1,564,282 | 179,484 | 2,459,074 | 467,755 | 177,649 |
Disposals | -1,709,032 | -1,483,607 | -115,324 | -3,231,600 | -483,055 | -107,460 |
Changes in scope of consolidation | 332,312 | 67,731 | -99 | 0 | 0 | -12,528 |
Changes in value recognised in profit and loss | 337,690 | 160,464 | 68,678 | 498,186 | 252,125 | 21,863 |
Changes in value recognised directly in equity | 0 | 0 | 0 | 0 | 0 | 0 |
Fair value as of 31/12 | 6,863,378 | 3,077,552 | 1,527,291 | 6,274,276 | 3,187,018 | 1,145,261 |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
16.5. Unobservable input factors
Asset class | Measurement methods | Unobservable input factors | Range | 2024 | 2023 | ||
from | to | from | to | ||||
Property | Capitalised earnings value | Capitalisation rate | in % | 0.30 | 7.47 | 0.30 | 7.47 |
Rental income | in EUR ‘000 | 7 | 5,124 | 7 | 4,090 | ||
Land prices | in EUR ‘000 | 0 | 12 | 0 | 12 | ||
Discounted Cash flow | Capitalisation rate | in % | 5.33 | 9.18 | 4.11 | 8.92 | |
Rental income | in EUR ‘000 | 116 | 7,754 | 111 | 7,394 | ||
Building rights ‑ capitalised earnings value | Capitalisation rate | in % | 2.50 | 4.00 | 2.50 | 4.00 | |
Rental income | in EUR ‘000 | 83 | 4,349 | 83 | 4,378 | ||
Land prices | in EUR ‘000 | 0.31 | 0.80 | 0.30 | 0.73 | ||
Construction interest actually paid | in % | 0.90 | 4.56 | 0.90 | 3.96 | ||
Loans measured at AC | Present value method | Spreads | in % | 0.67 | 2.43 | -0.20 | 5.62 |
Bonds measured at AC | Present value method | Spreads | in % | 0.52 | 4.41 | -0.20 | 5.62 |
Bonds measured at FVtOCI | Present value method | Spreads | in % | 0.37 | 5.49 | -0.20 | 4.13 |
Bonds measured at FVtPL | Present value method | Spreads | in % | 0.37 | 3.27 | -0.20 | 3.81 |
16.6. Sensitivities
The following sensitivities result for a part of the portfolio from calculations using the Solvency II partial internal model:
Property – Fair Value | 2024 | 2023 |
in EUR ‘000 | ||
Fair value as of 31/12 | 4,657,075 | 4,619,995 |
Rental income -5% | 4,471,213 | 4,440,131 |
Rental income +5% | 4,852,852 | 4,805,545 |
Capitalisation rate -50bp | 4,944,994 | 4,918,764 |
Capitalisation rate +50bp | 4,414,298 | 4,369,458 |
Land prices -5% | 4,626,849 | 4,583,548 |
Land prices +5% | 4,695,507 | 4,660,968 |
Since property is measured at amortised cost in the consolidated balance sheet, negative sensitivities would only affect the consolidated income statement if property value fell below book value.
17. Earnings per share
Earnings per share | 2024 | 2023 | |
Result for the period | EUR '000 | 666,866 | 576,246 |
Non-controlling interests in net result for the period | EUR '000 | -21,610 | -17,267 |
Result for the period less non-controlling interests | EUR '000 | 645,256 | 558,979 |
Interest expenses for the hybrid capital | EUR '000 | 7,643 | 7,556 |
Attributable result | EUR '000 | 637,613 | 551,423 |
Number of shares at closing date | units | 128,000,000 | 128,000,000 |
Earnings per share* (in EUR) | EUR | 4.98 | 4.31 |
*The undiluted earnings per share equals the diluted earnings per share (in EUR).
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
18. Related persons and companies
Related companies are those affiliated companies and associated companies listed in Note 21. Affiliated companies and participations starting on page 210. Furthermore, the Managing Board and Supervisory Board members of VIG Holding are to be qualified as related persons.
Wiener Städtische Versicherungsverein holds directly and indirectly around 72.47% (around 72.47%) and, therefore, the majority of the voting rights of VIG Holding. Due to the given control, it is, therefore, also considered to be a related company and its Managing Board as well as Supervisory Board members are considered to be related persons.
18.1. Members of management in key positions
Supervisory Board | |
Chairman | Günter Geyer (until 24 May 2024) |
Chairman | Rudolf Ertl (since 24 May 2024) |
1st Deputy Chairman | Rudolf Ertl (until 24 May 2024) |
1st Deputy Chairman | Martin Simhandl (since 24 May 2024) |
2nd Deputy Chairman | Robert Lasshofer |
Members | Martina Dobringer |
Zsuzsanna Eifert (until 24 May 2024) | |
Gerhard Fabisch (until 24 May 2024) | |
András Kozma | |
Vratislav Kulhánek (since 24 May 2024) | |
Hana Machačová (since 24 May 2024) | |
Peter Mihók | |
Gabriele Semmelrock-Werzer (until 24 May 2024) | |
Katarína Slezáková | |
Ágnes Svoób (since 24 May 2024) | |
Peter Thirring | |
Gertrude Tumpel-Gugerell | |
Changes during the financial year
Günter Geyer, Zsuzsanna Eifert, Gabriele Semmelrock-Werzer and Gerhard Fabisch resigned from the Supervisory Board after their term of office ended on 24 May 2024. Vratislav Kulhánek, Hana Machačová, Martin Simhandl and Ágnes Svoób were elected as members of the Supervisory Board at the Annual General Meeting on 24 May 2024.
In 2024, the Supervisory Board elected Rudolf Ertl as Chairman of the Supervisory Board for the term of office until 30 June 2025. Peter Thirring was elected Chairman of the Supervisory Board for the remainder of the term of office from 1 July 2025 until the Annual General Meeting that will decide on the discharge for the 2027 financial year. Martin Simhandl was elected as 1st Deputy Chairman of the Supervisory Board for the entire term of office until the Annual General Meeting that will decide on the discharge for the 2027 financial year, and Robert Lasshofer was re-elected as the 2nd Deputy Chairman of the Supervisory Board.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Managing Board | |
Chairman | Hartwig Löger |
Deputy Chairman | Peter Höfinger |
Members | Liane Hirner |
Gerhard Lahner | |
Gábor Lehel | |
Harald Riener | |
Deputy member | Christoph Rath (since 1 September 2024) |
Change during the financial year
Christoph Rath was appointed as a deputy member of the Managing Board of VIG Holding with effect from 1 September 2024.
18.2. Key management personnel compensation
Composition | 2024 | 2023 | ||||
Supervisory Board Members | Managing Board Members | Total | Supervisory Board Members | Managing Board Members | Total | |
in EUR ‘000 | ||||||
Short‑term employee benefits | 902 | 6,805 | 7,707 | 866 | 7,527 | 8,393 |
Post‑employment benefits | 0 | 2,175 | 2,175 | 0 | 1,077 | 1,077 |
Other long‑term benefits | 0 | 5,104 | 5,104 | 0 | 5,535 | 5,535 |
Termination benefits | 0 | 0 | 0 | 0 | 81 | 81 |
Total | 902 | 14,084 | 14,986 | 866 | 14,220 | 15,086 |
In the reporting periods, the members of the Managing Board and the Supervisory Board did not receive any loans and advances, nor were they liable for any loans. The members of the Managing Board and the Supervisory Board also had no liability in the reporting periods.
Compensation policies for Managing Board members
The compensation of the company’s Managing Board reflects the importance of the Group and the related responsibility, as well as the company’s economic situation and the appropriateness of compensation in the market environment.
Sustainability is a point of emphasis for the variable compensation component; the full attainment of sustainability goals is highly dependent on taking a longer-term view of the company’s performance, one that extends beyond a single financial year.
The amount of performance-dependent compensation is limited. The maximum amount of performance-dependent compensation that the Managing Board can achieve upon fulfilment of conventional targets for the 2024 financial year is equal to around 30% to around 36% of total compensation. In addition, special bonus compensation and compensation for over-fulfilment in certain target areas may be granted. As a result, Managing Board members can earn variable compensation components equal to no more than around 45% to 50% of their total compensation.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Significant parts of the performance-dependent compensation are only payable after a certain delay, which extends into the year 2028 in the case of the 2024 financial year. The award of the delayed parts is dependent on the consideration given to the sustainable development of the corporate group.
If certain threshold values are not met, no performance-dependent compensation is granted to the Managing Board. Even if the targets are fully met in a given financial year, the award of the full variable compensation granted with respect to the focus on sustainability depends on whether the corporate group has experienced a sustainable development over three consecutive years.
Stock options or similar instruments are not part of the compensation of the Managing Board.
As of the reporting date 31 December 2019, defined benefit pensions funded by provisions – depending in part on the length of service with VIG Insurance Group – are granted to active members of the company’s Managing Board in a maximum amount equal to 40% of the assessment basis for members who remain on the Managing Board until their 65th birthday. The assessment basis is equal to the standard fixed salary. In individual cases, extra amounts may be granted to members who work beyond the maximum pension date given that no pension will be collected during the period of further work.
Managing Board members appointed for the first time on or after 1 January 2020 may be granted entitlements to defined benefit company pensions (or alternatively, defined contribution pensions). As a rule, such pensions will be awarded only after the member has been re-appointed to the Managing Board at least once and in stages, so that the maximum pension benefit equal to 40% of fixed compensation to be granted upon completing the 65th year of life can be awarded at the earliest only after the member has served on the Managing Board for 10 years. If a Managing Board member had already held other positions in the Group for at least 5 years, the pension may be awarded already upon commencement of his or her term of office on the Managing Board.
As a standard rule, pensions will be awarded (regardless of effective date) only if either the position of Managing Board member is not renewed by no fault of the member or if the Managing Board member resigns by reason of illness or age.
The provisions of the Employee and Self-Employment Provisions Act (“New Severance Pay Model”) are applicable to Managing Board contracts.
Only contracts with Managing Board members who have already worked in the Group for a very long time provide an entitlement to severance pay, which is designed in accordance with the provisions of the Salaried Employee Act in the version from before 2003 in conjunction with the relevant sector-specific provisions. Accordingly, such Managing Board members may receive severance pay equal to two to 12 months’ salary – scaled according to length of service – plus a supplement of 50% if the member retires or leaves the Managing Board after a long-term illness. No severance pay will be granted if the member leaves the Managing Board at his or her own request before the date of pension eligibility without the agreement of the company or if the member leaves the Managing Board by his or her own fault.
The Managing Board members are provided with a company car which is also for private use. For their work, the Managing Board members received EUR 6,805,000 (EUR 7,527,000) from the company in the reporting period. The Managing Board members received EUR 812,000 (EUR 995,000) from subsidiaries in the reporting period.
Former Managing Board members received EUR 2,175,000 (EUR 1,158,000).
The Managing Board was composed of six persons until 31 August 2024 and from 1 September 2024 it was composed of seven persons.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
18.3. Transactions with related persons
Transactions | 2024 | 2023 |
in EUR ‘000 | ||
Dividends for VIG Holding shares | 45 | 47 |
Interests for issued loans from VIG Holding | 16 | 16 |
Insurance premiums received | 208 | 179 |
Other transactions* | 29 | 44 |
*Other transactions comprise for example purchases and sales of goods, rendering or receiving of services, commitments like sureties or guarantees as well as transfers under licence agreements.
The related party items in the income statement do not exceed EUR 3,000,000 and primarily consist of Payments to Supervisory Board members
18.4. Transactions with related companies
Transactions with related companies
Primarily, financing transactions and charges for services are exchanged with non-consolidated affiliated and associated companies.
Transactions between the fully consolidated companies included in the consolidated financial statements are eliminated as part of the consolidation process and are, therefore, not explained in these notes.
Transactions between the fully consolidated companies included in the consolidated financial statements are eliminated as part of the consolidation process and are, therefore, not explained in these notes.
Transactions with the Wiener Städtische Versicherungsverein
The Wiener Städtische Versicherungsverein is the majority shareholder of VIG Holding. It has the legal structure of a mutual insurance association which, in accordance with the Austrian Insurance Supervision Act, has outsourced its insurance operations and is therefore not operating in the insurance business. Due to its outsourcing to the Wiener Städtische Versicherung AG, it merely has to fulfil its duties as a majority shareholder of VIG Holding, and so only services of minor importance arise with VIG Insurance Group. These are based on service agreements between VIG Insurance Group and the Wiener Städtische Versicherungsverein for intercompany charges for internal audit services, finance and accounting and provision of personnel as well as the leasing of offices based on arm’s length principles.
Related companies | 2024 | 31/12/2024 | 2023 | 31/12/2023 |
Transactions | Open items | Transactions | Open items | |
in EUR ‘000 | ||||
Revenue from rendering of services | 96,678 | 38,900 | 54,361 | 19,944 |
Parent company | 1,726 | 557 | 1,696 | 634 |
Associated companies | 67,551 | 29,153 | 4,406 | 158 |
Subsidiaries not included in the consolidated financial statements | 26,839 | 9,032 | 47,746 | 19,116 |
Other related companies | 562 | 158 | 513 | 36 |
Other related companies | 562 | 158 | 122 | 36 |
Non-profit societies | 0 | 0 | 391 | 0 |
Expenses from services received | 199,350 | -17,933 | 182,322 | -18,097 |
Parent company | 15 | -3 | 131 | -122 |
Associated companies | 63,698 | 0 | 534 | 0 |
Subsidiaries not included in the consolidated financial statements | 130,154 | -17,392 | 177,044 | -17,376 |
Other related companies | 5,483 | -538 | 4,613 | -599 |
Other related companies | 5,483 | -538 | 4,613 | -480 |
Non-profit societies | 0 | 0 | 0 | -119 |
Received dividends/profit distribution | 22,313 | 0 | 10,205 | 0 |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Related companies | 2024 | 31/12/2024 | 2023 | 31/12/2023 |
Transactions | Open items | Transactions | Open items | |
Associated companies | 18,276 | 0 | 7,688 | 0 |
Subsidiaries not included in the consolidated financial statements | 3,104 | 0 | 2,038 | 0 |
Other related companies | 933 | 0 | 479 | 0 |
Other related companies | 933 | 0 | 479 | 0 |
Paid dividends/profit distribution | 139,607 | 0 | 130,337 | 0 |
Parent company | 139,607 | 0 | 130,337 | 0 |
Loans and financial liablities and their related interests (AC, FVtPL, FVtOCI) | 44,680 | 203,051 | 23,295 | 177,422 |
Parent company | 3,331 | -2,474 | 4,552 | 542 |
Associated companies | 14,485 | 38,244 | 7,947 | 26,555 |
Subsidiaries not included in the consolidated financial statements | 1,982 | 16,595 | 3,321 | 20,419 |
Other related companies | 24,882 | 150,686 | 7,475 | 129,906 |
Other related companies | 1,448 | 26,249 | 2,239 | 29,320 |
Non-profit societies | 23,434 | 124,437 | 5,236 | 100,586 |
Amounts related to group taxation | 36,151 | 52,336 | 64,627 | 27,564 |
Parent company | 34,181 | 50,320 | 62,904 | 25,840 |
Associated companies | 1,970 | 2,016 | 1,723 | 1,724 |
19. Contingent receivables and liabilities
In their capacity as insurance companies, the Group companies are involved in a number of court proceedings as defendants or have been threatened with litigation. In addition, there are proceedings, in which the Group companies are not involved as parties, but may be affected by the outcome of such lawsuits due to agreements with other insurers concerning participation in claims. In the assessment of the Group, adequate provisions proportionate to the amount in dispute have been established for all claims in accordance with the law.
Changes in VAT
Effective 1 January 2025, the Austrian interbank exemption in relation to value added tax is to be abolished. This abolition will affect both the input and output side. On the input side, this is due to potentially higher costs resulting from the VAT burden on various services provided by banks, pension funds and other insurance entities. On the output side, this is due to additional value added tax on outgoing services provided by the Group to banks, pension funds and other insurance entities. In addition, proceedings have been brought before the ECJ regarding the qualification of the interbank exemption as prohibited state aid.
At the time of preparation of the consolidated financial statements, neither the judgment of the ECJ nor the subsequent actions of the European Commission and the Austrian authorities have been confirmed. In addition, it is not possible to produce a qualified calculation of the amount of the provision. It is currently unclear whether the service provider or the recipient of the tax-exempt services under Section 6 Paragraph 1 Line 28 of the Austrian act on value added tax (Umsatzsteuergesetz; UStG) has the relevant “advantage” in respect of the aid. It is also unclear how temporal effects and any input tax deduction will impact the amount of this “advantage”. For these reasons, no provision is formed in the consolidated financial statements.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
20. Business combinations
20.1. Changes in the scope of consolidation
Deconsolidations | Registered office | Reason for deconsolidation | Date | Reportable segment |
VIG Properties Bulgaria AD | Sofia | Liquidation | 20/08/2024 | Extended CEE |
Driving Camp Autodrom Sosnova a.s. | Prague | Immateriality | 31/12/2024 | Czech Republic |
To ensure the same scope of consolidation as financial reporting when preparing the consolidated non-financial report according to ESRS in the Group management report, the scope of consolidation has been expanded.
Expansion of the scope of consolidation1 | Registered office | Acquisition/ formation | Interest2 | First-time consolidation | Method |
Date | in % | Date | |||
AEGON TOWARZYSTWO UBEZPIECZEŃ NA ŻYCIE SPÓŁKA AKCYJNA | Warsaw | 2023 | 100.00 | 01/01/2024 | full consolidation |
AIS Servis, s.r.o. | Brno | 2007 | 98.10 | 01/01/2024 | full consolidation |
BEESAFE SPÓŁKA Z OGRANICZONA ODPOWIEDZIALNOSCIA | Warsaw | 2020 | 99.99 | 01/01/2024 | full consolidation |
Benefia Ubezpieczenia Spolka z ograniczona odpowiedzialnoscia | Warsaw | 2002 | 99.97 | 01/01/2024 | full consolidation |
CARPATHIA PENSII-SOCIETATE DE ADMINISTRARE A FONDURILOR DE PENSII PRIVATE S.A. | Floresti | 2022 | 100.00 | 01/01/2024 | full consolidation |
CLAIM EXPERT SERVICES S.R.L. | Bucharest | 2008 | 99.16 | 01/01/2024 | full consolidation |
EXPERTA Schadenregulierungs-Gesellschaft mbH | Vienna | 1993 | 99.44 | 01/01/2024 | full consolidation |
Global Assistance Ellatasszervezö Korlatold Felelössegü Tarsasag | Budapest | 2002 | 88.78 | 01/01/2024 | full consolidation |
Global Expert, s.r.o. | Pardubice | 2005 | 98.10 | 01/01/2024 | full consolidation |
Global Services Bulgaria JSC | Sofia | 2006 | 100.00 | 01/01/2024 | full consolidation |
POLISA - ŻYCIE Ubezpieczenia Sp.z.o.o. | Warsaw | 2018 | 99.98 | 01/01/2024 | full consolidation |
serviceline contact center dienstleistungs-GmbH | Vienna | 1994 | 97.75 | 01/01/2024 | full consolidation |
Slovexperta, s.r.o. | Žilina | 2002 | 98.70 | 01/01/2024 | full consolidation |
Spółdzielnia Usługowa VIG EKSPERT W WARSZAWIE | Warsaw | 2011 | 99.98 | 01/01/2024 | full consolidation |
UNIVERSAL maklérsky dom a.s. | Bratislava | 2024 | 34.46 | 01/07/2024 | at-equity |
VIENNA POWSZECHNE TOWARZYSTWO EMERYTALNE SPÓŁKA AKCYJNA VIENNA INSURANCE GROUP | Warsaw | 2023 | 100.00 | 01/01/2024 | full consolidation |
VIG Management Service SRL | Bucharest | 2010 | 99.16 | 01/01/2024 | full consolidation |
VIG Poland/Romania Holding B.V. | Amsterdam | 2023 | 100.00 | 01/01/2024 | full consolidation |
VIG POLSKA REAL ESTATE SPÓŁKA Z OGRANICZONA ODPOWIEDZIALNOSCIA | Warsaw | 2020 | 99.99 | 01/01/2024 | full consolidation |
VIG Services Bulgaria EOOD | Sofia | 2006 | 100.00 | 01/01/2024 | full consolidation |
1Insofar as significant goodwill occurred, this is recognised in Note 3. Goodwill.
2The share in equity equals the share in voting rights.
20.2. Change in assets and liabilities due to changes in the scope of consolidation
A retrospective inclusion of the newly consolidated companies as of 1 January 2024 would not result in any significant change in the balance sheet items. The retrospective inclusion of the newly consolidated companies as of 1 January 2024 would increase the Group profit before taxes and non-controlling interests by 0.01% (without taking into consideration any consolidation effects).
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Due to the changes in the scope of consolidation, the number of employees increased by 1,738.
Balance sheet | Additions | Disposals |
in EUR ‘000 | ||
Cash and cash equivalents | 10,275 | 1,591 |
Financial assets | 672,754 | 407 |
Receivables | 19,867 | 70 |
Current tax assets | 160 | 0 |
Investments in associates | 6,500 | 0 |
Insurance contracts assets issued | 742 | 0 |
Reinsurance contracts assets held | -13 | 0 |
Owner-occupied property and equipment | 7,198 | 2,647 |
Other assets | 6,918 | 3 |
Intangible assets | 90,063 | 3 |
Deferred tax asset | 11,926 | 3 |
Right-of-use assets | 244 | 0 |
Liabilities and other payables | 29,000 | 204 |
Current tax liabilities | 212 | 48 |
Financial liabilities | 60,316 | 0 |
Other liabilities | 10,314 | 66 |
Insurance contracts liabilities issued | 472,264 | 0 |
Reinsurance contracts liabilities held | 504 | 0 |
Provisions | 39,571 | 0 |
Deferred tax liabilities | 18,673 | 0 |
The figures shown in the table above reflect the actual dates of first consolidation and deconsolidation, as indicated in chapter 20.1. Changes in the scope of consolidation starting on page 209.
Contribution to result before taxes in reporting period | Additions | Disposals |
in EUR ‘000 | ||
Insurance service result | 4,191 | 0 |
Total capital investment result | -1,309 | -1 |
Investment result | 19,703 | -1 |
Income and expenses from investment property | -222 | 0 |
Insurance finance result | -20,713 | 0 |
Result from associated consolidated companies | -77 | 0 |
Finance result | -442 | -1 |
Other income and expenses | 14,587 | 63 |
Result before taxes* | 17,027 | 61 |
*The result before taxes includes depreciation of the customer base of der Carpathia Pensii (EUR 569,000), Vienna PTE (EUR 3,678,000) und der Aegon Life (EUR 377,000).
21. Affiliated companies and participations
Number of companies | Austria | Outside Austria | Total |
Number | |||
Consolidated companies | 80 | 103 | 183 |
Fully consolidated companies | 75 | 99 | 174 |
At equity-consolidated companies | 5 | 4 | 9 |
Non-consolidated companies | 42 | 79 | 121 |
Total | 122 | 182 | 304 |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
The shares for 2023 shown in the following tables have been changed compared to the figures published in the Annual Report 2023, and now the shares shown correspond to the calculated voting rights.
Fully consolidated companies | Country of domicile | Registered office | Interest 2024 | Interest 2023 |
in % | in % | |||
"Compensa Vienna Insurance Group", ADB | Lithuania | Vilnius | 100.00 | 100.00 |
"Grüner Baum" Errichtungs- und Verwaltungsges.m.b.H. | Austria | Vienna | 97.75 | 97.75 |
AB Modřice, a.s. | Czech Republic | Prague | 97.28 | 97.28 |
AIS Servis, s.r.o. | Czech Republic | Brno | 98.10 | 98.10 |
Alfa Vienna Insurance Group Biztosító Zrt. | Hungary | Budapest | 90.00 | 90.00 |
Alfa VIG Pénztárszolgáltató Zrt. | Hungary | Budapest | 90.00 | 90.00 |
Anděl Investment Praha s.r.o. | Czech Republic | Prague | 97.75 | 97.75 |
Anif-Residenz GmbH & Co KG | Austria | Vienna | 97.75 | 97.75 |
Asigurarea Românească - ASIROM Vienna Insurance Group S.A. | Romania | Bucharest | 99.79 | 99.79 |
ATBIH GmbH | Austria | Vienna | 100.00 | 100.00 |
ATRIUM TOWER SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOSCIĄ | Poland | Warsaw | 99.42 | 99.42 |
Atzlergasse 13-15 GmbH | Austria | Vienna | 97.75 | 97.75 |
Atzlergasse 13-15 GmbH & Co KG | Austria | Vienna | 97.75 | 97.75 |
BCR Asigurări de Viaţă Vienna Insurance Group S.A. | Romania | Bucharest | 93.98 | 93.98 |
BEESAFE SPÓŁKA Z OGRANICZONA ODPOWIEDZIALNOSCIA | Poland | Warsaw | 99.99 | 99.99 |
Benefia Ubezpieczenia Spolka z ograniczona odpowiedzialnoscia | Poland | Warsaw | 99.97 | 99.95 |
Blizzard Real Sp. z o.o. | Poland | Warsaw | 97.75 | 97.75 |
BMA 20 Immobilienbesitz GmbH | Austria | Vienna | 97.75 | 97.75 |
Brockmanngasse 32 Immobilienbesitz GmbH | Austria | Vienna | 97.75 | 97.75 |
BTA Baltic Insurance Company AAS | Latvia | Riga | 100.00 | 100.00 |
BULSTRAD LIFE VIENNA INSURANCE GROUP JOINT STOCK COMPANY | Bulgaria | Sofia | 100.00 | 100.00 |
Businesspark Brunn Entwicklungs GmbH | Austria | Vienna | 97.75 | 97.75 |
CAPITOL, akciová spoločnosť | Slovakia | Bratislava | 98.47 | 98.47 |
CARPATHIA PENSII-SOCIETATE DE ADMINISTRARE A FONDURILOR DE PENSII PRIVATE S.A. | Romania | Floresti | 100.00 | 100.00 |
Central Point Insurance IT-Solutions GmbH in Liquidation | Austria | Vienna | 100.00 | 100.00 |
Česká podnikatelská pojišťovna, a.s., Vienna Insurance Group | Czech Republic | Prague | 100.00 | 100.00 |
Chrášťany komerční areál a.s. | Czech Republic | Prague | 97.28 | 97.28 |
CLAIM EXPERT SERVICES S.R.L. | Romania | Bucharest | 99.16 | 99.16 |
Compania de Asigurări "DONARIS VIENNA INSURANCE GROUP" Societate pe Actiuni | Moldova | Chișinău | 99.99 | 99.99 |
Compensa Life Vienna Insurance Group SE | Estonia | Tallinn | 100.00 | 100.00 |
Compensa Towarzystwo Ubezpieczeń S.A. Vienna Insurance Group | Poland | Warsaw | 99.97 | 99.95 |
CP Solutions a.s. | Czech Republic | Prague | 97.28 | 97.28 |
DBLV Immobesitz GmbH & Co KG | Austria | Vienna | 100.00 | 100.00 |
DBR-Liegenschaften GmbH & Co KG | Germany | Stuttgart | 97.75 | 97.75 |
Deutschmeisterplatz 2 Objektverwaltung GmbH | Austria | Vienna | 97.75 | 97.75 |
Donau Brokerline Versicherungs-Service GmbH | Austria | Vienna | 100.00 | 100.00 |
DONAU Versicherung AG Vienna Insurance Group | Austria | Vienna | 100.00 | 100.00 |
DV Immoholding GmbH | Austria | Vienna | 100.00 | 100.00 |
DVIB alpha GmbH | Austria | Vienna | 100.00 | 100.00 |
DVIB GmbH | Austria | Vienna | 100.00 | 100.00 |
ELVP Beteiligungen GmbH | Austria | Vienna | 100.00 | 100.00 |
EUROPEUM Business Center s.r.o. | Slovakia | Bratislava | 99.42 | 99.42 |
EXPERTA Schadenregulierungs-Gesellschaft mbH | Austria | Vienna | 99.44 | 99.44 |
Floridsdorf am Spitz 4 Immobilienverwertungs GmbH | Austria | Vienna | 97.75 | 97.75 |
Gesundheitspark Wien-Oberlaa Gesellschaft m.b.H. | Austria | Vienna | 97.75 | 97.75 |
Global Assistance Ellatasszervezö Korlatold Felelössegü Tarsasag | Hungary | Budapest | 88.78 | 88.78 |
GLOBAL ASSISTANCE, a.s. | Czech Republic | Prague | 98.91 | 98.91 |
Global Expert, s.r.o. | Czech Republic | Pardubice | 98.10 | 98.10 |
Global Services Bulgaria JSC | Bulgaria | Sofia | 100.00 | 100.00 |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Fully consolidated companies | Country of domicile | Registered office | Interest 2024 | Interest 2023 |
in % | in % | |||
Hansenstraße 3-5 Immobilienbesitz GmbH | Austria | Vienna | 97.75 | 97.75 |
HUN BM Korlátolt Felelősségű Társaság | Hungary | Budapest | 99.42 | 99.42 |
Insurance Company Vienna osiguranje d.d., Vienna Insurance Group | Bosnia-Herzegovina | Sarajevo | 100.00 | 100.00 |
INSURANCE ONE-SHAREHOLDER JOINT-STOCK COMPANY BULSTRAD VIENNA INSURANCE GROUP EAD | Bulgaria | Sofia | 100.00 | 100.00 |
InterRisk Lebensversicherungs-AG Vienna Insurance Group | Germany | Wiesbaden | 100.00 | 100.00 |
InterRisk Towarzystwo Ubezpieczeń S.A. Vienna Insurance Group | Poland | Warsaw | 100.00 | 100.00 |
InterRisk Versicherungs-AG Vienna Insurance Group | Germany | Wiesbaden | 100.00 | 100.00 |
INTERSIG VIENNA INSURANCE GROUP Sh.A. | Albania | Tirana | 89.98 | 89.98 |
Joint Stock Company Insurance Company GPI Holding | Georgia | Tbilisi | 90.00 | 90.00 |
Joint Stock Company International Insurance Company IRAO | Georgia | Tbilisi | 100.00 | 100.00 |
Kaiserstraße 113 GmbH | Austria | Vienna | 100.00 | 100.00 |
KÁLVIN TOWER Ingatlanfejlesztési és Beruházási Korlátolt Felelősségű Társaság | Hungary | Budapest | 88.78 | 88.78 |
KAPITOL, a.s. | Czech Republic | Brno | 98.10 | 98.10 |
KKB Real Estate SIA | Latvia | Riga | 99.42 | 99.42 |
KOMUNÁLNA poisťovňa, a.s. Vienna Insurance Group | Slovakia | Bratislava | 100.00 | 100.00 |
KOOPERATIVA poisťovňa, a.s. Vienna Insurance Group | Slovakia | Bratislava | 98.47 | 98.47 |
Kooperativa pojišťovna, a.s., Vienna Insurance Group | Czech Republic | Prague | 97.28 | 97.28 |
KOOPERATIVA, d.s.s., a.s. | Slovakia | Bratislava | 98.47 | 98.47 |
LVP Holding GmbH | Austria | Vienna | 100.00 | 100.00 |
MAP-WSV Beteiligungen GmbH | Austria | Vienna | 97.75 | 97.75 |
MC EINS Investment GmbH | Austria | Vienna | 97.75 | 97.75 |
MH 54 Immobilienanlage GmbH | Austria | Vienna | 97.75 | 97.75 |
NNC REAL ESTATE SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOŚCIĄ | Poland | Warsaw | 99.42 | 99.42 |
Nordbahnhof Projekt EPW8 GmbH & Co KG | Austria | Vienna | 97.75 | 97.75 |
Nordbahnhof Projekt EPW8 Komplementär GmbH | Austria | Vienna | 97.75 | 97.75 |
Nordbahnhof Projekt Taborstraße 123 GmbH & Co KG | Austria | Vienna | 100.00 | 100.00 |
Nordbahnhof Projekt Taborstraße 123 Komplementär GmbH | Austria | Vienna | 100.00 | 100.00 |
Nußdorfer Straße 90-92 Projektentwicklung GmbH & Co KG | Austria | Vienna | 97.75 | 97.75 |
OMNIASIG VIENNA INSURANCE GROUP S.A. | Romania | Bucharest | 99.54 | 99.54 |
OÜ LiveOn Paevalille | Estonia | Tallinn | 100.00 | 100.00 |
Palais Hansen Immobilienentwicklung GmbH | Austria | Vienna | 97.75 | 97.75 |
Passat Real Sp. z o.o. | Poland | Warsaw | 97.75 | 97.75 |
Pension Assurance Company Doverie AD | Bulgaria | Sofia | 82.59 | 82.59 |
PERECA 11 SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOŚCIĄ | Poland | Warsaw | 97.75 | 97.75 |
PFG Holding GmbH | Austria | Vienna | 87.76 | 87.76 |
PFG Liegenschaftsbewirtschaftungs GmbH & Co KG | Austria | Vienna | 81.51 | 81.51 |
POLISA - ŻYCIE Ubezpieczenia Sp.z.o.o. | Poland | Warsaw | 99.98 | 99.97 |
Porzellangasse 4 Liegenschaftsverwaltung GmbH & Co KG | Austria | Vienna | 97.75 | 97.75 |
Private Joint-Stock Company " Insurance Company "USG " | Ukraine | Kyiv | 100.00 | 100.00 |
PRIVATE JOINT-STOCK COMPANY "INSURANCE COMPANY "KNIAZHA LIFE VIENNA INSURANCE GROUP" | Ukraine | Kyiv | 99.81 | 99.81 |
PRIVATE JOINT-STOCK COMPANY "UKRAINIAN INSURANCE COMPANY "KNIAZHA VIENNA INSURANCE GROUP" | Ukraine | Kyiv | 100.00 | 100.00 |
PROGRESS Beteiligungsges.m.b.H. | Austria | Vienna | 68.43 | 68.43 |
Projektbau GesmbH | Austria | Vienna | 98.38 | 98.38 |
Projektbau Holding GmbH | Austria | Vienna | 98.38 | 98.38 |
Rathstraße 8 Liegenschaftsverwertungs GmbH | Austria | Vienna | 97.75 | 97.75 |
Ray Sigorta A.Ş. | Türkiye | Istanbul | 94.96 | 94.96 |
Rößlergasse Bauteil Drei GmbH | Austria | Vienna | 100.00 | 100.00 |
Rößlergasse Bauteil Zwei GmbH | Austria | Vienna | 97.75 | 97.75 |
S - budovy, a.s. | Czech Republic | Prague | 97.28 | 97.28 |
Schulring 21 Bürohaus Errichtungs- und Vermietungs GmbH & Co KG | Austria | Vienna | 98.50 | 98.50 |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Fully consolidated companies | Country of domicile | Registered office | Interest 2024 | Interest 2023 |
in % | in % | |||
SECURIA majetkovosprávna a podielová s.r.o. | Slovakia | Bratislava | 100.00 | 100.00 |
Senioren Residenz Fultererpark Errichtungs- und Verwaltungs GmbH | Austria | Vienna | 97.75 | 97.75 |
Senioren Residenz Veldidenapark Errichtungs- und Verwaltungs GmbH | Austria | Vienna | 65.20 | 65.20 |
serviceline contact center dienstleistungs-GmbH | Austria | Vienna | 97.75 | 97.75 |
SIA "Global Assistance Baltic" | Latvia | Riga | 100.00 | 100.00 |
SIA "LiveOn Stirnu" | Latvia | Riga | 100.00 | 100.00 |
SIA "LiveOn" | Latvia | Riga | 100.00 | 100.00 |
SIA "Urban Space" | Latvia | Riga | 100.00 | 100.00 |
SIA “Alauksta 13/15” | Latvia | Riga | 100.00 | 100.00 |
SIA “Artilērijas 35” | Latvia | Riga | 100.00 | 100.00 |
SIA “Ģertrūdes 121” | Latvia | Riga | 100.00 | 100.00 |
SIA LiveOn Terbatas | Latvia | Riga | 100.00 | 100.00 |
SIGMA VIENNA INSURANCE GROUP Shoqëri Aksionare | Albania | Tirana | 89.05 | 89.05 |
SK BM s.r.o. | Slovakia | Bratislava | 99.42 | 99.42 |
Slovexperta, s.r.o. | Slovakia | Sillein | 98.70 | 98.70 |
SMARDAN 5 DEVELOPMENT S.R.L. | Romania | Bucharest | 93.98 | 93.98 |
Spółdzielnia Usługowa VIG EKSPERT W WARSZAWIE | Poland | Warsaw | 99.98 | 99.97 |
Stock Company for Insurance and Reinsurance MAKEDONIJA Skopje - Vienna Insurance Group | North Macedonia | Skopje | 95.71 | 94.50 |
SVZ GmbH | Austria | Vienna | 97.75 | 97.75 |
SVZD GmbH | Austria | Vienna | 100.00 | 100.00 |
SVZI GmbH | Austria | Vienna | 97.75 | 97.75 |
T 125 GmbH | Austria | Vienna | 100.00 | 100.00 |
TECHBASE Science Park Vienna GmbH | Austria | Vienna | 97.75 | 97.75 |
twinformatics GmbH | Austria | Vienna | 98.88 | 98.88 |
UAB LiveOn Linkmenu | Lithuania | Vilnius | 100.00 | 100.00 |
UNION Vienna Insurance Group Biztosító Zrt. | Hungary | Budapest | 88.78 | 88.78 |
Untere Donaulände 40 GmbH & Co KG | Austria | Vienna | 98.65 | 98.65 |
V.I.G. ND, a.s. | Czech Republic | Prague | 97.60 | 97.60 |
Vienibas Gatve Investments OÜ | Estonia | Tallinn | 100.00 | 100.00 |
Vienibas Gatve Properties SIA | Latvia | Riga | 100.00 | 100.00 |
Vienna Insurance Group Polska Spółka z organiczoną odpowiedzialnością | Poland | Warsaw | 99.99 | 99.99 |
VIENNA LIFE TOWARZYSTWO UBEZPIECZEŃ NA ŻYCIE SPÓŁKA AKCYJNA VIENNA INSURANCE GROUP | Poland | Warsaw | 99.98 | 99.97 |
VIENNA POWSZECHNE TOWARZYSTWO EMERYTALNE SPÓŁKA AKCYJNA VIENNA INSURANCE GROUP | Poland | Warsaw | 100.00 | 100.00 |
VİENNALİFE EMEKLİLİK VE HAYAT ANONİM ŞİRKETİ | Türkiye | Istanbul | 100.00 | 100.00 |
Vienna-Life Lebensversicherung AG Vienna Insurance Group | Liechtenstein | Bendern | 100.00 | 100.00 |
VIG Befektetési Alapkezelő Magyarország Zártkörűen Működő Részvénytársaság | Hungary | Budapest | 90.00 | 90.00 |
VIG FUND, a.s. | Czech Republic | Prague | 99.42 | 99.42 |
VIG Home, s.r.o. | Slovakia | Bratislava | 98.47 | 98.47 |
VIG HU GmbH | Austria | Vienna | 100.00 | 100.00 |
VIG IT - Digital Solutions GmbH | Austria | Vienna | 100.00 | 100.00 |
VIG Magyarország Befektetési Zártkörűen Működő Részvéntársaság | Hungary | Budapest | 90.00 | 90.00 |
VIG Management Service SRL | Romania | Bucharest | 99.16 | 99.16 |
VIG Offices, s.r.o. | Slovakia | Bratislava | 98.47 | 98.47 |
VIG Poland/Romania Holding B.V. | Netherlands | Amsterdam | 100.00 | 100.00 |
VIG POLSKA REAL ESTATE SPÓŁKA Z OGRANICZONA ODPOWIEDZIALNOSCIA | Poland | Warsaw | 99.99 | 99.97 |
VIG RE zajišťovna, a.s. | Czech Republic | Prague | 99.24 | 99.24 |
VIG REAL ESTATE DOO | Serbia | Belgrade | 97.75 | 97.75 |
VIG Services Bulgaria EOOD | Bulgaria | Sofia | 100.00 | 100.00 |
VIG Türkiye Holding B.V. | Netherlands | Amsterdam | 100.00 | 100.00 |
VIG ZP, s. r. o. | Slovakia | Bratislava | 98.73 | 98.83 |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Fully consolidated companies | Country of domicile | Registered office | Interest 2024 | Interest 2023 |
in % | in % | |||
VIG-AT Beteiligungen GmbH | Austria | Vienna | 100.00 | 100.00 |
VIG-CZ Real Estate GmbH | Austria | Vienna | 99.83 | 99.83 |
VIVECA Beteiligungen GmbH | Austria | Vienna | 100.00 | 100.00 |
WGPV Holding GmbH | Austria | Vienna | 97.75 | 97.75 |
WIBG Holding GmbH & Co KG | Austria | Vienna | 97.75 | 97.75 |
WIBG Projektentwicklungs GmbH & Co KG | Austria | Vienna | 97.75 | 97.75 |
Wiener Osiguranje Vienna Insurance Group ad | Bosnia-Herzegovina | Banja Luka | 100.00 | 100.00 |
Wiener osiguranje Vienna Insurance Group dioničko društvo za osiguranje | Croatia | Zagreb | 97.82 | 97.82 |
WIENER RE akcionarsko društvo za reosiguranje | Serbia | Belgrade | 99.24 | 99.24 |
WIENER STÄDTISCHE OSIGURANJE akcionarsko drustvo za osiguranje | Serbia | Belgrade | 100.00 | 100.00 |
WIENER STÄDTISCHE VERSICHERUNG AG Vienna Insurance Group | Austria | Vienna | 97.75 | 97.75 |
WIENER VEREIN BESTATTUNGS- UND VERSICHERUNGSSERVICE-GESELLSCHAFT M.B.H. | Austria | Vienna | 97.75 | 97.75 |
WILA GmbH | Austria | Vienna | 97.75 | 97.75 |
WINO GmbH | Austria | Vienna | 97.75 | 97.75 |
WNH Liegenschaftsbesitz GmbH | Austria | Vienna | 100.00 | 100.00 |
Wohnquartier 11b Immobilienbesitz GmbH | Austria | Vienna | 100.00 | 100.00 |
Wohnquartier 12b Immobilienbesitz GmbH | Austria | Vienna | 97.75 | 97.75 |
WSBV Beteiligungsverwaltung GmbH & Co KG | Austria | Vienna | 97.75 | 97.75 |
WSV Beta Immoholding GmbH | Austria | Vienna | 97.75 | 97.75 |
WSV Immoholding GmbH | Austria | Vienna | 97.75 | 97.75 |
WSV Triesterstraße 91 Besitz GmbH & Co KG | Austria | Vienna | 97.75 | 97.75 |
WSV Vermögensverwaltung GmbH | Austria | Vienna | 97.75 | 97.75 |
WSVA Liegenschaftbesitz GmbH | Austria | Vienna | 97.75 | 97.75 |
WSVB Liegenschaftbesitz GmbH | Austria | Vienna | 97.75 | 97.75 |
WSVC Liegenschaftbesitz GmbH | Austria | Vienna | 97.75 | 97.75 |
At equity-consolidated companies | Country of domicile | Registered office | Interest 2024 | Interest 2023 |
in % | in % | |||
Beteiligungs- und Immobilien GmbH | Austria | Linz | 24.44 | 24.44 |
Beteiligungs- und Wohnungsanlagen GmbH | Austria | Linz | 24.44 | 24.44 |
CROWN-WSF spol. s.r.o. | Czech Republic | Prague | 29.33 | 29.33 |
ERSTE d.o.o. - za upravljanje obveznim i dobrovljnim mirovinskim fondovima | Croatia | Zagreb | 25.30 | 25.30 |
Gewista-Werbegesellschaft m.b.H. | Austria | Vienna | 22.58 | 22.58 |
Österreichisches Verkehrsbüro Aktiengesellschaft | Austria | Vienna | 35.78 | 35.78 |
Towarzystwo Ubezpieczeń Wzajemnych „TUW" | Poland | Warsaw | 52.16 | 52.16 |
UNIVERSAL maklérsky dom a.s. | Slovakia | Bratislava | 34.46 | |
VBV - Betriebliche Altersvorsorge AG | Austria | Vienna | 24.83 | 24.83 |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Non-consolidated companies | Country of domicile | Registered office | Interest 2024 | Interest 2023 |
in % | in % | |||
Affiliated companies | ||||
"Assistance Company" Ukrainian Assistance Service" LLC | Ukraine | Kyiv | 100.00 | 100.00 |
"LIFETRUST" Ltd | Bulgaria | Sofia | 100.00 | 100.00 |
"VIENNA LIFE INSURANCE" - "VIENNA SIGURIM JETE" JSC | Albania | Tirana | 75.00 | |
"WIENER AUTO CENTAR" d.o.o. | Bosnia-Herzegovina | Banja Luka | 100.00 | 100.00 |
Akcionarsko družstvo za životno osiguranje Wiener Städtische Podgorica, Vienna Insurance Group | Montenegro | Podgorica | 100.00 | 100.00 |
Alfa VIG Közvetítő Zrt. | Hungary | Budapest | 90.00 | 90.00 |
Amadi GmbH | Germany | Wiesbaden | 100.00 | 100.00 |
AQUILA Hausmanagement GmbH | Austria | Vienna | 97.75 | 97.75 |
arithmetica Consulting GmbH | Austria | Vienna | 98.31 | 98.31 |
Auto - Poly spol. s r.o. | Czech Republic | Prague | 98.10 | 98.10 |
Autocentrum Lukáš s.r.o. | Czech Republic | Wallachian Meseritsch | 98.10 | 98.10 |
AUTONOVA BRNO s.r.o. | Czech Republic | Brno | 98.10 | 98.10 |
Autosig SRL | Romania | Bucharest | 99.54 | 99.54 |
B&A Insurance Consulting s.r.o. | Czech Republic | Moravská Ostrava | 100.00 | 48.45 |
Bohemika a.s. | Czech Republic | Žatec | 100.00 | 100.00 |
Bohemika HYPO s.r.o. | Czech Republic | Žatec | 100.00 | 100.00 |
BSA + OFK Germany Real Estate Immobilien 4 GmbH | Germany | Frankfurt am Main | 97.75 | 97.75 |
Bulstrad Trudova Meditzina EOOD | Bulgaria | Sofia | 100.00 | 100.00 |
Camelot Informatik und Consulting Gesellschaft m.b.H. | Austria | Vienna | 92.86 | 92.86 |
CARPLUS Versicherungsvermittlungsagentur GmbH | Austria | Vienna | 97.75 | 97.75 |
ČPP Servis, s.r.o. | Czech Republic | Prague | 100.00 | 100.00 |
CyRiSo Cyber Risk Solutions GmbH | Austria | Vienna | 60.00 | |
DBLV Immobesitz GmbH | Austria | Vienna | 100.00 | 100.00 |
DBR-Liegenschaften Verwaltungs GmbH | Germany | Stuttgart | 97.75 | 97.75 |
DELOIS s. r. o. | Slovakia | Bratislava | 98.47 | 98.47 |
Domácí péče Haná s.r.o. | Czech Republic | Prerau | 63.23 | 63.23 |
Driving Camp Autodrom Sosnova a.s. | Czech Republic | Prague | 97.28 | 97.28 |
DV Asset Management EAD | Bulgaria | Sofia | 100.00 | 100.00 |
DV CONSULTING EOOD | Bulgaria | Sofia | 100.00 | 100.00 |
DV Invest EAD | Bulgaria | Sofia | 100.00 | 100.00 |
European Insurance & Reinsurance Brokers Ltd. | United Kingdom | London | 100.00 | 100.00 |
FinServis Plus, s.r.o. | Czech Republic | Prague | 100.00 | 100.00 |
Foreign limited liability company "InterInvestUchastie" | Belarus | Minsk | 100.00 | 100.00 |
FRANCE CAR, s.r.o. | Czech Republic | Königgrätz | 98.10 | 98.10 |
GGVier Projekt-GmbH | Austria | Vienna | 53.76 | 53.76 |
GLOBAL ASSISTANCE D.O.O. BEOGRAD | Serbia | Belgrade | 100.00 | 100.00 |
Global Assistance Georgia LLC | Georgia | Tbilisi | 95.00 | 95.00 |
Global Assistance Polska Sp.z.o.o. | Poland | Warsaw | 99.99 | 99.99 |
GLOBAL ASSISTANCE SERVICES s.r.o. | Czech Republic | Prague | 100.00 | 100.00 |
GLOBAL ASSISTANCE SERVICES SRL | Romania | Bucharest | 99.23 | 99.23 |
GLOBAL ASSISTANCE SLOVAKIA s.r.o. | Slovakia | Bratislava | 99.22 | 99.22 |
Global Partner Beskydy, s.r.o. | Czech Republic | Prague | 63.23 | 63.23 |
Global Partner Praha s.r.o. | Czech Republic | Prague | 63.23 | 63.23 |
Global Partner sociální služby s.r.o. | Czech Republic | Jinočany | 63.23 | |
Global Partner Zdraví, s.r.o. | Czech Republic | Prague | 63.23 | 63.23 |
Global Partner, a.s. | Czech Republic | Prague | 63.23 | 63.23 |
Global Repair Centres, s.r.o. | Czech Republic | Pardubice | 98.10 | 98.10 |
Help24 Assistance Korlátolt Felelősségű Társaság | Hungary | Budapest | 90.00 | 90.00 |
HORIZONT Personal-, Team- und Organisationsentwicklung GmbH | Austria | Vienna | 98.29 | 98.29 |
Hotel Voltino in Liquidation | Croatia | Zagreb | 97.82 | 97.82 |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information |
Non-consolidated companies | Country of domicile | Registered office | Interest 2024 | Interest 2023 |
in % | in % | |||
HOTELY SRNÍ, a.s. | Czech Republic | Prague | 97.28 | 97.28 |
Hyundai Hradec s.r.o. | Czech Republic | Königgrätz | 98.10 | 98.10 |
insureX IT GmbH | Austria | Vienna | 98.87 | 98.87 |
InterRisk Informatik GmbH | Germany | Wiesbaden | 100.00 | 100.00 |
ITIS Sp.z.o.o. | Poland | Warsaw | 99.99 | 99.99 |
Joint Stock Company "Curatio" | Georgia | Tbilisi | 90.00 | 90.00 |
Joint Stock Insurance Company WINNER LIFE - Vienna Insurance Group | North Macedonia | Skopje | 100.00 | 100.00 |
K A P P A - P, spol. s r.o. | Czech Republic | Aussig | 98.10 | 98.10 |
Kitzbüheler Bestattung WV GmbH | Austria | Kitzbühel | 97.75 | 97.75 |
KUPALA Belarusian-Austrian Closed Joint Stock Insurance Company | Belarus | Minsk | 98.26 | 98.26 |
LD Vermögensverwaltung GmbH | Austria | Vienna | 98.65 | 98.65 |
Main Point Karlín II., a.s. | Czech Republic | Prague | 97.28 | 97.28 |
MEDICINSKI CENTER AMERIMED OOD | Bulgaria | Sofia | 51.00 | 51.00 |
Money & More Pénzügyi Tanácsadó Zártkörűen Működő Részvénytársaság | Hungary | Budapest | 88.78 | 88.78 |
Nadacia poisťovne KOOPERATIVA | Slovakia | Bratislava | 98.47 | 98.47 |
OC PROPERTIES OOD | Bulgaria | Sofia | 51.00 | 51.00 |
PFG Liegenschaftsbewirtschaftungs GmbH | Austria | Vienna | 73.42 | 73.42 |
Privat Joint-stock company "OWN SERVICE | Ukraine | Kyiv | 100.00 | 100.00 |
PROFITOWI SPÓŁKA AKCYJNA | Poland | Warsaw | 99.98 | 100.00 |
Q13a Wohnen Eybnerstraße GmbH | Austria | Vienna | 97.75 | |
Rezidence Opatov, s.r.o. | Czech Republic | Prague | 97.28 | |
Risk Consult Bulgaria EOOD | Bulgaria | Sofia | 100.00 | 100.00 |
Risk Consult Polska Sp.z.o.o. | Poland | Warsaw | 100.00 | 100.00 |
RISK CONSULT Sicherheits- und Risiko- Managementberatung Gesellschaft m.b.H. | Austria | Vienna | 100.00 | 100.00 |
Risk Expert Risk ve Hasar Danismanlik Hizmetleri Limited Sirketi | Türkiye | Istanbul | 98.49 | 98.49 |
Risk Experts s.r.o. | Slovakia | Bratislava | 100.00 | 100.00 |
Risk Logics Risikoberatung GmbH | Austria | Vienna | 100.00 | 100.00 |
S.C. Risk Consult & Engineering Romania S.R.L. | Romania | Bucharest | 100.00 | 100.00 |
S.C. SOCIETATEA TRAINING IN ASIGURARI S.R.L. | Romania | Bucharest | 99.16 | 99.16 |
S.O.S.- EXPERT d.o.o. za poslovanje nekretninama | Croatia | Zagreb | 100.00 | 100.00 |
samavu s.r.o. | Slovakia | Bratislava | 98.47 | 98.47 |
Sanatorium Astoria, a.s. | Czech Republic | Karlsbad | 97.28 | 97.28 |
Senioren Residenzen gemeinnützige Betriebsgesellschaft mbH | Austria | Vienna | 97.75 | 97.75 |
Sparkassen-Versicherungsservice Gesellschaft m.b.H. | Austria | Vienna | 97.75 | 97.75 |
SURPMO, a.s. | Czech Republic | Prague | 97.28 | 97.28 |
TGMZ Team Gesund Medizin Zentren GmbH | Austria | Vienna | 97.75 | 39.10 |
UAB "Compensa Life Distribution" | Lithuania | Vilnius | 100.00 | 100.00 |
Vienna International Underwriters GmbH | Austria | Vienna | 100.00 | 100.00 |
VIENNA LIFE PARTNERS SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOŚCIĄ | Poland | Warsaw | 99.98 | 99.97 |
VIENNA LIFE SERVICES SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOŚCIĄ | Poland | Warsaw | 99.98 | 100.00 |
viesure innovation center GmbH | Austria | Vienna | 98.87 | 98.87 |
VIG AM Real Estate, a.s. | Czech Republic | Prague | 100.00 | 100.00 |
VIG AM Services GmbH | Austria | Vienna | 100.00 | 100.00 |
VIG platform partners GmbH | Austria | Vienna | 100.00 | 100.00 |
VIG Services Shqiperi Sh.p.K. | Albania | Tirana | 89.52 | 89.52 |
VIG Services Ukraine, LLC | Ukraine | Kyiv | 100.00 | 89.52 |
VIG/C-QUADRAT TOWARZYSTWO FUNDUSZY INVESTYCYJNYCH SPÓŁKA AKCYJNA | Poland | Warsaw | 50.99 | 50.99 |
Wiener Städtische Donau Leasing GmbH | Austria | Vienna | 97.75 | 97.75 |
WSBV Beteiligungsverwaltung GmbH | Austria | Vienna | 97.75 | 97.75 |
zuuri s.r.o. | Slovakia | Bratislava | 98.47 | 98.47 |
Corporate Participations | ||||
AREALIS Liegenschaftsmanagement GmbH | Austria | Vienna | 48.87 | 48.87 |
Non-consolidated companies | Country of domicile | Registered office | Interest 2024 | Interest 2023 |
in % | in % | |||
EBV-Leasing Gesellschaft m.b.H. | Austria | Vienna | 47.90 | 47.90 |
EKG UW Nord GmbH | Austria | Klagenfurt | 24.46 | 24.46 |
Elsö Maganegeszsegügyi Halozat Zrt. | Hungary | Budapest | 44.39 | 43.50 |
Finanzpartner GmbH | Austria | Vienna | 48.87 | 48.87 |
GELUP GmbH | Austria | Vienna | 32.58 | 32.58 |
Glamas Beteiligungsverwaltungs GmbH & Co "Beta" KG | Austria | Vienna | 42.76 | 42.76 |
GLOBAL ASSISTANCE Croatia društvo s ograničenom odgovornošću za usluge | Croatia | Zagreb | 49.46 | 49.46 |
KWC Campus Errichtungsgesellschaft m.b.H. | Austria | Klagenfurt | 48.87 | 48.87 |
Lead Equities II.Private Equity Mittelstandsfinanzierungs AG | Austria | Vienna | 21.59 | 21.59 |
LiSciV Muthgasse GmbH & Co KG | Austria | Vienna | 42.76 | 42.76 |
Renaissance Hotel Realbesitz GmbH | Austria | Vienna | 40.00 | 40.00 |
Soleta Beteiligungsverwaltungs GmbH | Austria | Vienna | 42.76 | 42.76 |
TAUROS Capital Investment GmbH & Co KG | Austria | Vienna | 19.55 | 19.55 |
TAUROS Capital Investment Zwei GmbH & Co KG | Austria | Vienna | 23.27 | 23.27 |
TAUROS Capital Management GmbH | Austria | Vienna | 25.30 | 25.30 |
TeleDoc Holding GmbH | Austria | Vienna | 25.01 | 25.01 |
TOGETHER CCA GmbH | Austria | Vienna | 24.71 | 24.71 |
VENPACE GmbH & Co. KG | Germany | Cologne | 23.53 | 23.53 |
Versicherungsbüro Dr. Ignaz Fiala Gesellschaft m.b.H. | Austria | Vienna | 47.90 | 47.90 |
VÖB Direkt Versicherungsagentur GmbH | Austria | Graz | 48.87 | 48.87 |
Merged companies | Country of domicile | Registered office | Merger date | Absorbing company |
AEGON TOWARZYSTWO UBEZPIECZEŃ NA ŻYCIE SPÓŁKA AKCYJNA | Poland | Warsaw | 01/07/2024 | VIENNA LIFE TOWARZYSTWO UBEZPIECZEŃ NA ŻYCIE SPÓŁKA AKCYJNA VIENNA INSURANCE GROUP |
Joint Stock Insurance Company WINNER-Vienna Insurance Group | North Macedonia | Skopje | 01/07/2024 | Stock Company for Insurance and Reinsurance MAKEDONIJA Skopje - Vienna Insurance Group |
Vienna Life Towarzystwo Ubezpieczeń na Życie S.A. Vienna Insurance Group | Poland | Warsaw | 01/07/2024 | VIENNA LIFE TOWARZYSTWO UBEZPIECZEŃ NA ŻYCIE SPÓŁKA AKCYJNA VIENNA INSURANCE GROUP (previously Compensa Life) |
WIENER TOWARZYSTWO UBEZPIECZEŃ SPÓŁKA AKCYJNA VIENNA INSURANCE GROUP | Poland | Warsaw | 01/10/2024 | Compensa Towarzystwo Ubezpieczeń S.A. Vienna Insurance Group |
22. Auditing fees and auditing services
The auditor of these consolidated financial statements is KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft (KPMG Austria GmbH). The following expenses were recognised for services provided by KPMG Austria GmbH and the Austrian member companies (KPMG Austria wide) in the financial year:
Composition | 2024 | 2023 | ||
KPMG Austria wide | KPMG Austria GmbH | Total | Total | |
in EUR ‘000 | ||||
Audit of consolidated financial statements | 0 | 1,053 | 1,053 | 1,623 |
Audit of parent company financial statements | 0 | 95 | 95 | 75 |
Other audit services | 0 | 546 | 546 | 214 |
Tax advisory fees | 19 | 0 | 19 | 14 |
Fees for audit-related services | 500 | 0 | 500 | 179 |
Total | 519 | 1,694 | 2,213 | 2,105 |
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23. Material accounting estimates and siginificant judgements
23.1. (Re-)Insurance contracts
The assumptions and accounting estimates are based on all parameters available when the consolidated financial statements were prepared. Future developments, such as market developments, which are outside of the influence of VIG Insurance Group are only taken into account in the assumptions once they occur.
