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Group Annual Report 2022 VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
Annual Financial Report 2022 | Vienna Insurance Group
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GROW
TH
Annual Financial Report 2022
2
CONTENTS
Group management report
6
6
6
7
11
11
20
20
20
20
20
22
22
22
22
23
23
23
5
GROUP MANAGEMENT REPORT 2022
Business development and economic position
Economic environment
Legal environment
Group business development and financial
performance indicators
Branch offices
Business development and fi nancial performance
indicators by reportable segment
Business development by balance sheet unit
Other mandatory disclosures
Research and development
Holdings, purchase and sale of own shares
Internal control and risk management system in
the accounting process
Capital, share, voting and control rights and
associated agreements
Consolidated non-fi nancial report
Corporate governance
Outsourcing disclosures
Expected development and risks of the Group
Signifi cant risks and uncertainties
Expected development – Outlook for 2023
27
28
29
29
30
30
32
152
155
169
Consolidated financial statements
173
174
28
Notes to the consolidated financial statements
Additional disclosures in accordance with the
Austrian Insurance Supervision Act (VAG)
Corporate governance report
Supervisory Board report
Declaration by the Managing Board
Auditor’s report
Consolidated balance sheet
Consolidated income statement
Consolidated statement of comprehensive income
Consolidated shareholders’ equity
Consolidated cash ﬂow statement
CONSOLIDATED FINANCIAL STATEMENTS 2022
Primary financial statements
Read more
Additional videos and information about the
fi nancial year 2022 are available online at
www.annual-report.vig/2022
Some of the additional content:
• Videos with the future heads of the
Managing Board Hartwig Löger and
Peter Höfi nger
• Explanatory videos on “Who is VIG?”
on the “VIG 25 Strategy Programme”
• Further highlights from the
2022 fi nancial year
All VIG Holding publications are
available at www.vig.com/reports
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
3
For VIG, the concepts of more growth and more
solidarity go hand in hand. You can read more
about our commitment to society and the
environment and about further aspects of
responsible corporate governance in our
Sustainability Report 2022 or at
www.vig.com/corporate-responsibility
MORE
SO
LI
DA
RI
TY
Nachhaltigkeitsbericht 2022
Management report
193
181
183
183
188
192
193
193
182
MANAGEMENT REPORT TO THE
ANNUAL FINANCIAL STATEMENTS IN
ACCORDANCE WITH UGB
Company profile
Management report 2022
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
197
198
198
200
202
215
216
221
222
Auditor’s report
Declaration by the Managing Board
Supervisory Board report
ANNUAL FINANCIAL STATEMENTS IN
ACCORDANCE WITH UGB
Separate Financial Statements 2022
Balance sheet
Income statement
Notes to the financial statements for 2022
Proposed appropriation of profits
Service
227
SERVICE INFORMATION
2
28
List of abbreviations
230
Notice – Address
4
Annual Financial Report 2022
VIE
NNA 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 2022
Business development and economic position
ECONOMIC ENVIRONMENT
Even though economic growth in the eurozone was con-
s
istently good in the first two quarters of 2022 – in the 2
nd
quarter of 2022, growth of 0.8% was reported compared
with the previous year – the 3
rd
quarter was the first time
that weakness began to show, characterised by growth of
just 0.3% compared with the previous quarter.
As participant in the market, the business activities of VIG
are influenced by the development of macroeconomic fac-
tors, including the rate of unemployment, GDP and inflation.
The consequences of the Russian attack on Ukraine, massive
energy price increases and the ongoing impacts on supply
chains are the drivers behind increased inflation, which was
expected to have reached its peak towards the end of 2022.
As a result, in December 2022 prices in the eurozone rose
by just 9.2% year on year, which is significantly lower than
the 10.1% rate of increase from the previous month. Addi-
tionally, 2022 saw a significant rise in inflation in almost all
markets in which the VIG Insurance Group operates.
In Austria, the recovery in the tourism sector and positive
trends from public administration and the building sector con-
tributed to GDP growth, especially in the first three quarters of
2022 (Q1: +9.2%; Q2: +6.1%; Q3: +1.7%). Despite a posi-
tive contribution from private consumption, weak exports
and slightly lower investments led to a weakening of the
growth dynamic. Influenced by the electricity price cap in
place since December 2022 and generally lower strain on
energy prices, inflation fell in Austria from its 2022 peak of
11.6% in October to 10.5%.
In Central and Eastern Europe (CEE), low export demand
and weak sentiment indicators suggest a contraction of in-
dustrial production, which is at a level not seen since the re-
cession of 2012. In such an environment, it is no big surprise
that there already was a technical recession in the 2
nd
half of
2022 in Hungary and in the Czech Republic and that there
was negative performance in Poland in the 4
th
quarter of 2022.
Private consumption – at times driven by huge price rate
increases – also contributed to a generally weak performance.
But in the CEE region, too, inflation rates ought to have reached
their peak, or should soon be about to. It is expected that
Hungary, which only recently removed fuel price regulation,
is yet to see price rises reach their peak; this is anticipated
later in the course of 2023. In total, the analysts at Erste
Group calculate an average inflation rate of 13.9% for the
CEE region for 2022, which is a considerable increase
compared to 2021 (4.5%).
In spite of the somewhat weaker environment in all of the
economic areas mentioned above, employment rates re-
main at solid levels. Erste Group expects unemployment to
reach 4.8% in Austria in 2022 (2021: 6.2%). In the CEE region,
the unemployment rates is expected to fall from 5.4% in 2021
to 4.8% in 2022.
LEGAL ENVIRONMENT
SUSTAINABLE FINANCE
The comprehensive European Union legislation referre
d to as
the “European Green Deal” or “Sustainable Finance” con-
tinued in 2022. The legislative process for the Corporate Sus-
tainability Reporting Directive (CSRD) was pursued to a sig-
nificant extent alongside the ongoing work carried out by
the European Financial Reporting Advisory Group (EFRAG)
on the new mandatory European Sustainability Reporting
Standards (ESRS) that will take effect from reporting year
2024, the final draft of which was submitted to the Euro-
pean Commission in November 2022. Of particular note is
the scope of the mandatory standard ESRS E1, which stipu-
lates disclosures relating to a transition plan, among other
requirements. This transition plan is primarily intended as a
roadmap for the asset and liability side of the balance sheet
and the office environment in achieving the goals of the
Paris Climate Agreement. In February 2022, the European
Union published its Corporate Sustainability Due Diligence
Directive (CSDDD), which provides in particular for due dili-
gence obligations for the protection of people and the en-
vironment, both on the customer and the supplier side. It is
G
roup management report
2022
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
7
currently expected that the CSDDD will become applicable
during the course of 2025.
In terms of implementation, from August 2022, the sustain-
ability preferences of life insurance customers were to be
taken into account and sustainability risks in risk manage-
ment and investments were to be illustrated. The life in-
surance companies within the VIG Group have also prepared
for the use of product templates for life insurance products
from 2023, in line with the Sustainable Finance Disclosure
Regulation (SFDR). The Sustainability Report 2021, published
in 2022, contained for the first time the taxonomy-eligible
investment and underwriting KPIs in accordance with Article 8
of the EU Taxonomy Regulation. Starting in 2023, it will be
mandatory to report on the taxonomy-compliant investment
and underwriting KPIs.
DIGITAL RESILIENCE
Regulating the digital security of the financial sec
tor was also
a focus of attention at the European level during the reporting
period. The Digital Operational Resilience Act (DORA) was
published in the Official Journal of the European Union on
27 December 2022. DORA will be applicable to European
financial market participants from 17 January 2025 and will
oblige them, among other things, to take all necessary se-
curity measures to mitigate cyber-attacks and other IT risks.
INTERNATIONAL SANCTIONS
The international sanctions environment changed dram
ati-
cally in 2022 in terms of its dynamic, its complexity and its
scope. In response to Russia’s aggression against Ukraine,
multiple countries and organisations – above all the Euro-
pean Union, the United States of American and the United
Kingdom – imposed far-reaching sanctions on Russia or ex-
panded existing sanctions. The restrictions range from (in-
vestment) restrictions on certain economic sectors to em-
bargos on goods and complete trade embargoes for cer-
tain regions to the considerable expansion of the number of
people and companies placed on sanctions lists, with
whom business relations are therefore prohibited. Due to
human rights abuses by the Iranian regime, the European
Union in particular imposed new sanctions on Iran, while the
United States of America imposed further sanctions on the
country.
As the conflicts continue, additional restrictive measures
have already been taken against both Russia and Iran in
2023, and further stricter measures can be expected in the
course of the year.
WHISTLEBLOWER PROTECTION
The EU Directive (EU) 2019/1937 on the protection of
per-
sons who report breaches of Union law (Whistleblowing Di-
rective) sets out minimum standards for protecting whistle-
blowers from retaliation and the establishment of confiden-
tial reporting channels by companies and public bodies.
The Whistleblowing Directive had to be transposed into
national law by EU Member States by 17 December 2021.
As the majority of Member States had failed to meet this
deadline for local transposition, the European Commission
initiated infringement proceedings against the States con-
cerned at the beginning of 2022. While a large number of
draft bills were published at national level during the re-
porting period, most Member States still have not yet trans-
posed the Whistleblowing Directive into national law. In Feb-
ruary 2023, the Austrian Parliament passed the Whistle-
blower Protection Act (Hinweisgeber:innenschutzgesetz –
HSchG).
GROUP BUSINESS DEVELOPMENT AND FINANCIAL
P
ERFORMANCE INDICATORS
GENERAL INFORMATION
The over 50 VIG insurance companies and pension funds
operate in the following reporting 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, starting on page 11. The segment Extended CEE in-
cludes the countries of Albania including Kosovo, Baltic states,
8
Annual Financial Report 2022
Bosnia-Herzegovina, Bulgaria, Croatia, Hungary, Mold
ova,
North Macedonia, Romania, Serbia, Slovakia and Ukraine.
The segment Special Markets consists of the four coun-
tries Germany, Georgia, Liechtenstein and Türkiye. The
Montenegro and Belarus markets were not included in
the scope of consolidation in 2022 due to immateriality.
More information on the scope of consolidation and con-
solidation methods is provided on page 61 of the notes to
the consolidated financial statements. The notes to the
consolidated financial statements provide detailed infor-
mation on changes in the scope of consolidation starting
on page 62.
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. Use of this multi-
brand strategy does not mean, however, that potential syn-
ergies 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
countries. Mergers of insurance companies are considered
if the additional synergies that can be achieved outweigh
the benefits of a diversified market presence. To ensure uni-
form management, specific country responsibilities also
exist at Managing Board level. As part of the VIG 25 stra-
tegic programme, the country responsibilities of the mem-
bers of the VIG Holding Managing Board were reassigned
and, in addition 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 228. In order to avoid
duplicate information, reference will be made below to ap-
propriate information in the notes. Changes in significant
balance sheet and income statement items are presented
in both the segment reporting and the notes to the financial
statements. Additional disclosures in the management
report below are intended to explain these data in more
detail.
FINANCIAL PERFORMANCE INDICATORS
The key financial performance indicators that form the basis
for assessing the business development are presented below.
Premium volume
A detailed disclosure of premium development is included
in Note 15. Premiums written – gross in the notes to the
consolidated financial statements.
VIG Insurance Group wrote EUR 12,559.2 million in pre-
miums in 2022, an increase of 14.1% compared to the same
period in the previous year (2021: EUR 11,002.6 million). This
amount includes the Aegon companies in Hungary and Türkiye
that were acquired and consolidated for the first time in 2022
and, with around EUR 444.5 million, account for 3.7% of the
total premium volume. It retained EUR 11,177.0 million of the
gross premiums written (2021: EUR 9,878.6 million).
EUR 1,382.3 million was ceded to reinsurance companies
in 2022 (2021: EUR 1,124.0 million).
ABBREVIATED CONSOLIDATED INCOME STATEMENT
2022
2021
∆ in %
∆ absolute
in EUR millions
Premiums written – gross 12,559.2
11,002.6
14.1%
1,556.7
Net earned premiums –
retention 10,910.9
9,705.6
12.4%
1,205.3
Financial result excl. result
from shares in at equity
consolidated companies 778.9
607.0
28.3%
171.9
Income from investments 1,359.5
1,159.5
17.2%
199.9
Expenses for investments
and interest expenses
-580.5 -552.5 5.1%
-28.0
Result from shares in at
equity consolidated
companies
18.3
24.9
-26.5% -6.6
Other income 185.9
165.8
12.1%
20.1
Expenses for claims and
insurance benefits – retention
-7,912.0 -7,136.6 10.9%
-775.5
Acquisition and administrative
expenses
-2,930.5 -2,536.8 15.5%
-393.6
Other expenses -421.5 -317.9 32.6%
-103.6
Business operating result 630.0
512.0
23.0%
118.0
Adjustments* -67.6 -0.7 >100%
-66.9
Result before taxes 562.4
511.3
10.0%
51.1
Taxes -98.1 -123.3 -20.4% 25.2
Result for the period 464.3
388.0
19.7%
76.3
Non-controlling interests in
net result for the period 1.7
-12.3 >100%
13.9
Result after taxes and non-
controlling interests 465.9
375.7
24.0%
90.2
Earnings per share (in EUR) 3.58
2.94
22.0%
0.6
*The value consists of impairments of intangible assets
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
9
In 2022, double-digit growth rates were generated in the
motor lines of business (motor third party liability +20.1%,
motor own damage +16.1%), in other property and casualty
insurance (+16.0%), in health insurance (+12.4%) and in re-
gular premium life insurance (+11.1%). Premium growth was
especially strong in the segments Czech Republic (+13.8%),
Extended CEE (+24.5%), Special Markets (+59.2%) and
Group Functions (+16.9%). In the segment Extended CEE,
the Baltic states (+20.2%), Romania (+30.6%) and Hungary
(+92.6% including Aegon) recorded particularly dynamic
premium growth. Overall, the Group generated 65.7% of its
premiums outside Austria in 2022.
Net earned premiums rose by 12.4% from EUR 9,705.6 mil-
lion in 2021 to EUR 10,910.9 million in 2022. Net reinsur-
ance cessions were EUR 1,283.5 million in 2022 (2021:
EUR 1,117.3 million).
Expenses for claims and insurance benefits – retention
A detailed disclosure of expenses for claims and insurance
benefits is included in Note 19. Expenses for claims and
insurance benefits – retention in the notes to the consoli-
dated financial statements.
Expenses for claims and insurance benefits less reinsurers’
share were EUR 7,912.0 million in 2022, representing a year-
on-year increase of 10.9% (2021: EUR 7,136.6 million). The in-
crease results from the significantly higher volume of business.
Acquisition and administrative expenses
A detailed disclosure of acquisition and administrative ex-
penses is included in Note 20. Acquisition and admin-
istrative expenses in the notes to the consolidated financial
statements.
The 15.5% increase in acquisition and administrative ex-
penses for all fully consolidated VIG companies to
EUR 2,930.5 million was due to the significantly higher
business volume and primarily concerns commission
expenses (2021: EUR 2,536.8 million).
Financial result
A detailed disclosure of the financial result (excluding shares
in at equity consolidated companies) is included in Note 16.
Financial result excl. result from shares in at equity consoli-
dated companies in the notes to the consolidated financial
statements.
The financial result (incl. the result from shares in at equity
consolidated companies) was EUR 797.2 million in 2022
(2021: EUR 631.9 million). The increase of 26.2% com-
pared with the previous year is due primarily to the first-time
consolidation of the Aegon companies in Hungary and
Türkiye acquired in 2022 as well as higher interest rates.
Both effects overcompensated the impairments in con-
nection with exposure to Russian government bonds and
corporate bonds in the amount of EUR 84.1 million.
Result before taxes
The Group result before taxes was EUR 562.4 million in 2022
(2021: EUR 511.3 million). The significant 10.0% increase
in profits is primarily the result of the good operating
performance and the improved financial result. In addition,
the Group result before taxes includes impairments of
goodwill and of other intangible assets that amount to
EUR 67.6 million.
Adjusted for Impairments of intangible assets, the operating
result of EUR 630.0 million for 2022 was 23.0% above that
of the previous year (2021: EUR 512.0 million).
Investments
A brief presentation of the investments is included in the notes
to the consolidated financial statements starting on page 72.
BREAKDOWN OF INVESTMENTS 2022
Property 9.6%
(8.0%)
Loans 6.1%
(5.8%)
Other investments 9.9%
(9.3%)
Shares 3.5% (5.1%)
Bonds 69.3%
(70.3%)
Affiliated companies
1.6% (1.5%)
Values for 2021 in parentheses
10
Annual Financial Report 2022
Total investments, including cash and cash equivalen
ts,
were EUR 34,399.3 million as of 31 December 2022 (31
December 2021: EUR 37,266.1 million). The decrease
compared to the previous year is primarily due to price
drops, particularly for fixed-income securities, caused by
the interest rate increase.
The investments include property, shares in at equity con-
solidated companies and all financial assets, using the look-
through approach for consolidated special funds, as well as
other fund investments allocated to the asset classes. Fi-
nancial instruments for unit- and index-linked life insurance
are not included. In 2022, these decreased by 16.0% from
E
UR 8,525.3 million in 2021 to EUR 7,164.1 million, mainly
due to the difficult situation on the capital markets.
Shareholders’ equity
Shareholders’ equity decreased by 20.8% to EUR 4,434.2
million in 2022 (2021: EUR 5,597.9 million). This development
is primarily due to the decrease in unrealised profits and losses
from financial assets available for sale – triggered by negative
stock market prices as a result of the rising interest rates, par-
ticularly with regard to fixed-interest securities. The share-
holders’ equity attributable to shareholders decreased ac-
cordingly from EUR 5,478.2 million in 2021 to EUR 4,223.8
million in 2022.
Underwriting provisions
A detailed disclosure of underwriting provisions is included
in Note 10. Underwriting provisions in the notes to the con-
solidated financial statements.
Underwriting provisions were EUR 31,987.9 million as of the
reporting date 31 December 2022 (2021: EUR 32,546.2 mil-
lion). This is a decrease of 1.7% over the previous year. Here,
the decrease in the provision for premium refunds, which was
primarily due to negative price developments for the financial
assets, could not be offset by the first-time consolidation of
the Aegon companies.
Cash flow
The cash flow from operating activities mainly increased as a
result of the significantly higher business operating result, which
rose from EUR 522.1 million in 2021 to EUR 625.0 million in
2022. The cash flow from investing activities developed
from EUR -415.5 million in 2021 to EUR -1,001.4 million as
a result of the acquisition of the Aegon companies in Hun-
gary and Türkiye. Financing activities produced a cash flow
of EUR -24.1 million in 2022 (2021: EUR 597.7 million). The
high positive cash flow from the previous year was mainly
due to the issue of the VIG Holding hybrid bond and
sustainability bond. The Group had cash and cash equiva-
l
ents of EUR 2,059.0 million at the end of 2022 (2021:
EUR 2,456.3 million). The amount of interest and dividends
received was EUR 840.9 million in 2022 (2021: EUR 719.7 mil-
lion).
Significantly increased earnings per share
Earnings per share is a key figure equal to the result for the
period (less non-controlling interests) divided by the aver-
age number of shares outstanding. The number of shares
remained unchanged compared to the previous year.
Earnings per share were EUR 3.58 in 2022 (2021: EUR 2.94).
This therefore represented an increase of 22.0% compared
to the previous year.
Operating Return on Equity (Operating RoE) significantly
improved
Operating return on equity (operating RoE) measures the
profitability of the Group by expressing the business oper-
ating result as a ratio of the capital employed. This ratio is
calculated by dividing the business operating result by the
average shareholders’ equity. Shareholders’ equity ad-
justed for a provision for unrealised gains and losses is used
for this purpose.
The Group earned an operating return on equity of 11.9%
in 2022 (2021: 10.9%).
* adjusted by Non-controlling interests
Operating Return on Equity 31.12.2022
31.12.2021
31.12.2020
in EUR millions
Shareholders' equity 4,434.2
5,597.9
5,285.8
Unrealised gains and losses
recognised in equity* 1,167.9
-568.1 -906.6
Adjusted shareholders’ equity 5,602.1
5,029.8
4,379.2
Average adjusted shareholders’
equity 5,316.0
4,704.5
Business operating result 630.0
512.0
Operating RoE in % 11.9
10.9
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
11
Combined ratio significantly below 100%
The combined ratio is calculated as the sum of underwriting
income and expenses, net payments for claims and insur-
ance benefits, including the net change in underwriting pro-
visions, and acquisition and administrative expenses, di-
vided by net earned premiums in the property and casualty
balance sheet unit. The Group’s combined ratio for 2022
was 94.9%, which is slightly up on the previous year (2021:
94.2%).
Combined ratio 2022
2021
in EUR millions
Net earned premiums – retention 6,534.3
5,653.0
Expenses for claims and insurance benefits –
retention
-4,022.0
-3,475.4
Acquisition and administrative expenses,
including other underwriting income and
expenses -2,180.4
-1,847.0
Total expenses -6,202.4
-5,322.4
Combined ratio in % 94.9
94.2
BRANCH OFFICES
VIG Insurance Group has branch offices in Germany, France,
Italy, Kosovo, Slovenia, the Baltic states Estonia, Latvia and
Lithuania, and the Northern European countries of Sweden,
Norway and Denmark. Information on branch offices and
any significant changes compared to the previous year are
discussed in more detail for the respective reportable seg-
ments in the section below, if applicable. A list of the ad-
dresses of the insurance companies and branch offices is
also provided in the Group Annual Report 2022 on page 200.
BUSINESS DEVELOPMENT AND FINANCIAL
PERFORMANCE 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 presenting
business development in these reportable segments and the
market position held by the VIG Group in the respective
countries. A detailed presentation of the consolidated income
statement by reportable segments and premiums written by
reportable segments and lines of business is provided on
page 69 in the notes to the consolidated financial statements
and in Note 15. Premiums written – gross on page 125.
PREMIUMS WRITTEN
2022
2021
∆ in %
∆ absolute
in EUR millions
Austria 4,138.4
4,048.4
2.2%
89.9
Czech Republic 2,122.1
1,864.9
13.8%
257.2
Poland 1,352.9
1,279.8
5.7%
73.1
Extended CEE
1
3,593.2
2,886.7
24.5%
706.5
Special Markets
2
846.2
531.7
59.2%
314.5
Group Functions
3
2,297.8
1,965.0
16.9%
332.8
Consolidation -1,791.4
-1,574.0
13.8%
-217.4
Total 12,559.2
11,002.6
14.1%
1,556.7
1
Extended CEE: Albania incl. Kosovo, Baltics, Bosnia-Herzegovina, Bulgaria, Croatia, Hungary,
Moldova, North Macedonia, Romania, Serbia, Slovakia, Ukraine
2
Special Markets: Germany, Georgia, Liechtenstein, Türkiye
3
Group functions: VIG Holding, VIG Re, Wiener Re, VIG Fund, corporate IT service providers, asset
management and pension funds as well as intermediate holding companies
RESULT BEFORE TAXES
2022
2021
∆ in %
∆ absolute
in EUR millions
Austria 249.4
234.7
6.3%
14.8
Czech Republic 201.9
186.9
8.0%
15.0
Poland 51.7
69.9
-25.9%
-18.1
Extended CEE
1
112.7
188.6
-40.2%
-75.9
Special Markets
2
49.4
37.9
30.5%
11.5
Group Functions
3
-101.2
-210.8
52.0%
109.6
Consolidation -1.5
4.3
n/a
-5.8
Total 562.4
511.3
10.0%
51.1
1
Extended CEE: Albania incl. Kosovo, Baltics, Bosnia-Herzegovina, Bulgaria, Croatia, Hungary,
Moldova, North Macedonia, Romania, Serbia, Slovakia, Ukraine
2
Special Markets: Germany, Georgia, Liechtenstein, Türkiye
3
Group functions: VIG Holding, VIG Re, Wiener Re, VIG Fund, corporate IT service providers, asset
management and pension funds as well as intermediate holding companies
12
Annual Financial Report 2022
AUSTRIA
AUSTRIAN INSURANCE MARKET
The top 5 insurance groups in the country generated around
71% of the premium volume in Austria in the 1
st
to 3
rd
quar-
ters of 2022. The two largest insurance groups generated
around 44%.
MARKET GROWTH IN THE 1
ST
TO 3
RD
QUARTERS OF 2022
COMPARED TO THE PREVIOUS YEAR
After 2021, which was characterised by the impacts of the
COVID-19 pandemic, the Austrian insurance sector had a
positive start to the new year. In total, EUR 15.0 billion was
generated in the 1
st
to the 3
rd
quarters of 2022. Compared
with the same period in the previous year, this corresponds
to an increase of around 5.0%, which is due to the positive
performance of all insurance segments.
In the 1
st
to 3
rd
quarters of 2022, the property and casualty
insurance recorded an increase of 6.9% compared with the
same period in the previous year. The motor insurance
recorded an increase of 4.7%. Of this, motor own damage
insurance rose by 6.1%, primarily due to higher prices. On
the other hand, motor third party liability insurance benefited
from the rising number of newly insured vehicles and rose
by 3.3% year-on-year. Premiums for non-motor lines of
business rose 8.0%, with travel insurance recording a sharp
increase of 97.5%.
In life insurance, a premium increase of 1.3% was gen-
erated in the 1
st
to 3
rd
quarters of 2022. While income from
regular premium life insurance came to -0.1%, remaining
stable or falling slightly year-on-year, single premium life in-
surance increased by 10.2%. With a year-on-year increase
of 19.5%, unit- and index-linked life insurance in particular
recorded increased levels of interest. Nursing care insurance
also saw double-digit growth, with a 10.4% increase com-
pared with the same period in the previous year. Premiums in
health insurance recorded an equally positive year-on-year in-
crease of 4.5%.
According to calculations based on data from the Inter-
national Monetary Fund (IMF) and Austrian Insurance Asso-
ciation (VVO), the average per capita expenditure for insur-
ance in Austria was EUR 2,072.4 in 2021. Of this, EUR 1,465
was spent in the non-life insurance area and EUR 607 in the
life insurance area.
MARKET SHARES OF THE MAJOR INSURANCE GROUPS
VIG COMPANIES IN AUSTRIA
VIG Insurance Group is represented by the two insurance
companies Wiener Städtische and Donau Versicherung in
Austria. s Versicherung, which was merged with Wiener
Städtische in 2018, continues to exist as a brand for banc-
assurance customers. Wiener Städtische also operates via
branches in Italy and Slovenia. VIG Holding operates out
of Austria as a reinsurer of the Group and an insurer in the
+4.5%
+6.9%
Source: Austrian Insurance Association
EUR 15.0 bn
EUR 9.0 bn
+1.3%
9M 2022 figures
+5.0%
Life
Property and
casualty
Total Health
EUR 1.9 bn
EUR 4.1 bn
Source: Austrian Insurance Association; as of 9M 2022
23.1%
VIG ranked 1
st
20.6%
Ranked 2
nd
15.3%
Ranked 3
rd
41.0%
Other participants
Per cent of total premium volume
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
13
cross-border corporate business. Since 2019, it has also
been active in the traditional industrial insurance business
through branch offices in the Northern European countries
of Sweden, Norway and Denmark. VIG Holding is assigned
to the segment Group Functions.
With a market share of 23.1% in the 1
st
to 3
rd
quarters of 2022,
the VIG insurance companies represent Austria’s largest in-
surance group. Together they hold first place in the market
in property and casualty and in life insurance, and second
place in health insurance.
FINANCIAL PERFORMANCE INDICATORS IN THE AUSTRIA
REPORTABLE SEGMENT
Premium development
The Austrian VIG insurance companies generated a total of
EUR 4,138.4 million in premiums written in 2022, representing
a year-on-year increase of 2.2% (2021: EUR 4,048.4 million).
The increase was primarily due to good development in
other property and casualty and the motor lines of business.
Net earned premiums were EUR 3,314.8 million in 2022
(2021: EUR 3,242.5 million). This corresponds to a plus of
2.2%.
PREMIUMS BY LINE OF BUSINESS
Result before taxes
The segment Austria generated a result before taxes of
EUR 249.4 million in 2022 (2021: EUR 234.7 million). This
corresponds to an increase of 6.3%, which is due to an im-
provement in the combined ratio and a better technical re-
sult in the life line of business.
Combined ratio
The combined ratio could be further improved to 92.4% in
2022 primarily due to an improved cost ratio (2021: 92.8%).
CZECH REPUBLIC
CZECH INSURANCE MARKET
In the 1
st
to 3
rd
quarters of 2022 the insurance market in the
Czech Republic was dominated by the top 5 insurance groups,
which together generate around 85% of total premium volume.
MARKET GROWTH IN THE 1
ST
TO 3
RD
QUARTERS OF 2022
COMPARED TO THE PREVIOUS YEAR
Based on the calculation method of the Czech Insurance
Association ČAP, the Czech insurance market recorded a
premium volume of CZK 119.2 billion in the 1
st
to 3
rd
quar-
ters of 2022, representing a year-on-year increase of 7.5%.
With the exception of single premium life insurance, all ma-
jor lines of business recorded positive developments. In par-
ticular, the non-motor lines of business in non-life insurance
contributed to this (+13.6%). The double-digit increase is
partly due to the lower reference values from the same pe-
riod in the previous year, which in turn is due to the impacts
of the COVID-19 pandemic.
Health 11.6%
(11.6%)
Other property and casualty
38.5% (37.1%)
Life – single premium
4.4% (5.6%)
MTPL
8.2% (8.1%)
Values for 2021 in parentheses
Motor own damage
8.1% (7.8%)
Life – regular premium
29.2% (29.8%)
Non-life
Source: Czech Insurance Association
+7.5%
+9.6%
+3.2%
Total Life
9M 2022 figures
CZK 119.2 bn
CZK 37.4 bn
CZK 81.8 bn
14
Annual Financial Report 2022
In the motor line of business, motor own damage gene
rated
a remarkable increase of 9.1% year-on-year. Motor third
party liability insurance also developed positively, with
growth of 3.8%. Both lines of business were positively
influenced by rising prices. In part, they also benefited from
the growing number of newly insured vehicles (+1.3% in
motor third party liability; +4% in motor own damage). In the
non-motor insurance line of business, the 1
st
to 3
rd
quarters
of 2022 saw a double-digit increase of 13.6%, which was
primarily influenced by rising prices and intense acquisition
in the area of industrial insurance.
In life insurance, premium volume rose by 3.2%. This in-
crease was mainly due to good performance in regular pre-
mium life insurance, which recorded 3.7% growth in the
1
st
to 3
rd
quarters of 2022. However, a significant fall of 18.5%
was recorded in single premium life insurance.
According to calculations based on data from the Inter-
national Monetary Fund (IMF) and Czech Insurance Asso-
ciation, the average per capita expenditure for insurance in
the Czech Republic was EUR 635 in 2021. EUR 418 of this
amount was for non-life insurance and EUR 217 for life in-
surance.
MARKET SHARES OF THE MAJOR INSURANCE GROUPS
VIG COMPANIES IN THE CZECH REPUBLIC
VIG Insurance Group is represented by two companies,
Kooperativa and ČPP, in the Czech Republic. With a market
share of 32.1% it is the largest insurance group in the Czech
Republic in the 1
st
to 3
rd
quarters of 2022. It holds first place
in the market for both life and non-life insurance.
The Group reinsurance company VIG Re, which has its head-
quarters in Prague, is assigned to the segment Group Func-
tions.
FINANCIAL PERFORMANCE INDICATORS IN THE CZECH
R
EPUBLIC REPORTABLE SEGMENT
Premium development
The VIG insurance companies in the segment Czech Republic
wrote EUR 2,122.1 million in premiums in 2022, representing
a large increase of 13.8% (2021: EUR 1,864.9 million). This
was primarily due to good performance in the motor lines
of business as well as in the other property and casualty
and regular premium life insurance lines of business. Net
earned premiums were EUR 1,575.1 million in 2022 (2021:
EUR 1,399.8 million). This represented an increase of 12.5%
compared to the previous year.
PREMIUMS BY LINE OF BUSINESS
Source: Czech Insurance Association; as of 9M 2022
11.1%
Ranked 3
rd
31.8%
Other participants
Per cent of total premium volume
32.1%
VIG ranked 1
st
25.0%
Ranked 2
nd
Health
1.2% (1.1%)
Other property and casualty
29.8% (28.2%)
Life – single premium
1.3% (1.6%)
MTPL
18.3% (18.7%)
Values for 2021 in parentheses
Motor own damage
15.4% (15.0%)
Life – regular premium
34.0% (35.4%)
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
15
Result before taxes
The result before taxes in the segment Czech Republic rose
by 8.0% to EUR 201.9 million in 2022 (2021: EUR 186.9 mil-
lion). This increase was primarily due to a better technical
result from risk insurance.
Combined ratio
The combined ratio continued to be at a very good level of
91.5% in 2022 (2021: 90.1%). The slight increase comes
from the motor lines of business, which saw the claims ratio
normalise to pre-COVID levels.
POLAND
POLISH INSURANCE MARKET
The five largest insurance groups in the country generated
around 77% of the total premium volume in the first three
quarters of 2022. The three largest insurance groups con-
tributed around 60%.
MARKET GROWTH IN THE 1
ST
TO 3
RD
QUARTERS OF 2022
COMPARED TO THE PREVIOUS YEAR
The Polish insurance market generated PLN 52.7 billion in
the 1
st
to 3
rd
quarters of 2022, representing an increase of
3.6% compared with the same period from the previous year.
The increase is predominantly due to the good performance
of non-life insurance, which grew 7.3% year-on-year. Life
insurance, on the other hand, recorded a decrease of 4.2%
in the 1
st
to 3
rd
quarters of 2022.
Premium volume in the motor lines of business saw gains in
the first nine months of 2022, primarily due to the good per-
formance in motor own damage insurance, which recorded
growth of 13.7% compared with the same period from the
previous year. Recording +1.0%, motor third party liability
insurance remained stable year-on-year. This is due to a
slight decrease in the average premium, which in turn is due
to the ongoing pressure from competition on the market.
The non-motor lines of business grew 8.9%, which is due in
particular to the good performance in property and casualty
insurance. The health insurance products in non-life insur-
ance generated a moderate year-on-year increase of 1.3%.
Life insurance fell by 4.2% in the 1
st
to 3
rd
quarters of 2022.
This was due to negative performance in single premium
life insurance, which recorded a decrease of 36.3% in the
1
st
to 3
rd
quarters of 2022. Despite recording a year-on-year
increase of 3.7%, regular premium life insurance was un-
able to offset this decrease.
According to calculations based on data from the Inter-
national Monetary Fund (IMF) and Polish financial market
authority, the average per capita expenditure for insurance
in Poland was EUR 401 in 2021. Out of this, EUR 273 was
spent on non-life insurance and EUR 128 on life insurance.
MARKET SHARES OF THE MAJOR INSURANCE GROUPS
Non-life
Source: Financial Market Authority Poland
+7.3%
-4.2%
Total Life
9M 2022 figures
PLN 52.7 bn
PLN 15.9 bn
PLN 36.9 bn
+3.6%
Source: Financial Market Authority Poland; as of 9M 2022
8.9%
VIG ranked 4th
13.7%
Ranked 2
nd
34.5%
Ranked 1
st
31.2%
Other participants
Per cent of total premium volume
11.7%
Ranked 3
rd
16
Annual Financial Report 2022
VIG COMPANIES IN POLAND
VIG Insurance Group is represented by Compensa Life and
Non-Life, InterRisk, Vienna Life and Wiener TU in the Polish
market. InterRisk also invested in the mutual insurance as-
sociation TUW “TUW” in 2019. In November 2020, VIG In-
surance Group signed a share purchase agreement with the
Dutch company Aegon N.V. to acquire its companies in Hun-
gary, Poland, Romania and Türkiye. In Hungary and Türkiye,
closing was successfully completed in 2022. For the
acquisition of the remaining Eastern European business of
Aegon with companies in Poland and Romania, only the
approval from Romania is pending for a closing.
VIG Insurance Group held fourth place in the overall market
with a market share of 8.9% in the first nine months of 2022.
In the non-life sector it is positioned as fourth in the ranking
of top insurers, and in the life sector it is positioned as fifth.
FINANCIAL PERFORMANCE INDICATORS IN THE POLAND
REPORTABLE SEGMENT
PREMIUMS BY LINE OF BUSINESS
Premium development
The segment Poland recorded total premiums written of
EUR 1,352.9 million in 2022, representing an increase of 5.7%
compared to the previous year (2021: EUR 1,279.8 million).
This increase was mainly due to growth in the other property
and casualty and health insurance lines of business. Net
earned premiums were EUR 1,018.4 million in 2022, 3.6%
higher than in the previous year (2021: EUR 983.0 million).
Result before taxes
The result before taxes was EUR 51.7 million in 2022 (2021:
EUR 69.9 million). This corresponds to a decrease of 25.9%,
which is primarily due to the increase in the combined ratio
and the decrease in the financial result.
The business operating result in the segment Poland was
EUR 51.9 million in 2022 (2021: EUR 70.5 million).
Combined ratio
In 2022, the combined ratio was 96.1% due to both increased
commissions in direct business and lower commissions
from internal Group reinsurance (2021: 93.2%).
EXTENDED CEE
The reportable segment Extended CEE includes the coun-
tries of Albania including Kosovo, the Baltic states, Bosnia-
Herzegovina, Bulgaria, Croatia, Hungary, Moldova, North
Macedonia, Romania, Serbia, Slovakia and Ukraine. These
countries generated 29.8% of Group premiums in 2022.
Albania including Kosovo
VIG Insurance Group operates in the Albanian insurance
market with Sigma Interalbanian and Intersig. With a market
share of 20.0% it ranked second in the first nine months of
2022. Sigma Interalbanian is also represented by a branch
in Kosovo, where it held sixth place in the market with a
market share of 9.1% in the 1
st
to 3
rd
quarters of 2022.
Baltic states
VIG insurance companies are represented in all three Baltic
states. Compensa Life has its headquarters in Estonia and is
also represented by branches in Latvia and Lithuania. BTA
Baltic operates in Latvia and has branches in Estonia and
Lithuania. The company Compensa Non-Life also operates
in Lithuania. It maintains branches in Latvia and Estonia.
Their market share of 26.4% made the VIG insurance com-
panies the market leader in the Baltic states in the 1
st
to 3
rd
quarters of 2022. They also hold first place in the non-life
sector and second place for life insurance.
Health
2.9% (2.3%)
Other property and casualty
36.9% (34.8%)
Life – single premium
10.5% (10.6%)
MTPL
22.7% (24.3%)
Values for 2021 in parentheses
Motor own damage
14.8% (15.0%)
Life – regular premium
12.2% (13.0%)
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
17
Bosnia-Herzegovina
VIG Insurance Group is represented by Wiener Osiguranje,
which has its headquarters in Banja Luka in the Serbian
Republika Srpska in Bosnia-Herzegovina, and by Vienna
Osiguranje, which is headquartered in Sarajevo. The market
share was 8.8% based on data for the 1
st
to 3
rd
quarters of
2022, which puts the VIG insurance companies in fourth
place in the market.
Bulgaria
VIG is represented in the Bulgarian insurance market by the
insurance companies Bulstrad Life and Bulstrad Non-Life.
Together they had a market share of 14.0% in the 1
st
to 3
rd
quarters of 2022. That makes the VIG insurance companies
the leading insurance group in Bulgaria. In the non-life
sector they are in third place in the market; in the life sector
they are in second place. The PAC Doverie pension fund
also belongs to VIG Insurance Group.
Croatia
The VIG insurance company Wiener Osiguranje operates in
Croatia. Its market share of 11.6% in the 1
st
to 3
rd
quarters
of 2022 put it in third place in the Croatian insurance market.
Moldova
The VIG insurance company Donaris operates in Moldova.
It had a market share of 12.7% in the first nine months of
2022, putting it in fifth place in the market. It also holds
fourth place in the non-life sector.
North Macedonia
The VIG insurance companies Makedonija Osiguruvanje,
Winner Non-Life and Winner Life together held a market
share of 18.3% in the 1
st
to 3
rd
quarters of 2022. That makes
the VIG companies the leading insurance group in North
Macedonia.
Romania
Three VIG insurance companies, the non-life insurer Omniasig,
composite insurer Asirom and life insurer BCR Life, operate
in the Romanian insurance market. Their market share of
23.4% makes the VIG insurance companies the market
leader in Romania. In the 1
st
to 3
rd
quarters of 2022, they
also held first place in non-life insurance and second place
in life insurance.
In November 2020, VIG Insurance Group signed a share
purchase agreement with the Dutch company Aegon N.V.
to acquire its companies in Hungary, Poland, Romania and
Türkiye. In Hungary and Türkiye, closing was successfully
completed in 2022. For the acquisition of the remaining
Eastern European business of Aegon with companies in
Poland and Romania, only the approval from Romania is
pending for a closing.
Serbia
VIG operates in Serbia through Wiener Städtische Osiguranje.
It held fourth place in the market with a market share of 11.3%
in the 1
st
to 3
rd
quarters of 2022. It is in fourth place in the
non-life sector and second place in the life sector.
Slovakia
Two VIG insurance companies, Kooperativa and Komunálna,
are represented in the Slovakian insurance market. Their
market share of 28.0% put them in first place in Slovakia in
the 1
st
to 3
rd
quarters of 2022. They hold second place for
non-life insurance and first place for life insurance.
The Slovakian pension company 365.life, which was acqui-
red by Kooperativa at the end of 2022, is assigned to the
segment Group Functions.
Ukraine
The VIG non-life insurance companies Kniazha and USG
and life insurance company Kniazha Life are operating in
Ukraine. The VIG insurance companies held second place
in the overall market with a market share of 11.5% in the 1
st
to 3
rd
quarters of 2022. They are in second place in the non-
life sector.
Hungary
VIG operates in Hungary through UNION Biztosító and the
Aegon insurance company acquired in 2022, which in future
will be represented on the market under the brand Alfa
Biztosító. According to data published by the Hungarian as-
sociation MABISZ, VIG – including Aegon – holds first place
in the market. Data from the Hungarian National Bank
shows that the market share in the 1
st
to 3
rd
quarters of
2022 was 19.1%. In life and non-life insurance, VIG holds
second place in the market.
18
Annual Financial Report 2022
FINANCIAL PERFORMANCE INDICATORS IN THE EXTENDED
CEE REPORTABLE SEGMENT
Premium development
The VIG insurance companies in the segment Extended CEE
wrote EUR 3,593.2 million in premiums in 2022, representing
a year-on-year increase of 24.5% (2021: EUR 2,886.7 million).
One of the reasons for this growth is the first-time consoli-
dation of the Aegon insurance company acquired in Hun-
gary in 2022. The motor lines of business in Romania and
Hungary and the other property and casualty insurance line
of business in the Baltic states, Romania and Hungary per-
formed well. Net earned premiums were EUR 2,742.7 million
in 2022 (2021: EUR 2,200.7 million), an increase of 24.6%
compared to the previous year.
PREMIUMS BY LINE OF BUSINESS
Result before taxes
A result before taxes of EUR 112.7 million was recorded in
the segment Extended CEE in 2022 (2021: EUR 188.6
million). This is a decrease of 40.2% compared with the
previous year. In the result before taxes, impairments of
goodwill of EUR 26.2 million for the CGU groups Albania
including Kosovo and North Macedonia were recognised.
Impairments of other intangible assets totalling EUR 37.6
million were also included. These primarily include insur-
ance portfolios and customer bases of the Hungarian
Aegon company acquired in 2022 due to an additional
insurance tax introduced after the transaction was closed.
An increase in the combined ratio was also recorded in
Hungary, Ukraine and Croatia.
Adjusted for impairments of goodwill and other intangible
assets, the business operating result in the segment
Extended CEE in 2022 amounted to EUR 176.5 million
(2021: EUR 188.6 million).
Combined ratio
In 2022, an increase in the cost ratio in Hungary, primarily
due to the introduction of the additional insurance tax, and
the limited product portfolio due to the war in Ukraine led to
a combined ratio of 95.3% in the segment Extended CEE
(2021: 92.3%).
SPECIAL MARKETS
The segment Special Markets includes the countries of Ger-
many, Georgia, Liechtenstein and Türkiye.
Germany
The VIG insurance companies InterRisk Non-Life and
InterRisk Life operate in Germany. The InterRisk companies
distribute exclusively through around 10,000 independent
sales partners. 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
dependants. The VIG companies continue to be successful
in the German market as profitable niche providers.
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 by two companies in
Georgia, GPIH and IRAO. With a market share of 25.0%,
the companies became the leading insurance group in
Georgia in the 1
st
to 3
rd
quarters of 2022.
Liechtenstein
The VIG insurance company Vienna-Life operates in Liech-
tenstein. Vienna-Life almost exclusively offers unit-linked
and index-linked life insurance and held fourteenth place in
the market in Liechtenstein in 2021.
Health
5.8% (5.6%)
Other property and casualty
23.1% (21.5%)
Life – single premium
11.8% (14.7%)
MTPL
22.5% (20.3%)
Values for 2021 in parentheses
Motor own damage
18.8% (19.6%)
Life – regular premium
18.0% (18.3%)
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
19
Türkiye
VIG operates in Türkiye through the non-life insurer Ray Sigorta
and the life insurance company Viennalife (formerly Aegon),
which was acquired in 2022. A market share of 3.9% puts
the VIG insurance companies in eighth place in the Turkish
insurance market.
FINANCIAL PERFORMANCE INDICATORS IN THE SPECIAL
MARKETS REPORTABLE SEGMENT
Premium development
The VIG insurance companies in the segment Special Mar-
kets wrote EUR 846.2 million in premiums in 2022 (2021:
EUR 531.7 million), representing an increase of 59.2%
compared with the previous year. This positive premium
development is primarily due to the initial consolidation of
the Turkish company Viennalife (formerly Aegon). The regu-
lar premium life insurance and other property and casualty
insurance lines of business performed particularly well. Net
earned premiums were EUR 501.3 million in 2022 (2021:
EUR 325.9 million), an increase of 53.8% compared with
the previous year.
PREMIUMS BY LINE OF BUSINESS
Result before taxes
The result before taxes in the Special Markets segment rose
30.5% in 2022 to EUR 49.4 million (2021: EUR 37.9 million).
This increase is primarily due to the first-time consolidation
of Viennalife (formerly Aegon) in Türkiye.
Adjusted for impairments of other intangible assets of
EUR 3.6 million, the business operating result in the Special
Markets segment in 2022 amounted to EUR 53.0 million
(2021: EUR 37.9 million).
Combined ratio
The combined ratio improved to 93.0% in 2022 primarily as
a result of a lower cost ratio in Germany and a lower claims
ratio in Türkiye (2021: 94.4%).
GROUP FUNCTIONS
The Group Functions reportable segment includes VIG Hol-
ding (including the branches in Northern Europe), VIG Re
(including the branches in Germany and France), Wiener Re,
the VIG Fund, corporate IT service providers, Asset Man-
agement, Pension Funds and intermediate holding com-
panies. VIG Holding primarily focuses on managerial tasks
for the Group. It also operates as the reinsurer for the Group
and in the international corporate business.
The reinsurance company VIG Re was formed in Prague in
2008 and is a successful reinsurance provider for both VIG
insurance companies and external partners. It has estab-
lished itself as an important company in the CEE region and
follows a conservative underwriting and investment strategy.
Standard & Poor’s reaffirmed VIG Re’s A+ rating with stable
outlook at the end of 2022.
FINANCIAL PERFORMANCE INDICATORS IN THE GROUP
FUNCTIONS REPORTABLE SEGMENT
Premium development
Premiums written in the segment Group Functions rose
16.9% in 2022 to EUR 2,297.8 million (2021: EUR 1,965.0
million). In addition to an increase in premiums from the entry
into new business areas in active reinsurance generated by
the insurance company VIG Re, an increase in corporate
and large customer business and internal Group reinsur-
ance was also recorded as a result of the increased busi-
ness volume in VIG Holding.
Result before taxes
A loss of EUR 101.2 million was recorded in the segment
Group Functions in 2022 (2021: loss of EUR 210.8 million).
Health
5.8% (6.4%)
Other property and casualty
39.6% (50.9%)
Life – single premium
9.9% (9.6%)
MTPL
10.6% (7.5%)
Values for 2021 in parentheses
Motor own damage
10.5% (8.9%)
Life – regular premium
23.6% (16.7%)
20
Annual Financial Report 2022
Various provisions, including for strategic and regu
latory
projects and digitalisation initiatives, had a negative effect
on the previous year.
BUSINESS DEVELOPMENT BY BALANCE SHEET UNIT
Further information on business development by balance
sheet units is provided in the additional disclosures in ac-
cordance with the Austrian Insurance Supervision Act (VAG)
in the notes to the consolidated financial statements start-
ing on page 152.
Other mandatory disclosures
RESEARCH AND DEVELOPMENT
Although VIG companies do not perform any research a
c-
tivities as defined in § 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 and Play
and VENPACE, a start-up initiative (investment and corporate
building) that is located in Germany and 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
supports VIG in identifying and researching innovations at an
early stage in order to use these in the 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. The VIG Group also indirectly
promotes research activities through its participations in
ISTCube to increase basic research in Austria and APEIRON
and invIOS to support research into biotech and the fight
against cancer and respiratory illnesses.
HOLDINGS, PURCHASE AND SALE OF OWN SHARES
Information on § 243 (3)(3) UGB is available in Note
8. Con-
solidated shareholders’ equity starting on page 112 of the
notes to the consolidated financial statements.
INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM
I
N THE ACCOUNTING PROCESS
Preparation of the consolidated financial statements includes
all activities required for presentation and disclosure of the
net assets, financial position and results of operations of the
Group in accordance with the provisions of the law and the
IFRS. The consolidated financial statements consist of the
balance sheet, income statement, statement of compre-
hensive income, shareholders equity statement, cash flow
statement, segment report and the notes to the con-
solidated financial statements, which disclose significant
accounting policies and explanatory notes. The financial
statement process includes the aggregation of all data from
accounting and upstream processes for the annual financial
statements.
The internal control system is implemented in the Group
accounting process in accordance with the five elementary
components of the COSO (Committee of Sponsoring Orga-
nisations of the Treadway Commission) framework model
for internal control.
Control environment
The organisational structure consists of the local accounting
departments of the individual companies and the Group
accounting department at the VIG Holding headquarters in
Vienna. The accounting departments of the VIG companies
prepare both local GAAP and IFRS financial statements,
which are then provided to the Group accounting department.
The IFRS financial statements are prepared in accordance
with uniform Group accounting policies. The Group fully
applies the rules of IFRS 4 with respect to the valuation of
insurance policies. According to these rules, the values rec-
ognised under applicable national law are carried over to
the IFRS consolidated financial statements.
Standardised software is used to prepare the consolidated
financial statements. VIG companies mainly use this software
to report their data, most of which is imported into the
system as an upload or directly entered on site. The Group
accounting department consolidates the data and prepares
the consolidated financial statements.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
21
Risk assessment
The annual financial statement process has been docu-
mented in order to identify risks in the accounting process
and eliminate them as far as possible. The documentation
covers the entire process all the way from data capture by
the employees of VIG companies and automatic and manu-
al controls and analyses during the consolidation process,
to publication of the final annual report.
Control measures
IFRS accounting policies that apply across the Group were
set down in a Group accounting manual (IFRS application)
that is mandatory for all companies included in the consoli-
dated financial statements. The goal is to ensure uniform im-
plementation of the IFRS across the Group. This manual is
reviewed every year and updated or amended when neces-
sary, and is sent to the responsible people in the local re-
porting departments together with additional information on
Group-wide reporting requirements each time before the fi-
nancial statements are prepared. In addition, we notify the
entire Group of material developments to and amended re-
quirements in the Group financial reporting process. The sub-
sidiaries are responsible in the control system for compliance
with the Group-wide accounting policies and for proper and
timely performance of their accounting-related processes.
The Finance department of VIG Holding performs both
automatic (using validations) and manual checks (perfor-
mance analyses and plausibility checks) of the reviewed
financial statement data. Additional checks in the form of
control calculations and reconciliation of intragroup trans-
actions – in particular reinsurance and financing balances –
are performed to identify and, if necessary, correct or elimi-
nate any differences.
In addition, an earnings reconciliation statement is prepared,
the accuracy of individual parts of the consolidated financial
statements is checked, and a plausibility check is per-
formed for the consolidated financial statements as a whole
to ensure that the presentation is complete and correct.
The accounting employees also work closely with the
Planning and Controlling department (e.g. variance analyses),
primarily with respect to performance analyses, when the
financial statements are prepared. The data are also regularly
provided to the Managing Board for review and checking.
In order to ensure that the annual report is completed cor-
rectly and on time by the publication deadline, strict dead-
lines are set for the quarterly and annual financial state-
ments and the VIG companies are informed of these dead-
lines at the end of the 3
rd
quarter at the latest for the coming
financial year. In this way, the department preparing the
consolidated financial statements ensures in advance that
the VIG companies align their processes with the deadlines
and can therefore send their data on time.
Information and communication
The intensive collaboration with other areas of the Company,
in particular Controlling, generates a lively exchange of infor-
mation and communications.
In addition to the annual report at the end of each financial
year, a half-year report was published in accordance with
IAS 34 and statutory provisions.
The Investor Relations department is responsible for reporting
to VIG Holding shareholders. This takes place both in per-
sonal meetings and via the Company website. Share-
holders and other interested parties are provided with ac-
cess to annual and interim reports, and to regularly updated
information on key figures, share prices, the financial calen-
dar, ad hoc news and other relevant topics.
Monitoring
The Finance department is responsible for preparing the
Group annual report. Quarterly reports are provided to the
Managing Board and Supervisory Board to ensure regular
monitoring of the internal control system. Risks are continu-
ously monitored by internal cross-departmental Group con-
trols (e.g. Finance department – Planning and Controlling).
The Internal Audit department also performs quality assur-
ance. It performs independent, objective audit procedures
to examine the structure and effectiveness of internal con-
trol systems and the value and optimisation potential of op-
erational processes. The Internal Audit department helps
the organisation achieve its objectives by systematically
22
Annual Financial Report 2022
evaluating the effectiveness of risk management, the
control
system and the governance process, including all relevant
key functions within the Company, and providing appro-
priate recommendations for improvement.
Group-wide guidelines exist in order to standardise the han-
dling of significant risks throughout the Group, and also
provide a tool for risk monitoring. Local management is re-
sponsible for implementing these guidelines in the individual
VIG companies.
The auditor takes the internal control system into account
during the annual audit of the financial statement to the
extent that it is relevant to the preparation of the consoli-
dated financial statements. The auditor also assesses the
effectiveness of the risk management system in accord-
ance with Rule 83 of the Austrian Code of Corporate
Governance.
CAPITAL, SHARE, VOTING AND CONTROL RIGHTS AND
A
SSOCIATED AGREEMENTS
The Company has share capital of 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 since the previous financial year.
Further information on the anticipatory resolutions and au-
thorisations of the Managing Board in general meetings in
accordance with § 267 (3a) in conjunction with § 243a (1)
UGB is provided in Note 8. Consolidated shareholders’
equity starting on page 112 of the notes to the consolidated
financial statements.
CONSOLIDATED NON-FINANCIAL REPORT
VIG Holding is publishing a separate consolidated no
n-
financial report for financial year 2022 in accordance with
§ 267a of the Austrian Commercial Code (Unternehmens-
gesetzbuch – UGB). It is available in printed form and
online at www.vig.com/sustainability-reports on the web-
site of the VIG Insurance Group.
CORPORATE GOVERNANCE
VIG Holding is committed to application and complian
ce
with the January 2023 version of the Austrian Code of Cor-
porate Governance and publishes a consolidated corporate
governance report on the website at www.vig.com under
“Investor Relations”.
OUTSOURCING DISCLOSURES
The outsourcing disclosures required under § 156 (1)
(1) in
conjunction with § 109 VAG are discussed in more detail
below.
VIG Holding
For VIG Holding, it was decided to outsource IT services to
Group-internal and external IT service providers. Out-
sourcing agreements that had been approved by the
supervisory authority existed in 2022 with IBM Austria
(Internationale Büromaschinen Gesellschaft m.b.H.) and the
internal Group IT system provider twinformatics GmbH,
both headquartered in Austria. The outsourcing agreement
with IBM was terminated as a result of the assumption of all
related services by twinformatics with effect from 28
February 2023. twinformatics GmbH has also assumed full
responsibility for all IT services (with the exception of those
listed in the following paragraph) for the Austrian VIG
insurance companies and concludes any sub-outsourcing
required for this purpose while observing statutory and
regulatory requirements and after consulting with the VIG
insurance companies.
From 1 March 2023, IT services in the VIG Group will also
be provided by VIG IT-Digital Solutions GmbH (“VIG IT-DS”).
VIG IT-DS was founded by VIG Holding in order to further
reinforce the alignment of IT services to be provided Group-
wide and to have these services provided by a company
that focuses on these services. Meanwhile, an outsourcing
agreement approved by the Austrian Financial Market
Authority (FMA) was concluded with VIG IT-DS. This agree-
ment sets out the ultimate responsibility of VIG IT-DS (with
twinformatics as a key sub-service provider) for all VIG
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
23
solutions (SAP NewGL, IFRS 9/17, ReadSoft and some
smaller supporting applications). In addition to these out-
sourcing agreements, VIG Holding has not outsourced any
critical or important functions or business activities.
VIG Group
Throughout the insurance companies of VIG Group,
outsourcing took place in the following areas in particular:
• IT (in particular the operation and maintenance of
operating modules, computing centre operation,
application development services, data storage)
• Claims handling
The four governance functions were individually outsourced
by the operating insurance companies of the VIG Insurance
Group, in particular the internal audit and actuarial functions
and related activities, and in few cases the risk manage-
ment and compliance functions.
While governance functions in VIG Insurance Group were
predominantly outsourced to other Group companies, criti-
cal or important activities in the IT and claims handling areas
were outsourced both inside and outside the Group.
The notification of local supervisory authorities about the
outsourcing of critical or important functions or activities or
the approval of such outsourcing by these authorities was
done by the companies concerned in accordance with ap-
plicable national legal requirements.
