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2015/02/12 / Erste Group Research
- Vienna Insurance Group AG (VIG; S&P: A+) is the leading insurance
group in Central and Eastern Europe (incl. Austria) with a ~20% market
share in its 10 core markets. The group offers life, property and casualty
as well as health insurance policies, employs approx. 23,000 people and
has a presence in 25 countries overall.

- In first 9 months of 2014, the group's premium volume remained roughly
stable compared to the previous year, while net earnings (partially due to
one-off charges in the previous year) rose by 45.9% to EUR 339.3mn. In
2014 a premium volume of EUR 9.4bn was achieved (-0.1% y/y, preliminary,
unconsolidated and unaudited). Of this, 43.4% were attributable to Austria
and more than half to the CEE region. In 2013, a targeted reduction in the
single premium business in Poland, a reduction in the car insurance
business in Italy, as well as a write-down of goodwill in Romania led to an
interruption of the group's long term trend of earnings growth.

- Between 01.01.2014 and 30.09.2014, the group's Solvency I ratio rose
from 236% to 295%. VIG regards itself well prepared for the capital
requirements coming into force from 01.01.2016 onward (Solvency II).

- Since 19.07.2005, S&P has assigned at least a rating of A+ with a stable
outlook to VIG, which has most recently been confirmed on 31.07.2014.
S&P assesses the business and financial risk profile, capital resources and
earnings situation of VIG as "very strong". Viewed in isolation, the capital
adequacy criterion fulfills S&P's requirements for an "AAA" rating.
S&P justifies the difference in VIG's rating compared to better rated Western
European peers with its "low geographic earnings diversification".

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General information

AuthorErste Group Research
Product nameCredit News
Topic in focusCredits/ Corporate bonds
Economy in focusAustria, CEE, Eurozone
Currency in focusEuro
Sector in focusInsurance


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