The information is broken down according to measurement models in accordance with IFRS 17. The measurement models are the general measurement model (GMM), the variable fee approach (VFA) and the premium allocation approach (PAA). This closely follows the structure of the IFRS 17 portfolios, which is as follows:
• Unit-linked and participating life insurance contracts as well as Austrian health insurance by type of life insurance are measured by the VFA method,
• Property and casualty insurance contracts are primarily measured with PAA and
• Long-term property and casualty insurance contracts in primary insurance and reinsurance that do not meet the criteria for PAA measurement and life insurance contracts that do not meet the criteria for the use of VFA are measured using the GMM model.
The methods used to measure insurance contracts in the life and health business
The present value of future cash flows is determined in different ways depending on the decision of the local companies. The Group uses two methods: stochastic modelling and deterministic projection. In contrast to deterministic projection techniques, stochastic modelling applies techniques to generate a large number of possible economic scenarios for market variables such as interest rates and equity returns. This allows future cash flows to be forecast more effectively.
Assumptions used to estimate future cash flows
Mortality, morbidity and longevity rates
Assumptions are based on standard industry and national tables, according to the type of contract written and the insured person’s place of residence. They reflect recent historical experience and are adjusted when appropriate to reflect the local companies’ experiences. An appropriate, but not excessive, allowance is made for expected future improvements. The assumptions differ, for example, depending on the insurance class and type of contract.
Higher mortality and morbidity rates result in an increase in the expected claim payments, which will reduce the future CSM.
Expenses
Assumptions regarding administrative expenses reflect the projected costs of managing in-force policies and the associated overhead expenses. The current expenses are taken as an appropriate expense base for future expenses, adjusted for expected expense inflation, if appropriate.
An increase in expected expenses reduces the expected gains in the future.
The cash flows within the contract boundary include an allocation of fixed and variable overheads directly attributable to fulfilling insurance contracts. The allocation to groups of insurance contracts is carried out using systematic and rational methods, which are applied uniformly to all costs with similar characteristics.
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Lapse and surrender rates
Lapses relate to the termination of policies due to non-payment of premiums whereas surrenders relate to the voluntary termination of policies by policyholders. Respective assumptions are based on statistical analyses of experiences and vary according to product type, insurance duration and sales trends.
An increase in cancellation rates would tend to reduce the future CSM.
Sensitivities can be found under Note 1.8. Insurance and market risks – sensitivity analysis starting on page 167.
The methods used to measure insurance contracts in the non-life insurance business
The accounting estimates for non-life business are covered in Note Liability for Incurred Claims (LIC) starting on page 222.
Discount rates
All insurance contract liabilities (except for the liability for remaining coverage measured under PAA) are calculated by discounting expected future cash flows at risk-free interest rates raised by an illiquidity adjustment.
Risk-free interest rates are determined using the bottom-up approach on the basis of swap rates in the currency of the insurance contract liabilities. If swap rates are not sufficiently liquid and transparent, government bond interest rates are used instead.
The illiquidity adjustment to the relevant risk-free interest rates is based on the risk-corrected spread between the interest rate that could be earned from a reference portfolio and the risk-free basic interest rates. The illiquidity adjustment or the reference portfolio is calculated per country, taking into account all relevant VIG investments.
Interest rates applied for discounting of future cash flows are presented in Note 1.2. Assumptions used starting on page 140.
Risk Adjustment for nonfinancial risks
The risk adjustment for nonfinancial risks represents the compensation that would be required for bearing the uncertainty about the amount and timing of the cash flows of groups of insurance contracts. The risks covered by the risk adjustment for nonfinancial risks are underwriting risk and other risks such as lapse risk and expense risk. The risk adjustment therefore reflects an amount that an insurance company would pay to remove the uncertainty about whether future cash flows will exceed the best estimate.
The risk adjustment was carried out using the cost of capital method (CoC method). This involves estimating the probability distribution of the fulfilment cash flows and determining the additional capital required at each future date in the cash flow forecasts in order to comply with the economic capital requirements.
A cost of capital rate is applied to the additional capital requirement in future reporting periods. The cost of capital reflects the return required by a company to compensate for exposure to the nonfinancial risk. The calculated risk adjustment at future terms is discounted to the reporting date at the discount rate, to be held as a part of the total liabilities.
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Amortisation of the Contractual Service Margin (CSM)
The CSM is a component of the asset or liability for the group of insurance contracts that represents the unearned gains a company is expected to recognise as it provides services in the future. In each period, an amount of the CSM for a group of insurance contracts is recognised as insurance service revenue, which therefore reflects the insurance contract services provided during that period. The CSM is determined by:
• identifying the coverage units in the group;
• allocating the CSM at the end of the period to each coverage unit provided or expected to be provided in the future;
• recognising in profit and loss the share allocated to coverage units provided in the period.
The CSM is allocated to provided and expected coverage in the future before amounts are recognised in profit or loss.
In order to determine the number of coverage units in a group of insurance contracts, the number of benefits provided to the policyholder which combines insurance coverage services and investment services has to be measured. When weighting different services, the consolidated group generally considers the split of the present value of premium in risk and savings parts to weight the release components. However, in some cases there might also be the need to weight different insurance coverages when determining the number of coverage units. The present value of premiums of each insurance coverage is used for this. Alternative approaches and simplifications may be used, provided that the result adequately reflects the services provided.
The quantity of benefits and coverage units for the main product lines is as follows:
For portfolios for the non-life and health insurance and non-life reinsurance, the insurance services provided are approximated with the projected earned premium. The majority of these services are the insurance coverage. The coverage unit is therefore the projected earned premium.
For groups of life annuities contracts, the quantity of benefits for both insurance coverage and investment services is the mathematical reserve. This means that the coverage unit also corresponds to the mathematical reserve. For term life insurance without surrender value and riders, which only provide insurance coverage, the quantity of benefits is the contractually agreed sum insured over the period of the contract. Therefore, the coverage unit for these products is the contractually agreed sum insured. For unit- and index-linked contracts, the quantity of investment services is determined by the fund value, which is used as the coverage unit.
For endowment without riders and term insurance with surrender value, a measure for insurance coverage is the sum at risk and a measure for investment service is the mathematical reserve. The sum insured acts as a coverage unit, as it represents both the insurance component (sum at risk) and the investment component (mathematical reserve or fund value). In this case no further weighting is necessary.
The coverage units in a group of insurance contracts are determined on the basis of the quantity of benefits provided by the contracts. In the case of reinsurance held, this is the insurer’s cover from the reinsurance contracts held and not the cover from the underlying insurance contracts with the policyholders.
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The total coverage units of each group of (re‑)insurance contracts is reassessed at the end of each reporting period. This adjusts for the reduction of remaining coverage for claims paid, expected lapses and contract cancellations in the period.
Liability for Remaining Coverage (LRC)
Numerous discretionary figures are included in the calculation of the liability for remaining coverage. These discretionary figures include, among other things, the discount rates, the cash flows assumed for the calculation, insurance acquisition costs and the fulfilment cash flows for onerous contracts.
Insurance acquisition costs
Insurance acquisition costs are allocated to related groups of insurance contracts recognised in the consolidated balance sheet (including those groups that will include insurance contracts expected to arise from renewals). An asset for insurance acquisition costs is recognised for insurance acquisition costs incurred before the related group of insurance contracts has been recognised.
Groups of onerous insurance contracts
For groups of onerous contracts, the liability for remaining coverage is determined by the fulfilment cash flows. Any loss-recovery component is determined with reference to the loss component recognised on underlying contracts and the recovery expected on such claims from reinsurance contracts held.
Time value of money
For all product lines, the book value of the liability for remaining coverage is discounted to reflect the time value of money and the effect of financial risk. Excluded are those measured under PAA and that are not onerous. For the interest rates applied, discount rates that reflect the characteristics of the cash flows of the group of insurance contracts at initial recognition are used.
The applied discount rates can be seen in Note 1.2. Assumptions used starting on page 140.
Discretionary cash flows for indirect profit participating contracts
To determine how to identify changes in discretionary cash flows for insurance contracts with discretionary features which do not meet the definition of direct profit participation, local entities specify the basis on which they expect to determine their commitment under the contract. However, the effects of market variables (e.g. investment returns) on the cash flows should still flow through P&L or be optionally recognised in OCI and should not lead to an adjustment of the CSM.
Assets for insurance acquisition costs
VIG applies judgements in determining the inputs used in the methodology to systematically and rationally allocate insurance acquisition costs to groups of insurance contracts to determine:
• whether insurance contracts are expected to arise as a result of renewals of existing insurance contracts, and
• if applicable, with respect to the amount to be allocated to groups, including future renewals,
• as well as with respect to the volume of expected renewals from new contracts issued in the period.
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At the end of each reporting period, the assumptions made are adjusted to allocate insurance acquisition costs to the contract groups. Where necessary, the amounts of assets are revised for insurance acquisition costs accordingly.
Liability for Incurred Claims (LIC)
For the non-life business, the LIC is a major component of the insurance contracts’ recognition.
Here, the ultimate cost of outstanding claims is estimated by using a range of standard actuarial claims projection techniques. The main assumption underlying these techniques is the use of past claims developments as experience in order to project future claims development and hence ultimate claims costs. These methods extrapolate the development of paid and incurred losses, average costs per claim (including claims handling costs), and claim numbers based on the observed development of earlier years and expected loss ratios. Historical claims development is primarily analysed by claims years but can also be broken down further by geographical area, significant business lines and claim types. Major losses are usually addressed separately, either through provisions based on estimates by the loss adjuster or through a separate projection that reflects future developments.
Additional qualitative judgements are made to assess whether previous trends will continue to apply in the future. All uncertainties involved are taken into account in order to obtain an estimate of the ultimate claims cost that reflects the probability-weighted expected value outcome of all possible results.
Such trends could be, for example, one-off occurrences, changes in external or market factors such as public attitudes to claiming, economic conditions, levels of claims inflation, judicial decisions and legislation, as well as internal factors such as portfolio mix, policy features and claims handling procedures.
The enforceability and collectability of salvage recoveries and subrogation reimbursements are considered as an allowance in the measurement of ultimate claims costs.
Other key circumstances affecting the reliability of assumptions include variations in interest rates, delays in settlement and changes in foreign exchange rates.
23.2. Impairment losses on financial assets
The measurement of impairment losses acc. to IFRS 9 across relevant financial assets requires discretionary decisions, in particular for the estimation of the amount and timing of future cash flows when determining impairment losses and the assessment of a significant increase in credit risk. These estimates are driven by the outcome of modelled ECL scenarios and the relevant inputs used as described in chapter Impairment of financial assets starting on page 246.
23.3. Financial instruments recognised at fair value (Level 3)
The fair value of financial instruments not traded on an active market is determined by applying appropriate valuation techniques. The assumptions used here are based on market data available on the reporting date, if available. VIG Insurance Group uses present value methods whilst taking into consideration suitable interest rate models to determine the fair value of numerous financial assets which are not actively traded on markets. Note 16. Calculation of fair value starting on page 198
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and Note 24.9 Calculation of fair value starting on page 252 contain further information about the valuation process. The impairment of financial assets is explained in 23.2. Impairment losses on financial assets.
23.4. Impairment of goodwill
In accordance with the method explained in chapter 24.5. Goodwill starting on page 250, at least once a year it is determined whether an impairment of goodwill exists. Estimates in this area concern above all the calculations for the underlying planned results of the respective CGUs and specific parameters, especially growth and discount rates. Any sensitivities associated with these parameters are presented in Note 3. Goodwill starting on page 180.
23.5. Value of deferred tax assets
Income taxes must be taken into account for each tax jurisdiction in which VIG operates. The expected current income tax for each taxable entity must be calculated and the temporary differences due to differences between the tax and IFRS treatment of certain balance sheet items must be assessed. If temporary differences exist, as a rule, they lead to the recognition of deferred tax assets and liabilities in the balance sheet based on the tax rate for each country. The amount of the expected current and deferred tax liability or asset reflects the best estimate taking into account tax uncertainties and, consequently, the application of IFRIC 23.
The Managing Board must make assessments and, taking into account tax uncertainties, judgements when calculating current and deferred taxes. Deferred tax assets are only recognised to the extent that it is probable they can be utilised. The utilisation of deferred tax assets depends on the likelihood of achieving sufficient taxable income of a particular tax type for a particular tax jurisdiction, while taking into account any statutory restrictions, for example concerning maximum loss carry forward periods.
The following factors are considered when assessing whether it is probable to utilise deferred tax assets in the future:
• past results of operation,
• operating plans,
• loss carryforward periods,
• tax planning strategies and
• existing deferred tax liabilities.
A tax group consisting of Austrian parts of foreign companies as well as Hungary exists. Reference is made in this regard to page 259.
If actual events diverge from the estimates or the estimates must be adjusted in future periods, this could have an adverse effect on net assets, financial position and results of operations. If the assessment of the recoverability of deferred tax assets changes, the book value must be impaired and the change recognised in the income statement or other comprehensive income, depending on the treatment used when the deferred tax asset was originally recognised, or impaired deferred tax assets must be recognised through profit or loss or other comprehensive income. Further information can be found in chapter Accounting policies under 24.13. Taxes starting on page 259 and in Note 11. Taxes on page 191.
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23.6. Method of consolidation
Whether a subsidiary is included in the Group’s scope of consolidation is determined by thresholds. The specification of these thresholds is subject to judgements by the Managing Board.
Companies that are not considered to be material to the Group are not included in the scope of consolidation, even if the criteria of IAS 28 – Investments in Associates and Joint Ventures and/or IFRS 10 – Consolidated Financial Statements are fundamentally met. The assessment of whether a company is material to the Group is based on qualitative and quantitative criteria. It is at the Managing Board’s judgement to determine a percentage that can be used to calculate a threshold value for each key figure (e.g. shareholders’ equity) for quantitative assessment.
Qualitative criteria take into account whether the business activity of a company has a significant impact on intragroup transactions. Companies with the following business areas are always included in the scope of consolidation on the basis of this qualitative assumption by the Managing Board:
• real estate holding companies, but only from the date on which the company was operational,
• holding companies with shares in the operational insurance business or in real estate holding companies, as well as
• corporate IT service companies, provided they are active across the Group.
Provided that a company has been classed as material, the processes laid down in IAS 28 – Investments in Associates and Joint Ventures and IFRS 10 – Consolidated Financial Statements are used to determine the form in which this company is consolidated in the consolidated financial statements.
Subsidiaries that were of material importance at the time of first consolidation continue to be included in the scope of consolidation in subsequent periods. Circumstances could arise, however, that lead to the Managing Board using its judgement to perform a reassessment of the entire scope of consolidation. As a result, companies that were consolidated in the past but are not considered to be material based on the quantitative criteria at the time of the reassessment could be removed from the scope of consolidation. Companies that, due to their business activities, mainly generate intragroup revenues but do not generate any significant profits or losses are only included in the scope of consolidation if they operate across countries or are relevant for sustainability reporting.
23.7. Materiality of Notes and the associated accounting policies
According to IAS 1.31, only material information should be disclosed in financial statements, even when a standard prescribes certain requirements or minimum requirements. The goal of the IASB in this paragraph in combination with an officially published Practice Statement on this subject was to create a clear and comprehensible basis for financial reporting utilising the most material information. The decision as to whether any given disclosure constitutes material or immaterial information is open to judgement. The Managing Board of VIG Holding has introduced a threshold value for assessing the materiality of disclosures and the related accounting policies. If the amount involved is less than the threshold value, the information is only published in the Annual Report if it has been deemed to be material for primary users of the financial statements on the basis of qualitative criteria during the release process.
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23.8. Judgment of material accounting aspects according to IAS 8
The complexity of IFRS 17 in particular can lead to accounting issues that are subsequently identified. Such cases are subject to a defined reporting process and are analysed in detail in order to determine the effects of a correction in accordance with IAS 8 for primary users of the financial statements.
There is significant scope for judgment, especially when determining the limits calculated for this. Nevertheless, the aim of a clear and understandable presentation without significantly affecting the reporting contributes to the assessment of materiality. If, in accordance with the defined thresholds, an accounting discrepancy does not lead to a significant influence on the primary users of the financial statements according to VIG's assessment, this will be presented in the current period.
24. Accounting policies
24.1. Currency translation
Transactions in foreign currencies
Individual financial statements of each subsidiary are prepared in the currency in which cash is generated in the primary economic environment (functional currency). In the Group, the functional currency is essentially the local currency. Transactions which have been concluded in a currency that is not the functional currency will be recorded using the mean exchange rate on the day of the respective transaction. Monetary assets and liabilities in foreign currency existing on the balance sheet date are translated to euros using the mean exchange rate on the reporting date. Any resulting exchange differences are recognised in profit or loss.
Conversion of individual financial statements denominated in foreign currencies
Assets, liabilities and income and expenses are presented in euros, the reporting currency of VIG Holding. All assets and liabilities reported in the individual financial statements are translated to euros using the mean exchange rate on the reporting date. The income statement items are converted using the average mean exchange rate at the end of the period. In the consolidated cash flow statement, the mean exchange rate on the reporting date is used for changes in balance sheet items, and the average mean exchange rate at the end of the period is used for changes in income statement items. Currency translation differences, including those resulting from using the equity method of accounting, are recognised directly in equity.
In accordance with the hyperinflation accounting rules, the mean exchange rate on the balance sheet date was applied for all items of the financial statements of the Turkish insurance companies.
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Currency | End-of-period exchange rate | Average exchange rate | |||
31/12/2024 | 31/12/2023 | 01/01/‑31/12/2024 | 01/01/‑31/12/2023 | ||
1 EUR ≙ | |||||
Albanian lek | ALL | 98.1500 | 103.8800 | 100.7014 | 108.7483 |
Bosnian convertible mark | BAM | 1.9558 | 1.9558 | 1.9558 | 1.9558 |
Bulgarian lev | BGN | 1.9558 | 1.9558 | 1.9558 | 1.9558 |
Georgian lari | GEL | 2.9306 | 2.9960 | 2.9444 | 2.8432 |
Macedonian denar | MKD | 61.4950 | 61.4950 | 61.5344 | 61.5572 |
Moldovan leu | MDL | 19.3106 | 19.3574 | 19.2533 | 19.6431 |
New Turkish Lira | TRY | 36.7372 | 32.6531 | 35.5734 | 25.7597 |
Polish zloty | PLN | 4.2750 | 4.3395 | 4.3058 | 4.5420 |
Romanian leu | RON | 4.9743 | 4.9756 | 4.9746 | 4.9467 |
Swiss franc | CHF | 0.9412 | 0.9260 | 0.9526 | 0.9718 |
Serbian dinar | RSD | 117.0149 | 117.1737 | 117.0861 | 117.2530 |
Czech koruna | CZK | 25.1850 | 24.7240 | 25.1198 | 24.0043 |
Ukraine hryvnia | UAH | 43.9266 | 42.2079 | 43.4588 | 39.5619 |
Hungarian forint | HUF | 411.3500 | 382.8000 | 395.3039 | 381.8527 |
US Dollar | USD | 1.0389 | 1.1050 | 1.0824 | 1.0813 |
24.2. Business combinations
Establishing the scope of consolidation
The materiality or immateriality of subsidiaries, associated companies and joint arrangements for the consolidated financial statements is checked using a variety of thresholds defined at VIG Holding level. Qualitative assessment criteria are also applied. For this purpose, for example, the absolute result before taxes or the total assets are checked. If a company does not fulfil any size criteria, a second step is performed to check whether the companies that are not included are material when taken as a whole. If this is not the case, these companies will not be included in the scope of consolidation. Companies that have no material effect on the Group’s net assets, financial position and results of operations when considered individually and in the aggregate are essentially measured at fair value.
Fully controlled investment funds (“special funds”) were fully consolidated in accordance with the requirements of IFRS 10. These consolidated special funds are not independent units under company law and are therefore not considered to be structured entities as defined in IFRS 12. This concerns investment funds which are not designed for the public capital markets. Due to a lack of controlling influence, public investment funds, despite holding the majority of the voting rights, are not consolidated. Company law and regulatory requirements can restrict the ability of subsidiaries to transfer financial means (in the form of dividends) to the parent company.
Accounting for business combinations
Business combinations are recognised using the purchase method. Goodwill is recognised as the value of the consideration transferred in a business combination and all non-controlling interests in the acquired company less the identifiable assets acquired and liabilities assumed. In any business combination, present non-controlling interests that entitle holders to a proportionate share of the entity’s net assets in the event of a liquidation can be measured either at fair value or as a share of the identifiable net assets. Unless another IFRS provides a different measurement method, all other components of non-controlling interests are measured at the corresponding share of the identifiable net assets. If the consideration is less than
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the assets and liabilities of the acquired subsidiary measured at fair value, the difference is checked again and recognised directly in the income statement. As a rule, the fair values calculated in accordance with IFRS 13 of all assets (incl. goodwill and other intangible assets) and liabilities are allocated to the country to which the purchased company is assigned.
Deferred tax assets acquired during a business combination and arising under IAS 12.66 et seqq. on the acquisition date are tested for impairment in accordance with IAS 12.37.
The Group considers the reported goodwill to reflect the value of the ability to make use of the insurance-specific expertise of the employees of the acquired companies. When a market is entered, it represents the ability to offer insurance products in a country and take advantage of the opportunities that exist there. In countries where the Group is already represented by one or more companies, the goodwill also represents the possibility of making use of potential synergies.
When real estate holding companies are acquired, they are checked to see whether they include business operations. If they do not, the purchase method is not used. In such cases, the acquisition costs, including transaction costs, are distributed among the acquired assets and assumed liabilities based on fair value. No deferred taxes are recognised in such cases (initial recognition exemption). Goodwill cannot arise in this context.
All company acquisitions were carried out using cash and cash equivalents. A list of fully and at equity consolidated companies can be found starting on page 210 in Note 21. Affiliated companies and participations.
24.3. (Re-)Insurance contracts
Classification
Insurance contracts are defined as contracts under which one party (the insurer) accepts significant insurance risk from another party (the policyholder), by agreeing to provide compensation to the policyholder if a specified uncertain future event (the insured event) negatively affects the policyholder. Financial risk is the risk of a possible future change in e.g. specific interest rates, securities prices, price indices, interest rate indices, credit ratings and credit indices. It must be noted that in the case of a non-financial variable, the variable is not specific to one counterparty. In many cases, particularly in the life insurance area, insurance policies as defined in IFRS 17 also transfer financial risk.
Some contracts have the legal form of insurance contracts but do not transfer significant insurance risk. Such financial insurance policies exist only to a minor extent in the personal insurance area. These contracts are classified as financial liabilities and are defined as “investment contracts”. Investment contracts are generally out of the IFRS 17 scope. However, if investment contracts have discretionary participation features, these contracts are nevertheless within the IFRS 17 scope.
The majority of the VIG life insurance contracts are eligible to be measured using the VFA (Variable Fee Approach). These are contracts for which, at inception:
• the contract conditions specify that the policyholder participates in a share of a clearly identified pool of underlying items;
• it is expected to pay to the policyholder an amount equal to a substantial share of the fair value returns on the underlying items; and
• it is expected that a substantial proportion of any change in the amounts to be paid to the policyholder will vary with the change in fair value of the underlying items.
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This primarily concerns VIG’s Austrian, Czech and German insurance contracts in the life insurance balance sheet unit. In the life business of virtually all other countries the policyholder participation is at the sole discretion of the company concerned. These products are measured with GMM (General Measurement Model).
In the primary P&C insurance, the PAA (Premium Allocation Approach) is applied to measure short-duration insurance contracts and is the preferred measurement approach. This is also the case for long-duration P&C insurance contracts if the measurement under PAA is not materially different to the measurement under GMM. Long-duration insurance contracts in primary insurance without direct participation features are generally measured with GMM. Neither held nor issued reinsurance contracts can be classified as direct profit participation contracts, which is why these cannot be assessed using the VFA. Reinsurance contracts are therefore assessed either with the PAA or the GMM.
Accounting treatment
Separating components
Before VIG accounts for an insurance or reinsurance contract based on the guidance in IFRS 17, it analyses whether the contract contains components that should be separated. Meaning, those components must be accounted for under another IFRS rather than IFRS 17 (distinct non-insurance components). After separating any distinct non-insurance components, IFRS 17 is applied to all remaining components of the insurance contract.
Investment components are defined as the amounts that an insurance contract requires an insurer to repay to a policyholder in all circumstances, regardless of whether an insured event has occurred or not. Investment components (e.g. surrender options in life insurance contracts) which are highly interrelated with the insurance contract, of which they form a part, are considered non-distinct and are not separately accounted for. However, receipts and payments of the investment components are excluded from insurance service revenue and insurance service expenses. Some insurance contracts require the repayment of a contractually agreed amount but not in all circumstances and not as a result of an insured event. These amounts represent premium refunds and reduce insurance service revenue and insurance service expenses. The Group presents premium refunds as deductions within the premiums received.
Some reinsurance contracts contain certain commission arrangements. According to their nature, commissions may be:
• deducted from premiums received,
• included within claims or
• treated as an investment component.
Level of aggregation
After identifying which insurance contracts are within the scope of IFRS 17, taking into account the effects of the combination of insurance contracts, separation of distinct non-insurance components, and the separation of multiple insurance contracts contained within a single legal policy document, IFRS 17 necessitates to define the level of aggregation for applying its requirements.
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The level of aggregation is determined firstly by dividing the business written into portfolios. Portfolios comprise groups of contracts with similar risks that are managed together. Based on their expected profitability at inception, portfolios are afterwards split into three categories:
• onerous contracts,
• contracts with no significant risk of becoming onerous; and
• the remaining contracts.
For GMM and PAA, IFRS 17 also notes that no group for level of aggregation purposes may contain contracts issued more than one year apart. For its VFA business, VIG applies the optional exemption from forming groups based on underwriting year (annual cohorts) that is applicable in the European Union. This option provides an exemption from the formation of annual cohorts for intergenerationally mutualised and cash flow matched insurance contracts. This is to allow for an appropriate cost-benefit ratio at the time the contractual service margin is recognised. This exemption primarily concerns long-term life insurance with profit participation and long-term health insurance.
Once the groups of insurance contracts are determined, they become the unit of account to which the consolidated insurance companies apply requirements of IFRS 17. This means that IFRS 17 metrics such as fulfilment cash flows, the contractual service margin (“CSM”) and loss components should be available at this granularity. VIG has defined portfolios of insurance and reinsurance contracts issued based on the Solvency II structure for life, health and P&C insurances due to the fact that the products are subject to similar risks and managed together.
In determining groups of contracts, VIG has decided to group together those contracts that would fall into different groups because law or regulation specifically constrains its practical ability to set a different price or level of benefits for policyholders with different characteristics.
The groups of contracts for which the fair value approach has been adopted on transition include contracts issued more than one year apart. Please refer to the transition approach applied by VIG in chapter IFRS 17 transition date (1 January 2022): Fair value approach (FVA) starting on page 232.
In most cases, the profitability of groups of contracts is assessed by actuarial cash flow models and profitability metrics that take into consideration existing and new business. For insurance contracts measured applying PAA, it is assumed that no contracts in the portfolio are onerous at initial recognition unless facts and circumstances indicate otherwise. For contracts that are not onerous, it has to be assessed, at initial recognition, that there is no significant possibility of becoming onerous subsequently by assessing the likelihood of changes in applicable facts and circumstances. Please refer to chapter Onerous contracts starting on page 230 for further information on onerous contracts.
Portfolios of reinsurance contracts held are divided applying the same principles set out above, except that the references to onerous contracts refer to contracts on which there is a net gain on initial recognition. It is possible that a group of reinsurance contracts held comprises a single contract.
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For the consolidated insurance companies, the direct insurance and optional reinsurance were grouped into the following IFRS 17 portfolios for P&C, life and health insurance:
• Life insurance:
– With profit participation
– Unit- and index-linked
– Other
– Issued and held Treaty reinsurance
– Facultative issued reinsurance
– Facultative held reinsurance
• Health insurance:
– Long-term health insurance (similar to life)
– Issued and held Treaty reinsurance
• Property and casualty insurance:
– Medical expense insurance
– Income protection insurance
– Workers’ compensation insurance
– Motor vehicle liability insurance
– Other motor insurance
– Marine, aviation and transport insurance
– Fire and other damage to property insurance
– General liability insurance
– Credit and suretyship insurance
– Legal expenses insurance
– Assistance
– Miscellaneous financial losses
– Issued and held Treaty reinsurance
– Facultative issued reinsurance
– Facultative held reinsurance
Onerous contracts
Some contracts are issued before the coverage period starts and the initial premium becomes due. Therefore, the consolidated insurance companies determine before the beginning of the coverage period or at the time when the first payment from the policyholder in the group is due, depending on which occurs earlier, whether issued contracts constitute a group of onerous contracts. To identify whether a group of contracts is onerous, facts and circumstances are considered based on:
• pricing information,
• results of similar contracts the group has recognised and
• environmental factors, like changes in market or regulations.
Further details are discussed in chapter Presentation starting on page 239.
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Recognition
Groups of insurance contracts issued have to be recognised from the earliest of the following:
• The beginning of the coverage period of the group of contracts;
• The date when the initial payment from a policyholder in the group of contracts becomes due, or when the first payment is received if there is no due date; or
• For a group of onerous contracts, as soon as facts and circumstances indicate that the group is onerous.
Proportional and non-proportional groups of reinsurance contracts held have to be recognised at the latest of the following:
• The beginning of the coverage period of the group of reinsurance contracts held or
• The date the consolidated insurance companies recognise an onerous group of underlying insurance contracts if the consolidated insurance companies entered into the related reinsurance contract held in the group of reinsurance contracts held at or before that date.
Additionally, the recognition of proportional groups of reinsurance contracts held shall be delayed until the date when any underlying insurance contract is initially recognised, if that date is later than the beginning of the coverage period of the group of reinsurance contracts held.
New contracts are added to the group in the reporting period in which that contract meets one of the criteria set out above.
Contract boundary
The measurement of a group of insurance contracts includes all future cash flows within the boundary of each contract in the group. Cash flows are within the boundary of an insurance contract if they arise from substantive rights and obligations that exist during the reporting period in which the policyholder can be compelled to pay the premiums, or in which a substantive obligation exists to provide the policyholder with insurance contract services. A substantive obligation to provide insurance contract services ends when the practical possibility exists to reassess the risks of the particular policyholder and, as a result, a price or level of benefits can be set that fully reflects those risks; or both of the following criteria are satisfied:
• the practical ability exists to reassess the risks of the portfolio of insurance contracts that contain the contract and, as a result, a price or level of benefits can be set that fully reflects the risk of that portfolio; as well as
• the pricing of the premiums up to the date when the risks are reassessed does not take into account the risks that relate to periods after the reassessment date.
A liability or asset relating to expected premiums or claims outside the boundary of the insurance contract are not recognised as these amounts relate to future insurance contracts.
For contracts with renewal periods, it is assessed whether premiums and related cash flows that arise from the renewed contract are within the contract boundary. The pricing of the renewals to which IFRS 17 is applied is established by considering all the risks covered for the policyholder that would be considered when underwriting equivalent contracts on the renewal dates for the remaining service. The contract boundary of each group of contracts is reassessed at the end of each reporting period.
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IFRS 17 transition date (1 January 2022): Fair value approach (FVA)
The discount rates used for groups of insurance contracts were determined at the transition date. Therefore, the locked-in discount rates, for the measurement of fulfilment cash flows of a group of insurance contracts at the date of transition, are the weighted average rates applicable at the date of initial recognition of the underlying contracts. The discount rate used for the accretion of interest on the CSM was determined using the bottom-up approach at inception.
The fair value approach is a simplified method of determining the CSM and/or loss components for groups of insurance contracts at the transition date. The CSM or loss component of the LRC at the transition date is determined as the difference between the fair value of the group of insurance contracts and the fulfilment cash flows measured at that date. In determining the fair value, the requirements of IFRS 13 Fair Value Measurement were applied; except for the application of IFRS 13.47 regarding the characteristic of short-term retrievability.
When applying the fair value approach at the transition date, it is permissible to aggregate contracts issued more than one year apart.
Reasonable and supportable information that was available at the transition date was used for the following:
• identify groups of insurance contracts,
• determine whether any contracts are direct participating insurance contracts,
• identify any discretionary cash flows for insurance contracts without direct participation features,
• determine whether an investment contract meets the definition of an investment contract with discretionary participation features as defined in IFRS 17.
VIG divides insurance finance effects into amounts recognised through profit and loss and amounts recognised directly in equity.
The cost of capital approach to determine the fair value was used to calculate the insurance contract liabilities at the transition date. This was calculated as follows:
• the economically calculated best-estimate liability without taking into account reporting requirements; plus
• a profit margin in line with the market.