Expected development and risks of the Group
SIGNIFICANT RISKS AND UNCERTAINTIES
The risk management system is firmly anchored in the
man-
agement culture of the Company and is based on a clearly
defined, conservative risk policy, extensive risk expertise, a
developed set of risk management tools and risk-based
Managing Board decisions. The detailed risk report for VIG
Insurance Group, including impacts of climate change and
the associated climate risks, is provided in the notes to the
consolidated financial statements starting on page 74.
For information on the financial instruments used for invest-
ments, please see the notes to the consolidated financial
s
tatements (Principles of significant accounting policies)
and the risk report (starting on page 74).
EXPECTED DEVELOPMENT – OUTLOOK FOR 2023
ECONOMIC OUTLOOK
Although pricing is losing momentum, inflation rates
should
remain at a high level in 2023. State subsidies and increas-
ing wages may have some potential of second-round
effects. In particular, inflation will likely continue to be defined
by events on the supply side. The Russian attack on Ukraine
contributed enormously to rising energy prices. The accom-
panying acceleration of an energy transition towards renew-
able energies, which was already planned, should hold en-
ergy prices at a high level into the future. Accordingly, the
central banks’ policies will continue to be correspondingly
restrictive or will become more restrictive, and will provide a
stable basis for the expectation of increased returns.
China is expected to remain a relevant and decisive factor.
The U-turn in its COVID-19 policy should continue to pose a
risk to supply chains for as long as infection rates remain high.
As a result, there is no big difference compared with the pre-
vious zero-COVID strategy – at least not in the short term.
That said, the recovery of China’s domestic demand in par-
ticular represents a key criterion for global development.
In this environment, a considerable improvement in consum-
er sentiment and therefore a recovery of private demand can
only be expected with rather high levels of uncertainty. In all,
2023 should be the culmination of all adverse impacts. The
most likely scenario is that there will be weak growth at the
start of 2023, with an indication that recovery will take place
towards the end of the year.
In this context, the analysts at Erste Group expect almost
complete stagnation of the economy in the eurozone in
the 1
st
quarter of 2023. With pricing losing momentum,
consumption should become more important in the 2
nd
half
24
Annual Financial Report 2022
of the year. Falling employment may cause a certain
risk to
take effect here. As the environment continues to brighten,
investments should increase. With energy and gas prices re-
presenting a considerable cause of uncertainty, Erste Group
expects growth of 0.6% in 2023, accompanied by an average
inflation of 5.6%.
A similar situation is expected in Austria, with the economy
expected to grow by 0.6% in 2023 and inflation to continue
to ease, with an average of 6.0% for 2023 to be reflected in
the budget. Pressure on the employment market as a result
of the pandemic seems, for the most part, to have been
absorbed by short-term work. After high levels of unem-
ployment in previous years, an unemployment rate of 4.6%
is expected for 2023.
The situation is considerably different in the CEE region in that
the central banks of the countries in this region adjusted their
monetary policies to the situation at a much earlier stage –
and in a decidedly spirited manner – and should therefore
already have reached the peak of their cycles of interest rate
increases. Even though inflation rates in the CEE region
have increased further, and have even reached 22% in Hun-
gary, a turning point is still expected. The average level of
inflation for the region is expected to be at 12.1% for 2023.
External factors such as energy prices and supply chains
are also decisive factors in the CEE region and should there-
fore also lead to an easing of inflation rates in the 2
nd
half of
2023. Depending on the commitment of local governments,
considerable financial contributions from the EU could well
support economic development in the region. For example,
Romania and Croatia are currently the leading countries
making use of the economic programmes put in place. Pri-
vate consumption in the CEE region will remain subdued
due to real wage decreases, which has an influence on the
region’s moderate growth outlook of 0.9% for real GDP. In
terms of the unemployment rate, it is currently assumed that
it will rise from 4.8% to 5.1% in 2023.
OUTLOOK FOR VIG INSURANCE GROUP
As market leader in Central and Eastern Europe, VIG
Insur-
ance Group with its roughly 29,000 employees is in an ex-
cellent position to take advantage of the opportunities avail-
able in this region and the long-term growth options they
offer. It is therefore implementing its VIG 25 strategic pro-
gramme, which was developed together with the CEOs of
the VIG insurance companies based on trends and devel-
opments in the insurance business and comprises the
financial years through to 2025. In addition to creating sus-
tainable value and achieving sustainability objectives, one of
the key objectives of the programme is to expand the
leading market position in Central and Eastern Europe, with
the aim of achieving at least a top three position in each
CEE market, with the exception of Slovenia. A major step in
this direction is the successful acquisition of the companies
in Hungary and Türkiye that were formerly part of the Dutch
Aegon Group. This took VIG to number one in the
Hungarian market. For the acquisition of the remaining
Eastern European business of Aegon with companies in
Poland and Romania, only the approval from Romania is
pending for a closing. It is expected to be formally con-
cluded in 2023.
A range of 150 to 200% is specified for the VIG Group sol-
vency ratio without taking into account transitional meas-
ures for underwriting provisions used by some individual
Group companies. The new financial reporting, as set out
by IFRS 9/17, which took effect on 1
st
January 2023 will
lead to the relevant financial KPIs being adjusted. The new
accounting standard will not have any impact on the strat-
egy or business model of VIG. Further information on the
impact of IFRS 9/17 on the consolidated balance sheet and
the consolidated shareholders’ equity can be found in the
notes to the consolidated financial statements starting on
page 35.
In line with the current dividend policy, which provides for a
distribution in the range of 30 to 50% of Group net profits,
the Managing Board recommends to the relevant bodies
that the dividend be increased from EUR 1.25 to EUR 1.30
per share for the financial year 2022. This corresponds to
an increase of 4.0% compared to the previous year and a
dividend payout ratio of 35.7%. The dividend per share is
based on the company’s success and takes into account
the current volatile environment.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
25
The development of the financial year 2023 is difficult to assess
due to a number of uncertainty factors, especially asso-
ciated with the ongoing war in Ukraine and its far-reaching
consequences. The weaker macroeconomic environment
and higher levels of volatility expected on the financial
markets are currently restricting the ability to predict
business trends. In this context, and in view of the transition
to a new financial reporting from 2023, any firm outlook for
2023 pursuant to IFRS 9/17 can only be provided during
the course of the year. Given that VIG has been able to
manage the current challenges in its insurance business
operations very well so far, following 2022 the Group
continues to aim to achieve positive operating performance
in 2023, subject to the factors mentioned above.
Vienna, 20 March 2023
The Managing Board:
Elisabeth Stadler
General Manager (CEO),
Chairwoman of
the Managing Board
H
artwig Löger
Deputy General Manager,
Deputy Chairman of
the Managing Board
Liane Hirner
C
FRO, Member of
the Managing Board
Peter Höfinger
Member of
the Managing Board
Gerhard Lahner
C
OO, Member of
the Managing Board
Gábor Lehel
CIO, Member of
the Managing Board
Harald Riener
Member of
the Managing Board
Peter Thirring
CTO, Member of
the Managing Board
26 Annual Financial Report 2022
Gr
oup management report | Consolidated financial statements | Management report | Annual financial statements | Service information
27
Consolidated
financial
statements
CONSOLIDATED FINANCIAL STATEMENTS IN
ACCORDANCE WITH INTERNATIONAL FINANCIAL
REPORTING STANDARDS (IFRS)
31.12.2022
Reporting period 1.1.2022–31.12.2022
Reporting date for comparative
consolidated balance sheet data 31.12.2021
Reporting period for comparative consolidated
income statement data 1.1.2021–31.12.2021
Currency EUR
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
28
Annual Financial Report 2022
CONSOLIDATED BALANCE SHEET
Assets Notes 31.12.2022
31.12.2021
in EUR '000
Intangible assets 1, A 2,084,745
1,744,16 9
Right-of-Use Assets 178,663
173,348
Investments 2, B 32,340,3 53
34,809,7 90
Property 3,128,97 7
2,850,58 8
Owner-occupied property 483,345
472,303
Investment property 2,645,63 2
2,378,28 5
Shares in at equity consolidated companies 287,960
276,913
Financial assets 28,923,4 16
31,682,2 89
Financial investments for unit- and index-linked life insurance 3, C 7,164,129
8,525,33 1
Reinsurers' share in underwriting provisions 4, D 1,962,62 7
1,564,60 5
Receivables 5, E 2,3 41,675
2,067,18 8
Tax receivables and advance payments out of income tax F 173,781
135,053
Deferred tax assets 6, F 569,889
311,447
Other assets 7, G 399,180
390,893
Cash and cash equivalents 2,058,97 0
2,456,33 3
Total 49,274,0 12
52,178,1 57
Liabilities and shareholdersʾ equity Notes 31.12.2022
31.12.2021
in EUR '000
Shareholders' equity 8 4,434,184
5,597,94 8
Share capital and reserves 4,223,83 8
5,478,21 7
Non-controlling interests 210,346
119,731
Subordinated liabilities 9, K 1, 746,366
1,461,28 6
Underwriting provisions 10, H 31,987,870
32,546,2 27
Underwriting provisions for unit- and index-linked life insurance 11, I 6,902,71 0
8,188,79 3
Non-underwriting provisions 12, J 697,705
890,189
Liabilities excl. Subordinated liabilities 13, K 3,188,37 5
2,900,28 0
Tax liabilities out of income tax F 111,519
243,382
Deferred tax liabilities 6, F 77,418
218,884
Other liabilities 127,865
131,168
Total 49,274,0 12
52,178,1 57
The numbers and letters shown for individual items in the consolidated balance sheet, consolidated income statement,
consolidated statement of comprehensive income and consolidated shareholders’ equity refer, among other things, to
detailed disclosures for those items in the notes to the consolidated financial statements. The numbers refer to the detailed
disclosures in the notes to the consolidated balance sheet starting on page 98. The letters refer to the explanatory text in
the Accounting policies section starting on page 47.
Primary financial statements
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
29
CONSOLIDATED INCOME STATEMENT
Consolidated income statement Notes 2022
2021
in EUR '000
Net earned premiums – retention L 10,910,888
9,705,63 3
Premiums written – retention 11,176,9 67
9,878,59 4
Premiums written – gross 15 1 2,559,242
11,002,5 66
Premiums written – reinsurers´ share -1,382,27 5 -1,123,97 2
Change in unearned premiums – retention -266,0 79 -172,9 61
Change in unearned premiums – gross -36 4,867 -179,621
Change in unearned premiums – reinsurers´ share 9 8,788
6,660
Financial result excl. result from shares in at equity consolidated companies 16 778, 947
607,018
Income from investments 1,359,46 1
1,159,52 0
Expenses for investments and interest expenses -580, 514 -552,502
Result from shares in at equity consolidated companies 17 18,287
24,872
Other income 18 185, 859
165,789
Expenses for claims and insurance benefits – retention 19 -7 ,912,036 -7 ,136,561
Acquisition and administrative expenses 20 -2 ,930,465 -2 ,536,828
Other expenses 18 -421,480 -317,902
Business operating result 630,000
512,021
Impairments of goodwill -26,361 0
Impairments of intangible assets excluding goodwill -41,217 -688
Result before taxes 562,422
511,333
Taxes 21 -98,1 31 -1 23,339
Result for the period 464,291
387,994
thereof attributable to shareholders 465,941
375,730
thereof Non-controlling interests -1,650 12,264
Earnings per share* (in EUR) 22 3.58
2.94
*The calculation of these figures considers the interest expenses for hybrid capital. The undiluted earnings per share equals the diluted earnings per share.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Consolidated statement of comprehensive income Notes 2022
2021
in EUR '000
Result for the period 464,291
387,994
Other comprehensive income (OCI) 8.3 -1,641,85 7 -263,43 4
Items that will not be reclassified to profit and loss in subsequent periods 124,614
28,777
+/- Actuarial gains and losses from provisions for employee benefits 224,560
52,969
+/- Deferred profit participation -56,977 -14,515
+/- Deferred taxes -42 ,969 -9,677
Items that will be reclassified to profit or loss in subsequent periods -1,766 ,471 -292 ,211
+/- Exchange rate changes through equity -29,796 4 6,153
+/- Unrealised gains and losses from financial assets available for sale 2.4 -4, 38 6,7 96 -819, 153
+/- Cash flow hedge reserve 34
-43
+/- Share of other reserves of at equity consolidated companies 2.2 -654 178
+/- Deferred mathematical reserve 673,535
77,247
+/- Deferred profit participation 1,501,10 4
323,279
+/- Deferred taxes 476,102
80,128
Comprehensive income for the period -1,177 ,566 124,560
thereof attributable to shareholders -1,134,16 5 115,433
thereof Non-controlling interests -43,401 9,127
30
Annual Financial Report 2022
CONSOLIDATED SHAREHOLDERS’ EQUITY
Development Share
capital
Capital reserves Retained
earnings
Other reserves
Subtotal*
Non-
controlling
interests
Total
Hybrid
capital
Others
Currency
reserve
Others
Notes 8.1
8.2
8.4, 22
8.3
8.3
in EUR '000
As of 1 January 2021 132,887
0
2,109,00 3
2,484,89 9
-241,1 68 677,117
5,162,73 8
123,028
5,285,76 6
Issuance of hybrid capital 300,000
0
300,000
0
300,000
Changes in scope of conso-
lidation/ownership interests -3,954 0
0
-3,954 3,521
-433
Comprehensive income for the
period 375,730
45,349
-305,6 46 115,433
9,127
124,560
Other comprehensive income
excluding currency changes -305,646 -305,646 -3,941 -309 ,587
Currency translation 45,349
45,349
804
46,153
Result for the period 375,730
375,730
12,264
387,994
Dividend payment -96,000 -96,000 -15,945 -111,945
As of 31 December 2021 132,887
300,000
2,109,00 3
2,760,67 5
-195,8 19 371,471
5,478,21 7
119,731
5,597,94 8
As of 1 January 2022 132,887
300,000
2,109,00 3
2,760,67 5
-195,8 19 371,471
5,478,21 7
119,731
5,597,94 8
Changes in scope of conso-
lidation/ownership interests 35,000
7,489
4,766
47,255
158,357
205,612
Comprehensive income for the
period
465,941
-18,68 0 -1,581 ,426 -1,1 34,165 -43,40 1 -1,177 ,566
Other comprehensive income
excluding currency changes -1,581,42 6 -1 ,581,426 -30,635 -1,612,06 1
Currency translation -18,680 -18,680 -11,1 16 -29,7 96
Result for the period 465,941
465,941
-1,650 464,2 91
Dividend payment -167,469 -167,469 -24,341 -191,810
As of 31 December 2022 132,887
300,000
2,109,00 3
3,094,14 7
-207,0 10 -1,20 5,189 4,223,83 8
210,346
4,434,18 4
*The above subtotal equals the equity attributable to shareholders and other capital providers of the parent company.
CONSOLIDATED CASH FLOW STATEMENT
Additional information statement of consolidated cash flows 2022
2021
in EUR '000
Received interest
1
757,607
675,985
Received dividends
1
83,289
43,675
Interest paid
2
78,057
70,929
Income taxes paid
1
227,698
153,531
Expected cash flow from reclassified securities 4,684
7,129
Effective interest rate of reclassified securities 3.57%
3.82%
1
Income tax payments, received dividends and received interest are included in the cash flow from operating activities.
2
Interest paid result primarily from liabilities from financing activities.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
31
Change in cash and cash equivalents 2022
2021
in EUR '000
Result for the period 464,291
387,994
Change in underwriting provisions net 55,159
409,464
Change in underwriting receivables and liabilities (incl. deposits on assumed reinsurance business) -47,341 -289,538
Change in other receivables and other liabilities (excl. leases) -138,073 137,117
Change in financial assets recognised at fair value through profit and loss (incl. held for trading) -13,491 -17,361
Gain/loss from disposal of investments -81,422 -75,451
Appreciation/depreciation of investments 2 44,073
88,110
Change in provisions for pensions and similar obligations and provisions for other employee benefits -223,813 -48,881
Change in deferred taxes 75,884
-141,908
Change in intangible assets 189,234
151,123
Change in right-of-use assets and lease receivables and liabilities -9,572 7,523
Change in other balance sheet items 57,646
49,859
Other cash-neutral income and expenses
1
52,40 7
-135,913
Cash flow from operating activities 6 24,982
522,138
Cash inflow from sale of subsidiaries 90,995
0
Payments for the acquisition of subsidiaries -407,433 0
Cash inflow from the sale of available for sale financial assets 4,010,62 7
2,818,46 1
Payments for the acquisition of available for sale financial assets -4,520,15 2 -3,447,02 1
Cash inflow from disposals/repayments of held to maturity financial assets 380,689
141,908
Payments for the acquisition of held to maturity financial assets -219,720 -163,13 9
Cash inflow from the sale of property 8,953
14,892
Payments for the acquisition of property -251,340 -296,069
Cash inflow for the sale of intangible assets 6,222
1,709
Payments for the acquisition of intangible assets -455,488 -139,74 9
Change in financial investments for unit- and index-linked life insurance 684,499
265,528
Change of loans 43,199
425,516
Change in other investments (excl. deposits on assumed reinsurance business) -372,407 -37,576
Cash flow from investing activities -1,001,3 56 -415,540
Proceeds from the issuance of hybrid capital 0
300,000
Cash inflows from subordinated liabilities 500,000
0
Cash outflows from subordinated liabilities -276,313 -68,341
Dividend payments -193,979 -111,94 5
Cash inflow from other financing activities 68,007
523,000
Cash outflow from other financing activities -87,521 -16,460
Cash outflows from lease liabilities -34,244 -28,535
Cash flow from financing activities -24,05 0 597,719
Change in cash and cash equivalents -400,4 24 704,317
Cash and cash equivalents at beginning of period
2
2,456,33 3
1,745,14 7
Change in cash and cash equivalents -400,424 704,317
Changes in scope of consolidation 4,765
7,957
Effects of foreign currency exchange differences on cash and cash equivalents -1,704 -1,088
Cash and cash equivalents at end of period
2
2,058,97 0
2,456,33 3
1
The non-cash income and expenses are primarily exchange rate changes.
2
The amount of cash and cash equivalents at the beginning and the end of period correlates with position cash and cash equivalents on the asset side and consists of cash on hand and overnight deposits.
32
Annual Financial Report 2022
GENERAL INFORMATION AND PRINCIPLES OF SIGNIFICANT ACCO
UNTING POLICIES
GENERAL INFORMATION
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe is a public limited company and one of the leading insurance
groups in Central and Eastern Europe with its registered office located at Schottenring 30, 1010 Vienna, Austria. Wiener
Städtische Versicherungsverein , which also has its registered office in Vienna, is the majority shareholder of VIG Holding. It
is also the ultimate parent company and therefore includes VIG Holding and its subsidiaries in its consolidated financial
statements. The insurance companies and pension funds of VIG Insurance Group offer insurance services in the life, health
and property and casualty areas to roughly 28 million customers in 30 countries.
PRINCIPLES OF SIGNIFICANT ACCOUNTING POLICIES
The consolidated financial statements were prepared
in accordance with the International Financial Reporting Standards
(IFRS) as adopted by the European Union, and the applicable provisions of § 245a (1) of the Austrian Commercial Code
(Unternehmensgesetzbuch – UGB) and Chapter 7 of the Austrian Insurance Supervision Act (Versicherungsaufsichtsgesetz
– VAG).
The significant accounting policies used in the preparation of the consolidated financial statements are presented in the
Accounting policies section starting on page 47. Unless otherwise stated under “Changes in accounting policies”, the
policies described were applied consistently during the reporting periods presented in these financial statements. Preparing
consolidated financial statements in accordance with the IFRS requires the Managing Board to make estimates and as-
sumptions in connection with the accounting policies. Areas with greater scope of discretion, highly complex areas, or areas
involving assumptions and estimates that are of critical importance to the consolidated financial statements are listed on
page 44.
Amounts were commercially rounded to improve readability and, where not indicated otherwise, are shown in thousands
of euro (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 result before
taxes and risk-averse investment.
CHANGES IN ACCOUNTING POLICIES
Unless otherwise indicated, the standards that are a
pplicable for the first time, if relevant, have no or no material effect on
the financial statements.
Standards applicable that are used for the first time in the Group Annual Report
Amendments to IFRS 3 Amendments to References to the Conceptual Framework in IFRS Standards
IAS 37 Onerous contracts: costs of contract performance
all IFRS Annual Improvements to IFRS Standards 2018–2020
IAS 16 Income before qualified use
Notes to the consolidated financial statements
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
33
New standards and changes to current reporting standards Applicable as of
1
Those already adopted by the EU
IFRS 9 Financial Assets 1.1.2018
2
Amendments to IFRS 9 Prepayment features with negative compensation 1.1.2019
2
IFRS 17 Insurance Contracts 1.1.2023
Amendments to IAS 1 and IFRS Practice Statement 2 Disclosure of Accounting Policies 1.1.2023
3
Amendments to IAS 8 Definition of Accounting Estimates 1.1.2023
Amendments to IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction 1.1.2023
Amendments to IFRS 17 Initial Application of IFRS 9 and IFRS 17 – Comparative Information 1.1.2023
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
Amendments to IAS 1 Classification of liabilities as current or non-current 1.1.2024
Amendments to IFRS 16 Lease liabilities for sale and leaseback 1.1.2024
1
Unless otherwise specified, the VIG Insurance Group is not planning early adoption of the provisions listed in the table.
2
First-time application for insurance companies can be delayed to 1 January 2023.
3
Please see Estimates and discretionary decisions section on the topic of materiality.
Unless indicated otherwise, either no material effects from the standards listed in the table are expected, or the amendments
are not relevant.
IFRS 9 Financial Instruments: general information
The International Accounting Standards Board (IASB) issued the final version of IFRS 9 Financial Instruments (IFRS 9) back
in 2014. The standard supersedes the previously applicable IAS 39 "Financial Instruments: recognition and measurement"
(IAS 39), with effect from 1 January 2018. However, companies that apply IFRS 4 Insurance Contracts, can opt to defer
the IFRS 9 effective date (the deferral approach). Accordingly, companies whose activities are predominantly in the insurance
business are permitted to postpone their initial application of IFRS 9 until IFRS 17 Insurance contracts (IFRS 17) comes into
effect. IFRS 17 was adopted into EU law in November 2021, with effective date as of 1 January 2023 as the date of initial
application. In order to prevent potential inconsistencies in measurements between the asset and liabilities side (accounting
mismatches), both standards will be applied for the first time on 1 January 2023, if the deferral approach is used.
A company is predominantly engaged in the insurance business if
• the percentage of the book value of the underwriting liabilities and provisions compared with total liabilities including
underwriting provisions exceeds 90%, or
• this percentage is between 80% and 90% and no other significant activities other than the insurance business are
pursued.
In December 2021, the IASB published further amendments to IFRS 17 “Initial application of IFRS 17 and IFRS 9 –
Comparative information” concerning comparative information. This adjustment was due to the fact that, unlike in the initial
application of IFRS 17, retrospective application is not mandatory when IFRS 9 is first applied. As a result, there might not
be any comparative data for the financial instruments. To counteract this, the classification overlay can be used. However,
only if there is no restatement of a financial instrument with regard to the comparative information due to IFRS 9 in 2022
when IFRS 17 and IFRS 9 are initially applied together at the same time. Using the classification overlay minimises
accounting mismatches that arise as a result of differences in the transition requirements of IFRS 17 and IFRS 9.
34
Annual Financial Report 2022
A company that uses the classification overlay for f
inancial instruments must publish the comparative data as if the
classification and measurement requirements of IFRS 9 applied to that financial instrument. The impairment requirements
are not mandatory applicable if the classification overlay is used. Any difference between the previous carrying amount of a
financial instrument and the amount resulting from the application of the classification overlay must be recognised in equity.
IFRS 9 initial application rules have to be applied as of 1 January 2023 if classification overlay is used for comparative period.
IFRS 9 primarily concerns the classification and measurement of financial instruments. These will be classified in two groups
in the future, at amortised cost (AC) and at fair value.
Classification and measurement of financial assets depends on the business model and contractual cash flows (Solely
Payments of Principal and Interest criterion (SPPI criterion)). Furthermore, incurred losses (Incurred Loss Model) are no
longer the only losses to be taken into account, but rather expected losses (Expected Credit Loss Model (ECL Model)) in
the form of a risk provision. Simplifications exist for trade receivables and lease receivables. New requirements were also
provided for hedge accounting. Their objective is to orient hedge accounting more to the economic risk management of
the entity in the future.
In principle, equity instruments and derivatives are measured at fair value through profit and loss (FVtPL). However, upon
initial recognition of equity instruments, there is an irrevocable option to subsequently measure them through other
comprehensive income (OCI) (FVtOCI option), which also means that they can no longer be recycled through profit or loss.
Consequently, only dividends are to be recognised in the income statement. The FVtOCI option applies for instruments that
are not held for trading. Exercising this option in accordance with IFRS 9 makes it possible to remove or further minimise
the risk of accounting mismatches.
The requirements of IAS 39 for the classification and measurement of financial liabilities have not been amended in IFRS 9,
which is why financial liabilities – with the exclusion of derivatives respectively liabilities held for trading – continue to be
measured at AC. Derivatives respectively liabilities held for trading are to be recognised at FVtPL.
IFRS 17 Insurance Contracts: general information
IFRS 17 was published in the Official Journal of the European Union (EU) on 23 November 2021. As a result, IFRS 17 will
supersede the previous standard, IFRS 4, in the EU effective as of 1 January 2023. IFRS 4, which is still currently in place,
is to be applied until IFRS 17 enters into effect. IFRS 4 allows local accounting practices to be used for insurance contracts
in the IFRS consolidated balance sheet. The IASB imposes uniform accounting policies for insurance contracts for the first
time in IFRS 17.
IFRS 17 provides three measurement models for measuring insurance contracts:
• In principle, measurement is performed using the general measurement model (GMM) based on a prospective method.
The model is based on the concept of contract fulfilment and uses current assumptions. When GMM is used for
measurement, future cash inflows and outflows are discounted and supplemented by a risk adjustment (RA). First-time
measurement of insurance contracts results in either a contractual service margin (CSM) that is distributed over the
term of the contract, or a loss component that is recognised immediately in the income statement. There are a number
of exceptions and special provisions for the GMM that concern groups of investment contracts with discretionary profit
participation and reinsurance cessions as well as the two measurement models below.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
35
• A simpler measurement model – the premium allocation approach (PAA) – may be used for short-term contracts and
low volatility long-term insurance contracts. The approach is similar to the unearned premium model currently used for
accounting in the property and casualty line of business. They are different, however, in that the loss reserve (provision
for outstanding claims/liability for incurred claims (LIC)) must also be accounted for using an expected present value
and a risk adjustment.
• There is a mandatory measurement model for profit-participating contracts and contracts of unit- and index-linked life
insurance – the variable fee approach (VFA). Measurement is, as a rule, performed according to the GMM, but the
contractual service margin (CSM) is variable in the VFA due to the discretionary profit participation.
Measurement units are determined using the following steps:
• Portfolio: insurance contracts that are subject to similar risks and managed together are combined into portfolios
• Group: every portfolio is divided into the following groups:
– onerous contracts;
– contracts that have no significant possibility of becoming onerous; and
– other contracts.
• Annual cohorts: groups are divided according to underwriting year (annual cohorts). However, the IFRS 17 adopted by
the EU provides an exception for the formation of annual cohorts for intergenerational, mutualised and cash-flow
matched insurance contracts.
The most significant changes from IFRS 4 to IFRS 17 in terms of the accounting of insurance contracts are:
• the use of current assumptions for measuring underwriting provisions,
• the introduction of the contractual service margin (CSM) for the unrealised future profits of a group of insurance
contracts that is distributed over the term of the contract,
• the introduction of a risk adjustment (RA) to take account of the uncertainty in the cash flows from insurance contracts,
• the elimination of savings components (investment component) as revenue, and
• the introduction of the OCI option to enable the offsetting of accounting mismatches, which can occur, for example, in
the case of life insurance contracts with direct profit participation.
Initial application of IFRS 9 and IFRS 17 within the Group
IFRS 4 DEFERRAL APPROACH
In accordance with the deferral approach requirements, the Group performed the calculations on the basis of 31 December
2015 and satisfies the criteria for deferral according to IFRS 4 with a result of more than 90%. IFRS 9 will therefore be
applied at the same time as IFRS 17. For associated companies and joint ventures that have applied IFRS 9 since 1 January
2018, VIG Insurance Group has chosen in accordance with IFRS 4 to include them in the consolidated financial statements
without adjustment. IFRS 4 does not require regular evaluation of the predominant business activity unless there is a change
in the entity’s business activities. A new evaluation was also not necessary in the current financial year.
Any information that must be published in line with the deferral approach (IFRS 4.39B-.39J) has been presented in the
following tables. Financial instruments that satisfy the SPPI criteria (SPPI-pass), but are held for trading or managed based
on fair value, are reported under “Other”. This is primarily the case for bonds.
36
Annual Financial Report 2022
Fair value 31.12.2022 31.12.2021 Fair value changes
Financial assets SPPI-pass
Other
SPPI-pass
Other
SPPI-pass
Other
in EUR '000
Loans 1,597,626
387,958
1,902,525
477,132
-83,152 -24,319
Bank deposits 1,157,148
0
783,730
0
0
0
Other financial assets 21,765,229
3,550,965
23,887,089
4,865,156
-3,850,115 -587,811
Bonds 21,765,229
940,885
23,887,089
1,207,420
-3,850,115 -166,436
Shares and other participations and other non-fixed-interest
securities 0
617,590
0
777,601
0
-96,135
Investment funds 0
1,966,474
0
2,850,069
0
-325,067
Derivatives 0
26,016
0
30,066
0
-173
Financial investments for unit- and index-linked life insurance 128,803
7,035,326
178,694
8,346,637
-177 -885,227
Non-underwriting receivables 745,570
3,585
688,558
1,045
0
0
Cash and cash equivalents 2,058,970
0
2,456,333
0
0
0
Book value 31.12.2022
SPPI-pass financial assets rating categories AAA
AA
A
BBB
BB and lower
No rating
Total
in EUR '000
Loans and bank deposits 63,538
362,319
1,175,325
577,581
442,319
267,061
2,888,143
Other financial assets 2,238,056
6,164,994
6,748,913
5,233,242
1,449,594
159,467
21,994,266
Financial investments for unit- and index-linked life
insurance
0
10,724
40,646
42,393
38,895
-3,855 128,803
Non-underwriting receivables 257
825
18,857
616
13,923
711,507
745,985
Cash and cash equivalents 1
15,082
1,599,843
290,657
125,731
27,656
2,058,970
Book value 31.12.2021
SPPI-pass financial assets rating categories AAA
AA
A
BBB
BB and lower
No rating
Total
in EUR '000
Loans and bank deposits 55,730
344,211
850,960
669,786
404,914
206,732
2,532,333
Other financial assets 2,192,933
7,265,995
7,828,410
5,275,249
997,030
231,576
23,791,193
Financial investments for unit- and index-linked life
insurance
0
47,629
42,861
60,143
28,420
-359 178,694
Non-underwriting receivables 331
647
17,128
731
19,435
650,340
688,612
Cash and cash equivalents 414
19,741
1,714,854
586,364
121,635
13,325
2,456,333
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
37
SPPI-pass financial assets with a significant risk of default 31.12.2022 31.12.2021
Book value
Fair value
Book value
Fair value
in EUR '000
Loans and bank deposits 463,796
447,469
422,691
427,313
Other financial assets 1,514,676
1,505,969
1,062,883
1,073,182
Financial investments for unit- and index-linked life insurance 38,720
38,720
28,267
28,267
Non-underwriting receivables 62,035
62,035
57,570
57,570
Cash and cash equivalents 126,913
126,913
122,686
122,686
IMPACT ON CONSOLIDATED BALANCE SHEET AND CONSOLIDATED SHAREHOLDERS’ EQUITY
VIG Insurance Group will apply IFRS 9 and IFRS 17 for the first time from 1 January 2023, with IFRS 17 applied retrospec-
tively and the Group having decided to apply the classification overlay within the meaning of IFRS 9.
The initial application will result in significant changes and therefore have a material influence on the consolidated financial
statements. The derivation of the adjusted opening balance was performed and resulted in a reduction in shareholders’
equity at the current implementation status. This is currently broken down as follows:
Estimated impacts on shareholders’ equity 1.1.2022
in EUR '000
Adjustments due to IFRS 17 implementation -2,039,982
Adjustments due to IFRS 9 implementation 1,674,537
Subtotal -365,445
Effects from deferred taxes 154,873
Total -210,572
The effects on the opening balance are also presented below. These are still preliminary, so changes may occur until they
are finalised. Reasons for this include that:
• financial reporting processes and internal controls are still being adapted and continually improved;
• the new systems are still being tested and optimised despite the fact that IAS 39/IFRS 4 and IFRS 9/17 were running in
parallel in 2022;
• internal implementation work in certain sub-areas – particularly alignment work for internal reinsurance – is not yet
complete;
• when classifying financial instruments in accordance with IFRS 9, individual adjustments can still be made in order to
enable an asset-liability match in the shareholders’ equity and the income statement that is as efficient as possible.
38
Annual Financial Report 2022
Effects on the assets Balance Sheet
as of
31.12.2021
IFRS 17
adjustment
IFRS 9
adjustment
Adjustments/
reclassifications
Balance sheet
as of
1.1.2022
in
EUR '000
Cash and cash equivalents 2,456,333
271,074
2,727,407
Financial assets 40,207,620
-1,557,445 1,679,252
67,592
40,397,019
Financial assets according to IAS 39 31,682,289
-1,557,445 -30,032,823 -92,021 0
Financial assets according to IFRS 9 8,346,278
31,712,075
338,666
40,397,019
Financial investments for unit- and index-linked life insurance 8,525,331
-8,346,278 -179,053 0
Receivables 2,067,188
-1,378,020 -3,194 -336,042 349,932
Underwriting 1,377,531
-1,377,531 0
Non-underwriting 689,657
-489 -336,042 353,126
Risk provision -3,194 -3,194
Current tax assets 135,053
135,053
Investments in associates and joint ventures 276,913
276,913
Insurance contracts 1,564,605
201,804
0
1,766,409
Reinsurers' share in underwriting provisions IFRS 4 1,564,605
-1,564,605 0
Insurance contracts assets issued IFRS 17 114,156
114,156
Reinsurance contracts assets held IFRS 17 1,652,253
1,652,253
Investment property (incl. building rights) 2,378,285
-878 2,377,407
Owner-occupied property and tangible assets 472,303
114,433
586,736
Other assets 390,893
-176,654 -113,934 100,305
Goodwill 1,260,226
1,260,226
Intangible assets 483,943
-14,607 -48 469,288
Deferred tax assets 311,447
273,720
585,167
Right-of-Use Assets 173,348
173,348
Total assets 52,178,157
-2,924,922 1,675,180
276,795
51,205,210
Effects on the liabilities
Balance Sheet
as of
31.12.2021
IFRS 17
adjustment
IFRS 9
adjustment
Adjustments/
reclassifications
Balance sheet
as of
1.1.2022
in EUR '000
Liabilities and other payables 1,738,513
-1,002,395 3,075
739,193
Underwriting 1,166,270
-1,166,270 0
Non-underwriting 572,243
163,875
3,075
739,193
Current tax liabilities 243,382
243,382
Financial liabilities 2,623,053
747
643
2,624,443
Other liabilities 131,168
-70,852 60,316
Insurance contracts 40,735,020
219,867
0
40,954,887
Underwriting provisions IFRS 4 32,546,227
-32,546,227 0
Underwriting provisions for unit- and index-linked life insurance IFRS 4 8,188,793
-8,188,793 0
Insurance contracts liabilities issued IFRS 17 40,905,302
40,905,302
Reinsurance contracts liabilities held IFRS 17 49,585
49,585
Provisions 890,189
-32,307 857,882
Deferred tax liabilities 218,884
118,847
337,731
Consolidated shareholders' equity 5,597,948
-2,039,982 1,674,537
154,873
5,387,376
Total assets 52,178,157
-2,924,922 1,675,180
276,795
51,205,210
The contractual service margin (CSM) of approximately EUR 5.1 billion is included in Insurance contracts liabilities issued.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
39
IFRS 9 APPLICATION DETAILS
VIG uses a central subledger for the measurement of financial instruments. This allows the processes associated with the
recognition and measurement of financial instruments to be optimised and streamlined. More than 95% of financial
instruments relevant to IFRS 9 are currently managed in this system. In the future, this makes it significantly easier to
consistently apply IFRS 9, including calculation of ECL. The classification of financial assets based on the SPPI criteria has
already been implemented.
The IFRS 9 guidelines were finalised and rolled out in VIG Insurance Group as part of the IFRS 9/17 programme. These
guidelines include the methods used for uniform implementation of IFRS 9.
In the future, illiquid portfolios for which the “hold strategy” is used will be classified as measured at AC. This applies in
particular to loans. Financial assets that both satisfy the SPPI criterion (SPPI-pass) and are subject to the “hold to collect
and sell” business model are categorised as measured at FVtOCI. Financial assets that are not compliant with SPPI (SPPI-
fail) or do not meet any of the above-mentioned business models are recognised as measured at FVtPL.
As part of the initial application of IFRS 9, the representation of financial instruments of the unit-linked and index-linked life
insurance was harmonised with the presentation of underwriting positions on the liabilities side of the balance sheet. Against
this background, these financial instruments are no longer listed separately, but are included in the financial instruments
within the definition of IFRS 9, measured at FVtPL or at AC. Among other things, this influences the recognition of cash and
cash equivalents of financial instruments for unit- and index-linked life insurance.
As a rule, financial assets within the meaning of IFRS 9 are to be distinguished between debt instruments and equity
instruments. The following table shows the classification of debt instruments and equity instruments according to both IAS
39 and IFRS 9 as of the transition date 1 January 2022.
Debt instruments
IAS 39 IFRS 9
SPPI
-
pass
1
SPPI
-
fail
Business model
Hold to collect Hold to collect and sell Neither
Loans and other investments measured at AC measured at FVtOCI measured at FVtPL measured at FVtPL
Held to maturity (incl. reclassified) measured at AC measured at FVtOCI measured at FVtPL measured at FVtPL
Available for sale measured at AC measured at FVtOCI measured at FVtPL measured at FVtPL
Recognised at fair value through profit and loss measured at AC measured at FVtOCI measured at FVtPL measured at FVtPL
1
Expected credit loss (ECL) must be calculated for SPPI-pass debt instruments.
Equity instruments
IAS 39 IFRS 9
Held for trading FVtOCI option
Available for sale measured at FVtPL measured at FVtOCI
Recognised at fair value through profit and loss measured at FVtPL measured at FVtOCI
40
Annual Financial Report 2022
The two following diagrams show the distribution of
the classification of financial assets (as a percentage) according to both
IFRS 9 and IAS 39 as of 1 January 2022:
IFRS 9 IAS 39
Included in the category measured at AC according to IFRS 9 are cash and cash equivalents, debt instruments subject to
SPPI-pass as well as the “hold to collect” business model, and receivables to which the ECL model applies. According to
the current implementation status of IFRS 9, the share of any financial instruments measured at AC is reduced.
More than half of the total financial assets are classified as measured at FVtOCI under IFRS 9. This includes debt instruments
that are assigned to both SPPI-pass and to the “hold to collect and sell” business model.
Financial assets that are classified as measured at FVtPL according to IFRS 9 account for the second-largest share. This
category is predominantly made up of financial instruments for unit- and index-linked life insurance and investment funds.
Thus, around 85% of financial assets are measured at fair value under IFRS 9. This means that the share of the financial
assets measured at fair value increases after the initial application of IFRS 9.
CHANGE FROM CLEAN VALUE TO DIRTY VALUE ACCOUNTING
As part of the initial application of IFRS 9, financial instruments will subsequently be accounted at the dirty value. This means
that – in contrast to IAS 39 accounting – the accrued interest is no longer recognised as a separate item in the balance
sheet but is listed as part of the book value.
30.8%
measured at FVtPL
15.4%
measured at AC
53.8%
measured at FVtOCI
Recognised
at fair value
through
profit and
loss
Held to maturity
incl. loans and
non-underwriting
receivables
60.2% Available for sale
19.8%20.0%
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
41
IFRS 17 APPLICATION DETAILS
As of the transition date 1 January 2022, the Group has:
• defined, recognised and measured every group of insurance contracts and all acquisition costs recognised as assets as
if IFRS 17 had always been applicable, unless the fair value approach was applied as of the transition date;
• derecognised all balances that are not to be recognised under IFRS 17; and
• recorded any resulting net differences under consolidated shareholders’ equity.
Under IFRS 17, there is a choice in relation to measurements during the year for interim reporting. In the case of changes
to estimates, IFRS 17 requires contractual service margin (CSM) effects to be immediately recognised in the income
statement. Under IAS 34, however, the frequency of reporting must not influence the amount stated for the result for the
year. So that the result for the year is not influenced, measurements made during the year must be carried out on a
cumulative basis from the start of the financial year to the relevant reporting date during the year (year-to-date accounting).
Consequently, the year-to-date accounting does not take into account the changes to estimates recorded during the year
in previous periods. In contrast, these changes in estimates recorded during the year in prior periods would have to be
included in the calculation for period-to-period accounting. VIG has opted for year-to-date accounting in accordance with
IFRS 17.B137.
Additionally, the Group exercises the optional exemption from grouping by annual cohorts that is applicable in the EU. This
exemption primarily concerns long-term life insurance contracts and health insurance contracts that are eligible for profit
participation. However, due to cost-benefit considerations and materiality aspects, insurance companies from non-EU
member states that apply IFRS 17 at a local level are not obliged to apply this optional EU exemption for the consolidated
financial statements.
Primary insurance and facultative reinsurance were grouped in the IFRS 17 portfolio as follows:
• Life insurance and health insurance:
– With profit participation
– Unit-linked and index-linked
– Others
– Issued and held Treaty reinsurance
– Facultative issued reinsurance
– Facultative held reinsurance
– Long-term health insurance (SLT)
• 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
42
Annual Financial Report 2022
– A
ssistance
– Miscellaneous financial losses
– Issued and held Treaty reinsurance
– Facultative issued reinsurance
– Facultative held reinsurance
In primary insurance, the PAA is applied in the non-life line of business for short-term contracts and also serves as the
preferred measurement model. This is also the case for multi-year insurance contracts in non-life insurance, insofar as the
measurement models do not lead to any material differences. In the case of multi-year insurance contracts in primary
insurance, the GMM is applied, and in the presence of a substantial profit participation, the VFA is applied in life insurance
and health insurance.
Under IFRS 17, the determination of the risk adjustment is required for non-financial risks (Risk adjustment). The standard
does not set out any specific requirements in this context. VIG has therefore decided to follow the cost of capital approach
methodology of Solvency II when determining the risk adjustment under IFRS 17. This corresponds to the opportunity costs
for allocated capital.
The health insurance business in Austria comprises insurance contracts with direct profit participation in accordance with
IFRS 17.B101. The IFRS 17.B101 a) to c) criteria on mandatory application of the VFA are met primarily by the premium
adjustment mechanism that ensures life-long coverage of the insured risks.Fully retrospective approach
The Group has adopted the full retrospective approac
h where applicable. This was thus applied to the non-life business as
well as the assumed and ceded reinsurance, which are measured according to the PAA. In order to apply the fully
retrospective approach as far as possible, all available and reliable information was taken from existing systems.
Nevertheless, it was precisely the limited availability of data that was the decisive reason that the fair value approach was
applied for the long-term business as of the transition date. For the most part, long-term business comprises life insurance,
health insurance (SLT) and any property and casualty insurance contracts that fall under the GMM.
Fair value approach
The difference between the fair value of the groups
of insurance contracts and the fulfilment cash flow as of the transition
date results in the contractual service margin (CSM) or the loss component of the mathematical reserve (liability for remaining
coverage (LRC)). When determining the fair value, the principles of IFRS 13 were applied where this was permitted. In
addition, the Group made extensive use of the rule that groups of insurance contracts can also be aggregated over the
annual cohorts in the fair value approach as of the transition date.
All available and reliable information was gathered in order to
• identify the groups of insurance contracts,
• determine whether policies with direct profit participation existed,
• identify policies that contain discretionary cash flows that are not subject to direct profit participation, and
• determine whether investment contracts exist that satisfy the criteria for investment contracts with direct profit
participation in accordance with IFRS 17.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
43
When carrying out measurements according to the fair value approach, VIG determined the interest rates used for discounts
for the groups of insurance contracts as of the transition date. The determined interest rates correspond to the weighted
average interest rates that are applied for the underlying contracts as of the date of initial application.
The discount rate used for the periodic compounding of the contractual service margin (CSM) is determined using the
bottom-up approach.
Furthermore, VIG has decided, from the transition date, to break down the insurance finance result into amounts that are
included in the income statement and amounts that are included in the statement of comprehensive income.
In order to determine the liabilities for insurance contracts as of the transition date, the costs of capital approach was used
for the risk adjustment (RA) to calculate the fair value.
FOREIGN CURRENCY TRANSLATION
Foreign currency transactions
The separate financial statements of each subsidiary are prepared in the currency that generally prevails for the ordinary
business activities of the company (functional currency). Within VIG Insurance Group, the functional currency is generally
the local currency. Transactions not concluded in the functional currency are recognised using the mean rate of exchange
on the date of the transaction. Monetary assets and liabilities in foreign currency existing on the balance sheet date are
translated to euro using the mean rate of exchange on the balance sheet date.
Any resulting foreign currency gains and
losses are recognised through profit or loss.
Translation of separate financial statements in foreign currencies
Assets, liabilities, income and expenses are presented in euro, the reporting currency of VIG Holding.
All assets and liabilities reported in the separate financial statements are translated to euro using the mean rate of exchange
on the balance sheet date. Items in the income statement are translated using the average month-end mean rate of
exchange. In the statement of cash flows, the mean rate of exchange on the balance sheet date is used for changes in
balance sheet items and the mean rate of exchange at the end of the period is used for changes in income statement items.
Currency translation differences, including those that result from accounting using the equity method, are recognised directly
in equity.
44
Annual Financial Report 2022
Currency End-of-period exchange rate Average exchange rate
31.12.2022
31.12.2021
2022
2021
1 EUR
≙
Albanian lek ALL 114.2300
120.7600
118.9211
122.4423
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 2.8844
3.5040
3.0686
3.8056
Croatian kuna HRK 7.5365
7.5156
7.5349
7.5284
Macedonian denar MKD 61.4932
61.6270
61.6219
61.6276
Moldovan leu MDL 20.3792
20.0938
19.8982
20.9256
New Turkish lira TRY 19.9649
15.2335
17.4088
10.5124
Polish zloty PLN 4.6808
4.5969
4.6861
4.5652
Romanian leu RON 4.9495
4.9490
4.9313
4.9215
Swiss franc CHF 0.9847
1.0331
1.0047
1.0812
Serbian dinar RSD 117.3224
117.5821
117.4641
117.5736
Czech koruna CZK 24.1160
24.8580
24.5659
25.6405
Ukraine hryvnia UAH 38.9510
30.9226
33.9954
32.3009
Hungarian forint HUF 400.8700
369.1900
391.2865
358.5161
US Dollar USD 1.0666
1.1326
1.0531
1.1827
New Turkish lira (TRY)
A value of three-year cumulative inflation above 100% is considered one of the indicators for the application of IAS 29
Financial Reporting in Hyperinflationary Economies; this is the case in Türkiye. In the present consolidated financial
statements, VIG Insurance Group fully consolidates two Turkish insurance companies that compile their financial statements
in the functional currency TRY. These companies do not have any material long-term non-monetary assets that would have
a material accounting impact by virtue of IAS 29, which is why IAS 29 is not applied in the present consolidated financial
statements.
ESTIMATES AND DISCRETIONARY DECISIONS
Preparation of the consolidated financial statements
requires 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 on the balance sheet date are shown in the consolidated balance sheet on page 28 or the
corresponding disclosures in the notes. Sensitivity analyses for assets and liabilities are presented in the risk report starting
on page 90.
Estimates and discretionary decisions
Underwriting provisions Details on page 56
Financial instruments recognised at fair value (Level 3) Details on page 45 and starting page 133
Impairment of goodwill Details on page 45
Valuation allowances for receivables and other (accumulated) impairment losses Details on page 45 and page 53
Value of deferred tax assets Details on page 45
Method of consolidation Details on page 46 and 61ff
Materiality Details on page 46
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
45
Financial instruments recognised at fair value (Level 3)
Suitable valuation methods are used to calculate the fair value of financial instruments that are not traded in active markets.
The assumptions used are based on market data available on the balance sheet date. To determine the fair value of many
financial assets that are not traded in active markets, VIG Insurance Group uses present value methods based on appro-
priate interest rate models. Note 24. Financial instruments and fair value measurement hierarchy starting on page 133 provides
further information on the valuation process. Information on the impairment of financial assets is provided on page 52.
Impairment of goodwill
Goodwill is tested for impairment at least once a year in accordance with the method explained on page 47 in the Impair-
ment of non-financial assets section. Estimates in this area primarily concern the projected earnings of the CGUs that the
calculations are based on, and specific parameters, in particular the growth rates and discount rates.
Sensitivities
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 millions
Baltic States 33.1
Hungary 5.2
Valuation allowances for receivables
The collectability of receivables is based on experience. Information on the recognition of potential impairment losses is
provided on page 53.
Value of deferred tax assets
Income taxes must be estimated for each tax jurisdiction in which VIG operates. The current income tax expected 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 financial statements 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, under application of IFRIC 23.
The Managing Board must make assessments and, taking into account tax uncertainties, judgements when calculating
current and latent 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 concerning maximum loss carryforward
periods.
The following factors are considered when assessing the probability of being able to utilise deferred tax assets in the future:
• past results of operations,
• operating plans,
• loss carryforward periods,
• tax planning strategies and
• existing deferred tax liabilities.
46
Annual Financial Report 2022
Information on the existing group agreement for Aust
rian companies and some foreign companies is provided on page 55.
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 reduced or increased and the change recognised in the income statement or charged or
credited to equity, depending on the treatment used when the deferred tax asset was originally recognised. Further
information can be found under Taxes in the Accounting policies section starting on page 53 and in Note 6. Deferred taxes
on page 110.
Method of consolidation
Discretionary decisions by the Managing Board primarily concern determining the scope of consolidation for consolidated
companies.
Companies that were of material importance at the time of first consolidation generally continue to be included in the scope
of consolidation. Circumstances could arise, however, that lead to the Managing Board using its discretion to perform a
reassessment of the entire scope of consolidation. This could result in non-material companies that were consolidated in
the past being removed from the scope of consolidation again. Companies that, due to their business activities, have
revenues that are primarily generated and charged within the Group and do not generate any significant profits or losses,
are not included in the scope of consolidation unless they have cross-border operations.
Thresholds calculated based on previous quarterly financial statements and the latest annual financial statements are used
to determine the current scope of consolidation.
Materiality
Under IAS 1.31, only material information is to be presented in the financial statements. This applies even if a standard
specifies certain requirements or minimum requirements. The IASB’s aim with regard to this paragraph, in conjunction with
a Practice Statement published thereon, was to create the foundation for clear, understandable financial reporting based
on the most important information.
A scope of discretion exists when deciding whether information concerns material or immaterial disclosures. The Managing
Board of the VIG Holding introduced the use of a threshold for determining the materiality of notes disclosures and
associated accounting policies in this Annual Report. If the threshold is not exceeded, information is only published in the
Annual Report if the information is judged to be material for the financial statement reader during the approval process
based on qualitative criteria.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
47
ACCOUNTING POLICIES
INTANGIBLE ASSETS (A)
Goodwill
Goodwill is accounted for in the functional currency of each entity. Goodwill is measured at cost less accumulated
impairment losses. In the case of shares in at equity consolidated companies, goodwill is included in the adjusted book
value of the participation.
Other intangible assets
Purchased intangible assets are recognised on the balance sheet at cost less accumulated amortisation and impairment
losses. No noteworthy intangible assets were created by the companies in the scope of consolidation. With the exception
of trademarks, all intangible assets have a finite useful life. The intangible assets are therefore amortised over their period
of use.
Average useful life in years from
to
Software 3
13
Software is amortised using the straight-line method. Software components are also examined on an event-driven basis to
see whether they can still be used. If there is a high probability that certain IT systems or programme sections can no longer
be used or no longer be fully used, a write-down must be made. If a change in useful life is determined during full use, the
amortisation period is changed to the new useful life.
In previous years trademarks with unlimited useful lives were identified as part of the purchase price allocation during
acquisition of the companies Asirom, BTA Baltic and Seesam. The unlimited useful life results from the fact that there is no
foreseeable end to their economic life. The fair value of the trademarks was determined during first-time consolidation using
the relief-from-royalty method. A “tax amortisation benefit” was taken into account in the relief-from-royalty method. The
Asirom trademark had a book value of EUR 9,661,000 (EUR 13,648,000), the BTA Baltic trademark had a book value of
EUR 37,000,000 (EUR 37,000,000) and the Seesam trademark had a book value of EUR 7,700,000 (EUR 7,700,000) on
31 December 2022.
Impairment
The subsidiaries are combined into cash-generating units (CGU groups) at the geographical country level for testing goodwill.
The CGU groups used for impairment testing correspond to the operating segments. The trademarks were also individually
tested for impairment using the relief-from-royalty method. Intangible assets with an indefinite useful life (goodwill and
trademarks carried on the balance sheet) are tested when a triggering event occurs, including during the year, and at a
minimum at the end of the financial year.
As a rule, the value in use calculated using the discounted cash flow method is used as the recoverable amount for the
CGU group. In cases where the value in use is less than book value, fair value less selling costs is also calculated. Fair value
less cost of disposal is calculated using trailing stock exchange multipliers for the property and casualty and health lines of
business in all countries and for the life business outside Austria. For the life business in Austria the Market Consistent
Embedded Value is used.
48
Annual Financial Report 2022
To calculate value in use, the cash flows available
to shareholders of five planning years and the following perpetual annuity
are discounted. Due to the changeover to IFRS 17 from 1 January 2023, the projections will also be adapted to the IFRS
17 structure. Since these projections are not finalised until the consolidated financial statements for 2022 are compiled, an
IFRS 4 projection for one plan year was put together for the purpose of the impairment test. The subsidiaries thus prepare
a detailed plan in local currency for one year that is submitted in supervisory board meetings and centrally checked for
plausibility as part of the planning and control process. Extrapolation of the detailed plans for a further four years and the
perpetual annuity is performed using key parameter projections (combined ratios, premium growth, financial income) based
on their past values and expected future market changes. The predicted cash flows for the perpetual annuity are assumed
to continue forever. Currencies are translated to euro using the exchange rate on the 31 December reporting date for the
financial year.
All of the underwriting business assets are assigned to the CGU groups. In addition to goodwill and trademarks, these also
include all insurance portfolios and customer bases, investments, receivables and other assets. Underwriting provisions
and current liabilities are deducted from the book values. Assets are allocated to the CGU groups in the form of corporate
assets insofar as they are accounted in VIG Holding but used by the operating companies. The cash flows of the CGU
groups are accordingly adjusted for amortisation of the allocated corporate assets.
To calculate the discount rates, the capital asset pricing model (CAPM) is used to calculate a cost of equity capital. This is
done by adding country-specific inflation differentials, risk premiums and sector-specific market risk to the risk-free interest
rate (equal to the yield on German government bonds on the reporting date calculated using the Svensson method). The
base rate before inflation differentials was 2.36% (0.12%). The market risk of 7.14% (7.38%) was multiplied by a beta factor
of 0.87 (1.19) that was calculated based on a specified peer group. In contrast to the previous year, the beta factor was
determined as of the reporting date.
The long-term growth rates are calculated during the financial year based on the compound annual growth rate (CAGR)
assuming that insurance penetration in the countries concerned starting in 2013 will converge in 50–70 years consistent
with the current situation in Germany. An inflation adjustment equal to half of the inflation included in the cost of equity was
added to the CAGR.
Impairment and recoverable amounts for CGU groups 2022 2021
Impairment
Recoverable
amount
Impairment
Recoverable
amount
in EUR millions
Albania incl. Kosovo 13.6
22.1
North Macedonia 12.6
27.1
Additionally, in the financial year, impairments of acquired insurance portfolios of EUR 19,510,000 and of other intangible
assets of EUR 21,707,000 were recognised in the income statement. These values are due to the newly consolidated
Aegon companies resulting from the additional insurance tax determined after closing in Hungary, and the Asirom brand.
Impairments of intangible assets and reversals of impairments of intangible assets are included as separate items in the
income statement between the Group operating result and the result before taxes.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
49
Key calculation parameters Discount rates Country risks Long-term growth rate
2022
2021
2022
2021
2022
2021
in %
Austria 9.25
9.27
0.69
0.39
1.50
1.50
Czech Republic 9.11
9.83
1.03
0.60
3.60–5.46
4.20–5.73
Poland 11.22
10.67
1.46
0.84
5.79–7.29
5.41–6.86
Albania incl. Kosovo 16.02
14.02
7.77
4.45
6.41
6.76
Baltic States 10.15
9.79
1.58
0.91
5.20–6.69
4.94–6.39
Bosnia-Herzegovina 19.65
16.62
11.22
6.43
5.55–7.47
6.00–8.12
Bulgaria 10.52
10.65
2.76
1.58
5.64–6.18
5.97–6.83
Croatia 12.00
11.70
3.29
2.47
5.12–7.54
5.25–7.18
Moldova 22.50
18.70
11.22
6.43
8.78
9.01
North Macedonia 14.28
12.41
6.21
3.56
5.75
5.87
Romania 13.22
12.08
3.79
2.18
5.60–7.91
5.84–7.97
Serbia 14.75
12.72
5.19
2.97
5.78–7.57
5.68–7.47
Slovakia 10.02
9.72
1.46
0.84
5.77–6.03
5.32–5.53
Ukraine 40.82
18.91
17.26
6.43
15.03–18.36
8.58–12.34
Hungary 13.34
12.23
3.29
1.88
6.55–6.59
6.25–6.59
Germany 8.56
8.88
0.00
0.00
1.50
1.50
Georgia 14.00
13.21
5.19
2.97
6.12
6.67
Liechtenstein 8.56
8.88
0.00
0.00
1.50
1.50
Türkiye 37.79
25.51
11.22
5.44
14.55–17.00
10.68–13.28
Group Functions 9.25–14.75
9.27–12.72
0.69–5.19
0.39–2.97
1.50–7.57
1.50–7.47
The average increase in the discount rates is primarily due to higher country risk premiums.