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The discount rates applied at the transition date
Spot Rates* | 01/01/2022 | |||||
1 year | 3 years | 5 years | 10 years | 20 years | 30 years | |
in % | ||||||
ALL | -0.58 | -0.25 | -0.08 | 0.21 | 0.46 | 1.05 |
BAM | -0.64 | -0.30 | -0.13 | 0.15 | 0.40 | 1.01 |
BGN | -0.64 | -0.30 | -0.13 | 0.15 | 0.40 | 1.01 |
CHF | -0.80 | -0.48 | -0.33 | -0.01 | -0.01 | 0.32 |
CZK | 4.63 | 4.13 | 3.71 | 3.09 | 2.96 | 3.06 |
EUR | -0.58 | -0.25 | -0.08 | 0.21 | 0.46 | 1.05 |
GBP | 0.78 | 1.20 | 1.20 | 1.11 | 1.05 | 1.00 |
GEL | 7.78 | 8.13 | 8.13 | 8.07 | 7.87 | 7.34 |
HRK | -0.18 | 0.01 | 0.19 | 0.82 | 1.72 | 2.21 |
HUF | 3.49 | 4.13 | 4.29 | 4.43 | 4.66 | 4.69 |
MDL | -0.58 | -0.25 | -0.08 | 0.21 | 0.46 | 1.05 |
MKD | -0.58 | -0.25 | -0.08 | 0.21 | 0.46 | 1.05 |
PLN | 2.66 | 3.60 | 3.73 | 3.57 | 3.49 | 3.47 |
RON | 3.93 | 4.52 | 4.68 | 5.07 | 5.01 | 4.68 |
RSD | 2.21 | 2.76 | 3.29 | 4.01 | 4.17 | 4.06 |
TRY | 21.64 | 24.35 | 25.35 | 24.27 | 20.71 | 16.92 |
UAH | 11.43 | 12.73 | 12.68 | 10.14 | 7.58 | 6.82 |
USD | 0.44 | 1.08 | 1.28 | 1.50 | 1.67 | 1.64 |
*Without illiquidity adjustment
Illiquidity adjustment | 01/01/2022 |
in basis points | |
Bosnia-Herzegovina | 100 |
Bulgaria | 45 |
Germany | 15 |
Croatia (HRK) | 9 |
Liechtenstein | 15 |
Austria | 15 |
Poland | 63 |
Serbia | 200 |
Slovakia | 8 |
Czech Republic | 29 |
Türkiye | 26 |
Hungary | 19 |
With regard to material accounting estimates and judgements made under this approach, reference is made to Note 23.1. (Re-)Insurance contracts starting on page 218.
Initial measurement
Insurance contracts not measured under PAA
A group of insurance contracts is measured as the total of:
• the fulfilment cash flows and
• the CSM, representing the unearned profit the consolidated insurance companies will recognise as they provide insurance contract services under the insurance contracts in the group.
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The fulfilment cash flows consist of:
• unbiased and probability-weighted estimates of future cash flows,
• a discount to present value to reflect the time value of money and financial risks, and
• a risk adjustment for non-financial risks.
The objective in estimating future cash flows is to determine the expected value (or the probability-weighted mean value) of the full range of possible outcomes, considering all reasonable and supportable information available at the reporting date without undue cost or effort. Future cash flows are estimated considering a range of scenarios which have economical substance and give a good representation of possible outcomes. The cash flows from each scenario are probability-weighted and discounted using current assumptions.
When estimating future cash flows, all cash flows within the contract boundary are considered for example:
• premiums and any additional related cash flows,
• claims and benefits, including reported claims not yet paid, incurred claims not yet reported and expected future claims including:
– payments to policyholders that vary depending on returns of underlying items and
– allocation of insurance acquisition costs attributable to the portfolio to which the contract belongs.
• claims handling costs,
• policy administration and maintenance costs, including recurring commissions that are expected to be paid to intermediaries,
• allocation of fixed and variable overheads directly attributable to fulfilling insurance contracts,
• transaction-based taxes.
The measurement of fulfilment cash flows includes insurance acquisition costs that are recognised as an expense over the coverage period of the group of insurance contracts. At the same time an equal amount is recorded as insurance service revenue representing a portion of premium that relates to recovering insurance acquisition costs.
Insurance contracts measured under PAA
VIG applies the premium allocation approach (PAA) at least to all short-term P&C insurance contracts that it issues, as:
• the coverage period of each contract in the group is one year or less, including insurance contract services arising from all premiums within the contract boundary (refer to chapter Contract boundary starting on page 231), or
• for contracts longer than one year, possible future scenarios have been modelled and it is assumed that the measurement of the liability for remaining coverage for the group containing those contracts under the PAA does not differ materially from the measurement that would result from the application of the GMM. In assessing materiality, qualitative factors such as the nature of the risk and types of its insurance portfolios are also considered.
The PAA is not applied if, at the initial recognition of the group of contracts, a significant variability in the fulfilment cash flows is expected that would affect the measurement of the liability for the remaining coverage (LRC) during the period before a claim is incurred. Variability in the fulfilment cash flows increases with, for example:
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• the extent of future cash flows related to any derivatives embedded in the contracts and
• the length of the coverage period of the group of contracts.
For a group of contracts that is not onerous at initial recognition, the liability for remaining coverage is measured as:
• the premiums, if any, received at initial recognition,
• minus any insurance acquisition cash flows at that date,
• plus or minus any amount arising from the derecognition at that date in the item insurance acquisition costs recognised as assets
• plus or minus any other assets or liabilities previously recognised for cash flows prior to the recognition of the group of insurance contracts.
Where facts and circumstances indicate that contracts are onerous at initial recognition, additional analysis helps determining if a net outflow is expected from the contract. Such onerous contracts are separately grouped from other contracts and a loss is recognised in profit and loss for the net outflow, resulting in the book value of the liability for the group being equal to the fulfilment cash flows. A loss component is established for the liability for remaining coverage for such onerous group depicting the losses calculated. For additional disclosures on the loss component, please refer to chapter Presentation starting on page 239 and for onerous contracts to chapter Onerous contracts starting on page 230.
For contracts measured using the PAA, VIG accounting policy does not, in general, permit the liability for remaining coverage (LRC) to be measured using discounted cash flows, unless the group of contracts is onerous.
Reinsurance contracts held
Reinsurance assets for a group of reinsurance contracts held are measured on the same basis as a group of insurance contracts issued. However, they are adapted to reflect the features of reinsurance contracts held that differ from insurance contracts issued, for example the increase in expenses or reduction in expenses rather than income.
A loss is recognised on initial recognition of an onerous group of underlying insurance contracts or when further onerous underlying insurance contracts are added to a group. Furthermore, a loss-recovery component of the asset for remaining coverage is established for a group of reinsurance contracts held depicting the recovery of losses.
The loss-recovery component is calculated by multiplying the loss recognised on the underlying insurance contracts and the percentage of claims on the same underlying insurance contracts that the consolidated insurance companies expect to recover from the group of reinsurance contracts held. Where only some contracts in the onerous underlying group are covered by the group of reinsurance contracts held, a systematic and rational method is used to determine the portion of losses recognised on the underlying group of insurance contracts that relate to insurance contracts covered by the group of reinsurance contracts held. The loss-recovery component adjusts the book value of the asset for remaining coverage.
Where the group enters reinsurance contracts held which provide coverage relating to events that occurred before the purchase of the reinsurance, such cost of reinsurance is recognised in profit or loss on initial recognition.
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Subsequent measurement
According to IAS 34, the general frequency of reporting must not affect the annual results. IFRS 17 requires changes in estimates that relate to changes in future services in the contractual service margin to be immediately recognised in the income statement. To avoid affecting the annual result, measurements during the year must be based on a cumulative basis from the beginning of the financial year to the reporting date (year-to-date accounting). Under year-to-date accounting, changes in estimates recorded in periods during the year are not taken into account, while they are included in the calculation with date-to-date accounting. VIG Insurance Group decided to make use of the year-to-date accounting option according to IFRS 17.B137.
Insurance contracts not measured under PAA
The CSM at the end of the reporting period represents the profit in the group of insurance contracts that has not yet been recognised in profit and loss, because it relates to future services to be provided.
For a group of insurance contracts measured with the GMM, the book value of the CSM of the group at the end of the reporting period equals the book value at the beginning of the reporting period adjusted by:
• the effect of any new contracts added to the group,
• interest accreted on the book value of the CSM during the reporting period, measured at the discount rates at initial recognition,
• the changes in fulfilment cash flows relating to future service, except to the extent that:
– such increases in the fulfilment cash flows exceed the book value of the CSM, giving rise to a loss; or
– such decreases in the fulfilment cash flows are allocated to the loss component of the liability for remaining coverage (see chapter Loss component starting on page 240),
• the effect of any currency exchange differences on the CSM, and
• the amount recognised as insurance service revenue because of the transfer of insurance contract services in the period, determined by the allocation of the CSM remaining at the end of the reporting period (before any allocation) over the current and remaining coverage period (see chapter Insurance service revenue starting on page 240).
The subsequent measurement assumes for the CSM calculation using the VFA the following modifications compared to GMM:
• Changes to financial assumptions resulting from the underlying reference values would lead to an adjustment of the CSM instead of the income statement (or optionally the statement of comprehensive income). This includes:
– Changes in fair value of the underlying assets; and also
– Changes in estimates of the present value of future cash flows that do not change based on the returns of the underlying assets in relation to future services.
• There is no explicit CSM increase in interest.
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The changes in fulfilment cash flows for contracts measured with the GMM relating to future services that adjust the CSM comprise:
• experience adjustments that arise from the difference between the premium receipts (and any related cash flows such as insurance acquisition costs and insurance premium taxes) and the estimate, at the beginning of the period, of the amounts expected. Differences related to premiums received (or due) related to current or past services are recognised immediately in profit or loss while differences related to premiums received (or due) for future services are adjusted against the CSM;
• changes in estimates of the present value of future cash flows in the liability for remaining coverage, except those relating to the time value of money and changes in financial risk (recognised in the income statement and other comprehensive income rather than adjusting the CSM);
• differences between the investment component expected to become payable in the period and the actual investment component that becomes payable in the period. These differences are determined by comparing the actual investment component that becomes payable in the period with the payment that was expected at the start of the period plus any insurance finance income or expenses related to that expected payment before it becomes payable. The same applies to a policyholder loan that becomes repayable; and
• changes in the risk adjustment for non-financial risk that relate to future services.
The adjustments to the CSM noted above are measured at discount rates that reflect the characteristics of the cash flows of the group of insurance contracts at initial recognition (see Note 23.1. (Re-)Insurance contracts subchapter Discount rates starting on page 219).
Where, during the coverage period, a group of insurance contracts becomes onerous, a loss is recognised in profit and loss for the net outflow, resulting in the book value of the liability for the group being equal to the fulfilment cash flows. A loss component is established for the liability for remaining coverage for such onerous group depicting the losses recognised. For additional disclosures on the loss component, please refer to page 240.
The book value of a group of insurance contracts is measured at the end of each reporting period as the sum of:
• the liability for remaining coverage comprising fulfilment cash flows related to future service allocated to the group at that date and the CSM of the group at that date; and
• the liability for incurred claims comprising the fulfilment cash flows related to past service allocated to the group at that date.
Insurance contracts measured under PAA
At the end of each reporting period, the book value of the liability for remaining coverage is the book value at the beginning of the period:
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• plus premiums received in the period,
• minus insurance acquisition costs (see chapter Insurance acquisition costs starting on page 238),
• plus any amounts relating to the amortisation of the insurance acquisition cash flows recognised as an expense in the reporting period for the group,
• plus any adjustment to the financing component, where applicable,
• minus the amount recognised as insurance service revenue for the services provided in the period, and
• minus any investment component paid or transferred to the liability for incurred claims.
The liability for incurred claims (LIC) is estimated as the fulfilment cash flows related to incurred claims. The fulfilment cash flows incorporate, in an unbiased way, all reasonable and supportable information available without undue cost or effort about the amount, timing and uncertainty of future cash flows, they reflect current estimates, and include an explicit adjustment for non-financial risk (the risk adjustment). VIG always discounts the LIC even when the cash flows are expected to be paid or received in one year or less from the date the claims are incurred.
Where, during the coverage period, facts and circumstances indicate that a group of insurance contracts is onerous, a loss in profit and loss is recognised for the net outflow, resulting in the book value of the liability for the group being equal to the fulfilment cash flows. A loss component is established for the liability for remaining coverage for such onerous group depicting the losses recognised. For additional disclosures on the loss component, please refer to page 230 and page 240. For additional information on insurance acquisition costs, please refer to chapter Insurance acquisition costs starting on page 238.
Reinsurance contracts held
The subsequent measurement of reinsurance contracts held follows the same principles as those for insurance contracts issued and has been adapted to reflect the specific features of reinsurance contracts held.
Where a loss-recovery component has been established, the consolidated insurance companies subsequently reduce the loss-recovery component to zero in line with reductions in the onerous group of underlying insurance contracts in order to reflect that the loss-recovery component shall not exceed the portion of the book value of the loss component of the onerous group of underlying insurance contracts that the entity expects to recover from the group of reinsurance contracts held.
Modification and derecognition
Insurance contracts are derecognised when the rights and obligations relating to the contract are extinguished (i.e., discharged, cancelled or expired) or the contract is modified such that the modification results in a change in the measurement model, or the applicable standard for measuring a component of the contract. In such cases, the initial contract is derecognised and the modified contract is recognised as a new contract.
Insurance acquisition costs
Insurance acquisition costs arise from the costs of selling, underwriting and starting a group of insurance contracts (issued or expected to be issued) that are directly attributable to the portfolio of insurance contracts to which the group belongs.
Where insurance acquisition costs have been paid or incurred before the related group of insurance contracts is recognised in the consolidated balance sheet, a separate asset for insurance acquisition costs is recognised for each related group.
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The asset for insurance acquisition costs is derecognised from the consolidated balance sheet when the insurance acquisition costs are included in the initial measurement of the CSM of the related group of insurance contracts.
It is required to apply a systematic and rational method to allocate:
• Insurance acquisition costs that are directly attributable to a group of insurance contracts:
– to that group; and
– to groups that include insurance contracts that are expected to arise from the renewals of the insurance contracts in that group.
• Insurance acquisition costs that are not directly attributable to a group of contracts but directly attributable to a portfolio of insurance contracts to groups in the portfolio.
At the end of each reporting period, the amounts of insurance acquisition costs allocated to groups of insurance contracts not yet recognised are revised, to reflect changes in assumptions related to the method of allocation used.
After any re-allocation, the recoverability of the asset for insurance acquisition costs is assessed, if facts and circumstances indicate the asset may be impaired. When assessing the recoverability, it is required to apply the following:
• an impairment test at the level of an existing or future group of insurance contracts; and
• an additional impairment test specifically covering the insurance acquisition costs allocated to expected future contract renewals.
If an impairment loss is recognised, the book value of the asset is adjusted and an impairment is recognised in profit and loss in the item insurance service expenses – issued.
A full or partly reversal of previously recognised impairments are recognised in profit or loss and increase the book value of the asset, to the extent that the impairment conditions no longer exist or have improved.
Presentation
In accordance with IFRS 17, the consolidated insurance companies report the book value of the following portfolios separately in the consolidated balance sheet:
• Insurance contracts issued that are assets,
• Insurance contracts issued that are liabilities,
• Portfolios of reinsurance contracts held that are assets, and
• Portfolios of reinsurance contracts held that are liabilities.
Assets or liabilities recognised before the commencement of the corresponding insurance contracts are included in the book value of the related portfolios of insurance contracts issued.
The amounts recognised in the income statement and in the other comprehensive income are disaggregated into the items insurance service result and insurance finance result.
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The income or expenses from reinsurance contracts held are likewise presented in the income statement in the item insurance service result, whereby the reinsurance service result is presented separately from the expenses or income from insurance contracts issued.
The change in risk adjustment for non-financial risks is disaggregated between the items insurance service result and insurance finance result.
Insurance service revenue
The insurance service revenue depicts the provision of services arising from a group of insurance contracts at an amount that reflects the consideration to which it is expected to be entitled in exchange for those services.
For contracts not measured under PAA, insurance service revenue from a group of insurance contracts is therefore the relevant portion for the period of the total consideration for the contracts. Which means, the amount of premiums paid to the consolidated insurance companies adjusted for financing effect (the time value of money) and excluding any investment components. The total consideration for a group of contracts covers amounts related to the provision of services and is comprised of:
• insurance service expenses, excluding any amounts relating to the risk adjustment for non-financial risks and any amounts allocated to the loss component of the liability for remaining coverage;
• other amounts like income tax that are specifically chargeable to the policyholder;
• the risk adjustment for non-financial risks, excluding any amounts allocated to the loss component of the liability for remaining coverage;
• the CSM release and
• amounts related to insurance acquisition costs.
For material judgements applied to the amortisation of CSM, please refer to chapter Amortisation of the Contractual Service Margin (CSM) starting on page 220.
Under PAA, the insurance service revenue for the period is the amount of expected premium receipts excluding any investment component which is allocated to the period. The expected premium receipts are allocated to each period of insurance contract services mainly on a basis of a linear release pattern on local entity level. However, if the expected pattern of release of risk during the coverage period differs significantly from the passage of time, then the allocation is made on the basis of the expected timing of incurred insurance service expenses.
If facts and circumstances change, the two methods mentioned above will be alternated.
Loss component
Contracts that are onerous at initial recognition are grouped separately from contracts in the same portfolio that are not onerous at initial recognition. Groups that were not onerous at initial recognition may subsequently become onerous if assumptions change and experience adjustments are performed. For any onerous group a loss component of the liability for remaining coverage is established depicting the future losses recognised.
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A loss component represents a notional record of the losses attributable to each group of onerous insurance contracts or contracts profitable at inception that have become onerous. The loss component is released based on a systematic allocation of the subsequent changes relating to future service in the fulfilment cash flows. The loss component is also updated for subsequent changes relating to future service in estimates of the fulfilment cash flows and the risk adjustment for non-financial risks. The systematic allocation of subsequent changes to the loss component results in the total amounts allocated to the loss component being equal to zero by the end of the coverage period of a group of contracts since the loss component will have been realised in the form of incurred claims.
For groups of contracts measured under the PAA, no contracts are assumed to be onerous at initial recognition unless facts and circumstances indicate otherwise. Where this is not the case, and if at any time during the coverage period the facts and circumstances mentioned in Note 25.3. indicate that a group of insurance contracts is onerous, a loss component has to be established as the excess of the fulfilment cash flows that relate to the remaining coverage of the group over the book value of the liability for remaining coverage of the group as determined in chapter Initial measurement starting on page 233. Accordingly, by the end of the coverage period of the group of contracts the loss component will be zero.
Loss-recovery components
As described in chapters Initial measurement-Reinsurance contracts held starting on page 235 and subsequent measurement Reinsurance contracts held starting on page 238 when a loss is recognised on initial recognition of an onerous group of underlying insurance contracts or when further onerous underlying insurance contracts are added to a group, a loss-recovery component (LoReCo) of the asset for remaining coverage is established for a group of reinsurance contracts held depicting the recovery of losses.
Where a loss component has been set up subsequent to initial recognition of a group of underlying insurance contracts, the portion of income that has been recognised from related reinsurance contracts held is disclosed as a loss-recovery component.
Where a loss-recovery component has been set up at initial recognition or subsequently, the loss-recovery component is adjusted to reflect changes in the loss component of an onerous group of underlying insurance contracts.
The book value of the loss-recovery component must not exceed the portion of the book value of the loss component of the onerous group of underlying insurance contracts that the consolidated insurance companies expect to recover from the group of reinsurance contracts held. On this basis, the loss-recovery component recognised at initial recognition is reduced to zero in line with reductions in the onerous group of underlying insurance contracts and is nil when the loss component of the onerous group of underlying insurance contracts is nil.
Reinsurance contracts held result
IFRS 17 requires a reinsurance contract held to be accounted for separately from the underlying insurance contracts to which it relates. Additionally, amounts arising from transactions with reinsurers shall be reported according to whether they relate to:
• the amounts recovered from the reinsurer or
• amounts allocated to premiums paid.
With special treatment of:
• reinsurance cash flows that are contingent on claims on the underlying contracts, which are treated as part of the claims that are expected to be reimbursed under the reinsurance contract held;
• reinsurance cash flows that are not contingent on claims on the underlying contracts (e.g. some types of ceding commissions), which are treated as a reduction in the premiums to be paid to the reinsurer.
• Amounts relating to the recovery of losses relating to reinsurance of onerous direct contracts are included as amounts recoverable from the reinsurer.
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Insurance finance result
The insurance finance result comprises the change in the book value of the group of insurance contracts arising from:
• the effect of the time value of money and changes in the time value of money and
• the effect of financial risk and changes in financial risk, but
• excluding any such changes for groups of insurance contracts with direct participation features that would adjust the CSM but do not do so because the groups of contracts are onerous. These are included in insurance service expenses.
VIG applies the option to disaggregate the insurance finance result for insurance contracts issued between the income statement and other comprehensive income. The OCI option allows inconsistent measurements (accounting mismatch) of assets and liabilities to be offset through equity, rather than through profit or loss. Such differences can, for example, occur for life insurance policies eligible for profit-participation. If the business model requires such measurement, the OCI option is used to minimise the accounting mismatch. For participations that are being held for strategic purposes, the OCI option is predominantly used in order to minimise the accounting mismatches mentioned above. VIG’s financial assets backing the insurance issued portfolios are predominantly measured at amortised cost or FVtOCI.
The total insurance finance income or expenses are systematically allocated to profit and loss over the duration of the group of contracts by using discount rates determined on group of insurance level.
24.4. Financial instruments
Financial assets
Initial recognition
At initial recognition, the classification of financial assets depends on the contractual cash flows (solely payments of principal and interest criterion (SPPI criterion)) as well as the business model.
Financial assets are initially recognised on the processing day at fair value (as defined in Note 24.9. Calculation of fair value starting on page 252), and the fair value should not deviate from the transaction price. At initial recognition, for financial assets measured at AC or FVtOCI, directly attributable transaction costs shall be included in the amortised costs. Internal (overhead) costs shall not be attributed to the amortised cost as these are not directly attributable to the single transactions.
Measurement categories
Financial assets are classified based on the contractual cash flows characteristics test and the business model for managing the financial assets. Based on these criteria, financial assets can be classified into the following measurement categories:
• Debt instruments measured at amortised cost;
• Debt instruments measured at FVtOCI, where the cumulative gains and losses will be reclassified to the income statement upon derecognition;
• Equity instruments designated measured at FVtOCI, where the cumulative gains and losses are not recognised in the income statement upon derecognition;
• Financial assets (debt instruments, derivative financial instruments and equity instruments) measured at FVtPL.
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Debt instruments measured at amortised cost
Debt instruments are held at AC if both of the following conditions are met:
• The instruments are held within a business model with the objective of holding the instrument to collect the contractual cash flows.
• The contractual terms of the debt instrument give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
Debt instruments measured at FVtOCI
Debt instruments are measured at FVtOCI if the following two conditions are met:
• The instrument is held within a business model, the objective of which is both collecting contractual cash flows and selling financial assets, and
• the contractual terms of the financial asset meet the SPPI test.
Debt instruments in this category are those that are intended to be held to collect contractual cash flows and which may be sold in response to needs for liquidity or changes in market conditions.
Equity instruments designated measured at FVtOCI
The irrevocable classification of equity instruments as measured at FVtOCI is applied for strategically held financial instruments which are not held for trading. This mainly includes shares in affiliated non-consolidated companies. Financial assets are subject to short-term fluctuations in fair value, which, if classified as measured at FVtPL, lead to a volatility in the investment result that would not correspond with VIG’s long-term strategic investment policy for these classified instruments.
Gains and losses from the revaluation of these equity instruments are not reclassified to the income statement at any time. Dividends are recognised as other operating income in the income statement when the right of the payment has been established. Except when such proceeds are beneficial as a recovery of part of the acquisition cost of the instrument. Equity instruments designated measured at FVtOCI are not subject to any impairment test.
Financial assets measured at FVtPL
Financial assets in this category are managed in a fair value business model, have been designated by management upon initial recognition or are mandatorily required to be measured at fair value acc. to IFRS 9. This category includes:
• financial assets whose cash flow characteristics fail the SPPI criterion or
• financial assets that are not managed within a business model in order to collect contractual cash flows or also not in order to collect contractual cash flows as well as sell the instruments or
• financial assets that are classified to the category of designated measured at FVtPL for the purpose of reducing an accounting mismatch or
• equity instruments that have not been classified as designated measured at FVtOCI.
SPPI test and assessment of the business model
VIG assigns debt instruments to the measurement models based on the SPPI criterion and the business model.
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If the SPPI test is passed, the classification and subsequent measurement of financial instruments according to IFRS 9 is the business model chosen for managing the asset. The business model refers to how the company manages a portfolio of financial assets in order to generate cash flows. The business model is established at local level so as to manage financial instruments when planning the investment strategy in order to achieve local business objectives.
The business model is not assessed on an instrument-by-instrument basis but at a higher level of portfolios and is based on observable factors. If cash flows after initial recognition are realised in a way that is different from the original expectations, the classification of the remaining financial assets held in that business model does not change. However, such information is taken into consideration when assessing newly purchased financial assets.
The business model is applied to groups of assets which are managed homogeneously. The derivation takes into consideration asset class, liquidity, type of administration (asset manager, externally managed portfolios or special funds) as well as the investment strategy.
When determining the investment strategy (and consequently the business model), the type of liabilities that are covered under IFRS 17 and their measurement model are taken into consideration.
Cash and cash equivalents as well as term deposits are generally valued at AC.
Subsequent measurement
Debt instruments measured at AC
After initial measurement, debt instruments are measured at amortised cost, using the effective interest rate (EIR) method, less allowance for impairment. Amortised cost is calculated by taking into account any discount or premium on acquisition and fee or costs that are an integral part of the EIR. An allowance is recognised for ECLs (expected credit losses) in the income statement.
Debt instruments measured at FVtOCI
Debt instruments are subsequently measured at fair value in accordance with FVtOCI with unrealised gains and losses arising due to changes in fair value recognised in OCI. Interest revenues and foreign exchange effects are recognised in profit or loss in the same manner as for financial assets measured at amortised cost. For further information on the calculation of expected credit loss for debt instruments measured at FVtOCI, please refer to chapter The calculation of ECLs starting on page 246. On derecognition, cumulative gains or losses previously recognised in OCI are reclassified to profit and loss.
Equity instruments designated measured at FVtOCI
For equity instruments that are designated measured at FVtOCI, transaction costs are recognised in OCI as part of the change in fair value at the next remeasurement and they are never reclassified into profit and loss. In case of a derecognition event, the correlating reserves are directly posted to “retained earnings”. In contrast to the equity instruments measured at FVtPL, only dividends are recognised in the income statement.
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Financial assets measured at FVtPL
Financial assets measured at FVtPL are recorded in the balance sheet at fair value. Changes in fair value are realised in profit and loss. Transaction costs relating to the acquisition or issue of financial instruments measured at FVtPL are recognised in profit and loss. Interest earned on assets mandatorily required to be measured at FVtPL is accounted for using the contractual interest rate.
derecognition
Derecognition apart from a significant modification
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when:
• The right to receive cash flows from the asset has expired or
• The right to receive cash flows from the asset has been transferred or an obligation has been assumed to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either substantially all the risks and rewards of the asset have been transferred or substantially all the risks and rewards of the asset have been neither transferred nor retained, but control of the asset has been transferred.
Control is considered to be transferred if and only if, the transferee has the practical ability to sell the asset in its entirety to an unrelated third party and is able to exercise that ability unilaterally and without imposing additional restrictions on the transfer.
When all risks and rewards have neither transferred nor substantially been retained and control of the asset has been maintained, the asset continues to be recognised only to the extent of continuing involvement, in which case, an associated liability has also been recognised. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original book value of the asset and the maximum amount of consideration that could be required to pay.
Derecognition due to contract modification
A financial asset is derecognised when the terms and conditions have been renegotiated to the extent that, substantially, it becomes a new instrument, with the difference recognised as a derecognition gain or loss. In case of an insignificant modification, the gross carrying amount is recalculated as the present value of the renegotiated or modified contractual cash flows, discounted at the financial asset’s original EIR (or credit adjusted EIR for POCI assets) or, when applicable, the revised EIR.
When assessing whether or not to derecognise an instrument, VIG considers the following modification criteria:
• Quantitative criteria:
– Modified debt instruments are considered to be “substantially different” if the net present value of the cash flows under the new terms discounted at the original EIR (of the original contract) is at least 10% different from the original debt instrument.
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• Qualitative criteria:
– Change in the SPPI assessment, e.g. introduction of an equity-linked feature
– Change in the currency of the asset. Non-contractual changes in the currency are not relevant (e.g. in the course of a currency reform or accession to the Eurozone).
– Change in the maturity of the instrument. Changes in the maturity of a financial instrument are not considered to be “substantially different” if the possibility has already been included in the original lending contract. Moreover, the change is not considered to be substantial, if the total contractual lifetime is
– extended by less than 50%,
– shortened by less than 30% or
– changed by less than 2 years of the original lifetime.
If the modification does not result in cash flows that are substantially different, the modification does not result in derecognition. Based on the change in cash flows discounted at the original EIR, a modification gain or loss is recorded.
Impairment of financial assets
Further details regarding the impairment of financial assets are also provided within the disclosures for significant judgements and estimates (Note 23.2. Impairment losses on financial assets starting on page 222).
VIG recognises an allowance for ECLs for all debt instruments measured at AC or FVtOCI, loan commitments and guarantees as well as IFRS 9 measured receivables.
ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that are expected to be received, discounted at the effective interest rate.
The amount of the ECLs recognised depends on the different impairment model stages to which the financial instruments were assigned. For financial instruments for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for the credit losses expected within the next 12 months (12-month ECL/Stage 1). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a risk provision is required for credit losses expected over the remaining life of the exposure (lifetime ECL).
VIG considers a financial asset to be in default when contractual payments are 90 days past due and/or if its rating is stated as C or D, unless VIG has reasonable and supportable information to demonstrate that a more lagging default criterion is more appropriate.
The calculation of ECLs
ECLs are calculated based on scenarios to measure the expected cash shortfalls, discounted at an appropriate EIR. A cash shortfall is the difference between the cash flows that are in accordance with the contract and the cash flows that the entity expects to receive. The mechanics of the ECL calculations are outlined below and the key elements are, as follows:
• Probability of Default (PD): The PD is an estimate of the likelihood of default over a given time horizon. It is estimated with consideration of economic scenarios and forward-looking information.
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VIG uses the following segments for its portfolio:
– Corporates
– Sovereigns
– The segment Sovereigns consists of all bonds or loans issued by public authorities, whether by central governments, supra-national government institutions, regional governments or local authorities, that are fully, unconditionally and irrevocably guaranteed by these institutions. All other exposures are treated within the corporates segment.
• Exposure at Default (EAD): The EAD is an estimate of the exposure at a future default date, taking into account expected changes in the exposure after the reporting date, including repayments of principal and interest, whether scheduled by contract or otherwise, and accrued interest from missed payments.
• Loss Given Default (LGD): The LGD is an estimate of the loss arising in the case where a default occurs at a given time. It is based on the difference between the contractual cash flows due and those that are expected to be received. It is usually expressed as a percentage of the EAD.
Concerning the segmentation of LGDs, the following segments will be used:
– Subordinated debt
– Senior unsecured debt
– Sovereigns
– Secured debt: The Secured segment at VIG covers all positions secured by mortgage as well as covered bonds.
– For unsecured assets, VIG will apply predefined LGDs, which are not time-dependent (flat LGD curves).
Assets subject to ECL calculations are allocated into one of the following categories:
• 12-month ECL (Stage 1): Stage 1 allows a low credit risk or no significant increase in credit risk. It is calculated as the portion of the lifetime ECL, that represent the ECLs that result from default events on a financial instrument that are possible within 12 months after the reporting date.
• Stage 2: Assets classified under Stage 2 show a significant increase in credit risk (and not low credit risk), therefore the lifetime ECL must be calculated.
• Stage 3: Within this stage credit losses have already been incurred or assets have actually been credit impaired. Due to that fact, the difference between the asset’s gross carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate should be considered.
In accordance with IFRS, debt instruments measured at AC or measured at FVtOCI must follow the staged approach. The VIG approach is set as follows:
• Stage 1 – 12-month ECL
– assets with the exception of POCI assets,
– assets that fall within the scope of the low credit risk exemption, as well as
– assets that are not defaulted, not eligible for Stage 2 triggers and show no significant change in ratings
• Stage 2 – Lifetime ECLs (effective interest rate on gross carrying amount)
– are past due for at least 30 days or
– respond to one of the predefined forward-looking indicators.
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• Stage 3 – Lifetime ECLs (effective interest rate on amortised costs)
– assets fulfilling the default definition of VIG
• Stage 0 – POCI
Debt instruments measured at FVtOCI
As the book value of the debt instruments measured at FVtOCI corresponds to the fair value, the risk provision to be recognised does not lead to a reduction on the asset side of the balance sheet. Instead, an amount equal to the risk provision that would arise if the assets were measured at amortised cost is recognised in OCI with a corresponding charge to profit or loss. The accumulated gain recognised in OCI is recycled to the profit or loss upon derecognition of the assets.
Forward looking information
In the Group-wide ECL models, it can be relied on a broad range of forward-looking information, such as external and internal ratings, forecasts of macroeconomic variables or qualitative credit risk.
Collateral valuation and repossessed
To mitigate its credit risks on financial assets, collateral is sought to be used, where possible. The collateral comes in various forms, such as mortgages, securities or other types of collateral. Collateral, unless repossessed, is not recorded on VIG’s balance sheet. Cash flows expected from credit enhancements which are not required to be recognised separately by IFRS standards and which are considered integral to the contractual terms of a debt instrument which is subject to ECL, are included in the measurement of those ECL. On this basis, the fair value of collateral affects the calculation of ECL.
To the extent possible, data from an active market is used for valuing financial assets held as collateral. Other financial assets that do not have readily available market data are valued using models. Non-financial collateral, such as real estate, is valued either internally or based on third parties’ appraisals.
The ECL measurement also includes irrevocable and unconditional guarantees.
Write-offs
Financial assets are written off either in part or in full only when there is no reasonable expectation of recovery. If the amount to be written off is greater than the accumulated risk provision, the difference is first treated as an addition to the allowance that is then applied against the gross carrying amount. Any subsequent recoveries are credited to gains within the income statement.
Financial liabilities
Measurement categories of financial liabilities
Financial liabilities, other than loan commitments and financial guarantees, are measured at AC or at FVtPL if they are held for trading or are derivative instruments or if they are derivative financial instruments. VIG has no material portfolio of financial liabilities designated measured at FVtPL. All derivatives with a negative fair value (according to IFRS 13; determined on the basis of the so-called “dirty fair value”, i.e., including interest accruals) are presented as a liability measured at FVtPL. Analogous to the financial assets, financial liabilities are recognised at their “dirty value” starting with the initial application of IFRS 9.
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Derecognition and significant modification of financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires. Where an existing financial liability is replaced by another from the same lender on substantially different terms or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability. The difference between the book value of the original financial liability and the consideration paid is recognised in profit or loss.
Recognition of interest revenues
According to IFRS 9, interest revenues for all financial assets under IFRS 9 measured at AC or measured at FVtOCI are recorded using the effective interest method. The EIR is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset or, when appropriate, a shorter period, to the gross carrying amount of the financial asset.
The EIR and therefore, the amortised cost of the financial asset, is calculated by taking into account transaction costs and any discount or premium on acquisition of the financial asset as well as fees and costs that are an integral part of the EIR. Interest revenues are recognised using a rate of return that represents the best estimate of a constant rate of return over the expected life of the debt instrument.
For floating-rate financial instruments, the periodic re-fixing of coupon rates reflecting the movements in interest rates alters the effective interest rate.
The item interest revenues using the effective interest rate method only includes interest on financial instruments measured at AC or measured at FVtOCI.
The item interest revenue other includes interest from financial assets measured at FVtPL, which is also measured based on the derivation of the effective interest rate.
Repurchase and reverse repurchase agreements
Securities sold under agreements to repurchase are not derecognised from the balance sheet as substantially all of the risks and rewards of ownership are retained. The corresponding cash received is recognised in the consolidated balance sheet as an asset with a corresponding obligation to return it, including accrued interest as a liability within cash collateral on securities lent and repurchase agreements. This reflects the transaction’s economic substance as a loan to VIG. The difference between the sale and repurchase price is treated as interest expense and is deferred over the life of agreement.
By contrast, securities purchased under reverse repurchase agreements are not recognised in the balance sheet. The amount paid, including deferred interest, is recorded in the balance sheet within loans measured at AC. The difference between the purchase and resale price is shown in the corresponding current income position using the EIR.
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24.5. Goodwill
Goodwill is recorded in the functional currency of the respective unit. The item is measured at AC minus accumulated impairment losses. In the case of investments in associates, goodwill is included in the amortised book value of the investment.
Impairments
For the purpose of testing goodwill, the subsidiaries are combined to form cash-generating units (CGUs) at the level of geographical countries. These CGUs, on the basis of which the impairment test is conducted, correspond to the operating segments. The recoverability of trademark rights is additionally tested individually by application of the relief-from-royalty method. In the case of intangible assets with unlimited useful lives (goodwill and capitalised trademark rights), such an impairment test is also conducted during the year in response to a triggering event, but at least at the end of every financial year.
As a general rule, the value in use determined by application of the income-based discounted cash flow method is applied as the recoverable amount of the CGU. In those cases in which the value in use is less than the book value, the fair value less costs to sell is determined additionally. Trailing stock exchange multiples are applied to determine the fair value less costs to sell.
To determine the value in use, the available cash flows over five plan years and after that the perpetual annuity are discounted to present value. All subsidiaries prepare detailed planning forecasts for three years in the respective local currency, they are discussed in meetings of the Supervisory Board and subjected to a plausibility check as part of the planning and control process. The planning forecast for the next two years and the perpetual annuity are prepared by forecasting key parameters (e.g. combined ratios, insurance service revenue development, investment result) on the basis of their historical development and expectations for the future development of markets. Therefore, the projected cash flows from the perpetual annuity are deemed to be sustainable. The end-of-period exchange rate on 31 December of the financial year is applied for converting the amounts into euros.
Identifiable climate risks are included in the best estimate of the technical provisions via pricing and reserving. In the planning calculations, these identifiable climate risks are implicitly taken into account in the expected value of cash flows and in the solvency capital requirement, which are used for the impairment test. VIG offers insurance against major weather events, subject to strict reinsurance guidelines.
All insurance service assets are attributed to the CGUs. In addition to goodwill and trademark rights, these assets include all capitalised customer bases, financial assets, receivables, tangible assets and other assets. Insurance contract liabilities and current liabilities are deducted from the book values. Assets recognised by VIG Holding, but used by the operating companies are attributed to the CGUs in the form of corporate assets. Thus, the cash flows of the CGUs are adjusted for the depreciation and amortisation of the attributed corporate assets.
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A capital cost rate (before taxes) determined on the basis of the Capital Asset Pricing Model (CAPM) is applied to calculate the discount rates. For that purpose, country-specific inflation differences and risk premiums, as well as the sector-specific market risk, are added to the risk-free interest rate (equal to the return on German government bonds at the reporting date according to the Svensson method). The beta factor applied at the reporting date was determined on the basis of a defined peer group.
The long-term growth rates were calculated in the reporting period on the basis of the Compound Annual Growth Rate (CAGR) under the assumption that the insurance penetration of the respective countries will begin to converge with the current German penetration rate in 50 to 70 years from the year 2013. An inflation premium equal to half the inflation included in the capital costs is added to the CAGR.
24.6. Intangible assets
Purchased intangible assets are recognised in the balance sheet at acquisition cost less accumulated amortisation and impairment losses. The companies included in the scope of consolidation did not have any material internally generated intangible assets. All intangible assets with the exception of trademark rights have definite useful lives. Therefore, intangible assets are amortised over the period of their use.
Purchased software
Average useful life in years | from | to |
Software | 2 | 13 |
Software is amortised according to the straight-line method. Furthermore, it is checked on an ad-hoc basis whether the respective software components can still be used. If it is expected with a high degree of probability that certain IT systems or program components can no longer be used or not to the full extent, an impairment is recognised. If a change in the useful life of full use is found, the amortisation period is changed to match the new useful life.
Other intangible assets
In the course of the purchase price allocations conducted with respect to the acquisitions of the companies Asirom, BTA Baltic and Seesam, trademark rights with unlimited useful lives were identified in previous years. The unlimited useful life results from the fact that no foreseeable end of the economic useful life can be identified. The fair values of the trademark rights were determined by application of the relief-from-royalty method upon first-time consolidation. A tax amortisation benefit was included in the relief-from-royalty method.
Regarding impairments of trademark rights with unlimited useful life, please refer to the statements in Note 24.5. Goodwill starting on page 250.
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24.7. Investment property
Property that is both owner-occupied and investment property is divided. If the 20% limit is not exceeded, the property is recognised in the larger category (80:20 rule).
Property is measured at acquisition or construction costs minus accumulated scheduled depreciation and impairment losses. Cost comprises all costs incurred in putting the asset into its present location in its present condition. Costs incurred in later periods are only capitalised if they lead to a significant increase in future opportunities for use of the building (e.g. through respective building expansions or new fittings). Tangible assets are depreciated using the straight-line method over the expected economic useful life.
Average useful life in years | from | to |
Buildings categorised as investment property | 29 | 49 |
Measurement process
The measurement process for deriving the fair value of the items investment property and owner-occupied property is discussed in more detail in Note 24.9. Calculation of fair value starting on page 252.
An impairment must be recognised if the fair value is less than the book value (acquisition cost less accumulated scheduled depreciation and impairments already recognised). In that case, the book value is written off to the lower fair value and the difference is recognised in profit or loss. The same method as that applied for an impairment is applied to determine whether the fair value of a property exceeds the book value. It is to be determined at every reporting date whether there are any indications that the fair value of the property has risen above the book value. The book value after reversals gains may not exceed the book value taking into account scheduled depreciation, before the deduction of impairments.
Both impairments and reversals gains are recognised in the income statement. They are presented in Note 9. Notes to the consolidated income statement starting on page 188. The fair values and the level hierarchy according to IFRS 13 are presented in 16. Calculation of fair value starting on page starting on page 198.
24.8. Owner-occupied property
For the applied accounting policies, refer to the statements presented under 24.7. Investment property starting on page 252.
Average useful life in years | from | to |
Owner-occupied buildings | 28 | 47 |
24.9. Calculation of fair value
Measurement process of financial instruments
The valuation process for determining the fair value of financial assets aims to apply publicly available price quotations in active markets or valuations determined by application of recognised economic models that are based on observable input
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factors. The organisational units responsible for conducting the valuation are independent of the units that assume the investment risks, thereby ensuring the requisite separation of functions and duties.
As a general policy, the company seeks to measure the fair value of securities held within VIG Insurance Group at the same prices at the respective valuation date. In practice, however, situations arise in which actually achieving this goal would entail disproportionately high costs. For example, local regulations in some countries in which VIG Insurance Group operates require that resident companies use the prices determined in accordance with local regulations to measure the value of certain instruments. If in this case the same securities are held by other companies of VIG Insurance Group, it can happen that these companies apply different price sources to measure the fair value.
Special funds represent another case in which uniform valuation would only be possible at a disproportionately high cost. The Austrian companies hold special funds, which must be included in the consolidated financial statements according to IFRS accounting rules, to varying extents. However, the net asset value (NAV) of a special fund on a given date is measured at the (usually closing) prices of the previous day. In these cases, a security that is held both in a special fund and directly in the company’s portfolio is measured at different prices.
Measurement process of real estate
Owner-occupied real estate and investment property are appraised at regular intervals of time by generally sworn and court-certified building and real estate appraisal experts.
The methods mainly used to calculate the fair value of real estate in VIG Insurance Group are the capitalised earnings value method, the discounted cash flow method and the asset value method (only for land or to determine maintenance expenses).
The capitalised earnings value method is mainly used in VIG Insurance Group. In rarer cases, a discounted cash flow method is used if that would yield the highest-use and best-use value for the property in question.
Capitalised earnings value method
Under this method, the value of the real estate is calculated by capitalising the expected future or actual gross income at an appropriate interest rate over the expected useful life. The net income is calculated by deducting the actual expenses for operation, maintenance and administration (management expenses). The default risk and any liquidation proceeds or costs are considered as well. The interest rate applied to calculate the capitalised earnings value is based on the achievable rate of return. The net income, reduced by the return on the land value, is then capitalised over the remaining useful life at the chosen interest rate, yielding the capitalised earnings value of the physical structure. This amount is then added to the land value to arrive at the total capitalised earnings value of the property.
Discounted cash flow method
The discounted cash flow method is a valuation method in which cash flows during the forecast phase (Phase I) are discounted to present value at the valuation date. The discount rate applied for this purpose is the rate of return of a comparably risky investment, plus property-specific and market-specific premiums. The annual gross income raised by vacancy rents (at current market rents) and minus the management expenses that cannot be charged to tenants results in the annual net income. Thanks to the exact nature of analysis over the individual forecast years, this method makes it possible to allocate investments or vacancies to individual years and therefore take them into account from the outset. In Phase II, the hypothetical sale proceeds at the end of the forecast phase (usually 10 years) are calculated by capitalising
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future cash flows. The interest rate applied for this calculation is determined as the rate of return on a comparably risky investment, plus market-specific and property-specific premiums, minus expected property appreciation.
Asset value method
The asset value method is a market-oriented method that combines the land value, the building value, the value of outdoor facilities and the value of available connections. This method is basically used to measure the value of an undeveloped plot of land.
The land value is usually determined by way of the residual value method, under which a development discount has no longer been applied since 2018, having been replaced with a premium or discount for increased or decreased use, respectively. Whether or not increased or decreased use applies is determined on the basis of a simplified usable space study or an estimate of development possibilities based on developments in the surrounding area. This determination is made under both the capitalised earnings value method and the asset value method. Due to the applicability of tenancy laws, however, any usable space potential cannot be exploited and therefore the land value is usually applied instead of the actually available useful space.
Other notes on the valuation process
The use of different pricing models and assumptions can lead to different results concerning fair value. Changes in the estimates and assumptions applied in calculating the fair value of assets in those cases in which quoted market prices are not available can make it necessary to adjust the book value of the corresponding assets upwards or downwards and recognise a corresponding expense or income in the income statement.
Certain assets that are not usually measured at fair value on a recurring basis are measured at fair value on a one-time basis if events or changes in circumstances give reason to assume that the book value may no longer be recoverable.
Valuation hierarchies
VIG Insurance Group assigns all financial instruments to one level in the IFRS 13 valuation hierarchy. In line with the decentralised organisational structure of VIG Insurance Group, the individual subsidiaries are responsible for this categorisation. In particular, this approach ensures that local knowledge concerning the quality of individual fair values or any input parameters needed for model-based valuation are taken into account.
The fair values are determined on the basis of the following hierarchy according to IFRS 13:
• The determination of the fair value of financial instruments is generally based on quoted prices for identical assets or liabilities in active markets (Level 1).
• If the financial instrument in question is not listed or if quoted prices in active markets are not available, the fair value is determined on the basis of quoted market prices for similar assets or prices quoted in non-active markets (Level 2). Common valuation models for which the input factors are based on observable market data are used for Level 2. Such models are mainly used for illiquid bonds (present value method) and structured securities.