INVESTMENTS (B)
General information
In accordance with the relevant IFRS requirements, some assets and liabilities are carried at fair value in the consolidated
financial statements. This concerns a significant portion of investments. VIG Insurance Group assigns all financial
instruments to one of the levels of the IFRS 13 measurement hierarchy. As a result of the decentralised organisational
structure of VIG Insurance Group, the individual subsidiaries are responsible for this fair value categorisation. This takes
account, in particular, of local knowledge of the quality of the individual fair values and any input parameters needed for
model valuation.
Fair values are determined using the following hierarchy specified in IFRS 13:
• The determination of fair value for financial instruments is generally based on price quotations in active markets for
identical assets or liabilities (Level 1).
• If a financial instrument is not listed and no market price quotations are available in active markets, fair value is
determined using price quotations for similar assets or price quotations in inactive markets (Level 2). Standard valuation
models with inputs that are observable in the market are used for Level 2 measurements. These models are primarily
used for illiquid bonds (present value method) and structured securities.
• The fair value of certain financial instruments, in particular bonds from countries without active capital markets, and
property, is determined using valuation models with input factors that are generally unobservable in the market. These
models use, for example, transactions in inactive markets, expert reports and the structure of cash flows (Level 3).
50
Annual Financial Report 2022
The table below lists the methods used and most impo
rtant input factors for Levels 2 and 3. The calculated fair values can
be used for recurring and 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
Option pricing models Stock options Theoretical price
Share prices on the valuation date; implied volatilities;
yield curve
Level 3 (Un-)observable
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 value
Company-specific equity according to separate financial
statements
Amortised cost
Fixed income instruments (illiquid bonds, policy
loans, loans) with no observable input data for
comparable assets
Book value Cost-price; redemption price; effective yield
For further information, please see Note 24. Financial instruments and fair value measurement hierarchy starting on page 133.
The following table presents the relationships between balance-sheet items and classes of financial instruments according
to IFRS 7, including measurement methods:
Balance sheet items, IAS 39 categories and classes of financial instruments according to IFRS 7 Measurement method
Financial assets
Loans and other investments At amortised costs
Financial assets held to maturity At amortised costs
Financial assets available for sale At fair value
Financial assets recognised at fair value through profit and loss* At fair value
Financial investments for unit- and index-linked life insurance At fair value
Financial liabilities
Subordinated liabilities (other liabilities) At amortised costs
Liabilities to financial institutions (other liabilities) At amortised costs
Financing liabilities (other liabilities) At amortised costs
Derivative liabilities (other liabilities) At fair value
*Including held for trading
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
51
Property
Both owner-occupied and investment properties are reported under property. Property that is both self-used and investment
property is divided. For small amounts that do not exceed the 20% limit, the entire property is reported in the larger category
(80:20 rule).
Property is measured at cost minus accumulated 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 building expansion or new building
construction). Owner-occupied and investment buildings are both depreciated using the straight-line method over the ex-
pected useful life. The following average useful lives are used in the calculation:
Average useful life in years from
to
Buildings 20
50
IMPAIRMENT OF PROPERTY
Property appraisals are performed at regular intervals for owner-occupied property and investment property, regardless of
their book values, by internally and externally as well as judicially certified building construction and property appraisers.
Fair value is calculated using the capitalised earnings method or market comparisons. Unless leased, the asset value
method is generally only used for undeveloped land. The discounted cash flow method is used in exceptional cases.
If the fair value is below the book value (cost minus accumulated depreciation and write-downs), the asset is impaired. In
this case, the book value is written down to fair value through profit or loss. The method used to test for impairment is also
used to test for a reversal of impairment. On each balance sheet date, a test is performed for indications that a reversal of
impairment has taken place. The book value after the reversal may not exceed the book value that would have existed,
taking into account depreciation, if no impairment had been recognised.
Both impairments and reversals of impairments are reported in the financial result in the income statement and are shown
starting on page 126. The fair values and level hierarchy according to IFRS 13 are shown in Note 24. Financial instruments
and fair value measurement hierarchy starting on page 133.
Financial assets
Financial assets are divided into the following categories in accordance with the requirements of IAS 39:
• Loans and other investments, other receivables,
• Financial assets held to maturity,
• Financial assets available for sale,
• Financial assets recognised at fair value through profit and loss and
• Financial assets held for trading.
On initial recognition, the corresponding financial assets are measured at cost, which equals fair value at the time of acqu-
isition. For subsequent measurement of financial assets, two measurement methods are used.
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Annual Financial Report 2022
AMORTISED COST
L
oans
and other investments, other receivables and financial assets held to maturity are
subsequently measured at amor-
tised cost. The amortised cost is determined using the effective interest rate of the asset in question. A write-down is
recognised in profit or loss in the case of permanent impairment.
The current income recorded in the income statement is essentially interest income.
RECOGNISED AT FAIR VALUE
Non-derivative financial assets that are designated as a
vailable for sale and are not classified as loans and other investments,
other receivables, held-to-maturity financial assets or
financial assets
at fair value through profit or loss are also subsequently
measured at fair value. Fluctuations in value are to be recognised in other comprehensive income and are reported in equity
in other reserves. This does not include impairments that are recognised in profit and loss.
Upon disposal, the cumulative gains and losses recognised in other reserves in previous periods are transferred to the result
for the period (recycling).
Spot transactions are accounted for at the settlement date.
AMENDMENTS TO IAS 39 AND IFRS 7 RECLASSIFICATION OF FINANCIAL ASSETS
The IASB published amendments to IAS 39 and IFRS 7 in October 2008. The adjusted version of IAS 39 permits re-
classification of non-derivative financial assets (except for financial instruments that were measured using the fair value
option upon initial recognition) in the “held-for-trading” and “available-for-sale” categories.
The amendments to IAS 39 and IFRS 7 went into effect retroactively to 1 July 2008 and were applied prospectively from
the time of reclassification. Reclassifications performed in VIG Insurance Group before 1 November 2008 used fair values
as of 1 July 2008.
IMPAIRMENT OF FINANCIAL ASSETS
On each balance sheet date, the book values of financial assets not measured at fair value through profit or loss are tested
for evidence of impairment. Such evidence could be, for example, the debtor experiencing significant financial difficulties, a
high probability of insolvency proceedings, the loss of an active market for the financial asset, a significant change in the
technological, economic, legal or market environment of the issuer, or a permanent decrease in the fair value of the financial
asset below amortised cost. The Managing Board has considerable discretion when quantifying the influence of information
that could affect the creditworthiness, rating and/or earning power of a debtor.
Any impairment losses due to fair value lying below the book value are recognised in profit or loss. If any changes to the fair
value of available-for-sale financial assets were previously recognised directly in equity, these changes must be eliminated
from equity and recognised in profit or loss on the income statement. As a rule, impairment of equity instruments is to be
recognised if the average fair value during the last six months was consistently less than 80% of the historical cost of
acquisition and/or if the fair value as at the reporting date is less than 50% of the historical cost of acquisition.
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53
FINANCIAL INSTRUMENTS FOR UNIT-LINKED AND INDEX-LINKED LIFE INSURANCE (C)
Financial instruments for unit-linked and index-linked life insurance provide cover for unit-linked and index-linked life
insurance underwriting provisions. The survival and surrender payments for these policies are linked to the performance of
the underlying financial instruments. The income from these is also credited in full to the policyholders. As a result,
policyholders bear the risk associated with the performance of the financial instruments. They are held in separate cover
funds, and managed separately from the other financial assets of VIG Insurance Group.
Since the changes in value are occasionally equal to the changes in value of the underwriting provisions, these financial
instruments are valued in accordance with the requirements of IAS 39.9b. Financial instruments for unit- and index-linked
life insurance are therefore measured at fair value, and changes in value are recognised in the income statement.
REINSURERS’ SHARE IN UNDERWRITING PROVISIONS (D)
The reinsurers’ share in underwriting provisions is
measured in accordance with contractual provisions. The credit quality
of the respective counterparty is taken into account when the reinsurers’ share is measured. Information on the selection
of reinsurers is provided in the Financial instruments and risk management section on page 93.
RECEIVABLES (E)
The receivables shown in the balance sheet relate to
the following in particular:
• Receivables from direct insurance business
– from policyholders
– from insurance intermediaries
– from insurance companies
• Receivables from reinsurance business
• Other receivables
As a rule, receivables are reported at cost less impairment losses for losses already incurred but not yet known (e.g. death
that is not yet known). Impairment is necessary if there is material evidence of financial difficulties, such as default or delay
in payment and the items therefore cannot be considered collectable or not fully collectable. In the case of receivables from
policyholders, expected impairment losses from non-collectable premium receivables are shown on the liabilities side of the
balance sheet under “Other underwriting provisions” (provisions for cancellations) or deducted from the premium receivable
using a valuation allowance. The amounts included are shown in Note 5. Receivables on page 108.
TAXES (F)
Income tax expenses comprise actual and deferred tax
es. The income tax associated with transactions recognised directly
in equity is also recognised directly in equity. The actual taxes for the individual VIG Insurance Group companies are
calculated using the company’s taxable income and the tax rate applicable in the country in question.
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Annual Financial Report 2022
Deferred taxes are calculated using the balance shee
t liability method for all temporary differences between the asset and
liability values recognised in the IFRS consolidated financial statements and the individual company tax bases for these
assets and liabilities. Under IAS 12.47, deferred taxes are measured using the tax rates applicable at the time of realisation.
In addition, any probable tax benefits realisable from existing loss carryforwards are included in the calculation. Exceptions
to this deferral calculation are differences from non-tax-deductible goodwill and any deferred tax differences linked to
participations. Deferred tax assets are not recognised if it is not probable that the tax benefits they contain can be realised.
Where required, deferred taxes are calculated based on the following tax rates:
Tax rates 31.12.2022
31.12.2021
in %
Albania 15.0
15.0
Bosnia-Herzegovina 10.0
10.0
Bulgaria 10.0
10.0
Germany
1
30.0
30.0
Estonia
2
0.0
0.0
Georgia
3
15.0
15.0
Kosovo 10.0
10.0
Croatia 18.0
18.0
Latvia
4
0.0
0.0
Liechtenstein 12.5
12.5
Lithuania 15.0
15.0
Moldova 12.0
12.0
North Macedonia 10.0
10.0
Austria
5
25.0
25.0
Poland 19.0
19.0
Romania 16.0
16.0
Serbia 15.0
15.0
Slovakia 21.0
21.0
Czech Republic 19.0
19.0
Türkiye 25.0
25.0
Ukraine 18.0
18.0
Hungary 11.3
11.3
1
The tax rate shown here is a flat tax rate. The tax rate is between 15,825% and 31,715%, depending on the registered office and activities of the company.
2
The 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% to 20%.
3
As a rule, the retained profits of locally domiciled companies will not be subject to corporate income tax starting 1 January 2023. The planned implementation date was postponed from 1 January 2019 to 1 January 2023.
4
The 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%.
5
Due to a new law that was passed, the corporate income tax rate will be reduced in stages from 25% to 24% in 2023, and then to 23% in 2024.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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Group taxation
With Wiener Städtische Versicherungsverein as the parent company there is a corporate group of companies within the
meaning of § 9 of the Austrian Corporate Income Tax Act (KStG). 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 a group member earns positive income, 25% is allocated to the head of the tax group. In case of negative income,
the group member receives lump-sum compensation equal to 22.5% of the tax loss. Since the tax allocation is 25% in the
case of positive income, the group member should provide 10% of the tax benefit from group taxation resulting from
inclusion of that group member in the group. Cash settlement of tax benefits is performed for a period of three years.
Change in the Austrian tax rate
As a result of the 2022 tax reform, the corporate income tax rate will be reduced in stages from 25% to 24% in 2023 and
then to 23% in 2024. The reduction in the corporate income tax rate in Austria resulted in deferred tax income of EUR 2.0
million for the reporting period.
Additional tax on insurance premiums in Hungary
An additional insurance tax was introduced for insurance companies operating in Hungary (Government Decree on Extra-
Profit Taxes in June 2022). This additional insurance tax is a progressive tax based on gross insurance premiums for the life
and non-life insurance lines of business for the period 1 July 2022 to 31 December 2023.
This decree has resulted in a significant increase in the tax burden for Hungarian VIG insurance companies. Based on
current values for Union Biztosító and AEGON Hungary, an additional EUR 25.9 million is to be paid for the period 1 July
2022 to 31 December 2022. According to the plan values available, VIG can expect further burdens amounting to
approximately EUR 40 million in the financial year 2023.
Global minimum tax
EU member states have, in principle, agreed on the Europe-wide implementation of the Global Anti-Base Erosion (GloBE)
rules (Pillar Two) in the international tax reform set out by the OECD. This agreement stipulates that the profits of companies
with an annual revenue of at least EUR 750 million will, in future, be subject to a tax rate of at least 15%. The guideline must
be incorporated into the member states’ national legislation by the end of 2023 at the latest. It is not currently possible to
reliably estimate the impact(s) of the global minimum tax on the Group.
In order to represent Pillar Two of the tax reform in the IFRS financial statements, a draft of the changes to IAS 12 Income
Taxes has been available since January 2023, although the endorsement process for this has not yet begun. With regard
to future financial statements, the draft provides for a separate presentation of deferred taxes that are related to the new
tax in the balance sheet and of the corresponding tax expenses in the income statement from 1 January 2023. VIG has
commenced the necessary preparatory work for the presentation.
OTHER ASSETS (G)
Other assets are measured at cost less cumulative de
preciation and impairment losses. Cost comprises all costs incurred
in putting the asset into its present location in its present condition. Depreciation is performed using the straight-line method
over the expected useful life of the asset.
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Annual Financial Report 2022
UNDERWRITING PROVISIONS (H)
Classification of insurance policies
C
ontracts under which an insurance company assumes a 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 are treated as insurance policies for the purposes of IFRS. Financial risk is the risk of a possible future change
in specific interest rates, securities prices, price indices, interest rate indices, credit ratings, credit indices, or some other
variable. 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 also transfer financial risk.
Policies under which only an insignificant insurance risk is transferred from the policyholder to the insurance company are
treated as financial instruments (“financial insurance policies”) for IFRS reporting purposes. Such policies exist only to a
minor extent in the personal insurance area.
Both insurance contracts and financial insurance policies can have contract terms that qualify as discretionary participation in
net income (“profit participation”, “profit-dependent premium refund”). Contractual rights are considered discretionary par-
ticipation in net income if in addition to guaranteed benefits the policyholder also receives additional payments that are likely
to constitute a significant portion of the total contractual payments and are contractually based on:
• the profit from a certain portfolio of policies or a certain type of policy, or
• the realised and/or unrealised investment income from a certain portfolio of assets held by the insurance company, or
• the profit or loss of the company, investment fund, or business unit (e.g. balance sheet unit) holding the contract.
Policies with discretionary net income participation exist in all VIG Insurance Group countries, primarily in the life insurance
area, and to a secondary extent in the property and casualty and health insurance areas as well, and are treated as insurance
policies in accordance with IFRS 4. The net income participation in life insurance usually exists in the form of participation
in the net income or net interest income in question, calculated according to national accounting requirements. Net income
or profit participation amounts that have already been allocated or committed to policyholders are reported in the math-
ematical reserve. Amounts reported in the local annual financial statements which have been committed or allocated to
policyholders in the future by means of net income participation are reported in the balance sheet in the provision for
performance-based premium refunds.
In addition, the profit-related portion resulting from IFRS measurement differences as compared to local measurement
requirements (deferred profit participation) is also reported in the provision for profit-related premium refunds. This primarily
concerns Austrian and German policies that are eligible for profit participation, as the profit participation in these countries
is governed by regulations. Deferred profit participation is not recognised in balance sheets in other countries, since policy-
holder participation is at the sole discretion of the company concerned. The rate used for calculating deferred profit partici-
pation is 80% of the difference between the value recognised in the local financial statements and the value recognised in
the IFRS financial statements.
As permitted by IFRS 4, the option to present unrealised gains and losses with the same effects on balance sheet meas-
urements of underwriting provisions, capitalised acquisition costs and purchased insurance portfolios as realised gains
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
57
and losses has been applied (shadow accounting). The first step is to allocate unrealised gains on available-for-sale
financial instruments to a deferred mathematical reserve to serve as security for contractually agreed insurance payments.
The policyholder’s share of the surplus from the remaining unrealised gains is then allocated to a provision for deferred
profit participation. Any remaining asset balance is reported as deferred policyholder profit participation resulting from
measurement differences. This deferred item is only recognised if it is highly probable, at company level, that the item
can be satisfied by future profits in which the policyholders participate. Particularly in Austria, the provision for deferred
profit participation assets was limited to the amount of the undisclosed profit shares in the profit participation pursuant
to VAG.
RECOGNITION AND ACCOUNTING METHODS FOR INSURANCE POLICIES
Based on the election provided in IFRS 4, the values recognised in the consolidated financial statements prepared in ac-
cordance with applicable national law are carried over to the IFRS consolidated financial statements. The national provisions
are only carried over, however, if they satisfy the minimum requirements of IFRS 4. Equalisation and catastrophe provisions
are therefore not recognised. In principle, accounting policies were not changed to differ from national accounting require-
ments, except when parameters used to calculate underwriting provisions did not lead to adequate funding for future
provisions. In such cases, VIG Insurance Group uses its own parameters, which are consistent with these principles. In
individual cases, the provisions formed locally by an insurance company for outstanding claims are adjusted in the consoli-
dated financial statements based on the corresponding analysis. Detailed information on the valuation of underwriting items
is available in the remarks for each item.
ADEQUACY TEST FOR LIABILITIES ARISING FROM INSURANCE POLICIES
Liabilities from insurance policies are tested at each balance sheet date for adequacy of the provisions recognised in the
financial statements.
If the value calculated based on up-to-date estimates of current valuation parameters, taking into account all future cash flows
associated with the insurance policies, is higher than the provisions formed for liabilities from insurance policies, an increase
in the provisions is recognised in profit or loss to eliminate the shortfall.
Provision for unearned premiums
Under the current version of IFRS 4, figures in annual financial statements prepared in accordance with national require-
ments may be used for the presentation of figures relating to insurance policies in the consolidated financial statements. In
Austria, a cost discount of 15% (15%) is used when calculating unearned premiums in property and casualty insurance
(10% for motor third party liability insurance (10%)), corresponding to EUR 38,995,000 (EUR 33,694,000). Acquisition ex-
penses in excess of this figure are not capitalised in Austria. For foreign companies in property and casualty insurance, a
portion of the acquisition expenses is generally recognised in the same proportion as the ratio of net earned premiums to
written premiums. To ensure uniform presentation, these capitalised acquisition costs are also shown in the consolidated
financial statements as a reduction in the provision for unearned premiums: EUR 458,361,000 (EUR 397,795,000).
Mathematical reserve
Life insurance mathematical reserves are calculated using the prospective method as the actuarial present value of obli-
gations (including declared and allocated profit shares and an administrative cost reserve) minus the present value of all
future premiums received. The calculation is based on such factors as expected mortality, costs and the discount rate.
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Annual Financial Report 2022
The mathematical reserve and related premium rate ar
e essentially calculated using the same basis, which is applied uniformly
for the entire rate and during the entire term of the policy. The appropriateness of the calculation basis is reviewed each
year in accordance with IFRS 4 and applicable national accounting requirements. Please refer to the Adequacy test for
liabilities arising from insurance policies section on page 57. For information on the use of shadow accounting, also see
page 57. Basically, the official mortality tables of each country are used for the life insurance balance sheet unit. If current
mortality expectations differ to the benefit of policyholders from the calculation used for the rate, leading to a corresponding
insufficiency in the mathematical reserves, the reserves are increased appropriately in connection with the adequacy test of
insurance liabilities.
In the life insurance balance sheet unit, acquisition costs are taken into account through zillmerisation or another actuarial
method as a reduction of mathematical reserves. The resulting negative mathematical reserves are either set to zero in
accordance with national requirements or reported in the mathematical reserve item in the consolidated financial statements.
The following average discount rates are used to calculate mathematical reserves:
As of 31 December 2022: 1.83%
As of 31 December 2021: 1.80%
In Austria, the average discount rate for life insurance was 1.55% during the reporting period (1.59%).
In addition, the share of unrealised gains and losses from available-for-sale financial instruments serving as security for
contractual obligations is shown in the mathematical reserve as part of the shadow accounting performed according to
IFRS 4.
In the health insurance balance sheet unit, mathematical reserves are also calculated according to the prospective method
as the difference between the actuarial present value of future policy payments minus the present value of future premiums.
The loss frequencies used to calculate the mathematical reserve derive primarily from analyses conducted on the Group’s
own insurance portfolio. As a rule, the mortality tables used correspond to published mortality tables. The following discount
rates are used for the great majority of transactions when calculating mathematical reserves:
As of 31 December 2022: 2.09%
As of 31 December 2021: 2.35%
Provision for outstanding claims
National insurance law and national regulations (in Austria, the Austrian Insurance Supervision Act (VAG)) require VIG
Insurance Group companies to form provisions for outstanding claims. The provisions are calculated for payment
obligations arising from claims, which have occurred up to the balance sheet date but whose basis or size has not yet
been established, as well as all related claims settlement expenses expected to be incurred after the balance sheet date,
and, as a rule, are formed at the individual policy level. These policy-level provisions are marked up by a flat-rate allowance
for unexpected additional losses. Except for the provisions for pension obligations, no discounting is performed. Insurance
losses that have occurred up to the balance sheet date but were not known at the time that the balance sheet was
prepared (“IBNR”), and losses that have occurred but have not been reported in the correct amount (“IBNER”), are included
in the provision (incurred but not reported claims provisions and provisions for as yet unidentified large losses). Separate
provisions for claims settlement expenses are formed for internally incurred expenses attributable to claims settlement
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under the allocation according to origin principle. Collectable recourse claims are deducted from the provision. Where
necessary, actuarial estimation methods are used to calculate the provisions. The methods are applied consistently, with
both the methods and calculation parameters tested continuously for adequacy and adjusted if necessary. The provisions
are affected by economic factors (e.g. inflation rate) and by legal and regulatory developments, which may be subject to
change over time.
Provision for profit-unrelated premium refunds
The provisions for profit-unrelated premium refunds relate, in particular, to property and casualty and health insurance, and
pertain 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. These provisions are formed at the individual policy level. Since the provisions
are predominantly short-term provisions, no discounting has been performed.
Provision for profit-related premium refunds
Profit shares that were dedicated to policyholders in local business plans, but have not been allocated or committed to
individual policyholders as of the balance sheet date, are shown in the provision for profit-related premium refunds
(“discretionary net income participation”). In addition, both the portion realised through profit and loss and the portion
realised directly in equity that results from measurement differences between IFRS and local measurement requirements
(“deferred profit participation”) are reported in this item. Please see the Classification of insurance policies section starting
on page 56.
Other underwriting provisions
The other underwriting provisions item primarily includes provisions for cancellations. Cancellation provisions are formed for
the cancellation of premiums that have been written but not yet paid by the policyholder, and therefore represent a liabilities-
side allowance for receivables from policyholders. These provisions are formed based on the application of certain
percentage rates to overdue premium receivables.
UNDERWRITING PROVISIONS FOR UNIT- AND INDEX-LINKED LIFE INSURANCE (I)
Underwriting provisions for unit- and index-linked life insurance represent obligations to policyholders that are linked to the
performance and income of the corresponding financial instruments. The measurement of these provisions corresponds to
the measurement of the financial instruments for unit- and index-linked life insurance, and is based on the fair value of the
investment fund or index serving as a reference.
NON-UNDERWRITING PROVISIONS (J)
Pension obligations are based on individual contractual obligations and collective agreements. The obligations are defined
benefit obligations. The plans are based on average salary and/or the number of years of service with the company.
These obligations are accounted for in accordance with IAS 19. The present value of the defined benefit obligation (DBO)
is calculated. Calculation of the DBO is performed using the projected unit credit method. In this method future payments
calculated based on realistic assumptions are accrued linearly over the period in which the beneficiary acquires these
entitlements. The necessary provision amount is calculated for the relevant balance sheet date using actuarial reports that
have been provided for the current financial year and the prior financial year.
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Annual Financial Report 2022
The calculations are based on the following assumpti
ons:
Pension assumptions 31.12.2022
31.12.2021
Interest rate 3.60%
1.00%
Employee turnover rate (age-dependent) 0%–4%
0%–4%
Retirement age, women (transitional arrangement) 62+
62+
Retirement age, men (transitional arrangement) 62+
62+
Life expectancy (for employees, in accordance with) (AVÖ 2018-P)
(AVÖ 2018-P)
Pension and salary increases Regulatory pension and special
contracts
Association recommendation
31.12.2022
31.12.2021
31.12.2022
31.12.2021
2022 2.25%
1.50%
2023 8.50%
2.25%
0.00%
1.50%
2024 6.50%
2.25%
0.00%
1.50%
2025 3.50%
2.25%
0.00%
1.50%
2026 2.50%
2.25%
1.20%
1.50%
2027 2.00%
2.25%
1.20%
1.50%
The weighted average length of the DBO for pensions was 12.11 years in financial year 2022 (15.54 years). A portion of
the direct pension obligations are administered as an occupational group insurance plan following conclusion of an
insurance contract in accordance with § 93–98 VAG.
SUBORDINATED LIABILITIES AND LIABILITIES EXCL. SUBORDINATED LIABILITIES (K)
As a rule, all liabilities are measured at amortised cost. This also applies to liabilities arising from financial insurance policies.
The fair value of financial liabilities is shown in Note 24. Financial instruments and fair value measurement hierarchy starting
on page 133.
NET EARNED PREMIUMS (L)
As a rule, unearned premiums (provision for unearned
premiums) are determined on a pro rata basis over time. No deferral
of unit- and index-linked life insurance premiums is performed, since the full amount of the premiums written in the reporting
period is included in the calculation of the underwriting provisions for unit- and index-linked life insurance.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
61
SCOPE AND METHODS OF CONSOLIDATION
Number of companies Domestic
Foreign
Total
Number
Consolidated companies 84
93
177
Fully consolidated companies 70
90
160
At equity consolidated companies 14
3
17
Non-consolidated companies 58
82
140
Total 142
175
317
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 the VIG Holding level. Qualitative assessment criteria are also
used. The absolute profit before taxes or total assets, for example, could be checked for this purpose. If a company does
not satisfy 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 are not included in the scope of consolidation. Companies
that have no material effect on the net assets, financial position and results of operations when considered individually or in
aggregate have essentially been measured at fair value.
Fully controlled investment funds (“special funds”) were fully consolidated in accordance with the requirements of IFRS 10.
These consolidated institutional funds are not separate corporate entities and therefore not structured entities as defined in
IFRS 12. They are investment funds that have not been designed for public capital markets. Due to a lack of control, mutual
funds are not consolidated, even if a majority of voting rights are held. The ability of subsidiaries to transfer funds (in the
form of dividends) to parent companies can be restricted by corporate law and regulations.
BUSINESS COMBINATIONS (IFRS 3)
Business combinations are recognised using the purchase method. Goodwill is recognised as the value of the consideration
transferred 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 part 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 the net assets 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.
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Annual Financial Report 2022
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 performed with cash and cash equivalents. A list of fully and at equity consolidated com-
panies is provided from page 140 in Note 28. Affiliated companies and participations.
CHANGES IN THE SCOPE OF CONSOLIDATION
Deconsolidations Reason for deconsolidation
Date
Reportable segment
TBI BULGARIA EAD in liquidation, Sofia Liquidation
1.1.2022
Extended CEE
VITEC Vienna Information Technology Consulting GmbH, Vienna Sale
30.6.2022
Group Functions
Expansion of the scope of consolidation* Acquisition/
formation
Interest
First-time
consolidation
Method
Date
in %
Date
365.life, d. s. s., a. s., Bratislava 2022
100.00
31.12.2022
full consolidation
AB Modřice, a.s., Prague 2017
100.00
1.1.2022
full consolidation
AEGON Magyarország Általános Biztosító Zártkörűen Működő Részvénytársaság, Budapest 2022
100.00
1.4.2022
full consolidation
AEGON Magyarország Befektetési Alapkezelő Zártkörűen Működő Részvénytársaság, Budapest 2022
100.00
1.4.2022
full consolidation
AEGON Magyarország Pénztárszolgáltató Zártkörűen Működő Részvéntársaság, Budapest 2022
100.00
1.4.2022
full consolidation
Atzlergasse 13-15 GmbH & Co KG, Vienna 2022
100.00
1.7.2022
full consolidation
Atzlergasse 13-15 GmbH, Vienna 2022
100.00
1.7.2022
full consolidation
AUTODROM SOSNOVÁ u České Lípy a.s., Prague 2021
100.00
1.1.2022
full consolidation
Brockmanngasse 32 Immobilienbesitz GmbH, Vienna 2022
100.00
1.4.2022
full consolidation
MERLOT INVESTMENT SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOŚCIĄ, Warsaw 2022
100.00
1.5.2022
full consolidation
Nordbahnhof Projekt EPW8 GmbH & Co KG, Vienna 2021
100.00
31.12.2022
full consolidation
Nordbahnhof Projekt EPW8 Komplementär GmbH, Vienna 2021
100.00
31.12.2022
full consolidation
Nordbahnhof Projekt Taborstraße 123 GmbH & Co KG, Vienna 2021
100.00
31.12.2022
full consolidation
Nordbahnhof Projekt Taborstraße 123 Komplementär GmbH, Vienna 2021
100.00
31.12.2022
full consolidation
Vienna Insurance Group Polska Spółka z organiczoną odpowiedzialnością, Warsaw 2006
100.00
1.1.2022
full consolidation
VİENNALİFE EMEKLİLİK VE HAYAT ANONİM ŞİRKETİ, Istanbul 2022
100.00
1.5.2022
full consolidation
VIG Hungary Holding B.V., The Hague 2022
55.00
1.4.2022
full consolidation
VIG Hungary Holding II B.V., The Hague 2022
55.00
1.4.2022
full consolidation
VIG Magyarország Befektetesi Zartköröen Müködö Reszvenytarsasag, Budapest 2022
55.00
1.2.2022
full consolidation
VIG Türkiye Holding B.V., Amsterdam 2022
100.00
1.5.2022
full consolidation
VIVECA Beteiligungen GmbH, Vienna 2020
100.00
1.1.2022
full consolidation
*Insofar as significant goodwill occurred, this is recognised in Note 1.1. Goodwill.
It should be noted that the purchase price allocation of the newly acquired companies is still preliminary, unless the one-
year limit has been exceeded.
The companies acquired in the financial year led to an outflow of cash and cash equivalents totalling EUR 407,433,000.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
63
Purchase of Aegon companies
On 29 November 2020, VIG Insurance Group reached agreement with Aegon N.V. to acquire its insurance business in
Hungary, Poland, Romania and Türkiye. The agreed acquisition price of EUR 830.0 million was not fully settled in the financial
year as the transaction could not yet be executed in its entirety. Further information on the status of the purchase of the
Aegon companies is below.
Aegon companies in Hungary and Türkiye
In March 2022, VIG Holding acquired the Hungarian business of Dutch company Aegon after approval by the local
Hungarian authorities; and the 45% participation of the Hungarian state holding Corvinus in the Hungarian business was
also closed successfully. In April 2022, official approval was granted and, as a result, the Turkish Aegon company was also
closed successfully (Viennalife (Türkiye)).
From the initial consolidation of Aegon Hungary, intangible fixed assets totalling EUR 321,975,000 were disclosed as part
of the purchase price allocation (of which goodwill totalling EUR 188,573,000). The 45% participation of the Hungarian
state holding Corvinus in Aegon in Hungary led to an increase in non-controlling interests in the consolidated shareholders’
equity of EUR 117,722,000. The goodwill disclosed is primarily based on future synergies between the Hungarian
companies. In Türkiye, intangible fixed assets totalling EUR 48,471,000 were disclosed (of which goodwill totalling EUR 0).
Aegon companies in Poland and Romania
The acquisition of the Aegon insurance business in Poland and Romania was agreed subject to the approvals required
under supervisory and competition law. Due to the lack of closing for the transaction and, therefore, lack of control over the
companies, they had not yet been added to the scope of consolidation as of the balance sheet date.
Change in significant minority interests Change
Change of interest
Change in non-
controlling interests
Date
in %
in EUR '000
KÁLVIN TOWER Ingatlanfejlesztési és Beruházási Korlátolt Felelősségű Társaság,
Budapest 23.3.2022
-44.39
1,015
Pension Assurance Company Doverie AD, Sofia 29.12.2022
-9.25
19,160
Union Biztosító 23.3.2022
-44.39
18,056
The International Finance Corporation (IFC), a member of the World Bank Group, held a 9.99% stake in Pension Assurance
Company Doverie AD (Doverie) at the end of December 2022 (calculated 9.25% of the shares held by VIG). In connection with
this transaction, the IFC was granted a put option for the sale of the Doverie share in the Group, beginning 23 December 2028.
64
Annual Financial Report 2022
Effect of changes in the scope of consolidation
Balance sheet Additions
thereof Aegon
Hungary
thereof Viennalife
(Türkiye)
Disposals
in EUR
'000
Intangible assets 425,296
318,931
49,882
0
Right-of-Use Assets 363
0
0
9
Investments 975,742
438,273
388,716
0
Financial instruments for unit- and index-linked life insurance 191,137
191,137
0
0
Reinsurers' share in underwriting provisions 3,752
3,752
0
0
Receivables (incl. tax receivables and advance payments out of income tax) 61,732
23,923
23,621
720
Other assets (incl. deferred tax assets) 55,526
14,347
28,957
41
Cash and cash equivalents 69,411
21,123
16,501
1,805
Underwriting provisions 736,740
329,844
406,896
0
Underwriting provisions for unit- and index-linked life insurance 191,137
191,137
0
0
Non-underwriting provisions 10,992
6,976
2,160
611
Liabilities (incl. tax liabilities out of income tax) 94,213
28,961
24,901
1,350
Other liabilities (incl. deferred tax liabilities) 45,623
27,932
13,718
0
The figures shown in the table above reflect the actual dates of first consolidation and deconsolidation, as indicated in the
section Changes in the scope of consolidation on page 62.
Contribution to result before taxes in reporting period Additions
thereof Aegon
Hungary
thereof Viennalife
(Türkiye)
Disposals
in EUR '000
Net earned premiums – retention 431,293
301,436
129,858
0
Financial result excl. result from shares in at equity consolidated companies 138,405
25,701
123,695
247
Other income 5,456
4,553
901
0
Expenses for claims and insurance benefits – retention -352,908 -160,575 -192,333 4
Acquisition and administrative expenses -134,154 -89,377 -45,712 8
Other expenses -114,759 -104,187 -10,095 -38
Result before taxes* -26,667 -22,449 6,314
221
*
The result before taxes includes impairments of insurance portfolios and the customer bases of AEGON Hungary (EUR 33,639,000) and Vienna Life Türkiye (EUR 3,578,000).
Inclusion of the first-time consolidated companies retrospectively to 1 January 2022 would not cause any material changes
in balance sheet items. Inclusion of the first-time consolidated companies retrospectively to 1 January 2022 would increase
the Group result before taxes and non-controlling interests by 2.38% (not including any consolidation effects).
The number of employees increased by 2,670 due to the changes in the scope of consolidation.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
65
SEGMENT REPORTING
OPERATING SEGMENTS
The operating segments were determined in accordance with IFRS 8 Operating segments based on internal reporting to
the principal decision-maker. The individual countries, in which VIG Insurance Group operates, were identified as operating
segments. The VIG Holding Managing Board, as principal decision-maker, regularly evaluates earning power based on
these segments and decides on the allocation of resources to them. The focus on countries is also reflected in the country
responsibilities of the members of the VIG Holding Managing Board.
The countries Estonia, Latvia and Lithuania are combined in the Baltic States operating segment, and Albania and Kosovo
are combined in the Albania incl. Kosovo operating segment when reporting to the Managing Board.
REPORTABLE SEGMENTS
Change of reportable segments
Every 5 years, the Managing Board prepares and approves the detailed medium-term strategic orientation of VIG Insurance
Group. The Group’s strategic orientation until 2025 was established in financial year 2021. When the composition of the
Managing Board was changed in financial year 2020, the reportable segments that were previously published were evalu-
ated and modified accordingly when the 2025 strategy was established.
Determination
The reportable segments were determined using the aggregation criteria in IFRS 8.12 and IFRS 8.14 and the quantitative
thresholds defined in IFRS 8.13.
This led to the following segments being specified as reportable segments:
• Austria (incl. the Wiener Städtische branches in Slovenia and Italy),
• Czech Republic,
• Poland,
• Extended CEE,
• Special Markets and
• Group Functions (incl. the VIG Holding branches in Sweden, Norway and Denmark and VIG Re branches in Germany
and France).
EXTENDED CEE
The Extended CEE reportable segment includes the operating segments of Albania incl. Kosovo (a branch of an Albanian
company is located in Kosovo), the Baltic states, Bosnia-Herzegovina, Bulgaria, Croatia, Hungary, Moldova, North
Macedonia, Romania, Serbia, Slovakia and Ukraine. The segment was aggregated in accordance with the aggregation
criteria in IFRS 8.14 and was not reported in an “all other segments” in accordance with IFRS 8.16 in spite of falling below
the thresholds.
SPECIAL MARKETS
The Special Markets reportable segment corresponds to the “all other segments” category in IFRS 8.16 and includes
Germany, Georgia, Liechtenstein and Türkiye.
66
Annual Financial Report 2022
GROUP FUNCTIONS
VIG Insurance Group is an international insurance group operating in Central and Eastern Europe. The Managing Board
accordingly manages the insurance business separate from the coordination functions in the individual countries. As a result,
only the companies related to the insurance business are included in the individual operating segments. That means that
companies that
do not distribute or assist in the distribution of insurance products,
perform loss assessments or claims handling, or
operate as service companies for the Group,
are included in the Group Functions reportable segment, not in the country where they have their registered office.
Specifically, this means the Group Functions segment includes VIG Holding, VIG Re, Wiener Re, VIG Fund, corporate IT
service providers, asset management companies, pension funds and intermediate holding companies, among others.
BASIS OF THE REVENUES OF THE REPORTABLE SEGMENTS
The scope of business operations includes private and corporate customer insurance business. The range of products
includes, among other things, motor third party liability and own damage, accident, third party liability, fire and natural
hazards, and travel insurance.
A large number of life and health insurance products are offered for individuals and groups. These include, for example,
supplementary health insurance, nursing care insurance, endowment insurance, term life insurance and investment-
oriented products. In accordance with the cornerstones of VIG Insurance Group, products are sold through all distribution
channels in all markets. This means that insurance products are distributed, among others, by sales employees, banks,
brokers and agents.
VIG Holding primarily focuses on managerial tasks for VIG Insurance Group. It also operates as a reinsurer within VIG
Insurance Group and in the international corporate business. The Group’s own reinsurance company, VIG Re, is a
successful provider of reinsurance products for both insurance companies of VIG Insurance Group and for external partners.
Information on major customers
VIG Insurance Group does not depend to a great extent on one single customer, as defined in IFRS 8.34. The 10 largest
customer groups are responsible for 2.2% of the premiums written by the Group. Corporate customers that are under
common control according to the information available to VIG Insurance Group are combined into customer groups.
GENERAL DISCLOSURES
Like transactions with third parties, transfer prices between reportable segments are determined using market prices.
Intragroup transactions between segments are eliminated in the consolidation column. The only exceptions are dividends
and intercompany profits, which are eliminated in each reportable segment.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
67
PERFORMANCE MEASUREMENT FOR REPORTABLE SEGMENTS
A variety of performance indicators are used to determine the financial performance of the reportable segments. The IFRS
Group operating result is used as an indicator in all cases. In the interests of comparability, the income statement by re-
portable segments is appropriately reconciled with the consolidated income statement and only the main items are
presented. The same applies to the balance statement by segments and consolidated balance sheet.
CONSOLIDATED BALANCE SHEET BY REPORTABLE SEGMENT
Assets Austria Czech Republic Poland Extended CEE
31.12.2022
31.12.2021
31.12.2022
31.12.2021
31.12.2022
31.12.2021
31.12.2022
31.12.2021
in EUR '000
Intangible assets 570,894
548,040
516,377
506,739
171,011
160,038
704,847
483,013
Right-of-Use Assets 69,033
71,190
62,838
57,646
6,564
7,480
32,876
33,661
Investments 19,558,207
22,891,500
3,120,396
3,187,915
1,384,316
1,353,830
4,910,682
4,687,186
Financial instruments for unit- and
index-linked life insurance 4,132,350
5,219,135
429,409
490,766
588,346
698,849
1,072,944
1,044,657
Reinsurers' share in underwriting
provisions
549,856
327,852
186,264
166,928
127,458
119,083
221,277
177,381
Receivables 793,143
705,701
188,292
168,469
266,758
225,045
625,766
547,882
Tax receivables and advance payments
out of income tax 7,452
9,134
19,483
10,290
6,839
2,942
4,079
1,522
Deferred tax assets 104,435
3,636
279,514
233,419
12,079
4,584
94,447
27,432
Other assets 77,973
87,751
170,049
169,442
12,194
5,583
81,468
68,736
Cash and cash equivalents 454,352
438,989
44,017
141,943
29,560
32,946
199,288
237,626
Total 26,317,695
30,302,928
5,016,639
5,133,557
2,605,125
2,610,380
7,947,674
7,309,096
Assets Special Markets Group Functions Total
31.12.2022
31.12.2021
31.12.2022
31.12.2021
31.12.2022
31.12.2021
in EUR '000
Intangible assets 40,749
4,385
80,867
41,954
2,084,745
1,744,169
Right-of-Use Assets 4,641
489
2,711
2,882
178,663
173,348
Investments 1,351,389
798,307
2,015,363
1,891,052
32,340,353
34,809,790
Financial instruments for unit- and index-linked life insurance 930,909
1,063,444
10,171
8,480
7,164,129
8,525,331
Reinsurers' share in underwriting provisions 165,600
98,982
712,172
674,379
1,962,627
1,564,605
Receivables 141,650
92,982
326,066
327,109
2,341,675
2,067,188
Tax receivables and advance payments out of income tax 2,918
1,543
133,010
109,622
173,781
135,053
Deferred tax assets 11,851
3,039
67,563
39,337
569,889
311,447
Other assets 7,594
6,061
49,902
53,320
399,180
390,893
Cash and cash equivalents 90,325
105,523
1,241,428
1,499,306
2,058,970
2,456,333
Total 2,747,626
2,174,755
4,639,253
4,647,441
49,274,012
52,178,157
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Annual Financial Report 2022
Liabilities and shareholdersʾ equity Austria Czech Republic Poland Extended CEE
31.12.2022
31.12.2021
31.12.2022
31.12.2021
31.12.2022
31.12.2021
31.12.2022
31.12.2021
in EUR '000
Subordinated liabilities 339,160
339,160
22,806
22,126
0
0
0
0
Underwriting provisions 19,907,121
21,919,592
3,031,752
3,041,097
1,420,734
1,346,705
4,938,135
4,353,673
Underwriting provisions for unit- and
index-linked life insurance 4,010,889
5,059,871
310,996
335,134
572,193
683,030
1,072,092
1,046,414
Non-underwriting provisions 402,220
611,799
25,987
21,954
14,316
15,203
76,979
68,258
Liabilities excl. Subordinated liabilities 698,263
699,073
529,549
464,175
189,609
169,488
470,920
403,293
Tax liabilities out of income tax 77,725
127,999
345
88,951
0
0
3,009
4,012
Deferred tax liabilities 20,490
169,728
6,110
5,872
692
7,947
8,239
21,670
Other liabilities 48,747
59,838
4,152
3,326
21,184
17,470
43,904
42,183
Subtotal 25,504,615
28,987,060
3,931,697
3,982,635
2,218,728
2,239,843
6,613,278
5,939,503
Liabilities and shareholdersʾ equity Special Markets Group Functions Total
31.12.2022
31.12.2021
31.12.2022
31.12.2021
31.12.2022
31.12.2021
in
EUR '000
Subordinated liabilities 0
0
1,384,400
1,100,000
1,746,366
1,461,286
Underwriting provisions 1,558,093
956,176
1,132,035
928,984
31,987,870
32,546,227
Underwriting provisions for unit- and index-linked life insurance 926,369
1,055,864
10,171
8,480
6,902,710
8,188,793
Non-underwriting provisions 18,971
21,597
159,232
151,378
697,705
890,189
Liabilities excl. Subordinated liabilities 133,519
76,146
1,166,515
1,088,105
3,188,375
2,900,280
Tax liabilities out of income tax 10,810
3,913
19,630
18,507
111,519
243,382
Deferred tax liabilities 10,073
336
31,814
13,331
77,418
218,884
Other liabilities 652
630
9,226
7,721
127,865
131,168
Subtotal 2,658,487
2,114,662
3,913,023
3,316,506
44,839,828
46,580,209
Shareholders' equity 4,434,184
5,597,948
Total 49,274,012
52,178,157
I
ntrasegment transactions have been eliminated from the amounts indicated for each reportable segment. As a result, the
segment assets and liabilities cannot be netted to determine the segment shareholders’ equity.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
69
CONSOLIDATED INCOME STATEMENT BY REPORTABLE SEGMENT
Austria Czech Republic Poland Extended CEE
2022
2021
2022
2021
2022
2021
2022
2021
in EUR '000
Premiums written – gross 4,138,384
4,048,443
2,122,121
1,864,939
1,352,881
1,279,791
3,593,244
2,886,733
Net earned premiums – retention 3,314,834
3,242,491
1,575,086
1,399,805
1,018,401
983,029
2,742,749
2,200,684
Financial result excl. result from
shares in at equity consolidated
companies 556,682
580,101
67,602
70,979
19,549
23,946
128,186
130,089
Income from investments 859,778
762,544
124,887
105,867
45,175
41,614
213,920
170,481
Expenses for investments and
interest expenses -303,096
-182,443
-57,285
-34,888
-25,626
-17,668
-85,734
-40,392
Result from shares in at equity
consolidated companies 17,728
23,106
0
1,139
0
0
0
0
Other income 20,554
27,740
26,630
30,346
20,203
9,552
56,810
53,416
Expenses for claims and insurance
benefits – retention -2,947,444
-2,919,325
-870,678
-828,780
-696,340
-671,220
-1,790,014
-1,504,948
Acquisition and administrative
expenses -692,433
-691,773
-535,436
-428,260
-273,950
-241,084
-758,823
-572,538
Other expenses -20,511
-27,685
-61,310
-58,332
-35,931
-33,678
-202,379
-118,122
Business operating result 249,410
234,655
201,894
186,897
51,932
70,545
176,529
188,581
Impairments of goodwill 0
0
0
0
-184
0
-26,177
0
Impairments of intangible assets
excluding goodwill 0
0
0
0
0
-688
-37,639
0
Result before taxes 249,410
234,655
201,894
186,897
51,748
69,857
112,713
188,581
Taxes -10,824
-76,022
-39,858
-37,828
-11,552
-10,492
-32,329
-31,995
Result for the period 238,586
158,633
162,036
149,069
40,196
59,365
80,384
156,586
70
Annual Financial Report 2022
Special Markets Group Functions Consolidation Total
2022
2021
2022
2021
2022
2021
2022
2021
in EUR '000
Premiums written – gross 846,187
531,686
2,297,825
1,965,017
-1,791,400 -1,574,043 12,559,242
11,002,566
Net earned premiums – retention 501,294
325,866
1,756,143
1,554,110
2,381
-352 10,910,888
9,705,633
Financial result excl. result from
shares in at equity consolidated
companies 152,544
35,641
-141,058 -229,602 -4,558 -4,136 778,947
607,018
Income from investments 59,144
35,585
145,503
104,889
-88,946 -61,460 1,359,461
1,159,520
Expenses for investments and
interest expenses 93,400
56
-286,561 -334,491 84,388
57,324
-580,514 -552,502
Result from shares in at equity
consolidated companies 0
0
559
627
0
0
18,287
24,872
Other income 43,894
29,733
20,056
16,660
-2,288 -1,658 185,859
165,789
Expenses for claims and insurance
benefits – retention -452,429 -228,933 -1,143,812 -986,010 -11,319 2,655
-7,912,036 -7,136,561
Acquisition and administrative
expenses -115,376 -65,709 -551,907 -536,873 -2,540 -591 -2,930,465 -2,536,828
Other expenses -76,947 -58,744 -41,217 -29,742 16,815
8,401
-421,480 -317,902
Business operating result 52,980
37,854
-101,236 -210,830 -1,509 4,319
630,000
512,021
Impairments of goodwill 0
0
0
0
0
0
-26,361 0
Impairments of intangible assets
excluding goodwill -3,578 0
0
0
0
0
-41,217 -688
Result before taxes 49,402
37,854
-101,236 -210,830 -1,509 4,319
562,422
511,333
Taxes -17,129 -11,550 13,561
44,548
0
0
-98,131 -123,339
Result for the period 32,273
26,304
-87,675 -166,282 -1,509 4,319
464,291
387,994
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
71
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
FINANCIAL INSTRUMENTS (INCL. PROPERTY AND OTHER INVESTMENTS)
The Group invests in fixed-income securities (bonds, loans/credits), shares, property, participations and other investments,
taking into account the overall risk position and the investment strategy provided for this purpose.
The investment strategy is laid down in the investment guidelines for each of the insurance companies. Compliance is
continuously monitored by the Asset Management and Asset Risk Management departments and by the Internal Audit
department on a sample basis. Investment guidelines are laid down centrally and must be followed by all VIG Insurance
Group companies. When determining exposure volumes and limits as part of establishing the strategic orientation of
investments, the risk inherent in the specified categories and market risks are of fundamental importance.
The investment strategy principles may be summarised as follows:
• VIG Insurance Group practices a conservative investment policy designed for the long term.
• VIG Insurance Group focuses on its asset mix as a way to ensure that cash flows match its long-term liability profile and
to create sustainable increases in value through the use of correlation and diversification effects of the individual asset
classes.
• Investment management depends on the asset class in question or on the objective within asset classes and is
performed internally or by an outside manager.
• The currency profile of the investments should match as closely as possible the obligations to policyholders and other
liabilities (currency matching).
• Risk management for securities is aimed at providing a transparent view of the risk exposure arising from price, interest-
rate and currency fluctuations as they affect profitability and the value of investments, and at limiting these risks. A limit
system is used to limit the risks.
• Market developments are monitored continuously and the structure of the portfolio is actively managed, if necessary.
The investment portfolio (with the look-through approach applied to consolidated institutional funds) includes holdings of
around 69.28% (70.25%) in bonds and around 6.16% (5.79%)
in loans. The share in equities is around 3.53% (5.11%), in
property around 9.56% (8.02%), in participations around 1.58% (1.49%) and in other around 9.89% (9.34%), in all cases
based on the book value of the total investment portfolio.
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Composition of investments (book values) 31.12.2022
31.12.2021
in EUR '000
Property 3,128,977
2,850,588
Shares in at equity consolidated companies 287,960
276,913
Loans 2,119,428
2,156,064
Loans 1,306,237
1,273,633
Reclassified loans 91,834
106,677
Bonds classified as loans 721,357
775,754
Other financial assets 25,555,212
28,653,998
Financial assets held to maturity - bonds 2,278,932
2,255,318
Financial assets reclassified as held to maturity - bonds 155,858
302,402
Financial assets available for sale 22,915,672
25,849,069
Bonds 20,413,191
22,305,212
Shares and other participations
1
613,136
770,933
Investment funds 1,889,345
2,772,924
Financial assets recognised at fair value through profit and loss
2
204,750
247,209
Other investments 1,248,776
872,227
Bank deposits 1,157,148
783,730
Deposits on assumed reinsurance business 91,611
88,480
Other 17
17
Total 32,340,353
34,809,790
1
includes shares in non-consolidated subsidiaries and other participations of EUR 254,714,000 (EUR 279,516,000)
2
including held for trading
Property
The portfolio had a book value of EUR 3,129.0 million as of 31 December 2022 (fair value: EUR 5,125.1 million) and a book
value of EUR 2,850.6 million as of 31 December 2021 (fair value: EUR 4,682.1 million).
The portfolio of directly held assets and assets held in the form of participations is used primarily to create highly inflation-
resistant long-term positions for the insurance business, and to create hidden reserves. The property portfolio represents
9.56% (8.02%) of the total investment portfolio.
The following table shows the investments as of 31 December 2022 and 31 December 2021, broken down by type of use
for the Austria and Group Functions reportable segments and the totals for all other segments.
Use of property in % of the property portfolio 31.12.2022
31.12.2021
Austria 66.27
65.40
Owner-occupied 5.39
6.29
Investment property 60.88
59.11
Group Functions 18.23
19.57
Owner-occupied 1.11
1.22
Investment property 17.12
18.35
Other segments 15.50
15.03
Owner-occupied 8.92
9.06
Investment property 6.58
5.97
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Shares in at equity consolidated companies
Shares in at equity consolidated companies had a book value of EUR 288.0 million as of 31 December 2022 and a book
value of EUR 276.9 million as of 31 December 2021. Shares in at equity consolidated companies therefore represented
0.89% (0.80%) of the book value of the total investment portfolio as of 31 December 2022.
Loans and other investments
Loans and other investments had a book value of EUR 3,368.2 million as of 31 December 2022 and a book value of
EUR 3,028.3 million as of 31 December 2021. Investments in loans are less important in the CEE region. A portfolio analysis
and maturity structure of loans are presented in Note 2.3. Loans and other investments starting on page 102.
Bonds
Bonds represented 69.28% (70.25%) of total investments as of 31 December 2022. VIG Insurance Group manages its
bond portfolio using estimates of changes in interest rates, spreads and credit quality, taking into account limits related to
individual issuers, credit quality, maturities, countries, currencies and issue volume. In the investment model, the bonds
serve primarily to ensure stable earnings over the long term. Derivative products are only used to reduce risks or make
efficient portfolio management easier. Relevant investment guidelines expressly govern the use of derivatives for bond
portfolios managed by third parties such as investment funds.
Shares
As of 31 December 2022, share investments (including those contained in the funds) represented 3.53% (5.11%) of the
book value of the total investment portfolio. In accordance with the investment guidelines for Austria, management is carried
out using a top-down approach, subject to the constraint that diversification be used to minimise the market risk of the
shares. The overall proportion of shares is very small for companies of VIG Insurance Group in the CEE region.
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RISK MANAGEMENT
VIG Insurance Group’s core competence is dealing pro
fessionally with risk. The insurance business consists of consciously
assuming diverse risks and managing them profitably. One of the primary responsibilities of risk management is to ensure
that the obligations assumed under insurance policies can be satisfied at all times.
In general, all insurance companies are responsible for managing their own risks. The corporate Risk Management depart-
ment of VIG Holding provides guidelines in all major areas for these companies. The requirements set in the investments
and reinsurance areas are particularly strict.
The primary requirement for effective risk management is a risk management system that is consistent throughout the
Group and a risk policy and risk strategy set by management. The objective of such risk management is not complete
avoidance of risk but rather a conscious acceptance of desired risks and the implementation of measures to monitor and
possibly even reduce existing risks based on economic factors. The risk-return ratio is therefore a key measure that must
be optimised in order to guarantee adequate security for the policyholder and the insurer itself while giving due consideration
to the need to create value.
Risk management responsibilities in VIG Holding are bundled together in independent organisational units, and through a
well-established risk and control culture, each individual employee contributes to successful management of risk.
Transparent, verifiable decisions and processes within a company are very important aspects of its risk culture.
Risk strategy
The strategic orientation of the Company is based on a business strategy, capital strategy and a comprehensive risk strategy.
The risk strategy specifies appropriate risk management measures for significant risks and is based on the following prin-
ciples that are applicable Group-wide:
ACCEPTED RISKS
• A sustainable portion of all risks that have a direct connection to the insurance business that is conducted are accepted
(underwriting risks, market risks).
RISKS THAT ARE NOT ACCEPTED
• Risks from the insurance business are not accepted if they cannot be adequately measured. This includes, for example,
liability insurance for genetic engineering.
• With respect to investments, risks are not accepted if insufficient know-how is available to measure the risks, e.g.
weather derivatives or forward transactions for foodstuffs, or if they could generate potentially unlimited losses.
RISKS ACCEPTED WITH RESTRICTIONS
• Operational risks must be avoided as far as possible, but have to be accepted to a certain extent as they cannot be
fully excluded, or the costs for avoiding them exceed the expected losses.
• A conservative approach is used for investments.
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RISK-MINIMISING MEASURES
• Establish functional risk governance by maintaining and promoting a high level of risk awareness.
• Reinsurance is a key instrument for hedging against large losses (tail risks), particularly in the property and casualty
area.
• Limit market risk taking into account underwriting obligations.
• Observe and act in accordance with the prudent businessman rule in connection with investments.
Organisation of the risk management system
The risk management system is well integrated into VIG Holding’s organisational structure. The following chart shows the
units that play an important role in the risk management system.
MANAGING BOARD
The Managing Board as a whole is responsible for the risk management system, in particular for the following areas:
• Set up and promote the risk management system
• Define and communicate the risk strategy, including risk tolerances and risk appetite
• Approve corporate risk management guidelines
• Take the risk situation into account in strategic decisions
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Both the Enterprise Risk Management and Asset Risk Man
agement units report directly to Managing Board member Liane
Hirner. They are assisted by the Digitalisation, Finance and Risk department, which also reports to Managing Board member
Liane Hirner and is where the Solvency II reporting system is organised.
RISK COMMITTEE
The VIG Holding Managing Board established the Risk Committee to ensure regular discussions of current matters relating
to risk management across functional areas within the organisation and an exchange of information on the risk situation
between the members of the committee and the Managing Board. The Risk Committee meetings take place at least
quarterly and are chaired by the Managing Board member responsible for this area. The Risk Committee reports to the
Managing Board after its meetings.
ENTERPRISE RISK MANAGEMENT
The department reports to Managing Board member Liane Hirner. The management of the department performs the risk
management function required under Solvency II at the Group and solo level.
The main responsibilities of the department include determining the Group’s overall risk profile 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. Calculation of the solvency capital requirement during the year, analysis of risk-
bearing capacity using proprietary analysis tools and reviewing the internal control system are other important activities
performed by the department.
The department also assists the Managing Board with updating the corporate risk strategy, improvements to the risk
organisation and further corporate risk management topics.