• The fair values of certain financial instruments, particularly bonds from countries without an active market and real estate, are determined on the basis of valuation models utilising input factors that are mainly not based on observable market data. Such models are mainly used to measure the fair values of transactions in non-active markets, expert opinions, and the structure of cash flows (Level 3).
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The following table shows the methods used and the most important input factors separately for Level 2 and Level 3. The fair values calculated can be used for regular as well as non-recurring measurements.
Pricing method | Used for | Fair value | Input parameters |
Level 2 | Observable | ||
Present value method | Bonds; borrower's note loans; loans; securitised liabilities and subordinated liabilities | Theoretical price | Issuer, sector and rating-dependent yield curves |
Libor market model present value method | Bonds and borrower's note loans with other embedded derivates | Theoretical price | Money market and swap curves; implied volatility surface; cap & floor volatilities; issuer, sector and rating-dependent yield curves |
Present value method | Currency futures contracts | Theoretical price | Exchange rates; money market curves for the currencies concerned |
Present value method | Interest rate/currency swaps | Theoretical price | Exchange rates; money market and swap curves for the currencies concerned |
Level 3 | (Un-)observable input factors | ||
Option pricing models | Stock options | Theoretical price | Share prices on the valuation date; volatilities; yield curve |
Market value method | Real estate | Appraisal value | Real estate-specific income and expense parameters; capitalisation rate; data on comparable transactions |
Discounted cash flow-model | Real estate | Appraisal value | Real estate-specific income and expense parameters; discount rate; indexes |
Multiples approach | Shares | Theoretical price | Company-specific earnings figures; typical industry multipliers |
Discounted cash flow-model | Shares | Theoretical price | Company-specific earnings figures; discount rate |
Share of capital | Shares | Book rate | Company-specific equity according to separate financial statements |
At amortised cost | Fixed income instruments (illiquid bonds, policy loans, loans) with no observable input data for comparable assets | Book rate | Cost-price; redemption price; effective yield |
Reclassifications between valuation hierarchies
Reclassifications between Level 1 and 2 primarily occur if liquidity, trading frequency or trading activity of the particular financial instrument once again, or cease to allow one to conclude that an active market exists. For example, the market maker for a security frequently changes, with a corresponding impact on liquidity. A similar example is when shares are included in (or removed from) an index that acts as a benchmark for many funds. In this case, the classification can also change.
An improvement or deterioration in liquidity or creditworthiness, as well as a change in the availability of valuation rates, leads to a reclassification between Level 1 and Level 3 or between Level 2 and Level 3.
Due to the decentralised organisation of VIG Insurance Group, the subsidiaries review the current validity of the last fair value classification at the end of the period. For example, a reclassification is performed if necessary inputs are no longer directly observable in the market. Any reclassifications are presented as if they had taken place at the start of the period.
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24.10. Consolidated shareholders’ equity
The items share capital and other capital reserves include the amounts paid in to share capital by the shareholders of VIG Holding. The item other capital reserves reports the share of contributions paid that is in excess of the share capital. The reserves are reduced by those external costs directly related to corporate actions affecting equity (after taking tax effects into account).
Retained earnings are the profits that subsidiaries have earned since their affiliation with VIG Insurance Group. These are reduced by the dividends distributed by VIG Holding. Amounts resulting from the changes in the scope of consolidation are also recognised here. If changes are made to accounting policies, the adjustments for earlier periods that are not included in the financial statements are recognised in the opening balance sheet value of retained earnings for the earliest period presented, unless these effects can be clearly allocated to other parts of the consolidated shareholders’ equity.
The item other reserves consists of unrealised gains and losses from the measurement of insurance contracts and financial instruments measured at FVtOCI as well as actuarial gains and losses, which are to be recorded in the statement of comprehensive income in accordance with IAS 19. Furthermore, unrealised gains and losses from the at equity measurement of associated companies, effects from the application of IAS 29 Financial Reporting in Hyperinflationary Economies and the exchange differences resulting from the currency conversion of foreign subsidiaries are reported in the other reserves.
Non-controlling interests are also shown as part of the shareholders’ equity. These include shares held by third parties in the equity of consolidated subsidiaries which are not directly or indirectly wholly owned by VIG Holding.
Details regarding capital management can be found in chapter Capital management starting on page 277.
Share capital and voting rights
The share capital amounts to EUR 132,887,468.20. It is divided into 128,000,000 no-par-value bearer shares with voting rights, with each share representing an equal portion of share capital. The number of shares issued remained unchanged.
The Managing Board is not aware of any restrictions on voting rights or the transfer of shares. Employees who own shares exercise their voting right directly at the Annual General Meeting.
The Managing Board must consist of at least three but no more than eight members. The Supervisory Board has at least three but no more than twelve members (shareholder representatives). The Wiener Städtische Versicherungsverein, which directly and indirectly holds around 72.47% (72.47%) of the share capital, has the right to appoint up to a third of the members of the Supervisory Board if, and as long as, it holds 50% or less of the company’s voting shares. Annual General Meeting resolutions are adopted by a simple majority, unless a different majority is required by law or the Articles of Association.
There are no shares with special rights of control; reference is made to the previous paragraph with regard to the rights of the shareholders of the Wiener Städtische Versicherungsverein.
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At the reporting date, the company is not party to any material agreements which take effect, alter or terminate upon a change of control of the company following a takeover bid, especially none which concern the participations held in insurance companies.
No compensation agreements exist between the company and its Managing Board members, Supervisory Board members or employees covering the case of a public takeover bid.
Anticipatory resolutions
Pursuant to § 169 AktG, the Managing Board is authorised until no later than 20 May 2026 to increase the company’s share capital – also in multiple tranches – by a nominal amount of up to EUR 66,443,734.10 by issuing up to 64,000,000 no-par bearer shares in exchange for cash or non-cash contributions or a combination of both. The Managing Board with the consent of the Supervisory Board decides the content of share rights, the exclusion of pre-emptive subscription rights and the other terms and conditions of share issuance. Preferred shares without voting rights and conveying the same rights as already issued preferred shares may also be issued. The issue prices of common shares and preferred shares can be different.
The Managing Board was authorised by the Annual General Meeting on 21 May 2021 with the consent of the Supervisory Board to issue convertible bonds according to § 174 AktG, which convey the right to exchange or subscribe up to 30,000,000 ordinary bearer shares in the company representing a proportional amount of share capital of up to EUR 31,145,500.36, in a total nominal amount of up to EUR 2,000,000,000.00, also under exclusion of pre-emptive subscription rights, on one or more occasions in the time until 20 May 2026.
Therefore, in accordance with § 159 (2) no. 1 AktG, the share capital has been raised conditionally by up to EUR 31,145,500.36 by issuing up to 30,000,000 ordinary bearer shares in the company. The conditional capital increase will only be conducted insofar as the bearers of the convertible bonds issued on the basis of the resolution of the Annual General Meeting of 21 May 2021 exercise their subscription or exchange rights. To date, the Managing Board has adopted no resolution on the issuance of convertible bonds on the basis of the authorisation granted on 21 May 2021.
Furthermore, the Managing Board was authorised by the Annual General Meeting on 21 May 2021 with the consent of the Supervisory Board to issue participating bonds pursuant to § 174 (2) AktG in the total nominal amount of up to EUR 2,000,000,000.00, also in multiple tranches and also under exclusion of pre-emptive subscription rights, in the time until 20 May 2026. To date, the Managing Board had not adopted a resolution on the issuance of participating bonds on the basis of this authorisation.
The Annual General Meeting authorised the Managing Board on 26 May 2023 to acquire bearer ordinary shares in accordance with § 65 (1) no. 8, (1a) and (1b) AktG to the maximum extent permissible by law during a period of 30 months following the date the Annual General Meeting resolution was adopted. The amount paid upon repurchase of the company’s own shares may not be more than a maximum of 50% below and not more than a maximum of 10% above the average unweighted closing price on the Vienna Stock Exchange on the ten stock exchange trading days preceding the repurchase. The Managing Board may decide to make the purchase via the stock exchange, through a public offer or in any other legally permissible and expedient manner. If the repurchase is performed via a public offer, the end of the calculation period is determined based on the date on which the intention to make a public offer is announced (§ 5 (2) and (3) of the Austrian Takeover Act (Übernahmegesetz)).
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The Annual General Meeting also authorised the Managing Board for a period of five years from the date of the resolution to use acquired own shares while excluding shareholder pre-emption rights
• for servicing convertible bonds issued based on the resolutions adopted by the Annual General Meeting on 21 May 2021; and
• for sales in a manner permitted by law other than via the stock market or by means of a public offer.
The Managing Board has not made use of these authorisations to date.
The Group holds no own shares at the reporting date.
24.11. Provisions
General
Provisions will be recognised if
• a legal or constructive obligation exists to a third party as a result of a past event,
• it is probable that the obligation will result in an outflow of resources and
• a reliable estimate of the extent of the obligation can be made.
Provisions are recognised at the value representing the best possible estimate of the expenditure needed to fulfil the obligation. If the cash value of the provision determined on the basis of prevailing market interest rates differs substantially from the nominal value, the cash value of the obligation is recognised. The item provisions also includes personnel provisions other than the provisions for pensions and similar obligations (e.g. provisions for anniversary benefits).
24.12. Receivables and Liabilities
Receivables
The receivables presented in the balance sheet particularly consist of receivables and other receivables measured in accordance with IFRS 9.
Receivables from policyholders, intermediaries and insurance companies that are recognised directly in the fair value of future cash flows under IFRS 17 are not included in this balance sheet item. Therefore, amounts shown as receivables are not related to the insurance business in accordance with IFRS 17.
Non-insurance receivables are measured at the transaction price. Valuation is based on the underlying transaction, whereby the impairment requirements according to IFRS 9 apply.
VIG Insurance Group applies the option of the simplified approach for trade receivables and receivables from leases in accordance with IFRS 9.5.5.15. In order to fulfil the relevant requirements, an Impairment Provision Matrix is used for receivables, which can be found in Note 2.5. Credit risk starting on page 175.
Liabilities
The liabilities presented in the balance sheet consist of liabilities and other liabilities measured in accordance with IFRS 9.
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Liabilities to policyholders, intermediaries and insurance companies that are recognised directly in the fair value of future cash flows under IFRS 17 are not included in this balance sheet item. Therefore, amounts shown as liabilities are not related to the insurance business in accordance with IFRS 17.
For IFRS 9 measured liabilities, please refer to the statement on financial liabilities in chapter 24.4. Financial instruments starting on page 242. The other liabilities items are measured at AC.
24.13. Taxes
Income tax expenses include current and deferred taxes. When transactions are recognised directly in equity, the corresponding income tax is likewise recognised in equity with no effect on the income statement. The current taxes for the individual companies of VIG Insurance Group are calculated on the basis of the companies’ taxable net income and the tax rate applicable in a given country.
The current taxes also include the new top-up tax introduced as of 31 December 2024 as a result of the implementation of the Pillar Two Global Anti-Base Erosion (GloBE) Rules under the OECD’s international tax reform. The EU directive implementing the GloBE Rules provides that profits from multinational groups of companies or large domestic groups with consolidated sales of at least EUR 750 million will be subject to an effective tax rate of at least 15% in each tax jurisdiction. If the effective minimum tax rate is not met, a top-up tax must be paid. In accordance with IAS 12.4A, potential effects on deferred taxes in connection with global minimum taxation are not taken into account.
Deferred taxes are calculated in accordance with the balance sheet liability method with respect to all temporary differences between the stated values of assets and liabilities in the IFRS consolidated financial statements and the corresponding tax values of the individual companies. In accordance with IAS 12.47, deferred taxes are measured on the basis of the tax rates to be in effect when the differences reverse. The tax benefit that is likely to be realised of accumulated losses carried forward is also included in the calculation. Differences in non-tax-deductible goodwill and deferred tax differences in participations represent exceptions to this general definition of deferred tax liabilities. Deferred tax differences are not recognised if it is not probable that the tax benefit can be recovered.
Group taxation in Austria
A tax group pursuant to § 9 KStG is in effect with the tax group’s parent company Wiener Städtische Versicherungsverein. The tax results of the tax group members are attributed to the tax group’s parent company. Agreements have been concluded between the tax group’s parent company and the individual tax group members to regulate the positive and negative intragroup tax charges for the purpose of apportioning the corporate income tax burden on the basis of causation. If the tax group member generates positive income, 23% (24%) of that positive income is paid to the tax group’s parent company. If the tax group member generates negative income, 20.7% (21.6%) of the group member’s tax loss is paid by the tax group’s parent company. Because the intragroup tax charge is 23% (24%) on positive income, the head of the tax group bears 10% of the tax benefit from group taxation created by the respective group member’s inclusion in the tax group. In terms of cash flow, the tax benefit is neutralised over a period of three years.
Group taxation in Hungary
In 2024, the company groups for tax purposes in Hungary underwent restructuring. This restructuring resulted in two smaller groups being merged into a single group of companies, allowing members to offset their profits/losses and tax credits on a consolidated basis. Led by Alfa, the Hungarian group of companies comprises Hungarian undertakings in assistance and asset management as well as insurance companies, including the former AEGON companies.
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25. New standards not yet applicable and amendments to existing standards
Standard | Short description | Applicable as of* |
Those already adopted by the EU | ||
Amendments to IAS 21 | Restrictions on the convertibility of currencies | 01/01/2025 |
Those which are not or not yet adopted by the EU | ||
IFRS 14 | Regulatory Deferral Accounts | EU decided this standard shall not be transferred into EU law |
Amendments to IFRS 10 and IAS 28 | Sale or contribution of assets between an investor and its associate or joint venture | First-time application deferred for an indefinite period |
IFRS 18 | Presentation and notes in financial statements | 01/01/2027 |
IFRS 19 | Subsidiaries without public accountability: Disclosures | 01/01/2027 |
Amendments to IFRS 7 and IFRS 9 | Classification and measurement of financial instruments | 01/01/2026 |
Diverse IFRS | Annual improvements volume 11: Amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7 | 01/01/2026 |
Amendments to IFRS 7 and IFRS 9 | Contracts Referencing Nature-dependent Electricity | 01/01/2026 |
*Unless otherwise specified, VIG Insurance Group is not planning early adoption of the provisions listed.
The standards listed in the table are not expected to have a material impact or the amendments are not relevant, unless otherwise stated below.
IFRS 18 — Presentation and notes in financial statements
It is expected that the application of IFRS 18 will lead to changes in the presentation in the consolidated financial statements and in the disclosures in the notes. The necessary preparatory work for implementation has already begun.
26. Significant events after the balance sheet date
Significant events up to 25 March 2025 were taken into consideration. On this date, the present Annual Report was authorised for publication by the Managing Board.
PLACEMENT OF TIER 2 SUBORDINATED BONDS AND REDEMPTION OF OUTSTANDING TIER 2 SUBORDINATED BONDS
On 25 March 2025, VIG Holding announced that it would issue a Tier 2 subordinated bond in the amount of EUR 300,000,000.00 as part of a public placement. The subordinated bond has a provisional term of 20 years and VIG Holding can call it for the first time after 10 years. It complies with the Tier 2 requirements according to Solvency II and qualifies as capital in accordance with the requirements of rating agency S&P. The subordinated bonds bear interest at a fixed rate during the first ten years of the term and variable interest after that. Inclusion for trading in the Third Market of the Vienna Stock Exchange is planned.
VIG Holding also announced on 25 March 2025 that it would make an offer of early redemption to the creditors of subordinated bonds 2046 (outstanding volume EUR 214,413,000.00) and 2047 (outstanding volume EUR 200,000,000.00). The deadline for acceptance of the redemption offers is 2 April 2025.
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Risk strategy and risk management
Governance system
Governance refers to all processes involved in the management and in the effective and efficient supervision of the Group. The governance system comprises not only the internal organisation, structure and mechanisms within the insurance group, but also the Group’s legal and factual interaction with the external (market) environment.
The Managing Board of VIG Holding is responsible for complying with the legal regulations applicable to the insurance group and the recognised principles for the proper conduct of business activities.
VIG Insurance Group has instituted an efficient governance system designed to meet its needs and requirements, which enables sound and prudent management. Aside from the establishment of governance functions and other key functions at the level of the insurance group, all other relevant processes have been implemented to ensure the detection, measurement, monitoring, management and reporting of risks, with due regard to the interdependencies between risks.
The internal processes ensure that due consideration is given to the assessments of the governance functions and other key functions, as well as all results of the risk management processes, in the course of conducting business activities.
The governance system is characterised by the following attributes:
• Effective management by the Managing Board,
• Transparent supervision by the Supervisory Board,
• Alignment of management decisions with the goal of long-term value creation,
• Purposive cooperation between corporate management and supervision,
• Appropriate treatment and management of risks,
• Transparent communication within the company and well-functioning reporting paths, and
• Safeguarding the interests of policyholders, shareholders and employees.
General information about the governance system
The governance system encompasses all areas and decision-making committees involved in the risk management processes. It comprises the following elements:
• Key functions and governance functions,
• Eligibility requirements for management staff,
• Risk management system,
• Internal control system and
• Provisions applicable to the outsourcing of functions or activities.
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Risk strategy and objectives
VIG Insurance Group has established clear principles and objectives for managing the risks to which it is exposed. The implementation of these principles and the attainment of the objectives are supported by a defined risk management organisation. The risk strategy of VIG Insurance Group is based on the following Group-wide principles:
Assumed and accepted risks
• All risks directly related to the performance of the insurance business are accepted to a sustainable extent. Such risks comprise underwriting risks, for instance, and to a limited extent, market risks as well.
Conditionally accepted risks
• Operational risks are to be avoided as much as possible. However, they must be accepted to a certain extent because operational risks cannot be completely eliminated or the costs of eliminating these risks would be disproportionate to any potential losses that would arise if the given risk were to materialise.
• Investment is conducted in accordance with the regulatory “prudent person principle”. High-risk investment products may only be held to hedge other market risks.
• Risks arising from financial insurance are to be held only to a limited extent.
Risk minimisation measures
• Risk minimisation is assured in all areas by the ongoing maintenance and promotion of a highly developed level of risk awareness, coupled with the defined risk governance.
• The underwriting provisions of (re)insurance companies are calculated in a prudent manner in order to compensate for undesirable but potential fluctuations.
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• Reinsurance is a crucial instrument for ensuring stable results; it serves to protect against the adverse effects of major losses (tail risks), particularly in non-life insurance lines of business.
• The definition of limits for market risks and investments, considering the feasibility of guarantees and liquidity (asset-liability management), also contributes to risk mitigation.
Not accepted risks
• Risks are not accepted if the expertise or resources required for the given risk are not available or if the capital resources are not sufficient to cover the risk in question.
• Underwriting risks are not accepted if they cannot be measured and if the price cannot be determined. Such risks are particularly found in the fields of genetic engineering and atomic energy for liability insurance.
• No risks are accepted in investment if they contradict the principles of sustainability or if the expertise required to assess these risks appropriately is not available. Such risks include weather derivatives or futures contracts on commodity indices.
ESG risks (environmental, social and governance risks) are recorded in the various risk categories (e.g. market risks, operational risks, etc.). Accordingly, these risks are partially accepted or conditionally accepted, must be mitigated with appropriate measures or are not accepted.
Organisation of the risk management system
The risk management organisation of VIG Insurance Group is integrated into the structural organisation of VIG Holding. Organisational departments of central importance to the risk management system are shown in the graph below.
Managing Board
The full Managing Board bears responsibility for the risk management system and particularly for the following topics:
• Development and promotion of the risk management system,
• Definition and communication of the risk strategy, including risk tolerances and risk appetite,
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• Approval of central risk management guidelines, and
• Consideration of the risk situation in strategic decisions.
Risk Management
The department manager exercises the risk management function prescribed by Solvency II at the Group level and individual level.
The most important tasks of this department include the complete identification, assessment and management of the Group’s risk profile and the solvency calculation. For this purpose, the department provides a Group-wide risk aggregation solution with an extensive reporting system and partial modelling approaches for calculating solvency capital. Other important tasks of this department include the calculation of the solvency capital requirement during the year, the analysis of the risk-bearing capacity using an internally developed analysis tool and the review of the internal control system.
This department also supports the Managing Board in the updating of the central risk strategy, the further development of the risk organisation and other risk management topics.
Internal Audit
The internal audit function required by Solvency II is exercised by the manager of this department. The Internal Audit Department periodically monitors operational and business processes, the internal control system of all operating departments of the company, including compliance with legal requirements, and the effectiveness and appropriateness of risk management.
Compliance (incl. AML)
It coordinates and supports all companies in VIG Insurance Group and their compliance departments in compliance-related matters. The manager of this department also exercises the compliance function required by Solvency II. Thus, the department is particularly responsible for tasks related to the compliance function.
Group Actuarial, Planning & Controlling
The actuarial function required by Solvency II is exercised by the manager of this department. Thus, the department is particularly responsible for the tasks related to the actuarial function. The department also handles actuarial modelling in Prophet for the Group’s life and health insurance business and in ResQ for the Group’s non-life insurance business. The models generate cash flow projections for the purpose of measuring the value of underwriting provisions pursuant to Solvency II and IFRS 17. The department supports the analysis of IFRS 17 reserves, as well as actuarial cooperation and networking within VIG Insurance Group.
The department also coordinates business planning over a 3-year horizon. The standardised reporting system covers the analysis of key ratios and budget-actual variances related to the budgets, forecasts and current performance of VIG Holding and its insurance participations. The department prepares monthly premium reports, quarterly reports for each company (aggregated at the country level and at the level of VIG Insurance Group) and cost reports on a regular basis.
Asset Management (incl. Real Estate)
One of the main tasks of the department is to define the strategic objectives of the capital investments of each individual insurance company and for VIG Insurance Group as a whole, as well as to define the investment strategy and investment process with the goal of ensuring maximum, but also secured, ongoing income while also making use of opportunities to increase the value of the capital investments. Capital investments are managed by means of guidelines and limits. The department also prepares regular reports on capital investments, limits and income.
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Group Finance & Regulatory Reporting
One of the main tasks of this department is to prepare the consolidated financial statements according to IFRS, including reporting in accordance with ESRS in the Group management report, as well as the related regulatory reports. This department is also responsible for supporting the domestic and foreign VIG Insurance Group in all matters of accounting, the preparation of special analysis reports and the reporting of actual performance numbers to the Managing Board, the Supervisory Board and Investor Relations. Other core tasks include matters related to Group Tax & Transfer Pricing, the calculation of own funds of the Group (solvency balance sheet) and the supervision of subsidiary ledgers rolled out to all Group companies and the central general ledger.
Group Treasury & Capital Management
Important tasks of this department include the management of liquidity and the planning and conception of capital raising and capital management measures, including the execution of the company’s own capital market transactions, as well as the management of the portfolio of subordinated capital bonds and other debt instruments.
Process & Project Management
This department works to ensure the clarity, transparency and understanding of business processes so that the individual companies of VIG Insurance Group and their employees can better achieve their goals. To this end, the department provides coordination and support in the three main areas of project management, process management and productivity management.
Reinsurance
This department coordinates and supports all companies of VIG Insurance Group, including their reinsurance departments, in matters related to reinsurance in the non-life insurance lines of business (property insurance, liability insurance and casualty insurance) by issuing and applying guidelines. Additionally, the department administers all Group-wide reinsurance programmes in non-life insurance lines of business. The highest goal is to establish a security network through which all companies of VIG Insurance Group are sustainably protected against the adverse effects of natural disasters, major losses and the negative developments of entire insurance portfolios.
Subsidiaries & Transaction Management
This department is fundamentally responsible for safeguarding the interests of the company with respect to all participations and for providing and processing information about participations and participation projects in a manner suited to the given decision-making situation.
VIG IT
This department is responsible for IT management at the level of VIG Holding. It comprises the departments of Group Information & Cyber Security, Procurement, Architecture & Innovation, International Bank Cooperation Management and IT Strategy & Governance.
Finance and Accounting
One of the department’s main tasks is to prepare the annual financial statements of VIG Holding. The department is therefore responsible for the accounting and balancing of accounts for VIG Holding and for reporting the figures accordingly.
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Risk management processes
The graph below shows the main risk management process, which consists of the process steps described in the following, which are to be repeated on a regular and ad-hoc basis:
Risk identification
Risk identification is the starting point for all subsequent process steps. The purpose of risk identification is to detect, identify and document all potential material risks.
Generally, risk identification takes place on multiple levels: Internal control system, risk inventory, etc. are characterised by clearly defined processes based on guidelines and formalised procedures. Meetings, committees, regularly scheduled meetings and other more or less formalised forms of communication and information exchange are a further source of risk identification. Finally, the activities and expertise of the Risk Management Department represent another component for the identification of relevant new risks.
Risk measurement
After risk identification, the ensuing steps of risk measurement and assessment are essential prerequisites for dealing with risks and making decisions on that basis.
Risks are assessed on a quantitative and/or qualitative basis, depending on the type of risk. In addition to scenario and factor-based approaches, it may also be appropriate to conduct stress tests and internal or external expert assessments, respectively, on the subject of risk measurement.
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Risk control
Based on the risk assessment, both strategic and operational decisions are made in order to deal with the risk appropriately. To do this, different measures and mechanisms must be assessed depending on the change in the risk situation.
The principal risk management processes are:
Planning
The planning horizon is three years, with the annual planning process taking place from summer to mid-November. The planning data are included in the ORSA and form the basis for determining the expected future risk profile.
Risk strategy
The risk strategy is reviewed by the Managing Board on an annual basis and, if necessary, adjusted based on the results from the ORSA. The Risk Management Department assists the Managing Board in this review.
Risk-bearing capacity
Risk management is conducted with due regard to the risk-bearing capacity requirements. Operationally, this entails the need to meet risk budgets, attain key ratios and generally pursue a risk-oriented approach in the sense of a sustainably value-driven strategy in the course of regular business activities.
Asset allocation
The Asset Management Department (including Real Estate) defines the strategic asset allocation for the Group once a year and continuously monitors compliance with it.
Reinsurance programme
The Reinsurance Department coordinates the Group-wide reinsurance programme and manages the annual natural disaster protection renewal process. The Risk Management Department assists the Reinsurance Department both in the validation of applied external natural disaster models and assessment of the efficacy of reinsurance protection using the partial internal non-life model.
Risk monitoring
On the one hand, risk monitoring is the conclusion of the risk management process, but on the other hand it is also the starting point for further analyses and measures in the event that exceptional developments are observed in the risk profile.
The solvency corridor defined at the Group level and the Group-wide limit system applied for purposes of risk-bearing capacity form the basis for the continuous monitoring of the solvency situation of VIG Insurance Group and its subsidiaries.
Compliance with the securities directives and the attainment of key ratios are also reviewed and monitored on an ongoing basis. Liquidity risk is managed and monitored on the basis of a reconciliation of capital investments and insurance obligations. Operational risks, which can be caused by defective internal processes, defective controls, erroneous assessments or defective models, are likewise subjected to constant monitoring within the scope of the internal control system.
Risk reporting
The risk management function is responsible for risk reporting. Risk reporting includes both regular and ad-hoc reports. While the regular reports are prepared as part of the standard processes, ad-hoc reports are prepared if risks occur suddenly or unexpectedly. The ORSA report summarises the key results of all risk management processes and reports.
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Risk profile
The risk profile of VIG Insurance Group is sub-divided into ten principal risk categories, which are presented and described in the following:
• Life insurance underwriting risk
• Non-life insurance underwriting risk
• Health insurance underwriting risk
• Market risk
• Credit risk / counterparty default risk
• Operational risk
• Liquidity risk
• Strategic risk
• Reputation risk and
• Risk from intangible assets
The risks in the individual categories of the risk profile are assessed on a quantitative and/or qualitative basis. Quantitative assessment is performed on the basis of the uniform calculation approach prescribed by Solvency II (standard formula) only in those areas in which a preceding appropriateness review has confirmed the validity of the standard method.
The standard formula substantially overestimates the risk of VIG Insurance Group in the non-life and property/real estate areas (as part of market risks). Therefore, the solvency capital requirement for these areas is calculated on the basis of a partial internal model (PIM), which has been approved by the FMA.
The partial internal model for non-life (ariSE) is applied for companies in the countries of Austria (VIG Holding, Wiener Städtische, Donau Versicherung), Czech Republic (Kooperativa, ČPP, VIG Re), Slovakia (Kooperativa, Komunálna), Poland (Compensa, InterRisk) and Romania (Omniasig, Asirom). The partial internal model for property/real estate is used in all Austrian companies of VIG Insurance Group (VIG Holding, Wiener Städtische, Donau Versicherung).
The data are consolidated in accordance with Method 1 of the EC Directive 2009/138/EC.
Implementation of the prudent person principle
Solvency II in general and the prudent person principle in particular demand more self-responsibility for prudent capital investment on the part of companies. Therefore, VIG Insurance Group has always pursued a conservative approach in its investment activities. The regulatory requirements confirm the business policy applied by the Group.
Assessing the risks of investments in a constantly changing regulatory environment requires a high degree of expertise within the individual companies and VIG Holding as the central management entity. To meet the requirement, it is essential that the Group has appropriately trained employees and the necessary professional infrastructure. VIG Insurance Group explicitly accepts these requirements and fulfils them by implementing a uniform software programme for the purpose of administration and risk assessment of the main capital investment portfolios.
Key principles of business prudence are defined in the internal corporate guidelines, which apply to all insurance companies of VIG Insurance Group.
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Capital investment is embedded in a multi-step process. The overriding goal of capital investment is to permanently ensure fulfilment of the Group’s insurance obligations. On this basis, due consideration is given to the requirements of the Group’s liabilities.
Life insurance underwriting risk
Besides demographic risks, life insurance underwriting risk also includes the adverse effects of changed cancellation behaviour and cost risks. It comprises the sub-modules of mortality, longevity, disability, costs, amendment and cancellation, as well as disaster risk.
Risk minimisation
To minimise cancellation risk, VIG Insurance Group maintains an effective complaint management programme, qualified advisors and customer retention programmes to enhance customer satisfaction and prevent cancellations. The cancellation behaviour of policyholders is constantly monitored so that targeted measures can be implemented in reaction to unfavourable developments.
Costs are analysed on a regular basis and taken into consideration in the product design process. In the Austrian companies, moreover, insurance contracts are protected against inflation by means of index adjustments.
Many customers decide also to purchase term life insurance when they purchase pension insurance. This lessens the longevity risk associated with pension insurance contracts.
To reduce mortality risks, it is constantly monitored and safety margins are factored into the premiums. For large insured sums, the insured persons undergo medical exams and the insurance benefit is reinsured. In addition, demographic developments suggest that mortality is likely to decline in the medium to long term.
Additionally, in life insurance various reinsurance contracts are in effect which generally contribute to risk minimisation. Details on the subject of reinsurance are provided in the chapter of the same name beginning on page 275.
Non-life insurance underwriting risk
Non-life insurance underwriting risk is the risk that insured losses and costs will be higher than income. It is mainly composed of the following components:
• Risk from extreme loss events, particularly natural disasters,
• Risk from unprofitable contracts due to inadequate premium pricing,
• Risk from loss events that have already occurred, but are not sufficiently known or provisioned,
• Cancellation risk (decrease in the contribution margin due to a sharp drop in insurance contracts in force), and
• Cost risk.
Risk minimisation
VIG Insurance Group has been pursuing a conservative reinsurance concept for years and sees the transfer of risk through reinsurance in the non-life sector, in particular in the area of natural disasters, as a significant risk mitigation technique for protecting against major and catastrophe events as well as any fluctuations in the balance sheet results. The reinsurance strategy is characterised by a conservative retention policy and the targeted selection and accompanying review of reinsurers. The companies of VIG Insurance Group must adhere to a safe list defined by the Reinsurance Security Committee. Reinsurers that are not included on this list require individual permission by the Reinsurance Security Committee.
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In addition, risk is also reduced in the area of reinsurance through diversification measures.
Details on the subject of reinsurance are provided in the chapter of the same name beginning on page 275.
Underwriting risk of health insurance, including casualty insurance
Health insurance underwriting risk is sub-divided by type of non-life insurance and by type of life insurance, depending on the contract design. Health insurance underwriting risk by type of non-life insurance is calculated in accordance with the partial internal model because the assumptions applied in the standard formula do not appropriately reflect the risk profile of VIG Insurance Group in the area of non-life insurance. The risk by type of life insurance and disaster risk in health insurance is calculated in accordance with the standard formula.
Health insurance by type of life insurance
The underwriting risk of health insurance by type of life insurance basically comprises the classic life insurance underwriting risks. With respect to the risk exposure of VIG Insurance Group, cancellation risk makes the greatest contribution to the capital requirement, but disability/morbidity risk and cost risk are also important.
Health insurance by type of non-life insurance
Health insurance underwriting risk by type of non-life insurance corresponds to casualty insurance and comprises the classic non-life insurance underwriting risks. Casualty risk is assessed as being comparatively low. For example, losses can arise from a large number of deaths and injuries, but they are adequately reinsured.
Natural disaster risk in health insurance
Three different disaster scenarios are considered for disaster risk in health insurance: mass casualty accidents, accident concentration and pandemic. This risk is adequately reinsured and of subordinate importance due to the low level of materiality.
Risk minimisation
Extensive underwriting guidelines (criteria for the assumption of risks) have been implemented to minimise the health insurance underwriting risk by type of life insurance.
Health insurance underwriting risk by type of non-life insurance is lessened by transfer to reinsurance. In selecting reinsurers, subsidiaries must adhere to a safe list defined by the Reinsurance Security Committee. A reinsurer that does not appear on this list may only be selected after individual permission by the Reinsurance Security Committee.
Details on the subject of reinsurance are provided in the chapter of the same name beginning on page 275.
Market risk
Market risk refers to the risk of losses due to market price changes. Fluctuations of interest rates, share prices and exchange rates, as well as changes in the market value of real estate and participations, can adversely affect the value of investments and liabilities.
Risk minimisation
Significant measures to lessen market risk include the diversification of assets and the existing limit system for capital investments at the level of the individual companies. Asset diversification reduces the risk of an adverse market development
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of an individual asset or class of assets. The limit structure prescribed for Asset Management by the Managing Board defines the maximum investment volumes per asset class. For more information on this subject, please refer to the remarks on the subject of the prudent person principle on page 268.
The desired diversification for the overall Group is additionally given by the fact that the operating companies operate with different products in different markets. Furthermore, care is taken to ensure that the portfolios within the individual companies are appropriately diversified.
Credit risk / counterparty default risk
Counterparty default risk is the risk of a loss or detrimental change in value of assets and financial instruments arising from an unexpected default of a counterparty or debtor. Credit risk is present both in capital investments such as bonds, loans and deposits and fundamentally also in other receivables and cash deposits in banks.
Risk minimisation
VIG Insurance Group has implemented suitable procedures and controls to reduce the risk from receivables due from counterparties. Besides monitoring the ratings of banks and reinsurers and formulating internal bank ratings, such procedures and controls also include measures such as a well-aligned reinsurance programme, cooperation with prestigious brokers in key account business, a large number of sales partners, and Group-wide transfer pricing and underwriting guidelines. Also in relation to policyholders, the Group employs a large number of measures to limit counterparty default risk, including payment reminders, cooperation with collection agencies and contract termination upon payment default. Furthermore, insurance protection is usually terminated or reduced if premium payments are not made.
Liquidity risk
The liquidity risk is the risk arising from the lack of marketability of investments in order to meet current short-term or long-term obligations. This includes, for example, losses arising due to asset-liability mismatches.
Risk minimisation
To minimise the liquidity risk, investments and liabilities are regularly analysed within the scope of the Liquidity Committee and the Asset Liability Management Committee of VIG Holding. Together with clear investment specifications (limit systems) and a conservative investment policy, this kind of analysis contributes to the appropriate management of liquidity risk.
The Group Treasury & Capital Management Department monitors cash flows on an ongoing basis and reports monthly on liquidity developments within the scope of the Liquidity Committee.
Additional details on the subject of liquidity management can be found on page 277.
Operational risk
Operational risk describes the risk of losses related to business operations. Such losses are caused by defective internal processes, defective controls, erroneous assessments or defective models. Examples of operational risks are fraud by third parties, the failure of IT systems or human error.
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Risk minimisation
For monitoring operational risks, VIG Insurance Group maintains an adequate internal control system (ICS), which helps to lessen existing risks and ensures ongoing monitoring of risks.
Strategic risk
The strategic risk includes, among other things, adverse business development as a result of incorrect business and investment decisions, poor communication and implementation of corporate objectives or a lack of adaptability of the company to the economic environment. Furthermore, conflicting business objectives are also a strategic risk.
Risk minimisation
The clear communication of corporate objectives ensures that business decisions that have been made are implemented throughout the Group. The placement of Managing Board members and executives of the second management level on the supervisory boards of the subsidiaries ensures that Group objectives are implemented locally. The pursuit of a multi-branding strategy coupled with the high degree of autonomy of the local companies ensures that strategic risk is diversified.
Reputation risk
Reputation risk is the risk of negative changes in business due to damage to a company’s reputation. Reputation damage can undermine the trust that customers, investors or the company’s own employees place in the company and can therefore also lead to financial losses. Possible causes of reputation damage include lack of advice when selling products, lack of customer service, the provision of false information to investors, negative reports in the media particularly in connection with sustainability or other non-financial risks or reputation damage that spills from one company to another.
Risk minimisation
In the process of recruiting new employees, careful attention is already given to their integrity and personal reliability. Employees working in sales or representative activities in particular are supported by special training measures. Moreover, the Code of Business Ethics sets out clear rules of conduct to be observed by all employees. Other risk-lessening measures besides employee-driven measures include investments in advertising to acquire new customers and retain existing customers in the long term, professional complaints management to address customers’ concerns and strong social and cultural engagement (e.g. Social Active Day, promotion of social events, sponsoring of art and culture).
In addition, the Investor Relations and CO³ Departments are responsible for clear external communication in order to provide information to investors and comments on media reports.
Risk from intangible assets
The risk from intangible assets refers to the risk of a loss or detrimental changes in the value of intangible assets.
Risk minimisation
The recoverability of intangible assets is regularly tested. No further risk minimisation measures are needed.
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Other Notes
Handling of sustainability risks
Sustainability risks are risks to which the company is exposed (outside-in perspective), as well as any risks arising from the business activity of VIG that could potentially have adverse effects on society or the environment (inside-out perspective). Such risks have always been taken into account implicitly or even explicitly in some cases within the scope of risk management.
To ensure a structured approach to the identification of sustainability risks in the Group and appropriately account for both perspectives, a Group-wide risk catalogue with explicit reference to sustainability risks has additionally been prepared in observance of the Guide to Handling Sustainability Risks published by the Austrian Financial Market Authority. The ESG-specific risk catalogue includes at least those risks that were identified as material risks as part of the consolidated double materiality assessment according to the ESRS (European Sustainability Reporting Standards). Furthermore, each of the identified risks that has an impact on VIG is assigned to a specific VIG risk category.
The VIG (re)insurance companies and—this year for the first time—the pension funds and asset management companies regularly review this risk catalogue for completeness as part of a standardised risk management process (“risk inventory”) and supplement it if necessary. All VIG companies mentioned must evaluate the defined or newly added risks on a qualitative basis with regard to the risk and further development and describe any mitigation measures.
In the reporting year, the relevant sustainability risks were also identified and assessed at the VIG companies mentioned and at the level of the insurance group. Compared to the previous year, the number of identified risks has increased significantly. This increase is mainly due to the integration of the pension funds and asset management companies as well as to the continuing increase in awareness of the issue of sustainability in general. Overall, the analysis showed that VIG’s sustainability risks are mostly on a low to medium level at the present time.
Regulatory conditions
VIG is subject to domestic and foreign (insurance) supervisory regulations. These regulations govern such matters as:
• Own funds of insurance companies and insurance groups,
• Admissibility of investments for the purpose of protecting underwriting provisions,
• Concessions of the different pension funds, insurance and asset management companies of VIG Insurance Group,
• Marketing activities and sales of insurance contracts, and
• Cancellation rights of policyholders.
Changes in the legal framework conditions could necessitate restructuring and thereby cause higher costs and duplicity. Different or subsequently different interpretations of legal texts or contradictory requirements can also lead to increased organisational effort and thus higher costs.
Concentration risk
Risk of concentration comprises those risks that are caused either by inadequate diversification of the investment portfolio or by heightened exposure to the default risks of individual issuers or group of affiliated issuers of securities.
A risk of concentration exists as part of the strategic partnership with the Erste Group, which is consciously accepted by VIG Insurance Group. The exposure is regularly assessed and monitored by means of the established risk management processes.
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Risks from mergers and acquisitions
In the past, VIG Holding has directly or indirectly acquired a number of companies in Central and Eastern Europe or participated in them. Mergers of subsidiaries are considered when the synergy effects achieved are greater than the advantages of a diversified market presence.
Mergers and acquisitions often entail challenges with respect to corporate governance, organisation, processes and financing. Such challenges include:
• The need to integrate the infrastructure of the acquired company or company to be merged, including management information systems, risk management systems and controlling systems,
• The resolution of outstanding legal or regulatory issues and the related legal and compliance risks arising from the merger or acquisition,
• The integration of marketing, customer service and product offerings,
• The integration of different corporate and management cultures, and
• The coordination of business and reporting processes and the consideration of Group-wide requirements.
Climate risks
Global warming is causing more extreme weather events. That presents additional challenges for insurance companies that protect their customers from the financial consequences of damage caused by natural hazards. VIG has therefore increased its knowledge of this subject considerably in the last few years. It conducts scenario analyses to gain an idea of how climate change will affect claims development and therefore the insurance business. Regular internal risk analyses are also carried out on the medium and long-term effects of climate change. The analyses related to the consequences of global warming also pertain to transition risks, which are assessed primarily on a qualitative basis, and physical risks, which are additionally subjected to detailed quantitative analysis (see the table on page 275).
• Transition risks refer to the risks arising as a result of the transition to a climate-neutral and resilient economy and society and could lead to a devaluation of assets, including changes in the political and legal framework of the real economy (e.g. introduction of a CO² tax), technological developments (e.g. renewable energy, energy storage) and changes in consumer behaviour.
• Physical risks of climate change arise directly from the consequences of climate changes, such as an increase in the global average temperature and the associated occurrence of more frequent and more intensive natural disasters and extreme weather events such as floods, heat waves and droughts, storms and hail.
Internal and external experts working together assess the probabilities of natural disasters and calculate the possible effects in all key markets of VIG. They analyse scenarios involving three different temperature rises (1.5 degrees, 2.0 degrees and 3.0 degrees Celsius). The risk models applied are continually improved on the basis of new data, facts and insights such as the latest scientific studies or newly constructed flood protection measures, for example.
The scenario analyses show that flooding in particular is a significant risk for the activities of VIG. Besides the higher losses caused by flooding, damage can be expected from stronger hailstorms and summer storms. Whereas hail damage also has a significant effect on motor own damage insurance, flood damage affects the other property insurance lines of business to a greater degree. The underwriting expertise it has acquired helps VIG purchase the optimal reinsurance for assumed risks, among other things.
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The table shows which natural hazards are relevant for VIG and which are influenced by climate change from a scientific standpoint:
Due to global warming, the prevention of damage caused by natural hazards in the underwriting process is becoming increasingly important. The management process for corporate customers and key accounts begins with a careful analysis of the natural hazard situation by the VIG partner company Risk Consult. Risks can be assessed with the aid of the latest natural hazard models together with information about the circumstances on location (e.g. protective measures that have already been implemented). On this basis, the experts of Risk Consult develop customised recommendations to improve the risk situation further and prevent damage. Insurance terms and conditions are derived from precisely this risk situation and in many cases the implementation of the proposed measures is the precondition for insuring the risks in question. Risk Consult analyses around 2,000 business establishments for VIG every year, thereby making an important contribution to making the economy more resilient against natural hazards.
All known climate risks have been included in the measurement of assets and liabilities in the present consolidated financial statements. In this context, reference is made to the storm and weather damage that occurred in the past financial year, which was taken into account in the balance sheet and income statement.
Reinsurance
VIG Insurance Group limits its potential liability from its insurance activities, where necessary by transferring a portion of assumed risks to the international reinsurance market. Risks of the insurance companies are reinsured within VIG Insurance Group to some extent and are then transferred to external reinsurers.
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Reinsurance Guideline
The Reinsurance Guideline is drafted every year anew by the central Reinsurance Department in cooperation with the Managing Board member responsible for reinsurance during the development of the reinsurance strategy for the next financial year. It imposes the obligation on every insurance company to design appropriate reinsurance coverage for their local company in consultation with the Corporate Reinsurance Department. The Reinsurance Guideline governs the following points.
Reinsurance is the prerequisite for granting insurance protection
Specialised departments may only grant a binding promise to insure any risk over a certain limit if adequate reinsurance has already been assured.
Retentions
VIG Insurance Group generally takes a conservative approach to the conclusion of reinsurance in order to protect shareholders’ equity from the adverse effects of underwriting risks. Obligatory reinsurance is designed such that the net retention does not exceed a certain proportion of the shareholder’s equity of the company’s non-life insurance business in accordance with local accounting principles.
In addition to the aforementioned aspects, the influence of the reinsurance structure and the retention on the net profit of the VIG company is measured when designing a reinsurance program in order to reduce the volatility of the insurance results and to stabilise the net combined ratio.
Selection of reinsurers: Diversification
VIG Holding and its subsidiaries spread their reinsurance protection among a large number of different international reinsurance companies, which have adequate creditworthiness in the opinion of VIG Holding to minimise the risk of insolvency on the part of a reinsurer (credit risk). The monetary limit per reinsurer is individually specified for each subsidiary.
Selection of reinsurers: Rating
For those lines of business in which claims are settled on a long-term basis, especially motor third party liability insurance, general third party liability insurance and aviation insurance, VIG Insurance Group uses reinsurers with excellent ratings (at least Standard & Poor’s rating “A”, preferred “AA” or higher rating), that can be expected to remain in business over the long term with a high degree of probability. For lines of business in which claims must be settled quickly (e.g. natural disasters, fire, engineering, transport, storm, burglary, household, water damage, motor own damage), in which the number of reinsurers is greater, the preferred Standard & Poor’s rating is “A” or higher. Reinsurers with lower ratings are only accepted in a few isolated cases for a limited period of time.
Design of reinsurance programmes
If economically justifiable, reinsurance coverage may be purchased from external reinsurers by each subsidiary individually. If individual reinsurance contracts can be purchased by each subsidiary only at uneconomical terms, VIG Insurance Group will seek a joint placement of reinsurance contracts as much as possible to cover risks from the coverage of natural catastrophes, property lines of business, casualty, transport, aviation and motor liability. Internal reinsurance assumptions within the Group are also transferred to the reinsurance market by retrocession when necessary for risk diversification purposes.