ASSET RISK MANAGEMENT
The department reports to Managing Board member Liane Hirner. The primary responsibility of the department is to analyse,
assess and monitor risks associated with investments, in particular with respect to the VIG Insurance Group’s solvency
result and financial result. For this purpose, the department specifies Group-wide requirements for risk assessment and
implements a central system for investment management and risk monitoring. The department is also responsible for
maintaining an internal rating approach.
ASSET MANAGEMENT (INCL. REAL ESTATE)
The department reports to Managing Board member Gerhard Lahner. One of the main responsibilities of the department is
to define a strategic orientation for the investments of each insurance company and for VIG Insurance Group as a whole,
and to specify an investment strategy and investment process aimed at ensuring that current income is as high as possible,
but also as secure as possible, while simultaneously taking advantage of opportunities to increase the value of investments.
Guidelines and limits are used to manage investments. Regular reports are also provided for investments, limits and income.
ACTUARIAL DEPARTMENT
The department reports to Managing Board member Peter Thirring. The management of the department performs the
Actuarial function required by Solvency II. The department is therefore responsible, in particular, for the duties related to the
Actuarial function. The Actuarial department also calculates the embedded value for the life and health insurance businesses
and prepares profitability analyses and company valuations. The department also assists actuarial collaboration and
functional networking.
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REINSURANCE
The department reports to Managing Board member Peter Höfinger. The department coordinates and assists all companies
in 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. The department also administers
Group-wide reinsurance programmes in the non-life lines of business. The primary objective is to create a safety net to
provide continuous protection for all of the companies in VIG Insurance Group against the negative effects of catastrophes,
individual large losses and negative changes in entire insurance portfolios.
PLANNING AND CONTROLLING
The department is an important part of the integrated risk management approach and reports to Managing Board member
Hartwig Löger. The department coordinates business planning over a 3-year horizon. The standardised reports include key
figure and variance analyses for planning, forecasts and ongoing performance of VIG Holding and other insurance
companies. Regular monthly premium reports, quarterly reports for each company (aggregated at the country and VIG
Insurance Group level) and cost reports are prepared.
VIG CORPORATE IT
The Corporate IT department reports to Managing Board member Gerhard Lahner. The department is responsible for IT
management at the VIG Insurance Group level (IT strategy, IT governance, IT security, IT Group projects, etc.), for assisting
companies in VIG Insurance Group with large IT projects, and for developing Group-wide guidelines and common standards.
TREASURY INCL. ASSET LIABILITY MANAGEMENT
The department reports to Managing Board member Gerhard Lahner. The observation, measurement and optimisation of
future cash flows on the asset and liabilities sides are the main responsibilities of the Asset Liability Management department.
It is also responsible for the exchange of knowledge and improvements in the Group in this area.
INTERNAL AUDIT
The department reports to the Managing Board. Managing Board Chairwoman Elisabeth Stadler is the contact person in
the Managing Board. The Internal Audit department systematically monitors operating and business processes, the internal
control system of all operational business areas, including compliance with legal requirements, and the functionality and
adequacy of risk management. The department operates continuously and reports directly to the Managing Board. The
management of the department performs the Internal Audit function required by Solvency II.
Risk management processes
Many risk management processes have been established in the individual areas of the risk management system to cover
the entire risk management cycle from risk identification to risk assessment, risk control and risk monitoring. These
processes are governed by a number of internal guidelines. This ensures that VIG Insurance Group’s risk exposure is
appropriately recorded and taken into account when business decisions are made.
RISK IDENTIFICATION
The risk management process begins with the identification of risks. This is performed using a standardised process that
is supplemented by ad hoc analyses. A comprehensive reporting process ensures that newly identified risks and the effects
of extraordinary events are appropriately included in the risk profile.
RISK ASSESSMENT
A number of assessment methods are used to assess identified risks. Assessment is primarily based on internal models
and the standard formula and is performed annually and during the year. If the standard formula is used for assessment,
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Annual Financial Report 2022
an appropriateness check is also performed. The total
risk is determined by aggregating the assessed risks, taking into
account diversification effects between the risks. The results of the own risk and solvency assessment, the embedded value
for the life and health insurance businesses, findings from the S&P capital model and value-at-risk calculations for the
investments area are also taken into account in the risk assessment.
RISK CONTROL
The risk strategy, planning, reinsurance programme and risk-bearing capacity are the most important elements of risk
control. The Managing Board reviews the risk strategy each year and makes any modifications needed. The Enterprise Risk
Management department assists the Managing Board with this.
The Planning and Controlling department is responsible for performance of an annual planning process and subsequently
for monitoring day-to-day business development of the insurance companies of VIG Insurance Group. Regular reports are
used for this purpose, including variance analyses and forecast accounts for the financial year. The planning horizon is three
years. The planning data is used in Own Risk & Solvency Assessment (ORSA) and forms a starting basis for calculating
future expected solvency.
The Reinsurance department coordinates the Group-wide reinsurance programme and manages the annual renewal
process for natural catastrophe coverage. The Enterprise Risk Management department assists the Reinsurance depart-
ment in validating the external natural catastrophe models used and evaluating the effectiveness of reinsurance coverage
using the internal non-life model.
RISK MONITORING
The solvency corridor defined at the Group level and the Group-wide limit system for risk-bearing capacity form the basis
for continuous monitoring of the solvency situation of the Group and subsidiaries.
Compliance with the securities guidelines and key figures is also continuously checked and monitored. Monitoring is
performed by means of periodic fair value measurements, value-at-risk calculations and detailed sensitivity analyses and
stress tests and determining the solvency capital requirement during the year.
Liquidity risk is managed and monitored by matching the investment portfolio to insurance obligations. Operational and
strategic risks which might be caused by deficiencies or errors in business processes, controls and projects, or changes in
the business environment, are also continuously monitored by the internal control system.
Periodic risk monitoring is documented, for example, in the quarterly reports provided to the Managing Board following the
meetings of the Risk Committee and forms the starting point for any further analyses or corrective control measures.
Risk categories
Because of its activities, VIG Insurance Group is exposed to a large number of financial and non-financial risks. The overall
risk of VIG Insurance Group can be divided into the following risk categories:
MARKET RISK
Market risk is the risk of losses due to changes in market prices. Changes in value occur, for example, due to changes in
yield curves, share prices, exchange rates and the value of land and buildings and participations.
CREDIT RISK
Credit risk quantifies the potential loss due to a deterioration of the situation of a counterparty against which claims exist.
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UNDERWRITING RISKS
VIG Insurance Group’s core business consists of the transfer of risk from policyholders to the insurance company.
Underwriting risks in the areas of life insurance, health insurance and non-life insurance are primarily the result of changes
in insurance-specific parameters, such as loss frequency, loss amount or mortality, as well as lapse rates and lapse costs.
OPERATIONAL RISKS
Operational risks may result from deficiencies or errors in business processes, controls or projects caused by technology,
staff, organisation or external factors.
REPUTATION RISK
Reputation risk is the risk of negative changes in business due to damage to a company’s reputation.
LIQUIDITY RISK
This category includes the risk of VIG Insurance Group not having sufficient assets that can be liquidated at short notice to
satisfy its payment obligations.
STRATEGIC RISKS
Strategic risks can arise due to changes in the economic environment, case law, or the regulatory environment.
Managing significant risks
In addition to the risks in property and casualty insurance and real estate investments that are modelled using the partial
internal model, the following risks must be noted due to their great importance for VIG Insurance Group:
• the interest rate risk portion of market risk, which primarily results from sales of long-term guarantee products,
• the asset credit quality and default risk inherent in investments, which can be assigned to credit risk and indirectly to
market risk,
• the share price risk portion of market risk, which results from direct or indirect holdings (e.g. in investment funds) of
equities and non-consolidated participations,
• the currency risk portion of market risk, which results in particular from the high degree of involvement in the CEE
region, and
• life insurance lapse risk, which can occur due to an increase in cancellation rates.
MARKET RISK
VIG Insurance Group is exposed to market risk, that is, the risk of suffering losses as a result of changes to market parameters.
Interest rates, issuer spreads and share prices are the most relevant parameters for market risk. Ignoring investments held
for the account of and at the risk of policyholders, investments in insurance business consist largely of fixed-income securities.
The majority of these securities are denominated in euro and Czech koruna. Consequently, interest rate fluctuations and
exchange rate changes in these currencies primarily have an effect on the value of these financial assets.
The management of investments is aimed at providing coverage for insured risks that is appropriate for the insurance
business and the maturities of liabilities.
Depending on the purpose of the application, VIG Holding performs value-at-risk calculations for different sub-portfolios for
VIG Insurance Group. Confidence levels vary between 95.0% and 99.5%, and the holding period varies from 20 to 250 days.
Due to the nature of the portfolio, interest rate and spread components make the largest contributions to value-at-risk. As
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Annual Financial Report 2022
a plausibility check of the calculations, the value-a
t-risk for the most important sub-portfolios is determined using both the
parametric method described above and the historical calculation method.
The following table shows the value-at-risk (at a 99% confidence level) for financial assets that are measured as available
for sale or recognised at fair value through profit or loss (incl. held for trading).
Value-at-Risk 31.12.2022
31.12.2021
in EUR millions
10-day holding period 875.0
389.9
20-day holding period 1,237.5
551.5
60-day holding period 2,143.3
955.2
The increase in value-at-risk reflects the current interest rate trend.
Market risk is divided into interest rate, spread, share price, currency, real estate and concentration risk. Interest rates,
spreads and share prices are the most relevant parameters for market risk.
Interest rate risk
The main drivers of interest rate risk is the sizeabl
e portfolio of policies with guaranteed minimum interest rates, which
includes pension and endowment insurance, and the resulting investments. For existing life insurance policies, VIG
Insurance Group guarantees a minimum interest rate averaging around 1.83% p.a. (1.80% p.a.). If interest rates fall below
the guaranteed average minimum rate for a longer duration of time, VIG Insurance Group could find itself forced in the future
to use its capital to subsidise reserves for these products and consequently increase them through profit or loss as a result
of the adequacy test.
The embedded value in life and health insurance consists of the adjusted net assets at market value (ANAV) and the value
of the insurance portfolio (VIF). VIF is the present value of future profits (SPVFP), reduced by a risk margin. The SPVFP was
EUR 4,149,904,000 as of 31 December 2022. A 100 basis point drop in the yield curve would mean the SPVFP decreased
to EUR 3,709,152,000, which means the IFRS reserves are also adequate in this scenario. Also see the embedded value
sensitivity analysis on page 90.
Spread risk
Spread risk arises from all assets and liabilities wh
ose values depend on changes in the size of credit spreads over the
riskless yield curve. Duration and the creditworthiness of the debtor are the main factors determining the amount of spread
risk. Diversification and a uniform limit system for investments in fixed-interest instruments are used to limit this risk at the
portfolio level.
Share price risk
Among other things, share investments include partic
ipations in a number of Austrian companies and equity positions in
other companies whose shares trade primarily on the Vienna Stock Exchange or stock exchanges in the Eurozone or CEE
region. A deterioration of the current economic situation could result in the share portfolio losing value.
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Shares serve to increase earnings over the long term, provide diversification and compensate for long-term erosion in value
due to inflation. VIG Insurance Group assesses share price risk by considering diversification within the overall portfolio and
correlation with other securities exposed to price risk. Risk diversification within the share portfolio is mainly achieved by
geographic diversification primarily in the home markets of the Group and in the Eurozone. Share investments are
predominantly made by the Austrian companies.
Currency risk
To diversify its portfolio, the investment area also makes use of international capital markets and, to a very small extent,
foreign currencies. The high degree of involvement in the CEE region results in currency risks at the VIG Insurance Group
level in spite of matching local currency investments made at the local level.
Concentration risk
Internal guidelines and the limit system are used to keep concentrations within the desired safety margin. Consultation
across business lines provides for a comprehensive view of all significant risks.
CAPITAL MARKET SCENARIO ANALYSIS
This analysis is carried out for all insurance companies in VIG Insurance Group in order to check the risk-bearing capacity
of the investments.
The sensitivity shocks for the individual asset classes show the ranges of market value reductions for the most important
risk factors (credit risk, interest rate risk, liquidity risk) and the resulting effects on the net fair value of assets minus liabilities.
The scenarios combine these individual shocks to illustrate different capital market possibilities.
Scenarios 1 and 2 strongly reduce the fair value of shares, bonds and property at the same time. They show two different
combinations of market value reductions over the main asset classes.
Scenario 3 shows a credit shock affecting stock and bond markets, scenario 4 is based on a shock to equity securities
(including property), and scenario 5 shows an interest rate shock that has a large effect on the value of bonds and property.
All of the scenario calculations were performed using a ceteris paribus approach.
The following table shows the stress parameters and the effects on IFRS capital of each scenario on the respective dates
(not including deferred taxes, deferred profit participation or deferred mathematical reserve).
Reduction in market value 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 EUR millions) 6,052.1
4,079.2
4,540.3
4,343.4
5,107.3
4,231.7
In every scenario, the fair value of the assets is significantly higher than the value of the liabilities after stress.
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CREDIT RISK FROM INVESTMENTS
W
hen managing risks related to credit quality, a distinction must be made between liquid and tradable risks (e.g. exchange-
listed bonds) and bilateral risks, such as, for example, time deposits, OTC derivatives, loans, private placements and securities
accounts/depositories. The risk is monitored by means of ratings and limited by diversification limits at the portfolio level.
Consideration is only given to those issuers or contracting parties whose credit quality or reliability can be assessed by VIG
Insurance Group, whether on the basis of analyses performed by the Group, credit assessments/ratings from recognised
sources, provision of security (e.g. mortgages) or, to a certain extent, the possibility of recourse to reliable mechanisms for
safeguarding investments.
Under the investment guidelines, bond investments (which represent the largest share of investments) are made almost entirely
in the investment grade range. The goal is to achieve the greatest possible diversification among individual issuers, to avoid
accumulation risks, to ensure good average creditworthiness, to control foreign currency effects and to make the majority of
investments in mid to long-term maturities in order to reflect the maturity profile of the liabilities as efficiently as possible.
The book values of the investments as of 31 December 2022 are shown on page 72. Information on the securities and their
ratings is provided in Note 2.4 Other financial assets starting on page 104 of the notes to the consolidated financial statements.
Use of ratings
The “second best rating” method specified under Solv
ency II is used as a rating method. The latest (issue or issuer) rating
from each of the three major rating agencies is used to determine the second best rating.
If the latest rating is an issuer rating, and this rating cannot be directly used due to a difference in quality of the security (e.g.
senior unsecured debt rating and a lower tier 2 bond), the rating is adjusted downwards appropriately. The adjustment is
one notch down for lower tier 2 bonds and two notches down for upper tier 2 or tier 1 bonds.
This results in up to three valid ratings for each bond. These ratings are then ranked according to increasing probability of
default and the rating with the second-lowest probability of default taken as the “second best rating”. If the ratings in first and
second place have the same probability of default, these two ratings are the “second best rating”. In cases where a rating has
only been assigned by one rating agency, due to a lack of other information, this rating is used as the “second best rating”.
CREDIT RISK FROM REINSURANCE
VIG Insurance Group cedes a portion of assumed risks to reinsurance companies. This transfer of risk to reinsurers does
not, however, relieve VIG Insurance Group of its obligations to policyholders. VIG Insurance Group is exposed to the risk of
reinsurer insolvency. VIG Holding therefore designs its reinsurance programme carefully and monitors reinsurer rating
changes for VIG Insurance Group.
UNDERWRITING RISKS
Underwriting risks are divided into life insurance, non-life insurance and health insurance (incl. accident insurance) and are
managed by the Actuarial department. It subjects all insurance solutions to in-depth actuarial analysis covering all lines of
insurance business (life, health as well as property and casualty).
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The Actuarial function in the Actuarial department coordinates the Group-wide determination of underwriting provisions to
prepare the economic balance sheet in accordance with Solvency II.
Life underwriting risk and health underwriting risk similar to life
Life underwriting risk includes lapse risk, cost risk, disability risk, morbidity risk, longevity risk, mortality risk, disaster risk
and audit risk. The main risks in this area are lapse risk and cost risk, as well as biometric risks, such as life expectancy,
occupational disability, illness and the need for nursing care.
To account for these underwriting risks, VIG Insurance Group has formed provisions for future insurance payments. VIG
Insurance Group calculates its underwriting provisions using recognised actuarial methods and assumptions. These
assumptions include estimates of the long-term interest rate trend, returns on investments, the allocation of investments
between equities, interest-bearing instruments and other categories, net income participations, mortality and morbidity
rates, lapse rates and future costs. The companies of VIG Insurance Group monitor actual experience relating to these
assumptions and adjust their long-term assumptions where changes of a long-term nature occur.
To minimise lapse risk, VIG Insurance Group uses an effective complaint management department, qualified advisors and
customer loyalty programmes to increase customer satisfaction and avoid cancellations. Policyholder cancellation
behaviour is continuously monitored so that targeted measures can be taken if unfavourable changes occur .
The companies of VIG Insurance Group use regular analyses, targeted product design and detailed underwriting guidelines
to address these risks. A variety of reinsurance contracts also exist that help to reduce the general level of risk. A broadly
diversified product portfolio in all life and composite companies and a well-mixed customer base in the CEE region minimise
risk concentrations.
Non-life underwriting risk and health underwriting risk similar to non-life
Risk in the non-life sector is divided into premium risk, reserve risk, lapse risk and catastrophe risk. Property and casualty
underwriting risks are primarily managed using actuarial models for setting rates and monitoring the progress of claims, as
well as requirements for the assumption of insurance risks.
Health underwriting risk is primarily concentrated in the Austrian companies. In the CEE markets, motor third party liability
has a high volume compared to the other lines of business. This risk concentration was consciously accepted in order to
enter these markets. The strong market position and above-average growth prospects in the CEE region will help growth
in the other lines of business, thereby reducing the concentration in motor third party liability.
The environmental catastrophes that have been becoming increasingly common in recent years, such as floods, (hail)
storms, mudslides and landslides may have been brought about by general climate change. The number of claims caused
in this way may continue to rise in the future.
VIG Insurance Group forms provisions for claims and claims settlement expenses and regularly monitors them in order to
effectively cover the risk associated with the insurance business. This risk is also significantly reduced by ceding reinsurance.
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LIQUIDITY RISK
E
fficient asset liability management can be used to prevent liquidity shortages. Investments and obligations are analysed
regularly to identify liquidity needs. These analyses, together with clear investment requirements (limit systems) and a
conservative investment policy, help to appropriately manage liquidity risk. The Treasury department, incl. Asset Liability
Management, is responsible for the ongoing monitoring of cash flows and regular reporting on liquidity changes.
To ensure that every company continues to have adequate liquidity in the future, VIG Holding guidelines specify liquidity
management standards that must be observed Group-wide by every company. Among other things, these standards
require a regular examination of current and future cash inflows and outflows.
Underwriting liquidity analysis
A comparison of the expected payments from the insur
ance business for one year and freely disposable investments shows
that underwriting does not create any liquidity risk.
The expected payments were derived from the maturities of the mathematical reserve and the provision for outstanding
claims. Cash and cash equivalents and financial assets with no maturity or maturities of up to one year were defined as
freely disposable investments.
OTHER RISKS
Business activities result in other risks that are assessed and managed as part of risk management. These include, in
particular, operational risks, as well as reputation risks and strategic risks.
In addition, a comprehensive internal control system (ICS) ensures that adequate risk control infrastructure has been set up
for operational risks and is regularly checked for appropriateness and effectiveness. 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.
Aspects of the legal tax framework affecting earning
s
Changes to tax law may negatively affect the attractiveness of certain products that currently enjoy tax advantages. For
example, the introduction of laws to reduce the tax advantages of the VIG Insurance Group’s retirement benefit products
or other life insurance products could considerably diminish their attractiveness.
Regulatory environment
VIG Insurance Group is subject to domestic and foreign (insurance) supervisory regulations. These regulations govern such
matters as:
• Capital requirements of insurance companies and insurance groups
• Admissibility of investments as security for underwriting provisions
• Licences of the different insurance companies of VIG Insurance Group
• Marketing activities and the sale of insurance policies and
• Cancellation rights of policyholders.
Changes to the statutory framework may make restructuring necessary, thus resulting in increased costs.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
85
Developments in Central and Eastern Europe
The expansion and development of business operations in the countries of Central and Eastern Europe is a core component
of VIG Holding’s strategy. It has a very strong presence in these countries through its subsidiaries. The prescribed risk
guidelines ensure consistent risk management in all CEE countries in VIG Insurance Group.
Concentration risk
Concentration risk is due to the strategic partnership with Erste Group and VIG Insurance Group consciously accepts this
risk. Exposure is regularly assessed and monitored by the risk management processes that have been established.
Risks due to mergers and acquisitions
In the past, VIG Holding acquired directly and indirectly a number of companies in Central and Eastern Europe or acquired
participations in these companies. Mergers of subsidiaries are considered if the synergies that can be achieved outweigh
the benefits of multiple market presences.
Acquisitions and mergers often bring challenges in terms of corporate management, organisation, processes and financing,
such as:
• the need to integrate the infrastructure of the acquired or merged company, including management information
systems, and risk management and controlling systems,
• handling unsettled matters of a legal or regulatory nature and associated legal and compliance risks resulting from the
merger or acquisition,
• integration of marketing, customer support and product ranges,
• integration of different corporate and management cultures, and
• the alignment of business and reporting processes and consideration of Group requirements.
Sustainability risks
Events or changes in conditions in the environmental or social areas could potentially have a negative effect on the VIG
Group’s net assets, financial position and results of operations, as well as its reputation. These include, among others,
• climate change,
• potentially stricter requirements for sustainability in the area of environmental protection,
• political measures to promote sustainable investment, and
• stricter requirements for a sustainable social environment (labour law standards, occupational safety and working
conditions, compensation, etc.).
VIG Insurance Group implicitly includes sustainability risks in its regular risk management processes (e.g. ORSA).
An explicit assessment of sustainability risks is carried out regularly in VIG Insurance Group based on the Austrian Financial
Market Authority Guide for Managing Sustainability Risks. By doing so, key steps are taken towards the integration of
sustainability risks in existing risk management processes. Attention was also paid to the management of sustainability risks
in internal (risk management) guidelines.
A Group-wide list of explicitly sustainability-related risks was prepared in order to ensure a structured approach to the
identification and assessment of sustainability risks in VIG Insurance Group. This list of risks is being reviewed for
completeness and supplemented as necessary by the VIG insurance companies as part of a standardised, Group-wide
risk management process. The list thus also forms the basis for consideration in existing risk management processes that
deal with assessing, analysing and managing risks faced by the Group.
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Annual Financial Report 2022
The analysis of sustainability risk carried out in th
e reporting period showed that VIG Insurance Group sustainability risks
are currently mainly low to medium-level risks. These risks are nevertheless expected to become more relevant in the future,
due in part to the increasing importance of this topic.
Climate risks
Climate change and associated risks are one of the current sustainability issues. Although insurance companies have always
been concerned with potential losses due to natural risks, global warming is underscoring the urgency of this problem. The
main new risks are, in particular, a potential increase in the frequency and size of losses and the possibility of stricter
requirements and political measures related to climate change (e.g. expanded reporting, investment restrictions).
To meet these challenges, a VIG Insurance Group climate change strategy was approved in 2019 and slightly modified
again in financial year 2021. In addition to general principles for dealing with climate change, the climate change strategy
also provides guidelines for investments and insurance operating business. For example, VIG Insurance Group is completely
eliminating investments in the coal sector and has significantly limited insurance coverage for new coal mining and coal-
fired power plant projects. The complete climate change strategy is available on the website at www.vig.com/climate-
change-strategy
VIG Insurance Group greatly increased its underwriting know-how in previous years. Special scenario analyses have been
performed since 2019 to estimate how climate change will affect the frequency and size of losses and, therefore, the
insurance business in different sectors. The medium and long-term effects of climate change are also examined in the “Own
Risk and Solvency Assessment” (ORSA). The main focus is on potential extreme weather events, such as flooding,
earthquakes, storms and severe weather with hail. Current scientific studies are used to analyse the possible effects of
global warming of 1.5°C, 2.0°C and 3.0°C above pre-industrial levels. Natural disasters and their effects are modelled with
the help of external experts. The risk models used are constantly improved based on new data and findings, such as newly
built flood protection measures.
The scenario analyses show that, above all, flooding poses a significant climate change-related risk for the activities of VIG
Insurance Group. In addition to increased losses due to flooding, damage caused by severe hail and summer storms as a
result of climate change are also to be expected. While severe damage from hail concerns the motor own damage line of
business in particular, damage from flooding will occur primarily in the other property and casualty line of business.
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87
VIG Insurance Group is using its increased underwriting knowledge to purchase reinsurance for the risks it assumes.
The increased probability of extreme weather events will also have an impact on the support offered to corporate and large
customers. The support process begins with a careful analysis of the risk situation and protective measures that have
already been implemented. Here, not only is the natural disaster model considered, but also the circumstances at a local
level. The experts at RiskConsult use this analysis to develop individually tailored recommendations for further improving
the risk situation and preventing losses. The policy terms are based on this risk situation and in some cases insurance can
only be purchased once proposed measures have been implemented. Due to global warming, preventing losses due to
natural disasters is playing an increasingly important role in the underwriting process. As part of this process, more than
2,000 locations of operation are evaluated every year, which makes a significant contribution to making the economy more
resilient against natural disasters.
All known climate risks were included in the valuation of the assets and liabilities in these consolidated financial statements.
For more information, please refer to the storm and severe weather losses that occurred during the financial year and were
included in the balance sheet and income statement.
Macroeconomic risks
As a participant in the market, the business activities of VIG are influenced by the development of macroeconomic factors,
such as the rate of unemployment, GDP and inflation.
2022 saw a significant rise in inflation in almost all markets in which the VIG Insurance Group operates. Global economic
growth was also subdued by the ongoing COVID-19 pandemic and the Russia–Ukraine conflict. Inflation trends in individual
countries are being closely monitored by VIG and potential impacts are analysed using scenario analyses, enabling
appropriate responses to a changing environment to be taken.
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Annual Financial Report 2022
Risks related to the Russia–Ukraine conflict
The war between the Russian Federation and Ukraine be
gan on 24 February 2022 when Russian forces invaded Ukraine.
The further development of the conflict and potential further escalations resulting from this – i.e. sanctions and counter-
measures – could further exacerbate the implications on the financial markets and the economy in general. A number of
risks may materialise for the VIG Insurance Group as a result; these are being addressed and handled as part of our
sustainable risk management.
Dangers associated with the welfare of employees and the operating business activities (e.g. office infrastructure, energy,
communication, IT security) pose material, direct risks for VIG’s Ukrainian insurance companies.
In addition, at the VIG Insurance Group level, the volatility on the capital market fuelled by the conflict and the possibility of
further sanctions and their consequences for the economy in particular represent significant risks and may have an impact
on operating performance and business activities.
Business operations in Ukraine
V
IG Insurance Group is represented in the Ukrainian market by three insurance companies that held around EUR 140 million
in assets as of 31 December 2022. In the event of a complete loss of the Ukrainian operations, the VIG result before taxes
would be decreased by the net asset value after adjusting for currency effects, which amounts to approximately EUR 56
million as of the balance sheet date of 31 December 2022. The Ukraine CGU does not hold any intangible assets that are
subject to an impairment test in accordance with IAS 36.
The VIG insurance companies in Ukraine are mainly active in the western regions of the country, so business operations
have thus far only been directly impacted to a limited extent. The sanctions against Russia also show no noticeable impacts
on the operations of the Ukrainian companies. An increase in the number of green card insurance policies that were taken
out has been observed. The reason for this increase in the movement of refugees to neighbouring European countries.
As of the editorial deadline, the Ukrainian insurance companies have been able to maintain limited operations in spite of the
current 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
V
IG Insurance Group holds EUR 165.6 million in Russian government and corporate bonds for which there is currently no
active market. Due to the cessation of trading in these financial instruments in line with agreed sanctions, impairments were
recognised in connection with the exposure of VIG to Russian government and corporate bonds totalling EUR 84.1 million.
Ukraine hryvnia (UAH)
On 24 February 2022, the National Bank of Ukraine (NBU) published Resolution No. 18, which is intended to ensure the
continued operation of a stable banking system under applicable martial law. As part of this resolution the exchange rate
was pegged to the U.S. dollar.
In view of the change in the fundamental characteristics of the Ukrainian economy during the war and the strengthening of
the U.S. dollar against other currencies, the NBU devalued the country’s currency by 25% against the U.S. dollar on 21
July 2022.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
89
Risks related to the COVID-19 pandemic
In January 2023, the World Health Organization (WHO) announced that it is anticipating that COVID-19 will stop being
classified as a pandemic in 2023. Should – contrary to these expectations – the COVID-19 pandemic worsen once more,
the potential impacts this could have on capital markets and the insurance business cannot be estimated, but they could
have a negative effect on the net assets, financial position and results of operations of VIG Insurance Group. This includes,
in particular, risks related to possible fluctuations on bond and capital markets that were also observed in the early phase
of the COVID-19 pandemic.
In the area of reserves for incurred but not reported (IBNR) claims, additional reserves were included due to an increase in
expected late claim notifications and uncertainty about future developments. Of these reserves, EUR 30.1 million were
reversed in financial year 2022 due to the stabilisation of the situation. The adequacy of the underwriting provisions is
checked in detail as part of the liability adequacy test during preparation of the consolidated financial statements. The
comparison of the best estimate (after reinsurance) calculated based on the Solvency II principles with the IFRS provisions
(after reinsurance) showed a significant surplus. As before, the IFRS provisions can therefore be considered adequate.
Detailed information is available on page 80 in the risk report.
Portfolio changes in the life line of business
Portfolio changes in the life line of
business
Endowment insurance excl. risk
insurance
Risk insurance Annuity insurance
No. of policies
Amt. insured
No. of policies
Amt. insured
No. of policies
Amt. insured
Quantity
in EUR '000
Quantity
in EUR '000
Quantity
in EUR '000
As of 31.12.2021 1,893,964
20,598,971
2,239,733
156,721,713
506,858
12,137,142
Exchange rate differences 13,863
-52,440
-540
As of 1.1.2022 1,893,964
20,612,834
2,239,733
156,669,273
506,858
12,136,602
Changes in scope of consolidation 888,908
5,238,033
0
Additions 111,264
1,441,859
682,304
16,673,288
21,921
1,648,935
New business 111,264
1,254,343
682,304
15,985,293
21,921
1,370,897
Increases 187,516
687,995
278,038
Changes -5,097
221,837
-20,616
2,954,272
879
-51,721
Changes in additions 15,388
846,594
15,628
8,600,078
7,097
339,171
Changes in disposals -20,485
-624,757
-36,244
-5,645,806
-6,218
-390,892
Disposals due to maturity -92,754
-1,283,918
-151,587
-8,281,305
-18,608
-882,560
Due to expiration -67,408
-1,137,652
-144,430
-8,167,280
-17,366
-855,084
Due to death -25,346
-146,266
-7,157
-114,025
-1,242
-27,476
Premature disposals -89,753
-1,440,366
-395,089
-4,787,908
-21,180
-554,139
Due to non-redemption -3,314
-39,398
-31,630
-221,777
-518
-20,754
Due to lapse without payment -9,183
-146,964
-223,164
-2,607,346
-1,859
-89,027
Due to surrender -76,943
-1,194,770
-135,145
-1,726,977
-18,803
-351,674
Due to waiver of premium -313
-59,234
-5,150
-231,808
0
-92,684
As of 31.12.2022 1,817,624
20,441,154
2,354,745
168,465,653
489,870
12,297,117
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Annual Financial Report 2022
Portfolio changes in the life line of
b
usiness
Unit- and index-linked insurance Government sponsored pension plans Total
No. of policies
Amt. insured
No. of policies
Amt. insured
No. of policies
Amt. insured
Quantity
in EUR '000
Quantity
in EUR
'000
Quantity
in EUR '000
As of 31.12.2021 1,773,361
18,238,440
479,328
10,143,439
6,893,244
217,839,705
Exchange rate differences 216,068
-20,170 156,781
As of 1.1.2022 1,773,361
18,454,508
479,328
10,123,269
6,893,244
217,996,486
Changes in scope of consolidation 255,485
0
0
6,382,426
Additions 156,330
2,550,886
21,337
439,038
993,156
22,754,006
New business 156,330
2,424,348
21,337
214,764
993,156
21,249,645
Increases 126,538
224,274
1,504,361
Changes 2,644
-912,946 -2,167 4,281
-24,357 2,215,723
Changes in additions 9,024
721,050
496
138,733
47,633
10,645,626
Changes in disposals -6,380 -1,633,996 -2,663 -134,452 -71,990 -8,429,903
Disposals due to maturity -45,633 -578,924 -3,597 -58,433 -312,179 -11,085,140
Due to expiration -38,084 -517,579 -2,459 -47,147 -269,747 -10,724,742
Due to death -7,549 -61,345 -1,138 -11,286 -42,432 -360,398
Premature disposals -183,882 -2,171,432 -18,116 -477,521 -708,020 -9,431,366
Due to non-redemption -42,074 -186,200 -332 -6,474 -77,868 -474,603
Due to lapse without payment -56,800 -754,394 -785 -19,851 -291,791 -3,617,582
Due to surrender -82,293 -1,093,623 -16,999 -329,543 -330,183 -4,696,587
Due to waiver of premium -2,715 -137,215 0
-121,653 -8,178 -642,594
As of 31.12.2022 1,702,820
17,597,577
476,785
10,030,634
6,841,844
228,832,135
EMBEDDED VALUE SENSITIVITY ANALYSES FOR THE LIFE AND HEALTH INSURANCE BUSINESSES
The following tables show the sensitivities for changes in the assumptions used to calculate the embedded value for the life
and health insurance businesses and value of new business as of 31 December 2022:
Embedded value for the life and health insurance business
Austria/
Germany
Change
CEE
Change
Total
Change
in EUR '000
in %
in EUR '000
in %
in EUR '000
in %
Base value 2,860,401
1,918,065
4,778,465
Increase in yield curve 0.5% 253,968
8.9
856
0.0
254,825
5.3
Decrease in yield curve 0.5% -405,847 -14.2 -12,526 -0.7 -418,372 -8.8
Decrease in share and real estate values 25% as of the
reporting date -117,129 -4.1 -19,701 -1.0 -136,830 -2.9
Decrease in administrative expenses 10% 82,817
2.9
50,214
2.6
133,031
2.8
Decrease in lapse rates 10% 20,910
0.7
28,497
1.5
49,407
1.0
Decrease in mortality 5% for endowment and risk insurance 11,971
0.4
37,681
2.0
49,652
1.0
Decrease in mortality 5% for annuities -12,048 -0.4 -770 0.0
-12,818 -0.3
No volatility adjustment -142,421 -5.0 -11,490 -0.6 -153,911 -3.2
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Value of new business Austria/
Germany
Change
CEE
Change
Total
Change
in EUR '000
in %
in EUR '000
in %
in EUR '000
in %
Base value 33,702
56,860
90,562
Increase in yield curve 0.5% -988
-2.9
3,128
5.5
2,140
2.4
Decrease in yield curve 0.5% -3,321
-9.9
-2,971
-5.2
-6,293
-6.9
Decrease in administrative expenses 10% 1,915
5.7
6,912
12.2
8,827
9.7
Decrease in lapse rates 10% 1,915
5.7
1,334
2.3
3,248
3.6
Decrease in mortality 5% for endowment and risk insurance 1,396
4.1
9,529
16.8
10,925
12.1
Decrease in mortality 5% for annuities -555
-1.6
2
0.0
-553
-0.6
No volatility adjustment 446
1.3
-1,287
-2.3
-841
-0.9
The sensitivities are based on the same management rules and policyholder behaviour as the base case. Each sensitivity
is calculated separately. If two events occur simultaneously, the effect is not necessarily equal to the sum of the individual
sensitivities.
Provisions in the property and casualty line of business
GENERAL INFORMATION
If claims are asserted by or against policyholders, all amounts that a company in the property and casualty line of business
pays or expects to have to pay to the claimant are referred to as losses, and the costs of investigating, adjusting and
processing these claims are referred to as claims settlement expenses. The companies in VIG Insurance Group have formed
provisions by lines of business, extent of cover and year to pay for losses and claims settlement expenses due to claims
under property and casualty insurance policies.
Losses and claims settlement expenses can be divided into two categories: reserves for known but still outstanding claims
(RMNS), and reserves for claims that have been incurred but have not yet been reported, or the correct amount has not
been reported (IBNR, IBNER). Provisions for outstanding claims are based on estimates of future payments, including claims
settlement expenses, for these claims. These estimates are made on a case-by-case basis in accordance with facts and
circumstances ascertainable at the time the provision is formed.
The estimates reflect the well-founded judgement of the companies of VIG Insurance Group adjusters based on general
practices for forming insurance provisions and a knowledge of the nature and value of each type of claim. These provisions
are adjusted regularly during normal processing and represent the expected eventual costs necessary to finally settle all
pending reported claims, taking into account inflation, interest rates and other social and economic factors that could affect
the amount of provisions that are required.
Historical developments in distribution patterns and claims payments, the level of reported and still outstanding claims and
the nature of the extent of cover are also taken into account. In addition, court decisions and economic conditions can also
affect the estimate of provisions and the eventual size of claims.
IBNR and IBNER provisions are formed to offset the expected costs of losses that have been incurred but not yet reported
or have not yet been reported sufficiently to the individual insurance companies. These provisions, just like the provisions
for reported claims, are formed to pay the expected costs, including claims settlement expenses, necessary to finally settle
these claims. Because, by definition, the extent of these losses is still unknown when the provisions are formed, VIG
Insurance Group calculates its IBNR and IBNER provisions based on historical claims experience, adjusted for current
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Annual Financial Report 2022
developments in claims-related factors. These provis
ions are based on estimates made using actuarial and statistical
forecasts of the expected costs to finally settle these claims. The analyses are based on the facts and circumstances known
at the time and on expectations regarding changes in legal and/or economic factors that determine the level of loss, such
as case law, the inflation rate and labour costs. These provisions are regularly reviewed and revised once additional
information is known and claims are actually reported. The time needed to learn of these claims and settle them is an
important factor that must be taken into account when forming provisions.
Claims which are easy to settle, such as property damage under motor insurance, are reported within a few days or weeks
and are normally settled within a year.
More complicated claims, such as personal injury under motor or general liability insurance, typically require longer
settlement times (on average four to six years, in some cases considerably longer). Difficult claims, where settlement
regularly depends on the results of often protracted litigation, also lead to substantially longer settlement times, especially
in the liability, casualty, building and professional liability lines of business.
The final costs of the claims and claims settlement expenses depend on a number of variable circumstances. Between the
time a claim is reported and final settlement, changing circumstances may require that the provisions that were formed be
revised upwards or downwards. For example, changes in the law, the outcome of litigation and changes in medical costs,
costs for materials for car and house repair and hourly wage rates, loss frequency and loss amount can have a substantial
effect on the costs of claims. These factors may result in actual developments differing from expectations – sometimes
substantially. Loss reserve estimates are regularly reviewed and updated, using the most recent information available to the
Managing Board.
Any changes to provision estimates are reflected in the operating result. The conservative policy toward provisions of VIG
Insurance Group is shown, for example, by the fact that liquidation of loss reserves has generally led to a profit. Based on
VIG Insurance Group’s internal procedures and the information currently available to it, management believes that the VIG
Insurance Group’s provisions in the property and casualty insurance area are adequate. Forming loss reserves is an
uncertain process and therefore no guarantee can be given that in the end losses will not differ from initial estimates.
CHANGES IN CLAIMS PAYMENTS AND GROSS LOSS RESERVE
The following tables show claims payments for individual years of occurrence and VIG Insurance Group’s direct loss reserves
at the end of each year indicated. The provisions reflect the amount of expected losses, based on claims that occurred in
the current and all previous loss years and had not yet been paid as of the balance sheet date, including IBNR and IBNER.
Interpreting the information contained in this table requires caution, because each amount contains the effects of all changes
from the previous periods. The circumstances and trends that affected liability in the past may not recur in the future and
therefore no conclusions can be drawn from the information given in this table as to future results.
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Claim payments for each year of occurrence on the applicable balance sheet date (gross)
Year of occurrence
Calendar year
≤2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
in EUR '000
2013 and before 2,895,695
1,146,147
438,215
358,335
211,309
160,352
116,037
96,183
65,442
49,178
2014 1,545,509
773,664
192,081
101,832
54,209
66,232
24,281
14,714
13,097
2015 1,565,072
734,971
212,354
91,806
60,484
33,766
22,621
18,341
2016 1,619,590
806,055
204,162
108,102
79,211
35,983
24,482
2017 1,827,020
885,844
237,052
111,119
82,846
33,089
2018 1,816,053
877,898
237,846
117,315
62,060
2019 2,069,673
870,191
210,713
97,199
2020 1,925,211
887,732
222,906
2021 2,232,080
1,177,242
2022 2,525,002
Total 2,895,695
2,691,656
2,776,951
2,904,977
3,158,570
3,212,426
3,535,478
3,377,808
3,669,446
4,222,596
Loss reserve for each year of occurrence on the applicable balance sheet date (gross)
Year of occurrence
Calendar year
≤2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
in EUR '000
2013 and before 3,940,731
2,412,169
1,727,024
1,328,778
1,117,701
947,160
846,405
795,782
721,633
693,898
2014 1,749,247
813,249
468,519
313,557
234,036
158,058
131,716
116,568
103,944
2015 1,687,291
787,903
467,615
299,946
216,863
173,143
145,309
125,503
2016 1,757,426
803,864
497,502
329,162
262,292
221,401
161,359
2017 1,903,463
863,161
512,025
345,528
220,739
178,961
2018 1,999,997
957,118
571,423
354,520
249,032
2019 2,156,013
949,167
571,859
366,910
2020 2,387,581
1,075,434
593,788
2021 2,855,356
1,255,615
2022 3,355,696
Total 3,940,731
4,161,416
4,227,564
4,342,626
4,606,200
4,841,802
5,175,644
5,616,632
6,282,819
7,084,706
Reinsurance
VIG Insurance Group limits its potential liability arising from the insurance business by passing on, to the extent necessary,
a portion of the assumed risks to the international reinsurance market. Some of the risks of insurance companies are
reinsured within VIG Insurance Group and these risks are in turn ceded to external reinsurers at the Group level.
REINSURANCE GUIDELINES
The reinsurance guidelines are jointly determined each year by the corporate Reinsurance department and the member of
the Managing Board responsible for reinsurance during the development of the reinsurance strategy for the next financial
year. They require each insurance company to provide, in consultation with the corporate Reinsurance department,
reinsurance coverage that is appropriate for its local company. These guidelines govern the following points.
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Annual Financial Report 2022
Reinsurance is a prerequisite for the acceptance of
insurance coverage
Underwriting departments may only make a binding commitment to insure a risk above a certain limit if sufficient reinsurance
coverage has already been assured.
Retention
It is Group-wide policy that no more than EUR 70.0 million for the first natural disaster event and EUR 50.0 million for each
additional event can be placed at risk on a PML (probable maximum loss) basis. The maximum Group-wide retention per
individual loss is less than EUR 25.0 million.
Selection of reinsurers – diversification
VIG Holding and its subsidiaries divide their reinsu
rance coverage among many different international reinsurance
companies that VIG Holding feels have appropriate credit quality, so as to minimise the risk arising from one reinsurer’s
inability to pay (credit risk). The monetary limit per reinsurer is set individually for each subsidiary.
Selection of reinsurers – ratings
For lines of business where claims settlement takes a long time, in particular for motor third party liability, general liability
and aviation, VIG Insurance Group uses reinsurers with outstanding ratings (at least a Standard & Poor’s rating of A,
preferably a rating of AA or higher), which in all likelihood will also continue to exist over the long term. For lines of business
with claims that are settled quickly (for example, natural catastrophes, fire, technology, transportation, storm, burglary,
household, water pipes, motor own damage), where the number of reinsurers is greater, the preferred rating is Standard &
Poor’s A or higher. Only in a few cases – and for limited periods of time – are reinsurers with lower ratings accepted.
Reinsurers’ share of underwriting provisions – ratin
gs
The following table shows the reinsurers’ share in underwriting provisions in property and casualty insurance for different
ratings and balance sheet dates:
31.12.2022
31.12.2021
in %
AAA 20.44
9.14
AA 27.42
35.57
A 47.76
50.70
BBB 1.89
2.76
BB and lower 0.67
0.85
No rating 1.82
0.98
As a result of the good credit quality of VIG Insurance Group’s reinsurers, no valuation allowances were needed for reinsurers’
shares as of the 31 December 2022 and 31 December 2021 balance sheet dates.
Design of reinsurance programmes
If it can be justified economically, any subsidiary
can purchase reinsurance coverage individually from external reinsurers. If
individual reinsurance policies can only be purchased by a subsidiary at uneconomical terms, VIG Insurance Group strives,
as far as possible, to jointly place reinsurance contracts covering risks from natural catastrophes, property lines of business,
casualty, transport, aviation and motor liability. If necessary, intra-Group assumptions of reinsurance are also passed on as
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
95
retrocession in the reinsurance market for safety reasons. The guidelines for Wiener Städtische reinsurance coverage are
presented below. Retentions for all other insurance companies are below those of Wiener Städtische.
REINSURANCE COVERAGE USING THE EXAMPLE OF WIENER STÄDTISCHE
Natural catastrophes
Wiener Städtische provides insurance for damage caused by natural catastrophes such as storms, hail, flooding or
earthquakes. Wiener Städtische uses reinsurance coverage to limit its retention for natural disasters to EUR 18.0 million for
the first loss event and EUR 9.5 million for each additional event.
Private customer business
The private customer business consists of essentially stable insurance portfolios having calculable results that are
characterised above all by a stable claims frequency. Thus, such recurrent claims are only reinsured in exposed lines of
business, for example storm insurance, with a targeted use of proportional reinsurance to reduce the effects on the retention.
The effects on the retention of the small number of expected major losses are covered by non-proportional reinsurance.
Wiener Städtische’s maximum net loss is between EUR 1.0 million and EUR 2.0 million, depending on the line of business.
Management and control
LIQUIDITY MANAGEMENT
VIG Insurance Group manages its liquidity using guidelines approved by the Managing Board of VIG Holding. As a rule, VIG
Holding and each subsidiary are responsible for their own liquidity planning. As the parent company, VIG Holding is
responsible for allocating capital for VIG Insurance Group as a whole. This allows capital to be efficiently distributed within
VIG Insurance Group. It also allows VIG Holding to ensure that the target levels of liquidity and capital resources are available
both at the VIG Insurance Group level and in the individual operating units.
Most of the liquidity for day-to-day operations comes from premiums received from primary insurance, regular income from
investments and proceeds from the sale of investments. These inflows are offset by payments for property and casualty
insurance claims, and benefit payments for life and health insurance. The remaining net liquidity is used to cover acquisition
and operating costs.
The maturity pattern of the insurance business provides a natural liquidity buffer. Unlike the premiums received, VIG
Insurance Group guarantees insurance coverage for a certain period of time, and no cash outflow occurs during this period
until an insured event occurs. The liquidity buffer is invested during this period and generates investment income. A portion
is held in the form of liquid investments to ensure that it can be quickly converted into cash to pay claims. In addition, the
bond portfolio, in particular, is structured so that the proceeds from maturing bonds are received on the dates it is
anticipated they will be needed. External influence factors, such as capital market developments and the interest rate level,
affect the liquidity situation by improving or restricting 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 policy extensions also plays a role.
The liquidity needs for life insurance are generally affected by the difference between actual mortality experience and the
assumptions used to calculate underwriting provisions. 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.
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Annual Financial Report 2022
CAPITAL MANAGEMENT
In the interests of our shareholders and insurance customers, our goal is to ensure that VIG Holding has adequate capital
resources at all times and that all operating insurance companies fulfil their respective minimum regulatory capital
requirements. Due to its successful business strategy, VIG Holding has traditionally had very good capital resources.
Maintaining this good capital base in the future is also important to us, both to allow us to take advantage of profitable
growth opportunities and to cushion the effects of large loss events.
Standard & Poor’s rating
VIG Holding also places great importance on maintaining a strong credit rating with Standard & Poor’s (S&P) and therefore
regularly undergoes rating by S&P. S&P has its own capital model for assessing the relationship between the risk capital
required by a company and the capital resources available to it. In December 2022, S&P affirmed the A+ rating with a
“stable” outlook. Capital resources exceed the requirements for the AAA level.
The subordinated bonds issued in 2013 (EUR 500 million, tier 2, first call date 9 October 2023), 2015 (EUR 400 million, tier
2, first call date 2 March 2026), 2017 (EUR 200 million, tier 2, first call date 13 April 2027) and 2022 (EUR 500 million, tier
2, first call date 15 June 2032) have been rated A- by S&P. The senior sustainability bond that was issued in 2021 (EUR
500 million, bullet bond, 15-year term) was assigned an A rating by S&P. It does not satisfy S&P’s criteria for inclusion as
capital.
Active capital management
VIG Holding uses the criteria above to monitor its capital positions and takes appropriate measures to further improve its
capital structure and strengthen its capital and solvency situation over the long term. A solvency ratio of 150% to 200% at
the Solvency II Group level has been specified by VIG Holding, whereby this VIG Group solvency ratio range is determined
without taking into account transitionals for underwriting provisions used by some individual Group companies.
Capital management focuses on subordinated long-term liabilities with equity-like characteristics. The Treasury department,
incl. Asset Liability Management, continuously monitors capital market developments, with particular attention to
developments concerning bonds with equity-like characteristics from the European insurance sector. New capital
instruments developing in the capital market for insurance companies are examined for applicability to VIG Holding.
Capital resources
As of 31 December 2022, 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 2022
(2021: 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 8. Consolidated shareholders’
equity starting on page 112.
VIG Insurance Group had an auditor-reviewed solvency ratio defined based on Solvency II of 279.9% as of 31 December 2022
(31 December 2021: 249.5%).
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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Long-term debt financing
VIG Insurance Group had subordinated bonds with a wide range of maturities outstanding as of 31 December 2022.
Detailed information on the VIG Insurance Group bond programme is provided in Note 9. Subordinated liabilities starting
on page 116. As shown by the maturities, VIG Insurance Group’s focus is on subordinated liabilities that are eligible capital.
General capital market conditions and other circumstances that affect the financial services sector as a whole or VIG
Insurance Group in particular could have an adverse effect on the cost and availability of debt financing. The goal, therefore,
is to actively manage the capital structure to keep refinancing risks as low as possible.
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Annual Financial Report 2022
NOTES TO THE CONSOLIDATED BALANCE SHEET – ASSETS
1. I
NTANGIBLE ASSETS
Composition 31.12.2022
31.12.2021
in EUR '000
Goodwill 1,438,721
1,260,226
Purchased insurance portfolios 59,576
14,607
Other intangible assets 586,448
469,336
Purchased software 446,797
388,413
Other 139,651
80,923
Total 2,084,745
1,744,169
Impairments of intangible assets and reversals of impairments of intangible assets are included as separate items in the
income statement between the Group operating result and the result before taxes.
1.1. Goodwill
Development 2022
2021
in EUR '000
Acquisition costs 1,886,335
1,865,619
Cumulative impairment as of 31.12. of the previous year -626,109 -628,303
Book value as of 31.12. of the previous year 1,260,226
1,237,316
Exchange rate differences -4,026 22,910
Book value as of 1.1. 1,256,200
1,260,226
Additions 208,882
0
Impairments -26,361 0
Book value as of 31.12. 1,438,721
1,260,226
Cumulative impairment as of 31.12. 651,991
626,109
Acquisition costs 2,090,712
1,886,335
Additions in the financial year mainly result from the purchases of Aegon Hungary (EUR 188,573,000) and the Slovakian
pension company 365.life (EUR 19,970,000).
The impairments in the financial year predominantly affected the Albania incl. Kosovo (EUR 13,624,000) and North
Macedonia (EUR 12,553,000) CGU groups.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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Goodwill of CGU units (book values) 31.12.2022
31.12.2021
in EUR '000
Austria 301,716
301,716
Czech Republic 468,097
454,041
Poland 140,560
142,970
Albania incl. Kosovo 0
13,416
Baltic States 75,481
75,481
Bulgaria 124,354
124,354
North Macedonia 0
12,551
Slovakia 111,257
111,257
Hungary 186,759
13,915
Group Functions 30,497
10,525
Total 1,438,721
1,260,226
Please see the Impairment section on page 47 for information on the assumptions used for impairment testing.
1.2. Other intangible assets
Development purchased software 2022
2021
in EUR '000
Acquisition costs 1,440,574
1,318,689
Cumulative valuation as of 31.12. of the previous year -1,052,161 -917,226
Book value as of 31.12. of the previous year 388,413
401,463
Exchange rate differences -151 1,375
Book value as of 1.1. 388,262
402,838
Reclassifications -5,174 -7,517
Additions 124,435
131,283
Disposals -5,953 -287
Changes in scope of consolidation 24,423
-126
Scheduled depreciation -79,196 -137,090
Impairments 0
-688
Book value as of 31.12. 446,797
388,413
Cumulative valuation as of 31.12. 493,069
1,052,161
Acquisition costs 939,866
1,440,574
2. INVESTMENTS
Composition 31.12.2022
31.12.2021
in EUR '000
Property 3,128,977
2,850,588
Owner-occupied property 483,345
472,303
Investment property 2,645,632
2,378,285
Shares in at equity consolidated companies 287,960
276,913
Financial assets 28,923,416
31,682,289
Loans and other investments 3,368,204
3,028,291
Other financial assets 25,555,212
28,653,998
Total 32,340,353
34,809,790
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Annual Financial Report 2022
2.1. P
roperty
Owner-occupied property
Development 2022
2021
in EUR '000
Acquisition costs 773,344
758,780
Cumulative valuation as of 31.12. of the previous year -301,041 -281,311
Book value as of 31.12. of the previous year 472,303
477,469
Exchange rate differences 3,573
5,822
Book value as of 1.1. 475,876
483,291
Reclassifications -22,065 1,246
Additions 12,478
9,886
Disposals -1,586 -4,043
Changes in scope of consolidation 36,243
-283
Appreciation 0
52
Scheduled depreciation -17,560 -16,829
Impairments -41 -1,017
Book value as of 31.12. 483,345
472,303
Cumulative valuation as of 31.12. 298,407
301,041
Acquisition costs 781,752
773,344
Changes in the scope of consolidation are mainly due to the first-time inclusion of Aegon Hungary (EUR +23,228,000) and
Brockmanngasse 32 Immobilienbesitz GmbH (EUR +12,904,000).
Investment property
Development 2022
2021
in EUR '000
Acquisition costs 3,260,627
2,857,619
Cumulative valuation as of 31.12. of the previous year -882,342 -827,675
Book value as of 31.12. of the previous year 2,378,285
2,029,944
Exchange rate differences -801 1,395
Book value as of 1.1. 2,377,484
2,031,339
Reclassifications 22,646
-2,051
Additions 238,861
286,183
Disposals -2,984 -6,409
Changes in scope of consolidation 82,365
121,457
Appreciation 275
3,333
Scheduled depreciation -60,779 -54,896
Impairments -12,236 -671
Book value as of 31.12. 2,645,632
2,378,285
Cumulative valuation as of 31.12. 971,313
882,342
Acquisition costs 3,616,945
3,260,627
Rental income 171,164
140,360
From investment property 171,164
140,360
Operating expenses for rented investment property 57,054
38,478
Operating expenses for vacant investment property 4,562
7,970
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The changes in the scope of consolidation are mainly due to first-time inclusion of Atzlergasse 13-15 GmbH & Co KG
(EUR +11,902,000), Merlot Sp.z.o.o. (EUR +45,398,000), Nordbahnhof Projekt EPW8 GmbH & Co KG (EUR +11,560,000)
and Nordbahnhof Projekt Taborstraße 123 GmbH & Co KG (EUR +12,830,000).
Use of property
Detail property 31.12.2022
31.12.2021
in EUR '000
Owner-occupied property 483,345
472,303
self-used 461,882
450,663
rented (operating lease) 21,463
21,640
Investment property 2,645,632
2,378,285
self-used 8,038
3,940
rented (operating lease) 2,637,594
2,374,345
2.2. Shares in at equity consolidated companies
Development 2022
2021
in EUR '000
Book value as of 31.12. of the previous year 276,913
291,561
Exchange rate differences -2
-1
Book value as of 1.1. 276,911
291,560
Additions 0
11,804
Changes in scope of consolidation 0
-46,851
Share of changes in OCI -654
178
Pro rata result for the period of shares in at equity consolidated companies 20,757
27,209
Dividend payment -9,054
-6,987
Book value as of 31.12. 287,960
276,913
thereof reportable segment Austria 180,998
170,124
thereof reportable segment Poland 139
141
thereof reportable segment Group Functions 106,823
106,648
Associated companies are measured at equity.
Material shares in at equity consolidated companies
Development 2022
Beteiligungs- und
Wohnungs-
anlagen GmbH
Gewista-Werbe-
gesellschaft
m.b.H.
Österreichisches
Verkehrsbüro AG
Erste Heimstätte
GmbH
VBV - Betriebliche
Altersvorsorge AG
in EUR '000
Book value as of 31.12. of the previous year 35,541
38,544
18,017
48,433
70,857
Book value as of 1.1. 35,541
38,544
18,017
48,433
70,857
Share of changes in OCI 0
0
1,184
0
-1,790
Pro rata result for the period of shares in at equity consolidated
companies 4,602
7,945
-4,246
0
11,833
Dividend payment -2,471
-3,947
0
0
-1,950
Book value as of 31.12. 37,672
42,542
14,955
48,433
78,950
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Annual Financial Report 2022
Material shares in at equity consolidated companies 2022
Beteiligungs- und
Wohnungs-
anlagen GmbH
Gewista-Werbe-
gesellschaft
m.b.H.
Österreichisches
Verkehrsbüro AG
Erste Heimstätte
GmbH
VBV - Betriebliche
Altersvorsorge AG
in EUR '000
Group interest in % 25.00%
33.00%
36.58%
99.77%
25.32%
Income 0
102,110
438,620
92,967
81,526
Expenses -197 -89,359 -448,247 -44,148 -24,983
Financial result 17,508
14,611
-5,847 -25,264 5,620
Taxes 1,095
-3,287 3,794
-14 -15,430
Result for the period 18,406
24,075
-11,679 23,541
46,733
Parent company minority interest 0
0
73
0
0
Adjustment item due to protective provisions of the Austrian
Non-Profit Housing Act (Wohnungsgemeinnützigkeitsgesetz –
WGG)
0
0
0
-23,541 0
Result for the period less non-controlling interests 18,406
24,075
-11,606 0
46,733
thereof Non-controlling interests 414
7,602
-263 0
1,051
thereof shares of at equity consolidated companies held by
shareholders
17,992
16,473
-11,416 0
45,682
Share of result 4,602
7,945
-4,246 0
11,562
Fixed assets 340,336
147,610
322,049
922,744
375,764
Current assets (incl. other assets) 18,706
863
171,654
23,806
13,768,742
Borrowings -208,354 -19,558 -440,404 -618,263 -13,832,698
Net assets 150,688
128,915
53,300
328,287
311,808
thereof Non-controlling interests 3,390
40,705
1,199
92,198
7,016
thereof shares of at equity consolidated companies held by
shareholders 147,298
88,210
52,101
236,089
304,792
Share of net assets 37,672
42,542
19,495
327,542
78,950
Cumulative impairments 0
0
-4,540 0
0
Adjustment item due to protective provisions of the Austrian Non-
Profit Housing Act (Wohnungsgemeinnützigkeitsgesetz – WGG)
0
0
0
-279,109 0
Book value of shares in at equity consolidated companies 37,672
42,542
14,955
48,433
78,950
Materiality is generally determined based on the amount of the at equity book value.
Beteiligungs- und Immobilien GmbH and Beteiligungs- und Wohnungsanlagen GmbH were included in the consolidated
financial statements with a different balance sheet date (30 September).
2.3. Loans and other investments
Composition of loans and other investments 31.12.2022
31.12.2021
in EUR '000
Loans 1,306,237
1,273,633
Reclassified loans 91,834
106,677
Bonds classified as loans 721,357
775,754
Total loans 2,119,428
2,156,064
Other investments 1,248,776
872,227
thereof bank deposits 1,157,148
783,730
thereof deposits on assumed reinsurance business 91,611
88,480
Total 3,368,204
3,028,291
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Composition of total loans 31.12.2022
31.12.2021
in EUR '000
Loans 1,306,237
1,273,633
Loans to non-consolidated affiliated companies 53,449
75,424
Loans to participations 51,517
38,699
Mortgage loan 346,035
375,043
Policy loans and prepayments 26,447
17,027
Other loans 828,789
767,440
to public authorities 245,045
220,158
to financial institutions 139,437
148,581
to other commercial borrowers 302,752
396,332
to others 141,555
2,369
Reclassified loans 91,834
106,677
Bonds classified as loans 721,357
775,754
to public authorities 108,750
109,894
to financial institutions 575,440
628,937
to other commercial borrowers 32,667
32,423
Other 4,500
4,500
Total 2,119,428
2,156,064
Public sector borrowers include national, state and local authorities. The loans included under other loans are generally
loans that are not secured by insurance policies.
Collateral was provided for around 52.78% of the total loans reported.
Development of total loans 2022
2021
in EUR '000
Acquisition costs 2,165,624
2,574,406
Cumulative valuation as of 31.12. of the previous year -9,560
-7,522
Book value as of 31.12. of the previous year 2,156,064
2,566,884
Exchange rate differences 2,754
8,100
Book value as of 1.1. 2,158,818
2,574,984
Additions 3,032,855
5,107,968
Disposals -3,072,450
-5,523,003
Changes in scope of consolidation 12,950
-500
Appreciation 69
115
Impairments -12,814
-3,500
Book value as of 31.12. 2,119,428
2,156,064
Cumulative valuation as of 31.12. 6,122
9,560
Acquisition costs 2,125,550
2,165,624
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Annual Financial Report 2022
Maturity structure of loans 31.12.2022
31.12.2021
in EUR '000
Loans 1,306,237
1,273,633
up to one year 153,700
130,590
more than one year up to five years 318,282
294,558
more than five years up to ten years 193,523
198,515
more than ten years 640,732
649,970
Bonds classified as loans 721,357
775,754
up to one year 177,576
75,220
more than one year up to five years 250,968
403,088
more than five years up to ten years 165,648
151,921
more than ten years 127,165
145,525
2.4. Other financial assets
Composition 2022
2021
in EUR '000
Held to maturity (incl. reclassified) 2,434,790
2,557,720
Available for sale 22,915,672
25,849,069
Recognised at fair value through profit and loss
*
204,750
247,209
Total 25,555,212
28,653,998
*Including held for trading
Development Held to maturity (incl. reclassified) Available for sale
2022
2021
2022
2021
in EUR '000
Acquisition costs 2,559,890
2,457,839
Cumulative valuation as of 31.12. of the previous year -2,170 -1,401
Book value as of 31.12. of the previous year 2,557,720
2,456,438
25,849,069
25,983,431
Exchange rate differences 40,452
85,757
101,320
31,295
Book value as of 1.1. 2,598,172
2,542,195
25,950,389
26,014,726
Reclassifications 0
0
0
15
Additions 217,793
157,435
4,809,358
3,458,437
Disposals/repayments -380,776 -141,910 -4,208,145 -2,826,541
Changes in scope of consolidation 0
0
592,228
-32,037
Changes recognised directly in equity 0
0
-4,101,681 -745,708
Impairments -399 0
-126,477 -19,823
Book value as of 31.12. 2,434,790
2,557,720
22,915,672
25,849,069
Cumulative valuation as of 31.12. 1,501
2,170
Acquisition costs 2,436,291
2,559,890
The changes recognised directly in equity for the “Financial assets available for sale” category were mainly due to the yield
curve.
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Composition government bonds*
(book value) Held to maturity (incl. reclassified) Available for sale
31.12.2022
31.12.2021
31.12.2022
31.12.2021
in %
Austria 0.42
0.35
9.64
12.01
Germany 0.13
0.13
1.77
1.53
Czech Republic 60.49
65.44
7.05
7.51
Slovakia 3.76
3.42
5.41
6.52
Poland 18.49
16.45
12.92
12.05
Romania 0.00
0.00
6.38
5.41
Other countries 16.70
14.21
56.83
54.97
*
Government bonds also include bonds issued by supranational organisations, government agencies, federal or constituent states and municipal bonds.
Financial assets held to maturity
Composition Amortised cost Fair value
Financial assets held to maturity 31.12.2022
31.12.2021
31.12.2022
31.12.2021
in EUR '000
Financial assets held to maturity 2,278,932
2,255,318
2,044,093
2,318,212
Government bonds 2,024,342
1,994,157
1,793,182
2,018,289
Covered bonds 208,469
216,499
208,017
254,259
Corporate bonds 35,366
33,616
32,903
34,371
Bonds from banks 8,700
9,032
8,030
9,291
Subordinated bonds 2,055
2,014
1,961
2,002
Maturity structure Amortised cost Fair value
Financial assets held to maturity 31.12.2022
31.12.2021
31.12.2022
31.12.2021
in EUR '000
Financial assets held to maturity 2,278,932
2,255,318
2,044,093
2,318,212
up to one year 135,308
222,304
134,083
223,871
more than one year up to five years 803,327
737,539
776,578
762,651
more than five years up to ten years 796,961
798,380
676,748
778,985
more than ten years 543,336
497,095
456,684
552,705
Rating categories Amortised cost
Financial assets held to maturity (incl. reclassified) 31.12.2022
31.12.2021
in EUR '000
AAA 82,774
82,507
AA 1,548,839
1,717,610
A 534,018
491,148
BBB 71,606
87,403
BB and lower 174,646
159,485
No rating 22,907
19,567
Total 2,434,790
2,557,720
106
Annual Financial Report 2022
Financial assets available for sale
Composition Fair value
Financial assets available for sale 31.12.2022
31.12.2021
in EUR '000
Bonds 20,413,191
22,305,212
Government bonds 9,994,478
10,839,772
Covered bonds 1,189,626
1,258,552
Corporate bonds 4,990,050
6,017,938
Bonds from banks 3,317,431
3,187,044
Subordinated bonds 921,606
1,001,906
Shares and other participations* 613,136
770,933
Investment funds 1,889,345
2,772,924
Equity funds 758,939
1,321,781
Pension funds 715,984
1,035,579
Alternative funds 88,123
47,786
Real estate funds 118,459
129,008
Balanced funds 207,840
238,770
Total 22,915,672
25,849,069
* includes shares in non-consolidated subsidiaries and other participations of EUR 254,714,000 (EUR 279,516,000)
Unrealised gains and losses 31.12.2022 31.12.2021
Financial assets available for sale Fair value
Unrealised
gains
Unrealised
losses
Fair value
Unrealised
gains
Unrealised
losses
in EUR '000
Bonds 20,413,191
180,975
-2,328,842
22,305,212
1,924,731
-246,918
Shares and other participations 613,136
106,799
-23,080
770,933
217,417
-12,761
Investment funds 1,889,345
151,517
-177,817
2,772,924
443,825
-31,320
Total 22,915,672
439,291
-2,529,739
25,849,069
2,585,973
-290,999
In the case of the “Financial assets available for sale” category, the balance sheet value equals fair value. Unrealised gains
and losses represent the difference between amortised cost and fair value.
Impairments 31.12.2022 31.12.2021
Financial assets available for sale Gross book value
Impairment
Net book value
Gross book value
Impairment
Net book value
in EUR '000
Bonds 20,522,884
109,693
20,413,191
22,318,180
12,968
22,305,212
not adjusted 20,289,942
0
20,289,942
22,305,212
0
22,305,212
adjusted 232,942
109,693
123,249
12,968
12,968
0
Shares* 413,492
55,070
358,422
556,289
64,872
491,417
not adjusted 283,214
0
283,214
342,859
0
342,859
adjusted 130,278
55,070
75,208
213,430
64,872
148,558
Investment funds 1,955,913
66,568
1,889,345
2,827,338
54,414
2,772,924
not adjusted 1,809,233
0
1,809,233
2,707,047
0
2,707,047
adjusted 146,680
66,568
80,112
120,291
54,414
65,877
Total 22,892,289
231,331
22,660,958
25,701,807
132,254
25,569,553
*Not including impairment of shares in affiliated companies and other participations
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
107
Maturity structure Fair value
Financial assets available for sale 31.12.2022
31.12.2021
in EUR '000
no maturity 2,483,989
3,497,026
up to one year 1,539,677
1,837,784
more than one year up to five years 7,676,855
7,194,473
more than five years up to ten years 6,515,349
7,319,359
more than ten years 4,699,802
6,000,427
Total 22,915,672
25,849,069
Rating categories Fair value
Fixed-interest financial assets available for sale 31.12.2022
31.12.2021
in EUR '000
AAA 2,214,519
2,167,471
AA 4,720,287
5,704,589
A 6,717,167
7,876,611
BBB 5,282,597
5,401,515
BB and lower 1,336,476
898,178
No rating 142,145
256,848
Total 20,413,191
22,305,212
3. FINANCIAL INSTRUMENTS FOR UNIT- AND INDEX-LINKED LIFE INSURANCE
Composition 31.12.2022 31.12.2021
Unit-linked
Index-linked
Total
Total
in EUR '000
Investment funds 6,601,708
0
6,601,708
7,404,978
Bonds 0
422,634
422,634
929,771
Shares 0
813
813
940
Bank deposits 131,702
2,857
134,559
179,053
Deposit receivables 10,171
0
10,171
10,948
Net of receivables and liabilities -5,756
0
-5,756
-359
Total 6,737,825
426,304
7,164,129
8,525,331
Maturity structure 31.12.2022
31.12.2021
in EUR '000
no maturity 6,737,080
7,584,971
up to one year 31,100
449,380
more than one year up to five years 268,415
220,851
more than five years up to ten years 111,116
254,039
more than ten years 16,418
16,090
Total 7,164,129
8,525,331
108
Annual Financial Report 2022
4. R
EINSURERS’ SHARE IN UNDERWRITING PROVISIONS
Development Book value
as of 1.1.
Exchange rate
differences
Additions
Amount
used/released
Changes in
scope of
consolidation
Book value as
of 31.12.2022
in EUR '000
Provision for unearned premiums 172,273
-19,550 196,581
-85,760 632
264,176
Mathematical reserve 10,725
-206 13,162
-13,722 2,321
12,280
Provision for outstanding claims 1,363,859
-6,698 965,692
-657,737 2,009
1,667,125
Provision for profit-unrelated premium refunds 14,616
189
16,533
-14,679 0
16,659
Other underwriting provisions 3,132
-62 2,340
-3,039 16
2,387
Total 1,564,605
-26,327 1,194,308
-774,937 4,978
1,962,627
Maturity structure 31.12.2022
31.12.2021
in EUR '000
up to one year 952,689
780,551
more than one year up to five years 540,531
396,372
more than five years up to ten years 237,417
204,841
more than ten years 231,990
182,841
Total 1,962,627
1,564,605
5. RECEIVABLES
Composition 31.12.2022
31.12.2021
in EUR '000
Underwriting 1,592,074
1,377,531
Receivables from direct insurance business 1,109,974
906,961
from policyholders 800,394
680,569
from insurance intermediaries 168,866
122,391
from insurance companies 140,714
104,001
Receivables from reinsurance business 482,100
470,570
Non-underwriting 749,601
689,657
Other receivables 749,601
689,657
Total 2,341,675
2,067,188
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
109
Composition of Other receivables 31.12.2022
31.12.2021
in EUR '000
Receivables from finance lease 55,918
47,951
Receivables from recourse claims 34,053
34,050
Pro rata and outstanding interest and rent 364,621
350,825
Receivables from tax authority (excl. income tax) and from fees of all kinds 44,113
47,838
Receivables from sales of investments 17,793
10,722
Receivables from property management 23,606
17,914
Receivables from third party claims settlement 25,359
18,486
Receivables from green card deposits and surety 54,776
66,242
Receivables from pre-payments 19,266
16,022
Other receivables 110,096
79,607
thereof receivables from charges for services 29,311
28,647
thereof receivables from charges for pensions 12,646
12,786
Total 749,601
689,657
Maturity structure 31.12.2022 31.12.2021
Premium
receivables due
Non-underwriting
Total
Total
in EUR '000
up to one year 310,242
643,750
953,992
834,731
more than one year up to five years 18,643
43,312
61,955
65,289
more than five years up to ten years 0
11,264
11,264
17,207
more than ten years 0
51,275
51,275
52,651
Subtotal 328,885
749,601
1,078,486
969,878
Premium receivables not yet due 582,667
469,816
Receivables from reinsurance business 482,100
470,570
Other underwriting receivables 198,422
156,924
Total 2,341,675
2,067,188
The gross receivables are offset by impairments (directly reducing the asset item) of EUR 82,235,000 (EUR 88,909,000)
and provisions for cancellations of EUR 16,128,000 (EUR 18,502,000).
Ageing analysis 31.12.2022
Overdue receivables 1–60 days
overdue
61–90 days
overdue
91–120 days
overdue
more than 120
days overdue
Total
in EUR '000
Premium receivables 209,450
54,209
22,261
78,660
364,580
not adjusted 72,815
31,977
14,014
42,230
161,036
adjusted 136,635
22,232
8,247
36,430
203,544
Non-underwriting receivables 18,533
1,634
2,462
25,258
47,887
not adjusted 15,001
1,168
1,947
5,902
24,018
adjusted 3,532
466
515
19,356
23,869
110
Annual Financial Report 2022
Ageing analysis 31.12.2021
Overdue receivables 1–60 days
overdue
61–90 days
overdue
91–120 days
overdue
more than 120
days overdue
Total
in EUR '000
Premium receivables 178,491
46,031
25,387
60,484
310,393
not adjusted 59,390
28,517
17,897
32,750
138,554
adjusted 119,101
17,514
7,490
27,734
171,839
Non-underwriting receivables 16,953
1,295
1,966
23,441
43,655
not adjusted 12,933
751
1,205
8,097
22,986
adjusted 4,020
544
761
15,344
20,669
6. DEFERRED TAXES
The deferred tax assets (DTA) 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 31.12.2022 31.12.2021
Assets
Liabilities
Assets
Liabilities
in EUR '000
Intangible assets 8,011
39,352
19,478
16,386
Right-of-Use Assets 0
39,013
0
56,688
Investments
1
290,608
106,318
111,944
312,141
Receivables and other assets
2
55,840
70,321
39,840
57,213
Accumulated losses carried forward 31,551
0
33,081
0
Tax-exempt reserves 0
9,450
0
10,647
Underwriting provisions
3
461,187
169,799
369,923
154,936
Non-underwriting provisions 52,799
7,272
96,180
4,084
Liabilities and other liabilities
4
94,084
23,264
91,811
26,829
Sum before valuation allowance 994,080
464,789
762,257
638,924
Valuation allowance for DTA -36,820 -30,770
Total before netting 957,260
464,789
731,487
638,924
Netting -387,371 -387,371 -420,040 -420,040
Net balance 569,889
77,418
311,447
218,884
1
including financial investments for unit- and index-linked life insurance
2
including cash and cash equivalents
3
including reinsurers' share in underwriting provisi
ons as well as underwriting provisions for unit- and index-linked life insurance
4
including subordinated liabilities
Deferred tax assets from seven-year amortisation of participations to going concern value were recognised in the amount
of EUR 15,041,000 (EUR 17,570,000). Deferred tax liabilities and deferred tax assets of consolidated taxable entities in the
tax group collected by the same tax authority were netted, resulting in a deferred tax asset of EUR 112,470,000 (deferred
tax liabilities: EUR 136,875,000). In accordance with IAS 12.39, deferred tax liabilities were not reported for temporary differ-
ences from shares in subsidiaries and associated companies since they would not be reversed in the foreseeable future.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
111
The difference between the book value for tax purposes and the IFRS shareholders' equity is EUR 1,425,483,000
(EUR 2,018,859,000). Deferred taxes for undistributed subsidiary profits of EUR 15,666,000 (EUR 16,767,000) were not
reported because a decision to distribute the profits had not yet been made.
EUR 26,138,000 (EUR 25,017,000) in deferred taxes on loss carry-forwards were not recognised.
7. OTHER ASSETS
Composition 31.12.2022
31.12.2021
in EUR '000
Tangible assets* and inventories 139,135
117,455
Other assets 16,294
26,263
Asset-side accruals 243,751
247,175
Total 399,180
390,893
*amount of reported balance sheet value leased: 4.99% (6.42%)
112
Annual Financial Report 2022
NOTES TO THE CONSOLIDATED BALANCE SHEET – LIABILITIES A
ND SHAREHOLDERS’ EQUITY
8. CONSOLIDATED SHAREHOLDERS’ EQUITY
The items
share capital
and
other capital reserves
include contributions to share capital made by VIG Holding shareholders.
Other capital reserves report the share of contributions paid that is in excess of the share capital. The reserves are reduced
by external costs directly related to corporate actions affecting equity after taking tax effects into account.
Retained earnings
are the earnings that subsidiaries have earned since joining VIG Insurance Group. These are reduced by
the dividends distributed by the VIG Holding. Amounts resulting from 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.
Other reserves
consist of unrealised gains and losses from the measurement of available for sale financial instruments and
actuarial gains and losses that are recognised in comprehensive income in accordance with IAS 19. Unrealised gains and
losses from the at equity measurement of associated companies and translation differences resulting from currency
translation for foreign subsidiaries are also reported in other reserves.
Non-controlling interests
are also shown as part of shareholders’ equity. These consist of shares held by third parties in the
equity of consolidated subsidiaries that are not directly or indirectly entirely owned by VIG Holding.
Detailed information on capital management is provided on page 96.
8.1. Share capital and voting rights
The Company has share capital of 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). Wiener Städtische Versicherungsverein, which directly and
indirectly holds around 72.47% (72.47%) of the share capital, has the right to appoint up to one 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. Existing agreements that would come into effect if control of the Company were
to change due to a takeover bid relate to participations held in other (non-insurance) companies.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
113
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
The Managing Board is authorised under § 169 Austrian Stock Corporation Act (AktG) to increase the share capital of the
Company by a nominal amount of up to EUR 66,443,734.10 by issuing 64,000,000 no-par value bearer or registered shares
or a combination of the two in one or more tranches on or before 20 May 2026 against cash or in-kind contributions. 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 General Meeting of 21 May 2021 authorised the Managing Board to issue, subject to Supervisory Board approval, one or
more tranches of convertible bonds in accordance with § 174 AktG with a total nominal value of up to EUR 2,000,000,000.00
on or before 20 May 2026, with conversion or subscription rights for up to 30,000,000 bearer ordinary shares of the
Company representing a share of up to EUR 31,145,500.36 of the share capital, including authorisation to exclude
shareholder pre-emption rights.
The share capital has consequently been raised in accordance with § 159 (2) no. 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.
The General Meeting of 21 May 2021 further authorised the Managing Board to issue, subject to Supervisory Board ap-
proval in accordance with § 174 (2) AktG, income bonds with a total nominal value of up to EUR 2,000,000,000.00 in one
or more tranches on or before 20 May 2026, including authorisation to exclude shareholder pre-emption rights. The Man-
aging Board has not adopted any resolutions to date regarding the issuance of income bonds based on this authorisation.
The General Meeting of 21 May 2021 authorised the Managing Board 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 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, or 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 choose to make the purchase on 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)).
The General Meeting of 21 May 2021 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.
114
Annual Financial Report 2022
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.
8.2. Capital reserves – hybrid capital
Issue date Outstanding volume
Maturity
Interest
Fair value
in EUR '000
in years
in %
in EUR '000
10.6.2021 300,000
unlimited
First 10 years: 3.2125% p.a.;
thereafter variable
193,830
On 15 March 2021, VIG Holding placed a hybrid capital bond with its principal shareholder, Wiener Städtische Versicherungs-
verein, during a private placement. The hybrid capital satisfies the equity capital criteria of IAS 32.16C and .16D, since the
issuer can freely decide about the interest payment and the bond does not have a fixed term. It also satisfies the Solvency II
requirements for restricted tier 1 instruments and qualifies as capital based on the requirements of the S&P rating agency.
8.3. Other reserves
Composition 31.12.2022
Unrealised gains
and losses
Cash flow hedge
reserve
Actuarial gains
and losses from
provisions for
employee
benefits
Share of other
reserves of at
equity
consolidated
companies
Currency reserve
Total
in EUR '000
Gross -2,090,448
-4
-143,215
-528
-227,492
-2,461,687
+/-
Exchange rate changes from financial
assets available for sale
8,861
8,861
+/- Deferred profit participation 617,194
0
58,864
676,058
+/- Deferred taxes 296,456
0
18,883
315,339
+/- Non-controlling interests 27,303
2
1,411
32
20,482
49,230
Net -1,140,634
-2
-64,057
-496
-207,010
-1,412,199
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
115
Composition 31.12.2021
Unrealised gains
and losses
Cash flow hedge
reserve
Actuarial gains
and losses from
provisions for
employee
benefits
Share of other
reserves of at
equity
consolidated
companies
Currency reserve
Total
in EUR '000
Gross 2,294,974
-38
-367,775
126
-197,696
1,729,591
+/- Exchange rate changes from financial
assets available for sale 10,235
10,235
+/- Deferred mathematical reserve -673,535
-673,535
+/- Deferred profit participation -883,910
0
115,841
-768,069
+/- Deferred taxes -179,646
0
61,852
-117,794
+/- Non-controlling interests -9,835
1
3,158
23
1,877
-4,776
Net 558,283
-37
-186,924
149
-195,819
175,652
8.4. Payout
Payout 2022 for the financial year 2021 Per share
Total
in EUR
Ordinary shares 1.25
160,000,000
8.5. Proposed appropriation of profits
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe (VIG Holding) ended financial year 2022 with a net retained
profit of EUR 370,431,503.00. The following appropriation of profits will be proposed in the Annual General Meeting:
The 128 million shares shall receive a dividend of EUR 1.30 per share. The payment date for this dividend will be 1 June
2023, the record date 31 May 2023, and the ex-dividend date 30 May 2023.
A total of EUR 166, 400,000. 00 will therefore be distributed. The net retained profit of EUR 204,031,503.00 remaining for
financial year 2022 after distribution of the dividend is to be carried forward.
116
Annual Financial Report 2022
9. SU
BORDINATED LIABILITIES
Subordinated liabilities of the Group
Issuing company Issue date
Outstanding volume Maturity
Interest Fair value
in EUR '000
in years
in %
in EUR '000
VIG Holding
9.10.2013
284,400
30
1
First 10 years: 5.5%
p.a.; thereafter variable 284,613
VIG Holding
2.3.2015
400,000
31
2
First 11 years: 3.75%
p.a.; thereafter variable 379,912
VIG Holding
13.4.2017
200,000
30
3
First 10 years: 3.75%
p.a.; thereafter variable 187,270
VIG Holding
15.6.2022
500,000
20
4
First 10 years: 4,875%
p.a.; thereafter variable 449,006
Donau Versicherung 15.4. + 21.5.2004
9,500
unlimited
5
4.95% p.a.
9,285
Donau Versicherung 1.7.1999
1,500
unlimited
6
4.95% p.a.
1,496
Wiener Städtische 1.3.1999
8,250
unlimited
7
4.90% p.a.
240,050
Wiener Städtische 2.7.2001
16,100
unlimited
8
6.10% p.a.
8,074
Wiener Städtische 15.11.2003
19,110
unlimited
9
4.95% p.a.
16,139
Wiener Städtische 30.6.2006
34,700
unlimited
10
4.75% p.a.
18,781
Wiener Städtische 11.5.2017
250,000
10
11
3.50% p.a.
34,133
Kooperativa (Czech Republic) 22.12.2010
22,806
unlimited
12
5.05% p.a. 21,369
Total 1,746,366
1,650,128
1
The right to ordinary and extraordinary cancellation by the holder is excluded. Regular cancellation by the issuer is first allowed effective 9 October 2023.
2
The right to ordinary and extraordinary cancellation by the holder is excluded. Regular cancellation by the issuer is first allowed effective 2 March 2026.
3
The right to ordinary and extraordinary cancellation by the holder is excluded. Regular cancellation by the issuer is first allowed after 10 years.
4
The right to ordinary and extraordinary cancellation by the holder is excluded. Regular cancellation by the issuer is first allowed after 10 years.
5
Due to the call, the supplementary capital will be repaid in full in 2025.
6
Due to the call, the supplementary capital will be repaid in full in 2025.
7
This can only be cancelled subject to not less than 5 years’ notice, unless Austrian insurance regulators agree to repayment being made early. Due to cancellations, EUR 8,250,000 will be repaid starting with 2025.
8
This can only be cancelled subject to not less than 5 years’ notice, unless Austrian insurance regulators agree to repayment being made early. Due to cancellations, EUR 16,100,000 will be repaid starting with 2024.
9
This can only be cancelled subject to not less than 5 years’ notice, unless Austrian insurance regulators agree to repayment being made early. Due to cancellations, EUR 19,110,000 will be repaid between 2023 and 2024.
10
This can only be cancelled subject to not less than 5 years' notice, unless Austrian insurance regulators agree to repayment being made early. Due to cancellations, EUR 34,700,000 will be repaid starting with 2024.
11
The right to ordinary and extraordinary cancellatio
n by the holder is excluded. No provision has been made for regular cancellation by the issuer.
12
Due to the call, the supplementary capital will be repaid in full in 2024.
VIG Holding subordinated liabilities
Interest on supplementary capital bonds is only paid out to the extent that the interest is covered by the company’s national
annual profit. The interest is, however, always included as an expense.
On 9 October 2013 the Company issued a subordinated bond with a total nominal value of EUR 500,000,000.00 and a
term of 30 years. VIG Holding can call the bond in full for the first time on 9 October 2023 and on each following coupon
date. The subordinated bond bears interest at a fixed rate of 5.50% p.a. during the first ten years of its term and variable
interest after that. The subordinate bond satisfies the tier 2 requirements of Solvency II. The bonds are traded on the Vienna
Stock Exchange. On 15 June 2022, an early partial repurchase of the subordinated bonds issued on 9 October 2013 was
performed. Approximately 43% (EUR 215.6 million) got repurchased. EUR 284.4 million in bonds still outstanding continue
to be reported under subordinated liabilities.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
117
The Company issued a subordinated bond with a total nominal value of EUR 400,000,000.00 and a term of 31 years on
2 March 2015. VIG Holding 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. The bond is listed on the
Luxembourg Stock Exchange.
A EUR 200,000,000.00 subordinated bond was privately placed. The subordinated bond has a term of 30 years and VIG
Holding can call it for the first time after 10 years. It satisfies the tier 2 requirements of Solvency II and qualifies as capital
based on the requirements of the S&P rating agency. The subordinated bond bears interest at a fixed rate of 3.75 % p.a.
during the first ten years of its term and variable interest after that. Inclusion for trading in the Third Market of the Vienna
Stock Exchange took place on 13 April 2017.
A tier 2 subordinated bond with a total nominal value of EUR 500,000,000.00 was placed on 15 June 2022. The sub-
ordinated bond has a term of 20 years and VIG Holding can call it for the first time after 10 years. The bond bears initial
interest at a fixed rate of 4.875% p.a. and will pay variable interest from 15 June 2032 (including), unless called and re-
purchased before this date. The bonds are traded on the Vienna Stock Exchange.
10. UNDERWRITING PROVISIONS
Composition 31.12.2022
31.12.2021
in EUR '000
Provision for unearned premiums 2,232,406
1,863,198
Mathematical reserve 21,484,398
21,937,030
Guaranteed policy benefits 20,947,713
20,616,136
Allocated and committed profit shares 536,685
647,359
Deferred mathematical reserve 0
673,535
Provision for outstanding claims 7,984,212
7,082,488
Provision for premium refunds 224,450
1,599,710
Profit-related premium refunds 414,143
305,586
Profit-unrelated premium-refunds 89,824
87,560
Deferred profit participation recognised through profit and loss
1
396,541
438,495
Deferred profit participation recognised directly in equity
1 or 2
-676,058
768,069
Other underwriting provisions 62,404
63,801
Total 31,987,870
32,546,227
1
The deferred profit participation is solely due to the profit-related premium refunds.
2
Due to the missing coverage in the undisclosed profit commissions in the profit participation pursuant to the Austrian Insurance Supervision Act (Versicherungsaufsichtsgesetz – VAG), EUR 302,492,000 were
not recognised.
11 8
Annual Financial Report 2022
10.1. Provision for unearned premiums
Development 2022
2021
in EUR
'000
Book value as of 31.12. of the previous year 1,863,198
1,711,489
Exchange rate differences -36,691
-29,592
Book value as of 1.1. 1,826,507
1,681,897
Additions 1,965,769
1,673,061
Amount used/released -1,603,411
-1,491,760
Changes in scope of consolidation 43,541
0
Book value as of 31.12. 2,232,406
1,863,198
Maturity structure 31.12.2022
31.12.2021
in EUR '000
up to one year 1,901,764
1,620,528
more than one year up to five years 262,446
209,487
more than five years up to ten years 49,320
25,581
more than ten years 18,876
7,602
Total 2,232,406
1,863,198
10.2. Mathematical reserve
Development 2022
2021
in EUR '000
Book value as of 31.12. of the previous year 21,937,030
22,243,792
Exchange rate differences -38,458
81,088
Book value as of 1.1. 21,898,572
22,324,880
Additions 2,357,415
2,149,024
Amount used/released -3,350,998
-2,678,671
Transfer from provisions for premium refunds 295
141,797
Changes in scope of consolidation 579,114
0
Book value as of 31.12. 21,484,398
21,937,030
Maturity structure 31.12.2022
31.12.2021
in EUR '000
up to one year 1,531,178
1,541,997
more than one year up to five years 4,837,750
5,299,718
more than five years up to ten years 3,889,059
3,850,476
more than ten years 11,226,411
11,244,839
Total 21,484,398
21,937,030
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
119
10.3. Provision for outstanding claims
Development 2022
2021
in EUR '000
Book value as of 31.12. of the previous year 7,082,488
6,345,913
Exchange rate differences -18,712
12,595
Book value as of 1.1. 7,063,776
6,358,508
Changes in scope of consolidation 74,468
0
Additions of provision for outstanding claims 5,931,877
5,217,594
for claims paid occurred in the reporting period 5,234,520
4,493,352
for claims paid occurred in previous periods 697,357
724,242
Use/release of provision -5,085,909
-4,493,529
for claims paid occurred in the reporting period -2,960,354
-2,505,507
for claims paid occurred in previous periods -2,125,555
-1,988,022
Other changes 0
-85
Book value as of 31.12. 7,984,212
7,082,488
Maturity structure 31.12.2022
31.12.2021
in EUR '000
up to one year 3,544,453
3,178,391
more than one year up to five years 2,547,999
2,208,485
more than five years up to ten years 1,027,287
925,165
more than ten years 864,473
770,447
Total 7,984,212
7,082,488
EUR 127,097,000 (EUR 126,769,000) in recourse claims were deducted from the provision for outstanding claims. A detailed
presentation of the change in gross loss reserve for the property and casualty line of business is provided on page 93.
1 20
Annual Financial Report 2022
10.4. Provision for premium refunds
Development 2022
2021
in EUR '000
Provision for premium refunds
Book value as of 31.12. of the previous year 393,146
393,873
Exchange rate differences 2,636
3,248
Book value as of 1.1. 395,782
397,121
Additions 1,591,353
427,892
Amount used/released -1,483,091
-290,070
Changes in scope of consolidation 218
0
Transfer to mathematical reserve -295
-141,797
Book value as of 31.12. 503,967
393,146
Deferred profit participation
Book value as of 31.12. of the previous year 1,206,564
1,477,543
Exchange rate differences 2,447
0
Book value as of 1.1. 1,209,011
1,477,543
Changes in scope of consolidation -50,495
0
Unrealised gains and losses on financial assets available for sale -1,501,104
-323,279
Actuarial gains and losses from provisions for employee benefits 56,977
14,515
Revaluations recognised through profit and loss 6,094
37,785
Book value as of 31.12. -279,517
1,206,564
Provision for premium refunds incl. deferred profit participation 224,450
1,599,710
10.5. Other underwriting provisions
Development 2022
2021
in EUR '000
Book value as of 31.12. of the previous year 63,801
57,445
Exchange rate differences -716
-42
Book value as of 1.1. 63,085
57,403
Additions 16,148
25,252
Amount used/released -18,303
-18,854
Changes in scope of consolidation 1,474
0
Book value as of 31.12. 62,404
63,801
Other underwriting provisions are primarily a provision for guaranteed interest for the PAC Doverie in Bulgaria and the
provision for cancellations.
Maturity structure 31.12.2022
31.12.2021
in EUR '000
up to one year 22,700
20,666
more than one year up to five years 9,492
11,268
more than five years up to ten years 1,668
1,381
more than ten years 28,544
30,486
Total 62,404
63,801
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
121
11. UNDERWRITING PROVISIONS FOR UNIT- AND INDEX-LINKED LIFE INSURANCE
Composition 31.12.2022
31.12.2021
in
EUR '000
Unit-linked life insurance 6,499,930
7,302,876
Index-linked life insurance 402,780
885,917
Total 6,902,710
8,188,793
Development 2022
2021
in EUR '000
Book value as of 31.12. of the previous year 8,188,793
7,617,216
Exchange rate differences -15,184
42,741
Book value as of 1.1. 8,173,609
7,659,957
Additions 950,206
1,624,302
Amount used/released -2,401,732
-1,095,466
Changes in scope of consolidation 180,627
0
Book value as of 31.12. 6,902,710
8,188,793
Maturity structure 31.12.2022
31.12.2021
in EUR '000
up to one year 269,432
728,456
more than one year up to five years 1,243,196
1,202,133
more than five years up to ten years 979,990
1,183,717
more than ten years 4,410,092
5,074,487
Total 6,902,710
8,188,793
12. NON-UNDERWRITING PROVISIONS
Composition 31.12.2022
31.12.2021
in EUR '000
Provisions for pensions and similar obligations 314,119
539,249
Provision for pension obligations 214,244
436,191
Provision for severance obligations 99,875
103,058
Provisions for other employee benefits 59,848
57,256
Other non-underwriting provisions 323,738
293,684
Total 697,705
890,189
1 22
Annual Financial Report 2022
Provision for pension obligations
Development of DBO 2022
2021
in EUR '000
Present value of the obligations (DBO) as of 31.12. of the previous year 828,764
894,169
Exchange rate differences -186
-7
Present value of the obligations (DBO) as of 1.1. 828,578
894,162
Current service costs 12,094
13,755
Past service costs 55
8
Interest expense 8,120
6,561
Remeasurement -224,429
-53,829
Actuarial gain/loss demographic 19
-1
Actuarial gain/loss financial -210,521
-42,770
Experience adjustment -13,927
-11,058
Settlement payments 2
-1
Benefits paid -31,362
-30,843
Changes in scope of consolidation 1,050
-1,049
Present value of the obligations (DBO) as of 31.12. 594,108
828,764
thereof active personnel 144,668
254,349
thereof DBO retirees 449,440
574,415
Development of plan assets 2022
2021
in EUR '000
Plan assets as of 31.12. of the previous year 392,573
408,549
Plan assets as of 1.1. 392,573
408,549
Interest income 3,844
3,007
Remeasurement -187
-325
Net return on assets -187
-325
Contributions* 10,344
7,930
Benefits paid -26,710
-26,588
Plan assets as of 31.12. 379,864
392,573
*
The contributions shown were paid in full by the employers.
Development of provision 2022
2021
in EUR
'000
Book value as of 31.12. of the previous year 436,191
485,620
Exchange rate differences -186
-7
Book value as of 1.1. 436,005
485,613
Current service costs 12,094
13,755
Past service costs 55
8
Interest expense 4,276
3,554
Remeasurement -224,242
-53,504
Net return on assets 187
325
Actuarial gain/loss demographic 19
-1
Actuarial gain/loss financial -210,521
-42,770
Experience adjustment -13,927
-11,058
Contributions* -10,344
-7,930
Settlement payments 2
-1
Benefits paid -4,652
-4,255
Changes in scope of consolidation 1,050
-1,049
Book value as of 31.12. 214,244
436,191
*
The contributions shown were paid in full by the employers.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
123
Additional information for the Austrian companies
The plan assets consist of the following:
Structure of financial investments in the mathematical reserve for occupational group insurance 31.12.2022
31.12.2021
in %
Wiener Städtische and VIG Holding 100.00
100.00
Fixed-interest securities 95.46
92.93
Loans 1.40
1.47
Bank deposits 1.37
3.74
Shares, supplementary capital, profit participation rights, participation capital 1.77
1.86
Donau Versicherung 100.00
100.00
Fixed-interest securities 97.04
99.92
Bank deposits 2.96
0.08
The asset allocation of the actuarial reserve for occupational group insurance is structured according to the maturity of the
liabilities. Pension contributions are expected to be EUR 22,110,000 in financial year 2023 (ACTUAL in 2022:
EUR 10,344,000 incl. transfers).
Pension sensitivity analysis Variation
DBO
Change
in %
in EUR '000
in %
Base parameters 583,746
Interest rate +0.5
551,285
-5.56
-0.5
619,671
6.15
Future salary increases +0.5
587,475
0.64
-0.5
580,286
-0.59
Future pension increases +0.5
615,956
5.52
-0.5
554,076
-5.08
Employee turnover +2.5
567,478
-2.79
-2.5
584,930
0.20
Mortality +5.0
574,340
-1.61
-5.0
592,810
1.55
13. LIABILITIES EXCL. SUBORDINATED LIABILITIES
Composition 31.12.2022
31.12.2021
in EUR '000
Underwriting 1,336,601
1,166,270
Liabilities from direct business 1,098,200
1,008,912
to policyholders 543,931
562,792
to insurance intermediaries 325,630
269,732
to insurance companies 228,639
176,388
Liabilities from reinsurance business 215,288
133,544
Deposits from ceded reinsurance business 23,113
23,814
Non-underwriting 1,851,774
1,734,010
Liabilities to financial institutions 343,898
351,087
Other liabilities 1,507,876
1,382,923
Total 3,188,375
2,900,280
1 24
Annual Financial Report 2022
Composition of Other liabilities 31.12.2022
31.12.2021
in EUR '000
Tax liabilities (excl. income taxes), levies and fees 116,432
96,683
Liabilities for social security 23,158
21,949
Property management, building contract and property transfer liabilities 24,870
16,821
Personnel-related liabilities 172,174
153,998
Liabilities for unpaid incoming invoices 142,771
126,598
Interest payable for subordinated liabilities 42,914
32,313
Lease liabilities 183,126
181,048
Liabilities from sureties 66,231
59,816
Financing liabilities* 594,958
597,319
Other liabilities 141,242
96,378
Total 1,507,876
1,382,923
*Includes derivative liabilities and other financing liabilities
Maturity structure 31.12.2022 31.12.2021
Underwriting
Non-underwriting
Total
Total
in EUR '000
up to one year 1,273,123
961,093
2,234,216
1,912,783
more than one year up to five years 39,752
207,549
247,301
295,545
more than five years up to ten years 17,745
87,558
105,303
92,351
more than ten years 5,981
595,574
601,555
599,601
Total 1,336,601
1,851,774
3,188,375
2,900,280
14. CONTINGENT LIABILITIES AND RECEIVABLES
Litigation relating to coverage
In their capacity as insurance companies, the Group companies are involved in a number of court proceedings as de-
fendants 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 opinion of the Group, adequate provisions proportionate to the amount in dispute have been
established for all claims in accordance with the law.
Off-balance sheet claims 31.12.2022
31.12.2021
in EUR '000
Contingent receivables 9,082
314
The increase in contingent receivables is due to a bank guarantee granted.
Off-balance sheet commitments 31.12.2022
31.12.2021
in EUR '000
Liabilities and assumed liabilities 0
750
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
125
NOTES TO THE CONSOLIDATED INCOME STATEMENT
15. PREMIUMS WRITTEN – GROSS
Composition 2022
Motor own
damage
insurance
(Casco)
Motor third
party liability
insurance
Other property
and casualty
insurance
Life insurance
– regular
premium
Life insurance
– single
premium
Health
insurance
Total
in EUR '000
Austria 337,099
340,237
1,592,050
1,206,922
182,067
480,009
4,138,384
Czech Republic 327,324
389,016
632,102
721,013
28,019
24,647
2,122,121
Poland 200,604
307,037
498,626
165,049
142,972
38,593
1,352,881
Extended CEE 673,547
809,842
830,881
647,191
423,245
208,538
3,593,244
Special Markets 88,788
90,099
334,760
199,900
83,853
48,787
846,187
Group Functions 0
0
2,223,272
40,176
0
34,377
2,297,825
Subtotal 1,627,362
1,936,231
6,111,691
2,980,251
860,156
834,951
14,350,642
Consolidation -1,791,400
Total 12,559,242
Composition 2021
Motor own
damage
insurance
(Casco)
Motor third
party liability
insurance
Other property
and casualty
insurance
Life insurance
– regular
premium
Life insurance
– single
premium
Health
insurance
Total
in EUR '000
Austria 316,921
327,699
1,499,767
1,208,158
228,008
467,890
4,048,443
Czech Republic 279,235
349,310
526,050
659,140
30,204
21,000
1,864,939
Poland 192,220
310,739
444,957
166,804
135,654
29,417
1,279,791
Extended CEE 566,526
584,560
621,151
527,891
423,819
162,786
2,886,733
Special Markets 47,251
39,958
270,776
88,844
50,900
33,957
531,686
Group Functions 0
0
1,904,412
32,535
0
28,070
1,965,017
Subtotal 1,402,153
1,612,266
5,267,113
2,683,372
868,585
743,120
12,576,609
Consolidation
-1,574,043
Total
11,002,566
126
Annual Financial Report 2022
16. F
INANCIAL RESULT EXCL. RESULT FROM SHARES IN AT EQUITY CONSOLIDATED COMPANIES
Composition Austria Czech Republic Poland Extended CEE
2022
2021
2022
2021
2022
2021
2022
2021
in EUR '000
Current income 659,111
646,176
94,030
73,422
37,889
23,216
151,514
115,924
Appreciation 1,729
1,517
1,543
4,461
491
1,503
7,674
5,526
thereof reversal of impairment 0
0
0
0
0
0
337
334
Gains from disposal 138,750
55,039
22,250
17,918
143
9,351
13,320
19,536
Other income 60,188
59,812
7,064
10,066
6,652
7,544
41,412
29,495
Total income 859,778
762,544
124,887
105,867
45,175
41,614
213,920
170,481
Depreciation 169,185
56,411
4,776
4,950
3,234
5,911
29,460
9,062
thereof impairment 112,555
6,635
37
916
0
4,000
7,514
228
Exchange rate differences 0
-127 287
2,280
-248 145
-8,739 1,596
Losses from disposal 26,028
10,702
28,743
11,235
1,192
804
26,204
1,066
Interest expenses 50,647
55,792
15,415
5,034
13,098
1,487
14,289
5,489
Interest expenses for personnel
provisions 4,486
3,632
0
0
0
0
0
0
Interest expenses for liabilities to
financial institutions
1,899
2,159
0
0
0
0
4
0
Interest expenses for financing
liabilities 840
978
0
0
0
0
350
221
Interest expenses for subordinate
liabilities
35,989
35,966
1,131
1,083
612
39
3,097
893
Interest expenses for lease liabilities 1,564
1,772
993
774
174
118
751
714
Other interest expenses 5,869
11,285
13,291
3,177
12,312
1,330
10,087
3,661
Other expenses 57,236
59,665
8,064
11,389
8,350
9,321
24,520
23,179
Managed portfolio fees 4,520
4,367
1,416
1,394
1,838
3,494
1,317
1,212
Asset management expenses 52,133
54,880
3,616
2,848
4,732
4,579
21,299
21,331
Other expenses 583
418
3,032
7,147
1,780
1,248
1,904
636
Total expenses 303,096
182,443
57,285
34,888
25,626
17,668
85,734
40,392
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
127
Composition Special Markets Group Functions Consolidation Total
2022
2021
2022
2021
2022
2021
2022
2021
in EUR '000
Current income 57,991
34,270
121,635
82,411
-88,513
-60,453
1,033,657
914,966
Appreciation 7
66
0
3,100
0
0
11,444
16,173
thereof reversal of impairment 7
66
0
3,100
0
0
344
3,500
Gains from disposal 661
595
6,303
8,745
0
0
181,427
111,184
Other income 485
654
17,565
10,633
-433
-1,007
132,933
117,197
Total income 59,144
35,585
145,503
104,889
-88,946
-61,460
1,359,461
1,159,520
Depreciation 2,725
546
46,137
27,403
0
0
255,517
104,283
thereof impairment 2,179
33
17,682
13,200
0
0
139,967
25,012
Exchange rate differences -99,491
-2,851
943
6,193
-193
-163
-107,441
7,073
Losses from disposal 560
97
17,278
11,829
0
0
100,005
35,733
Interest expenses 887
221
91,377
90,653
-83,835
-56,125
101,878
102,551
Interest expenses for personnel
provisions 0
0
704
520
0
0
5,190
4,152
Interest expenses for liabilities to
financial institutions
0
0
3,146
3,276
0
0
5,049
5,435
Interest expenses for financing
liabilities 32
54
26,794
30,090
-21,445
-25,597
6,571
5,746
Interest expenses for subordinate
liabilities
0
0
56,894
50,000
-24,735
-22,432
72,988
65,549
Interest expenses for lease liabilities 316
56
87
47
-465
-341
3,420
3,140
Other interest expenses 539
111
3,752
6,720
-37,190
-7,755
8,660
18,529
Other expenses 1,919
1,931
130,826
198,413
-360
-1,036
230,555
302,862
Managed portfolio fees 0
0
0
0
0
0
9,091
10,467
Asset management expenses 1,856
1,800
104,634
157,466
0
0
188,270
242,904
Other expenses 63
131
26,192
40,947
-360
-1,036
33,194
49,491
Total expenses -93,400
-56
286,561
334,491
-84,388
-57,324
580,514
552,502
Information on operating expenses for investment property is provided in Note 2.1. Property on page 100.
128
Annual Financial Report 2022
Composition 2022 2021
Income Current
income
Appreciation
Gains from
disposal
Current
income
Appreciation
Gains from
disposal
in EUR '000
Property 113,854
275
4,479
101,972
3,385
4,470
Loans 80,281
69
231
77,326
115
9,147
Loans 44,441
69
1
41,243
115
9,138
Reclassified loans 4,409
0
202
7,775
0
0
Bonds classified as loans 31,431
0
28
28,308
0
9
Financial assets held to maturity – bonds 69,715
0
1,426
67,227
0
9
Financial assets reclassified as held to maturity – bonds 12,039
0
0
14,091
0
0
Financial assets available for sale 683,887
0
159,729
605,638
0
86,419
Bonds 591,328
0
54,949
534,566
0
39,665
Shares and other participations 46,771
0
31,989
22,713
0
21,773
thereof participations 27,147
0
162
9,024
0
2,117
Investment funds 45,788
0
72,791
48,359
0
24,981
Financial assets recognised at fair value through profit and
loss* 3,379
11,100
15,539
3,241
12,673
9,986
Other investments 27,712
0
23
20,973
0
1,153
Unit- and index-linked life insurance 42,790
0
0
24,498
0
0
Total 1,033,657
11,444
181,427
914,966
16,173
111,184
*Including held for trading
EUR 286,254,000 (EUR 75,060,000) of financial assets available for sale were reclassified from shareholders’ equity to the
income statement in the current reporting period.
Composition 2022 2021
Expenses Depreciation
Exchange rate
differences
Losses from
disposal
Depreciation
Exchange rate
differences
Losses from
disposal
in EUR '000
Property 90,616
0
97
73,413
0
30
Loans 12,814
143
620
3,500
188
183
Loans 814
-17 500
3,500
-24 9
Reclassified loans 0
0
0
0
0
174
Bonds classified as loans 12,000
160
120
0
212
0
Financial assets held to maturity – bonds 399
-1,055 0
0
827
3
Financial assets reclassified as held to maturity – bonds 0
17
87
0
46
0
Financial assets available for sale 126,478
-106,216 70,993
19,824
3,367
19,440
Bonds 100,927
-105,796 45,444
0
2,696
4,843
Shares and other participations 10,477
115
4,093
19,461
202
3,697
Investment funds 15,074
-535 21,456
363
469
10,900
Financial assets recognised at fair value through profit and
loss* 25,210
1,758
27,543
7,546
2,280
13,449
Other investments 0
-2,088 665
0
365
2,628
Total 255,517
-107,441 100,005
104,283
7,073
35,733
*Including held for trading
Interest expenses and other expenses result from items on the liabilities side of the balance sheet or from business
operations and therefore cannot be directly allocated to an investment class.
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17. RESULT FROM SHARES IN AT EQUITY CONSOLIDATED COMPANIES
Composition 2022
2021
in EUR '000
Income 18,287
24,872
Current result 18,287
24,872
18. OTHER INCOME AND EXPENSES
Composition 2022
2021
in EUR '000
Other income 185,859
165,789
Underwriting 94,328
100,649
Non-underwriting 91,531
65,140
Other expenses 421,480
317,902
Underwriting 325,108
219,804
Non-underwriting 96,372
98,098
Details of other expenses 2022
2021
in EUR '000
Other expenses 421,480
317,902
thereof creation of allowances for receivables and receivable write-offs 61,586
39,858
thereof write-downs of insurance portfolio and customer base 30,210
8,677
thereof brokering expenses 2,205
2,037
thereof underwriting taxes 120,289
48,754
thereof exchange rate losses 47,277
43,997
thereof expenses related to leases 27,688
28,584
thereof other contributions and fees 19,023
14,191
thereof expenses for government-imposed contributions 27,216
27,038
thereof creation of other provisions 18,256
30,575
The increase in underwriting taxes is predominantly due to the additional insurance tax in Hungary. Details are listed on
page 55.
19. EXPENSES FOR CLAIMS AND INSURANCE BENEFITS – RETENTION
All payments to policyholders arising from loss events, claims settlement expenses directly related to loss events, and
internal costs attributable to claims settlement under the allocation according to origin principle, are shown as expenses for
claims and insurance benefits. Expenses for loss prevention are also reported in this item. Expenses for claims and
insurance benefits are reduced by the income gained from using existing contractual and statutory avenues of recourse
(this applies in particular to property and casualty insurance). Changes in the underwriting provisions are also reported in
expenses for claims and insurance benefits.
1 30
Annual Financial Report 2022
Composition 2022
2021
in EUR '000
Expenses for claims and insurance benefits – gross 8,951,798
8,081,691
Payments for claims and insurance benefits 8,701,691
7,754,860
Changes in the provision for outstanding claims 847,376
712,195
Change in mathematical reserve -824,453
-537,988
Change in other underwriting provisions -1,560
3,012
Expenses for profit-related and profit-unrelated premium refunds 228,744
149,612
Expenses for claims and insurance benefits – reinsurers´ share -1,039,762
-945,130
Payments for claims and insurance benefits -661,135
-545,920
Changes in the provision for outstanding claims -351,738
-373,713
Change in mathematical reserve -14
-520
Change in other underwriting provisions 681
1,763
Expenses for profit-unrelated premium refunds -27,556
-26,740
Expenses for claims and insurance benefits – retention 7,912,036
7,136,561
Payments for claims and insurance benefits 8,040,556
7,208,940
Changes in the provision for outstanding claims 495,638
338,482
Change in mathematical reserve -824,467
-538,508
Change in other underwriting provisions -879
4,775
Expenses for profit-related and profit-unrelated premium refunds 201,188
122,872
20. ACQUISITION AND ADMINISTRATIVE EXPENSES
The acquisition and administrative expenses item is broken down into acquisition expenses, administrative expenses less
reinsurance commissions and profit commissions for reinsurance cessions. It therefore includes VIG Insurance Group
personnel and materials expenses allocated according to the origin principle.
Composition 2022
2021
in EUR '000
Acquisition expenses 2,560,636
2,211,125
Commission expenses* 1,861,517
1,573,075
Pro rata personnel expenses 417,303
377,940
Pro rata material expenses 281,816
260,110
Administrative expenses 578,992
510,949
Pro rata personnel expenses 272,535
237,997
Pro rata material expenses 306,457
272,952
Reinsurance commissions -209,163
-185,246
Total 2,930,465
2,536,828
*Includes commissions of EUR 1,802,169,000 (EUR 1,481,503,000) for direct insurance business
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131
21. TAXES
Composition 2022
2021
in EUR '000
Actual taxes 88,538
270,566
from the current period 78,616
263,908
from previous periods 9,922
6,658
Deferred taxes 9,593
-147,227
Change of deferred taxes in the current year 10,621
-131,532
Deferred taxes due to temporary differences relating to other periods 206
-12,467
Deferred taxes due to loss carry forwards relating to other periods -1,234
-3,228
Total 98,131
123,339
Reconciliation 2022
2021
in EUR '000
Expected tax rate in % 25.0%
25.0%
Result before taxes 562,422
511,333
Expected tax expenses 140,606
127,833
Adjusted for tax effects due to:
Different local tax rate -28,412
-41,668
Change of tax rates -2,788
476
Non-deductible expenses 95,793
110,625
Income not subject to tax -97,196
-93,774
Taxes from previous years 8,894
-9,037
Non-recognition/reduction of deferred tax assets due to temporary differences 5,675
1,936
Non-recognition/reduction of deferred tax assets due to loss carry forwards 5,160
3,355
Effects due to group taxation/profit transfers 458
3,859
Tax effects due to deferred profit participation -44,208
9,421
Others 14,149
10,313
Effective tax expenses 98,131
123,339
Effective tax rate in % 17.4%
24.1%
The income tax rate of the parent company is used as the group tax rate.
The non-deductible expenses consist primarily of depreciation and the income not subject to tax is mainly the result of
appreciation, dividends and interest received.
22. EARNINGS PER SHARE
Earnings per share 2022
2021
Result for the period EUR '000 464,291
387,994
Non-controlling interests in net result for the period EUR '000 1,650
-12,264
Result for the period less non-controlling interests EUR '000 465,941
375,730
Interest expenses for hybrid capital EUR '000 7,469
0
Attributable result EUR '000 458,472
375,730
Number of shares at closing date units 128,000,000
128,000,000
Earnings per share* EUR 3.58
2.94
*The calculation of these figures considers the interest expenses for hybrid capital. The undiluted earnings per share equals the diluted earnings per share .
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Annual Financial Report 2022
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
23. LIABILITIES FROM FINANCING ACTIVITIES
Development 31.12.2022
Subordinated liabilities
(including interest)
1
Liabilities to financial
institutions
Lease liabilities
Financing liabilities
2
in EUR '000
Book value as of 31.12. of the previous year 1,493,599
351,087
181,048
594,632
Cash changes 223,687
-12,599
-34,244
-6,915
Cash inflows 500,000
55,007
0
13,000
Payments -215,600
-63,117
-34,244
-13,714
Interest paid -60,713
-4,489
0
-6,201
Non-cash changes 71,995
5,410
36,322
5,181
Additions 71,327
5,410
34,736
6,567
Disposals 0
0
-20
-981
Changes in scope of consolidation 0
0
203
1,436
Reclassifications 0
0
0
-1,823
Measurement changes 0
0
0
-19
Exchange rate differences 668
0
1,403
1
Book value as of 31.12. 1,789,281
343,898
183,126
592,898
1
The interest payable for subordinated liabilities is included in other liabilities.
2
Contains derivative liabilities from financing liabilities and other financing liabilities
Development 31.12.2021
Subordinated liabilities
(including interest)
1
Liabilities to financial
institutions
Lease liabilities
Financing liabilities
2
in EUR '000
Book value as of 31.12. of the previous year 1,496,361
325,267
189,762
102,204
Cash changes -68,341
19,596
-28,535
486,944
Cash inflows 0
35,000
0
488,000
Payments -3,790
-10,733
-28,535
-33
Interest paid -64,551
-4,671
0
-1,023
Non-cash changes 65,579
6,224
19,821
5,484
Additions 64,431
6,221
16,093
5,741
Disposals 0
0
-17
-260
Changes in scope of consolidation 0
0
828
0
Measurement changes 0
0
0
2
Exchange rate differences 1,148
3
2,917
1
Book value as of 31.12. 1,493,599
351,087
181,048
594,632
1
The interest payable for subordinated liabilities is included in other liabilities.