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Liquidity management
VIG Insurance Group manages its liquidity on the basis of guidelines resolved by the Managing Board of VIG Holding. Liquidity planning is basically the responsibility of every subsidiary and VIG Holding itself. VIG Holding as the parent company handles the allocation of capital for the entire VIG Insurance Group. This ensures the efficient distribution of capital within VIG Insurance Group. It also enables VIG Holding to ensure that the targeted liquidity and equity resources are available both at the level of VIG Insurance Group and at the level of the individual operating entities.
The greater part of liquid funds for ongoing business activity derives from premium income from primary insurance and from ongoing investment income and proceeds from the sale of investments. On the cost side, expenses are incurred for claim payments in property and casualty insurance and benefit payments in life and health insurance. The remaining balance of liquid funds is used to pay insurance acquisition costs and operating expenses.
The maturity structure of the insurance business provides a natural liquidity cushion. In contrast to the collection of premiums, VIG Insurance Group grants insurance coverage for a certain period during which there are no direct cash outflows until the occurrence of an insured event. This liquidity cushion is invested during this time to generate investment income. Some of these funds are kept in liquid assets to allow for rapid conversion into cash to pay claims. In addition, the bond portfolio in particular is structured in such a way that it will mature at a time when the corresponding funds are expected to be needed. External factors such as the performance of capital markets and the level of interest rates influence the liquidity situation insofar as they either favour or restrict the ability to sell the investment portfolio at market value.
The time, frequency and size of insured claims are also important for the liquidity situation of property and casualty insurance. The number of insurance contract renewals also plays a role.
The liquidity requirement of life insurance is generally influenced by the development of actual mortality in comparison with the assumptions on which the underwriting provisions are based. Market returns or minimum interest rates and the behaviour of life insurance customers, such as the number of policies surrendered or terminated, also have an effect on liquidity needs.
Capital management
In the interest of our shareholders and insurance customers, it is our goal that VIG Holding be adequately capitalised at all times and that all the operating insurance companies at least fulfil their respective regulatory capital requirements. VIG Holding is historically a very well capitalised company by virtue of its successful business strategy. Preserving this good capital strength is especially important to us so that we can seize profitable growth opportunities and absorb even large loss or damage events and high capital market volatilities.
Standard & Poor’s rating
VIG Holding also attaches particular importance to maintaining a permanently strong credit rating from the rating agency Standard & Poor’s (S&P), therefore it regularly undergoes the S&P assessment. S&P uses its own capital model to assess the relationship between the required risk capital and the available capital base of an enterprise. The criteria underlying the capital model were updated by S&P at the end of 2023. VIG maintains a capital buffer under the revised criteria, even in an extreme stress scenario, and with the highest confidence level of 99.99%. S&P confirmed the “A+” rating, combined with a “stable” outlook, in November 2024.
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The subordinated bonds issued in 2015 (EUR 214.4 million Tier 2 outstanding, first call date 2 March 2026), in 2017 (EUR 200 million Tier 2, first call date 13 April 2027) and in 2022 (EUR 500 million Tier 2, first call date 15 June 2032) are rated “A-” by S&P. The senior subordinated bond issued in 2021 (EUR 500 million, 15-year term, repayable at maturity) is rated “A” by S&P, not creditable for S&P.
Active capital management
VIG Holding monitors its capital position on the basis of the criteria listed above and implements appropriate measures to further improve the capital structure and permanently strengthen the company’s capital and solvency position. VIG Holding has set itself the goal of keeping the solvency ratio at least at the current level in all insurance companies of the Group, despite the targeted growth. At the Solvency II Group level, VIG Holding has defined a solvency corridor of 150% to 200% of the solvency ratio, this range having been specified without claiming the transitional rules for underwriting reserves claimed by the individual group companies.
The main focus of capital management is on subordinated long-term liabilities with an equity character. The Group Treasury & Capital Management Department constantly observes the developments in the capital markets, paying particular attention to the development of bonds with an equity character in the European insurance sector. New capital instruments developed for insurance companies in the capital market are reviewed to see if they can be used for VIG Holding.
Equity base
As of 31 December 2024, share capital of EUR 132,887,468.20 was registered in the commercial register, divided into 128,000,000 no-par value bearer ordinary shares with voting rights. VIG Holding held no own shares on 31 December 2024 (31 December 2023: none). In addition, VIG Holding can, according to the authorisation by the shareholders, increase its shareholders’ equity by issuing common or preferred shares. The individual authorisations are listed in Note 24.10. Consolidated shareholders’ equity from page 256 onward.
As of 31 December 2024, the solvency ratio of VIG Insurance Group as defined by Solvency II was 260.74% (31 December 2023: 268.90%).
Long-term debt financing
VIG Insurance Group had outstanding subordinated bonds with differing maturities as of 31 December 2024. Detailed information on the bonds programme of VIG Insurance Group is provided in Note 8.2. Subordinated liabilities starting on page 187. The maturity structure shows that VIG Insurance Group places an emphasis on subordinated liabilities, which are creditable as equity. General conditions in the capital markets and other circumstances that are affecting either the financial services sector as a whole or VIG Insurance Group in particular could have a detrimental effect on funding costs and the availability of debt capital. The goal, therefore, is to actively manage the capital structure to keep refinancing risks as low as possible.
The Solvency II regime contains a number of measures to ensure a smooth transition from the Solvency I framework. In particular, hybrid own-fund items issued under Solvency l were grandfathered for ten years to allow the capital composition to be adapted to the Solvency lI standard. Such instruments will lose their risk-bearing capacity after this transitional period, by 31 December 2025 at the latest.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
279
Transparency and stakeholder trust are important to us.
Observance of and compliance with the provisions of the
Austrian Code of Corporate Governance therefore play an
important role.
The Austrian Code of Corporate Governance was intro-
duced in 2002 and is regularly updated according to legis-
lation and current trends. It is the standard for proper cor-
porate governance and control in Austria. Provisions of the
Code contribute to strengthening the trust in the Austrian
capital market. The reports that companies are required to
publish on compliance with these provisions require a high
level of transparency.
VIG Holding is committed to complying with the Austrian
Code of Corporate Governance. § 243c UGB and § 267b
UGB (Consolidated Corporate Governance Report) were
also applied when preparing this consolidated Corporate
Governance Report. The Austrian Code of Corporate Gov-
ernance is available to the public both on the VIG Insurance
Group website at group.vig/en/corporate-governance and
the website of the Austrian Working Group for Corporate
Governance at www.corporate-governance.at.
VIG Holding sees corporate governance as a continuously
changing process that responds to new conditions and cur-
rent trends for the benefit of the Group and its stakeholders.
The goal of all corporate governance measures is to ensure
responsible corporate management aimed at long-term
growth while simultaneously maintaining effective corporate
control. The Managing Board, Supervisory Board and em-
ployees consider observance of and compliance with the
rules of the Austrian Code of Corporate Governance to be
highly important for the practical implementation of corpor-
ate governance. All information concerning the composition
and work procedures of the Managing Board and the Super-
visory Board is presented below.
The rules of the Austrian Code of Corporate Governance
are divided into the following three categories:
• Rules based on mandatory legal requirements (“Legal
Requirements”)
• Rules that must be observed. Non-compliance with these
rules must be declared and explained in order to comply
with the Code (“Comply or Explain”)
• Non-compliance with rules which are merely
recommendations does not need to be disclosed or
explained (“Recommendations”)
VIG Holding complies with the C-rules of the Austrian Code
of Corporate Governance with the following exception. Ac-
cording to C-Rule 52a of the Austrian Code of Corporate
Governance, the number of members on the Supervisory
Board (without employee representatives) shall be ten at
most. In 2024, the Supervisory Board of VIG Holding con-
sisted of twelve members elected by the Annual General
Meeting. The number of members on the Supervisory
Board is due to the fact that the Company operates over
50 insurance companies and pension funds in 30 countries.
This makes it possible to include additional expertise with
respect to the internationality and further growth of VIG
Group, including in response to increasing regulatory re-
quirements. The decision was taken by the Supervisory
Board and the Annual General Meeting in 2021.
The Group’s scope of consolidation also includes capital
market-oriented subsidiaries that are required by the legal
systems applicable to them to prepare and publish a
corporate governance report. These include: Ray Sigorta
(Türkiye) and Makedonija Osiguruvanje (North Macedonia).
The corporate governance reports are available on the
company websites:
– https://www.insumak.mk/about-us/reports/?lang=en
(as an integral part of the annual report).
– https://www.raysigorta.com.tr/en/about-us/investor-
relations (“Reports” tab -> Corporate Governance Com-
pliance Reports).
Reference is made to the information in this regard.
The shareholder structure of VIG Holding can be viewed at
the following link: group.vig/shareholderstructure.
MEMBERS OF THE MANAGING BOARD AND THEIR
RESPONSIBILITIES
The VIG Holding Managing Board had the following seven
members as of 31 December 2024: Hartwig Löger (General
Manager (CEO), Chairman of the Managing Board), Peter
Höfinger (Deputy General Manager, Deputy Chairman of the
Managing Board), Liane Hirner (CFRO), Gerhard Lahner
(COO), Gábor Lehel (CIO), Harald Riener and Christoph Rath
(Deputy Member of the Managing Board). Further information
on the members of the Managing Board, including their
employment history, is presented below:
Corporate Governance Report
280
Annual Financial Report 2024
Hartwig Löger
General Manager (CEO), Chairman
of the Managing Board
Year of birth: 1965
Date first appointed: 01/01/2021
End of current term of office:
30 June 2027
Hartwig Löger
began his career in the insurance industry in the brokerage business in 1985.
After completing his studies in insurance management at the Vienna University of Econom-
ics and Business, he joined Allianz as sales manager in Styria in 1989. From 1997 to 2002,
he was head of sales at Donau Versicherung. This was followed by a number of senior
management positions in the UNIQA Group, most recently as CEO of UNIQA Österreich
AG until the end of November 2017. Hartwig Löger was the Minister of Finance for Austria
from December 2017 to June 2019. He worked for VIG Group under an advisory agre-
ement with Wiener Städtische Versicherungsverein, the principal shareholder of VIG
Holding, from July 2019 to December 2020.
Areas of responsibility:
Leading VIG Group, Strategy, General Secretariat & Legal, Opportunity
Management, Human Resources, CO
3
Country responsibilities:
Austria, Slovakia, Czech Republic, Hungary
Peter Höfinger
Deputy General Manager, Deputy
Chairman of the Managing Board
Year of birth: 1971
Date
first appointed: 01/01/2009
End of current term of office:
30
June 2027
Peter Höfinger
studied law at the University of Vienna and University of Louvain-la-Neuve
(Belgium). Peter Höfinger has been a member of the VIG Holding Managing Board since
1 January 2009. Prior to that, he was a director of the Managing Board at Donau Versicherung,
responsible for sales and marketing. He joined this company in 2003. Previously, he held
positions as managing board chairman and managing board member outside the Group
in Hungary, the Czech Republic and Poland.
Areas of responsibility:
Corporate Business, Reinsurance, European Affairs, Sponsoring
Country responsibilities:
Bulgaria, Moldova, Romania
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
281
Liane Hirner, CFRO
Year of birth: 1968
Date first appointed:
01/02/2018
End of current term of office:
30
June 2027
Liane Hirner
studied business administration in Graz. Before joining VIG Insurance Group,
she worked at PwC Austria’s audit department where she started in 1993, and when she
left, Liane Hirner was partner in the insurance area. In addition to her work as an auditor,
Liane Hirner has also been involved in many professional associations, such as the IFRS
Working Group of the Austrian Insurance Association and the Insurance Working Party of
Accountancy Europe in Brussels. Liane Hirner was appointed to the VIG Holding Managing
Board on 1 February 2018. On 1 July 2018, she took over the role of Chief Financial Officer
and on 1 January 2020, she additionally assumed the role of Chief Risk Officer. In 2019,
EIOPA appointed Liane Hirner as a member of the Insurance & Reinsurance Stakeholder
Group (IRSG).
Areas of responsibility:
Group Finance & Regulatory Reporting, Group Actuarial, Planning
and Controlling, Risk Management, Tax Reporting & Transfer Pricing, Subsidiaries and
Transaction Management
Country responsibilities:
Germany, Liechtenstein
Supervisory board positions or comparable positions in other Austrian and foreign
companies outside the Group:
Autoneum Holding AG – Winterthur, Switzerland
Gerhard Lahner, COO
Year of birth: 1977
Date first appointed: 01/01/2020
End of current term of office:
30
June 2027
Gerhard Lahner
studied business administration at the Vienna University of Economics and
Business and has held a variety of positions for VIG Insurance Group since 2002. He was
a member of the Managing Boards of Austrian insurance companies Donau Versicherung
and Wiener Städtische and Czech companies Kooperativa and ČPP. Gerhard Lahner was
also a substitute member of the VIG Holding Managing Board from 1 January 2019 to
31 December 2019.
Areas of responsibility:
Asset Management (incl. Real Estate), Group Treasury & Capital
Management, Process & Project Management, VIG IT
Country responsibilities
: Georgia, Türkiye
Supervisory board positions or comparable positions in other Austrian and foreign
companies outside the Group:
Wiener Börse AG
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Gábor Lehel, CIO
Year of
birth: 1977
Date first appointed: 01/01/2020
End of current term of office:
30
June 2027
Gábor Lehel
studied business administration with a major in finance in Tatabánya and
Budapest (Hungary). He joined VIG Insurance Group in 2003, where he worked in
Controlling and as head of the General Secretariat at VIG Holding before being appointed
to the Managing Board of the Hungarian insurance company UNION Biztosító in 2008. He
was General Manager of UNION Biztosító from mid-2011 to 31 December 2019. From
1 January 2016 to 31 December 2019, he was also a substitute member of the VIG
Holding Managing Board.
Areas of responsibility:
Assistance, Data & Analytics, Transformation & New Business
Country responsibilities:
Belarus
Harald Riener
Year of birth: 1969
Date first appointed: 01/01/2020
End of current term of office:
30 June 2027
Harald Riener
studied social and economic sciences at the Vienna University of Economics
and Business and joined VIG Insurance Group in 1998, where he worked in the marketing
area for Donau Versicherung and Wiener Städtische until 2001. After working for a media
publishing company, he returned to the Group in 2006 as Marketing Manager of VIG
Holding. He became a member of the Managing Board in Croatia in 2010, and was
appointed CEO in 2012. From 2014 to 2019, Harald Riener was a member of the Managing
Board of Donau Versicherung where he was responsible for distribution and marketing.
Areas of responsibility:
Retail Insurance & Business Support, Customer Experience
Country responsibilities:
Estonia, Latvia, Lithuania, Poland, Ukraine
Supervisory board positions or comparable positions in other Austrian and foreign
companies outside the Group:
VIG/C-QUADRAT
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Christoph Rath
Deputy Member of the Managing
Board
Year of birth: 1976
Date first appointed: 01/09/2024
End of current term of office:
30
June 2027
Christoph Rath
studied banking and finance at the University of Applied Sciences BFI Vienna
and joined VIG Insurance Group in 2004, where he initially worked as an advisor of the
Managing Board of Wiener Städtische Versicherung from 2004 until 2006 and as the
General Secretary of Wiener Städtische Osiguranje in Serbia from 2006 until 2007. After
that, he held various management positions at VIG, including as a Managing Board
member in Serbia and Bulgaria. In addition, he served as Chief Financial Officer (CFO) of
the Czech company Ceská Podnikatelská Pojišťovna from 2019 to 2024 and held the same
position at the Czech company Kooperativa Pojišťovna from 2020 to 2024. Christoph Rath
was appointed as a deputy member of the Managing Board of VIG Holding with effect from
1 September 2024.
Area of responsibility:
RiskConsult
Country responsibilities:
Albania, Bosnia-Herzegovina, Kosovo, Croatia, Montenegro,
North Macedonia, Serbia
The Managing Board as a whole is responsible for the Compliance (including AML), Internal Audit, Investor Relations and
Actuarial Function agendas. The curricula vitae of the members of the Managing Board are available on the website at
group.vig/management.
Changes during the financial year
Christoph Rath was appointed as a deputy member of the Managing Board of VIG Holding with effect from 1 September 2024.
MEMBERS OF THE SUPERVISORY BOARD
The Supervisory Board had the following twelve members
as of 31 December 2024:
Rudolf Ertl
Chairman
Year of birth: 1946
Date first appointed: 2014
End of current term of office: 2028
Rudolf Ertl is Doctor of Laws and has been with the Group
since 1972. He was a member of the Managing Board of
Wiener Städtische until the end of 2008 and a member of
the Managing Board of Donau Versicherung until June 2009.
He was a member of the Managing Board of Wiener
Städtische Wechselseitiger Versicherungsverein until the
end of 2020 and has been a member of the Supervisory
Board of Wiener Städtische Wechselseitiger Versicherungs-
verein since January 2021. The insurance expertise and
Group experience he has gained over many years, and his
knowledge of the CEE region, make Rudolf Ertl a major
asset to the Company as Chairman of the Supervisory
Board.
Martin Simhandl
1
st
Deputy Chairman
Year of birth: 1961
Date first appointed: 2024
End of current term of office: 2028
Martin Simhandl began his career with the Group in 1985 in
the Wiener Städtische legal department. He was head of
the Affiliated companies department and coordinated the
Group’s investment activities. In 2002 and 2003, Martin
Simhandl was also a member of the Managing Board of
InterRisk Non-Life and InterRisk Life in Germany. Martin
Simhandl was a member of the Company’s Managing
Board from November 2004 until 2018, with responsibility
for accounting, asset management and risk management,
among other things. As a lawyer, he supported VIG’s
expansion into the CEE region from the very beginning and
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held Supervisory Board positions in the Czech Republic,
Slovakia, Hungary, Romania, Croatia and Poland, among
others. Martin Simhandl is currently a member of the Super-
visory Board of Wiener Städtische Versicherungsverein.
Robert Lasshofer
2
nd
Deputy Chairman
Year of birth: 1957
Date first appointed: 2021
End of current term of office: 2028
Robert Lasshofer has decades of top experience in the in-
surance industry. Robert Lasshofer has been General
Manager and Chairman of the Managing Board of Wiener
Städtische Wechselseitiger Versicherungsverein since 2021.
He was General Manager and Chairman of the Managing
Board of Wiener Städtische until the end of 2020. He has a
degree in economics and was president of the Austrian In-
surance Association (VVO) until the end of 2022.
Martina Dobringer
Year of birth: 1947
Date first appointed: 2011
End of current term of office: 2028
Martina Dobringer held various management positions in
the Coface group starting in 1989 and brings her extensive
knowledge of the international insurance industry with her.
As Chairwoman of the Managing Board of Coface Central
Europe Holding AG, she laid the cornerstone for Coface’s
successful expansion into this region. From 2001 to 2011,
she was General Manager and Chairwoman of the Man-
aging Board of Coface Austria Holding AG. In 2011, she
was awarded the Grand Decoration of Honour in Silver for
Services to the Republic of Austria, and in 2006 she be-
came the first Austrian businesswoman to receive the
highest French honour (“Chevalier dans l’ordre de la Légion”).
András Kozma
Year of birth: 1968
Date first appointed: 2022
End of current term of office: 2028
Following his business administration studies in Budapest
and Vienna, András Kozma worked in various roles in the
financial services sector, including Head of Financing at
Hypovereinsbank Hungary (now Unicredit Bank), member of
the Managing Board at Euler Hermes Hitelbiztosító Hungary
(now Allianz Trade) and Chairman of the Managing Board at
Commerzbank Hungary. András Kozma has been a member
of the Managing Board of the German-Hungarian Chamber
of Industry and Commerce since 2008 and is also a mem-
ber of the Supervisory Board of the Credit Management
Association in Hungary. Since 2015, he has owned various
private companies in the financial consultancy sector.
Vratislav Kulhánek
Year of birth: 1943
Date first appointed: 2024
End of current term of office: 2028
Vratislav Kulhánek studied economics in Prague. His career
has revolved around the automotive industry. His previous
roles include Chairman of the Managing Board and Chair-
man of the Supervisory Board of Škoda – Auto, a.s., mem-
ber of the Executive Board of the International Chamber of
Commerce (ICC, Paris), President of the Association of the
Automotive Industry and Vice President of the Confedera-
tion of Industry of the Czech Republic.
Hana Machačová
Year of birth: 1953
Date first appointed: 2024
End of current term of office: 2028
Hana Machačová has been managing the sales activities of
KOOPERATIVA poisťovňa for over 20 years, the majority of that
time as a member of the Managing Board. During that time,
she has played a significant role in doubling the company’s
market share to around 25%. As a lawyer, she also manages
social projects in the KOOPERATIVA Foundation, which is one
of the most renowned foundations in the Czech Republic.
Peter Mihók
Year of birth: 1948
Date first appointed: 2019
End of current term of office: 2028
Since 1992, Peter Mihók has been Chairman of the Slovakian
Chamber of Trade and Industry, Honorary Chair of the World
Chambers Federation of the International Chamber of Com-
merce in Paris and member of the Managing Board of Euro-
chambres in Brussels, among other things. He studied at
the University of Economics in Bratislava and received a
Ph.D. degree in the area of East-West economic relations
and an honorary doctorate from the University of Eco-
nomics in Bratislava. In addition to numerous other awards,
he received the Grand Decoration of Honour in Gold for
Services Rendered to the Republic of Austria in 2013 from
Heinz Fischer, the President of Austria at that time.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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Katarína Slezáková
Year of birth: 1976
Date first appointed: 2020
End of current term of office: 2028
Katarína Slezáková graduated from the Faculty of Business
Management at the University of Economics in Bratislava
and has many years of experience in marketing and com-
munications for technology and industrial companies (e.g.
Siemens IT Solutions and Services Slovakia, Siemens s.r.o.
Slovakia, Siemens AG Österreich, Medirex a.s.). Katarína
Slezáková is currently the Head of Marketing for CzechToll
and SkyToll, two companies in the Czech Republic and
Slovakia that are leaders in the area of intelligent transport
information systems.
Ágnes Svoób
Year of birth: 1987
Date first appointed: 2024
End of current term of office: 2028
Ágnes Svoób has been working in the financial sector since
the beginning of her career and is currently Managing Di-
rector of Equilor Befektetési Zrt., one of Hungary’s leading
corporate finance companies. The Hungarian native has ex-
tensive expertise in the areas of private equity and capital
market transactions, among other things. She has success-
fully handled major corporate acquisitions and already held
a Supervisory Board position at the Hungarian VIG com-
pany UNION Biztosító.
Peter Thirring
Year of birth: 1957
Date first appointed: 2023
End of current term of office: 2028
Peter Thirring studied law at the University of Vienna. He
has used his more than 30 years of insurance experience in
the Generali insurance group. He had been General Man-
ager of Donau Versicherung from March 2016 to the end of
June 2018 and member of the Managing Board of VIG
Holding from 1 July 2018 to 30 June 2023. Peter Thirring
has been Deputy Chairman of the Managing Board of Wiener
Städtische Wechselseitiger Versicherungsverein since 2023.
Gertrude Tumpel-Gugerell
Year of birth: 1952
Date first appointed: 2012
End of current term of office: 2028
Gertrude Tumpel-Gugerell was Vice Governor of the Na-
tional Bank of Austria (OeNB) from 1998 to 2003 and
member of the Board of Directors from 1997 to 2003. She
also has many years of international experience, at the
European level in particular. She was the Austrian Vice Gov-
ernor to the International Monetary Fund and a member of
the Economic and Financial Committee – the most impor-
tant economic policy advisory committee of the European
Union. Gertrude Tumpel-Gugerell was responsible for the
Economics and Financial Markets divisions at the National
Bank of Austria. From 2003 to 2011, she was a member of
the Executive Board of the European Central Bank.
The curricula vitae of the members of the Supervisory Board
are available on the website at group.vig/supervisory-board.
Changes during the financial year
Günter Geyer, Zsuzsanna Eifert, Gabriele Semmelrock-
Werzer and Gerhard Fabisch resigned from the Supervisory
Board after their term of office ended on 24 May 2024.
Vratislav Kulhánek, Hana Machačová, Martin Simhandl and
Ágnes Svoób were elected as members of the Supervisory
Board at the Annual General Meeting on 24 May 2024.
In 2024, the Supervisory Board elected Rudolf Ertl as Chair-
man of the Supervisory Board for the term of office until
30 June 2025. Peter Thirring was elected Chairman of the
Supervisory Board for the remainder of the term of office
from 1 July 2025 until the Annual General Meeting that will
decide on the discharge for the 2027 financial year. Martin
Simhandl was elected 1
st
Deputy Chairman of the Super-
visory Board for the full term of office until the Annual
General Meeting that will decide on the discharge for the
2027 financial year, and Robert Lasshofer was re-elected
2
nd
Deputy Chairman of the Supervisory Board.
SUPERVISORY BOARD INDEPENDENCE
In accordance with Rule 53 of the Austrian Code of Cor-
porate Governance, the Supervisory Board of VIG Holding
has established the following criteria defining independence:
• The Supervisory Board member has not been a member
of the Managing Board of the Company or of an insur-
ance company, a pension fund or an asset management
company of VIG Group in the last five years.
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Annual Financial Report 2024
• The Supervisory Board member does not have a business
relationship with the Company or a subsidiary of the
Company that is of such significant scope for the
Supervisory Board member that it affects their activities on
the Supervisory Board to the detriment of the Company.
This also applies to business relationships with companies
in which the Supervisory Board member has a
considerable economic interest. The approval of individual
transactions by the Supervisory Board in accordance with
§ 95 (5) (12) of the Austrian Stock Corporation Act (AktG) or
§ 15 (2) (l) of the Articles of Association does not
automatically lead to a classification of non-independence.
For the purpose of clarification, it is expressly noted that
purchase or existence of insurance policies with the
Company has no adverse effect on independence.
• The Supervisory Board member has not been an auditor
of the Company’s financial statements, or held an
ownership interest in or been an employee of the auditing
company executing such audits in the last three years.
• The Supervisory Board member is not a member of the
Managing Board of another company that has a member
of the Company’s Managing Board on its Supervisory
Board.
• The Supervisory Board member is not a close family
member (direct descendant, spouse, partner, parent,
uncle, aunt, brother, sister, niece, nephew) of a member
of the Managing Board or individuals holding one of the
positions described above.
Each member of the Supervisory Board has declared wheth-
er they can be considered independent based on the criteria
specified by the Supervisory Board. Robert Lasshofer, Peter
Mihók and Peter Thirring have each stated that they are not
independent based on the independence criteria specified
by the Supervisory Board. All other Supervisory Board
members were independent based on the criteria indicated.
No Supervisory Board member holds more than 10% of the
Company’s shares.
The following Supervisory Board members exercised
supervisory mandates or comparable positions in other
non-Group Austrian or foreign listed companies as of
31 December 2024:
Robert Lasshofer
AT & S Austria Technologie & Systemtechnik Aktiengesellschaft
Gertrude Tumpel-Gugerell
AT & S Austria Technologie & Systemtechnik Aktiengesellschaft
and Commerzbank AG
PROCEDURES FOLLOWED BY THE MANAGING BOARD AND BY
THE SUPERVISORY BOARD AND ITS COMMITTEES
Managing Board
The Managing Board manages the business of the Com-
pany under the leadership of its Chairperson and within the
constraints of the law, Articles of Association, procedural
rules of the Managing Board and procedural rules of the
Supervisory Board.
The Managing Board meets when needed (generally every
two weeks) to discuss current business developments, and
makes the necessary decisions and resolutions during the
course of these meetings. The Managing Board members
continuously exchange information with each other and the
heads of various departments. The country responsibilities
of the Managing Board members are exercised in particular
through Supervisory Board activities in the Group companies.
Supervisory Board
The Supervisory Board performs all activities defined under
the law, Articles of Association and the procedural rules of
the Supervisory Board. In order to ensure effectiveness and
efficiency of its activities and procedures, the Supervisory
Board examines its procedures regularly, but at least once
a year in the form of a self-evaluation. The Supervisory
Board’s evaluation of its activities in 2024 found that its or-
ganisational structure and procedures were satisfactory in
terms of efficiency and in compliance with the law. It found
no need for change or desire for change in the practices
followed to date.
The Supervisory Board and its committees, Chairpersons
and Deputy Chairpersons continuously monitor and regu-
larly examine Company management as well as the activ-
ities of the Managing Board in terms of managing and moni-
toring the Group. This purpose is served by detailed pres-
entations and discussions during meetings of the Super-
visory Board and its committees as well as by detailed dis-
cussions on individual topics with Managing Board mem-
bers who provide comprehensive explanations and evi-
dence relating to management, the financial position of the
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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Company and that of the Group. Strategy, business devel-
opment (overall and in individual regions), risk management,
the internal control system, internal audit activities, the com-
pliance function, actuarial function, reinsurance and other
key topics – at the VIG Holding level as well as at Group
level – are also discussed during these meetings.
The Supervisory Board and the Audit Committee also directly
engage with the financial statements auditor and the consoli-
dated financial statements auditor in order to familiarise them-
selves with the accounting process and audit progress, and
to inquire whether the audit has produced any important find-
ings. Provision was made for exchanges between the mem-
bers of the Audit Committee and the (consolidated) financial
statements auditor in such meetings without the presence of
the Managing Board, but no member of the Audit Committee
took advantage of this opportunity during the reporting year.
During the meetings about annual and consolidated financial
statements, the auditor’s reports are discussed with the audit
managers both in the Audit Committee and in the entire
Supervisory Board. The Audit Committee examined the Sol-
vency and Financial Condition Report (SFCR) at both the solo
and Group levels and reported its findings to the Supervisory
Board. No facts or circumstances were found that would have
provided grounds for objection.
The internal audit department provides quarterly reports to
the Audit Committee. If necessary, the head of internal audit
provides detailed explanations of individual issues and audit
focal points. The head of internal audit also submits the an-
nual audit plan to the Audit Committee for approval. The
Managing Board explains the organisation and effective-
ness of the internal control system, internal audit and the risk
management system to the Audit Committee at least once a
year, and provides the Audit Committee with a written report
on this subject so that it can confirm the efficiency of the
systems. The Audit Committee also examines the report and
assessment of the functioning of the risk management system
prepared by the (consolidated) financial statements auditor
and reports its findings to the Supervisory Board.
The Audit Committee also dealt with the VIG Holding and
VIG Group ORSA reports in 2024 and reported on them to
the Supervisory Board.
At least once a year, the Managing Board presents the Super-
visory Board with the measures taken by the VIG com-
panies in order to prevent corruption, and the Supervisory
Board discusses those.
When preparing the proposal for the Annual General Meet-
ing regarding the election of a new Supervisory Board mem-
ber, the Supervisory Board takes into account the profes-
sional and personal requirements provided for by law and
the Austrian Code of Corporate Governance that a Super-
visory Board member must satisfy and observe.
The Audit Committee and Supervisory Board also strictly
ensure that all of the requirements and conditions provided
for under the law and Austrian Code of Corporate Gover-
nance are fully satisfied when preparing the proposal re-
garding the election of the (consolidated) financial state-
ments auditor for the Annual General Meeting. As a public-
interest entity, the special additional rules for external and
internal rotation applicable to insurance companies and the
special tendering process are observed. In addition, after
the audit of the consolidated financial statements has been
completed, the Supervisory Board is provided with a list
showing the total audit expenses of all Group companies.
This list provides a separate breakdown of expenses relat-
ing to the consolidated financial statements auditor and the
members of the network to which the consolidated financial
statements auditor pertains. The same goes for other finan-
cial statements auditors who work for the Group.
The Supervisory Board also dealt with IT security issues in
financial year 2024.
In 2024, the Managing Board of VIG Holding informed the
members of the Supervisory Board of material sustainability
and IT security matters. During the reporting year, the topics
discussed included the VIG sustainability programme, the
new legal framework for sustainability reporting, the results
of the consolidated double materiality assessment and the
preparatory work for the consolidated transition plan for
climate change mitigation for the VIG insurance companies.
The Managing Board and Supervisory Board prepared a
remuneration report for financial year 2024.
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Annual Financial Report 2024
The Supervisory Board established five committees to in-
crease its efficiency and to address complex matters: Com-
mittee for Urgent Matters (Working Committee), Audit Com-
mittee (Accounts Committee), Committee for Managing
Board Matters (Personnel Committee), Strategy Committee
and Nomination Committee.
SUPERVISORY BOARD COMMITTEES
COMMITTEE FOR URGENT MATTERS (WORKING COMMITTEE)
The Committee for Urgent Matters (Working Committee)
decides on matters that require approval of the Supervisory
Board, but cannot be deferred to the next ordinary Super-
visory Board meeting because of particular urgency.
Rudolf Ertl (Chairman)
Robert Lasshofer
Martin Simhandl
If one of the members is unable to attend, Gertrude Tumpel-
Gugerell will also attend this meeting and if an additional mem-
ber is unable to attend, Martina Dobringer will also attend the
meeting.
AUDIT COMMITTEE (ACCOUNTS COMMITTEE)
The Audit Committee (Accounts Committee) is responsible
for the duties assigned to it by law and is, in particular, re-
sponsible for the duties assigned in § 92 (4a)(4) of the
Austrian Stock Corporation Act (AktG), § 123 (9) of the
Austrian Insurance Supervision Act (VAG) and Regulation
(EU) No. 537/2014, namely:
1. to monitor the accounting process and provide recom-
mendations or suggestions to ensure its reliability;
2. to monitor the effectiveness of the Company’s internal
control system and the internal audit function and risk
management system;
3. to monitor the audit of the financial statements and con-
solidated financial statements taking into account find-
ings and conclusions in reports published by the super-
visory authority for financial statement auditors in accord-
ance with § 4 (2)(12) of the Austrian Auditor Supervision
Act (APAG);
4. to check and monitor the independence of the financial
statements auditor (consolidated financial statements
auditor), in particular with respect to the additional ser-
vices provided for the audited company; Art. 5 of Regu-
lation (EU) No. 537/2014 and § 271a (6) UGB apply;
5. to report the results of the financial statement audit to the
Supervisory Board and explain how the financial state-
ment audit has contributed to the reliability of the financial
reports and the role of the Audit Committee in this;
6. to audit the annual financial statements and prepare their
approval, examine the proposal for appropriation of prof-
its, the management report, the solvency and financial
condition report and corporate governance report, and
present a report on the results of the audit to the Super-
visory Board;
7. to audit the consolidated financial statements and Group
management report, the solvency and financial condition
report at Group level and the corporate governance re-
port at consolidated level, and report the results of the
audit to the Supervisory Board;
8. to perform the procedure to elect the financial statements
auditor (consolidated financial statements auditor) taking
into account the appropriateness of the fees in ac-
cordance with Art. 4 of Regulation (EU) No. 537/2014
and the rotation periods in Art. 17 of Regulation (EU) No.
537/2014, and recommend appointment of a financial
statements auditor (consolidated financial statements
auditor) to the Supervisory Board in accordance with Art.
16 of Regulation (EU) No. 537/2014.
Furthermore, the Audit Committee (Accounts Committee)
specifies how the two-way communication between the
(consolidated) financial statements auditor and the Audit
Committee (Accounts Committee) has to take place, while
making provision for exchanges to take place between the
Audit Committee (Accounts Committee) and the (consoli-
dated) financial statements auditor without the presence of
the Managing Board.
Members of the Audit Committee are experienced financial
experts with knowledge and practical experience in finance,
accounting and reporting that satisfy the requirements of
the Company.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
289
Chairwoman:
Gertrude Tumpel-Gugerell
Deputy Chairwoman:
Martina Dobringer
Other members:
Rudolf Ertl
András Kozma
Robert Lasshofer
Peter Mihók
Martin Simhandl
Katarína Slezáková
Ágnes Svoób
If one of the members is unable to attend, Hana Machačová
will also attend this meeting and if an additional member is
unable to attend, Vratislav Kulhánek will also attend the
meeting. If Gertrude Tumpel-Gugerell is unable to attend,
the meeting will be chaired by Martina Dobringer.
COMMITTEE FOR MANAGING BOARD MATTERS (PERSONNEL
COMMITTEE)
The Committee for Managing Board Matters (Personnel
Committee) deals with personnel matters of the Managing
Board. The Committee for Managing Board Matters there-
fore decides on employment contract terms with members
of the Managing Board and their remuneration and
examines remuneration policies at regular intervals.
Rudolf Ertl (Chairman)
Robert Lasshofer
Martin Simhandl
STRATEGY COMMITTEE
The Strategy Committee cooperates with the Managing
Board and, when appropriate, with experts that it consults
in order to prepare fundamental decisions that will sub-
sequently be decided upon by the entire Supervisory Board.
Rudolf Ertl (Chairman)
András Kozma
Robert Lasshofer
Peter Mihók
Martin Simhandl
If one of the members is unable to attend, Gertrude Tumpel-
Gugerell will also attend this meeting and if an additional
member is unable to attend, Martina Dobringer will also attend
the meeting.
NOMINATION COMMITTEE
The Nomination Committee submits proposals to the
Supervisory Board for filling positions that become available
on the Managing Board and handles issues of successor
planning.
Rudolf Ertl (Chairman)
Martina Dobringer
Robert Lasshofer
Peter Mihók
Martin Simhandl
Gertrude Tumpel-Gugerell
Gerhard Fabisch and Gabriele Semmelrock-Werzer, mem-
bers of the Supervisory Board in 2024 until 24 May 2024,
are members of the managing boards of companies with
which distribution agreements are in place at terms that are
customary for the market and industry. The Company did
not enter into any other agreements with Supervisory Board
members in 2024 that would have required the approval of
the Supervisory Board.
NUMBER OF MEETINGS OF THE SUPERVISORY BOARD AND
ITS COMMITTEES IN THE FINANCIAL YEAR 2024
One Annual General Meeting and seven Supervisory Board
meetings distributed across the financial year were held in
2024. Furthermore, four meetings of the Audit Committee
(Accounts Committee) were held and one resolution of the
Audit Committee was adopted by written circulation. The
annual financial statements and consolidated financial state-
ments auditor, KPMG Austria GmbH Wirtschaftsprüfungs-
und Steuerberatungsgesellschaft (KPMG), attended four
Audit Committee meetings and four Supervisory Board
meetings in 2024, including the Supervisory Board meeting
that addressed the audit of the 2023 annual financial
statements and the 2023 consolidated financial statements
as well as formal approval of the 2023 annual financial
statements, and also attended the Annual General Meeting.
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Three meetings of the Committee for Managing Board Mat-
ters (Personnel Committee) were held in 2024. The Com-
mittee for Urgent Matters (Working Committee) adopted
one resolution by written circulation in 2024. The Nomina-
tion Committee met once in 2024. The Strategy Committee
did not meet in 2024. Strategic matters were handled by the
Supervisory Board as a whole. Gertrude Tumpel-Gugerell did
not attend at more than half of the Supervisory Board meet-
ings in person. No further members of the Supervisory Board
attended less than half of the Supervisory Board meetings.
MEETING ATTENDANCE BY MEMBERS OF THE SUPERVISORY BOARD IN FINANCIAL YEAR 2024
The table below shows the meeting attendance of the ordinary members:
Name Supervisory
Board
Audit
Committee
Working
Committee
Strategy
Committee
Personnel
Committee
Nomination
Committee
7 meetings
4 meetings
No meetings No meetings
3 meetings
1 meeting
Günter Geyer
1
3/3 1/1 3/3 1/1
Rudolf Ertl (C) 5/7 3/4 3/3 1/1
Martin Simhandl (1
st
DC)
2
4/4 3/3
Robert Lasshofer (2
nd
DC) 6/7 4/4 3/3 1/1
Martina Dobringer 7/7 4/4 1/1
Zsuzsanna Eifert
1
2/3 1/1
Gerhard Fabisch
1
3/3
András Kozma 7/7 4/4
Vratislav Kulhánek
2
4/4
Hana Machačová
2
4/4
Peter Mihók 7/7 4/4
Gabriele Semmelrock-Werzer
1
3/3
Katarina Slezáková 7/7 4/4
Ágnes Svoób
2
4/4 3/3
Peter Thirring 7/7
Gertrude Tumpel-Gugerell 3/7 2/4
1
Stepped down from the Supervisory Board on 24 May 2024.
2
Election to the Supervisory Board at the Annual General Meeting on 24 May 2024
DIVERSITY CONCEPT
With over 50 insurance companies and pension funds and
around 30,000 employees in Austria and Central and
Eastern Europe, VIG Insurance Group combines many
countries, languages and cultural backgrounds. Diversity is
a core value in the VIG mission statement and a key priority
in its HR strategy.
VIG Insurance Group follows a bottom-up approach with
respect to diversity management for the Company’s boards.
By applying diversity management to all employees, VIG
Insurance Group expects to generate corresponding diver-
sity in the candidate pool for internal successor planning in
the long term.
For VIG Insurance Group, diversity reflects both the
similarities and the differences it encounters in the Group,
its markets and its partners as well as customers. Diversity
management is based on genuine appreciation and open
acceptance of diversity, and makes conscious use of this
diversity. VIG companies include this understanding of di-
versity in the VIG Code of Business Ethics:
“We do not tolerate any kind of discrimination. We are
committed to promoting equal opportunities with regard to
the employment and promotion of staff, regardless of their
faith, religion, gender, beliefs, ethnicity, nationality, sexual
orientation, age, skin colour, disability or civil status.”
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Group and VIG Holding level
The diversity concept focuses on the criteria of gender, gen-
erations and internationality at the VIG Holding level, and
refined and developed measures for the following criteria:
•
Gender:
ensure equal gender treatment in all areas (career
and development options, benefits and income, etc.)
•
Generations:
use mixed-age teams and take into account
the various phases of life to develop full potential. Genera-
tion-appropriate offers and support in the various phases of
life, learn from one another, life balance, fair recruitment
•
Internationality:
Group-wide exchange of experience,
collaborative learning, use of the internal Group job
market and ensuring an appropriate mix of people from
different countries within VIG Holding
The criteria of gender, generations and internationality are
also taken into account when new Supervisory Board mem-
bers are proposed for election at General Meetings. VIG In-
surance Group has relied on the concept of local entrepre-
neurship for decades, thereby also promoting a very inter-
nationally diverse “community” of Group Managing Board
members and CEOs, with 21 nationalities represented.
The topic of diversity is incorporated into the Group-wide
management training programmes, both in the selection of
participants and in the selection of lecturers.
Level of the VIG insurance companies
In accordance with the principle of local entrepreneurship, the
VIG insurance companies choose their own diversity priorities
and are independently responsible for their implementation.
Diversity Advisor
The Diversity Advisor advises both VIG Holding and local
VIG companies on matters related to diversity management.
MEASURES TO PROMOTE WOMEN IN MANAGING BOARD,
SUPERVISORY BOARD AND MANAGEMENT POSITIONS
VIG Insurance Group attaches great importance to diversity,
with gender being one of the three main focuses of the
diversity concept at VIG Holding level. International training
programmes play a key role in this, not only in VIG Holding
but across the entire insurance group. The programmes
take into account both gender and internationality, and
specifically improve women’s access to management
positions.
These measures aim to create a sustainable working en-
vironment in which talent is specifically nurtured, developed
and retained over the long term. Vienna Insurance Group
thus makes a significant contribution to diversity on the
Managing Board and Supervisory Board and in manage-
ment positions.
DIVERSITY KEY FIGURES
The consolidated non-financial report (sustainability state-
ment) in this report contains diversity key figures at both VIG
Holding and Group level. Reference is made to the infor-
mation in this regard.
EXTERNAL EVALUATION REPORT
C-Rule 62 of the Austrian Code of Corporate Governance
provides for voluntary external evaluation of compliance
with the C-Rules of the Code. VIG Holding carries out such
an evaluation every third year. The most recent audit of the
consolidated Corporate Governance Report was for the
2023 financial year. All evaluations came to the conclusion
that all requirements of the Code were fulfilled. The next
evaluation is planned for the 2026 financial year.
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Annual Financial Report 2024
Vienna, 25 March 2025
Hartwig Löger
General Manager (CEO),
Chairman of the Managing Board
Peter Höfinger
Deputy General Manager,
Deputy Chairman of the Managing Board
Liane Hirner
CFRO, Member of
the Managing Board
Gerhard Lahner
COO, Member of
the Managing Board
Gábor Lehel
CIO, Member of
the Managing Board
Harald Riener
Member of
the Managing Board
Christoph Rath
Deputy Member of
the Managing Board
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The Supervisory Board and its com-
mittees, Chair and Deputy Chairs
periodically and repeatedly moni-
tored in detail the management of
the Company and the activities of
the Managing Board in connection
with its management and monitor-
ing of the Group. This purpose was
served by detailed presentations
and discussions during meetings
of the Supervisory Board and its
committees as well as by detailed discussions on individual
topics with Managing Board members who provided com-
prehensive explanations and evidence relating to manage-
ment, the financial position of the Company and that of the
Group. Among other things, the strategy, business develop-
ment (overall and in individual countries), risk management,
the internal control system, internal audit, compliance func-
tion and actuarial function activities and reinsurance, both
at the VIG Holding and Group level, and other important
topics for the Company and VIG Insurance Group were
discussed during these meetings.
VIG Holding is committed to social responsibility and the im-
portance of having employees drive forward performance,
innovation and expertise. In accordance with the Solvency II
requirements, starting in 2016 non-financial aspects must
be part of the performance expectations for variable remu-
neration of Managing Board members. Goal fulfilment for
Managing Board members also depended on both financial
and non-financial criteria in the 2024 reporting year. Detailed
information on the principles underlying the remuneration
system is available in the remuneration policy and 2024 re-
muneration report.
The Supervisory Board has formed five committees from its
members. Information on the responsibilities and composition
of these committees is available on the Company’s website
and in the 2024 consolidated Corporate Governance Re-
port. One Annual General Meeting and seven Supervisory
Board meetings distributed across the financial year were
held in 2024. Furthermore, four meetings of the Audit Com-
mittee (Accounts Committee) were held and one resolution
of the Audit Committee was adopted by written circulation.
The annual financial statements and consolidated financial
statements auditor, KPMG Austria GmbH Wirtschafts-
prüfungs- und Steuerberatungsgesellschaft, FN 269873y
(KPMG), attended four Audit Committee meetings and four
Supervisory Board meetings in 2024, including the Super-
visory Board meeting that addressed the audit of the 2023
annual financial statements and the 2023 consolidated fi-
nancial statements as well as formal approval of the 2023
annual financial statements, and also attended the Annual
General Meeting. KPMG also informed the Audit Committee
about the planning and procedure used to audit the annual
financial statements and consolidated financial statements
2024. Three meetings of the Committee for Managing
Board Matters (Personnel Committee) were held in 2024.
The Committee for Urgent Matters (Working Committee)
adopted one resolution by written circulation in 2024. The
Nomination Committee met once in 2024. The Strategy
Committee did not meet in 2024. Strategic matters were
handled by the Supervisory Board as a whole. Details on
the attendance of Supervisory Board meetings in the 2024
financial year can be found in the Corporate Governance
Report 2024.