2
Contains derivative liabilities from financing liabilities and other financing liabilities
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ADDITIONAL DISCLOSURES
24. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENT HIERARCHY
Fair values and book values of financial instruments and investments 31.12.2022
Book value
Level 1
Level 2
Level 3
Fair value
in EUR '000
Property 3,128,977
0
83,589
5,041,467
5,125,056
Owner-occupied property 483,345
0
39,007
820,867
859,874
Investment property 2,645,632
0
44,582
4,220,600
4,265,182
Shares in at equity consolidated companies 287,960
Loans 2,119,428
188,803
1,750,389
46,392
1,985,584
Loans 1,306,237
140,612
994,247
28,485
1,163,344
Reclassified loans 91,834
29,262
69,354
0
98,616
Bonds classified as loans 721,357
18,929
686,788
17,907
723,624
Other financial assets 25,555,212
20,665,567
3,776,220
874,407
25,316,194
Financial assets held to maturity 2,278,932
1,566,204
466,374
11,515
2,044,093
Financial assets reclassified as held to maturity 155,858
141,504
10,175
0
151,679
Financial assets available for sale 22,915,672
18,847,253
3,264,597
803,822
22,915,672
Financial assets recognised at fair value through profit and loss
1
204,750
110,606
35,074
59,070
204,750
Other investments 1,248,776
1,248,776
Financial investments for unit- and index-linked life insurance 7,164,129
7,164,129
7,164,129
Subordinated liabilities 1,746,366
0
1,628,759
21,369
1,650,128
Liabilities to financial institutions 343,898
343,898
Financing liabilities
2
592,898
0
320,939
101,154
422,093
1
including held for trading
2
Not including derivative liabilities
Fair values and book values of financial instruments and investments 31.12.2021
Book value
Level 1
Level 2
Level 3
Fair value
in EUR '000
Property 2,850,588
0
64,483
4,617,616
4,682,099
Owner-occupied property 472,303
0
26,866
788,603
815,469
Investment property 2,378,285
0
37,617
3,829,013
3,866,630
Shares in at equity consolidated companies 276,913
Loans 2,156,064
58,403
2,280,842
40,412
2,379,657
Loans 1,273,633
0
1,322,849
26,155
1,349,004
Reclassified loans 106,677
33,681
92,792
0
126,473
Bonds classified as loans 775,754
24,722
865,201
14,257
904,180
Other financial assets 28,653,998
23,486,989
4,427,171
838,085
28,752,245
Financial assets held to maturity 2,255,318
1,767,514
541,052
9,646
2,318,212
Financial assets reclassified as held to maturity 302,402
327,417
10,338
0
337,755
Financial assets available for sale 25,849,069
21,260,626
3,829,911
758,532
25,849,069
Financial assets recognised at fair value through profit and loss
1
247,209
131,432
45,870
69,907
247,209
Other investments 872,227
872,227
Financial investments for unit- and index-linked life insurance 8,525,331
8,525,331
8,525,331
Subordinated liabilities 1,461,286
0
1,586,047
21,199
1,607,246
Liabilities to financial institutions 351,087
351,087
Financing liabilities
2
594,614
0
487,493
102,870
590,363
1
including held for trading
2
Not including derivative liabilities
134
Annual Financial Report 2022
Information on the nature and extent of risks arising from financial instruments is provided in the Financial instruments and
risk management section on page 71.
Property (fair values) 31.12.2022
31.12.2021
in EUR '000
Owner-occupied property 859,874
815,469
evaluated by an independent expert 394,979
348,034
evaluated by an internal expert 464,895
467,435
Investment property 4,265,182
3,866,630
evaluated by an independent expert* 1,017,714
916,684
evaluated by an internal expert 3,247,468
2,949,946
*This corresponds to 23.86% (23.71%) of the fair value of investment property.
Measurement process
The measurement process aims to determine the fair value of financial assets using price quotations that are publicly
available in active markets or valuations based on recognised economic models using observable inputs. If public price
quotations and observable market data are not available for an investment, the investment is generally measured using
valuation reports prepared by appraisers (e.g. expert reports). The organisational units responsible for appraisal of
investments are independent of the units that assume the risk exposure of the investments, thereby ensuring separation of
functions and responsibilities.
As a rule, the aim is to use the same price within VIG Insurance Group to value a particular security on each valuation date.
In practice, however, situations occur when the cost of process compliance would be inappropriate. For example, the local
provisions in some countries in which VIG Insurance Group operates require the insurance companies there to use prices
on the local stock exchange to value certain investments. In this case, if the same security is held by other companies in
VIG Insurance Group, these companies might use another price source for valuation.
Institutional funds are another example where uniform valuation can only be achieved at an inordinately high cost. The
Austrian companies hold varying amounts of institutional funds that are required under the IFRS to be included in the
consolidated financial statements. However, the valuation logic of an institutional fund requires the fund value (NAV) on a
particular date to be calculated using the (in general, closing) prices on the previous day. In this case, a security that is both
held in an institutional fund and directly held will be valued using different prices.
The following items are measured at fair value:
• Financial assets available for sale,
• Financial assets recognised at fair value through profit and loss (incl. held for trading),
• Derivative financial instruments (assets/liabilities), and
• Financial instruments for unit- and index-linked life insurance.
Balance sheet items that are not reported at fair value are subject to a non-recurring measurement at fair value. These
items are measured at fair value when events occur that indicate that the book value might no longer be recoverable
(impairment).
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135
The following items are not reported at fair value:
• Financial assets held to maturity,
• Shares in at equity consolidated companies,
• Property (owner-occupied and investment property),
• Loans, and
• Receivables.
REAL ESTATE VALUATION
The capitalised earnings method and discounted cash flow method are the main valuation methods used in VIG Insurance
Group to calculate the fair value of properties.
Each time valuation is performed, the methods are verified which allow the fair value of a property to be calculated. VIG
Insurance Group mainly uses the capitalised earnings method. In rare cases, a discounted cash flow method is also used,
provided it can be used to determine the highest and best use value for the property type.
Capitalised earnings method
In this method, the value of a property is determined by using an appropriate interest rate to capitalise expected or received
future gross profits over the expected useful life. The net operating income is calculated by deducting actual operating,
maintenance and administrative expenses (management expenses). An allowance for lost rental income and any liquidation
proceeds and costs are also taken into account. The rate used to calculate capitalised earnings is based on the achievable
return on investment. Net operating income minus the return on the land is capitalised at this rate over the remaining useful
life to calculate the capitalised earnings value of the structural facility. This is added to the land value to calculate the total
capitalised earnings value of the property.
Discounted cash flow method
The discounted cash flow method is a valuation method that discounts cash flows during the forecast phase (phase I) back
to the valuation date. Discounting is performed using a rate for a comparable risky investment with property- and market-
specific premiums. The gross profit for the year plus vacancy rental (at current market rent) minus non-allocable
management costs equals the net operating income for the year. The method allows precise analysis of the individual years
of the initial forecast phase so that investments and vacancies can be assigned to individual years and accounted for in
advance. In phase II, the proceeds from a fictitious disposal at the end of the forecast phase (max. 10 years) are calculated
by capitalising future cash flows. The rate used for this calculation is the rate for a comparably risky investment plus market-
and property-specific premiums, less the expected increase in value.
OTHER DISCLOSURES ABOUT THE VALUATION PROCESS
The use of different pricing models and assumptions can lead to differing results for fair value. Changes in the estimates
and assumptions used to determine the fair value of assets in cases where no market price quotations are available may
necessitate a write-up or write-down of the book value of the assets in question and the recognition of the corresponding
income or expense in the income statement.
Certain investments whose fair value is normally not repeatedly measured are measured once at fair value when events or
changes in circumstances indicate that the book value might no longer be recoverable. If financial assets are measured at
136
Annual Financial Report 2022
fair value when impairment is recognised or fair value minus selling costs is used as a measurement basis in accordance
with IFRS 5, a disclosure to this effect is included in Note 16. Financial result excl. result from shares in at equity consolidated
companies starting on page 126 or Note 18. Other income and expenses on page 129.
Measurement hierarchy – Financial instruments recognised at fair value
Measurement hierarchy 31.12.2022 31.12.2021
Financial instruments recognised at fair value Level 1
Level 2
Level 3
Level 1
Level 2
Level 3
in EUR '000
Financial assets
Financial assets available for sale 18,847,253
3,264,597
803,822
21,260,626
3,829,911
758,532
Bonds 16,932,167
3,212,277
268,747
18,334,752
3,721,353
249,107
Shares and other participations 292,941
7,779
312,416
425,500
4,427
341,006
Investment funds 1,622,145
44,541
222,659
2,500,374
104,131
168,419
Financial investments for unit- and index-linked life
insurance 7,164,129
8,525,331
The unrealised effect on the result (net profit or loss) from level 3 financial instruments that are still in the portfolio and whose
fair value is recognised in profit or loss was EUR -345,000 during the reporting year (EUR -578,000).
Reclassification of financial instruments
The companies in VIG Insurance Group regularly review the validity of the last fair value classification performed on each
valuation date. For example, a reclassification is performed, if needed inputs are no longer directly observable in the market.
Reclassifications between Level 1 and 2 primarily occur if liquidity, trading frequency or trading activity of the particular
financial instrument once again, or no longer allows one to conclude that an active market exists. For example, the market
maker for a security frequently changes, with corresponding changes on the 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. As a result of the decentralised structure of VIG Insurance Group, the classifications are generally reviewed by the
local companies at the end of the period. Any reclassifications are presented as if they had taken place at the end of the
period.
Reclassification financial instruments 2022
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
Financial assets available for sale 33
1
31
1
11
The reclassifications between Level 1 and Level 2 are due to changes in liquidity, trading frequency and trading activity. The
reclassification from Level 3 to Level 1 is based on improvements in trading activity. The reclassifications from Level 1 to
Level 3 are primarily based on a worsening of the credit quality or liquidity or on a change in liquidity as part of the sanctions
against Russia. The reclassifications from Level 2 to Level 3 are primarily related to a worsening of credit quality or liquidity.
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Reclassification financial instruments 2021
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
Financial assets available for sale 65
3
1
4
20
Unobservable input factors
Asset class Measurement
methods
Unob-servable input factors Range 2022 2021
from
to
from
to
Property
Capitalised earnings
value
Capitalisation rate in % 0.30
7.47
1.00
7.50
Rental income
in EUR
'000
7
3,999
3
3,765
Land price
in EUR
'000
0
12
0
11
Discounted Cash flow Capitalisation rate in % 3.56
8.26
3.56
8.03
Rental income
in EUR
'000
102
5,699
96.56
6,913
Building rights –
capitalised earnings
value
Capitalisation rate in % 2.5
4
2.5
4
Rental income
in EUR
'000
83
4,378
76.75
4,377
Land prices
in EUR
'000
0.3
0.73
0.25
0.73
Construction interest actually
paid
in % 0.9
5.7
0.2
5.7
Financial assets available
for sale
Present value method Spreads in % -0.52
11.00
-0.13
4.13
Sensitivities
With respect to the value of the share measured using a Level 3 method (multiples approach), VIG Insurance Group assumes
that alternative inputs and alternative methods do not lead to significant changes in value.
The spread assumption is the critical factor for the changes in value of Level 3 measured bonds in the “Financial instruments
available for sale” category and as a result, the sensitivity to this factor is of particular interest.
The most important bonds measured using a Level 3 method in the “Financial instruments available for sale” category are
held by the Austrian and Polish Group companies and show the following sensitivities:
Financial assets available for sale – bonds Fair Value
in EUR '000
Fair value at 31.12.2022 268,747
Spread +50bp -3,234
Effect on the statement of comprehensive income -3,234
138
Annual Financial Report 2022
The following sensitivities result for a part of the portfolio from calculations using the Solvency II partial internal model:
Property Fair Value
in EUR '000
Fair value at 31.12.2022 4,450,470
Rental income -5% 4,282,453
Rental income +5% 4,626,321
Capitalisation rate -50bp 4,758,678
Capitalisation rate +50bp 4,197,701
Land prices -5% 4,420,314
Land prices +5% 4,487,852
Since property is measured at cost, negative sensitivities would only affect profit or loss if property value fell below book
value. Other comprehensive income is therefore unaffected.
Financial instruments reconciliation
Development 2022 2021
Financial assets available for sale Level 1
Level 2
Level 3
Level 1
Level 2
Level 3
in EUR '000
Fair value at 31.12 of the previous year 21,260,626
3,829,911
758,532
21,517,902
3,806,396
659,133
Exchange rate differences 99,058
2,118
144
23,856
7,257
182
Fair value at 1.1. 21,359,684
3,832,029
758,676
21,541,758
3,813,653
659,315
Reclassification between securities categories 0
0
0
0
0
15
Reclassification to Level 40,253
21,802
196,599
9,421
65,879
50,951
Reclassification from Level -207,587
-47,205
-3,862
-93,988
-20,560
-11,703
Additions 4,032,490
640,775
136,093
2,640,362
625,106
192,969
Disposals -3,576,183
-550,474
-81,488
-2,199,866
-530,097
-96,578
Changes in scope of consolidation 645,218
18,243
-71,233
0
0
-32,037
Changes in value recognised in profit and loss 0
0
0
0
0
0
Changes recognised directly in equity -3,411,639
-649,444
-40,598
-637,023
-123,926
15,241
Impairments -34,983
-1,129
-90,365
-38
-144
-19,641
Fair value at 31.12. 18,847,253
3,264,597
803,822
21,260,626
3,829,911
758,532
For information on the effects of changes in value recognised in profit or loss, please refer to Note 16. Financial result excl.
result from shares in at equity consolidated companies on page 126.
25. NUMBER OF EMPLOYEES AND PERSONNEL EXPENSES
Number of employees 2022
2021
Number
Sales representatives 14,797
13,142
Office staff 14,035
12,542
Total 28,832
25,684
The employee figures shown are average values based on full-time equivalents.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
139
Personnel expenses 2022
2021
in EUR '000
Wages and salaries 695,669
624,170
Expenses for severance benefits and payments to company pension plans 7,218
8,624
Expenses for retirement provisions 17,538
18,970
Mandatory social security contributions and expenses 190,522
171,955
Other social security expenses 27,893
22,619
Total 938,840
846,338
thereof sales representatives 411,189
378,722
thereof office staff 527,651
467,616
26. AUDITING FEES AND AUDITING SERVICES
KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft (KPMG Austria GmbH) was the auditor of
these consolidated financial statements. The following expenses were recognised during the financial year for services
provided by KPMG Austria GmbH and the Austrian member firms (KPMG Austria-wide):
Composition 2022 2021
KPMG Austria wide
KPMG Austria GmbH*
Total
Total
in EUR '000
Audit of consolidated financial statements 0
745
745
265
Audit of parent company financial statements 0
62
62
59
Other audit services 273
718
991
423
Tax advisory fees 3
0
3
9
Fees for audit-related services 40
136
176
608
Total 316
1,661
1,977
1,364
*
Reference is made to the decision of the supervisory authority for financial statement auditors dated 14 April 2022 and to the amending decision dated 20 April 2022, which sets out the release of KPMG Austria
GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft as auditor of VIG from its requirements pursuant to Art. 4 (2) (1) Regulation EU No. 537/2014. The decision was issued in connection with the
review of an annual financial statement as of 31 March 2022, which became necessary as a result of a bond issuance, and the associated payments.
27. MEMBERS OF MANAGEMENT IN KEY POSITIONS
Supervisory Board
Chairman Günter Geyer
1
st
Deputy Chairman Rudolf Ertl
2
nd
Deputy Chairman Robert Lasshofer
Members Martina Dobringer
Zsuzsanna Eifert
Gerhard Fabisch
Peter Mihók
András Kozma (since 20 May 2022)
Heinz Öhler
Georg Riedl (until 20 May 2022)
Gabriele Semmelrock-Werzer
Katarina Slezáková
Gertrude Tumpel-Gugerell
140
Annual Financial Report 2022
Managing Board
Chairwoman Elisabeth Stadler
Deputy Chairman Hartwig Löger
Members Liane Hirner
Peter Höfinger
Gerhard Lahner
Gábor Lehel
Harald Riener
Peter Thirring
Changes during and after the end of the financial year
The VIG Holding Managing Board will have the following members from 1 July 2023: Mr Löger, Chairman of the Managing
Board (General Manager), Mr Höfinger, Deputy Chairman of the Managing Board (Deputy General Manager), Ms Hirner,
Mr Lahner, Mr Lehel and Mr Riener. All Managing Board terms will expire on 30 June 2027. Ms Stadler and Mr Thirring will,
at their own request, not extend their terms on the Managing Board when they expire on 30 June 2023.
28. AFFILIATED COMPANIES AND PARTICIPATIONS
Company name, registered office Country of domicile Interest 2022
1
Interest 2021
1
Equity 2022
2
Equity 2021
2
in %
in %
in EUR '000
in EUR '000
Fully consolidated companies
"BULSTRAD LIFE VIENNA INSURANCE GROUP" JOINT STOCK
COMPANY, Sofia
Bulgaria
100.00
100.00
12,018
27,375
"Compensa Vienna Insurance Group", ADB, Vilnius Lithuania 100.00
100.00
53,895
86,338
"Grüner Baum" Errichtungs- und Verwaltungsges.m.b.H., Vienna Austria 100.00
100.00
40,043
39,996
365.life, d. s. s., a. s., Bratislava Slovakia 100.00
13,820
AB Modřice, a.s., Prague Czech Republic 100.00
9,332
AEGON Magyarország Általános Biztosító Zártkörűen Működő
Részvénytársaság, Budapest
Hungary
100.00
100,137
AEGON Magyarország Befektetési Alapkezelő Zártkörűen Működő
Részvénytársaság, Budapest
Hungary
100.00
8,415
AEGON Magyarország Pénztárszolgáltató Zártkörűen Működő
Részvéntársaság, Budapest
Hungary
100.00
1,959
Anděl Investment Praha s.r.o., Prague Czech Republic 100.00
100.00
25,465
24,052
Anif-Residenz GmbH & Co KG, Vienna Austria 100.00
100.00
16,617
16,597
Asigurarea Românească - ASIROM Vienna Insurance Group S.A.,
Bucharest
Romania
99.79
99.79
79,442
79,960
ATBIH GmbH, Vienna Austria 100.00
100.00
158,521
173,509
ATRIUM TOWER SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOSCIĄ,
Warsaw
Poland
100.00
100.00
17,867
18,559
Atzlergasse 13-15 GmbH, Vienna Austria 100.00
39
Atzlergasse 13-15 GmbH & Co KG, Vienna Austria 100.00
10,199
AUTODROM SOSNOVÁ u České Lípy a.s., Prague Czech Republic 100.00
1,563
BCR Asigurări de Viaţă Vienna Insurance Group S.A., Bucharest Romania 93.98
93.98
51,794
48,074
Blizzard Real Sp. z o.o., Warsaw Poland 100.00
100.00
3,602
3,347
Brockmanngasse 32 Immobilienbesitz GmbH, Vienna Austria 100.00
3,559
BTA Baltic Insurance Company AAS, Riga Latvia 100.00
100.00
53,934
64,005
Bulgarski Imoti Asistans EOOD, Sofia Bulgaria 100.00
100.00
-1,065
-1,284
Businesspark Brunn Entwicklungs GmbH, Vienna Austria 100.00
100.00
33,456
33,983
CAPITOL, akciová spoločnosť, Bratislava Slovakia 100.00
100.00
1,681
1,562
CENTER Hotelbetriebs GmbH, Vienna Austria 80.00
80.00
41
10
Central Point Insurance IT-Solutions GmbH in Liquidation, Vienna Austria 100.00
100.00
21,634
10,952
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
141
Company name, registered office Country of domicile Interest 2022
1
Interest 2021
1
Equity 2022
2
Equity 2021
2
Česká podnikatelská pojišťovna, a.s., Vienna Insurance Group, Prague Czech Republic 100.00
100.00
108,073
114,722
Compania de Asigurări "DONARIS VIENNA INSURANCE GROUP"
Societate pe Actiuni, Chișinău
Moldova
99.99
99.99
6,251
5,639
Compensa Life Vienna Insurance Group SE, Tallinn Estonia 100.00
100.00
17,151
45,469
Compensa Towarzystwo Ubezpieczeń Na Życie S.A. Vienna Insurance
Group, Warsaw
Poland
99.97
99.97
58,860
59,036
Compensa Towarzystwo Ubezpieczeń S.A. Vienna Insurance Group,
Warsaw
Poland
99.95
99.94
82,233
96,104
CP Solutions a.s., Prague Czech Republic 100.00
100.00
13,514
12,849
DBLV Immobesitz GmbH & Co KG, Vienna Austria 100.00
100.00
3,544
3,025
DBR-Liegenschaften GmbH & Co KG, Stuttgart Germany 100.00
100.00
9,477
8,247
Deutschmeisterplatz 2 Objektverwaltung GmbH, Vienna Austria 100.00
100.00
2,343
2,963
Donau Brokerline Versicherungs-Service GmbH, Vienna Austria 100.00
100.00
101,394
96,047
DONAU Versicherung AG Vienna Insurance Group, Vienna Austria 100.00
100.00
111,462
108,482
DVIB alpha GmbH, Vienna Austria 100.00
100.00
18,506
8,373
DVIB GmbH, Vienna Austria 100.00
100.00
101,186
95,420
DV Immoholding GmbH, Vienna Austria 100.00
100.00
44,200
22,854
ELVP Beteiligungen GmbH, Vienna Austria 100.00
100.00
23,276
23,324
EUROPEUM Business Center s.r.o., Bratislava Slovakia 100.00
100.00
10,301
8,634
Floridsdorf am Spitz 4 Immobilienverwertungs GmbH, Vienna Austria 100.00
100.00
18,819
18,545
Gesundheitspark Wien-Oberlaa Gesellschaft m.b.H., Vienna Austria 100.00
100.00
29,199
29,446
GLOBAL ASSISTANCE, a.s., Prague Czech Republic 100.00
100.00
6,754
6,134
Hansenstraße 3-5 Immobilienbesitz GmbH, Vienna Austria 100.00
100.00
31,121
28,751
HUN BM Korlátolt Felelősségű Társaság, Budapest Hungary 100.00
100.00
4,416
4,830
Insurance Company Vienna osiguranje d.d., Vienna Insurance Group,
Sarajevo
Bosnia-Herzegovina
100.00
100.00
9,735
11,649
INSURANCE ONE-SHAREHOLDER JOINT-STOCK COMPANY BULSTRAD
VIENNA INSURANCE GROUP EAD, Sofia
Bulgaria
100.00
100.00
70,096
76,845
InterRisk Lebensversicherungs-AG Vienna Insurance Group,
Wiesbaden
Germany
100.00
100.00
23,518
23,518
InterRisk Towarzystwo Ubezpieczeń S.A. Vienna Insurance Group,
Warsaw
Poland
100.00
100.00
43,675
72,346
InterRisk Versicherungs-AG Vienna Insurance Group, Wiesbaden Germany 100.00
100.00
53,670
56,120
INTERSIG VIENNA INSURANCE GROUP Sh.A., Tirana Albania 89.98
89.98
7,295
6,648
Joint Stock Company Insurance Company GPI Holding, Tbilisi Georgia 90.00
90.00
20,461
15,100
Joint Stock Company International Insurance Company IRAO, Tbilisi Georgia 100.00
100.00
6,249
4,832
Joint Stock Insurance Company WINNER-Vienna Insurance Group,
Skopje
North Macedonia
100.00
100.00
7,097
7,461
Kaiserstraße 113 GmbH, Vienna Austria 100.00
100.00
2,979
2,798
KÁLVIN TOWER Ingatlanfejlesztési és Beruházási Korlátolt Felelősségű
Társaság, Budapest
Hungary
100.00
100.00
2,231
2,309
KAPITOL, a.s., Brno Czech Republic 100.00
100.00
1,600
1,920
KKB Real Estate SIA, Riga Latvia 100.00
100.00
20,766
20,472
KOMUNÁLNA poisťovňa, a.s. Vienna Insurance Group, Bratislava Slovakia 100.00
100.00
52,644
74,869
KOOPERATIVA poisťovňa, a.s. Vienna Insurance Group, Bratislava Slovakia 98.47
98.47
231,548
385,574
Kooperativa pojišťovna, a.s., Vienna Insurance Group, Prague Czech Republic 97.28
97.28
596,911
682,480
LVP Holding GmbH, Vienna Austria 100.00
100.00
626,967
622,534
MAP-WSV Beteiligungen GmbH, Vienna Austria 100.00
100.00
368,793
307,688
MC EINS Investment GmbH, Vienna Austria 100.00
100.00
19,630
19,726
MERLOT INVESTMENT SPÓŁKA Z OGRANICZONĄ
ODPOWIEDZIALNOŚCIĄ, Warsaw
Poland
100.00
31,881
MH 54 Immobilienanlage GmbH, Vienna Austria 100.00
100.00
25,819
26,356
NNC REAL ESTATE SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOŚCIĄ,
Warsaw
Poland
100.00
100.00
20,099
20,284
Nordbahnhof Projekt EPW8 GmbH & Co KG, Vienna Austria 100.00
97.75
19,187
Nordbahnhof Projekt EPW8 Komplementär GmbH, Vienna Austria 100.00
97.75
34
Nordbahnhof Projekt Taborstraße 123 GmbH & Co KG, Vienna Austria 100.00
100.00
21,142
142
Annual Financial Report 2022
Company name, registered office Country of domicile Interest 2022
1
Interest 2021
1
Equity 2022
2
Equity 2021
2
Nordbahnhof Projekt Taborstraße 123 Komplementär GmbH, Vienna Austria 100.00
100.00
36
Nußdorfer Straße 90-92 Projektentwicklung GmbH & Co KG, Vienna Austria 100.00
100.00
38,364
39,450
OMNIASIG VIENNA INSURANCE GROUP S.A., Bucharest Romania 99.54
99.54
149,548
143,913
OÜ LiveOn Paevalille, Tallinn Latvia 100.00
100.00
86
92
Palais Hansen Immobilienentwicklung GmbH, Vienna Austria 56.55
56.55
35,859
37,277
Passat Real Sp. z o.o., Warsaw Poland 100.00
100.00
-1,361 -1,191
Pension Assurance Company Doverie AD, Sofia Bulgaria 82.59
92.58
32,890
31,402
PFG Holding GmbH, Vienna Austria 89.23
89.23
77,992
78,376
PFG Liegenschaftsbewirtschaftungs GmbH & Co KG, Vienna Austria 92.88
92.88
12,663
12,478
Porzellangasse 4 Liegenschaftsverwaltung GmbH & Co KG, Vienna Austria 100.00
100.00
13,576
12,983
PRIVATE JOINT-STOCK COMPANY "INSURANCE COMPANY "KNIAZHA
LIFE VIENNA INSURANCE GROUP", Kyiv
Ukraine
99.81
99.81
2,922
3,407
Private Joint-Stock Company " Insurance Company "USG ", Kyiv Ukraine 100.00
100.00
16,528
18,653
PRIVATE JOINT-STOCK COMPANY "UKRAINIAN INSURANCE COMPANY
"KNIAZHA VIENNA INSURANCE GROUP", Kyiv
Ukraine
100.00
99.99
10,219
11,478
PROGRESS Beteiligungsges.m.b.H., Vienna Austria 70.00
70.00
17,769
15,825
Projektbau GesmbH, Vienna Austria 100.00
100.00
14,106
15,065
Projektbau Holding GmbH, Vienna Austria 100.00
100.00
14,183
14,185
Rathstraße 8 Liegenschaftsverwertungs GmbH, Vienna Austria 100.00
100.00
1,087
1,656
Ray Sigorta A.Ş., Istanbul Türkiye 94.96
94.96
44,622
28,867
Rößlergasse Bauteil Drei GmbH, Vienna Austria 100.00
100.00
11,841
11,552
Rößlergasse Bauteil Zwei GmbH, Vienna Austria 100.00
100.00
30,241
29,583
S - budovy, a.s., Prague Czech Republic 100.00
100.00
3,189
3,059
Schulring 21 Bürohaus Errichtungs- und Vermietungs GmbH & Co KG,
Vienna
Austria
100.00
100.00
5,737
7,744
SECURIA majetkovosprávna a podielová s.r.o., Bratislava Slovakia 100.00
100.00
7,505
10,305
Senioren Residenz Fultererpark Errichtungs- und Verwaltungs GmbH,
Vienna
Austria
100.00
100.00
-6,998 -6,749
Senioren Residenz Veldidenapark Errichtungs- und Verwaltungs
GmbH, Vienna
Austria
66.70
66.70
8,146
8,211
SIA “Alauksta 13/15”, Riga Latvia 100.00
100.00
937
971
SIA “Artilērijas 35”, Riga Latvia 100.00
100.00
1,146
918
SIA “Ģertrūdes 121”, Riga Latvia 100.00
100.00
3,414
3,379
SIA "Global Assistance Baltic", Riga Latvia 100.00
100.00
287
277
SIA "LiveOn", Riga Latvia 70.00
70.00
26,699
21,530
SIA "LiveOn Stirnu", Riga Latvia 100.00
100.00
1,696
1,702
SIA LiveOn Terbatas, Riga Latvia 100.00
100.00
5,191
5,201
SIA "Urban Space", Riga Latvia 100.00
100.00
481
481
Sigma Interalbanian Vienna Insurance Group Sh.a, Tirana Albania 89.05
89.05
17,077
16,501
SK BM s.r.o., Bratislava Slovakia 100.00
100.00
13,345
13,136
SMARDAN 5 DEVELOPMENT S.R.L., Bucharest Romania 100.00
100.00
5,022
-51
Stock Company for Insurance and Reinsurance MAKEDONIJA Skopje -
Vienna Insurance Group, Skopje
North Macedonia
94.36
94.26
25,898
27,280
SVZ GmbH, Vienna Austria 100.00
100.00
203,598
176,329
SVZD GmbH, Vienna Austria 100.00
100.00
62,031
73,285
SVZI GmbH, Vienna Austria 100.00
100.00
200,314
171,480
T 125 GmbH, Vienna Austria 100.00
100.00
9,179
9,012
TECHBASE Science Park Vienna GmbH, Vienna Austria 100.00
100.00
13,649
17,829
twinformatics GmbH, Vienna Austria 100.00
100.00
3,403
2,887
UAB LiveOn Linkmenu, Vilnius Lithuania 100.00
100.00
3,660
4,188
UNION Vienna Insurance Group Biztosító Zrt., Budapest Hungary 98.64
98.64
36,082
50,774
Untere Donaulände 40 GmbH & Co KG, Vienna Austria 100.00
100.00
11,383
11,340
Vienibas Gatve Investments OÜ, Tallinn Estonia 100.00
100.00
44
73
Vienibas Gatve Properties SIA, Riga Latvia 100.00
100.00
1,624
1,630
Vienna Life Towarzystwo Ubezpieczeń na Życie S.A. Vienna Insurance
Group, Warsaw
Poland
100.00
100.00
5,971
4,976
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
143
Company name, registered office Country of domicile Interest 2022
1
Interest 2021
1
Equity 2022
2
Equity 2021
2
VİENNALİFE EMEKLİLİK VE HAYAT ANONİM ŞİRKETİ, Istanbul Türkiye 100.00
38,063
Vienna-Life Lebensversicherung AG Vienna Insurance Group, Bendern Liechtenstein 100.00
100.00
9,313
9,535
VIG-AT Beteiligungen GmbH, Vienna Austria 100.00
100.00
354,694
352,832
VIG-CZ Real Estate GmbH, Vienna Austria 100.00
100.00
147,548
147,538
V.I.G. ND, a.s., Prague Czech Republic 100.00
100.00
99,386
94,959
Vienna Insurance Group Polska Spółka z organiczoną
odpowiedzialnością, Warsaw
Poland
100.00
99.99
18,256
VIG FUND, a.s., Prague Czech Republic 100.00
100.00
276,262
275,189
VIG Home, s.r.o., Bratislava Slovakia 100.00
100.00
21,905
21,897
VIG Hungary Holding B.V., The Hague Netherlands 55.00
70,648
VIG Hungary Holding II B.V., The Hague Netherlands 55.00
70,648
VIG Magyarország Befektetési Zártkörűen Működő Részvéntársaság,
Budapest
Hungary
55.00
197,606
VIG Offices, s.r.o., Bratislava Slovakia 100.00
100.00
15,945
16,003
VIG Properties Bulgaria AD, Sofia Bulgaria 99.97
99.97
1,084
3,748
VIG RE zajišťovna, a.s., Prague Czech Republic 100.00
100.00
140,255
179,835
VIG REAL ESTATE DOO, Belgrade Serbia 100.00
100.00
10,672
10,432
VIG Services Ukraine, LLC, Kyiv Ukraine 100.00
100.00
1,239
1,438
VIG Türkiye Holding B.V., Amsterdam Netherlands 100.00
32,288
VIVECA Beteiligungen GmbH, Vienna Austria 100.00
100.00
31,175
WGPV Holding GmbH, Vienna Austria 100.00
100.00
105,287
107,003
WIBG Holding GmbH & Co KG, Vienna Austria 100.00
100.00
80,258
80,098
WIBG Projektentwicklungs GmbH & Co KG, Vienna Austria 100.00
100.00
80,191
80,031
Wiener Osiguranje Vienna Insurance Group ad, Banja Luka Bosnia-Herzegovina 100.00
100.00
8,898
8,919
Wiener osiguranje Vienna Insurance Group dioničko društvo za
osiguranje, Zagreb
Croatia
97.82
97.82
39,009
98,736
"WIENER RE" akcionarsko društvo za reosiguranje, Belgrade Serbia 100.00
100.00
7,305
7,491
WIENER STÄDTISCHE OSIGURANJE akcionarsko drustvo za osiguranje,
Belgrade
Serbia
100.00
100.00
39,289
55,964
WIENER STÄDTISCHE VERSICHERUNG AG Vienna Insurance Group,
Vienna
Austria
97.75
97.75
633,264
559,209
WIENER TOWARZYSTWO UBEZPIECZEŃ SPÓŁKA AKCYJNA VIENNA
INSURANCE GROUP, Warsaw
Poland
100.00
100.00
43,631
34,035
WIENER VEREIN BESTATTUNGS- UND VERSICHERUNGSSERVICE-
GESELLSCHAFT M.B.H., Vienna
Austria
100.00
100.00
2,116
1,938
WILA GmbH, Vienna Austria 100.00
100.00
37,119
31,685
WINO GmbH, Vienna Austria 100.00
100.00
64,713
46,117
WNH Liegenschaftsbesitz GmbH, Vienna Austria 100.00
100.00
6,187
5,363
WSBV Beteiligungsverwaltung GmbH & Co KG, Vienna Austria 100.00
100.00
25,371
24,125
WSV Beta Immoholding GmbH, Vienna Austria 100.00
100.00
93,136
73,972
WSVA Liegenschaftbesitz GmbH, Vienna Austria 100.00
100.00
55,423
43,310
WSVB Liegenschaftbesitz GmbH, Vienna Austria 100.00
100.00
41,611
41,496
WSVC Liegenschaftbesitz GmbH, Vienna Austria 100.00
100.00
21,327
21,341
WSV Immoholding GmbH, Vienna Austria 100.00
100.00
582,027
511,862
WSV Triesterstraße 91 Besitz GmbH & Co KG, Vienna Austria 100.00
100.00
80,979
81,865
WSV Vermögensverwaltung GmbH, Vienna Austria 100.00
100.00
10,695
7,487
WWG Beteiligungen GmbH, Vienna Austria 87.07
87.07
83,665
93,289
1
The share in equity equals the share in voting rights before non-controlling interests.
2
The capital value shown corresponds to the latest local annual financial statements available.
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Company name, registered office Country of domicile Interest 2022
1
Interest 2021
1
Equity 2022
2
Equity 2021
2
in %
in %
in EUR '000
in EUR '000
At equity consolidated companies
"Schwarzatal" Gemeinnützige Wohnungs- und Siedlungsanlagen-GmbH,
Vienna
Austria
100.00
100.00
171,108
165,442
Alpenländische Gemeinnützige WohnbauGmbH, Innsbruck Austria 94.84
94.84
246,770
229,840
Beteiligungs- und Immobilien GmbH, Linz Austria 25.00
25.00
20,405
19,878
Beteiligungs- und Wohnungsanlagen GmbH, Linz Austria 25.00
25.00
237,778
229,253
CROWN-WSF spol. s.r.o., Prague Czech Republic 30.00
30.00
7,740
8,882
EGW Erste gemeinnützige Wohnungsgesellschaft mbH, Vienna Austria 99.77
99.77
325,567
309,955
ERSTE d.o.o. - za upravljanje obveznim i dobrovljnim mirovinskim
fondovima, Zagreb
Croatia
25.30
25.30
16,131
15,481
Gemeinnützige Industrie-Wohnungsaktiengesellschaft, Leonding Austria 55.00
55.00
346,173
332,045
Gemeinnützige Mürz-Ybbs Siedlungsanlagen-GmbH, Kapfenberg Austria 99.92
99.92
157,424
148,588
Gewista-Werbegesellschaft m.b.H., Vienna Austria 33.00
33.00
128,915
116,801
NEUE HEIMAT Oberösterreich Gemeinnützige Wohnungs- und
SiedlungsgesmbH, Linz
Austria
99.82
99.82
229,323
212,512
Neuland gemeinnützige Wohnbau-Gesellschaft m.b.H., Vienna Austria 61.00
61.00
112,011
109,955
Österreichisches Verkehrsbüro Aktiengesellschaft, Vienna
(Consolidated Financial Statements)
Austria
36.58
36.58
53,300
61,670
SOZIALBAU gemeinnützige Wohnungsaktiengesellschaft, Vienna Austria 54.17
54.17
352,888
342,450
Towarzystwo Ubezpieczeń Wzajemnych „TUW", Warsaw Poland 52.16
52.16
49,703
57,690
Urbanbau Gemeinnützige Bau-, Wohnungs- und
Stadterneuerungsgesellschaft m.b.H., Vienna
Austria
51.46
51.46
147,896
142,492
VBV - Betriebliche Altersvorsorge AG, Vienna
(Consolidated Financial Statements)
Austria
25.32
25.32
311,808
279,847
1
The share in equity equals the share in voting rights before non-controlling interests.
2
The capital value shown corresponds to the latest local annual financial statements available.
Company name, registered office Country of domicile Interest 2022
1
in %
Non-consolidated companies
" Assistance Company " Ukrainian Assistance Service" LLC, Kyiv Ukraine 100.00
"Eisenhof" Gemeinnützige Wohnungsgesellschaft m.b.H., Vienna Austria 20.13
"JAHORINA AUTO" d.o.o., Banja Luka Bosnia-Herzegovina 100.00
"LIFETRUST" Ltd, Sofia Bulgaria 100.00
"Neue Heimat" Stadterneuerungsgesellschaft m.b.H., Linz Austria 83.42
AEGON Magyarország Közvetítő és Marketing Zártkörűen működő Részvénytársaság, Budapest Hungary 55.00
AIS Servis, s.r.o., Brno Czech Republic 98.10
Akcionarsko družstvo za životno osiguranje Wiener Städtische Podgorica, Vienna Insurance Group, Podgorica Montenegro 100.00
ALBA Services GmbH, Vienna Austria 48.87
Amadi GmbH, Wiesbaden Germany 100.00
AQUILA Hausmanagement GmbH, Vienna Austria 97.75
AREALIS Liegenschaftsmanagement GmbH, Vienna Austria 48.87
arithmetica Consulting GmbH, Vienna Austria 98.31
AUTONOVA BRNO s.r.o., Brno Czech Republic 98.10
Autosig SRL, Bucharest Romania 99.54
B&A Insurance Consulting s.r.o., Moravská Ostrava Czech Republic 48.45
BB Parking s.r.o., Bratislava Slovakia 98.47
BEESAFE SPÓŁKA Z OGRANICZONA ODPOWIEDZIALNOSCIA, Warsaw Poland 99.99
Benefia Ubezpieczenia Spolka z ograniczona odpowiedzialnoscia, Warsaw Poland 99.95
Bohemika a.s., Žatec Czech Republic 100.00
Bohemika HYPO s.r.o., Žatec Czech Republic 100.00
BSA + OFK Germany Real Estate Immobilien 4 GmbH, Frankfurt Germany 97.75
Bulstrad Trudova Meditzina EOOD, Sofia Bulgaria 100.00
Camelot Informatik und Consulting Gesellschaft m.b.H., Vienna Austria 92.86
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Company name, registered office Country of domicile Interest 2022
1
CARPLUS Versicherungsvermittlungsagentur GmbH, Vienna Austria 97.75
Chrášťany komerční areál a.s., Prague Czech Republic 97.28
CLAIM EXPERT SERVICES S.R.L., Bucharest Romania 99.16
Compensa Dystrybucja Sp. z o. o., Warsaw Poland 99.97
ČPP servis, s.r.o., Prague Czech Republic 100.00
DBLV Immobesitz GmbH, Vienna Austria 100.00
DBR-Liegenschaften Verwaltungs GmbH, Stuttgart Germany 97.75
DELOIS s. r. o., Bratislava Slovakia 98.47
DELOIS II s.r.o., Bratislava Slovakia 98.47
Domácí péče Haná s.r.o., Prerau Czech Republic 63.23
DV Asset Management EAD, Sofia Bulgaria 100.00
DV CONSULTING EOOD, Sofia Bulgaria 100.00
DV Invest EAD, Sofia Bulgaria 100.00
EBV-Leasing Gesellschaft m.b.H., Vienna Austria 47.90
EGW Datenverarbeitungs-Gesellschaft m.b.H., Vienna Austria 71.92
EGW Liegenschaftsverwertungs GmbH, Vienna Austria 71.92
EGW-NOE Erste gemeinnützige Wohnungsgesellschaft mbH, Wiener Neustadt Austria 71.92
EKG UW Nord GmbH, Klagenfurt Austria 24.46
Elsö Maganegeszsegügyi Halozat Zrt., Budapest Hungary 26.58
ERSTE Biztosítási Alkusz Kft, Budapest Hungary 54.25
European Insurance & Reinsurance Brokers Ltd., London United Kingdom 100.00
EXPERTA Schadenregulierungs-Gesellschaft mbH, Vienna Austria 99.44
Finanzpartner GmbH, Vienna Austria 48.87
FinServis Plus, s.r.o., Prague Czech Republic 100.00
Foreign limited liability company "InterInvestUchastie", Minsk Belarus 100.00
GELUP GmbH, Vienna Austria 32.58
GGVier Projekt-GmbH, Vienna Austria 53.76
Glamas Beteiligungsverwaltungs GmbH & Co "Beta" KG, Vienna Austria 42.76
GLOBAL ASSISTANCE D.O.O. BEOGRAD, Belgrade Serbia 100.00
Global Assistance Georgia LLC, Tiflis Georgia 95.00
Global Assistance Polska Sp.z.o.o., Warsaw Poland 99.99
GLOBAL ASSISTANCE SERVICES s.r.o., Prague Czech Republic 100.00
GLOBAL ASSISTANCE SERVICES SRL, Bucharest Romania 99.23
GLOBAL ASSISTANCE SLOVAKIA s.r.o., Bratislava Slovakia 99.22
Global Expert, s.r.o., Pardubice Czech Republic 98.10
Global Partner Péče, z.ú., Prague Czech Republic 63.23
Global Partner Zdraví, s.r.o., Prague Czech Republic 63.23
Global Partner, a.s., Prague Czech Republic 63.23
Global Repair Centres, s.r.o., Pardubitz Czech Republic 98.10
Global Services Bulgaria JSC, Sofia Bulgaria 100.00
Hausservice Objektbewirtschaftungs GmbH, Vienna Austria 20.72
Help24 Assistance Korlátolt Felelősségű Társaság, Budapest Hungary 55.00
HOTELY SRNÍ, a.s., Prague Czech Republic 97.28
Hotel Voltino in Liquidation, Zagreb Croatia 97.82
HORIZONT Personal-, Team- und Organisationsentwicklung GmbH, Vienna Austria 98.29
Immodat GmbH, Vienna Austria 20.72
IMOVE Immobilienverwertung- und -verwaltungs GmbH, Vienna Austria 20.72
INSHIFT GmbH & Co. KG, Köln Germany 23.53
insureX IT GmbH, Vienna Austria 98.87
InterRisk Informatik GmbH, Wiesbaden Germany 100.00
ITIS Spolka z ograniczoną odpowiedzialnoscią spolka komandytowa, Warsaw Poland 99.99
ITIS Sp.z.o.o., Warsaw Poland 99.99
Joint Stock Company "Curatio", Tbilisi Georgia 90.00
Joint Stock Insurance Company WINNER LIFE - Vienna Insurance Group, Skopje North Macedonia 100.00
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Company name, registered office Country of domicile Interest 2022
1
Kitzbüheler Bestattung WV GmbH, Kitzbühel Austria 97.75
KUPALA Belarusian-Austrian Closed Joint Stock Insurance Company, Minsk Belarus 98.26
KWC Campus Errichtungsgesellschaft m.b.H., Klagenfurt Austria 48.87
LD Vermögensverwaltung GmbH, Vienna Austria 98.65
Lead Equities II.Private Equity Mittelstandsfinanzierungs AG, Vienna Austria 21.59
LiSciV Muthgasse GmbH & Co KG, Vienna Austria 42.76
Main Point Karlín II., a.s., Prague Czech Republic 97.28
Money & More Pénzügyi Tanácsadó Zártkörűen Működő Részvénytársaság, Budapest Hungary 54.25
Nadacia poisťovne KOOPERATIVA, Bratislava Slovakia 98.47
PFG Liegenschaftsbewirtschaftungs GmbH, Vienna Austria 73.69
POLISA - ŻYCIE Ubezpieczenia Sp.z.o.o., Warsaw Poland 99.97
Privat Joint-stock company "OWN SERVICE", Kyiv Ukraine 100.00
Projektbau Planung Projektmanagement Bauleitung GesmbH, Vienna Austria 54.51
Renaissance Hotel Realbesitz GmbH, Vienna Austria 40.00
Risk Consult Bulgaria EOOD, Sofia Bulgaria 51.00
Risk Consult Polska Sp.z.o.o., Warsaw Poland 68.15
RISK CONSULT Sicherheits- und Risiko- Managementberatung Gesellschaft m.b.H., Vienna Austria 51.00
Risk Expert Risk ve Hasar Danismanlik Hizmetleri Limited Sirketi, Istanbul Türkiye 64.19
Risk Experts Risiko Engineering GmbH, Vienna Austria 12.24
Risk Experts s.r.o., Bratislava Slovakia 51.00
Risk Logics Risikoberatung GmbH, Vienna Austria 51.00
samavu s.r.o, Bratislava Slovakia 98.47
Sanatorium Astoria, a.s., Karlsbad Czech Republic 97.28
SB Liegenschaftsverwertungs GmbH, Vienna Austria 40.26
S.C. Risk Consult & Engineering Romania S.R.L., Bucharest Romania 51.00
S.C. SOCIETATEA TRAINING IN ASIGURARI S.R.L., Bucharest Romania 99.16
serviceline contact center dienstleistungs-GmbH, Vienna Austria 97.75
S.O.S.- EXPERT d.o.o. za poslovanje nekretninama, Zagreb Croatia 100.00
Senioren Residenzen gemeinnützige Betriebsgesellschaft mbH, Vienna Austria 97.75
Slovexperta, s.r.o., Sillein Slovakia 98.70
Soleta Beteiligungsverwaltungs GmbH, Vienna Austria 42.76
Sparkassen-Versicherungsservice Gesellschaft m.b.H., Vienna Austria 97.75
Spółdzielnia Usługowa VIG EKSPERT W WARSZAWIE, Warsaw Poland 99.97
SURPMO, a.s., Prague Czech Republic 97.28
TAUROS Capital Investment GmbH & Co KG, Vienna Austria 19.55
TAUROS Capital Management GmbH, Vienna Austria 25.30
TeleDoc Holding GmbH, Vienna Austria 25.01
TGMZ Team Gesund Medizin Zentren GmbH, Vienna Austria 39.10
TOGETHER GmbH, Vienna Austria 24.71
UAB "Compensa Life Distribution", Vilnius Lithuania 100.00
UNION-Erted Ellatasszervezö Korlatold Felelössegü Tarsasag, Budapest Hungary 54.25
Versicherungsbüro Dr. Ignaz Fiala Gesellschaft m.b.H., Vienna Austria 47.90
Vienna International Underwriters GmbH, Vienna Austria 100.00
viesure innovation center GmbH, Vienna Austria 98.87
VIG AM Real Estate, a.s., Prague Czech Republic 100.00
VIG AM Services GmbH, Vienna Austria 100.00
VIG IT - Digital Solutions GmbH, Vienna Austria 100.00
VIG Management Service SRL, Bucharest Romania 99.16
VIG POLSKA REAL ESTATE SPÓŁKA Z OGRANICZONA ODPOWIEDZIALNOSCIA, Warsaw Poland 99.97
VIG Services Bulgaria EOOD, Sofia Bulgaria 100.00
VIG Services Shqiperi Sh.p.K., Tirana Albania 89.52
VIG ZP, s. r. o., Bratislava Slovakia 99.22
VIG/C-QUADRAT TOWARZYSTWO FUNDUSZY INVESTYCYJNYCH SPÓŁKA AKCYJNA, Warsaw Poland 50.99
VÖB Direkt Versicherungsagentur GmbH, Graz Austria 48.87
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Company name, registered office Country of domicile Interest 2022
1
Wien 3420 Aspern Development AG, Vienna Austria 23.92
Wiener Städtische Donau Leasing GmbH, Vienna Austria 97.75
Wiener Verein Bestattungsbetriebe GmbH, Kramsach Austria 97.75
WOFIN Wohnungsfinanzierungs GmbH, Vienna Austria 20.72
Wohnquartier 11b Immobilienbesitz GmbH, Vienna Austria 100.00
Wohnquartier 12b Immobilienbesitz GmbH, Vienna Austria 97.75
WSBV Beteiligungsverwaltung GmbH, Vienna Austria 97.75
zuuri s.r.o., Bratislava Slovakia 98.47
1
The share in equity equals the share in voting rights before non-controlling interests.
Please see the Scope and methods of consolidation section starting on page 61 for information on changes in the scope
of consolidation.
The information required under § 265(2) no. 4 of the Austrian Corporation Code (UGB) is provided in the overview of
participations in the separate financial statements.
29. RELATED PARTIES
Related parties
Related parties are the affiliated companies, joint ventures and associated companies listed in Note 28. Affiliated companies
and participations starting on page 140. In addition, the members of the Managing Board and Supervisory Board of VIG
Holding also qualify as related parties. Wiener Städtische Versicherungsverein directly and indirectly holds around 72.47%
(around 72.47%), and therefore a majority of the voting rights of VIG Holding. Based on this controlling interest, it and the
members of its managing board and supervisory board are therefore also related parties.
Members of the Managing Board and Supervisory Board did not receive any advances or loans and had no loans
outstanding during the reporting periods. There were also no guarantees outstanding for members of the Managing Board
or Supervisory Board during the reporting periods.
Transactions with related companies
Transactions with non-consolidated affiliated and associated companies mainly relate to financing and charges for services.
Transactions between the fully consolidated companies included in the consolidated financial statements are eliminated
during consolidation and are therefore not included in the notes.
Transactions with Wiener Städtische Versicherungsverein
Wiener Städtische Versicherungsverein is the majority shareholder of VIG Holding. It has the legal form of a mutual insurance
association that has spun off its insurance operations under the Austrian Insurance Supervision Act (VAG) and consequently
has no insurance business operations. Due to the outsourcing to Wiener Städtische Versicherung AG that took place at
that time, its only responsibilities are those as a majority shareholder of VIG Holding, so that intercompany charges within
VIG Insurance Group are of minor importance. They are based on service agreements between VIG Insurance Group and
Wiener Städtische Versicherungsverein for intercompany charges for internal audit services, finance and accounting,
provision of personnel and office leases based on the arm’s length principle.
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Annual Financial Report 2022
Open items with related companies 31.12.2022
31.12.2021
in EUR '000
Loans 174,060
178,630
Associated companies 109,747
115,417
Subsidiaries not included in the consolidated financial statements 64,313
63,213
Receivables 151,725
147,524
Parent company 131,141
108,690
Associated companies 3,084
27,441
Subsidiaries not included in the consolidated financial statements 17,500
11,393
Liabilities excl. Subordinated liabilities 122,816
158,605
Parent company 101,595
136,836
Associated companies 369
6,381
Subsidiaries not included in the consolidated financial statements 20,852
15,388
Transactions with related companies 2022
2021
in EUR '000
Loans 17,919
4,743
Associated companies 5,670
364
Subsidiaries not included in the consolidated financial statements 12,249
4,379
Receivables 115,554
110,567
Parent company 31,872
24,470
Associated companies 60,480
56,088
Subsidiaries not included in the consolidated financial statements 23,202
30,009
Liabilities excl. Subordinated liabilities 306,046
283,286
Parent company 74,179
134,131
Associated companies 52,304
13,111
Subsidiaries not included in the consolidated financial statements 179,563
136,044
The transactions do not include changes in open items resulting from a change in the scope of consolidation.
Open items with related persons 31.12.2022
31.12.2021
in EUR '000
Receivables 3
2
Liabilities excl. Subordinated liabilities 82
77
Transactions with related parties 2022
2021
in EUR '000
Receivables 217
196
Liabilities excl. Subordinated liabilities 2,143
1,850
The related party items in the income statement do not exceed EUR 3,000,000 and primarily consist of Payments to
Supervisory Board members.
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Compensation of management in key positions
Supervisory board and managing board remuneration (gross) 2022
2021
in EUR '000
Remuneration paid to Supervisory Board members 758
695
Total payments to former members of the Managing Board or their survivors 1,075
1,330
Provision for future pension and severance obligations of Managing Board members 2,265
3,159
Provision for other future long-term claims of Managing Board members 6,758
6,374
Remuneration paid to active Managing Board members 7,948
7,243
Total 18,804
18,801
Remuneration for Managing Board members
Managing Board remuneration takes into account the importance of the Group and the responsibility that goes with it, the
economic situation of the Company, and the appropriateness of the remuneration in the market environment.
The variable portion of the remuneration emphasises the need for sustainability and achieving it fully depends critically on
an analysis of the sustainable performance of the Company that extends beyond a single reporting year.
The performance-related remuneration is limited. The maximum performance-related remuneration that the Managing
Board can receive by achieving the traditional targets in financial year 2022 is around 30% to around 40% of total
remuneration. Special bonus remuneration can also be earned for appropriate target achievement, and remuneration for
overachievement in certain target areas. In total, the members of the Managing Board can earn variable remuneration equal
to a maximum of around 45% to 50% of their total remuneration in this way.
Large parts of performance-related remuneration are only paid after a delay. The delay for financial year 2022 extends to
2026. The deferred portions are awarded based on the sustainable performance of the Group.
The Managing Board is not entitled to performance-related remuneration if performance fails to meet certain thresholds.
Even if the targets are fully met in a given financial year, because of the focus on sustainability, the full variable remuneration
is only awarded if the Group also achieves sustainable performance in the three following years.
Managing Board remuneration does not include stock options or similar instruments.
Members of the Company’s Managing Board who are active as of 31 December 2019 are entitled to funded defined benefit
pensions – based, among other things, on the length of service in VIG Insurance Group – equal to a maximum of 40% of
the measurement base if they remain in the Managing Board until age 65. The measurement base is equal to their standard
fixed remuneration. This pension amount can be increased in individual cases if work continues past the maximum pension
age, since a pension is not drawn during this period.
Starting as of 1 January 2020, newly appointed members of the Managing Board can be granted entitlements to defined
benefit pensions (alternatively entitlements to defined contribution pensions). As a rule, entitlements require at least one
reappointment, and are granted in stages, so that the maximum entitlement of 40% of fixed remuneration cannot be
reached until age 65 after at least 10 years of service as a member of the Managing Board. If a member of the Managing
Board has previously served in other positions in the Group for at least 5 years, an entitlement can already be granted at
the beginning of the term of office.
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Annual Financial Report 2022
Pensions are normally received (regardless of the initial appointment date) only if a Managing Board member’s position is not
extended and the member is not at fault for the lack of extension, or the Managing Board member retires due to illness or age.
The provisions of the Austrian Employee and Employment Provisions Act (Mitarbeiter- und Selbstständigen-Vorsorgegesetz)
(“new severance”) apply to the contracts of the Managing Board members.
Only the contracts for Managing Board members who have been active in the Group for a long time provide for a severance
payment structured in accordance with the provisions of the Austrian Employee Act (Angestelltengesetz), in the version
prior to 2003, in combination with applicable industry-specific provisions. This allows these Managing Board members to
receive a severance payment equal to two to twelve months’ remuneration, depending on the period of service, with a
supplement of 50% if the member retires or leaves after a long-term illness. A Managing Board member who leaves by their
own choice, without agreement with the Company, before retirement is possible, or leaves due to their own fault, is not
entitled to severance payment.
Managing Board members are provided a company car for both business and personal use. The members of the Managing
Board received EUR 7,948,000 (EUR 7,243,000) from the Company during the reporting period for their services. The
members of the Managing Board received EUR 978,000 (EUR 774,000) from subsidiaries during the reporting period.
Former members of the Managing Board received EUR 1,075,000 (EUR 1,330,000).
The Managing Board had eight members in the current financial year.
30. LEASES
The interest expenses for leases recognised in the reporting period are shown in Note 16. Financial result excl. result from
shares in at equity consolidated companies starting on page 126.
30.1. Lessees
The significant cash outflows for leases from lessees amount to a total of EUR 52,214,000 (EUR 39,989,000).
30.2. Lessors – operating leases
Operational leases for which VIG Insurance Group is the lessor exist primarily in connection with real estate leasing.