No agenda items were discussed in Supervisory Board
meetings in 2024 without the participation of members of
the Managing Board.
In order to ensure the effectiveness and efficiency of its ac-
tivities and procedures, the Supervisory Board performed a
self-evaluation of its procedures. The Supervisory Board’s
evaluation of its activities found that its organisational struc-
ture and procedures were satisfactory in terms of efficiency
and in compliance with the law. It found no need for change
or desire for change in the practices followed to date.
KPMG was elected as the auditor of the annual and con-
solidated financial statements for the 2024 financial year in
accordance with the proposal and motion of the Super-
visory Board and the Annual General Meeting on 26 May
2023, and therefore KPMG performed these tasks for the
2024 financial year.
The Audit Committee mainly dealt with the following topics
in 2024:
By inspecting relevant documents, meeting with the Man-
aging Board and holding discussions with the auditor of the
annual and consolidated financial statements, the Audit
Committee was able to monitor the accounting process
and the procedure used for auditing the annual financial
statements and consolidated financial statements, and
found no facts or circumstances providing grounds for ob-
Supervisory Board Report
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Annual Financial Report 2024
jection. The Audit Committee also reviewed the possibilities
of providing recommendations or suggestions to ensure the
reliability of the accounting process and, based on the
comprehensive information and documents obtained by the
Audit Committee during its review, found that the processes
that had been established were adequate.
The Audit Committee also dealt with the VIG Holding and
VIG Group ORSA reports in 2024 and reported on them to
the Supervisory Board. The Audit Committee monitored the
effectiveness of the internal control system, the internal
audit function and the risk management system and found
them to be effective after eliciting presentations on the
procedures and organisation of these systems from the
Managing Board, the auditor of the annual and consolidated
financial statements, and the persons directly charged with
these duties. The Audit Committee reported on these
monitoring activities to the Supervisory Board and stated
that no deficiencies had been identified. The Supervisory
Board was also given the opportunity during Supervisory
Board meetings to verify the functional adequacy of the
existing control and auditing systems.
In addition, the audit plan and the quarterly reports pre-
pared by the internal audit department were debated by the
Audit Committee and the Supervisory Board and discussed
with the head of the internal audit department and the
Group internal audit department.
The Audit Committee examined the Solvency and Financial
Condition Reports (SFCRs) at both the solo and Group
levels and reported its findings to the Supervisory Board.
No facts or circumstances were found that would have pro-
vided grounds for objection.
The Audit Committee also received the 2024 annual finan-
cial statements, the management report and the 2024 con-
solidated Corporate Governance Report from the Managing
Board and reviewed and carefully examined them. The
Managing Board’s proposed appropriation of profits was also
reviewed with respect to capital adequacy and its effects
on the solvency and financial position of the Company
during the course of this examination. The Audit Committee
also examined the 2024 consolidated financial statements
and Group management report including the consolidated
non-financial report (sustainability statement). Furthermore,
the auditor’s reports prepared by the auditor of the annual
and consolidated financial statements KPMG for the 2024
annual financial statements, including the management re-
port, and the 2024 consolidated financial statements, in-
cluding the Group management report including the con-
solidated non-financial report (sustainability statement),
were reviewed and examined by the Audit Committee. As a
result of this examination, a unanimous resolution was
adopted to recommend to the Supervisory Board that the
annual financial statements be accepted. The Supervisory
Board found no grounds for objection.
The auditor of the annual and consolidated financial state-
ments provided the Audit Committee with an additional re-
port in accordance with Art. 11 of the Audit Regulation (EU)
that explained the results of the audit of the annual financial
statements and consolidated financial statements. This ad-
ditional report prepared by the auditor of the annual financial
statements was also provided to the Supervisory Board.
The Audit Committee also reviewed and monitored the in-
dependence of the auditor of the annual financial
statements and consolidated financial statements, and after
reviewing suitable documents and supporting records sub-
mitted to the Committee, particularly with respect to the ap-
propriateness of the fee and the additional services pro-
vided to the Company, was satisfied with the auditor’s inde-
pendent status. The Audit Committee dealt with non-
auditing services. While reviewing and monitoring the in-
dependence of the auditor of the annual financial state-
ments and the consolidated financial statements, it did not
find any circumstances that would raise doubts about its
independence and impartiality.
In 2024, the Audit Committee dealt with the selection of the
auditor for the annual and consolidated financial statements
for the 2025 financial year and the auditor for the consoli-
dated sustainability report (consolidated non-financial report)
for the 2024 and 2025 financial years. It was determined that
there were no grounds for exclusion of KPMG or circum-
stances that would give rise to concerns about impartiality,
and that sufficient protective measures had been taken to
ensure an independent and impartial audit.
The Audit Committee reported the results of these delibera-
tions to the Supervisory Board and then recommended to
the Supervisory Board, which itself proposed to the Annual
General Meeting that KPMG be elected as the auditor of the
annual and consolidated financial statements. The General
Meeting selected KPMG as auditor of the annual financial
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
295
statements and consolidated financial statements for 2025.
Furthermore, the General Meeting has elected KPMG as
auditor of the consolidated sustainability report (consoli-
dated non-financial report) for the 2024 and 2025 financial
years, if and to the extent required by law.
During one meeting of the Audit Committee, the members
of the committee consulted with the auditor of the annual
and consolidated financial statements on specification of
two-way communications and audit planning.
The Supervisory Board dealt with the following topics in
particular:
The audit results and all resolutions adopted by the Audit
Committee were reported to the Supervisory Board in its next
meeting.
The 2024 annual financial statements together with the man-
agement report and 2024 consolidated Corporate Gover-
nance Report, the 2024 consolidated financial statements to-
gether with the Group management report, including the con-
solidated non-financial report (sustainability statement), and
the Managing Board’s proposed appropriation of profits were
taken up and examined in detail by the Supervisory Board.
The proposed appropriation of profits was checked, in par-
ticular, to ensure that it was reasonable when capital require-
ments were taken into account. The proposal complies with
applicable legal requirements and proactively considers the
macroeconomic and financial situation and its impact on the
Company’s solvency and financial position. The proposal is in
line with the continuously pursued prudent and sustainable
capital planning to ensure a solid solvency and liquidity posi-
tion in the long term.
The Supervisory Board also dealt with IT security issues and
ESG in financial year 2024.
The Managing Board and Supervisory Board prepared a
remuneration report for financial year 2024.
During the reporting period, the Nomination Committee and
the Supervisory Board dealt with the appointment of a
deputy member of the Managing Board. In 2024, the
Supervisory Board appointed Mr Christoph Rath as a depu-
ty member of the VIG Holding Managing Board with effect
from 1 September 2024.
In 2024, the Managing Board of VIG Holding informed the
members of the Supervisory Board of material sustainability
and IT security matters. During the reporting year, the topics
discussed included the VIG sustainability programme, the
new legal framework for sustainability reporting, the results
of the consolidated double materiality assessment and the
preparatory work for the consolidated transition plan for
climate change mitigation for the VIG insurance companies.
Furthermore, the auditor’s reports prepared by the auditor
of the annual and consolidated financial statements KPMG
for the 2024 annual financial statements, including the man-
agement report, and the 2024 consolidated financial state-
ments, including the Group management report including
the consolidated non-financial report (sustainability state-
ment), were reviewed and examined by the Supervisory
Board. KPMG’s audit of the 2024 annual financial state-
ments and management report and the 2024 consolidated
financial statements and Group management report includ-
ing the consolidated non-financial report (sustainability
statement) did not lead to any reservations. KPMG deter-
mined that the annual financial statements comply with
statutory requirements and give a true and fair view of the
net assets and financial position of the Company as of
31 December 2024, and of the results of operations of the
Company for the financial year 2024 in accordance with
Austrian generally accepted accounting principles. The
management report is consistent with the annual financial
statements. The disclosures pursuant to § 243a of the
Austrian Commercial Code (UGB) are appropriate. KPMG
further determined that the consolidated financial state-
ments also comply with statutory requirements and give a
true and fair view of the net assets and financial position of
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Annual Financial Report 2024
the Group as of 31 December 2024, and of the results of
operations and cash flows of the Group for the financial year
2024 in accordance with the IFRS as adopted by the EU
and § 138 of the Austrian Insurance Supervision Act (VAG)
in combination with § 245a UGB. The Group management
report, including the consolidated sustainability statement,
is consistent with the consolidated financial statements. In
addition, in accordance with § 269 (3) UGB, KPMG has
determined that the 2024 consolidated Corporate Gover-
nance Report has been prepared.
The final results of the review by the Supervisory Board also
provided no grounds for objection. The Supervisory Board
stated that it had nothing to add to the auditor’s reports for
the annual financial statements and consolidated financial
statements.
After thorough examination, the Supervisory Board there-
fore adopted a unanimous resolution to approve the 2024
annual financial statements prepared by the Managing
Board, not to raise any objections to the management report,
the 2024 consolidated financial statements and the Group
management report, including the consolidated non-finan-
cial report (sustainability statement) and the 2024 consoli-
dated Corporate Governance Report, and to agree with the
Managing Board’s proposal for the appropriation of profits.
The 2024 annual financial statements have therefore been
approved in accordance with § 96 (4) of the Austrian Stock
Corporation Act (AktG). The Supervisory Board proposes to
the General Meeting that it approves the Managing Board’s
proposed appropriation of profits and formally approves the
actions of the Managing Board and Supervisory Board.
Vienna, April 2025
The Supervisory Board:
Rudolf Ertl (Chairman)
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We declare to the best of our knowledge that the consolidated financial statements prepared in accordance with applicable
accounting standards give a true and fair view of the Group’s net assets, financial position and results of operations, that
the Group management report presents the business development, result and position of the Group so as to give a true
and fair view of its net assets, financial position and results of operations. The Group management report describes the
The present consolidated financial statements for the financial year 2024 were approved for publication by a resolution of
the Managing Board on
25 March 2025.
Hartwig Löger
General Manager (CEO),
Chairman of the Managing Board
Peter Höfinger
Deputy General Manager,
Deputy Chairman of the Managing Board
Liane Hirner
CFRO, Member of
the Managing Board
Gerhard Lahner
COO, Member of
the Managing Board
Gábor Lehel
CIO, Member of
the Managing Board
Harald Riener
Member of
the Managing Board
Christoph Rath
Deputy Member of
the Managing Board
D
eclaration by the Managing Board
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Annual Financial Report 2024
REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
Audit Opinion
We have audited the consolidated financial statements of
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe, Vienna, Austria,
and its subsidiaries ("the Group"), which comprise the Consolidated Balance Sheet as of 31 December 2024, the
Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated Cash Flow
Statement and the Consolidated Statement of Changes in Equity for the year then ended, and the Notes to the Consolidated
Financial Statements.
In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position
of the Group as of 31 December 2024, and its consolidated financial performance and consolidated cash flows for the year
then ended in accordance with International Financial Reporting Standards (IFRSs) as adopted by the EU, the additional
requirements pursuant to Section 245a UGB (Austrian Commercial Code) as well as other legal or regulatory requirements.
Basis for our Opinion
We conducted our audit in accordance with the Regulation (EU) No. 537/2014 ("AP Regulation") and Austrian Standards
on Auditing. These standards require the audit to be conducted in accordance with International Standards on Auditing
(ISAs). Our responsibilities under those standards are further described in the "Auditor’s Responsibilities" section of our
report. We are independent of the audited Group in accordance with Austrian company law and professional regulations,
and we have fulfilled our other responsibilities under those relevant ethical requirements. We believe that the audit evidence
we have obtained up to the date of the auditor’s report is sufficient and appropriate to provide a basis for our audit opinion
on this date.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
consolidated financial statements. These matters were addressed in the context of our audit of the consolidated financial
statements as a whole, however, we do not provide a separate opinion thereon.
RECOVERABILITY OF GOODWILL
Refer to notes 3. Goodwill on pages 180ff, Material estimates and discretionary decisions – 23.4. Impairment of goodwill
on page 223 and Accounting policies – 24.5. Goodwill on pages 250ff.
Risk for the Consolidated Financial Statements
The recoverability of goodwill recognized in the Consolidated Financial Statements of the Vienna Insurance Group
amounting to EUR 1,239.9 million, is monitored separately at country level. At least once a year and in case of a triggering
event on an ad hoc basis Vienna Insurance Group performs a recoverability test (the so-called impairment test) of the
recorded goodwill amounts.
Auditor’s Report
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Impairment testing of goodwill is complex and based on a number of estimates and discretionary factors. Those factors
include in particular the expected future cash flows of the individual countries, which are primarily based on past experience
as well as on the management’s assessment of the expected market environment and the future business development.
Other factors are the assumed long-term growth rate as well as the underlying region-specific costs of capital.
Our Response
We have carried out the following main audit procedures in connection with the recoverability of goodwill:
– We have assessed the appropriateness of key assumptions, of discretionary decisions and of the valuation method
applied for impairment testing.
– We have reconciled the expected future cash flows used in the calculation with the strategic business planning
approved by the management. We used analytical procedures to verify the plausibility of the detailed planning for future
years.
– Furthermore, we have dealt with the key planning assumptions and analysed consistency of the assumptions regarding
the market development to general and sector-specific market expectations.
– We have backtested the consistency of planning data using information from prior periods.
– Given that minor changes in the applied cost of capital rate significantly impact the recoverable amount of the cash
generating units, we have, together with our valuation specialists, assessed the determination of the applied cost of
capital rate and comprehended the derivation of the underlying parameters.
– By means of our own sensitivity analysis we have determined whether the tested book values are still sufficiently covered
by the recoverable amounts in case of possible changes in the assumptions within a realistic range.
– Additionally, we have assessed whether the disclosures in the notes with respect to the recoverability of goodwill are
appropriate.
ADEQUACY OF INSURANCE CONTRACTS ASSETS AND LIABILITIES ISSUED
Refer to notes 1. Insurance contracts on pages 138ff, Material estimates and discretionary decisions – 23.1. (Re-) insurance
contracts on pages 218ff and Accounting policies – 24.3. (Re-) insurance contracts on pages 227ff.
Risk for the Consolidated Financial Statements
The recognized insurance contracts assets issued as of the balance sheet date amount to 299.9 million EUR and insurance
contracts liabilities issued amount to 39,598.1 million EUR. The valuation of insurance contract liabilities is complex. The
assumptions underlying the valuation rely on numerous estimates and discretionary factors.
The uncertainties associated with these assumptions pose a risk to the financial statements, as changes in the assumptions
can have significant impacts on the amount of liabilities and the result of the period.
Our Response
In our audit of the adequacy of insurance contract assets and liabilities issued our own actuaries and IT specialists were
part of the audit team. We performed the following significant audit procedures:
– We gained an understanding of the processes and internal controls implemented in the company and tested the
effectiveness of selected internal controls.
– We tested the general IT controls of the relevant systems.
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Annual Financial Report 2024
– We examined the adequacy of significant assumptions, judgments, and the applied valuation and calculation models.
– For Non-life insurance, we conducted actuarial recalculations of the provision for outstanding claims in samples.
– For the valuation models “General Measurement Model” and “Variable Fee Approach” we also performed recalculations
of the rollforward of the Contractual Service Margin in samples.
– Finally, we evaluated the adequacy of the disclosures in the consolidated financial statements regarding insurance
contracts assets and liabilities issued.
Other Information
Management is responsible for other information. Other information is all information provided in the annual report, other
than the consolidated financial statements, the group management report and the auditor’s report.
Our opinion on the consolidated financial statements does not cover other information and we do not provide any kind of
assurance thereon.
In conjunction with our audit, it is our responsibility to read this other information and to assess whether, based on
knowledge gained during our audit, it contains any material inconsistencies with the consolidated financial statements or
any apparent material misstatement of fact. If we conclude that there is a material misstatement of fact in other information,
we must report that fact. We have nothing to report in this regard.
Responsibilities of Management and the Audit Committee for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance
with International Financial Reporting Standards (IFRSs) as adopted by the EU, the additional requirements pursuant to
Section 245a UGB (Austrian Commercial Code) as well as other legal or regulatory requirements and for such internal
controls as management determines are necessary to enable the preparation of consolidated financial statements that are
free from material misstatement, whether due to fraud or error.
Management is also responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting, unless management either intents to
liquidate the Group or to cease operations, or has no realistic alternative but to do so.
The audit committee is responsible for overseeing the Group’s financial reporting process.
Auditor’s Responsibilities
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our audit opinion. Reasonable
assurance represents a high level of assurance, but provides no guarantee that an audit conducted in accordance with the AP
Regulation and Austrian Standards on Auditing (and therefore ISAs), will always detect a material misstatement, if any.
Misstatements may result from fraud or error and are considered material if, individually or in aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
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As part of an audit in accordance with the AP Regulation and Austrian Standards on Auditing, we exercise professional
judgment and maintain professional skepticism throughout the audit.
Moreover:
– We identify and assess the risks of material misstatement in the consolidated financial statements, whether due to
fraud or error, we design and perform audit procedures responsive to those risks and obtain sufficient and appropriate
audit evidence to serve as a basis for our audit opinion. The risk of not detecting material misstatements resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations or override of internal control.
– We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's
internal control.
– We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
– We conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our audit report to the respective note in the consolidated financial statements. If
such disclosures are not appropriate, we will modify our audit opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to
continue as a going concern.
– We evaluate the overall presentation, structure and content of the consolidated financial statements, including the notes,
and whether the consolidated financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
– We plan and conduct the audit of the consolidated financial statements in order to obtain sufficient appropriate audit
evidence on the financial information of the components within the Group, in order to form an audit opinion. We are
responsible for directing, supervising and reviewing the audit activities carried out for the purposes of auditing the
consolidated financial statements. We remain solely responsible for our audit opinion.
– We communicate with the audit committee regarding, amongst other matters, the planned scope and timing of our audit
as well as significant findings, including any significant deficiencies in internal control that we identify during our audit.
– We communicate to the audit committee that we have complied with the relevant professional requirements in respect
of our independence, that we will report any relationships and other events that could reasonably affect our
independence and, where appropriate, the related safeguards.
– From the matters communicated with the audit committee, we determine those matters that were of most significance
in the audit i.e. key audit matters. We describe these key audit matters in our auditor’s report unless laws or other legal
regulations preclude public disclosure about the matter or when in very rare cases, we determine that a matter should
not be included in our audit report because the negative consequences of doing so would reasonably be expected to
outweigh the public benefits of such communication.
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REPORT ON OTHER LEGAL REQUIREMENTS
Group Management Report
In accordance with Austrian company law, the group management report is to be audited as to whether it is consistent with
the consolidated financial statements and prepared in accordance with legal requirements.
It is our responsibility to determine whether the consolidated non-financial statement has been prepared as part of the
group management report, to read and assess whether, based on knowledge gained during our audit, it contains any
material inconsistencies with the consolidated financial statements or any apparent material misstatement of fact.
Management is responsible for the preparation of the group management report in accordance with Austrian company law
and other legal or regulatory requirements.
We have conducted our audit in accordance with generally accepted standards on the audit of group management reports
as applied in Austria.
OPINION
In our opinion, the group management report is consistent with the consolidated financial statements and has been
prepared in accordance with legal requirements. The disclosures pursuant to Section 243a UGB (Austrian Commercial
Code) are appropriate.
STATEMENT
Based on our knowledge gained in the course of the audit of the consolidated financial statements and our understanding
of the Group and its environment, we did not note any material misstatements in the group management report.
Additional Information in accordance with Article 10 AP Regulation
We were elected as auditors at the Annual General Meeting on 26 May 2023 and were appointed by the supervisory
board on 20 June 2023 to audit the financial statements of the Vienna Insurance Group for the financial year ending on
31 December 2024.
On 24 May 2024 we were elected as auditors for the financial year ending on 31 December 2025 and were appointed by
the supervisory board on 26 June 2024 to audit the financial statements.
We have been auditors of the Vienna Insurance Group, without interruption, since the consolidated financial statements of
31 December 2013.
We declare that our opinion expressed in the "Report on the Consolidated Financial Statements" section of our report is
consistent with our additional report to the Audit Committee, in accordance with Article 11 AP Regulation.
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We declare that we have not provided any prohibited non-audit services (Article 5 Paragraph 1 AP Regulation) and that
we have ensured our independence throughout the course of the audit, from the audited Group.
ENGAGEMENT PARTNER
The engagement partner is Mr Thomas Smrekar.
Vienna, 25 March 2025
KPMG Austria GmbH
Wirtschaftsprüfungs- und Steuerberatungsgesellschaft
signed by:
Thomas Smrekar
Wirtschaftsprüfer
(Austrian Chartered Accountant)
This report is a translation of the original report in German, which is solely valid.
The consolidated financial statements together with our auditor's opinion may only be published if the consolidated
financial statements and the group management report are identical with the audited version attached to this report.
Section 281 Paragraph 2 UGB (Austrian Commercial Code) applies.
.
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INDEPENDENT ASSURANCE REPORT ON THE NON-FINANCIAL REPORTING PURSUANT TO SECTION 243B AND 267A UGB
We have performed a limited assurance engagement in the connection with the consolidated non-financial reporting
pursuant to Section 243b and 267a UGB (hereafter “non-financial reporting”) in the Group management report in section
Consolidated non-financial report for the financial year 2024 of the
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe, Vienna,
(hereinafter also referred to as “VIG” or “Company”).
CONCLUSION WITH LIMITED ASSURANCE
Based on our procedures performed and the evidence we have obtained, nothing has come to our attention that causes
us to believe that the consolidated non-financial reporting pursuant to Section 243b and 267a UGB (hereafter “non-financial
reporting”) in the Group management report in section Consolidated non-financial report is not prepared, in all material
respects, in compliance with:
• the statutory provisions of Art. 19a and 29a of Directive 2013/34/EU,
• the statutory provisions of the Austrian Sustainability and Diversity Improvement Act (Sections 243b and 267a of the
Austrian Commercial Code (UGB)),
• the reporting requirements according to Article 8 of the EU Regulation 2020/852 (hereinafter referred to as “EU-
Taxonomy-Regulation”),
• the requirements of the delegated regulation (EU) 2023/2772 (hereinafter referred to as “ESRS”), and
• the process carried out by the company to identify the information to be included in the consolidated non-financial
reporting in accordance with the legal requirements and standards for non-financial reporting (hereinafter referred to as
“double materiality assessment process”); with the description set out in disclosure ESRS 2 - General Disclosure
Requirements IRO-1 - Description of the process to identify and assess material impacts, risks and opportunities
in the currently valid version.
BASIS FOR CONCLUSION WITH LIMITED ASSURANCE
Our limited assurance engagement on the non-financial reporting was conducted in accordance with the statutory
requirements and Austrian Standards on Other Assurance Engagements and additional expert opinions as well as the
International Standard on Assurance Engagements (ISAE 3000 (Revised) applicable to such engagements. An independent
assurance engagement with the purpose of expressing a conclusion with limited assurance ("limited assurance
engagement") is substantially less in scope than an independent assurance engagement with the purpose of expressing a
conclusion with reasonable assurance (“reasonable assurance enagement"), thus providing reduced assurance.
Our responsibility under those requirements and standards is further described in the “Responsibility of the auditor of the
consolidated non-financial reporting” section of our assurance report.
We are independent the Group in accordance with the Austrian professional regulations and Art. 22 ff. AP- RL and we have
fulfilled our other ethical responsibilities in accordance with these requirements.
Independent assurance report
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Our audit firm is subject to the provisions of KSW-PRL 2022, which essentially corresponds to the requirements of ISQM
1, and applies a comprehensive quality management system, including documented policies and procedures for
compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
We believe that the evidence we have obtained up to the date of the limited assurance report is sufficient and appropriate
to provide a basis for our conclusion as of that date.
OTHER INFORMATION
Management is responsible for the other information. The other information comprises all information included in the Annual
Report but does not include non-financial reporting and our independent assurance report.
Our conclusion on the non-financial reporting does not cover the other information and we will not express any form of
assurance conclusion thereon. In connection with our limited assurance engagement on the non-financial reporting, our
responsibility is to read the other information when available and, in doing so, consider whether the other information is
materially inconsistent with the non-financial reporting or our knowledge obtained in the limited assurance engagement or
otherwise appears to be misstated. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report in this context.
RESPONSIBILITY OF THE MANAGEMENT
Management is responsible for the preparation of a non- financial reporting including the determination and implementation of
the double materiality assessment processes in accordance with legal requirements and standards. This responsibility includes:
• identification of the actual and potential impacts, as well as the risks and opportunities associated with sustainability
aspects and assessing the materiality of these impacts, risks and opportunities,
• preparing of a non-financial reporting in compliance with the requirements of the statutory provisions of the Austrian
Sustainability and Diversity Improvement Act pursuant to section 243b and 267a UGB, and the statutory provisions of
Art. 19a and 29a of Directive 2013/34/EU,] including compliance with the ESRS,
• inclusion of disclosures in the [consolidated] non-financial reporting in accordance with the EU-Taxonomy-Regulation,
and
• designing, implementing and maintaining of internal controls that management consider relevant to enable the
preparation of sustainability report that is free from material misstatement, whether due to fraud or error; and to enable
the double materiality assessment process to be carried out in accordance with the requirements of the ESRS.
This responsibility includes also the selection and application of appropriate methods for non-financial reporting and the
making of assumptions and estimates for individual sustainability disclosures that are reasonable in the circumstances.
INHERENT LIMITATIONS IN THE PREPARATION OF NON-FINANCIAL REPORTING
When reporting forward-looking information, the company is obliged to prepare this forward-looking information based on
disclosed assumptions about events that could occur in the future and possible future actions by the company. Actual
results are likely to differ as expected events often do not occur as assumed.
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When determining the disclosures in accordance with the EU-Taxonomy-Regulation, the management is obliged to interpret
undefined legal terms. Undefined legal terms can be interpreted differently, also regarding the legal conformity of their
interpretation and are therefore subject to uncertainties.
RESPONSIBILITY OF THE AUDITOR OF THE CONSOLIDATED NON-FINANCIAL REPORTING
Our objectives are to plan and perform a limited assurance engagement to obtain limited assurance about whether the
non-financial reporting, including the procedures performed to determine the information to be reported and the reporting
in accordance with the EU-Taxonomy, is free from material misstatement, whether due to fraud or error, and to issue a
limited assurance report that includes our conclusion. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken based on this non-financial reporting.
In a limited assurance engagement, we exercise professional judgement and maintain professional scepticism throughout
the assurance engagement.
Our responsibilities include
• performing risk-related assurance procedures, including obtaining an understanding of internal controls relevant to the
engagement, to identify disclosures where material misstatements are likely to arise, whether due to fraud or error, but
not for the purpose of expressing a conclusion on the effectiveness of the Group’s internal controls;
• design and perform assurance procedures responsive to disclosures in the non-financial reporting, where material
misstatements are likely to arise. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
PROCEDURES - SUMMARY OF THE WORK PERFORMED
A limited assurance engagement involves performing procedures to obtain evidence about the non-financial reporting.
Our engagement does not include the assurance of prior period figures, printed interviews or other additional voluntary
information of the company, including references to websites or other additional reporting formats of the company.
The nature, timing and extent of assurance procedures selected depend on professional judgement, including the
identification of disclosures likely to be materially misstated in the non-financial reporting, whether due to fraud or error.
In conducting our limited assurance engagement on the non-financial reporting, we proceed as follows:
• We obtain an understanding of the company's processes relevant to the preparation of non-financial reporting.
• We assess whether all relevant information identified by the double materiality assessment process carried out by the
company has been included in the non-financial reporting.
• We evaluate whether the structure and presentation of the non-financial reporting is in compliance with the
requirements of the statutory provisions of the Austrian Sustainability and Diversity Improvement Act as of section 243b
and 267a UGB, including the ESRS.
• We perform inquiries of relevant personnel and analytical procedures on selected disclosures in the non-financial
reporting.
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• We perform risk-oriented assurance procedures, on a sample basis, on selected disclosures in the non-financial
reporting.
• We reconcile selected disclosures in the non-financial reporting with the corresponding disclosures in the consolidated
financial statements and Group management report.
• We obtain evidence on the methods for developing estimates and forward-looking information.
• We obtain an understanding of the process to identify taxonomy-eligible and taxonomy-aligned economic activities and
the corresponding disclosures in non-financial reporting.
LIMITATION OF LIABILITY, PUBLICATION AND TERMS OF ENGAGEMENT
This limited assurance engagement is a volunatary assurance engagement. We issue this conclusion based on the
assurance contract concluded with the client, which is also based, with effect on third parties, on the “General Conditions
of Contract for the Public Accounting Professions” issued by the Chamber of Tax Advisors and Auditors. These can be
viewed online on the website of the Chamber of Tax Advisors and Auditors (currently at
https://ksw.or.at/berufsrecht/mandatsverhaeltnis/). With regard to our responsibility and liability under the contractual
relationship, point 7 of the AAB 2018 applies.
Our assurance report may only be distributed to third parties together with the consolidated non-financial reporting
contained in the Consolidated non-financial report section of the group management report and only in complete and
unabridged form.
AUDITOR RESPONSIBLE FOR THE ASSURANCE ENGAGEMENT
The auditor responsible for the assurance engagement of the non-financial reporting is Thomas Smrekar.
Vienna, 25 March 2025
KPMG Austria GmbH
Wirtschaftsprüfungs- und Steuerberatungsgesellschaft
signed by:
Thomas Smrekar
Wirtschaftsprüfer
(Austrian Chartered Accountant)
This report is a translation of the original report in German, which is solely valid.
308 Annual Financial Report 2024
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Management
report
to the Annual financial statements
in accordance with the Austrian
Commercial Code (
UGB)
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MORE DIVERSITY
Together, the VIG companies form the leading insurance group in Central and Eastern Europe with the registered office of
VIG Holding in Vienna. VIG Holding primarily focuses on managerial tasks for the Group. It also operates as the reinsurer
for the Group as well as in the international corporate business.
The Group actively practices the fundamental value of diversity. This is reflected in the decentralised structure and the great
scope for decision-making enjoyed by the local insurance companies. This makes Vienna Insurance Group flexible and
innovative, and therefore resilient. This resilience and stability are essential for creating sustainable value. VIG attaches great
importance to a local multi-brand policy with regionally established brands and local entrepreneurship. This is because it is
the individual strengths of these brands and the local know-how that enable customer focus and make the Group successful.
Vienna Insurance Group sees Central and Eastern Europe as its home market and is pursuing a long-term business strategy
in its markets that is geared to sustainable profitability and continuous earnings growth.
ORGANISATION AND OBJECTIVES
Vienna Insurance Group aims to further expand its leading market position in Central and Eastern Europe and, in doing so,
relies on close cooperation within the Group. At the same time, Vienna Insurance Group sees itself as a reliable and resilient
partner for its stakeholders. With approximately 30,000 employees, Vienna Insurance Group serves around 33 million
customers.
VIG Holding uses a number of control units, e.g. Risk Management, Asset Management, Controlling, and Strategy, to
maintain close contact with the Group companies and to act as an interface and promoter of the implementation of local
entrepreneurship. An intensive collaborative exchange between all Group companies in 30 countries is a key element of
local entrepreneurship through which the interests of the individual companies and the Group as a whole are pursued. The
CO³ department broadens the interaction and exchange of experiences between the Group companies and provides
strategic input for the positioning (internal and external appearance/branding, PR) of the Group.
In the VIG 25 strategic programme, sustainable value creation and the expansion of the leading position in the CEE region
were formulated as specific objectives for the entire Group. A key driver in achieving these objectives is the integration of
sustainable approaches to society and the environment into the Group’s business and operating model. To this end,
sustainability issues are pursued in six spheres of activity, namely investment, underwriting, office operations, employees,
customers and society.
FINANCIAL STRENGTH & CREDIT RATING
Vienna Insurance Group has an “A+” rating with a stable outlook from the internationally recognised rating agency Standard
& Poor’s. This means that Vienna Insurance Group continues to be one of the highest-rated companies in the Vienna Stock
Exchange’s ATX index. At the end of 2024, VIG Holding’s solvency ratio was 397.9%, which represents its stable solvency
even in economically challenging times.
Besides the robust capital resources, the rating agency also highlighted the market leadership of VIG in Austria and several
countries in Central and Eastern Europe in its July 2024 report. The broadly diversified insurance portfolio with clear sales
capacity and the bancassurance collaboration with Erste Group were noted as well. A further positive factor highlighted
was the conservative reinsurance strategy, which limits the Group’s NatCat losses arising from various adverse weather
events in Austria and CEE.
Company profile
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Vienna Insurance Group shares are listed on the Vienna, Prague and Budapest stock exchanges. Around 72% of VIG
shares are held by the Wiener Städtische Versicherungsverein, the stable and long-term main shareholder. The remaining
shares are in free float.
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Annual Financial Report 2024
VIG HOLDING BUSINESS DEVELOPMENT
Premiums written, net earned premiums, expenses for claims and insurance benefits, administrative expenses and
reinsurance balance had the following breakdown for property and casualty insurance in 2024 (and in the same period in
2023):
2024
2023
Direct business
Indirect business
Total
Direct business
Indirect business
Total
in EUR '000
Premiums written 321,820
1,407,666
1,729,486
313,908
1,355,850
1,669,758
Net earned premiums 315,592
1,392,037
1,707,629
299,672
1,304,678
1,604,350
Expenses for claims and insurance
benefits
243,258
944,889
1,188,147
217,324
885,959
1,103,283
Administrative expenses 24,935
445,531
470,466
22,997
448,737
471,734
Reinsurance balance -29,361
-10,494
-39,855
-50,706
-10,244
-60,950
The reinsurance balance is composed of net earned reinsurance premiums, effective reinsurance claims and reinsurance
commissions.
FINANCIAL PERFORMANCE INDICATORS
Premium income
In 2024, VIG Holding generated a total premium volume of EUR 1,729.49 million, representing a year-on-year increase of
3.6%. Direct premiums written (corporate business) increased year-on-year by 2.5% to EUR 321.82 million. Premium
income from indirect business (assumed reinsurance) was EUR 1,407.67 million, 3.8% higher than the previous year. The
value of assumed reinsurance includes EUR 27,291,000 (EUR 25,016,000) for health insurance and EUR 1,779,000
(EUR 103,000) for life insurance.
Of the premiums written, EUR 1,508.13 million (2023: EUR 1,520.54 million) were retained by VIG Holding. In 2024,
reinsurers were ceded EUR 221.35 million (2023: EUR 149.21 million). Gross earned premiums were EUR 1,707.63 million
(2023: EUR 1,604.35 million). Net earned premiums increased by EUR 48.90 million to EUR 1,505.34 million.
Expenses for claims and insurance benefits
Gross expenses for claims and insurance benefits were EUR 1,188.15 million in 2024 (2023: EUR 1,103.28 million). Of this
amount, EUR 243.26 million (2023: EUR 217.32 million) was attributable to corporate business, EUR 25.93 million more
than the previous year.
The gross claims ratio for direct business (excluding health and life insurance) increased from 71.9% to 76.2%. Expenses
for claims and insurance benefits for assumed reinsurance rose 8.4% to EUR 921.80 million. The gross claims ratio for
indirect business was 67.6% (2023: 66.5%). After deducting reinsurance of EUR 149.42 million (2023: EUR 81.91 million),
expenses for claims and insurance benefits were EUR 1,015.64 million (2023: EUR 985.73 million).
Administrative expenses
In 2024, administrative expenses were EUR 470.47 million, 0.3% lower than the previous year (2023: EUR 471.73 million).
This change was primarily due to the decrease in commissions for indirect business. EUR 24.94 million of the administrative
expenses were for the corporate business and EUR 445.53 million for the reinsurance business. After reinsurance
commissions for ceded reinsurance business, EUR 457.45 million in administrative expenses remained for VIG Holding.
This was an increase of EUR 9.23 million compared to the previous year.
Management report
2024
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Combined ratio
VIG Holding’s combined ratio was 99.8% in 2024 (2023: 101.2%), and 95.0% for direct business (corporate business)
(2023: 95.0%). This ratio is calculated as the sum of all insurance service expenses and income plus net payments for
claims and insurance benefits, including the net change in underwriting provisions, divided by net earned premiums for
property and casualty insurance.
Financial result
VIG Holding had a financial result of EUR 283.13 million (2023: EUR 378.91 million). Impairment of shares in affiliated
companies was EUR 404.55 million. (2023: EUR 164.41 million). These mainly concerned companies from Hungary and
the Baltic States.
2024
2023
in EUR '000
Land and buildings 6,595
8,537
Investments in affiliated companies and participations 372,201
472,045
Other investments 60,941
47,988
Total income (net) 439,737
528,570
Other investment and interest income 52,564
83,741
Expenses for asset management -139,930
-138,527
Interest expenses -60,416
-89,851
Other investment expenses -8,824
-5,021
Investment profit according to income statement 283,131
378,912
Result from ordinary activities
VIG Holding earned a result from ordinary activities of EUR 290.77 million in 2024 (2023: EUR 348.04 million).
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Annual Financial Report 2024
Investments
As of 31 December 2024, investments, including liquid assets, were EUR 7,595.66 million (2023: EUR 6,855.71 million).
Deposits were reduced to EUR 403.10 million in 2024 (2023: EUR 839.9 million), since the structure of some of the
reinsurance contracts taken over by VIG Holding has changed. Of the investments at the end of 2024 were 68.3% (2023:
76.3%) shares in affiliated companies and participations, 12.1% (2023: 8.0%) bonds (including pension funds), 0.5% (2023:
0.1%) funds, 2.1% (2023: 2.3%) loans, 2.8% (2023: 2.6%) land and buildings and 14.2% (2023: 10.7%) bank balances
and cash on hand.
Detailed information is provided on pages 335 and 336 of the annual financial statements.
BREAKDOWN OF INVESTMENTS IN 2024
12,1% bonds (8% )
2,8% land and buildings (2,6%)
14,2% bank balances and cash
on hand (10,7% )
2,1% loans (2,3%)
68,3% shares in affiliated
companies and participations (76,3%)
2023 values in parantheses
0,5% fund (0,1%)
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Underwriting provisions
Underwriting provisions were EUR 1,887.53 million as of 31 December 2024 (2023: EUR 1,789.01 million). This corre-
sponds to a year-on-year increase of 5.5%, which was primarily due to provisions for outstanding claims arising from direct
business. The reinsurers’ share was EUR 323.83 million (2023: EUR 243.51 million).
Solvency ratio
VIG Holding’s solvency ratio of 397.9% is high due to an outstanding endowment of capital resources combined with a low
capital requirement and also results from the group´s function as a holding company.
NON-FINANCIAL PERFORMANCE INDICATORS
In its consolidated management report, VIG Holding reports on sustainability information at Group level. This sustainability
report can be downloaded free of charge from https://group.vig/investor-relations/ergebnisse-berichte/downloads/.
Research and development
Although VIG companies do not perform any research activities within the meaning of Section 243 (3) (2) UGB, they
contribute their expertise to the development of insurance-specific software models. VIG Holding and – for projects – the
VIG companies also cooperate with Digital Impact Labs Leipzig, Plug & Play and VENPACE, a start-up initiative
(investment and corporate building) that is located in Germany and is jointly funded with other insurance companies, in
order to identify technological developments in the market more quickly and internalise them if necessary. viesure was
also established for this purpose as an internal “innovation hub” focusing mainly on Austria. Since December 2022,
investment has also been made in the APEX Deep Tech Fund, which focuses on tech start-ups, and VIG offers support in
identifying and researching innovations at an early stage in order to use these in the Group’s business model to the
benefit of its customers. An example of such innovation is the use of sensors and satellite technology as an early warning
system for potential forest fires. VIG Group also indirectly promotes research activities through its participations in xista
science ventures to increase basic research in Austria and invIOS to support research into biotech and the fight against
cancer.
Other information
VIG Holding established three branch offices in financial year 2019, extending the business operations of VIG Insurance
Group into Northern Europe. The Group therefore operates branches located in Copenhagen, Oslo and Stockholm.
Please see the notes to the financial statements (I. Summary of significant accounting policies) for information on the
financial instruments used.
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RISK REPORT
ORGANISATION OF THE RISK MANAGEMENT SYSTEM
The risk management system is integrated into VIG Holding’s organisational structure. Organisational departments of central
importance to the risk management system are shown in the graph below.
Managing Board
The full Managing Board bears responsibility for the risk management system and particularly for the following topics:
• Development and promotion of the risk management system,
• Definition and communication of the risk strategy, including risk tolerances and risk appetite,
• Approval of central risk management guidelines,
• Consideration of the risk situation in strategic decisions.
Risk Management
The department manager exercises the risk management function prescribed by Solvency II at the Group level and individual
level.
The main responsibilities of the department include recording, assessing and managing the overall risk profile of the Group
and calculating solvency. The department provides a Group-wide risk aggregation solution for this purpose with extensive
reporting and partial modelling approaches for calculating solvency capital. Other important tasks of this department include
the calculation of the solvency capital requirement during the year, the analysis of the risk-bearing capacity using an internally
developed analysis tool and the review of the internal control system.
This department also supports the Managing Board in the updating of the central risk strategy, the further development of
the risk organisation and other risk management topics.
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Internal Audit
The internal audit function required by Solvency II is exercised by the manager of this department. The Internal Audit
Department periodically monitors operational and business processes, the internal control system of all operating
departments of the company, including compliance with legal requirements, and the effectiveness and appropriateness of
risk management.
Compliance (incl. AML)
It coordinates and supports all companies in VIG Insurance Group and their compliance departments in compliance-related
matters. The manager of this department also exercises the compliance function required by Solvency II. Thus, the
department is particularly responsible for tasks related to the compliance function.
Group Actuarial, Planning & Controlling
The actuarial function required by Solvency II is exercised by the manager of this department. Thus, the department is
particularly responsible for the tasks related to the actuarial function. The department also handles actuarial modelling in
Prophet for the Group’s life and health insurance business and in ResQ for the Group’s non-life insurance business. The
models generate cash flow projections for the purpose of measuring the value of underwriting provisions pursuant to
Solvency II and IFRS 17. The department supports the analysis of IFRS 17 reserves, as well as actuarial cooperation and
networking within VIG Insurance Group.
The department also coordinates business planning over a 3-year horizon. The standardised reporting system covers the
analysis of key ratios and budget-actual variances related to the budgets, forecasts and current performance of VIG Holding
and its insurance participations. Regular monthly premium reports, quarterly reports for each company (aggregated at the
country and VIG Insurance Group level) and cost reports are prepared.
Asset Management (incl. Real Estate)
One of the main tasks of the department is to define the strategic objectives of the capital investments of each individual
insurance company and for VIG Insurance Group as a whole, as well as to define the investment strategy and investment
process with the goal of ensuring maximum, but also secured, ongoing income while also making use of opportunities to
increase the value of the capital investments. Guidelines and limits are used to manage investments. Regular reports are
also provided for investments, limits and income.
Group Finance & Regulatory Reporting
One of the main tasks of this department is to prepare the consolidated financial statements according to IFRS, including
reporting in accordance with ESRS in the Group management report, as well as the related regulatory reports. This
department is also responsible for supporting the domestic and foreign VIG Insurance Group in all matters of accounting,
the preparation of special analysis reports and the reporting of actual performance numbers to the Managing Board, the
Supervisory Board and Investor Relations. Other core tasks include matters related to Group Tax & Transfer Pricing, the
calculation of own funds on the (Group) solvency balance sheet and the supervision of subsidiary ledgers rolled out to all
Group companies and the central general ledger.
Group Treasury & Capital Management
Important tasks of this department include the management of liquidity and the planning and conception of capital raising
and capital management measures, including the execution of the company’s own capital market transactions, as well as
the management of the portfolio of subordinated capital bonds and other debt instruments.
Process & Project Management
This department works to ensure the clarity, transparency and understanding of business processes so that the individual
companies of VIG Insurance Group and their employees can better achieve their goals. To this end, the department provides
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Annual Financial Report 2024
coordination and support in the three main areas of project management, process management and productivity
management.
Reinsurance
The department coordinates and assists all companies of VIG Insurance Group and their reinsurance departments with
reinsurance matters in the non-life business (property and casualty, third party liability and accident insurance) by preparing
and applying guidelines. Additionally, the department administers all Group-wide reinsurance programmes in non-life
insurance lines of business. The highest goal is to establish a security network through which all companies of
VIG Insurance Group are sustainably protected against the adverse effects of natural disasters, major losses and the
negative developments of entire insurance portfolios.
Subsidiaries & Transaction Management
This department is fundamentally responsible for safeguarding the interests of the company with respect to all participations
and for providing and processing information about participations and participation projects in a manner suited to the given
decision-making situation.
VIG IT
This department is responsible for IT management at the level of VIG Holding. It comprises the departments of Group
Information & Cyber Security, Procurement, Architecture & Innovation, International Bank Cooperation Management and IT
Strategy & Governance.
Finance and Accounting
One of the department’s main tasks is to prepare the annual financial statements of VIG Holding. The department is therefore
responsible for the accounting and balancing of accounts for VIG Holding and for reporting the figures accordingly.
RISK PROFILE
VIG Holding’s risk profile is broken down into the 10 main risk categories below:
Market risk
describes the risk of losses due to changes in market prices. Fluctuations in interest rates, share prices and
exchange rates and changes in the market value of real estate and participations can have a negative effect on the value
of investments and liabilities.
Market risk is by far VIG Holding’s most important risk exposure, in particular the equity and currency risk resulting from its
primary activity, holding participations in insurance companies.
In addition to demographic risks,
life underwriting risk
also includes negative effects due to changes in cancellation
behaviour and cost risks and covers the following sub-modules: mortality, longevity, disability, costs, revision and
cancellation as well as disaster risk.
Non-life insurance underwriting risk is the risk that insured losses and costs will be higher than income. It essentially consists
of the following components:
• Risk from extreme loss events, particularly natural disasters
• Risk from unprofitable contracts due to inappropriate premium structures
• Risk from claims that have already occurred but are not sufficiently known or reserved
• Cancellation risk (decline in the contribution margin following a sharp fall in the portfolio)
• Cost risk
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Health underwriting risk
is broken down into health underwriting risk by type of non-life insurance and by type of life
insurance, depending on the structure of the contract. The risk by type of life insurance is not relevant for VIG Holding. The
health underwriting risk by type of non-life insurance corresponds to the accident insurance underwritten through
reinsurance and includes the traditional non-life underwriting risks. Losses can arise from cumulative events with a large
number of fatalities and injuries, for example, but these are reinsured accordingly.
Credit risk/counterparty default risk
is the risk of a loss or an unfavourable change in the value of assets and financial
instruments resulting from the unexpected default of a counterparty or debtor. Credit risk is present both in capital
investments such as bonds, loans and deposits and fundamentally also in other receivables and cash deposits in banks.