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Maturity analysis of undiscounted lease payments 31.12.2022
31.12.2021
in EUR '000
up to one year 126,626
116,444
one to two years 118,184
108,133
two to three years 109,334
100,423
three to four years 101,024
91,348
four to five years 92,940
84,626
more than five years 2,708,095
2,412,971
Total 3,256,203
2,913,945
Lease income 2022
2021
in EUR '000
Fixed lease income 129,252
113,972
Lease income of variable lease payments 28,159
23,615
Total 157,411
137,587
31. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE
Earthquake in south-eastern Türkiye and parts of Syria
An earthquake of magnitude 7.8 on the Richter scale occurred in the early morning hours of 6 February 2023, accompanied
by numerous aftershocks of up to 7.5 on the Richter scale in subsequent hours. Overall, the earthquakes affected a region
with a radius of around 400 kilometres, including the cities of Gaziantep, Adana, Antakya, Kahramanmaraş, Malatya, Kilis,
Osmaniye, Diyarbakır, Adıyaman and Şanlıurfa in Türkiye, and Aleppo, Idlib, Homs and Hama in Syria. Several thousand
buildings collapsed, causing thousands of injuries and tens of thousands of deaths. Small tsunami waves were observed
on the east coast of Cyprus as a result of the earthquakes, but did not cause any damage, and a tsunami warning was
issued in Italy.
VIG offers insurance coverage in this region, primarily through its insurance company RaySigorta in Türkiye, which mainly
focuses on the less affected western part of Türkiye. The insurance penetration for the affected area in Türkiye is lower than
in the western part of the country and residential buildings are covered by the state TCIP pool. According to preliminary
estimates, the Group is expecting a gross loss of approximately EUR 100.0 million (before reinsurance). Currently, net loss
cannot be estimated, but VIG has concluded reinsurance programmes for natural disasters.
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Annual Financial Report 2022
ADDITIONAL DISCLOSURES IN ACCORDANCE WITH THE AUSTRIAN
INSURANCE SUPERVISION ACT (VAG)
CHANGE TO THE PEPP IMPLEMENTATION ACT
On 10 June 2022, changes to the PEPP Implementation Act were published in the Austrian Federal Law Gazette. This also
includes changes to the Austrian Insurance Supervision Act 2016 (VAG). Insurance companies that publish consolidated
financial statements in accordance with the IFRS are, as of the effective date, no longer required to include the disclosures
in accordance with § 138 (8) VAG in the IFRS consolidated financial statements. Entry into force is set as 1 January 2023,
meaning that the initial application is expected for financial years beginning after 31 December 2022.
PROFIT PARTICIPATION IN AUSTRIA
Life insurance
U
nder the FMA regulation of 6 October 2015 on profit participation in the life insurance sector (LV-GBV), the expenses for
profit-related premium refunds and policyholder profit participation plus any direct credits must be at least 85% of the
measurement basis.
Measurement basis within the meaning of § 4 (1) LV-GBV 2022
2021
in EUR '000
Net earned premiums – retention 742,151
750,055
Income and expenses from investments and interest expenses 271,580
295,145
Expenses for claims and insurance benefits – retention -844,469 -900,283
Acquisition and administrative expenses -123,845 -121,544
Other underwriting and non-underwriting income and expenses 3,554
2,347
Taxes on income 2,204
-1,367
Total 51,175
24,353
Health insurance
According to § 1 of the FMA regulation on profit participation in the health insurance sector (KV-GBV) of 15 October 2015,
the regulation is applicable to policies whose actuarial bases were submitted after 30 June 2007 and whose terms provide
for profit participation. The expenses for profit-related premium refunds plus any direct credits have to be at least 85% of
the measurement basis for the health insurance policies concerned.
Measurement basis within the meaning of § 3 (1) KV-GBV 2022
2021
in EUR '0
00
Net earned premiums – retention 8,255
8,536
Income and expenses from investments and interest expenses 834
1,037
Expenses for claims and insurance benefits – retention -7,453 -7,440
Acquisition and administrative expenses -1,153 -1,211
Other underwriting and non-underwriting income and expenses 14
5
Taxes on income -125 -196
Total 372
731
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KEY FIGURES PER BALANCE SHEET UNIT
2022 2021
Property/
Casualty
Life
Health
Total
Property/
Casualty
Life
Health
Total
in %
Cost ratio 33.37
24.01
15.92
29.15
32.67
20.49
16.74
27.37
Claims ratio 61.55
61.48
Combined ratio 94.92
94.15
PREMIUMS PER BALANCE SHEET UNIT (INCL. CONSOLIDATION EFFECTS)
Property and Casualty insurance
Premiums written – gross 2022
2021
in EUR '000
Direct business 7,626,525
6,458,724
Casualty insurance 434,810
422,750
Health insurance 162,067
130,077
Motor own-damage insurance (Casco) 1,627,362
1,402,153
Rail vehicle own-damage 4,293
4,202
Aircraft own-damage insurance 6,065
5,904
Sea, lake and river shipping own-damage insurance 15,907
13,587
Transport insurance 85,715
65,311
Fire and natural hazards insurance 1,557,659
1,240,890
Other property 751,435
650,121
Third party liability insurance for self-propelled land vehicles 1,936,231
1,612,266
Carrier insurance 28,506
26,631
Aircraft liability insurance 4,345
6,370
Sea, lake and river shipping liability insurance 6,771
5,082
General liability insurance 639,742
560,306
Credit insurance 9,958
7,820
Guarantee insurance 60,967
44,959
Insurance for miscellaneous financial losses 121,400
114,500
Legal expenses insurance 63,557
62,231
Assistance insurance, travel health insurance 109,735
83,564
Indirect business 476,707
424,815
Marine, aviation and transport insurance 28,570
21,136
Other insurance 413,029
375,278
Health insurance 35,108
28,401
Total 8,103,232
6,883,539
No net earned premiums from indirect property and casualty insurance business were deferred one year before being
recognised in the income statement.
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Annual Financial Report 2022
Life insurance
Premiums written – gross 2022
2021
in EUR '000
Regular premium - direct business 2,930,786
2,643,571
Single-premium - direct business 858,401
865,034
Direct business 3,789,187
3,508,605
thereof policies with profit participation 1,481,647
1,415,337
thereof policies without profit participation 734,897
576,352
thereof unit-linked life insurance portfolio 1,565,867
1,514,933
thereof index-linked life insurance portfolio 6,776
1,983
Indirect business 29,649
26,003
Total 3,818,836
3,534,608
Financial instruments for unit- and index-linked life insurance are shown in the respective separate financial statements. Of
the EUR 87,000 (EUR 460,000) in net earned premiums from indirect life insurance business, EUR 53,000 (EUR 424,000)
was deferred for one year before being shown in the income statement.
Health insurance
Premiums written – gross 2022
2021
in EUR '000
Direct business 637,174
584,419
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
155
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 corpo-
rate 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 application and compliance with
the January 2023 version of 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 Governance is available to
the public both on the VIG Insurance Group website at
https://vig.com/corporate-governance-vig 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 employees
consider observance of and compliance with the rules of
the Austrian Code of Corporate Governance to be highly
important for the practical implementation of corporate gov-
ernance. All information concerning the composition and
work procedures of the Managing Board and the Supervi-
sory 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 do not need to be disclosed or
explained (“Recommendations”)
VIG Holding complies with the rules of the Austrian Code of
Corporate Governance. According to C-Rule 52a of the
Austrian Code of Corporate Governance, the number of
members on the Supervisory Board (without employee rep-
resentatives) shall be ten at most. In 2022, the Supervisory
Board of VIG Holding consisted of twelve members elected
by the Annual General Meeting. The number of members in
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 the VIG Group, including in response to increas-
ing regulatory requirements.
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 cor-
porate governance report. These include: Ray Sigorta (Türkiye)
and Makedonija Osiguruvanje (North Macedonia). The Cor-
porate Governance reports are available on the company
websites:
– https://www.kap.org.tr/en/BildirimPdf/1117968 and
https://www.kap.org.tr/en/Bildirim/1117970;
– https://www.insumak.mk/about-us/reports/?lang=en
(as an integral part of the annual report).
Reference is made to the information in this regard.
The shareholder structure of VIG Holding can be viewed at
the following link: www.vig.com/shareholder-structure.
MEMBERS OF THE MANAGING BOARD AND THEIR
RESPONSIBILITIES
The VIG Holding Managing Board had the following eight
members as of 31 December 2022: Elisabeth Stadler
(General Manager (CEO), Chairwoman of the Managing
Board), Hartwig Löger (Deputy General Manager, Deputy
Chairman of the Managing Board), Liane Hirner (CFRO),
Peter Höfinger, Gerhard Lahner (COO), Gábor Lehel (CIO),
Harald Riener and Peter Thirring (CTO).
Corporate
governance report
156
Annual Financial Report 2022
Changes during and after the end of the financial year
T
he VIG Holding Managing Board will have the following members from 1 July 2023: Mr Löger, Chairman of the Managing
Board (General Manager), Mr Höfinger, Deputy Chairman of the Managing Board (Deputy General Manager), Ms Hirner,
Mr Lahner, Mr Lehel and Mr Riener. All Managing Board terms will expire on 30 June 2027. Ms Stadler and Mr Thirring will,
at their own request, not extend their terms on the Managing Board when they expire on 30 June 2023.
Further information on the members of the Managing Board, including their employment history, is presented below:
Elisabeth Stadler
General Manager (CEO),
Chairwoman of the Managing Board
Year of birth: 1961
Date first appointed:
1 January 2016
End of current term of office:
30
June 2023
Elisabeth Stadler
studied actuarial mathematics at the Vienna Technical University and
began her career in the Austrian insurance industry as a Managing Board Member and
Chairwoman. In May 2014, she was awarded the professional title of professor by Federal
Minister Gabriele Heinisch-Hosek for her merits for the insurance industry. She held the
position of General Manager at Donau Versicherung from September 2014 to March 2016,
and has been CEO of VIG Holding since 2016.
Areas of responsibility:
Management of the VIG Group, Strategy, Bancassurance and
International Partnerships, Communications & Marketing, European Affairs and ESG,
General Secretariat and Legal, Human Resources, Internal Audit, Sponsoring, Subsidiaries
and M&A, Central Functions
Country responsibilities:
G
ermany
Supervisory board positions or comparable positions in other Austrian and foreign
companies outside the Group:
OMV Aktiengesellschaft, voestalpine AG, Institute of
Science and Technology Austria, Austrian Red Cross
Hartwig Löger
Deputy General
Manager, Deputy Chairman of the
Managing Board
Year of birth: 1965
Date first appointed:
1 January 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
Economics 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 Insurance Group under
an advisory agreement with Wiener Städtische Versicherungsverein, the principal
shareholder of VIG Holding, from July 2019 to December 2020.
Areas of responsibility:
P
lanning and Controlling, Strategy and Development
Country responsibilities:
Austria, Slovakia, Czech Republic, Hungary
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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Liane Hirner, CFRO
Year of birth: 1968
Date first appointed:
1 February 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. She assumed the position of Chief Financial Officer on 1 July
2018. In 2019, EIOPA appointed Liane Hirner as a new member of the Insurance &
Reinsurance Stakeholder Group (IRSG).
Areas of responsibility:
Asset Risk Management, Digitalisation, Finance and Risk,
Enterprise Risk Management, Finance Department, Investor Relations
Country responsibilities:
Liechtenstein
Supervisory board positions or comparable positions in other Austrian and foreign
companies outside the Group: Autoneum Holding AG –
Winterthur, Switzerland
Peter Höfinger
Year of birth: 1971
Date first appointed:
1 January 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
Country responsibilities:
Albania, Bosnia-Herzegovina, Bulgaria, Kosovo, Croatia, Moldova,
Montenegro, North Macedonia, Romania, Serbia
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Annual Financial Report 2022
Gerhard Lahner, COO
Year of birth:
1977
Date first appointed:
1 January 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), Holding IT, Process & Project
Management, Treasury incl. Asset Liability Management, VIG Corporate IT
Country responsibilities:
Georgia
Supervisory board positions or comparable positions in other Austrian and foreign
companies outside the Group:
Wien 3420 Aspern Development AG, Wiener Börse AG,
Aktienforum
Gábor Lehel, CIO
Year of birth: 1977
Date first appointed:
1 January 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:
Innovation
Country responsibilities:
Belarus
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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Harald Riener
Year of birth: 1969
Date first appointed: 1 January 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 the 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
: Assistance, Customer Experience, Tool Box Sales
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
Peter Thirring, CTO
Year of birth: 1957
Date first appointed: 1 July 2018
End of current term of office:
30 June 2023
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 was General Manager of
Donau Versicherung from March 2016 to the end of June 2018. Peter Thirring was
appointed to the VIG Holding Managing Board on 1 July 2018.
Areas of responsibility:
Actuarial Department, Active Reinsurance, Anti-Money Laundering,
Compliance, Insurance Life/Non-Life Retail
Country responsibilities:
Türkiye
The curriculum vitae of the members of the Managing Board are available on the website at www.vig.com/management.
MEMBERS OF THE SUPERVISORY BOARD
The Supervisory Board had the following twelve members
as of 31 December 2022:
Günter Geyer
Chairman
Year of birth: 1943
Date first appointed: 2014
End of current term of office: 2024
Günter Geyer joined Wiener Städtische in 1974 and was
appointed to the Managing Board in 1988. In 2001, he be-
came General Manager and Chairman of the Managing
Board of Wiener Städtische. The Group’s entry into the CEE
market, with the establishment of the Kooperativa insur-
ance companies in Bratislava and Prague and expansion
into other CEE countries to become a major international
insurance group, began under his leadership. Günter Geyer
160
Annual Financial Report 2022
received many national and international awards for
his
involvement in these countries. For example, he received an
honorary doctorate degree from the University of Econom-
ics in Bratislava for his contribution to the development
of the insurance industry in the Republic of Slovakia. Günter
Geyer resigned from his position as Chairman of the
VIG Holding Managing Board on 31 May 2012. He has held
the position of Chairman of the Supervisory Board of Wiener
Städtische since 2009 and Chairman of the Supervisory
Board of VIG Holding since 2014. He was also the Chair-
man of the Managing Board of Wiener Städtische Wech-
selseitiger Versicherungsverein until the end of 2020. He
has been Chairman of the Supervisory Board of
Wiener Städtische Wechselseitiger Versicherungsverein
since January 2021.
Rudolf Ertl
1
st
Deputy Chairman
Year of birth: 1946
Date first appointed: 2014
End of current term of office: 2024
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 Versicherungsverein since Janu-
ary 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
1
st
Deputy Chairman of the Supervisory Board.
Robert Lasshofer
2
nd
Deputy Chairman
Year of birth: 1957
Date first appointed: 2021
End of current term of office: 2024
Robert Lasshofer has decades of top experience in the
insurance industry and has been the 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 Insurance
Association (VVO) until the end of 2022.
Martina Dobringer
Year of birth: 1947
Date first appointed: 2011
End of current term of office: 2024
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 Manag-
ing Board of Coface Austria Holding AG. In 2011, she was
awarded the Grand Decoration of Honour in Silver for Ser-
vices to the Republic of Austria, and in 2006 she became
the first Austrian businesswoman to receive the highest
French honour (“Chevalier dans l’ordre de la Légion”).
Zsuzsanna Eifert
Year of birth: 1978
Date first appointed: 2021
End of current term of office: 2024
Zsuzsanna Eifert graduated in finance and accounting in
Budapest and has many years of experience in the tele-
communications sector in Central and Eastern Europe. She
is currently Head of Internal Control System for various
segments at Deutsche Telekom AG, such as Germany, the
USA and T-Systems. At the Hungarian subsidiary Magyar
Telekom Group, she headed up a range of assurance func-
tions since 2011, such as Internal Revision, Compliance,
and Risk Management. At T-Mobile Austria, she was the
head of Internal Audit, Risk Management and Internal
Controls. She previously held these positions at T-Mobile CZ
and Slovak Telekom, which also belong to Deutsche Telekom
AG. From 2008 to 2011, Zsuzsanna Eifert was CFO of the
telecommunications company Invitel International Group.
Gerhard Fabisch
Year of birth: 1960
Date first appointed: 2017
End of current term of office: 2024
Gerhard Fabisch studied business administration and eco-
nomics. He joined the Steiermärkische Bank und Spar-
kassen AG in 1985 and was made a member of the Man-
aging Board in 2001 and Chairman of the Managing Board
in 2004. Steiermärkische Bank und Sparkassen AG has a
number of affiliated companies abroad, including in Croatia,
Serbia and Bosnia-Herzegovina.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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András Kozma
Year of birth: 1968
Date first appointed: 2022
End of current term of office: 2024
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 Member of the Supervisory Board of the Credit Manage-
ment Association in Hungary. Since 2015, he has owned
various private companies in the financial consultancy sector.
Peter Mihók
Year of birth: 1948
Date first appointed: 2019
End of current term of office: 2024
Since 1992, Peter Mihók has been Chairman of the Slovak-
ian Chamber of Trade and Industry, Honorary Chair of the
World Chambers Federation of the International Chamber
of Commerce in Paris and Member of the Managing Board
of Eurochambres 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
Economics 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.
Heinz Öhler
Year of birth: 1945
Date first appointed: 2002
End of current term of office: 2024
Heinz Öhler joined the Tiroler Gebietskrankenkasse in 1970,
where he initially held a position as head of the Finance
Department and later held an executive position until 2011.
In this position he managed country-wide projects and re-
presented regional health insurance funds in a variety of
ministerial committees, among other things. In March 2007,
he was awarded the Grand Decoration of Honour in Gold
for Services to the Republic of Austria for his work related
to Austrian social security. He has held many positions in the
sports world, including being appointed as a Member of the
Tyrolean State Sports Council in November 2016. Heinz
Öhler was elected Chairman of the Supervisory Board of
Alpenländische Gemeinnützige WohnbauGmbH, Innsbruck,
in June 2021.
Gabriele Semmelrock-Werzer
Year of birth: 1958
Date first appointed: 2017
End of current term of office: 2024
After holding positions at the Austrian branches of Chase
Manhattan Bank AG and Crèdit Lyonnais AG, Gabriele
Semmelrock-Werzer worked for Erste Group Bank AG in a
variety of areas starting in 1995. She headed the Group
Investor Relations department from 1999 to 2010, and in
addition to international communications also actively as-
sisted the expansion of the Erste Group into the CEE region
and spent time in Prague and Bucharest. Since 2011, she
has been Chairwoman of the Managing Board of Kärntner
Sparkasse AG, which also holds a 70% interest in Spar-
kasse d.d. in Slovenia.
Katarína Slezáková
Year of birth: 1976
Date first appointed: 2020
End of current term of office: 2024
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 Slo-
vakia that are leaders in the area of intelligent transport infor-
mation systems.
Gertrude Tumpel-Gugerell
Year of birth: 1952
Date first appointed: 2012
End of current term of office: 2024
Gertrude Tumpel-Gugerell was Vice Governor of the National
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 Governor to
the International Monetary Fund and a member of the Eco-
162
Annual Financial Report 2022
nomic and Financial Committee – the most important eco-
nomic policy advisory committee of the European Union.
Gertrude Tumpel-Gugerell was responsible for the Eco-
nomics 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 curriculum vitae of the members of the Supervisory Board
are available on the website at www.vig.com/supervisory-
board.
Changes during the reporting year
Georg Riedl stepped down from his position on the
Supervisory Board with effect from the end of the Annual
General Meeting. András Kozma was elected as a new
member of the Supervisory Board at the Annual General
Meeting on 20 May 2022.
SUPERVISORY BOARD INDEPENDENCE
In accordance with Rule 53 of the Austrian Code of Corpo-
rate 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 or a senior manager of the Com-
pany or subsidiary of the Company in the last five years.
• 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 Com-
pany. 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 classifi-
cation of non-independence. For the purpose of clar-
ification, 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 audit-
ing 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.
The Supervisory Board as a whole is considered to be in-
dependent if at least 50% of the members elected by the
Annual General Meeting satisfy the criteria above for the in-
dependence of a Supervisory Board Member.
Each Member of the Supervisory Board has declared
whether they can be considered independent based on the
criteria specified by the Supervisory Board. Peter Mihók and
Robert Lassofer have each stated that they are not inde-
pendent based on the independence criteria specified by
the Supervisory Board. All other Supervisory Board Mem-
bers 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 super-
visory mandates or comparable positions in other Austrian
or foreign listed companies as of 31 December 2022:
Robert Lasshofer
AT & S Austria Technologie & Systemtechnik Aktiengesellschaft
Gertrude Tumpel-Gugerell
AT & S Austria Technologie & Systemtechnik Aktiengesellschaft
Commerzbank AG
OMV Aktiengesellschaft
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.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
163
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 com-
panies.
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 2022 found that its organisa-
tional 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 fol-
lowed 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. Detailed presentations and discussions
during meetings of the Supervisory Board and its com-
mittees are used for this purpose, as are thorough and, in
some cases, in-depth discussions with the members of the
Managing Board who provide detailed explanations and
supporting documentation relating to the management and
financial position of the Company and the Group. Strategy,
business development (overall and in individual regions),
risk management, the internal control system, internal audit
activities, the compliance function, actuarial function and
reinsurance – 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 di-
rectly engage with the financial statements auditor and the
consolidated financial statements auditor in order to famili-
arise themselves with the accounting process and audit
progress, and to inquire whether the audit has produced
any important findings. Provision was made for exchanges
between the Members of the Audit Committee and the (con-
solidated) financial statements auditor in such meetings
without the presence of the Managing Board, but no Mem-
ber of the Audit Committee took advantage of this oppor-
tunity during the reporting year. During the meetings about
annual and consolidated financial statements, the audit
reports are discussed with the audit managers both in the
Audit Committee and in the entire Supervisory Board. The
Audit Committee examined the Solvency and Financial Con-
dition Report (SFCR) at both the solo and Group levels and
reported its findings to the Supervisory Board. No facts or cir-
cumstances 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
annual audit plan to the Audit Committee for approval. The
Managing Board explains the organisation and effectiveness
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 and the IT security report in 2022
and reported on them to the Supervisory Board. The Audit
Committee and Supervisory Board as a whole also received
the 2022 sustainability report (consolidated non-financial
report) from the Managing Board, and reviewed and care-
fully examined it.
At least once a year, the Managing Board presents the Super-
visory Board with the measures to be 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 Meeting
regarding the election of a new Supervisory Board Member,
the Supervisory Board takes into account the professional
and personal requirements provided for by law and the
164
Annual Financial Report 2022
Austrian Code of Corporate Governance that a Supervi
sory
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 Govern-
ance 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 re-
lating to the consolidated financial statements auditor and
the members of the network to which the consolidated fi-
nancial statements auditor pertains. The same goes for
other financial statements auditors who work for the Group.
The Supervisory Board established five committees to
increase its efficiency and to address complex matters:
Committee for Urgent Matters (Working Committee), Audit
Committee (Accounts Committee), Committee for Managing
Board Matters (Personnel Committee), Strategy Committee
and Nomination Committee.
The Supervisory Board also dealt with IT security issues in
financial year 2022.
The Managing Board and Supervisory Board prepared a re-
muneration report for financial year 2022.
In 2022, the Managing Board of VIG Holding informed the
members of the Supervisory Board of material sustainability
and IT security matters. For example, in the reporting year,
sustainability was treated as a key element of the com-
pany’s VIG 25 strategy and of the expansion of environ-
mentally friendly investments.
SUPERVISORY BOARD COMMITTEES
COMMITTEE FOR URGENT MATTERS (WORKING COMMITTEE)
T
he 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.
Günter Geyer (Chairman)
Substitute: Gertrude Tumpel-Gugerell
Rudolf Ertl
Substitute: Martina Dobringer
Robert Lasshofer
Substitute: Gerhard Fabisch
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 Aus-
trian 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
consolidated financial statements taking into account find-
ings and conclusions in reports published by the supervisory
authority for financial statement auditors in accordance with
§ 4 (2)(12) of the Austrian Auditor Supervision Act (APAG);
4. to check and monitor the independence of the financial
statement auditor (consolidated financial statement auditor),
in particular with respect to the additional services pro-
vided for the audited company; Art. 5 of Regulation (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 profits,
the management report, the solvency and financial con-
dition report and corporate governance report, and present
a report on the results of the audit to the Supervisory Board;
7. to audit the consolidated financial statements and Group
management report, the solvency and financial condition
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
165
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 statement
auditor (consolidated financial statement auditor) taking
into account the appropriateness of the fees in accord-
ance 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 Regu-
lation (EU) No. 537/2014.
Furthermore, in a meeting (another meeting, in addition to
the meeting required by law), the Audit Committee
(Accounts Committee) specifies how the two-way com-
munication 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 Com-
mittee) and the (consolidated) 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.
Chairwoman:
Gertrude Tumpel-Gugerell
Deputy Chairwoman:
Martina Dobringer
Other members:
Zsuzsanna Eifert
Rudolf Ertl
Günter Geyer
András Kozma
Robert Lasshofer
Peter Mihók
Katarína Slezáková
If a member is unable to attend, Gabriele Semmelrock-Werzer
will attend the meeting, and if she is also unable to attend,
Heinz Öhler will attend. 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 exam-
ines remuneration policies at regular intervals.
Günter Geyer (Chairman)
Rudolf Ertl
Robert Lasshofer
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 subse-
quently be decided upon by the entire Supervisory Board.
Günter Geyer (Chairman)
Substitute: Gertrude Tumpel-Gugerell
Zsuzsanna Eifert
Substitute: Gabriele Semmelrock-Werzer
Rudolf Ertl
Substitute: Martina Dobringer
Robert Lasshofer
Substitute: Gerhard Fabisch
Peter Mihók
Substitute: Katarína Slezáková
András Kozma
Substitute: Heinz Öhler
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.
Günter Geyer (Chairman)
Martina Dobringer
Rudolf Ertl
Robert Lasshofer
166
Annual Financial Report 2022
Substitute in the event that a member is unable to attend:
Gertrude Tumpel-Gugerell
Supervisory Board Members Gerhard Fabisch and Gabriele
Semmelrock-Werzer are members of the managing boards
of companies with which distribution agreements were con-
cluded under normal market and industry terms and condi-
tions. The Company did not enter into any other agree-
ments with Supervisory Board Members in 2022 that would
have required the approval of the Supervisory Board.
NUMBER OF MEETINGS OF THE SUPERVISORY BOARD AND ITS
COMMITTEES IN THE FINANCIAL YEAR 2022
One regular general meeting and four Supervisory Board
meetings distributed across the financial year were held in
2022. Four meetings of the Audit Committee (Accounts Com-
mittee) were also held. The Annual General Meeting was
held as a virtual Annual General Meeting on the basis of § 1
(2) COVID-19-GesG and the COVID-19-GesV. The financial
statement and consolidated financial statement auditor,
KPMG Austria GmbH Wirtschaftsprüfungs- und Steuer-
beratungsgesellschaft (KPMG), attended three Audit Com-
mittee meetings and three Supervisory Board meetings in
2022, including the Supervisory Board meeting that ad-
dressed the audit of the 2021 annual financial statements
and the 2021 consolidated financial statements as well as for-
mal approval of the 2021 annual financial statements, and
also attended the Annual General Meeting. Two meetings of
the Committee for Managing Board Matters (Personnel Com-
mittee) were held in 2022. The Committee for Urgent Matters
(Working Committee) met twice in 2022 and passed one re-
solution by circulation. The Nomination Committee met twice.
The Strategy Committee did not meet in 2022. Strategic mat-
ters were handled by the Supervisory Board as a whole.
No Member of the Supervisory Board attended less than half
of the Supervisory Board meetings.
The following table shows the attendance of ordinary mem-
bers at meetings, taking into account attendance by their
substitutes:
MEETING ATTENDANCE BY MEMBERS OF THE SUPERVISORY BOARD IN FINANCIAL YEAR 2022
Name Supervisory
Board
Audit
Committee
2
Working
Committee
2
Strategy
Committee
2
Personnel
Committee
2
Nomination
Committee
2
4 meetings
4 meetings
2 meetings
no meeting
2 meetings
2 meetings
Günter Geyer (C) 4/4 4/4 2/2 2/2 2/2
Rudolf Ertl (1
st
DC) 4/4 4/4 2/2 2/2 2/2
Robert Lasshofer (2
nd
DC) 2/4 2/4 1/2
3
2/2 2/2
Martina Dobringer 4/4 4/4 2/2
Zsuzsanna Eifert 4/4 4/4
Gerhard Fabisch 3/4
András Kozma
1
3/3 2/2
Peter Mihók 4/4 4/4
Heinz Öhler 3/4
Georg Riedl
4
1/1 1/1
Gabriele Semmelrock-Werzer 4/4
Katarina Slezáková 4/4 4/4
Gertrude Tumpel-Gugerell 4/4 4/4
1
Elected to the Supervisory Board in the Annual General Meeting of 20 May 2022
2
New composition of committees or new deputy arrangements in the event of impediment from 7 June 2022 onwards
3
One meeting took place prior to the Annual General Meeting and before the meeting of the Supervisory Board, during which the new composition of the members of the committee was agreed upon. Georg
Riedl participated in this meeting as his substitute.
4
Retired from the Supervisory Board at the end of the Annual General Meeting of 20 May 2022.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
167
DIVERSITY CONCEPT
With over 50 insurance companies and pension funds and
around 29,000 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, the 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 simi-
larities 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 tol-
erate any kind of discrimination. We are committed to pro-
moting 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.”
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. Generation-appropriate offers and support in
the various 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
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.
The topic of diversity is a key element in Group-wide man-
agement development training programmes, in terms of
content as well as the participants and 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 imple-
mentation.
Diversity Advisor
As Diversity Advisor, Angela Fleischlig-Tangl 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
Appreciation of diversity and, therefore, removing barriers in
women’s careers is one of the key elements of the HR strategy
at VIG Insurance Group. Gender is one of the three priorities of
the diversity concept at both the Group and VIG Holding level.
Nomination procedures for Group-wide training programmes
for management, high potentials and experts are also re-
quired to have as balanced a gender representation as pos-
sible, with the local human resources department bearing
ultimate responsibility.
Women Supervisory Board members
Women hold 23.1% of the positions in the Supervisory
Boards of the fully consolidated VIG insurance companies
in the Group (as of 31 December 2022) and 41.7% of the
positions in VIG Holding.
Women Managing Board members
Women hold 25.2% of the positions on the Managing Boards
of the fully consolidated VIG insurance companies and 23.1%
168
Annual Financial Report 2022
of the Chairpersons are women. Elisabeth Stadler is the
Chairwoman of the VIG Group.
Women in management positions
Including distribution, women hold 44.6% of the manage-
ment positions at the level directly below the managing
board of fully consolidated VIG insurance companies across
Europe (not including distribution: 49.5%).
GENERATIONS AND INTERNATIONALITY
The average age of all Managing Board Members of the
fully consolidated insurance companies is 50.9 years (as of
31 December 2022), and the average age of Supervisory
Board Members is 57.6 years. 21 different nationalities (based
on: citizenship) are represented in the managing boards of the
fully consolidated VIG insurance companies, and 18 different
nationalities in the supervisory boards. Further information is
available in the Employees section of the Sustainability Report.
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 at least every three years. VIG
Holding performs these evaluations every three years. The
last evaluation was performed for the consolidated corpo-
rate governance report for financial year 2020 and con-
cluded with a positive report. The next evaluation is sched-
uled for financial year 2023.
Vienna, 20 March 2023
The Managing Board:
Elisabeth Stadler
General Manager (CEO),
Chairwoman of
the Managing Board
H
artwig Löger
Deputy General Manager,
Deputy Chairman of the
Managing Board
Liane Hirner
CFRO, Member of
the Managing Board
Peter Höfinger
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
Peter Thirring
CTO, Member of
the Managing Board
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
169
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 moni-
toring of the Group. This purpose
was served by detailed presentations
and discussions during meetings of
the Supervisory Board and its com-
mittees as well as by detailed discussions on individual topics
with Managing Board members who provided compre-
hensive 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 regions), risk management, the in-
ternal 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 remunera-
tion of Managing Board Members. Goal fulfilment for Man-
aging Board Members also depended on both financial and
non-financial criteria in the 2022 reporting year. Detailed in-
formation on the principles underlying the remuneration
system is available in the remuneration policy and 2022 re-
muneration report.
The Supervisory Board has formed five committees from its
Members. Information on the responsibilities and composi-
tion of these committees is available on the Company’s
website and in the 2022 consolidated corporate govern-
ance report.
One Annual General Meeting and four Supervisory Board
meetings distributed across the financial year were held in
2022. Four meetings of the Audit Committee (Accounts
Committee) were also held. The Annual General Meeting
was held as a virtual Annual General Meeting on the basis of
§ 1 (2) COVID-19-GesG and the COVID-19-GesV. The fi-
nancial statement and consolidated financial statement
auditor, KPMG Austria GmbH Wirtschaftsprüfungs- und
Steuerberatungsgesellschaft, FN 269873y (KPMG), at-
tended three Audit Committee meetings and three
Supervisory Board meetings in 2022, including the
Supervisory Board meeting that addressed the audit of the
2021 annual financial statements and the 2021
consolidated financial statements as well as formal approval
of the 2021 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. Two meetings of the Committee for Managing
Board Matters (Personnel Committee) were held in 2022.
The Committee for Urgent Matters (Working Committee)
met twice and passed one resolution by circulation. The
Nomination Committee met twice. The Strategy Committee
did not meet in 2022. Strategic matters were handled by
the Supervisory Board as a whole.
No agenda items were discussed in Supervisory Board
meetings in 2022 without the participation of members of
the Managing Board.
No Member of the Supervisory Board attended less than
half of the Supervisory Board meetings. Detailed infor-
mation on meeting attendance by Supervisory Board mem-
bers in financial year 2022 is available in the 2022 Corporate
Governance Report.
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 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.
Acting upon the proposal and motion of the Supervisory
Board, the general meeting of 21 May 2021 selected KPMG
to be the financial statements auditor and consolidated
financial statements auditor for the financial year 2022, and
KPMG consequently performed these duties in the financial
year 2022.
The Audit Committee mainly dealt with the following topics
in 2022:
Supervisory Board report
170
Annual Financial Report 2022
During one meeting of the Audit Committee, the members
of the committee consulted with the (consolidated) financial
statements auditor on specification of two-way communi-
cations and audit planning.
By inspecting relevant documents, meeting with the Manag-
ing 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 state-
ments, and found no facts or circumstances providing
grounds for objection. The Audit Committee also reviewed
the possibilities of providing recommendations or sugges-
tions 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 reviewed and monitored the inde-
pendence of the auditor of the financial statements and con-
solidated financial statements, and after reviewing suitable
documents and supporting records submitted to the Commit-
tee, 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 also dealt with permitted non-audit services. While
reviewing and monitoring the independence of the financial
statements auditor and consolidated financial statements audi-
tor, the Audit Committee did not find any circumstances that
would raise doubts about its independence and impartiality.
The Audit Committee also dealt with the VIG Holding and
VIG Group ORSA reports and the IT security report in 2022
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 or-
ganisation of these systems from the Managing Board, the
(consolidated) financial statements auditor and the individ-
uals directly responsible for these areas and deemed them,
including the IT security measures, to be effective.
The Audit Committee reported on these monitoring activ-
ities to the Supervisory Board and stated that no deficien-
cies 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 quar-
terly 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 de-
partment 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.
In accordance with the Audit Regulation (Regulation (EU) No
537/2014), the Audit Committee conducted a selection pro-
cedure to appoint the auditor of the (consolidated) financial
statements for the financial year 2023. This resulted in a
justified recommendation with a preference for KPMG being
submitted to the Supervisory Board. 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 Supervisory
Board followed the recommendation of the Audit Committee.
The General Meeting selected KPMG as auditor of the finan-
cial statements and consolidated financial statements for 2023.
The Audit Committee also received the 2022 annual finan-
cial statements, management report, 2022 consolidated
corporate governance report and 2022 sustainability report
(consolidated non-financial report) from the Managing Board,
and reviewed and carefully examined them. The Managing
Board’s proposed appropriation of profits was also re-
viewed 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 2022 consolidated
financial statements and Group management report. In
addition, the auditor’s reports prepared by (consolidated)
financial statements auditor KPMG for the 2022 annual
financial statements and management report and the 2022
consolidated financial statements and Group management
report were reviewed by the Audit Committee and ex-
amined. As a result of this examination, a unanimous reso-
lution was adopted to recommend to the Supervisory Board
that the annual financial statements be accepted. The Super-
visory Board found no grounds for objection.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
171
The (consolidated) financial statements auditor provided the
Audit Committee with an additional report in accordance
with Art. 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 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 Supervisory Board also dealt with IT security issues in
financial year 2022.
The Managing Board and Supervisory Board prepared a re-
muneration report for financial year 2022.
In its meeting on 13 September 2022, the Supervisory
Board reappointed Ms Hirner to the Managing Board. At its
meeting on 29 November 2022, the Supervisory Board, on
the recommendation of the Nomination Committee, ap-
pointed Mr Löger to the position of Chairman of the Man-
aging Board (General Manager) and Mr Höfinger to the po-
sition of Deputy Chairman of the Managing Board (Deputy
General Manager) with effect from 1 July 2023. Furthermore,
in its meeting on 29 November 2022, the Supervisory
Board reappointed Mr Lahner, Mr Lehel and Mr Riener to
the Managing Board with effect from 1 July 2023. All
Managing Board terms will expire on 30 June 2027.
Ms Stadler and Mr Thirring will, at their own request, not
extend their terms on the Managing Board when they expire
on 30 June 2023.
The 2022 annual financial statements together with the
management report and 2022 consolidated corporate gov-
ernance report, the 2022 consolidated financial statements
together with the Group management report, 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
particular, to ensure that it was reasonable when capital
requirements were taken into account. The proposal com-
plies 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 pru-
dent and sustainable capital planning to ensure a solid sol-
vency and liquidity position in the long term.
In 2022, the Managing Board of VIG Holding informed the
members of the Supervisory Board of material sustainability
and IT security matters. For example, in the reporting year,
sustainability was treated as a key element of the com-
pany’s VIG 25 strategy and of the expansion of environ-
mentally friendly investments.
The Supervisory Board also received the 2022 sustainability
report (consolidated non-financial report) examined by
KPMG from the Managing Board, and reviewed and care-
fully examined it. As a result of this examination, it found
that the 2022 sustainability report (consolidated non-financial
report) had been prepared properly and was appropriate.
The Supervisory Board found no grounds for objection.
In addition, the auditor’s reports prepared by (consolidated)
financial statements auditor KPMG for the 2022 annual
financial statements and management report and the 2022
consolidated financial statements and Group management
report were reviewed by the Supervisory Board and exam-
ined. KPMG’s audit of the 2022 annual financial statements
and management report and the 2022 consolidated
financial statements and Group management 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 2022, and of
the results of operations of the Company for the financial
year 2022 in accordance with Austrian generally accepted
accounting principles. The management report is con-
sistent with the annual financial statements. The disclosures
pursuant to § 243a UGB (Austrian Commercial Code) are
appropriate. KPMG further determined that the consoli-
dated 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 2022,
and of the results of operations and cash flows of the Group
for the financial year 2022 in accordance with the IFRS as
adopted by the EU and § 138 of the Austrian Insurance
Supervision Act (VAG) in combination with § 245a of the
Austrian Commercial Code (UGB). The Group management
172
Annual Financial Report 2022
report is consistent with the consolidated financial
state-
ments. KPMG also reviewed the 2022 sustainability report
(consolidated non-financial report) and determined in ac-
cordance with § 269 (3) UGB that the 2022 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 state-
ments.
After thorough examination, the Supervisory Board there-
fore adopted a unanimous resolution to approve the 2022
annual financial statements prepared by the Managing Board,
not to raise any objections to the management report, the
2022 consolidated financial statements and Group man-
agement report, the 2022 consolidated corporate govern-
ance report and the 2022 sustainability report (consolidated
non-financial report) and to agree with the Managing Board-
proposed appropriation of profits.
The 2022 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 appro-
priation of profits and formally approves the actions of the
Managing Board and Supervisory Board.
Vienna, April 2023
The Supervisory Board:
Günter Geyer (Chairman)
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
173
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, and that the Group management report provides
a description of the principal risks and uncertainties to which the Group is exposed.
The declaration for the annual financial statements of VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe is
issued in the Annual Report of this company.
The consolidated financial statements for financial year 2022 were approved for publication by a resolution of the Managing
Board on 20 March 2023.
Vienna, 20 March 2023
Elisabeth Stadler
General Manager, CEO,
Chairwoman of
the Managing Board
Hartwig Löger
Deputy General Manager,
Deputy Chairman
of the Managing Board
Liane Hirner
CFRO, Member of
the Managing Board
Peter Höfinger
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
Peter Thirring
CTO, Member of
the Managing Board
Managing Board areas of responsibility:
Elisabeth Stadler:
Management of the VIG Group, Strategy, Bancassurance and International Partnerships, Communication & Marketing, European
Affairs and ESG, General Secretariat and Legal, Human Resources, Internal Audit, Sponsoring, Subsidiaries and M&A, Central
Functions; Country responsibilities: Germany
Hartwig Löger:
Planning and Controlling, Strategy and Development; Country responsibilities: Austria, Hungary, Slovakia, Czech Republic
Liane Hirner:
Asset Risk Management, Digitalisation, Finance and Risk, Enterprise Risk Management, Finance Department, Investor Relations;
Country responsibilities: Liechtenstein
Peter Höfinger:
Corporate Business, Reinsurance; Country responsibilities: Albania, Bosnia-Herzegovina, Bulgaria, Croatia, Kosovo, Moldova,
Montenegro, North Macedonia, Romania, Serbia
Gerhard Lahner:
Asset Management (incl. Real Estate), Holding IT, Process & Project Management, Treasury incl. Asset Liability Management, VIG
Corporate IT; Country responsibilities: Georgia
Gábor Lehel:
Innovation; Country responsibilities: Belarus
Harald Riener:
Assistance, Customer Experience, Tool Box Sales; Country responsibilities: Estonia, Latvia, Lithuania, Poland, Ukraine
Peter Thirring:
Actuarial Department, Active Reinsurance, Anti-Money Laundering, Compliance, Insurance Life/Non-Life Retail; Country
responsibilities: Türkiye
Declaration by the Managing Board
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Annual Financial Report 2022
AUDITOR’S REPORT
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 2022, the
Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated Shareholders’
Equity, the Consolidated Cash Flow Statement 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 2022, 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 EU Regulation 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.
We have identified the following key audit matters:
• Recoverability of goodwill
• Liability Adequacy Test – “LAT”
• Purchase price allocation – Aegon transaction
RECOVERABILITY OF GOODWILL
Refer to notes 1.1. Goodwill on page 98, Impairment of goodwill on page 45 and Intangible Assets (A) on pages 47ff.
Risk for the Consolidated Financial Statements
The recoverability of goodwill recognized in the Consolidated Financial Statements of the Vienna Insurance Group
amounting to EUR 1.438,7 million, is monitored separately at country level. At least once a year and in case of a triggering
Auditor’s
r
eport
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
175
event on an ad hoc basis Vienna Insurance Group performs a recoverability test (the so-called impairment test) of the
recorded goodwill amounts.
The impairment test 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 the 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 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 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.
LIABILITY ADEQUACY TEST – “LAT”
Refer to notes Technical provisions on pages 56ff and Sensitivity analyses of embedded values for life and health on pages
90ff.
Risk for the Consolidated Financial Statements
With life and health insurance, Vienna Insurance Group holds a significant number of long-term contracts for which
premiums have been calculated using a high discount rate. As these interest rates are also used to measure the liabilities
from insurance contracts, there is – due to the persistently low interest rates in the market – a risk that the insurance liabilities
are not adequately measured.
At each balance sheet date Vienna Insurance Group uses current estimates of future cash flows from insurance contracts
to determine whether the insurance liabilities are adequately accounted for in the balance sheet.
To ensure this, future cash flows from existing policies are calculated on a best estimate basis using actuarial methods. For
life and health insurance the cash flow model used for this purpose is also used to calculate the Market Consistent
Embedded Value (“MCEV”). The MCEV is determined according to the “Market Consistent Embedded Value Principles”
published by the CFO Forum in June 2008 and last amended in April 2016.
The performance of the liability adequacy test is complex, and its underlying assumptions are based on a large number of
estimates and discretionary factors.
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Annual Financial Report 2022
Our Response
We involved our actuarial specialist as part of the
audit team and carried out the following main audit procedures in
connection with the liability adequacy test:
• We have examined the appropriateness of key assumptions and discretionary decisions as well as the calculation
models and methods applied.
• In order to assess the appropriateness of the assumptions and methods used, we gained an understanding of the
methodology in discussions with the actuaries of Vienna Insurance Group and analysed the assumptions used as well
as the resulting cash flows.
• In particular, we assessed whether the applied methodology was consistent with the “Market Consistent Embedded
Value Principles” published by the CFO Forum in June 2008 and last amended in April 2016.
• I
n addition, we assessed the appropriateness of the implementation of the methodology within the models, analysed
the consistency of assumptions used on the basis of information from prior periods, and examined the completeness of
the modeled portfolio.
• Furthermore, we critically dealt with the sensitivity analysis prepared by the company.
PURCHASE PRICE ALLOCATION – AEGON TRANSACTION
Refer to notes Change in consolidation scope on pages 62 to 64 and 1.1. Goodwill on page 98.
Risk for the Consolidated Financial Statements
On 29 November 2020, Vienna Insurance Group signed a
purchase agreement to acquire companies of the Dutch Aegon
N.V. in Hungary, Poland, Romania and Türkiye. The acquisition in Hungary and Türkyie was completed in March and April
2022, respectively. In Poland and Romania the closing has not been completed yet. As part of the purchase price allocation
for the transactions already completed, intangible assets of EUR 322.0 million in Hungary and EUR 48.8 million in Türkiye
have been identified. The recognition and measurement of the identified acquired assets and assumed liabilities as part of
the purchase price allocation are based to a large extent on estimates and judgments.
For the consolidated financial statement, there is a risk that the significant assets acquired, and liabilities assumed may not
be fully identified or may be incorrectly measured. In addition, there is a risk that the disclosures in the notes related to the
acquisition are not complete and accurate.
Our Response
• W
e have obtained an understanding of the acquisition transaction by interviewing the management and other
employees of the Vienna Insurance Group and by reviewing the relevant contracts. We have reconciled the total
purchase price with the underlying contractual agreements.
• Furthermore, we have assessed whether the identification of the acquired assets and assumed liabilities fulfil the
requirements of IFRS 3. We have also assessed whether the employed valuation techniques are in accordance with the
relevant valuation principles.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
177
• We have examined the appropriateness of key assumptions used in the calculation of the fair values of the acquired
assets and assumed liabilities. We involved our valuation specialists in assessing the discount rates used.
• We have performed selected calculations from a risk-oriented perspective to assess the arithmetical accuracy of the
identified assets and liabilities.
• In addition, we made sure that the acquisition of the companies was correctly reflected in the consolidated financial
statements of the Vienna Insurance Group. In doing so, we also assessed whether the disclosure notes relating to the
acquisition are complete and accurate.
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 based on these consolidated
financial statements.
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Annual Financial Report 2022
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 obtain sufficient appropriate audit evidence regarding the financial information of the entities and business activities
within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction,
supervision and performance of the group audit. 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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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
179
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.
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 21 Mai 2021 and were appointed by the supervisory board
on 2 June 2021 to audit the financial statements of the Vienna Insurance Group for the financial year ending on 31 December
2022.
On 20 May 2022 we were elected as auditors for the financial year ending on 31 December 2023 and were appointed by
the supervisory board on 13 June 2022 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.
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.
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Annual Financial Report 2022
Engagement Partner
T
he engagement partner is Mr Thomas Smrekar.
Vienna, 20 March 2023
KPMG Austria GmbH
Wirtschaftsprüfungs- und Steuerberatungsgesellschaft
signed by:
Thomas Smrekar
W
irtschaftsprüfer
(Austrian Chartered Accountant)
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oup management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
181
Management
report
to th e Annual financial statements
in accordance with the Austrian
Commercial Code (
UGB)
182
Annual Financial Report 2022
MORE GROWTH AND MORE SOLIDARITY
Together, the VIG companies form the leading insurance
group in Central and Eastern Europe. VIG Holding is
headquartered in Vienna and manages and supports its
over 50 insurance companies and pension funds. The roots
of the Group reach back to the year 1824.
VIG Insurance Group’s some 29,000 employees serve
roughly 28 million customers with the goal of further
expanding the Group’s market leadership.
“We believe in the long-term potential that our home region
has to offer and in the continued significant economic
growth in the CEE region, which is greater than that of
Western Europe. We have the economic strength and
necessary stability for overcoming challenges.”
Great levels of solidarity are clear to see within our Group.
For instance, the VIG Family Fund has been set up and will
contribute to rebuilding Ukraine in the medium and long
term for our Ukrainian employees.
ORGANISATION AND OBJECTIVES
VIG Holding uses a number of control units, e.g. Risk
Management, Asset Management, Planning and
Controlling, and Strategy, to maintain close contact with the
Group companies and to act as an interface and promoter
for the implementation of local entrepreneurship. The focus
is on maintaining an intensive collaborative exchange
between all Group companies and their around 29,000
employees in 30 countries that allows both the interests of
the individual companies and the Group as a whole to be
pursued.
In addition to international collaboration, profitability and
sustainable growth are also important objectives for VIG
Holding and the Group as a whole. To achieve these
objectives, sustainability-related topics based on the five
areas of core business, customers, employees, society and
the environment are used with a regional focus on Central
and Eastern Europe, with the aim of further expanding the
Group’s leading position in the insurance market in the CEE
region.
VIG 25 STRATEGIC PROGRAMME
The VIG 25 strategic programme was developed for the
period from 2021 to 2025.
Current trends and developments and their effects on the
insurance industry have led to clear requirements for the
Group: strengthening sustainability as an integral part and
foundation of the business model, using digitalisation to
promote greater efficiency and productivity, developing new
ways to approach and retain customers and promoting a
general understanding of risk provisions.
STRONG CAPITAL RESOURCES
VIG Insurance Group’s strong capital resources continue to
be an important asset for the Group. The VIG Insurance
Group solvency ratio of 280 % and VIG Holding solvency
rate of 417 % at the end of 2022 show that their solvency
is stable even in times of crisis. This large capital buffer
allows Vienna Insurance Group to pursue sustainable
profitable growth.
The international rating agency Standard & Poor’s (S&P)
reconfirmed its A+ rating with a stable outlook for Vienna
Insurance Group. This means that VIG continues to be one
of the highest-rated companies in the Vienna Stock
Exchange’s ATX index.
The ratings agency once more rated VIG’s business profile
as “strong” and its financial risk profile as “very strong”. As
the market leader in Austria and multiple CEE markets,
Vienna Insurance Group continues to benefit from the
upswing in insurance markets and from its geographic and
commercial diversification. S&P once more sees VIG’s
excellent capital resources as a relative strength for the
rating. The Group’s bancassurance partnership with the
Erste Group, which has spanned many years, was also
praised.
Company profile
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
183
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 2022 (and in the same period in
2021):
2022
2021
Direct business
Indirect business
Total
Direct business
Indirect business
Total
in EUR '000
Premiums written 250,734
1,248,584
1,499,318
186,149
1,098,741
1,284,890
Net earned premiums 238,564
1,206,720
1,445,284
176,543
1,068,386
1,244,929
Expenses for claims and insurance
benefits 215,455
737,446
952,901
171,709
620,914
792,623
Administrative expenses 18,472
440,611
459,083
14,635
437,708
452,343
Reinsurance balance -1,681
-5,991
-7,672
15,797
-3,836
11,961
The reinsurance balance is composed of net earned reinsurance premiums, effective reinsurance claims and reinsurance
commissions.
FINANCIAL PERFORMANCE INDICATORS
Premium income
VIG Holding generated a total premium volume of
EUR 1,499.32 million in 2022, representing a year-on-year
increase of 16.7 %. Direct premiums written (corporate
business) increased 34.70 % year-on-year to EUR 250.73
million. Premium income from indirect business (assumed
reinsurance) was EUR 1,248.58 million, 13.6 % higher than
the previous year. The value of assumed reinsurance
includes EUR 21,484,000 (EUR 15,639,000) for health
insurance and EUR 16,174,000 (EUR 5,133,000) for life
insurance.
VIG Holding retained EUR 1,356.82 million (2021:
EUR 1,178.62 million) of the premiums written. EUR 142.50
million was ceded to reinsurers in 2022 (2021: EUR 106.27
million). Gross earned premiums were EUR 1,445.28 million
(2021: EUR 1,244.93 million). Net earned premiums
increased EUR 165.82 million to EUR 1,305.50 million.
Expenses for claims and insurance benefits
Gross expenses for claims and insurance benefits were
EUR 952.90 million in 2022 (2021: EUR 792.62 million).
EUR 215.46 million of this amount was attributable to
corporate business (2021: EUR 171.71 million), EUR 43.75
million more than the previous year.
The gross claims ratio for direct business (excluding health
and life insurance) decreased from 96.6 % to 89.6 %.
Expenses for claims and insurance benefits for assumed
reinsurance rose 18.0 % to EUR 717.31 million. The gross
claims ratio for indirect business was 61.2 % (2021:
58.0 %). After deducting reinsurance of EUR 126.15 million
(2021: EUR 112.22 million), expenses for claims and
insurance benefits were EUR 806.62 million (2021: EUR
667.60 million).
Administrative expenses
Administrative expenses were EUR 459.08 million in 2022,
or 1.5 % higher than the previous year (2021: EUR 452.34
million). This change was primarily due to an increase in
commissions for indirect business. EUR 18.47 million of the
administrative expenses were for the corporate business
and EUR 440.61 million for the reinsurance business. After
Management report 2022
184
Annual Financial Report 2022
reinsurance commissions for ceded reinsurance business,
EUR 453.12 million in administrative expenses remained for
VIG Holding. This was an increase of EUR 5.77 million
compared to the previous year.
Combined ratio
VIG Holding’s combined ratio was 98.7% in 2022 (2021:
99.6 %), and 95.8 % for direct business (corporate
business) (2021: 95.0 %). This ratio is calculated as the sum
of all underwriting 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 159.26 million
(2021: EUR 400.55 million). Impairment of shares in
affiliated companies was EUR 212.89 million (2021: EUR
105.35 million).
2022
2021
in EUR '000
Land and buildings 10,891
9,531
Investments in affiliated companies
and participations
326,510
599,565
Other investments -14,065
21,130
Total income (net) 323,336
630,225
Other investment and interest income 46,644
16,982
Expenses for asset management -93,355
-117,911
Interest expenses -96,934
-88,501
Other investment expenses -20,431
-40,244
Investment profit according to
income statement 159,260
400,551
Result from ordinary activities
VIG Holding earned a result from ordinary activities of
EUR 169.44 million in 2022 (2021: EUR 399.52 million).
Investments
Investments, including liquid assets, were EUR 7,191.80
million as of 31 December 2022 (2021: EUR 6,834.52
million).
Deposits were EUR 1,218.47 million in 2022 (2021:
EUR 1,092.8 million). Of the investments at the end of 2022,
68,0 % (2021: 67,6 %) were shares in affiliated companies
and participations, 9,6 % (2021: 9,8 %) were bonds
(including pension funds), 2,1 % (2021: 0,8 %) were loans,
2,1 % (2021: 2,0 %) were land and buildings, and 18,2 %
(2021: 19,8 %) were bank balances and cash on hand.
Detailed information is provided on pages 204 and 205 of
the annual financial statements.
BREAKDOWN OF INVESTMENTS IN 2022
9.6% bonds (9.8% )
2.1% land and buildings
(2.0% )
18.2% bank balances and cash
on hand (19.8% )
2.1% loans (0.8% )
68.0% shares in affiliated
companies and participations (67.6% )
2021 values in parantheses
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VIG Holding acquires Aegon N.V. companies
The purchase agreement that was concluded on 29
November 2020 for the VIG Group acquisition of the
companies of the Dutch company Aegon N.V. in Hungary,
Poland, Romania and Türkiye has been partially closed. The
VIG Group finalised the acquisition of the Hungarian Aegon
companies in March 2022. Consequently, the Hungarian
state holding Corvinus holds a 45% stake in Aegon Hungary.
In April 2022, the acquisition of the Turkish Aegon insurance
company was successfully completed. The acquisitions of
the Aegon companies in Poland and Romania are
provisionally expected to be completed in 2023, once the
outstanding approvals have been granted by the authorities.
Underwriting provisions
Underwriting provisions were EUR 1,633.66 million as of 31
December 2022 (2021: EUR 1,422.75 million). This
corresponds to a year-on-year increase of 14.8 %, which
was primarily due to provisions for outstanding claims
arising from direct business. The reinsurers’ share was
EUR 255.29 million (2021: EUR 179.14 million).
Solvency ratio
VIG Holding’s solvency ratio of 417 % is high due to an
outstanding endowment of capital resources combined
with a low capital requirement and is also down to its
function as a holding company in the Group.
NON-FINANCIAL PERFORMANCE INDICATORS
For the 2022 reporting year, VIG Holding is publishing its
sixth sustainability report that addresses the sustainability-
related issues for the Group. This report can be
downloaded free of charge at www.vig.com/sustainability-
reports. A few examples of the VIG Holding’s own initiatives
are presented below.
VIG Family Fund – Solidarity with Ukraine
Since the first day of the Russian attack on Ukraine, VIG has
shown solidarity with the people affected. VIG itself is
represented by several companies in the country: USG,
Kniazha, Kniazha Life, VIG Services Ukraine and Ukrainian
Assistance Service. Help for Ukrainian colleagues came
from a number of VIG companies and operated at a variety
of levels. Protecting employees and their families was the
primary objective of the support measures. In addition to
many initial aid measures, the management of VIG Holding
also established the VIG Family Fund. The basic
endowment of EUR 5 million was increased to its current
level of around EUR 7 million by other contributions from the
Group companies and direct contributions from employees.
The fund is intended to cover part of the medium- and long-
term losses due to the war and help the families of the
Ukrainian companies directly affected by the war during
reconstruction.
Social involvement – Example: Social Active Day
On Social Active Day, VIG employees set a strong, cross-
border example of solidarity every year. VIG employees
have been able to get involved in social causes since Social
Active Day was launched by VIG’s principal shareholder,
Wiener Städtische Versicherungsverein, back in 2011.
Involvement can take many forms, from preparing and
distributing food and collecting litter in green spaces
through to offering support and guidance to children, young
people and the elderly. For example, in the year under
review, Elisabeth Stadler and Liane Hirner emphasized their
solidarity with their Ukrainian colleagues and their families,
who came to Vienna after the war broke out, by inviting
them to go to the Prater amusement park with them.