Liquidity risk
is the risk that necessary funds can only be provided at additional cost in order to fulfil short and long-term
payment obligations that fall due. This includes losses associated with an asset/liability mismatch, for example.
Operational risk
describes the risk of losses in connection with business operations. These are caused by faulty internal
processes, inadequate controls, incorrect estimates or faulty models. Examples of operational risks are fraud by third parties,
failure of IT systems and human error.
Intangible asset risk
reflects the risk of loss or an unfavourable change in the value of intangible assets.
Strategic risk
includes unfavourable business performance as a result of incorrect business and investment decisions, poor
communication and implementation of corporate goals and a company’s inability to adapt to the economic environment.
Conflicting business objectives are also a strategic risk.
Reputation risk
is the risk of negative changes in business due to damage to a company’s reputation or that of its brands.
Reputational damage can shake the confidence of customers, investors or the company’s own employees in the business
and consequently lead to financial losses. Causes include incorrect advice when selling products, poor customer service,
misinformation to investors, negative media coverage, particularly in connection with sustainability or other non-financial
risks, and reputational damage that spreads from one company to another.
HANDLING OF SUSTAINABILITY RISKS
Sustainability risks are both risks to which the Company is exposed (outside-in perspective) and risks that have a potential
negative impact on society or the environment due to VIG’s business activities (inside-out perspective). These risks have
always been implicitly or, in some cases, explicitly taken into account as part of risk management.
To ensure a structured approach to the identification of sustainability risks in the Group and appropriately account for both
perspectives, a Group-wide risk catalogue with explicit reference to sustainability risks has additionally been prepared in
observance of the Guide to Handling Sustainability Risks published by the Austrian Financial Market Authority. The ESG-
specific risk catalogue includes at least those risks that were identified as material risks as part of the double materiality
assessment in accordance with ESRS (European Sustainability Reporting Standards). Furthermore, each of the identified
risks that has an impact on VIG is assigned to a specific VIG risk category.
The VIG (re)insurance companies, the pension funds and asset management companies regularly review this risk catalogue
for completeness as part of a standardised risk management process (“risk inventory”) and supplement it if necessary. All
VIG companies mentioned must evaluate the defined or newly added risks on a qualitative basis with regard to the risk and
further development and describe any mitigation measures.
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In the year under review, the sustainability risks were also identified and evaluated at VIG Holding as part of the risk inventory
and on the basis of the Group-wide risk catalogue. Overall, the analysis showed that VIG Holding’s sustainability risks are
currently at a low to medium level.
CLIMATE RISKS
Global warming is causing more extreme weather events. That presents additional challenges for insurance companies that
protect their customers from the financial consequences of damage caused by natural hazards. VIG has therefore increased
its knowledge of this subject considerably in the last few years. It conducts scenario analyses to gain an idea of how climate
change will affect claims development and therefore the insurance business. Regular internal risk analyses are also carried
out on the medium and long-term effects of climate change. The analyses related to the consequences of global warming
also pertain to transition risks, which are assessed primarily on a qualitative basis, and physical risks, which are additionally
subjected to detailed quantitative analysis.
Transition risks
refer to the risks arising as a result of the transition to a climate-neutral and resilient economy and society
and could lead to a devaluation of assets, including changes in the political and legal framework of the real economy (e.g.
introduction of a CO2 tax), technological developments (e.g. renewable energy, energy storage) and changes in consumer
behaviour.
Physical risks
of climate change arise directly from the consequences of climate changes, such as an increase in the global
average temperature and the associated occurrence of more frequent and more intensive natural disasters and extreme
weather events such as floods, heat waves and droughts, storms and hail.
Internal and external experts working together assess the probabilities of natural disasters and calculate the possible effects
in all key markets of VIG. They analyse scenarios involving three different temperature rises (1.5, 2.0 and 3.0 degrees
Celsius). The risk models applied are continually improved on the basis of new data, facts and insights such as the latest
scientific studies or newly constructed flood protection measures, for example.
The scenario analyses show that global warming can have material effects on the technical result for VIG Holding, especially
in the area of floods, but does not pose a significant risk to solvency. Winter storm events and hail events remain largely
unchanged, tending to be at a lower level.
REGULATORY FRAMEWORK
VIG Insurance Group is subject to (insurance) regulatory requirements in Austria and abroad. These requirements govern,
among other things:
the capital adequacy of insurance companies and insurance groups,
the admissibility of investments to secure underwriting provisions,
concessions from the various pension funds, insurance and asset management companies of VIG Group,
marketing activities and the sale of insurance contracts, and
policyholder cancellation rights.
Changes to the legal framework may require reorganisation and thus result in increased costs and duplications. Different,
or subsequently different, interpretations of legal texts, contradictory specifications and duplications can also lead to
increased effort on the part of the organisation and thus increased costs.
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RISKS FROM ACQUISITIONS AND MERGERS
In the past, VIG Holding has directly and indirectly acquired a number of companies in Central and Eastern Europe or
acquired participations in them. Mergers of subsidiaries are considered if the resulting synergy effects are greater than the
advantages of a diversified market presence.
Mergers and acquisitions often entail challenges with respect to corporate governance, organisation, processes and
financing. Such challenges include:
• the need to integrate the infrastructure of the acquired or merging company, including management information
systems and systems for risk management and controlling,
• the resolution of outstanding legal or regulatory issues and the related legal and compliance risks arising from the
merger or acquisition,
• the integration of marketing, customer service and product offerings,
• the integration of different corporate and management cultures, and
• the harmonisation of business and reporting processes and the consideration of Group requirements.
RISKS IN CONNECTION WITH THE GEOPOLITICAL SITUATION AND THE CURRENT MACROECONOMIC ENVIRONMENT
Despite the still ongoing war of aggression in Ukraine, the overall economic situation in Europe calmed down in the year
under review. After a prolonged period of stagnation, the EU economy returned to moderate growth, while inflation
continued to drop. A tentatively dynamic development in Eastern Europe is opposed by a very sluggish Germany, which is
likely to face major structural change, especially in the automotive industry. In this tense situation, Austria was not able to
escape the negative requirements from Germany.
The upcoming year will be marked by a very high degree of uncertainty concerning geopolitical developments as a direct
result of the US presidency. It is currently difficult to predict how the emerging increase in protectionism will affect economic
indicators (inflation, trade balances, etc.). Overall, higher volatility is expected on the main capital markets, which makes
this development one of the most significant risks for VIG.
INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM IN THE ACCOUNTING PROCESS
General structure and organisation
The internal control and risk management system (ICS) plays an important role in VIG Holding and is firmly anchored in the
organisational structural and process organisation of the Company. Responsibilities are clearly defined in the ICS by
ICS Group guidelines and extend from the overall responsibility of the Managing Board to establish an effective control
system and appropriate risk management, to the responsibility of middle management to ensure adequate risk control
infrastructure in the various areas, all the way to the individual employees, who are expected to perform their work
responsibly and proactively report and/or remedy potential risks, deficiencies and sources of errors.
The ICS itself is comprised of all measures and control activities used to minimise risks – particularly for the areas of
accounting and compliance, but also for other operational risks. It extends from specially established processes,
organisational units such as accounting and controlling, all the way to guidelines, regulations and individual controls within
processes, such as automated audits or use of the “four-eyes” principle.
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Important control elements in the accounting process
The documentation for the annual financial statement preparation process includes the important elements of the internal
control and risk management system that are present in the accounting process.
The controls documented there are used during the process to ensure that potential errors whose occurrence cannot be
completely ruled out in spite of the many additional functional and technical controls in existing IT systems (e.g. SAP) are
identified and corrected at an early stage in the reporting process.
This allows the following objectives of the annual financial statement process to be achieved:
• Completeness: all transactions during the reporting period are recorded in full.
• Existence: all reported assets and liabilities exist on the balance sheet date.
• Accuracy: all transactions recorded in the financial statements apply to the same period as the financial statements.
• Measurement: all asset, liability, income and expense items have been recognised at fair value in accordance with
accounting requirements.
• Ownership: rights and obligations are properly recognised.
• Disclosure: all financial statement items are correctly presented and disclosed.
The financial statement process includes the aggregation of all data from accounting and upstream processes for the annual
financial statements. The financial statements are submitted to the appropriate area head for review and further consultation
with the Managing Board. The Managing Board provides final approval of the financial statements. The auditor takes the
internal control system into account during the financial statement audit to the extent that it is relevant to preparation of the
annual financial statements.
Effectiveness and controls
To ensure the effectiveness of the internal control system, VIG Holding established an annual evaluation and documentation
process for the ICS with the professional assistance of external auditors. This process identifies, analyses, assesses,
documents and reports risks and controls existing for VIG Holding to the Managing Board, particularly those in the areas
of accounting and compliance.
Optimisation measures are introduced into the control environment based on the findings, and their implementation is also
monitored and reported by the responsible units. The results of this process are also used later by the internal audit
department as a basis for its subsequent audit of the accounting process and the control environment established there.
DISCLOSURES IN ACCORDANCE WITH SECTION 243A AND SECTION 243 (3) (3) UGB
Detailed information on the disclosures in accordance with Section 243a and Section 243 (3) (3) UGB is available in the
notes to the financial statements on page 342.
DISCLOSURES ON OUTSOURCING IN ACCORDANCE WITH SECTION 156 (1) (1) IN CONJUNCTION WITH SECTION 109
VAG
VIG Holding
For VIG Holding, it was decided to outsource IT services to internal and external IT service providers. twinformatics GmbH
provides IT services for the Austrian VIG insurance companies (including VIG Holding) and concludes any necessary sub-
outsourcing in compliance with the legal and regulatory requirements and after consultation with the VIG insurance
companies in Austria.
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Since 01/01/2023, IT services for VIG Group (including VIG Holding) have also been provided by VIG IT-
Digital Solutions GmbH (hereinafter referred to as “VIG IT-DS”). VIG IT-DS was founded by VIG Holding in order to further
strengthen the policy of providing IT services throughout the Group and to have these services provided by a company that
focuses on this area. A outsourcing agreement approved by the FMA was also concluded with VIG IT-DS, in which the final
responsibility of VIG IT-DS (with twinformatics as an essential sub-service provider) for all VIG solutions (SAP NewGL, IFRS
9/17, ReadSoft and some smaller supporting applications) was agreed. In addition to these outsourcing agreements,
VIG Holding has not outsourced any critical or important functions or business activities.
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Annual Financial Report 2024
OUTLOOK
Economic outlook
For 2025, the Erste Group analysts expect moderate growth of 1.0% for the Eurozone. This is firstly because the real
income situation of households should continue to improve thanks to falling inflation. Secondly, the global cycle of interest
rate cuts should increase the appetite for investment in the major economic areas and the expected fiscal stimulus should
take effect.
Growth of 0.4% is forecast for Austria. In Central and Eastern Europe, too, consumer spending can be expected to rise
as inflation continues to weaken – or at least remain stable – making a positive contribution to growth. A slight
acceleration in economic development can also be expected as a result of higher investment activity, driven by the
resumption of projects funded by the new budgetary period (EU’s multiannual financial framework 2021–2027). Overall,
real GDP growth of 2.6% is expected in the Central and Eastern Europe region in 2025.
A significant risk to growth lies in the current international geopolitical situation and the effects of US trade policy, which
harbour additional downside risks to the Eurozone economic outlook. In addition, budget consolidation is planned in
Austria and other countries in the region.
From a monetary policy perspective, there should be support for economic development, even if there could be pauses in
the cycle of interest rate cuts over the course of the year. With core inflation on a downward trend, inflation in the
Eurozone is expected to reach 1.9% by the end of 2025. This should give the ECB enough leeway for further interest rate
cuts in 2025. Inflation trends may not develop in a completely linear fashion across Central and Eastern Europe. In
particular, administered prices could contribute to a somewhat more persistent inflation trend and thus also have a
delaying effect on the interest rate policy of local central banks.
Outlook for VIG Insurance Group
Vienna Insurance Group with its approximately 30,000 employees, as the market leader in Central and Eastern Europe, is
excellently positioned to take full advantage of the opportunities in this region and the associated long-term growth
potential. The VIG 25 strategic programme, which runs until the end of 2025, is being consistently pursued. At the same
time, the Managing Board has begun discussing the follow-up programme. A compact set of principles and corporate
values, individual strategies for the local Group companies, even stronger reinforcement of cooperation (CO
3
) and Group-
wide programmes will form a robust and sustainable framework for the long-term success of the Group.
As in the past, shareholders will participate in the Company’s success. In the context of the dividend policy, which sets
the previous year’s dividend as the minimum dividend for the next year and anticipates a continuous increase depending
on the operational result development, the Managing Board proposes to the relevant bodies an increase of the dividend
from EUR 1.40 to EUR 1.55 per share for the financial year 2024. This corresponds to an increase of 10.7% year-on-year.
Vienna Insurance Group has so far been able to manage the effects of the challenging geopolitical and macroeconomic
conditions very well and is well prepared for the volatile environment. On this basis, the positive results development is
expected to continue in the 2025 financial year. VIG’s diversification across markets and lines of business, the customer
focus of its companies and its capital strength provide excellent conditions for continuing its successful course. VIG’s
management therefore aims to achieve a result before taxes within a range of EUR 950 million and EUR 1 billion for the
financial year 2025.
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Outlook for VIG Holding
VIG Holding has set a goal for financial year 2025 of increasing its premium volume from international reinsurance and
cross-border corporate business. VIG Holding will continue to pursue its strategic program, optimise its processes on an
ongoing basis and aim to further increase its earning power.
Appropriate measures will continue to be implemented and coordinated to achieve these goals.
In addition, the Group’s attractiveness as an employer with an international background will be increased and sustainable
business operations for people and the environment will be further expanded.
Vienna, 25 March 2025
The Managing Board:
Hartwig Löger
General Manager (CEO),
Chairman of the Managing Board
Peter Höfinger
Deputy General Manager,
Deputy Chairman of the Managing Board
Liane Hirner
CFRO, Member of
the Managing Board
Gerhard Lahner
COO, Member of
the Managing Board
Gábor Lehel
CIO, Member of
the Managing Board
Harald Riener
Member of
the Managing Board
Christoph Rath
Deputy Member of
the Managing Board
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Annual
financial
statements
in accordance with the Austrian
Commercial Code (UGB)
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Annual Financial Report 2024
BALANCE SHEET AS OF 31 DECEMBER 2024
Assets 31.12.2024
31.12.2023
in EUR
in EUR '000
A. Intangible assets 26,569,204.78
22,628
I. Other intangible assets 26,569,204.78
22,628
B. Investments 7,599,450,665.21
7,312,050
I. Land and buildings 211,098,860.24
175,340
II. Investments in affiliated companies and participations 5,554,438,578.20
5,598,243
1. Shares in affiliated companies 5,160,057,368.03
5,205,632
2. Bonds and other securities of affiliated companies and loans to affiliated companies 369,216,416.98
368,395
3. Participations 25,164,793.19
24,216
III. Other investments 1,430,813,453.55
698,593
1. Shares and other non-fixed-interest securities 39,280,333.88
9,124
2. Bonds and other fixed-interest securities 705,900,019.91
334,719
3. Mortgage receivables 1,842,000.01
1,932
4. Other loans 969,910.34
955
5. Bank deposits 682,821,189.41
351,863
IV. Deposits on assumed reinsurance business 403,099,773.22
839,874
C. Receivables 446,949,463.28
549,871
I. Receivables from direct insurance business 124,176,732.07
115,934
1. from policyholders 7,415,730.99
29,049
2. from insurance intermediaries 13,473.57
0
3. from insurance companies 116,747,527.51
86,885
II. Receivables from reinsurance business 104,291,117.39
242,829
III. Other receivables 218,481,613.82
191,107
D. Pro rata interest 30,330,835.99
14,487
E. Other assets 403,054,305.42
386,837
I. Tangible assets (not incl. land and buildings) 3,747,715.41
3,300
II. Current bank balances and cash on hand 399,306,590.01
383,536
III. Other assets 0.00
2
F.Deferred charges 18,611,345.83
15,481
Total ASSETS 8,524,965,820.51
8,301,354
Annual
financial statements
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BALANCE SHEET AS OF 31 DECEMBER 2024
Liabilities and shareholders' equity 31.12.2024
31.12.2023
in EUR
in EUR '000
A. Shareholders' equity 4,167,667,373.78
4,044,935
I. Share capital
Par value 132,887,468.20
132,887
II. Capital reserves
Committed reserves 2,267,232,422.07
2,267,232
III. Retained earnings
Free reserves 1,315,000,000.00
1,190,000
IV. Risk reserve 59,752,358.00
57,968
V. Net retained profits 392,795,125.51
396,847
of which brought forward 217,646,778.00
204,032
B. Subordinated liabilities 1,214,413,000.00
1,214,413
I. Hybrid bond 300,000,000.00
300,000
II. Supplementary capital bond 914,413,000.00
914,413
C. Underwriting provisions – retention 1,887,533,908.35
1,789,010
I. Unearned premiums 136,653,672.88
171,549
1. Gross 163,255,951.01
180,166
2. Reinsurers' share -26,602,278.13
-8,617
II. Mathmatical reserve 18,127,259.65
18,911
1. Gross 18,127,259.65
18,911
III. Liability for incurred claims 1,688,714,309.82
1,563,586
1. Gross 1,985,945,928.25
1,798,475
2. Reinsurers' share -297,231,618.43
-234,889
IV. Provision for profit-unrelated premium refunds 10,815,253.00
4,284
1. Gross 10,815,253.00
4,284
V. Equalisation provision 27,369,413.00
25,836
VI. Miscellaneous underwriting provisions 5,854,000.00
4,845
1. Gross 5,854,000.00
4,845
D. Non-underwriting provisions 162,811,034.93
196,734
I. Provision for severance pay 659,816.00
1,122
II. Provision for pensions 67,887,516.00
71,641
III. Tax provisions 6,553,113.43
3,500
IV. Other provisions 87,710,589.50
120,470
E. Other liabilities 1,091,904,871.85
1,055,409
I. Liabilities from direct insurance business 125,792,408.87
151,757
1. to policyholders 6,946,303.98
16,016
2. to insurance intermediaries 637,888.97
156
3. to insurance companies 118,208,215.92
135,584
II. Liabilities from reinsurance business 125,627,421.86
61,308
III. Bond liabilities (excl. supplementary capital) 503,835,616.55
503,825
IV. Liabilities to banks 227,964,877.58
227,964
V. Other liabilities 108,684,546.99
110,555
F.Deferred charges 635,631.60
853
Total LIABILITIES AND SHAREHOLDERS' EQUITY 8,524,965,820.51
8,301,354
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Annual Financial Report 2024
INCOME STATEMENT FOR THE FINANCIAL YEAR FROM 1 JANUARY TO 31 DECEMBER 2024
Underwriting account 2024
2023
in EUR
in EUR '000
1. Net earned premiums 1,505,339,263.40
1,456,437
Premiums written 1,508,134,388.68
1,520,544
Gross 1,729,486,061.97
1,669,758
Ceded reinsurance premiums -221,351,673.29
-149,214
Change in unearned premiums -2,795,125.28
-64,106
Gross -21,856,821.35
-65,408
Reinsurers' share 19,061,696.07
1,301
2. Investment income from underwriting business 34,708,807.29
58,984
3. Other underwriting income 1,869,634.34
945
4. Expenses for claims and insurance benefits -1,038,729,544.17
-1,021,372
Payments for claims and insurance benefits -905,493,825.43
-841,889
Gross -992,135,979.48
-936,280
Reinsurers' share 86,642,154.05
94,391
Change in provision for outstanding claims -133,235,718.74
-179,483
Gross -196,011,111.51
-167,003
Reinsurers' share 62,775,392.77
-12,481
5. Increase in underwriting provisions -1,009,000.00
-941
Other underwriting provisions -1,009,000.00
-941
Gross -1,009,000.00
-941
6. Reduction of underwriting provisions 783,717.48
14,939
Mathematical reserve 783,717.48
14,939
Gross 783,717.48
14,939
7. Expenses for profit-unrelated premium refunds -6,531,613.43
6,372
Gross -6,531,613.43
6,372
8. Administrative expenses -457,449,274.06
-466,681
Acquisition expenses -464,867,227.45
-466,397
Other administrative expenses -5,598,923.04
-5,337
Reinsurance commissions and profit commissions from reinsurance cessions 13,016,876.43
5,053
9. Other underwriting expenses -4,670,725.30
-6,884
10. Change to equalisation provision -1,533,562.00
-9,500
Underwriting result 32,777,703.55
32,298
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INCOME STATEMENT FOR THE FINANCIAL YEAR FROM 1 JANUARY TO 31 DECEMBER 2024
2024
2023
in EUR
in
EUR '000
Underwriting result 32,777,703.55
32,298
Non-underwriting account:
1. Income from investments and interest income 913,164,271.44
802,835
Income from participations 450,087,285.57
413,817
Income from land and buildings 13,763,677.63
13,314
Income from other investments 67,442,466.74
50,057
Income from appreciations 328,458,403.98
234,711
Income from the disposal of investments 848,152.04
7,195
Other investment and interest income 52,564,285.48
83,741
2. Expenses for investments and interest expenses -630,033,178.71
-423,923
Expenses for asset management -139,929,831.80
-138,526
Depreciation of investments -414,999,598.38
-171,489
Interest expenses -60,416,694.62
-89,851
Losses from the disposal of investments -5,863,301.74
-19,036
Other investment expenses -8,823,752.17
-5,021
3. Investment income transferred to the underwriting account -34,708,807.29
-58,984
4. Other non-underwriting income 33,491,445.38
25,901
5. Other non-underwriting expenses -23,921,911.77
-30,084
6. Result from ordinary activities 290,769,522.60
348,043
8. Taxes on income 11,163,225.11
20,842
8. Profit for the period 301,932,747.71
368,885
9. Transfer to reserves -126,784,401.00
-176,069
Transfer to free reserves -125,000,000.00
-170,000
Transfer to risk reserve -1,784,401.00
-6,069
10. Profit for the year 175,148,346.71
192,815
11. Retained profits brought forward 217,646,778.80
204,032
Net retained profits 392,795,125.51
396,847
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Annual Financial Report 2024
NOTES TO THE FINANCIAL STATEMENTS FOR 2024
|. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements as of 31 December 2024 were prepared in accordance with the accounting provisions of the
Austrian Commercial Code (UGB) and the special provisions of the Austrian Insurance Supervision Act (VAG), as amended,
and in
accordance with Austrian generally accepted accounting principles
and the general standard of presenting a true
and fair view of the net assets, financial position and results of operations of the Company. Measurement was performed
assuming the Company would continue as a going concern.
The measurement methods that were previously used were also used in financial year 2024.
The
precautionary principle
was satisfied in that only profits that had been realised as of the balance sheet date were
reported and all identifiable risks and impending losses were recorded in the balance sheet.
Figures are generally shown in thousands of euros (EUR ‘000). Calculation differences may arise when rounded amounts
are summed automatically. Figures from the previous year are indicated as such or shown in parentheses.
Intangible assets
were reported at cost less amortisation based on a useful life of two to fifteen years.
Land
is measured at cost,
buildings
at cost less depreciation and any write-downs. As a rule, repair costs for residential
buildings are spread over 15 years starting as of 2016.
Equities
and other non-fixed interest
securities
and
shares in affiliated companies
are valued according to the strict lower-
of-cost-or-market principle (strenges Niederstwertprinzip). Bonds, other fixed-income securities and
participations
are
valued using the less strict lower-of-cost-or-market principle (gemildertes Niederstwertprinzip) provided for in Section 149
(1) VAG.
Valuation using the less strict lower-of-cost-or-market principle resulted in write-downs of EUR 6,407,000 (EUR 13,933,000)
not being performed.
The Company takes into account the overall risk position of the Company and the investment strategy provided for this
purpose when making investments in fixed-interest securities, real estate, participations and shares. The risk inherent in the
specified categories and the market were taken into account when determining exposure volumes and limits.
The investment strategy is laid down in the form of investment guidelines that are continuously monitored for compliance
by the corporate risk controlling and internal audit departments. The corporate risk controlling department reports regularly
to the tactical and strategic investment committee. The internal audit department reports regularly to the Managing Board.
As a rule, investments are generally low-risk. The strategic investment committee decides on potential high-risk investments
based on the inherent risk of each individual investment after performing a full analysis of all related risks and liquidity at risk,
and considering all assets currently in the portfolio and the effects of the individual investments on the overall risk position.
All known financial risks are assessed regularly and specific limits or reserves are used to limit exposure. Security price risk
is reviewed periodically using value-at-risk and stress tests. Default risk is measured using both internal and external rating
systems.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
333
An important goal of investment and liquidity planning is to maintain adequate amounts of liquid, value-protected financial
investments. Liquidity planning therefore takes into account the trend in insurance benefits and the majority of investment
income is generally reinvested.
As of 31 December 2024, there were 15 currency futures contracts in the currencies RON, CZK and PLN with a maturity
on 21 May 2025. The transactions are being used to hedge future dividends in foreign currency. The 8 currency futures
contracts with a negative market value on the reporting date form a provision for impending losses totalling EUR 400,000
(EUR 492,000). The remaining 7 currency futures contracts had a positive market value of EUR 1,457,000 (EUR 1,176,000)
as of the reporting date.
Amounts denominated in
foreign currencies
are converted to euro using the appropriate mean rate of exchange.
As a rule,
mortgage receivables and other loans
, including those to affiliated companies and companies in which a
participation is held, are measured at the nominal value of the outstanding receivables. Discounts deducted from loan
principal are spread over the term of the loan and shown under deferred income.
Specific valuation allowances of adequate size are formed for doubtful
receivables
and deducted from their nominal values.
Tangible assets
(not including land and buildings) are measured at cost less accumulated depreciation. Low-cost assets
are fully written off in the year of purchase.
Unearned premiums
were essentially calculated by prorating over time after applying a deduction for expenses (15%) of
EUR 8,978,000 (EUR 7,879,000).
The
provision for outstanding claims
for direct business is calculated for claims reported by the balance sheet date by
individually assessing claims that have not yet been settled and adding lump-sum safety margins for large unexpected
losses. Lump-sum provisions based on past experience are formed for claims incurred but not reported. Recourse claims
of EUR 1,945,000 (EUR 610,000) were included. The provisions for profit-unrelated premium refunds relate to premium
refunds in certain insurance classes that are contractually guaranteed to policyholders in the event that there are no claims
or a low level of claims. This provision is formed at the individual policy level.
Indirect business
includes assumed property and casualty insurance as well as health and life insurance business. In indirect
business, liability for incurred claims and the liability for remaining coverage are primarily based on reports from assignors
as of the 31 December 2024 balance sheet date. The reported amounts were increased where this was considered
necessary in light of past experience.
Underwriting items for assumed reinsurance business
and associated retrocessions are included immediately in the annual
financial statements.
The equalisation provision is calculated in accordance with the directive of the Austrian Federal Minister of Finance, BGBl.
(Federal Gazette) No. 315/2015. The calculation has been performed for direct and indirect business combined since
financial year 2016.
334
Annual Financial Report 2024
Provisions for severance pay, pensions, and anniversary bonuses are calculated on the basis of the principles for the
calculation of pension insurance of the Actuarial Association of Austria (AVÖ), AVÖ 2018-P (Employees), assuming a wage
growth rate of:
– Wage growth rate (2025): 4.0% (5.0%)
– Wage growth rate (2026): 3.0% (3.5%)
– Wage growth rate (2027): 2.5% (2.5%)
– Wage growth rate (from 2028): 2.0% p.a. (2.0%)
and a discount rate of 1.73% (1.51%) p.a. for the severance provision, 1.98% (1.80%) for the pension provision and 1.89%
(1.67%) for the anniversary bonus provision. The discount rate used was based on the 7-year average interest rate as
published by the German Bundesbank. The severance pay, pension and anniversary bonus obligations were valued using
the projected unit credit method. The retirement age used to calculate the provisions for anniversary bonuses and severance
pay is the statutory minimum retirement age as stipulated in the Austrian General Social Security Act (ASVG) (2004 reform),
subject to a maximum age of 62 years. The retirement age used to calculate the provision for pensions is based on each
individual agreement, or the statutory minimum retirement age as stipulated in the Austrian General Social Security Act
(ASVG) (2004 reform). The following percentages were used for employee turnover based on age: <31 4.0%, 31–35 2.0%,
36–40 2.0%, 41–50 1.5%, 51–55 0.5% and 56–65 0%. The severance entitlement used to calculate the provision for
severance obligations is based on each individual agreement or on the collective agreement. The following percentages
were used for employee turnover based on age: <30 5.5%, 30–39 2.0%, 40–50 1.5%, 51–59 1.0% and 60–65 0.5%.
EUR 3,623,000 (EUR 3,478,000) in provisions have been formed for direct pension obligations. A portion of the direct
benefits equal to EUR 266,000 (EUR 260,000) will be administered as an occupational group insurance plan after an
insurance contract has been concluded in accordance with Sections 93–98 VAG, so that the provision will equal the overall
obligation less the outsourced plan assets.
The provision for severance obligations required under Austrian commercial law for 2024 was EUR 2,741,000
(EUR 2,696,000).
The amount earmarked for satisfying the outsourced severance pay obligations that was held by the outside insurance
company was EUR 2,081,000 (EUR 1,574,000).
The difference of EUR 660,000 (EUR 1,122,000) between the size of the severance pay provisions to be formed under
Austrian commercial law and the deposit held by the outside insurance company is reported under provisions for
severance pay in the balance sheet.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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II. NOTES TO THE BALANCE SHEET
The book values of intangible assets, land and buildings, investments in affiliated companies and ownership interests have
changed as follows:
Intangible assets
Land and
buildings
Shares in
affiliated
companies
Bonds and other
securities of
affiliated
companies and
loans to affiliated
companies
Participations
in EUR '000
As of 31 December 2023 22,628
175,340
5,205,632
368,395
24,216
Additions 9,161
42,928
186,787
450
949
Disposals 0
0
154,801
0
0
Appreciation 0
0
326,993
925
0
Depreciation 5,220
7,169
404,554
554
0
As of 31 December 2024 26,569
211,099
5,160,057
369,216
25,165
Intangible assets
with a value of EUR 6,349,000 (EUR 894,000) were acquired from affiliated companies during the financial
year. The value of developed and undeveloped properties was EUR 27,874,000 (EUR 27,874,000) as of 31 December 2024.
The
carrying amount of self-used property
was EUR 24,170,000 (EUR 22,398,000).
The investments have the following carrying amounts and fair values:
Items under § 144 Abs. 2 VAG Book Value
Fair value
Book Value
Fair value
2024
2024
2023
2023
in EUR '000
Land and buildings 211,099
626,236
175,340
648,092
thereof appraisal reports 2020 1,785
11,820
32,382
65,500
thereof appraisal reports 2021 3,167
9,940
22,114
179,620
thereof appraisal reports 2022 22,728
138,470
44,814
249,290
thereof appraisal reports 2023 28,984
52,049
76,030
153,682
thereof appraisal reports 2024 154,435
413,957
0
0
Shares in affiliated companies 5,160,057
9,518,558
5,205,632
8,529,566
Bonds and other securities of affiliated companies and loans to affiliated companies 369,216
380,024
368,395
379,004
Participations 25,165
33,268
24,216
32,057
Shares and other non-fixed-interest securities 39,280
39,940
9,124
9,320
Bonds and other fixed-interest securities 705,900
705,084
334,719
323,074
Mortgage receivables 1,842
1,765
1,932
1,802
Other loans 970
489
955
501
Bank balances 682,821
683,310
351,863
351,863
Deposits receivables 403,100
403,100
839,874
839,874
Total 7,599,451
12,391,774
7,312,050
11,115,153
Hidden reserves rose by EUR 989,220,000 to a total of EUR 4,792,323,000 (EUR 3,803,103,000).
336
Annual Financial Report 2024
The fair values of
land and buildings
were determined in accordance with the recommendations of the Austrian Association
of Insurance Companies. The values are based on appraisal reports.
The fair values of
shares in affiliated companies
and interests in companies in which a participation is held correspond to
available market values. If no such value exists, the purchase price is used as the fair value, if necessary reduced by any
write-downs, or a proportionate share of the publicly reported equity capital, whichever is greater. To test for impairment,
the individual book values are first compared with the fair value or a proportionate share of the equity capital of the affiliated
company. The fair values of interests in affiliated companies are either based on valuation reports obtained from external
parties or internal valuations.
Stock exchange values were used as far as possible for the fair value of
shares and other non-fixed interest securities, and
of bonds and other fixed interest securities
(including those from affiliated companies). The Company uses purchased
software to calculate the fair value of securities that do not have public market or stock market values based on discounted
cash flows.
The remaining investments were valued at their nominal values, reduced by write-downs where necessary.
Recognised mathematical models (discounted cash flows) were used to calculate the market values of
mortgage loans
and
other loans.
Other loans
not secured by insurance contracts are loans of EUR 970,000 (EUR 955,000) to the Republic of Austria. Other
loans do not include any loans (EUR 0) with remaining terms of up to one year.
The
subordinated liabilities
balance sheet item consists of the bonds listed in the table below, which were issued in the form
of securities.
Name 2024
2023
in EUR '000
RT1 Schuldverschreibung 2021 300,000
300,000
Supplementary capital bond 2015 – 2046 214,413
214,413
Supplementary capital bond 2017 – 2047 200,000
200,000
Schuldverschreibung 2022 - 2042 500,000
500,000
Total 1,214,413
1,214,413
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
337
The following balance sheet items are attributable to affiliated companies and companies in which a participation is held:
Affiliated companies
Companies in which an ownership
interest is held
2024
2023
2024
2023
in EUR '000
Mortgage receivables 1,842
1,932
0
0
Deposits receivables 403,100
839,874
0
0
Receivables from direct insurance business 7,384
10,683
0
0
Receivables from reinsurance business 25,527
162,757
0
0
Other receivables 193,605
177,693
0
0
Liabilities from direct insurance business 8,335
7,675
0
0
Liabilities from reinsurance business 119,490
54,460
0
0
Other liabilities 13,646
8,795
0
0
The change in
personnel provisions
was recognised in personnel expenses. Interest expenses for personnel provisions of
EUR 1,861,000 (EUR 893,000) are reported under investment and interest expenses.
Other provisions
of EUR 87,711,000 (EUR 120,470,000) mainly consist of IT provisions of EUR 46,500,000
(EUR 49,015,000), provisions for unused holiday time of EUR 3,798,000 (EUR 3,673,000), provisions for variable salary
components of EUR 10,252,000 (EUR 10,227,000), provisions for customer support and marketing of EUR 1,197,000
(EUR 616,000) and provisions for anniversary bonuses of EUR 1,634,000 (EUR 1,641,000).
The amount shown under
other liabilities
includes EUR 7,788,000 (EUR 6,465,000) in tax liabilities and EUR 750,000
(EUR 697,000) in social security liabilities.
The following disclosures are provided for
off-balance sheet contingent liabilities
: VIG Holding has assumed guarantees of
EUR 612,082,000 (EUR 409,767,000). Of this amount, EUR 384,000,000 (EUR 384,000,000) relates to “Additional equity
capital”, which in December 2019 was committed to its subsidiary Wiener Städtische Versicherung AG Vienna Insurance
Group in the amount of EUR 350,000,000, in December 2022 to its subsidiary VIG RE zajist’ovna, a.s. in the amount of
EUR 22,000,000, and since 2023 to its subsidiary BTA Baltic Insurance Company in the amount of EUR 2,000,000 and to
its subsidiary Vienna-Life Lebensversicherung AG in the amount of EUR 10,000,000. In 2024, a guarantee bond was issued
to the subsidiary VIG HU GmbH for a loan of EUR 150,000,000 taken out by VIG HU GmbH. During the preparation of the
balance sheet, a letter of comfort in an amount of up to EUR 50,000,000 was also issued to VIG HU GmbH.
Liabilities arising from the use of off-balance sheet tangible assets
amounted to EUR 2,595,000 (EUR 2,270,000) for the
following financial year and EUR 13,777,000 (EUR 12,050,000) for the following five years.
338
Annual Financial Report 2024
III. NOTES TO THE INCOME STATEMENT
Premiums written, net earned premiums, expenses for insurance claims and benefits, administrative expenses and reinsurance
balance had the following breakdown for property and casualty insurance in 2024:
Gross Premiums written
Net earned
premiums
Expenses for
claims and
insurance
benefits
Administrative
expenses
Reinsurance
balance
in EUR '000
Direct business
Fire and fire business interruption insurance 266,867
262,504
224,262
18,496
-4,414
Liability insurance 5,705
5,610
1,793
596
-1,457
Marine, aviation and transport insurance 7,696
7,740
4,498
1,421
-2,563
Other non-life insurance 41,553
39,738
12,705
4,422
-20,927
Total direct business 321,820
315,592
243,258
24,935
-29,361
(Previous year values) 313,908
299,672
217,324
22,997
-50,706
Indirect business
Other insurance 1,378,595
1,362,975
921,792
434,884
-10,503
Total indirect business 1,378,595
1,362,975
921,800
434,884
-10,494
(Previous year values) 1,330,731
1,278,916
850,315
444,018
-10,244
Total direct and indirect business 1,700,415
1,678,567
1,165,058
459,819
-39,855
(Previous year values) 1,644,639
1,578,588
1,067,639
467,015
-60,950
The
reinsurance balance
is composed of net earned reinsurance premiums, effective reinsurance claims and reinsurance
commissions.
The run-off result for property and casualty insurance was EUR 36,929,000 (EUR 44,805,000) for financial year 2024.
In
indirect business
, premiums written of EUR 27,291,000 (EUR 25,016,000) for health insurance and EUR 1,779,000
(EUR 103,000) for life insurance were assumed. The reinsurance balance from the assumed health and life insurance
business was EUR 0 (EUR 0).
The result from
indirect business
was EUR 37,109,000 (EUR 43,906,000). The net earned premiums of EUR 1,392,037,000
(EUR 1,304,678,000) from indirect business were included in the income statement at the same time.
Of the income from participations, land and buildings and other investments shown in the income statement, affiliated companies
accounted for the following amounts:
2024
2023
in EUR '000
Income from participations 446,994
411,081
Income from other investments 18,306
29,226
Income from land and buildings 783
856
In the financial year, distributions totalling EUR 310,000 (EUR 85,000) were made from the funds in portfolio.
The deposit interest income for indirect business was transferred to the underwriting account.
Losses from disposals of investments
were EUR 5,863,000 (EUR 19,036,000) in financial year 2024.
Group manageme nt report | Co nsolidated financial statements | Ma nagement report | Annual financial statements | Ser vice i nformation
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
339
The expenses for insurance claims and benefits, administrative expenses, other insurance service expenses and investment
expenses include:
2024
2023
in EUR '000
Wages and salaries 40,332
37,097
Expenses for severance benefits and payments to company pension plans 533
563
Expenses for retirement provisions -861
2,032
Expenses for statutory social contributions and income-related contribution and mandatory contributions 8,295
7,371
Other social security expenses 294
214
Commissions
of EUR 17,459,000 (EUR 16,408,000) were incurred for direct business in financial year 2024.
A summary of
auditing fees
is provided in the notes to the consolidated financial statements of VIENNA INSURANCE
GROUP AG Wiener Versicherung Gruppe, Vienna.
No deferred income taxes were recognised on temporary differences between the results under commercial law and taxable
earnings. The tax rate selected for deferred taxes would be 20.7% (20.7%) based on the terms and conditions of the tax
allocation agreement with the parent company.
Deferred taxes
31.12.2024
31.12.2023
in EUR '000
Shares in affiliated companies 40,688
19,800
investments 1,766
-1,732
Tangible assets (not incl. land and buildings) and inventories 52
121
Valuation reserve -18,362
-18,891
subordinated liabilities 5,400
5,759
Underwriting provision – retention 115,852
107,390
Long-term personnel provisions 38,694
44,935
other provisions 26,603
25,093
Temporary differences (no subject to tax) 210,693
182,475
340
Annual Financial Report 2024
IV. MATERIAL PARTICIPATIONS
Company Direct interest
in
capital (%)
Equity captial
('000)
Share of Capital
(EUR ‘000)
Net
income/loss (in
EUR '000)
Share of profit
for
the year
(EUR ‘000)
Last annual
financial
statements
Affiliated companies
"VIENNA LIFE INSURANCE" - "VIENNA SIGURIM
JETE" JSC, Tirana
75.00
n/a new
establishment
2024
ASIGURAREA ROMANEASCA - ASIROM VIENNA
INSURANCE GROUP S.A., Bucharest 88.77
81,988
72,782
2,980
2,645
2023
ATBIH GmbH, Vienna 68.97
179,157
123,559
24,661
17,008
2023
BCR Asigurari de Viata Vienna Insurance Group
S.A., Bukarest
93.98
47,097
44,261
2,606
2,449
2023
BTA Baltic Insurance Company AAS, Riga 100.00
73,639
73,639
10,406
10,406
2023
Beesafe Spolka z Ogranziczona
Odpowiedzialnoscia, Warschau 77.27
3,419
2,642
-5,410
-4,180
2023
Compania de Asigurari "DONARIS VIENNA
INSURANCE GROUP" Societate pe Actiuni, Chisinau
99.99
8,323
8,322
1,717
1,717
2023
CARPATHIA Pensii-Societate de Administrare a
Fondurilor de Pensii private S.A., Floresti 100.00
10,270
10,270
-560
-560
2023
Ceská podnikatelská pojist'ovna, a.s., Vienna
Insurance Group, Praha
100.00
141,189
141,189
39,298
39,298
2024
Compensa Life Vienna Insurance Group SE, Tallinn 100.00
83,678
83,678
9,818
9,818
2023
Vienna Life Towarzystwo Ubezpieczen Na Zycie
Spolka Akcyjna Vienna Insurance Group, Warsaw 81.61
88,617
72,323
12,534
10,229
2024
Compensa Towarzystwo Ubezpieczen Spolka
Akcyjna Vienna Insurance Group, Warsaw
86.52
158,687
137,299
17,670
15,288
2024
Compensa Vienna Insurance Group, akcine
draudimo bendrove, Vilnius 100.00
63,180
63,180
6,515
6,515
2023
DONAU Versicherung AG Vienna Insurance Group,
Vienna 74.24
126,084
93,601
19,155
14,220
2024
ELVP Beteiligungen GmbH, Vienna 100.00
63,218
63,218
35,193
35,193
2023
Foreign limited liability company
"InterInvestUchastie", Minsk 99.95
198
198
5
5
2023
GLOBAL ASSISTANCE D.O.O. BEOGRAD, Belgrad 50.00
382
191
-41
-20
2023
GLOBAL ASSISTANCE SERVICES SRL, Bukarest 40.00
315
126
28
11
2023
GLOBAL ASSISTANCE SERVICES s.r.o., Prag 100.00
482
482
54
54
2023
GLOBAL ASSISTANCE SLOVAKIA s.r.o., Bratislava 40.00
97
39
18
7
2023
GLOBAL ASSISTANCE, a.s., Prag 60.00
5,986
3,592
1,736
1,042
2023
Global Assistance Polska Spolka z ograniczona
odpowiedzialnoscia, Warszawa 30.77
670
206
345
106
2023
Global Services Bulgaria JSC, Sofia 50.00
403
202
25
12
2023
INSURANCE ONE-SHAREHOLDER JOINT-STOCK
COMPANY BULSTRAD VIENNA INSURANCE GROUP
EAD, Sofia 100.00
92,416
92,416
24,073
24,073
2023
INTERSIG VIENNA INSURANCE GROUP Sh.A.,
Tirana
89.98
8,399
7,558
1,481
1,333
2023
Insurance Company Vienna osiguranje d.d., Vienna
Insurance Group, Sarajevo 100.00
10,703
10,703
631
631
2023
Stock Company for Insurance and Reinsurance
MAKEDONIJA Skopje - Vienna Insurance Group,
Skopje
95.71
25,410
24,319
604
578
2023
InterRisk Towarzystwo Ubezpieczen Spolka Akcyjna
Vienna Insurance Group, Warsaw 100.00
73,535
73,535
16,633
16,633
2024
InterRisk Versicherungs-AG Vienna Insurance
Group, Wiesbaden
100.00
64,320
64,320
29,200
29,200
2023
Joint Stock Insurance Company WINNER LIFE -
Vienna Insurance Group Skopje, Skopje 100.00
5,183
5,183
562
562
2023
KOMUNALNA poistovna, a.s. Vienna Insurance
Group, Bratislava
100.00
57,800
57,800
3,784
3,784
2023
Group manageme nt report | Co nsolidated financial statements | Ma nagement report | Annual financial statements | Ser vice i nformation
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
341
Company Direct interest
in
capital (%)
Equity captial
('000)
Share of Capital
(EUR ‘000)
Net
income/loss (in
EUR '000)
Share of profit
for
the year
(EUR ‘000)
Last annual
financial
statements
Affiliated companies
KOOPERATIVA poist'ovna, a.s. Vienna Insurance
Group, Bratislava 94.37
407,689
384,723
33,342
31,464
2023
KUPALA Belarusian-Austrian Closed Joint Stock
Insurance Company, Minsk
52.34
15,986
8,367
2,209
1,156
2023
Kooperativa, pojist'ovna, a.s. Vienna Insurance
Group, Prague 95.84
703,723
674,459
154,847
148,408
2024
LVP Holding GmbH, Vienna 100.00
642,210
642,210
27,007
27,007
2023
OMNIASIG VIENNA INSURANCE GROUP S.A.,
Bucharest
99.54
154,385
153,679
5,656
5,630
2023
Private Joint Stock Company "Insurance Company
"USG", Kiev 7.07
14,158
1,002
3,097
219
2023
PRIVATE JOINT-STOCK COMPANY "UKRAINIAN
INSURANCE COMPANY "KNIAZHA VIENNA
INSURANCE GROUP", Kiev
90.56
10,922
9,891
2,203
1,995
2023
Private Joint-Stock Company "INSURANCE
COMPANY "KNIAZHA LIFE VIENNA INSURANCE
GROUP", Kiev
97.94
6,515
6,381
1,605
1,572
2023
RISK CONSULT Sicherheits- und Risiko-
Managementberatung Gesellschaft m.b.H., Vienna 90.00
1,387
1,249
309
278
2023
Ray Sigorta Anonim Sirketi, Istanbul 12.67
59,722
7,568
31,798
4,029
2023
SIA "Global Assistance Baltic", Riga 33.33
250
83
-14
-5
2023
SIGMA VIENNA INSURANCE GROUP Sh.A., Tirana 89.05
18,095
16,114
2,670
2,378
2023
VIG AM Real Estate, a.s., Prague 100.00
808
808
80
80
2023
VIG HU GmbH, Vienna 100.00
99,800
99,800
-435
-435
2023
VIG IT - Digital Solutions GmbH, Vienna 100.00
6,916
6,916
112
112
2023
VIG Magyarország Befektetesi Zartköröen Müködö
Reszvenytarsasag, Budapest 55.00
728,742
400,808
-46,572
-25,615
2023
VIG Management Service SRL, Bucarest 52.08
8,677
4,519
360
188
2023
VIG Poland/Romania Holding B.V., Amsterdam 100.00
49,008
49,008
-11,697
-11,697
2023
VIG RE zajist'ovna, a.s., Prague 55.00
361,413
198,777
33,331
18,332
2024
VIG Services Ukraine, LLC, Kiev 6.98
1,209
84
112
8
2023
VIG Türkiye Holding B.V., Amsterdam 100.00
32,288
32,288
0
0
2023
VIG-CZ Real Estate GmbH, Vienna 90.00
147,640
132,876
92
83
2023
Vienna Insurance Group Polska Spolka z
ograniczona odpowiedzialnoscia, Warsaw 51.43
13,935
7,167
-5,500
-2,829
2023
Vienna International Underwriters GmbH, Vienna 100.00
653
653
101
101
2023
Vienna-Life Lebensversicherung AG Vienna
Insurance Group, Bendern 100.00
15,484
15,484
-30
-30
2023
WIENER STÄDTISCHE OSIGURANJE akcionarsko
drustvo za osiguranje Beograd, Belgrade
100.00
43,591
43,591
10,690
10,690
2023
WIENER STÄDTISCHE VERSICHERUNG AG Vienna
Insurance Group, Vienna 90.82
763,774
693,652
124,963
113,490
2024
Wiener Osiguranje Vienna Insurance Group a.d.,
Banja Luka 100.00
9,055
9,055
76
76
2023
Akcionarsko drustvo za zivotno osiguranje Wiener
Städtische Podgorica, Vienna Insurance Group,
Podgorica 100.00
5,496
5,496
710
710
2023
Wiener osiguranje Vienna Insurance Group
dionicko drustvo za osiguranje, Zagreb
97.82
68,322
66,832
5,421
5,303
2023
twinformatics GmbH, Vienna 20.00
3,797
759
393
79
2023
Participations
Erste Asset Management GmbH, Vienna 0.76
139,185
1,056
75,518
573
2023
Wiener Börse AG, Vienna 8.50
192,230
16,341
39,545
3,362
2023
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Annual Financial Report 2024
V. OTHER DISCLOSURES
The share capital amounts to EUR 132,887,468.20. It is divided into 128,000,000 no-par value ordinary bearer shares with
voting rights, with each share representing an equal portion of the share capital. The number of shares issued remains
unchanged.
The Managing Board is not aware of any restrictions on voting rights or the transfer of shares. Employees who hold shares
exercise their voting rights without a proxy during General Meetings.
The Managing Board must have at least three and no more than eight members. The Supervisory Board has at least three
and at most twelve members (shareholder representatives). The Wiener Städtische Versicherungsverein, which directly and
indirectly holds around 72.47% (72.47%) of the share capital, has the right to appoint up to a third of the members of the
Supervisory Board if, and as long as, it holds 50% or less of the company’s voting shares. General Meeting resolutions are
adopted by a simple majority, unless a different majority is required by law or the articles of association.
No shares have special rights of control. See the section indicated above for information on the rights of the shareholder
Wiener Städtische Versicherungsverein.
As of the balance sheet date, the Company was not party to any material agreements that would come into effect, change
or terminate if control of the Company were to change due to a takeover bid, in particular, no agreements that would affect
participations held in insurance companies.
No compensation agreements exist between the Company and its Managing Board members, Supervisory Board members
or employees covering the case of a public takeover bid.
Pursuant to Section 169 AktG, the Managing Board is authorised until no later than 20 May 2026 to increase the Company’s
share capital – also in multiple tranches – by a nominal value of up to EUR 66,443,734.10 by issuing up to 64,000,000 no-
par bearer shares in exchange for cash or non-cash contributions or a combination of both. The terms of the shares, the
exclusion of shareholder pre-emption rights, and other terms and conditions of the share issue are decided by the Managing
Board, subject to Supervisory Board approval. Preferred shares without voting rights may also be issued, with rights
equivalent to those of existing preferred shares. The issue prices of common and preferred shares may differ.
The Managing Board was authorised by the Annual General Meeting on 21 May 2021 with the consent of the Supervisory
Board to issue convertible bonds according to Section 174 AktG, which convey the right to exchange or subscribe up to
30,000,000 ordinary bearer shares in the company representing a proportional amount of share capital of up to
EUR 31,145,500.36, in a total nominal amount of up to EUR 2,000,000,000.00, also under exclusion of pre-emptive
subscription rights, on one or more occasions in the time until 20 May 2026.
The share capital has consequently been raised in accordance with Section 159 (2) (1) AktG by a contingent capital increase
of up to EUR 31,145,500.36 through the issue of up to 30,000,000 bearer ordinary shares. The contingent capital increase
will only be implemented to the extent that holders of convertible bonds issued on the basis of the General Meeting
resolution of 21 May 2021 exercise the subscription or exchange rights they were granted. The Managing Board has not
adopted any resolutions to date concerning the issuance of convertible bonds based on the authorisation granted on
21 May 2021.
Furthermore, the Managing Board was authorised by the Annual General Meeting on 21 May 2021 with the consent of the
Supervisory Board to issue participating bonds pursuant to Section 174 (2) AktG in the total nominal amount of up to
EUR 2,000,000,000.00, also in multiple tranches and also under exclusion of pre-emptive subscription rights, in the time
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343
until 20 May 2026. To date, the Managing Board had not adopted a resolution on the issuance of participating bonds on
the basis of this authorisation.
The General Meeting of 26 May 2023 authorised the Managing Board to acquire bearer ordinary shares in accordance with
Sections 65 (1) (8), (1a) and (1b) AktG to the maximum extent permissible by law during a period of 30 months following
the date the General Meeting resolution was adopted. The amount paid upon repurchase of the company’s own shares
may not be more than a maximum of 50% below and not more than a maximum of 10% above the average unweighted
closing price on the Vienna Stock Exchange on the ten stock exchange trading days preceding the repurchase. The
Managing Board may decide to make the purchase via the stock exchange, through a public offer or in any other legally
permissible and expedient manner. If the repurchase is performed via a public offer, the end of the calculation period is
determined based on the date on which the intention to make a public offer is announced (Section 5 (2) and (3) of the
Austrian Takeover Act (Übernahmegesetz)).
The General Meeting of 26 May 2023 authorised the Managing Board for a period of five years from the date of the
resolution to use own shares, while excluding shareholder pre-emption rights,
• for servicing convertible bonds issued based on the resolution adopted by the General Meeting of 21 May 2021; and
• for sales in a manner permitted by law other than via the stock market or by means of a public offer.
The written report on the reasons for exclusion of shareholder pre-emption rights was submitted to the General Meeting.
The Managing Board has not made use of these authorisations to date. The Group held none of its own shares on the
balance sheet date.
On 2 March 2015 the Company issued a subordinated bond with a nominal value of EUR 400,000,000.00 and a maturity
of 31 years. The Company can call the bond in full for the first time on 2 March 2026 and on each following coupon date.
The subordinated bond bears interest at a fixed rate of 3.75% p.a. during the first eleven years of its term and variable
interest after that. The subordinate bond satisfies the tier 2 requirements of Solvency II and is listed on the Luxembourg
Stock Exchange. On 21 April 2023, an early partial redemption of the subordinated bonds took place. Approximately 46%
(EUR 185.6 million) was bought back. The remaining outstanding volume of the bonds (EUR 214.4 million) continues to be
recognised under the subordinated liabilities item.
A EUR 200,000,000.00 subordinated bond with a term of 30 years was privately issued with international institutional
investors on 6 April 2017. The subordinated bond can be called for the first time after 10 years by VIG Holding and satisfies
the tier 2 requirements of Solvency II. Inclusion for trading in the Third Market of the Vienna Stock Exchange took place on
13 April 2017. Until 13 April 2027, the interest rate will be 3.75% per year. Thereafter, the bond is subject to variable interest
rates.
In June 2021, a subordinated bond with a total volume of EUR 300,000,000.00 and an unlimited term was placed privately
as a restricted tier 1 instrument and was signed entirely by the principal shareholder of VIG Holding,
Wiener Städtische Versicherungsverein. The subordinated bond bears interest at a fixed rate of 3.2125% p.a. during the
first ten years and variable interest after that.
A tier 2 subordinated bond with a total nominal value of EUR 500,000,000.00 was placed on 8 June 2022. The
subordinated bond has a term of 20 years and VIG Holding can call it for the first time after 10 years. The debt instruments
will initially bear a fixed-interest rate of 4.875% per annum. Provided they are not called and repurchased before this date,
the debt instruments will be subject to a variable rate as of and including 15 June 2032. The bonds are traded on the Vienna
Stock Exchange.
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Annual Financial Report 2024
Senior sustainability bond
On 18 March 2021, a senior subordinated bond with a total nominal value of EUR 500,000,000.00 and a term of 15 years
was issued for the first time. VIG Holding can call the bond in full for the first time on 26 December 2035 and any following
day until maturity. The senior sustainability bond bears interest at a fixed rate of 1.00% p.a. until the end of the term. The
bond is listed on the Vienna Stock Exchange. The total net proceeds could be made available for green and social projects
within the first year following issuance.
THE SUPERVISORY BOARD HAD THE FOLLOWING MEMBERS IN FINANCIAL YEAR 2024:
Chairman:
Günter Geyer (until 24 May 2024)
Rudolf Ertl (since 24 May 2024)
1. Deputy Chairman:
Rudolf Ertl (until 24 May 2024)
Martin Simhandl (since 24 May 2024)
2. Deputy Chairman:
Robert Lasshofer
Members:
Martina Dobringer
Zsuzsanna Eifert (until 24 May 2024)
Gerhard Fabisch (until 24 May 2024)
András Kozma
Vratislav Kulhánek (since 24 May 2024)
Hana Machačová (since 24 May 2024)
Peter Mihók
Gabriele Semmelrock-Werzer (until 24 May 2024)
Katarína Slezáková
Ágnes Svoób (since 24 May 2024)
Peter Thirring
Gertrude Tumpel-Gugerell
Change during the financial year:
Günter Geyer, Zsuzsanna Eifert, Gabriele Semmelrock-Werzer and Gerhard Fabisch resigned from the Supervisory Board
after the end of their periods of office, which expired on 24 May 2024. Vratislav Kulhánek, Hana Machačová, Martin
Simhandl and Ágnes Svoób were elected as new members of the Supervisory Board at the Annual General Meeting on
24 May 2024.
In 2024, the Supervisory Board elected Rudolf Ertl as Chairman of the Supervisory Board for a term of office until
30 June 2025. Peter Thirring was elected Chairman of the Supervisory Board for the remainder of the term of office from
1 July 2025 until the Annual General Meeting, which decides on the discharge for financial year 2027. Martin Simhandl was
re-elected as First Deputy Chairman of the Supervisory Board for the entire term of office until the Annual General Meeting,
which decides on the discharge for financial year 2027, and Robert Lasshofer was elected as Second Deputy Chairman of
the Supervisory Board.
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THE MANAGING BOARD HAS THE FOLLOWING MEMBERS:
Chairman:
Hartwig Löger
Deputy Chairman of the Managing Board:
Peter Höfinger
Members:
Liane Hirner
Gerhard Lahner
Gábor Lehel
Harald Riener
Deputy member:
Christoph Rath (since 1 September 2024)
Change during the financial year:
Christoph Rath was appointed as a deputy member of the Managing Board of VIG Holding with effect from
1 September 2024.
The average number of employees, including the Managing Board, was 344 (326). They were employed in the insurance
business, resulting in personnel expenses of EUR 48,592,000 (EUR 47,276,000).
There were no loans outstanding to members of the Managing Board and members of the Supervisory Board as of
31 December 2024 (EUR 0).
No guarantees were outstanding for members of the Managing Board or Supervisory Board as of 31 December 2024.
In 2024, the total expenses for severance pay and pensions of EUR -328,000 (EUR 2,595,000) included severance pay
and pension expenses of EUR 60,000 (EUR 3,261,000) for Managing Board members and senior management in
accordance with Section 80 (1) of the Austrian Stock Corporation Act (AktG).
The Managing Board manages the Company and is also responsible for management of the Group. In some cases,
responsibility is also assumed for additional duties in affiliated companies.
The members of the Managing Board received EUR 6,805,000 (EUR 7,527,000) from the Company during the reporting
period for their services. Managing Board members are provided a company car for both business and personal use. The
members of the Managing Board received EUR 25,000 (EUR 25,000) in the reporting year for their services as a manager
or employee of affiliated companies.
Former members of the Managing Board received EUR 2,175,000 (EUR 1,158,000).
The members of the Supervisory Board received EUR 902,000 (EUR 866,000) in compensation for their services to the
Company in 2024.
The Company is a group member within the meaning of Section 9 of the Austrian Corporate Income Tax Act (KStG) of the
Wiener Städtische Versicherungsverein, Vienna group of companies.
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Annual Financial Report 2024
The taxable earnings of group members are attributed to the head of the tax group.
The head of the tax group has entered into agreements with each group member governing the allocation of positive and
negative tax amounts for the purpose of allocating corporate income tax charges according to origin. If positive income is
attributed to the parent company, the tax allocation equals 23% (24%) of the attributed positive income. If negative income
is attributed to the parent company, the negative tax allocation equals 20.7% (21.6%) of the current tax loss.
A receivable of EUR 163,981,000 (EUR 147,973,000) is owed by the parent company.
The Company is included in the consolidated financial statements prepared by Wiener Städtische Versicherungsverein,
which has its registered office in Vienna. The consolidated financial statements have been disclosed and are available for
inspection at the business premises of this Company located at Schottenring 30, 1010 Vienna.
VI. GLOBAL MINIMUM TAX
EU member states have agreed on the Europe-wide implementation of the Global Anti-Base Erosion (GloBE) rules (Pillar
Two) in the international tax reforms set out by the OECD. The EU directive provides that profits from multinational groups
of companies or large domestic groups with consolidated sales of at least EUR 750 million will in future be subject to a tax
rate of at least 15%. The directive was transposed into Austrian law with the Minimum Taxation Reform Act published on
30 December 2023.
The amendments to the UGB relate to the accounting and reporting of deferred taxes in line with the amendment to IAS 12
for IFRS accounting. With regard to deferred taxes, the technical guidance on the amendments to IAS 12 was published
by the IASB on 23 May 2023. Based on this, an exemption from the recognition of deferred tax assets and liabilities in
accordance with the requirements of global minimum taxation shall be regulated until further notice. This exception to the
accounting also applies to the UGB and is applied accordingly by VIG.
On the basis of the fully consolidated Austrian companies of VIG Group, the Safe Harbour Rules have been complied with
as of 31 December 2024. The actual taxes also include the new primary supplementary tax introduced since
31 December 2023 for business units located abroad.
VII. BANK-TO-BANK EXEMPTION (“ZWISCHENBANKBEFREIUNG“)
Effective 1 January 2025, the Austrian interbank exemption in relation to value added tax was abolished. This abolition will
affect both the input and output side. On the input side, this is due to potentially higher costs resulting from the VAT burden
on various services provided by banks, pension funds and other insurance entities. On the output side, this is due to
additional value added tax on outgoing services provided by the Group to banks, pension funds and other insurance entities.
In addition, proceedings have been brought before the ECJ regarding the qualification of the interbank exemption as
prohibited state aid.
It was ultimately decided that no provision should be formed given that neither the judgement of the ECJ nor the subsequent
actions of the European Commission and the Austrian authorities have been confirmed. It is currently unclear whether the
service provider or the recipient of the tax-exempt services under Section 6 (1) (28) of the Austrian act on value added tax
(
Umsatzsteuergesetz
; UStG) has the relevant “advantage” in respect of the aid. It is also unclear how temporal effects and
any input tax deduction will impact the amount of this “advantage”. The best possible estimate for the various scenarios
suggests that there will be no material impact on the financial statements as a result.
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VIII. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE
Significant events up to 25 March 2025 were taken into consideration. On this date, the present Annual Report was
authorised for publication by the Managing Board.
Placement of Tier 2 subordinated bonds and redemption of outstanding Tier 2 subordinated bonds
On 25 March 2025, VIG Holding announced that it would issue a Tier 2 subordinated bond in the amount of
EUR 300,000,000.00 as part of a public placement. The subordinated bond has a provisional term of 20 years and
VIG Holding can call it for the first time after 10 years. It complies with the Tier 2 requirements according to Solvency II and
qualifies as capital in accordance with the requirements of rating agency S&P. The subordinated bonds bear interest at a
fixed rate during the first ten years of the term and variable interest after that. Inclusion for trading in the Third Market of the
Vienna Stock Exchange is planned.
VIG Holding also announced on 25 March 2025 that it would make an offer of early redemption to the creditors of
subordinated bonds 2046 (outstanding volume EUR 214,413,000.00) and 2047 (outstanding volume EUR 200,000,000.00).
The deadline for acceptance of the redemption offers is 2 April 2025.
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Annual Financial Report 2024
PROPOSED APPROPRIATION OF PROFITS
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe (VIG Holding) ended financial year 2024 with net retained
profits of EUR 392,795,125.51. The following appropriation of profits will be proposed in the Annual General Meeting:
The 128 million shares will receive a dividend of EUR 1.55 per share. For this dividend, 28 May 2025 was agreed as the
payment date, 27 May 2025 as the record date and 26 May 2025 as the ex-dividend date.
A total distribution of EUR 198,400,000.00 has therefore been approved. The net retained profit of financial year 2024 of
EUR 194,395,125.51 remaining after the distribution is to be carried forward to the new account.
Vienna, 25 March 2025
The Managing Board:
Hartwig Löger
General Manager (CEO),
Chairman of the Managing Board
Peter Höfinger
Deputy General Manager,
Deputy Chairman of the Managing Board
Liane Hirner
CFRO, Member of
the Managing Board
Gerhard Lahner
COO, Member of
the Managing Board
Gábor Lehel
CIO, Member of
the Managing Board
Harald Riener
Member of
the Managing Board
Christoph Rath
Deputy Member of
the Managing Board
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REPORT ON THE FINANCIAL STATEMENTS
Audit opinion
We have audited the financial statements of
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe,
Vienna, Austria,
which comprise the Balance Sheet as of 31 December 2024, the Income Statement for the year then ended, and the Notes.
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of
31 December 2024 and its financial performance for the year then ended, in accordance with Austrian Generally Accepted
Accounting Principles and other legal or regulatory requirements for insurance companies.
Basis for our opinion
We conducted our audit in accordance with Regulation (EU) 537/2014 (“AP Regulation”) and Austrian Standards on Auditing.
These standards require the audit to be conducted in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the “Auditor’s Responsibilities” section of our report. We are
independent of the Company, in accordance with Austrian company law and professional regulations, and we have fulfilled
our other responsibilities under those relevant ethical requirements. We believe that the audit evidence we have obtained
up to the date of the auditor’s report is sufficient and appropriate to provide a basis for our audit opinion on this date.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial
statements. These matters were addressed in the context of our audit of the financial statements as a whole, however, we
do not provide a separate opinion thereon.
Recoverability of investments in affiliated insurance companies
Refer to notes chapter “I. Summary of significant accounting policies”, “II. Notes to the balance sheet” and “IV. Significant
participations”
Risk for the financial statements
Investments in affiliated insurance companies represent a significant part of VIENNA INSURANCE GROUP AG
Wiener Versicherung Gruppe assets.
In previous years certain investments in affiliated insurance companies were written down due to sustained impairments.
For the financial year it has to be verified whether any changes in market, economic or legal conditions require a reversal of
impairments or additional write downs.
To assess the recoverability or value recovery, the book values are compared with the proportionate equity and fair values
of the companies. The determination of the fair values is complex and based on discretionary factors. Those factors include
in particular the expected future cash flows of the subsidiary, which are primarily based on past experience as well as on
the Managing Board’s assessment of the expected market environment and the future business development. Other factors
are the assumed long-term growth rate as well as the underlying region-specific costs of capital.
A
uditor
’
s
R
eport
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Annual Financial Report 2024
Our audit approach
We have carried out the following main audit procedures in connection with the recoverability of investments in affiliated
insurance companies:
– We have compared the respective book values with the proportionate shareholders’ equity and the fair values of the
companies.
– We have assessed the appropriateness of key assumptions, of discretionary decisions and of the valuation method
applied for investments in affiliated companies.
– We have reconciled the expected future cash flows used in the calculation in samples with the strategic business
planning approved by the management. We used analytical procedures to verify the plausibility of the detailed planning
for future years.
– Furthermore, we have dealt with the key planning assumptions and reconciled the assumptions regarding the market
development with general and sector-specific market expectations.
– We have analysed the consistency of planning data using information from prior periods.
– Given that minor changes in the applied cost of capital rate significantly impact the determined fair value, we have,
together with our valuation specialists, assessed the determination of the applied cost of capital rate and
comprehended the derivation of the underlying parameters.
Other information
Management is responsible for other information. Other information is all information provided in the annual report, other
than the financial statements, the management report and the auditor’s report.
Our opinion on the financial statements does not cover other information and we do not provide any kind of assurance
thereon.
In conjunction with our audit, it is our responsibility to read this other information and to assess whether, based on
knowledge gained during our audit, it contains any material inconsistencies with the financial statements or any apparent
material misstatement of fact.
If we conclude that there is a material misstatement of fact in other information, we must report that fact. We have nothing
to report in this regard.
Responsibilities of management and audit committee for the financial statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with Austrian
Generally Accepted Accounting Principles and other legal or regulatory requirements for insurance companies and for such
internal controls as management determines are necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
Management is also responsible for assessing the Company’s ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of accounting, unless management either
intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
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The audit committee is responsible for overseeing the Company’s financial reporting process.
Auditor’s responsibilities
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our audit opinion. Reasonable
assurance represents a high level of assurance, but provides no guarantee that an audit conducted in accordance with the
AP Regulation and Austrian Standards on Auditing (and therefore ISAs), will always detect a material misstatement, if any.
Misstatements may result from fraud or error and are considered material if, individually or in aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with the AP Regulation and Austrian Standards on Auditing, we exercise professional
judgment and maintain professional scepticism throughout the audit.
Moreover:
– We identify and assess the risks of material misstatements in the financial statements, whether due to fraud or error,
we design and perform audit procedures responsive to those risks and obtain sufficient and appropriate audit evidence
to serve as a basis for our audit opinion. The risk of not detecting material misstatements resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or
the override of internal control.
– We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s
internal control.
– We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
– We conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our audit report to the respective note in the financial statements. If such
disclosures are not appropriate, we will modify our audit opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease
to continue as a going concern.
– We evaluate the overall presentation, structure and content of the financial statements, including the notes, and whether
the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
– We communicate with the audit committee regarding, amongst other matters, the planned scope and timing of our
audit as well as significant findings, including any significant deficiencies in internal control that we identify during our
audit.
– We communicate to the audit committee that we have complied with the relevant professional requirements in respect
of our independence, that we will report any relationships and other events that could reasonably affect our
independence and, where appropriate, the related safeguards.
– From the matters communicated with the audit committee, we determine those matters that were of most significance
in the audit i.e. key audit matters. We describe these key audit matters in our auditor’s report unless laws or other legal
regulations preclude public disclosure about the matter or when in very rare cases, we determine that a matter should
not be included in our audit report because the negative consequences of doing so would reasonably be expected to
outweigh the public benefits of such communication.
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Annual Financial Report 2024
REPORT ON OTHER LEGAL REQUIREMENTS
Management report
In accordance with Austrian company law, the management report is to be audited as to whether it is consistent with the
financial statements and prepared in accordance with legal requirements.
Management is responsible for the preparation of the management report in accordance with Austrian company law and
other legal or regulatory requirements for insurance companies.
We have conducted our audit in accordance with generally accepted standards on the audit of management reports as
applied in Austria.
Opinion
In our opinion, the management report is consistent with the financial statements and has been prepared in accordance
with legal requirements. The disclosures pursuant to Section 243a UGB are appropriate.
Statement
Based on our knowledge gained in the course of the audit of the financial statements and our understanding of the
Company and its environment, we did not note any material misstatements in the management report.
Additional Information in accordance with Article 10 AP Regulation
We were elected as auditors at the Annual General Meeting on 26 May 2023 and were appointed by the supervisory board
on 20 June 2023 to audit the financial statements of the VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe,
Vienna.
On 24 May 2024 we were elected as auditors for the following financial year and were appointed by the supervisory board
on 25 June 2024 to audit the financial statements.
We have been auditors of the Vienna Insurance Group, without interruption, since the financial statements of
31 December 2013.
We declare that our opinion expressed in the “Report on the Financial Statements” section of our report is consistent with
our additional report to the audit committee, in accordance with Article 11 AP Regulation.
We declare that we have not provided any prohibited non-audit services (Article 5 Paragraph 1 AP Regulation) and that we
have ensured our independence throughout the course of the audit, from the audited Company.
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ENGAGEMENT PARTNER
The engagement partner for the audit is Mr Thomas Smrekar.
Vienna, 25 March 2025
KPMG Austria GmbH
Wirtschaftsprüfungs- und Steuerberatungsgesellschaft
signed by:
Thomas Smrekar
Auditor (Austrian Chartered Accountant)
This report is a translation of the original report in German, which is solely valid. The financial statements, together with our
auditor’s opinion, may only be published if the financial statements and the management report are identical with the audited
version attached to this report. This auditor’s opinion refers exclusively to the German-language and complete financial
statements including management report. Section 281 (2) UGB (Austrian Commercial Code) apply to any alternative
versions.
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Annual Financial Report 2024
DECLARATION BY THE MANAGING BOARD
We declare to the best of our knowledge that the annual financial statements of VIENNA INSURANCE GROUP AG
Wiener Versicherung Gruppe prepared in accordance with the requirements of Austrian commercial law and the Austrian
Insurance Supervision Act (VAG) give a true and fair view of the Company’s net assets, financial position and results of
operations, the management report presents the business development, performance and position of the Company so as
to give a true and fair view of its net assets, financial position and results of operations, and the management report provides
a description of the principal risks and uncertainties to which the Company is exposed.
Vienna, 25 March 2025
The Managing Board:
Hartwig Löger
General Manager (CEO),
Chairman of the Managing Board
Peter Höfinger
Deputy General Manager,
Deputy Chairman of the Managing Board
Liane Hirner
CFRO, Member of the Managing Board
Gerhard Lahner
COO, Member of the Managing
Board
Gábor Lehel
CIO, Member of the Managing
Board
Harald Riener
Member of the Managing Board
Christoph Rath
Deputy Member of the Managing
Board
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The Supervisory Board and its committees, Chair and Deputy Chairs periodically and repeatedly
monitored in detail the management of the Company and the activities of the Managing Board in
connection with its management and monitoring of the Group. This purpose was served by
detailed presentations and discussions during meetings of the Supervisory Board and its
committees as well as by detailed discussions on individual topics with Managing Board members
who provided comprehensive explanations and evidence relating to management, the financial
position of the Company and that of the Group. Among other things, the strategy, business
development (overall and in individual countries), risk management, the internal control system,
internal audit, compliance function and actuarial function activities and reinsurance, both at the
VIG Holding and Group level, and other important topics for the Company and
VIG Insurance Group were discussed during these meetings.
VIG Holding is committed to social responsibility and the importance of having employees drive forward performance,
innovation and expertise. In accordance with the Solvency II requirements, starting in 2016 non-financial aspects must be
part of the performance expectations for variable remuneration of Managing Board Members. Goal fulfilment for Managing
Board Members also depended on both financial and non-financial criteria in reporting year 2024. Detailed information on
the principles underlying the remuneration system is available in the remuneration policy and 2024 remuneration report.
The Supervisory Board has formed five committees from its Members. Information on the responsibilities and composition
of these committees is available on the Company’s website and in the 2024 consolidated corporate governance report.
One Annual General Meeting and seven Supervisory Board meetings distributed across the financial year were held in 2024.
In addition, four meetings of the Audit Committee (Accounts Committee) were held and one resolution of the Audit
Committee was passed by circular resolution. The financial statement and consolidated financial statement auditor,
KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, FN 269873y (KPMG), attended four Audit
Committee meetings and four Supervisory Board meetings in 2024, including the Supervisory Board meeting that
addressed the audit of the 2023 annual financial statements and the 2023 consolidated financial statements as well as
formal approval of the 2023 annual financial statements, and also attended the Annual General Meeting. KPMG also
informed the Audit Committee about the planning and procedure used to audit the financial statements and consolidated
financial statements for 2024. Three meetings of the Committee for Managing Board Matters (Human Resources Committee)
were held in 2024. The Committee for Urgent Matters (Working Committee) passed a decision by circular resolution in 2024.
The Nomination Committee met once in 2024. The Strategy Committee did not meet in 2024; strategic issues were dealt
with by the full Supervisory Board. Detailed information on meeting attendance by Supervisory Board members in financial
year 2024 is available in the 2024 Corporate Governance Report.
No agenda items were discussed in Supervisory Board meetings in 2024 without the participation of members of the
Managing Board.
In order to ensure the effectiveness and efficiency of its activities and procedures, the Supervisory Board performed a self-
evaluation of its procedures. The Supervisory Board’s evaluation of its activities found that its organisational structure and
procedures were satisfactory in terms of efficiency and in compliance with the law. It found no need for change or desire
for change in the practices followed to date.
KPMG was elected as auditor and Group auditor for financial year 2024 by proposal and motion of the Supervisory Board
and the Annual General Meeting on 26 May 2023, and therefore KPMG carried out these tasks for financial year 2024.
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Annual Financial Report 2024
The Audit Committee mainly dealt with the following topics in 2024:
By inspecting relevant documents, meeting with the Managing Board and discussions with the (consolidated) financial
statements auditor, the Audit Committee was able to monitor the accounting process and the procedure used for auditing
the financial statements and consolidated financial statements, and found no facts or circumstances providing grounds for
objection. The Audit Committee also reviewed the possibilities of providing recommendations or suggestions to ensure the
reliability of the accounting process and, based on the comprehensive information and documents obtained by the Audit
Committee during its review, found that the processes that had been established were adequate.
The Audit Committee also dealt with the VIG Holding and VIG Group ORSA reports in 2024 and reported on them to the
Supervisory Board. The Audit Committee monitored the effectiveness of the internal control system, internal audit and the
risk management system by obtaining descriptions of the processes and organisation of these systems from the Managing
Board, the (consolidated) financial statements auditor and the individuals directly responsible for these areas and deemed
them to be effective. The Audit Committee reported on these monitoring activities to the full Supervisory Board and stated
that no deficiencies had been identified. The Supervisory Board was also given the opportunity during Supervisory Board
meetings to verify the functional adequacy of the existing control and auditing systems.
In addition, the audit plan and the quarterly reports prepared by the internal audit department were debated by the Audit
Committee and the Supervisory Board and discussed with the head of the internal audit department and the Group internal
audit department.
The Audit Committee examined the Solvency and Financial Condition Reports (SFCRs) at both the solo and Group levels
and reported its findings to the Supervisory Board. No facts or circumstances were found that would have provided grounds
for objection.
The Audit Committee also received the 2024 annual financial statements, management report, 2024 consolidated corporate
governance report from the Managing Board and reviewed and carefully examined them. The Managing Board’s proposed
appropriation of profits was also reviewed with respect to capital adequacy and its effects on the solvency and financial
position of the Company during the course of this examination. The Audit Committee also audited the 2024 consolidated
financial statements and the Group management report, including the consolidated non-financial statement (sustainability
report). In addition, the auditor’s reports prepared by (consolidated) financial statements auditor KPMG for the 2024 annual
financial statements and management report and the 2024 consolidated financial statements and Group management
report, including the consolidated non-financial statement (sustainability report), were reviewed and examined by the Audit
Committee. As a result of this examination, a unanimous resolution was adopted to recommend to the Supervisory Board
that the annual financial statements be accepted. The Supervisory Board found no grounds for objection.
The (consolidated) financial statements auditor provided the Audit Committee with an additional report in accordance with
Article 11 of the Audit Regulation (EU) that explained the results of the financial statements audit and consolidated financial
statements audit. This additional report prepared by the financial statements auditor was also provided to the Supervisory
Board.
The Audit Committee also reviewed and monitored the independence of the auditor of the financial statements and
consolidated financial statements, and after reviewing suitable documents and supporting records submitted to the
Committee, particularly with respect to the appropriateness of the fee and the additional services provided to the Company,
was satisfied with the auditor’s independent status. The Audit Committee dealt with non-audit services and, when reviewing
and monitoring the independence of the auditor of the financial statements and consolidated financial statements, was
unable to identify any circumstances that would cast doubt on its independence and impartiality.
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In 2024, the Audit Committee dealt with the selection of the auditor for the financial statements and consolidated financial
statements for financial year 2025 and the auditor for consolidated sustainability reporting (consolidated non-financial
statement) for financial years 2024 and 2025. It was determined that there were no grounds for exclusion of KPMG or
circumstances that would give rise to concerns about impartiality, and that sufficient protective measures had been taken
to ensure an independent and impartial audit.
The Audit Committee reported to the Supervisory Board on the findings of these investigations and proposed KPMG to the
Supervisory Board and subsequently to the Annual General Meeting for election as auditor of the financial statements and
consolidated financial statements. The General Meeting selected KPMG as auditor of the financial statements and
consolidated financial statements for 2025. Furthermore, the Annual General Meeting selected KPMG as the auditor for the
consolidated sustainability report (consolidated non-financial statement) to the extent required by law for financial
years 2024 and 2025.
During one meeting of the Audit Committee, the members of the Committee consulted with the (consolidated) financial
statements auditor on the specification of two-way communications and audit planning.
The Supervisory Board dealt with the following topics in particular:
The audit results and all resolutions adopted by the Audit Committee were reported to the Supervisory Board in its next
meeting.
The 2024 annual financial statements together with the management report and 2024 consolidated corporate governance
report, the 2024 consolidated financial statements together with the Group management report, including the consolidated
non-financial statement (sustainability report), as well as the Managing Board’s proposed appropriation of profits were dealt
with and examined in detail by the full Supervisory Board. The proposed appropriation of profits was checked, in particular,
to ensure that it was reasonable when capital requirements were taken into account. The proposal complies with applicable
legal requirements and proactively considers the macroeconomic and financial situation and its impact on the Company’s
solvency and financial position. The proposal is in line with the continuously pursued prudent and sustainable capital
planning to ensure a solid solvency and liquidity position in the long term.
The Supervisory Board also dealt with IT security matters and ESG matters in financial year 2024.
The Managing Board and Supervisory Board prepared a remuneration report for financial year 2024.
During the reporting period, the Nomination Committee and the Supervisory Board dealt with the appointment of a Deputy
member of the Managing Board. In 2024, the Supervisory Board appointed Mr Christoph Rath as Deputy Member of the
Managing Board of VIG Holding effective 1 September 2024.
In 2024, the Managing Board of VIG Holding informed the members of the Supervisory Board of material sustainability and
IT security matters. In the reporting year, the VIG sustainability programme, the new legal framework for sustainability
reporting, the results of the consolidated double materiality analysis and the preparatory work for the transition plan for
climate protection consolidated for VIG insurance companies were discussed.
In addition, the auditor’s reports prepared by (consolidated) financial statements auditor KPMG for the 2024 annual financial
statements and management report and the 2024 consolidated financial statements and Group management report,
including the consolidated non-financial statement (sustainability report), were reviewed and examined by the Supervisory
Board. KPMG’s audit of the 2024 annual financial statements and management report and the 2024 consolidated financial
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Annual Financial Report 2024
statements and Group management report, including the consolidated non-financial statement (sustainability report), did
not lead to any reservations. KPMG determined that the annual financial statements comply with statutory requirements
and give a true and fair view of the net assets and financial position of the Company as of 31 December 2024, and of the
results of operations of the Company for financial year 2024 in accordance with Austrian generally accepted accounting
principles. The management report is consistent with the annual financial statements. The disclosures pursuant to
Section 243a UGB (Austrian Commercial Code) are appropriate. KPMG further determined that the consolidated financial
statements also comply with statutory requirements and give a true and fair view of the net assets and financial position of
the Group as of 31 December 2024, and of the results of operations and cash flows of the Group for financial year 2024 in
accordance with IFRS as adopted by the EU and Section 138 of the Austrian Insurance Supervision Act (VAG) in
combination with Section 245a of the Austrian Commercial Code (UGB). The Group management report, including the
consolidated non-financial statement (sustainability report), is in line with the consolidated financial statements. In addition,
in accordance with Section 269 (3) UGB, KPMG found that the 2024 consolidated corporate governance report had been
prepared.
The final results of the review by the Supervisory Board also provided no grounds for objection. The Supervisory Board
stated that it had nothing to add to the auditor’s reports for the financial statements and consolidated financial statements.
After thorough examination, the Supervisory Board therefore adopted a unanimous resolution to approve the 2024 annual
financial statements prepared by the Managing Board, not to raise any objections to the management report, the 2024
consolidated financial statements and Group management report, including the consolidated non-financial statement
(sustainability report), the 2024 consolidated corporate governance report and to agree with the appropriation of profits
proposed by the Managing Board.
The 2024 annual financial statements have therefore been approved in accordance with Section 96 (4) of the Austrian Stock
Corporation Act (AktG). The Supervisory Board proposes to the General Meeting that it approves the Managing Board’s
proposed appropriation of profits and formally approves the actions of the Managing Board and Supervisory Board.
Vienna, April 2025
The Supervisory Board:
Dr Rudolf Ertl (Chairman)
Group
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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Service
information
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Annual Financial Report 2024
LIST OF ABBREVIATIONS
Abbreviation Full company name
365.life KOOPERATIVA, d.s.s., a.s.
Aegon Life AEGON TOWARZYSTWO UBEZPIECZEŃ NA ŻYCIE SPÓŁKA AKCYJNA
Alfa (Hungary) Alfa Vienna Insurance Group Biztosító Zrt.
APEIRON APEIRON Biologics AG
Asirom Asigurarea Românească - ASIROM Vienna Insurance Group S.A.
Asset Management Hungary VIG Befektetési Alapkezelő Magyarország Zártkörűen Működő Részvénytársaság
Beesafe BEESAFE SPÓŁKA Z OGRANICZONA ODPOWIEDZIALNOSCIA
BCR Life BCR Asigurări de Viaţă Vienna Insurance Group S.A.
Beteiligungs- und Wohnungsanlagen GmbH Beteiligungs- und Wohnungsanlagen GmbH
BTA Baltic BTA Baltic Insurance Company AAS
Bulstrad Life "BULSTRAD LIFE VIENNA INSURANCE GROUP" EAD
Bulstrad Non-Life INSURANCE ONE-SHAREHOLDER JOINT-STOCK COMPANY BULSTRAD VIENNA INSURANCE GROUP EAD
Carpathia Pensii CARPATHIA PENSII-SOCIETATE DE ADMINISTRARE A FONDURILOR DE PENSII PRIVATE S.A.
Compensa Life (Poland)
1)
Compensa Towarzystwo Ubezpieczeń Na Życie S.A. Vienna Insurance Group
Compensa Life (Estonia)
1
Compensa Life Vienna Insurance Group SE
Compensa Non-Life (Lithuania)
1
"Compensa Vienna Insurance Group", ADB
Compensa Non-Life (Poland)
1
Compensa Towarzystwo Ubezpieczeń S.A. Vienna Insurance Group
Corvinus Corvinus Nemzetközi Befektetési Zrt.
ČPP Česká podnikatelská pojišťovna, a.s., Vienna Insurance Group
Digital Impact Labs Leipzig Digital Impact Labs Leipzig GmbH
Donaris Compania de Asigurări "DONARIS VIENNA INSURANCE GROUP" Societate pe Actiuni
Donau Versicherung DONAU Versicherung AG Vienna Insurance Group
DTA Deferred tax asset
DTL Deferred tax liabilities
Erste Group Erste Group Bank AG
GPIH Joint Stock Company Insurance Company GPI Holding
InterRisk InterRisk Towarzystwo Ubezpieczeń S.A. Vienna Insurance Group
InterRisk Life InterRisk Lebensversicherungs-AG Vienna Insurance Group
InterRisk Non-Life InterRisk Versicherungs-AG Vienna Insurance Group
Intersig INTERSIG VIENNA INSURANCE GROUP Sh.A.
IRAO Joint Stock Company International Insurance Company IRAO
ISTCube IST cube (EuVECA) GmbH & Co KG
Kniazha
PRIVATE JOINT-STOCK COMPANY "UKRAINIAN INSURANCE COMPANY "KNIAZHA VIENNA INSURANCE
GROUP"
Kniazha Life PRIVATE JOINT-STOCK COMPANY "INSURANCE COMPANY "KNIAZHA LIFE VIENNA INSURANCE GROUP"
Komunálna KOMUNÁLNA poisťovňa, a.s. Vienna Insurance Group
Kooperativa (Slovakia)
1
KOOPERATIVA poisťovňa, a.s. Vienna Insurance Group
Kooperativa (Czech Republic)
1
Kooperativa pojišťovna, a.s., Vienna Insurance Group
KPMG KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft
Health Health insurance
Life Life insurance
Makedonija Osiguruvanje Stock Company for Insurance and Reinsurance MAKEDONIJA Skopje - Vienna Insurance Group
n/a not applicable
Omniasig OMNIASIG VIENNA INSURANCE GROUP S.A.
Österreichisches Verkehrsbüro AG Österreichisches Verkehrsbüro Aktiengesellschaft
PAC Doverie Pension Assurance Company Doverie AD
Pereca 11 Sp.z.o.o. Pereca 11 Spółka z ograniczoną odpowiedzialnością
Plug and Play Plug and Play Austria GmbH
Ray Sigorta Ray Sigorta A.Ş.
Property/Casualty Property and casualty insurance
Seesam Seesam Insurance AS
Sigma Interalbanian Sigma Interalbanian Vienna Insurance Group Sh.a
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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Abbreviation Full company name
Standard & Poor’s (S&P) Standard & Poor’s Financial Services LLC, New York City
TUW "TUW" Towarzystwo Ubezpieczeń Wzajemnych „TUW"
Union Biztosító UNION Vienna Insurance Group Biztosító Zrt.
USG Private Joint-Stock Company " Insurance Company "USG "
VBV - Betriebliche Altersvorsorge AG VBV - Betriebliche Altersvorsorge AG
VENPACE INSHIFT GmbH & Co. KG
Vienna Life (Poland)
1
Vienna Life Towarzystwo Ubezpieczeń na Życie S.A. Vienna Insurance Group
Vienna osiguranje (Bosnia and Herzegovina)
1
Insurance Company Vienna osiguranje d.d., Vienna Insurance Group
Vienna PTE VIENNA POWSZECHNE TOWARZYSTWO EMERYTALNE SPÓŁKA AKCYJNA VIENNA INSURANCE GROUP
Vienna-Life (Liechtenstein)
1
Vienna-Life Lebensversicherung AG Vienna Insurance Group
Viennalife (Türkiye) VİENNALİFE EMEKLİLİK VE HAYAT ANONİM ŞİRKETİ
viesure viesure innovation center GmbH
VIG Fund VIG FUND, a.s.
VIG Holding
2
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
VIG Re VIG RE zajišťovna, a.s.
VIG/C-QUADRAT VIG/C-QUADRAT TOWARZYSTWO FUNDUSZY INVESTYCYJNYCH SPÓŁKA AKCYJNA
VIG, VIG-Group, VIG-insurance group All consolidated group companies.
Wiener Osiguranje (Bosnia and Herzegovina)
1
Wiener Osiguranje Vienna Insurance Group ad
Wiener Osiguranje (Croatia)
1
Wiener osiguranje Vienna Insurance Group dioničko društvo za osiguranje
Wiener Re WIENER RE akcionarsko društvo za reosiguranje
Wiener Städtische WIENER STÄDTISCHE VERSICHERUNG AG Vienna Insurance Group
Wiener Städtische Osiguranje (Serbia)
1
WIENER STÄDTISCHE OSIGURANJE akcionarsko drustvo za osiguranje
Wiener Städtische Versicherungsverein Wiener Städtische Wechselseitiger Versicherungsverein - Vermögensverwaltung - Vienna Insurance Group
Wiener TU WIENER TOWARZYSTWO UBEZPIECZEŃ SPÓŁKA AKCYJNA VIENNA INSURANCE GROUP
Winner Life Joint Stock Insurance Company WINNER LIFE - Vienna Insurance Group
Winner Non-Life Joint Stock Insurance Company WINNER-Vienna Insurance Group
1
Country names in parentheses are added if there is more than one company with the same abbreviated name and it is not clear from the context which one is intended. The context is assumed to be clear,
for example, if the name is used in a description of activities taking place within a country.
2
Used when referring to the listed individual company.
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Annual Financial Report 2024
NOTICE
This annual report includes forward-looking statements based
on current assumptions and estimates that were made by
the management of VIENNA INSURANCE GROUP AG
Wiener Versicherung Gruppe to the best of its knowledge.
Disclosures using the words “expected”, “target” or similar
formulations are an indication of such forward-looking
statements. Forecasts related to the future development of
the Company are estimates made on the basis of
information available as of the date this annual report went
to press. Actual results may differ from the forecasts if the
assumptions underlying the forecast prove to be wrong or
if unexpectedly large risks occur.
Rounding differences may occur when rounded amounts or
percentages are added.
The annual report was prepared with the greatest possible
care to ensure the accuracy and completeness of the infor-
mation in all parts. However, rounding, typesetting and
printing errors cannot be completely ruled out.
ADDRESS
VIENNA INSURANCE GROUP AG
Wiener Versicherung Gruppe
Schottenring 30
1010 Vienna
Tel.: +43 (0) 50 390 22000
WEBSITE – ONLINE REPORT
The annual report is available in German and English and
can also be downloaded as a PDF file in both languages
from our website (group.vig) under Investor Relations.
Service tip
Online annual report
On the VIG Insurance Group
website you will find an online
version of the annual report optimised for both the internet
and mobile devices. All sections can be downloaded as
PDF files. You can also download the most important tables
as Excel files. Other functions such as links with
in the report
and a comparison with the previous year create trans-
parency and take you directly to the information you require.
The online version also allows you to search the report
quickly and conveniently using the full-
text search function.
The sear
ch results are presented on an overview page,
sorted by relevance. The search term is highlighted in colour
both there and on the report page.
In case of doubt, the German version is authoritative.
Editorial deadline: 25 March 2025
Group Annual Report 2020 VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
Annual Financial Report 2024