205 (195) VIG Holding employees took part in this Group-
wide initiative in 2022.
VIG Holding promotes peace – Example: Global Peace Photo
Award
The events in Ukraine show the value of peaceful existence.
VIG is therefore committed to enabling and maintaining
peace. “People and companies both need a peaceful
environment. It is the only way that people can develop freely
and companies can plan for the future and do well in the long
term,” says Elizabeth Stadler. VIG Holding has been one of
the main partners of the Global Peace Photo Award since
2022. It had already sponsored the special prize for the
Children’s Peace Image of the Year in the years before. The
international photo competition selects pictures that express
the idea of peaceful coexistence. By doing so, it inspires
hope and celebrates pacifism – in a world where the media
presents many images of raw brutality, hate and destruction
rather than empathy and caring. Exhibitions are held in public
spaces to bring the message of peace to as many people as
possible. VIG Holding therefore also supported an exhibition
of the peace photos in the Slovenian city of Celje in 2022,
which attracted more than 140,000 visitors.
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The winning photo in 2022, titled “A small yet great victory
over the pandemic”, by photographer Sourav Das shows
the initiative of an Indian teacher who moved his class
outdoors during the COVID-19 pandemic to ensure their
right to an education.
The Global Peace Photo Award was inspired by the 1911
Nobel Peace Prize winners Alfred Fried and Tobias Asser. It
has been awarded since 2013 and in addition to VIG also
receives support from the World Press Photo Foundation,
UNESCO and the Austrian Parliament. 15,000 pictures
were submitted from 115 countries in 2022.
Notes instead of borders – Example: Gustav Mahler Youth
Orchestra
The Gustav Mahler Youth Orchestra (GMYO) in Vienna is
considered to be the world’s leading youth orchestra. In
addition to promoting young musicians, it also helps them
play music with their colleagues from other countries. Since
1992, it has been open to musicians younger than 26 years
of age from anywhere in Europe. The high point for the
GMYO in summer 2022 was the prestigious invitation from
the Salzburg Festival to participate in the opening concert
and a theatrical opera production. VIG Holding has
supported the orchestra for many years.
Throw prejudice overboard – Example:
“mirno more” sailing project
“mirno more” is Croatian for “peaceful sea” – and is also the
name of the world’s largest social education sailing project
for disadvantaged children and young people. Launched at
the beginning of the Yugoslavian crisis in 1992, the peace
fleet aims to throw prejudice overboard and sail towards
friendship and peaceful coexistence instead. 800 people
and 90 boats took part in the week-long sailing project off
the Croatian coast in 2022. VIG Holding sponsored this
peace project once again.
Employees
VIG Holding offers many attractive prospects and
development opportunities for its employees. It offers a
broad range of training and advanced training courses and
an attractive working environment. The clearly defined skills
in the VIG Talent Toolset form the basis for many learning
programmes that support the personal development of
employees and the dynamic further development of the VIG
Group. With a dedicated career path for experts,
employees are offered another development option as an
alternative to management careers.
The “VIG Talk” annual review took place in VIG Holding.
These meetings between employees and managers take
place once a year and consist of two parts. The “Target Talk”
focuses on mutual feedback and work priorities and
objectives, and “Talent Talk” provides an opportunity to
think about the VIG Talent Toolset and discuss personal and
professional development.
In addition, a diversity concept that focuses on the criteria
of gender, internationality and generations has been used
for several years. More information on this concept is
available in the Corporate Governance Report. The advisory
company Boston Consulting Group and “trend” business
magazine recognised VIG Holding as a “Diversity All Star”
due to it being among the top companies in the BCG
Gender Diversity Index Austria for five years. This index
rates gender parity in Austria’s 50 largest listed companies.
The option of working from home, flexible working hours, a
company cafeteria, company kindergarten, sports and
health programmes and other medical services increase the
appeal of the work environment. The VIG Group
consciously focuses on “life balance” in the Company
because the term is better at expressing the idea that “work”
and “life” are inseparable than “work-life balance”. VIG
Human Resources is therefore constantly developing
measures to improve the “life balance” of everyone in the
organisation. In VIG Holding, all employees – and relatives
in the same household – can, for instance, receive
assistance with personal or work problems. A free,
anonymous hotline offers professional advice and coaching
on topics such as parental leave, workplace conflicts and
family stress. This strengthens mental health and resilience.
The employee assistance programme also includes a
wellbeing platform with videos, podcasts and articles. This
led to the launch of the integrated concept of “Keep Moving”
for improving sustainability, mobility and health. VIG Holding
employees can choose from a number of sports and
mobility programmes to maintain and promote their life
balance. Programmes for healthy and sustainable sports
and mobility options have been combined with information
on sustainability and recycling. They are also aimed at
strengthening employee loyalty and VIG’s image as an
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attractive employer. Part of Keep Moving is the “VIG Bike
Action”, whereby VIG Holding employees can use a
pushbike or an electric bike for four years.
The training programmes – both in-person and virtual – are
constantly being further expanded. The “Masterplan” online
platform, for example, offers an extensive selection of
training courses. Specific events for employees, executives
and experts – often including external speakers – offer an
informative programme and space for networking.
In 2022, VIG Holding was once more included in the
“Leading Employers Austria” list. Based on the world’s most
comprehensive study, the study was performed as a meta-
analysis. The largest annual recruitment study by
“Best Recruiters” uses around 250 criteria to rank the
employer branding activities and recruitment of 500
Austrian companies. Once again, VIG Holding was ranked
as the best in the industry and, for the first time, came third
in the overall rating as a result of the consistent quality of
its public image and service-based approach for applicants.
The current human resources strategy has three main
objectives: VIG Insurance Group should be seen as a
diverse, innovative, learning organisation, empowering
executives to create a positive working environment and
support employees with future challenges, and an
appropriate feedback culture should exist. These objectives
are pursued using strategic HR partnerships, a value-driven
working environment, and executives and employees who
are fit for the future.
There were an average of 317 employees, including
Managing Board members, in 2022.
Research and development
Although VIG companies do not perform any research
activities as defined in § 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 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. The VIG Group also indirectly
promotes research activities through its participations in
ISTCube to increase basic research in Austria and APEIRON
and invIOS to support research into biotech and the fight
against cancer and respiratory illnesses.
Other information
VIG Holding established three branch offices in financial year
2019, extending the business operations of the 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
The risk management system is well integrated into VI
G Holding’s organisational structure. The following chart shows the
units that play an important role in the risk management system.
The Managing Board as a whole is responsible for the risk
management system, in particular for the following areas:
• Set up and promote the risk management system
• Define and communicate the risk strategy, including ris
k
t
olerances and risk appetite
• Approve corporate risk management guidelines
• Take the risk situation into account in strategic decisions
Both the Enterprise Risk Management and Asset Risk
Management units report directly to Managing Board
member Liane Hirner. They are assisted by the Digitalisation,
Finance and Risk department, which also reports to
Managing Board member Liane Hirner and is where the
Solvency II reporting system is organised.
RISK COMMITTEE
The VIG Holding Managing Board established the Risk
Committee to ensure regular discussions of current matters
relating to risk management across functional areas within
the organisation and an exchange of information on the risk
situation between the members of the committee and the
Managing Board. The Risk Committee meetings take place
at least quarterly and are chaired by the Managing Board
member responsible for this area. The Risk Committee
reports to the Managing Board after its meetings.
ENTERPRISE RISK MANAGEMENT
The department reports to Managing Board member Liane
Hirner. The head of the department performs the risk
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management function required under Solvency II at the
Group and solo level.
The main responsibilities of the department include
determining the overall risk profile of the Group and VIG
Holding 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. Calculation of the solvency
capital requirement during the year, analysis of risk-bearing
capacity using proprietary analysis tools and reviewing the
internal control system are other important activities
performed by the department.
The department also assists the Managing Board with
updating the corporate risk strategy, improvements to the risk
organisation and further corporate risk management topics.
ASSET RISK MANAGEMENT
The department reports to Managing Board member Liane
Hirner. The primary responsibility of the department is to
analyse, assess and monitor risks associated with investments,
in particular with respect to the VIG Insurance Group’s
solvency result and financial result. For this purpose, the
department specifies Group-wide requirements for risk
assessment and implements a central system for investment
management and risk monitoring. The department is also
responsible for maintaining an internal rating approach.
ASSET MANAGEMENT
The department reports to Managing Board member
Gerhard Lahner. One of the main responsibilities of the
department is to define a strategic orientation for the
investments of each insurance company and for VIG
Insurance Group as a whole, and to specify an investment
strategy and investment process aimed at ensuring that
current income is as high as possible, but also as secure as
possible, while simultaneously taking advantage of
opportunities to increase the value of investments. Guidelines
and limits are used to manage investments. Regular reports
are also provided for investments, limits and income.
ACTUARIAL DEPARTMENT
The department reports to Managing Board member Peter
Thirring. The head of the department performs the Actuarial
function required by Solvency II. The department is
therefore responsible, in particular, for the duties related to
the Actuarial function. The Actuarial department also
calculates the embedded value for the life and health
insurance businesses and prepares profitability analyses
and company valuations. The department also assists
actuarial collaboration and functional networking.
REINSURANCE
The department reports to Managing Board member Peter
Höfinger. The department coordinates and assists all
companies in 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.
The department also administers Group-wide reinsurance
programmes in the non-life lines of business. The primary
objective is to create a safety net to provide continuous
protection for all of the companies in VIG Insurance Group
against the negative effects of catastrophes, individual large
losses and negative changes in entire insurance portfolios.
PLANNING AND CONTROLLING
The department is an important part of the integrated risk
management approach and reports to Managing Board
member Hartwig Löger. The department coordinates
business planning over a 3-year horizon. The standardised
reports include key figure and variance analyses for
planning, forecasts and ongoing performance of VIG
Holding and other insurance companies. Regular monthly
premium reports, quarterly reports for each company
(aggregated at the country and VIG Insurance Group level)
and cost reports are prepared.
HOLDING IT
The Holding IT department reports to Managing Board
member Gerhard Lahner. The department is responsible for
managing IT at VIG Holding level (IT strategy, IT governance,
IT security, IT projects, etc.) and works closely with the VIG
Corporate IT department, which is responsible for these
matters at a Group level.
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TREASURY INCL. ASSET LIABILITY MANAGEMENT
The department reports to Managing Board member
Gerhard Lahner. The observation, measurement and
optimisation of future cash flows on the asset and liabilities
sides are the main responsibilities of the Asset Liability
Management department. It is also responsible for the
exchange of knowledge and improvements in the Group in
this area.
CORPORATE BUSINESS
The department reports to Managing Board member Peter
Höfinger and underwrites insurance contracts for large
Austrian and international customers. The department also
assists subsidiaries with resources and know-how. The aim
is to achieve a uniform underwriting philosophy and
approach in all Vienna Insurance Group companies that
perform such business.
INTERNAL AUDIT
The department reports to the Managing Board.
Chairwoman of the Managing Board Elisabeth Stadler is the
contact person in the Managing Board. The Internal Audit
department systematically monitors operating and business
processes, the internal control system of all operational
business areas, including compliance with legal
requirements, and the functionality and adequacy of risk
management. The department operates continuously and
reports directly to the Managing Board. The head of the
department performs the Internal Audit function required by
Solvency II.
VIG Holding’s overall risk can be divided into the following risk
categories:
Market risk:
Market risk is the risk of losses due to changes
in market prices. Changes in value occur, for example, due
to changes in yield curves, share prices, exchange rates
and the value of land and buildings and participations.
Credit risk:
Credit risk quantifies the potential loss due to a
deterioration of the situation of a counterparty against which
claims exist.
Liquidity risk:
This category includes the risk of VIG
Insurance Group not having sufficient assets that can be
liquidated at short notice to satisfy its payment obligations.
Underwriting risks:
The core business of the Vienna
Insurance Group consists of the transfer of risk from policy
holders to the insurance company. Underwriting risks in
the areas of reinsurance and non-life insurance are primarily
the result of changes in insurance-specific parameters, such
as loss frequency, loss amount, lapse rates and lapse costs.
Reputation risks:
Reputation risk is the risk of negative
changes in business due to damage to a company’s
reputation.
Operational risks:
Operational risks may result from
deficiencies or errors in business processes, controls or
projects caused by technology, staff, organisation or
external factors.
Strategic risks:
Strategic risks can arise due to changes in
the economic environment, case law, or the regulatory
environment. Established risk management processes are
used to regularly identify, analyse, evaluate, report, control
and monitor all the risks to which VIG Holding is exposed.
The risk control measures used are avoidance, reduction,
diversification, transfer and acceptance of risks and
opportunities. A Group-wide unified internal control system
also helps to ensure compliance with the guidelines and
requirements resulting from risk management. VIG Holding
is primarily exposed to market risk due to its activities as an
insurance holding company. A conservative investment
policy is used to limit other market risk due to investments.
Market risk is monitored using fair value measurement,
value-at-risk (VaR) calculations, sensitivity analysis and
stress tests.
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.
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VIG Holding is also exposed to underwriting risks as a result
of its international corporate business and reinsurance
business. Appropriate underwriting provisions are
determined using recognised actuarial methods and
assumptions and managed by means of guidelines
concerning the assumption of insurance risks. VIG Holding
also limits the potential liability from its insurance
business/active reinsurance business by ceding part of the
risk it has assumed to the external reinsurance market
through the Group reinsurance company VIG Re.
With respect to credit risk, consideration is only given to
those issuers or contracting parties whose credit quality or
reliability can be assessed by VIG Holding, whether on the
basis of an in-house analysis, credit assessments/ ratings
from recognised sources, provision of security or the
possibility of recourse to reliable mechanisms for
safeguarding investments. Operational and strategic risks
which might be caused by deficiencies or errors in business
processes, controls and projects, or changes in the
business environment, are also continuously monitored.
Limits are used to keep concentrations within the desired
margin of safety.
Investments
VIG Holding’s investments consist primarily of shares in
affiliated companies, participations and deposits. Additional
investments are mainly made in fixed-interest securities
(bonds, loans) and real estate, and only to a small extent in
shares and other investments. VIG Holding aligns its
investments to its liability profile and aims to achieve
sustainable increases in value in accordance with VIG
Insurance Group investment guidelines, which are based on
a long-term conservative investment policy.
Use of forward exchange transactions
VIG Holding uses forward exchange transactions and
currency swaps to hedge expected dividend payments in
the most important currencies, CZK and PLN, and planned
distributions of Company earnings in the same currencies
for the current financial year.
The expected and planned amounts are checked regularly
and used to make any needed adjustments to the hedge
amounts on the relevant date.
Sustainability risks
Events or changes in conditions in the environmental or
social areas could have a negative effect on VIG Insurance
Group’s net assets, financial position and results of
operations, as well as its reputation. These include, among
others,
• climate change,
• potentially stricter requirements for sustainability in the
area of environmental protection,
• political measures to promote sustainable investment,
and
• stricter requirements for a sustainable social
environment (labour standards, occupational safety and
working conditions, compensation, etc.).
VIG Insurance Group includes sustainability risks in its
regular risk management processes (e.g. ORSA).
Macroeconomic risks
As market players, the business activities of VIG Holding
and its subsidiaries are also influenced by the development
of macroeconomic factors, such as the rate of
unemployment, GDP, and inflation.
2022 saw a significant rise in inflation in almost all markets
in which the VIG Insurance Group operates. Global
economic growth was also subdued by the ongoing
COVID-19 pandemic and the Russia–Ukraine conflict.
Inflation trends are being closely monitored by VIG and
potential impacts are analysed using scenario analyses,
enabling appropriate responses to an ever-changing
environment to be taken.
Risks related to the Russia–Ukraine conflict
The war between the Russian Federation and Ukraine
began on 24 February 2022 when Russian forces invaded
Ukraine. The VIG Insurance Group operates in Ukraine with
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Annual Financial Report 2022
three insurance companies, which are mainly in the western
regions of the country, so business operations have thus far
only been directly impacted to a moderate extent.
Further development of the conflict and the potential for further
escalation of sanctions and countermeasures could further
worsen the implications for financial markets and the economy
in general. A number of risks may materialise for the VIG
Insurance Group as a result; these are being addressed and
handled as part of our sustainable risk management.
Dangers associated with the welfare of employees and the
operating business activities (e.g. office infrastructure, energy,
communication, IT security) pose material, direct risks for VIG
Insurance Group’s Ukrainian insurance companies.
In addition, at the VIG Insurance Group level, the volatility
on the capital market fuelled by the conflict and the
possibility of further sanctions and their consequences for
the economy in particular represent significant risks that
may have an impact on operating performance and
business activities.
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.
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 were recognised at fair value in accordance with
accounting requirements.
• Ownership: proper presentation of rights and
obligations.
• Presentation: all financial statement items are correctly
presented and disclosed.
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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 § 243A AND
§ 243(3)(3) UGB
Detailed information on the disclosures in accordance with
§ 243a and § 243(3)(3) UGB is available in the notes to the
financial statements on page 211.
DISCLOSURES ON OUTSOURCING IN ACCORDANCE
WITH § 156(1)(1) IN CONJUNCTION WITH § 109 VAG
For VIG Holding, it was decided to outsource IT services to
internal and external IT service providers. Outsourcing
agreements that had been approved by the supervisory
authority existed in 2022 with IBM Austria (Internationale
Büromaschinen Gesellschaft m.b.H.) and the internal Group
IT system provider twinformatics GmbH, both
headquartered in Austria. The outsourcing agreement with
IBM was terminated as a result of the assumption of all
related services by twinformatics with effect from 28.2.2023.
twinformatics GmbH has also assumed full responsibility for
all IT services (with the exception of those listed in the
following paragraph) for the Austrian VIG insurance
companies and concludes any sub-outsourcing required for
this purpose while observing statutory and regulatory
requirements and after consulting with the VIG insurance
companies.
From 1.3.2023, IT services in the VIG Group will be provided
by VIG IT-Digital Solutions GmbH (“VIG IT-DS”). VIG IT-DS
was founded by VIG Holding in order to further reinforce the
alignment of IT services to be provided Group-wide and to
have these services provided by a company that focuses
on these services. Meanwhile, an outsourcing agreement
approved by the Austrian Financial Market Authority (FMA)
was concluded with VIG IT-DS. This agreement sets out the
ultimate responsibility of VIG IT-DS (with twinformatics as a
key sub-service provider) for all VIG solutions (SAP NewGL,
IFRS 9/17, ReadSoft and some smaller supporting
applications). In addition to these outsourcing agreements,
VIG Holding has not outsourced any critical or important
functions or business activities.
OUTLOOK
Economic outlook
Although prices are losing momentum, inflation rates should
remain at a high level in 2023. State subsidies and
increasing wages may have some potential for second-
round effects. In particular, inflation will likely continue to be
defined by events on the supply side. The Russian attack
on Ukraine contributed enormously to rising energy prices.
The accompanying acceleration of an energy revolution
towards renewable energies, which was already planned,
should hold energy prices at a high level into the future.
Accordingly, the Central Banks’ policies will continue to be
correspondingly restrictive or will become more restrictive,
and will provide a stable basis for the expectation of
increased returns.
China is expected to remain a relevant and decisive factor.
The U-turn in its COVID-19 policy should continue to pose
a risk to supply chains for as long as infection rates remain
high. As a result, no great difference will be perceptible
compared with the previous zero-COVID strategy – at least
not in the short term. That said, the recovery of China’s
domestic demand in particular represents a key criterion for
global development.
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In this environment, a considerable improvement in
c
onsumer sentiment and therefore a recovery of private
demand can only be expected in the case of rather high
levels of uncertainty. In all, 2023 should be the culmination
of all adverse impacts. The most likely scenario is that there
will be weak growth at the start of 2023, with an indication
that recovery will take place towards the end of the year.
In this context, the analysts at the Erste Group expect
almost complete stagnation of the economy in the
eurozone in the 1
st
quarter of 2023. With prices losing their
momentum, consumption should become more important
in the 2
nd
half of the year. Falling employment may cause a
certain risk to take effect here. As the environment
continues to brighten, investments should also increase.
With energy and gas prices representing a considerable
cause of uncertainty, the Erste Group expects growth of 0.6%
in 2023, accompanied by an average inflation of 5.6%.
A similar situation is expected in Austria, with the economy
expected to grow by 0.6% in 2023 and inflation to continue
to ease, with an average of 6.0% for 2023 to be reflected in
the budget. Pressure on the employment market as a result
of the pandemic seems, for the most part, to have been
absorbed by short-term work. After high levels of
unemployment in previous years, an unemployment rate of
4.6% is expected for 2022 and 2023.
The situation is considerably different in the CEE region in
that the central banks of the countries in this region
adjusted their monetary policies to the situation at a much
earlier stage – and in a decidedly spirited manner – and
should therefore already have reached the peak of their
cycles of interest rate increases. Even though inflation rates
in the CEE region have increased further, and have even
reached 22% in Hungary, a turning point is still expected.
The average level of inflation for the region is expected to
be at 12.1% for 2023. External factors such as energy
prices and supply chains are also decisive factors in the
CEE region and should therefore also lead to an easing of
inflation rates in the 2
nd
half of 2023. Depending on the
commitment of local governments, considerable financial
contributions from the EU could well support economic
development in the region. For example, Romania and
Croatia are currently the leading countries making use of the
economic programme put in place. Private consumption in
the CEE region is being further subdued by real wage
decreases, which has an influence on the region’s moderate
growth outlook of 0.9% for real GDP. In terms of the
unemployment rate, it is currently assumed that this will rise
from 4.8% to 5.1% in 2023.
Outlook for VIG Insurance Group
As a market leader in Central and Eastern Europe, VIG
Insurance Group with its some 29,000 employees is in an
excellent position to take advantage of the opportunities
available in this region and the long-term growth options
they offer. It is therefore implementing its VIG 25 strategic
programme, which was developed together with the CEOs
of the VIG insurance companies based on trends and
developments in the insurance business and will run each
financial year through to 2025. In addition to creating
sustainable value and achieving sustainability objectives,
one of the key objectives of the programme is to expand
the leading market position in Central and Eastern Europe,
with the aim of achieving at least a top three position in each
CEE market, with the exception of Slovenia. A major step in
this direction is the successful acquisition of the companies
in Hungary and Türkiye that were formerly part of the Dutch
Aegon Group. This took VIG to number one in the
Hungarian market. Only the approval from Romania is still
required for closing the acquisition of Aegon’s remaining
Eastern European business with companies in Poland
and Romania. It is expected to be formally concluded in
2023.
A range of 150 to 200% is specified for the VIG Group
solvency ratio without taking into account transitionals for
underwriting provisions used by some individual Group
companies. The new financial reporting process, as set out
by IFRS 9/17, which took effect on 1 January 2023, will lead
to the relevant financial KPIs being adjusted. The new
financial reporting process will not have any impact on the
strategy or business model of VIG. Further information on
the impact of IFRS 9/17 on the consolidated balance sheet
and the consolidated shareholders’ equity can be found in
the notes to the consolidated financial statements starting
on page 35.
In the context of the current dividend policy, which provides
for a distribution in the range of 30 to 50% of Group net
profits, the Managing Board recommends to the boards
that the dividend be increased from EUR 1.25 to EUR 1.30
per share for the financial year 2022. This corresponds to
an increase of 4.0 % compared to the previous year and a
dividend payout ratio of 35.7%. The dividend per share is
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
195
based on the company’s success and takes into account
the current volatile environment.
The development of the financial year 2023 is difficult to
assess due to a number of uncertainty factors, especially
associated with the ongoing war in Ukraine and its far-
reaching consequences. The weaker macroeconomic
environment and the high levels of volatility expected on the
financial markets make it harder to predict how the
company will develop. In this context, and in view of the
transition to a new financial reporting process from 2023,
any specific outlook for 2023 on the basis of IFRS 9/17 will
only be possible once the year is underway. Given that VIG
has been able to manage the current challenges in its
insurance business operations very well so far, following
2022 the Group continues to aim to achieve positive
operating performance in 2023, subject to the factors
mentioned above.
Outlook for VIG Holding
VIG Holding has set a goal for financial year 2023 of
increasing its premium volume from international reinsurance
and cross-border corporate business. VIG Holding will also
work with the insurance companies to further focus on the
strategic priorities in the “VIG 25” strategic programme and
optimise processes and earning power.
Appropriate measures will 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, 20 March 2023
The Managing Board:
E
lisabeth Stadler
General Manager (CEO),
Chairwoman of the Managing
Board
H
artwig Löger
Deputy General Manager, Deputy
Chairman of the Managing Board
WP/StB Mag. Liane Hirner
CFRO, Member of the Managing
Board
Mag. Peter Höfinger
Member of the Managing Board
M
ag. Gerhard Lahner
COO, Member of the Managing
Board
G
ábor Lehel
CIO, Member of the Managing
Board
M
ag. Harald Riener
Member of the Managing Board
P
eter Thirring
CTO, Member of the Managing
Board
196
Annual Financial Report 2022
Gr
oup management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
197
Annual
financial
statements
in accordance with the Austrian
Commercial Code (UGB)
198
Annual Financial Report 2022
BALANCE SHEET AS OF 31. DECEMBER 2022
Assets 31.12.2022
31.12.2021
in EUR
in EUR '000
A. Intangible assets 24,184,280.77
21,456
I. Other intangible assets 24,184,280.77
21,456
B. Investments 7,437,861,657.05
6,781,244
I. Land and buildings 155,278,540.53
134,259
II. Investments in affiliated companies and participations 5,385,312,765.76
5,039,921
1. Shares in affiliated companies 4,862,714,388.86
4,593,705
2. Bonds and other securities of affiliated companies and loans to affiliated companies 498,382,305.71
421,500
3. Participations 24,216,071.19
24,216
4. Bonds and other securities of and loans to companies in which an ownership interest is held 0.00
500
III. Other investments 678,804,424.71
514,238
1. Shares and other non-fixed-interest securities 6,521,231.94
132,419
2. Bonds and other fixed-interest securities 331,284,542.22
168,793
3. Mortgage receivables 2,018,000.01
2,100
4. Other loans 940,554.02
926
5. Bank deposits 338,040,096.52
210,000
IV. Deposits on assumed reinsurance business 1,218,465,926.05
1,092,826
C. Receivables 328,542,282.34
283,040
I. Receivables from direct insurance business 89,576,519.36
71,388
1. from policyholders 23,595,375.12
6,733
2. from insurance intermediaries 128,808.19
134
3. from insurance companies 65,852,336.05
64,521
II. Receivables from reinsurance business 69,069,930.83
75,569
III. Other receivables 169,895,832.15
136,083
D. Pro rata interest 12,940,361.60
7,644
E. Other assets 974,103,868.07
1,147,833
I. Tangible assets (not incl. land and buildings) 1,697,277.43
1,736
II. Current bank balances and cash on hand 972,405,535.38
1,146,097
III. Other assets 1,055.26
0
F.Deferred charges 13,306,283.42
14,424
Total ASSETS 8,790,938,733.25
8,255,641
Separate financial statements
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
199
BALANCE SHEET AS OF 31. DECEMBER 2022
Liabilities and shareholders' equity 31.12.2022
31.12.2021
in EUR
in EUR '000
A. Shareholders' equity 3,842,449,902.27
3,790,773
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 1,020,000,000.00
1,006,715
IV. Risk reserve 51,898,509.00
45,587
V. Net retained profits 370,431,503.00
338,352
of which brought forward 178,351,602.38
143,231
B. Subordinated liabilities 1,684,400,000.00
1,400,000
I. Hybrid bond 300,000,000.00
300,000
ll. Supplementary capital bond 1,384,400,000.00
1,100,000
C. Underwriting provisions – retention 1,633,661,299.95
1,422,746
I. Unearned premiums 149,271,388.94
133,603
1. Gross 156,505,681.53
138,372
2. Reinsurers' share -7,234,292.59
-4,769
II. Mathmatical reserve 58,166,916.60
5,146
1. Gross 58,166,916.60
5,146
III. Provision for outstanding claims 1,395,328,045.41
1,267,125
1. Gross 1,643,383,299.06
1,441,492
2. Reinsurers' share -248,055,253.65
-174,367
IV. Provision for profit-unrelated premium refunds 10,655,524.00
0
1. Gross 10,655,524.00
0
V. Equalisation provision 16,335,425.00
14,017
VI. Other underwriting provisions 3,904,000.00
2,855
1. Gross 3,904,000.00
2,855
D. Non-underwriting provisions 196,946,460.50
211,344
I. Provision for severance pay 1,086,825.00
839
II. Provision for pensions 69,511,531.00
63,592
III. Tax provisions 3,500,357.14
3,500
IV. Other provisions 122,847,747.36
143,413
E. Other liabilities 1,432,749,509.53
1,429,771
I. Liabilities from direct insurance business 158,790,839.79
144,936
1. to policyholders 5,753,056.64
41,588
2. to insurance intermediaries 4,686,655.43
710
3. to insurance companies 148,351,127.72
102,638
II. Liabilities from reinsurance business 12,130,571.68
11,673
III. Bond liabilities (excl. supplementary capital) 503,835,616.55
503,836
IV. Liabilities to financial institutions 227,964,705.49
227,985
V. Other liabilities 530,027,776.02
541,341
F.Deferred charges 731,561.00
1,007
Total LIABILITIES AND SHAREHOLDERS' EQUITY 8,790,938,733.25
8,255,641
200
Annual Financial Report 2022
INCOME STATEMENT FOR THE FINANCIAL YEAR FROM 1. JANUA
RY TO 31. DECEMBER 2022
Underwriting account 2022
2021
in EUR
in EUR '000
1. Net earned premiums 1,305,495,602.75
1,139,671
Premiums written 1,356,822,905.37
1,178,623
Gross 1,499,318,102.45
1,284,891
Ceded reinsurance premiums -142,495,197.08 -106,268
Change in unearned premiums -51,327,302.62 -38,952
Gross -54,034,807.70 -39,961
Reinsurers' share 2,707,505.08
1,009
2. Investment income from underwriting business 36,974,083.03
8,520
3. Other underwriting income 1,204,632.66
866
4. Expenses for claims and insurance benefits -826,754,171.55 -680,406
Payments for claims and insurance benefits -695,674,617.88 -594,219
Gross -748,617,278.09 -651,937
Reinsurers' share 52,942,660.21
57,718
Change in provision for outstanding claims -131,079,553.67 -86,187
Gross -204,284,017.41 -140,686
Reinsurers' share 73,204,463.74
54,499
5. Increase in underwriting provisions -14,800,771.10 -5,769
Mathematical reserve -13,752,246.10 -5,146
Gross -13,752,246.10 -5,146
Other underwriting provisions -1,048,525.00 -623
Gross -1,048,525.00 -623
6. Expenses for profit-unrelated premium refunds 4,636,468.00
Gross 4,636,468.00
0
7. Administrative expenses -453,115,101.10 -447,341
Acquisition expenses -454,555,171.92 -448,342
Other administrative expenses -4,528,412.24 -4,001
Reinsurance commissions and profit commissions from reinsurance cessions 5,968,483.06
5,002
8. Other underwriting expenses -3,198,143.30 -2,231
9. Change to equalisation provision -2,318,241.00 737
Underwriting result 48,124,358.39
14,047
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
201
INCOME STATEMENT FOR THE FINANCIAL YEAR FROM 1. JANUARY TO 31. DECEMBER 2022
2022
2021
in EUR
in EUR '000
Underwriting result 48,124,358.39
14,047
Non-underwriting account:
1. Income from investments and interest income 634,622,880.34
763,616
Income from participations 411,014,358.04
672,189
Income from land and buildings 13,728,857.69
12,775
Income from other investments 31,963,220.87
25,844
Income from appreciations 90,968,071.11
32,900
Income from the disposal of investments 40,304,200.90
2,926
Other investment and interest income 46,644,171.73
16,982
2. Expenses for investments and interest expenses -475,362,587.13
-363,065
Expenses for asset management -93,354,646.97
-117,911
Depreciation of investments -243,691,772.90
-110,279
Interest expenses -96,933,782.36
-88,501
Losses from the disposal of investments -20,951,096.00
-6,130
Other investment expenses -20,431,288.90
-40,244
3. Investment income transferred to the underwriting account -36,974,083.03
-8,520
4. Other non-underwriting income 13,334,041.47
11,878
5. Other non-underwriting expenses -14,302,997.91
-18,432
6. Result from ordinary activities 169,441,612.13
399,524
8. Taxes on income 42,234,598.32
46,339
8. Profit for the period 211,676,210.45
445,863
9. Transfer to reserves -19,596,309.83
-250,742
Transfer to free reserves -13,284,645.83
-250,000
Transfer to risk reserve -6,311,664.00
-742
10. Profit for the year 192,079,900.62
195,121
11. Retained profits brought forward 178,351,602.38
143,231
Net retained profits 370,431,503.00
338,352
202
Annual Financial Report 2022
NOTES TO THE FINANCIAL STATEMENTS FOR 2022
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The annual financial statements as of 31 December 2022
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 2022.
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 three to ten 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 Niederstwert-
prinzip). Bonds, other fixed-income securities and
participations
are valued using the less strict lower-of-cost-
or-market principle (gemildertes Niederstwertprinzip)
provided for in § 149(1) VAG.
Valuation using the less strict lower-of-cost-or-market
principle resulted in write-downs of EUR 36,846,000
(EUR 503,000) 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.
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.
Five forward exchange transactions in the CZK and PLN
currencies with terms limited to 05/01/2023 and
24/05/2023 respectively existed as of the 31 December
2022 balance sheet date. The transactions are being used
to hedge future dividends in foreign currency. A provision for
expected losses in the amount of EUR 1,685,000
(EUR 2,380,000) was formed for the five forward exchange
transactions whose market values were negative as of the
reporting date.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
203
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 5,367,000 (EUR 3,219,000).
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 3,360,000 (EUR 7,713,000) 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.
The indirect business includes assumed property and
casualty insurance as well as health and life insurance
business. In
indirect business
, provisions for outstanding
claims and the mathematical reserve are primarily based on
reports from assignors as of the 31 December 2022
balance sheet date. The reported amounts were increased
where this was considered necessary in light of past
experience.
The
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.
The
provisions for severance pay
, pensions, and
anniversary bonuses are based on the pension insurance
calculation principles of the Actuarial Association of Austria
(AVÖ), AVÖ 2018-P (Employees), assuming a wage growth
rate of (2.25%):
• Wage growth rate (2023): 8.5 %
• Wage growth rate (2024): 6.5 %
• Wage growth rate (2025): 3.5 %
• Wage growth rate (2026): 2.5 %
• Wage growth rate (from 2027): 2.0 % p.a.
and a discount rate of 1.14 % (0.76 %) p.a. for the
severance provision, 1.53 % (1.42 %) for the pension
provision and 1.35 % (1.02 %) 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 3,268,000 (EUR 3,223,000) in provisions have been
formed for direct pension obligations. A portion of the direct
benefits equal to EUR 255,000 (EUR 252,000) will be
administered as an occupational group insurance plan after
an insurance contract has been concluded in accordance
204
Annual Financial Report 2022
with §§ 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 2022 was EUR 2,694,000
(EUR 2,712,000).
The amount earmarked for satisfying the outsourced
severance pay obligations that was held by the outside
insurance company was EUR 1,607,000 (EUR 1,873,000).
The difference of EUR 1,087,000 (EUR 839,000) 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.
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
Bonds and other
securities of and
loans to
companies in
which an
ownership interest
is held
in EUR '000
As of 31. December 2021 21,456
134,259
4,593,705
421,500
24,216
500
Additions 7,117
26,608
822,693
95,597
0
0
Disposals 0
490
431,767
18,715
0
500
Appreciation 0
0
90,968
0
0
0
Depreciation 4,389
5,098
212,885
0
0
0
As of 31. December 2022 24,184
155,279
4,862,714
498,382
24,216
0
Intangible assets
with a value of EUR 5,702,000
(EUR 464,000) were acquired from affiliated companies
during the financial year. The value of developed and
undeveloped properties was EUR 28,090,000
(EUR 28,376,000) as of 31 December 2022.
The
carrying amount of self-used property
was
EUR 22,070,000 (EUR 22,703,000).
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
205
The investments have the following carrying amounts and fair values:
Items under § 144 Abs. 2 VAG Book Value
Fair value
Book Value
Fair value
2022
2021
2022
2021
in EUR '000
Land and buildings 155,279
649,359
134,259
606,434
thereof appraisal reports 2017 0
0
1,443
2,420
thereof appraisal reports 2018 0
0
3,020
3,080
thereof appraisal reports 2019 7,565
11,360
42,637
219,200
thereof appraisal reports 2020 36,320
94,124
31,437
94,124
thereof appraisal reports 2021 19,262
186,710
55,722
287,610
thereof appraisal reports 2022 92,132
357,165
0
0
Shares in affiliated companies 4,862,714
9,368,356
4,593,705
8,974,398
Bonds and other securities of affiliated companies and loans to affiliated companies 498,382
505,707
421,500
503,759
Participations 24,216
31,198
24,216
40,458
Bonds and other securities of and loans to companies in which an ownership
interest is held 0
0
500
525
Shares and other non-fixed-interest securities 6,521
6,784
132,419
139,328
Bonds and other fixed-interest securities 331,285
294,708
168,793
177,129
Mortgage receivables 2,018
1,724
2,100
2,238
Other loans 941
437
926
1,300
Bank balances 338,040
338,040
210,000
210,000
Deposits receivables 1,218,466
1,218,466
1,092,826
1,092,826
Total 7,437,862
12,414,780
6,781,244
11,748,394
Hidden reserves rose by EUR 9,767,000 to a total of
EUR 4,976,918,000 (EUR 4,967,151,000).
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 shares
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
shares 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. VIG
Holding holds a bond issued by the Russian Federation with
a nominal value of EUR 7 million. This bond has been
recognised at 50 % in the balance sheet.
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
.
The
other loans
not secured by insurance contracts are
loans of EUR 940,000 (EUR 926,000) to the Republic of
Austria and loans of EUR 0 (EUR 0) to other borrowers. The
other loans do not include any loans (EUR 0) with remaining
terms of up to one year.
206
Annual Financial Report 2022
The
subordinated liabilities
balance sheet item consists of the bonds listed in the table below, which were issued in the form
of securities.
Name 2022
2021
in EUR '000
RT1 Supplementary capital bond 2021 300,000
300,000
Supplementary capital bond 2013 – 2043 284,400
500,000
Supplementary capital bond 2015 – 2046 400,000
400,000
Supplementary capital bond 2017 – 2047 200,000
200,000
Supplementary capital bond 2022 - 2042 500,000
0
Total 1,684,400
1,400,000
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
2022
2021
2022
2021
in EUR '000
Mortgage receivables 2,018
2,100
0
0
Deposits receivables 1,218,466
1,092,826
0
0
Receivables from direct insurance business 6,280
25,079
0
0
Receivables from reinsurance business 33,250
31,240
0
0
Other receivables 155,205
120,148
0
8
Liabilities from direct insurance business 3,845
4,077
0
0
Liabilities from reinsurance business 4,037
9,324
0
0
Other liabilities 425,987
451,210
0
0
The change in
personnel provisions
was recognised in
personnel expenses. The interest expenses for personnel
provisions of EUR 5,339,000 (EUR 6,694,000) are reported
under investment and interest expenses.
The
other provisions
of EUR 122,848,000
(EUR 143,413,000) mainly consist of IT provisions of
EUR 52,060,000 (EUR 95,861,000), provisions for unused
vacation time of EUR 3,257,000 (EUR 3,115,000), provisions
for variable salary components of EUR 9,972,000
(EUR 9,311,000), provisions for customer support and
marketing of EUR 534,000 (EUR 467,000) and provisions for
anniversary bonuses of EUR 1,471,000 (EUR 1,263,000).
The amount shown under
other liabilities
includes
EUR 2,912,000 (EUR 101,000) in tax liabilities and
EUR 607,000 (EUR 570,000) in social security liabilities.
The purchase agreement that was concluded on 29
November 2020 for the VIG Group acquisition of the
companies of the Dutch company Aegon N.V. in Hungary,
Poland, Romania and Türkiye has been partially closed. The
VIG Group finalised the acquisition of the Hungarian Aegon
companies in March 2022. Consequently, the Hungarian
state holding Corvinus holds a 45 % stake in Aegon Hungary.
In April 2022, the acquisition of the Turkish Aegon insurance
company was successfully completed. The acquisitions of
the Aegon companies in Poland and Romania are
provisionally expected to be completed in 2023, once the
outstanding approvals have been granted by the authorities.
The following disclosures are provided for
off-balance sheet
contingent liabilities
:
A letter of comfort totalling
EUR 75,000,000 (EUR 75,000,000) has been issued for
affiliated companies in connection with borrowing. VIG
Holding assumed guarantees totalling EUR 395,419,000
(EUR 350,000,000), of which one totalling
EUR 350,000,000 was assumed in December 2019 vis-à-
vis its subsidiary Wiener Städtische Versicherung AG
Vienna Insurance Group and one totalling EUR 22,000,000
was assumed in December 2022 vis-à-vis its subsidiary VIG
RE zajist'ovna, a.s.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
207
Liabilities arising from the use of off-balance sheet tangible
assets
were EUR 2,166,000 (EUR 2,073,000) for the
following financial year and EUR 11,163,000
(EUR 11,007,000) for the following five years.
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 2022:
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 213,715
204,019
203,509
13,939
7,528
Liability insurance 4,871
4,371
842
673
-1,676
Marine, aviation and transport insurance 5,455
5,080
1,416
1,248
-1,382
Other non-life insurance 26,693
25,094
9,688
2,612
-6,151
Total direct business 250,734
238,564
215,455
18,472
-1,681
(Previous year values) 186,149
176,543
171,709
14,635
15,797
Indirect business
Marine, aviation and transport insurance 0
0
16
0
16
Other insurance 1,210,926
1,171,399
717,295
436,289
-6,007
Total indirect business 1,210,926
1,171,399
717,311
436,289
-5,991
(Previous year values) 1,077,969
1,047,614
608,106
434,992
-3,836
Total direct and indirect business 1,461,660
1,409,963
932,766
454,761
-7,672
(Previous year values) 1,264,118
1,224,157
779,815
449,627
11,961
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 3,574,000 (EUR 37,649,000) for financial year 2022.
In
indirect business
, EUR 21,484,000 (EUR 15,639,000) in
premiums written in the health insurance line of business
and EUR 16,174,000 (EUR 5,133,000) in the life insurance
line of business were assumed. The reinsurance balance
from assumed health and life insurance business was
EUR 0 (EUR 0).
The result from
indirect business
was EUR 51,883,000
(EUR 13,139,000). The net earned premiums of
EUR 1,206,720,000 (EUR 1,068,386,000) from indirect
business were included immediately in the income statement.
Of the income from participations, land and buildings and other investments shown in the income statement, affiliated companies
accounted for the following amounts:
2022
2021
in EUR '000
Income from participations 408,214
669,205
Income from other investments 25,500
21,982
Income from land and buildings 636
873
208
Annual Financial Report 2022
The funds in the portfolio distributed EUR 21,000 (E
UR 1,654,000) during the financial year.
The deposit interest income for indirect business was transferred to the underwriting account.
Losses from disposals of investments
were EUR 20,951,000 (EUR 6,131,000) in financial year 2022.
The expenses for insurance claims and benefits, administrative expenses, other underwriting expenses and investment expenses
include:
2022
2021
in EUR '000
Wages and salaries 34,465
32,741
Expenses for severance benefits and payments to company pension plans 1,103
701
Expenses for retirement provisions 1,249
898
Expenses for statutory social contributions and income-related contribution and mandatory contributions 6,778
6,460
Other social security expenses 196
166
Commissions
of EUR 12,415,000 (EUR 9,502,000) were
incurred for direct business in financial year 2022.
A summary of
auditing fees
is provided in the notes to the
consolidated financial statements of VIENNA INSURANCE
GROUP AG Wiener Versicherung Gruppe,Vienna.
Deferred profit taxes of EUR 0 (EUR 0) were recognised due to
temporary differences between earnings under commercial
law and taxable earnings. A tax rate of 20.7 % (22.5 %) was
chosen for deferred taxes based on the provisions of the tax
allocation agreement with the parent company. The decrease
in the tax rate is due to the 2022 eco-social tax reform and the
associated gradual reduction of the corporate income tax rate.
Deferred taxes
31.12.2022
31.12.2021
in EUR
'000
Shares in affiliated companies 26,850
22,153
investments -11,608 2,394
Tangible assets (not incl. land and buildings) and inventories 109
85
Valuation reserve -19,436 -19,983
subordinated liabilities 8,253
6,357
Underwriting provision – retention 92,339
83,497
Long-term personnel provisions 46,096
41,132
other provisions 13,687
56,039
Temporary differences 156,290
191,674
Not subject to tax -156,290 -191,674
Total differences 0
0
Resulting deferred taxes as at 31.12. 20.7% (22.5%) 0
0
Deferred taxes changed as follows:
As of 1 January 0
0
Changes recognised in the income statement 0
0
As of 31 December 0
0
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
209
IV. SIGNIFICANT PARTICIPATIONS
Company
Direct interest
in capital (%)
Equity capital
(EUR '000)
Share of capital
(EUR '000)
Result of the
year
(EUR '000)
Share of profit
for the year
(EUR '000)
Last annual
financial
statements
Affiliated companies
Akcionarsko drustvo za zivotno osiguranje Wiener
Städtische Podgorica, Vienna Insurance Group,
Podgorica 100,00
3.874
3.874
241
241
2021
ASIGURAREA ROMANEASCA - ASIROM VIENNA
INSURANCE GROUP S.A., Bucharest
88,77
79.442
70.521
-512
-455
2022
ATBIH GmbH, Vienna 68,97
158.521
109.332
-4.988
-3.440
2022
BCR Asigurari de Viata Vienna Insurance Group S.A.,
Bucharest 93,98
51.794
48.676
8.767
8.239
2022
Beesafe Spolka z Ogranziczona Odpowiedzialnoscia,
Warsaw
77,27
9.111
7.040
-7.141
-5.518
2021
BTA Baltic Insurance Company AAS, Riga 100,00
53.934
53.934
9.303
9.303
2022
Ceská podnikatelská pojist'ovna, a.s., Vienna
Insurance Group, Prague 100,00
108.073
108.073
33.464
33.464
2022
Compania de Asigurari "DONARIS VIENNA
INSURANCE GROUP" Societate pe Actiuni, Chisinau 99,99
6.251
6.250
708
708
2022
Compensa Life Vienna Insurance Group SE, Tallinn 100,00
17.151
17.151
7.202
7.202
2022
Compensa Towarzystwo Ubezpieczen Na Zycie
Spolka Akcyjna Vienna Insurance Group, Warsaw 84,14
58.860
49.525
6.166
5.188
2022
Compensa Towarzystwo Ubezpieczen Spolka Akcyjna
Vienna Insurance Group, Warsaw 76,01
82.233
62.505
12.193
9.268
2022
Compensa Vienna Insurance Group, akcine draudimo
bendrove, Vilnius 100,00
53.895
53.895
3.671
3.671
2022
DONAU Versicherung AG Vienna Insurance Group,
Vienna
74,24
111.462
82.749
10.138
7.526
2022
ELVP Beteiligungen GmbH, Vienna 100,00
23.276
23.276
11.066
11.066
2022
Foreign limited liability company
"InterInvestUchastie", Minsk 99,95
239
239
3
3
2021
GLOBAL ASSISTANCE D.O.O. BEOGRAD, Belgrade 50,00
founded 2022
n.a.
Global Assistance Polska Spolka z ograniczona
odpowiedzialnoscia, Warsaw 30,77
243
75
135
41
2021
GLOBAL ASSISTANCE SERVICES s.r.o., Prague 100,00
384
384
52
52
2021
GLOBAL ASSISTANCE SERVICES SRL, Bucharest 40,00
271
109
46
18
2021
GLOBAL ASSISTANCE SLOVAKIA s.r.o., Bratislava 40,00
61
25
8
3
2021
GLOBAL ASSISTANCE, a.s., Prague 60,00
6.754
4.052
2.567
1.540
2022
Global Services Bulgaria JSC, Sofia 50,00
434
217
82
41
2021
Insurance Company Vienna osiguranje d.d., Vienna
Insurance Group, Sarajevo 100,00
9.735
9.735
349
349
2022
INSURANCE ONE-SHAREHOLDER JOINT-STOCK
COMPANY BULSTRAD VIENNA INSURANCE GROUP
EAD, Sofia 100,00
70.096
70.096
23.349
23.349
2022
InterRisk Towarzystwo Ubezpieczen Spolka Akcyjna
Vienna Insurance Group, Warsaw 100,00
43.675
43.675
12.579
12.579
2022
InterRisk Versicherungs-AG Vienna Insurance Group,
Wiesbaden
100,00
53.670
53.670
15.050
15.050
2022
INTERSIG VIENNA INSURANCE GROUP Sh.A., Tirana 89,98
7.295
6.564
928
835
2022
Joint Stock Insurance Company WINNER LIFE -
Vienna Insurance Group Skopje, Skopje 100,00
4.208
4.208
185
185
2021
Joint Stock Insurance Company WINNER-Vienna
Insurance Group, Skopje
100,00
7.097
7.097
388
388
2022
KOMUNALNA poistovna, a.s. Vienna Insurance Group,
Bratislava 100,00
52.644
52.644
2.761
2.761
2022
KOOPERATIVA poist'ovna, a.s. Vienna Insurance
Group, Bratislava
94,37
231.548
218.512
39.530
37.304
2022
210
Annual Financial Report 2022
Company
Direct interest
in capital (%)
Equity capital
(EUR '000)
Share of capital
(EUR '000)
Result of the
year
(EUR '000)
Share of profit
for the year
(EUR '000)
Last annual
financial
statements
Affiliated companies
Kooperativa, pojist'ovna, a.s. Vienna Insurance
Group, Prague 95,84
596.911
572.080
138.964
133.183
2022
KUPALA Belarusian-Austrian Closed Joint Stock
Insurance Company, Minsk 52,34
15.258
7.986
3.468
1.815
2021
LVP Holding GmbH, Vienna 100,00
626.967
626.967
4.433
4.433
2022
OMNIASIG VIENNA INSURANCE GROUP S.A., Bucharest 99,54
149.548
148.860
5.671
5.645
2022
Private Joint Stock Company "Insurance Company
"USG", Kiew 6,90
16.528
1.140
2.501
173
2022
Private Joint-Stock Company "INSURANCE COMPANY
"KNIAZHA LIFE VIENNA INSURANCE GROUP", Kiew
97,94
2.922
2.862
368
360
2022
PRIVATE JOINT-STOCK COMPANY "UKRAINIAN
INSURANCE COMPANY "KNIAZHA VIENNA
INSURANCE GROUP", Kiew 90,56
10.219
9.254
1.148
1.040
2022
Ray Sigorta Anonim Sirketi, Istanbul 12,67
44.622
5.654
10.323
1.308
2022
RISK CONSULT Sicherheits- und Risiko-
Managementberatung Gesellschaft m.b.H., Vienna 41,00
988
405
271
111
2021
SIA "Global Assistance Baltic", Riga 33,33
287
96
-13 -4 2022
SIGMA INTERALBANIAN VIENNA INSURANCE GROUP
Sh.A., Tirana
89,05
17.077
15.207
2.809
2.501
2022
Stock Company for Insurance and Reinsurance
MAKEDONIJA Skopje - Vienna Insurance Group,
Skopje 94,36
25.898
24.437
650
613
2022
twinformatics GmbH, Vienna 20,00
3.403
681
516
103
2022
Vienna Insurance Group Polska Spolka z ograniczona
odpowiedzialnoscia, Warsaw 51,43
18.256
9.389
18
9
2022
Vienna International Underwriters GmbH, Vienna 100,00
479
479
69
69
2021
Vienna Life Towarzystwo Ubezpieczen na Zycie S.A.
Vienna Insurance Group, Warsaw
100,00
5.971
5.971
1.887
1.887
2022
Vienna-Life Lebensversicherung AG Vienna Insurance
Group, Bendern 100,00
9.313
9.313
-689 -689 2022
VIG AM Real Estate, a.s., Prague 100,00
832
832
12
12
2021
VIG Hungary Holding B.V., Amsterdam 55,00
70.648
38.856
0
0
2022
VIG Hungary Holding B.V. II, Amsterdam 55,00
70.648
38.856
0
0
2022
VIG IT - Digital Solutions GmbH, Vienna 100,00
founded 2022
VIG Magyarország Befektetesi Zartköröen Müködö
Reszvenytarsasag, Budapest 55,00
197.606
108.683
5.170
2.844
2022
VIG Management Service SRL, Bucharest 52,08
271
141
46
24
2021
VIG Properties Bulgaria AD, Sofia 99,97
1.084
1.084
-2.611 -2.610 2022
VIG RE zajist'ovna, a.s., Prague 55,00
140.255
77.140
25.573
14.065
2022
VIG Services Ukraine, LLC, Kiew 6,98
1.239
86
111
8
2022
VIG Türkiye Holding B.V., Amsterdam 100,00
32.288
32.288
0
0
2022
VIG-CZ Real Estate GmbH, Vienna 90,00
147.548
132.793
10
9
2022
Wiener Osiguranje Vienna Insurance Group a.d.,
Banja Luka 100,00
8.898
8.898
108
108
2022
Wiener osiguranje Vienna Insurance Group dionicko
drustvo za osiguranje, Zagreb
97,82
39.009
38.159
207
202
2022
WIENER STÄDTISCHE OSIGURANJE akcionarsko
drustvo za osiguranje Beograd, Belgrade 100,00
39.289
39.289
10.200
10.200
2022
WIENER STÄDTISCHE VERSICHERUNG AG Vienna
Insurance Group, Vienna
90,82
633.264
575.130
147.956
134.374
2022
Wiener Towarzystwo Ubezpiezen Spolka Akcyjna
Vienna Insurance Group, Warsaw 100,00
43.631
43.631
9.331
9.331
2022
Participations
Erste Asset Management GmbH, Vienna 0,76
136.660
1.039
73.119
556
2021
Wiener Börse AG, Vienna 8,50
170.454
14.489
35.226
2.994
2021
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
211
V. OTHER DISCLOSURES
The Company has share capital of 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). Wiener Städtische Versicherungsverein,
which directly and indirectly holds around 72.47 %
(72,47 %) of the share capital, has the right to appoint up
to one third of the members of the Supervisory Board if, and
so 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.
Existing agreements that would come into effect if control
of the Company were to change due to a takeover bid relate
to participations held in other (non-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.
The Managing Board is authorised under § 169 Austrian
Stock Corporation Act (AktG) to increase the share capital
of the Company by a nominal amount of up to EUR
66,443,734.10 by issuing 64,000,000 no-par value bearer
or registered shares or a combination of the two in one or
more tranches on or before 20 May 2026 against cash or
in-kind contributions. 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 General Meeting of 21 May 2021 authorised the
Managing Board to issue, subject to Supervisory Board
approval, one or more tranches of convertible bonds in
accordance with § 174 AktG with a total nominal value of
up to EUR 2,000,000,000.00 on or before 20 May 2026,
with conversion or subscription rights for up to 30,000,000
bearer ordinary shares of the Company representing a
share of up to EUR 31,145,500.36 of the share capital,
including authorisation to exclude shareholder pre-emption
rights.
The share capital has consequently been raised in
accordance with § 159 (2) no. 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.
The General Meeting of 21 May 2021 further authorised the
Managing Board to issue, subject to Supervisory Board
approval in accordance with § 174 (2) AktG, income bonds
with a total nominal value of up to EUR 2,000,000,000.00
in one or more tranches on or before 20 May 2026,
including authorisation to exclude shareholder pre-emption
rights. The Managing Board has not adopted any
resolutions to date regarding the issuance of income bonds
based on this authorisation.
The General Meeting of 21 May 2021 authorised the
Managing Board 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 General Meeting resolution
was adopted. The amount paid upon repurchase of the
212
Annual Financial Report 2022
Company’s own shares may not be more than a maximum
of 50 % below, or 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
choose to make the purchase on 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)).
The General Meeting of 21 May 2021 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 9 October 2013 the Company issued a subordinated
bond with a nominal value of EUR 500,000,000.00 and a
maturity of 30 years. The Company can call the bond in full
for the first time on 9 October 2023 and on each following
coupon date. The subordinated bond bears interest at a
fixed rate of 5.5 % p.a. during the first ten years of its term
and variable interest after that. The subordinate bond
satisfies the tier 2 requirements of Solvency II. The bonds
are traded on the Vienna Stock Exchange. On 15 June
2022, an early partial redemption of the subordinated
bonds took place. Approximately 43 % (EUR 215.6 million)
was bought back. The remaining outstanding volume of the
bonds (EUR 284.4 million) continues to be recognised
under the subordinated liabilities item.
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.
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. The interest rate is 3.75% p.a.
until 13 April 2027, after which the bond pays variable
interest.
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
10 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 bonds initially
have an annual interest rate of 4.875 % and will pay variable
interest from 15 June 2032 (inclusive), unless terminated or
bought back before this date. The bonds are traded on the
Vienna Stock Exchange.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
213
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 (80 %) and social
(20 %) projects within the first year following issuance.
THE SUPERVISORY BOARD HAD THE FOLLOWING MEMBERS
IN FINANCIAL YEAR 2022:
Chairman:
Günter Geyer
1. Deputy Chairman:
Rudolf Ertl
2. Deputy Chairman:
Robert Lasshofer
Members:
Martina Dobringer
Zsuzsanna Eifert
Gerhard Fabisch
András Kozma (since 20 May 2022)
Peter Mihók
Heinz Öhler
Georg Riedl (to 20 May 2022)
Gabriele Semmelrock-Werzer
Katarína Slezáková
Gertrude Tumpel-Gugerell
THE MANAGING BOARD HAS THE FOLLOWING MEMBERS:
Chairwoman:
Elisabeth Stadler
Deputy Chairman of the Managing Board:
Hartwig Löger
Members:
Liane Hirner
Peter Höfinger
Gerhard Lahner
Gábor Lehel
Harald Riener
Peter Thirring
Changes during and after the end of the financial year:
The VIG Holding Managing Board will have the following members from 1 July 2023: Mr Löger, Chairman of the Managing
Board (General Manager), Mr Höfinger, Deputy Chairman of the Managing Board (Deputy General Manager), Ms Hirner,
Mr Lahner, Mr Lehel and Mr Riener. All Managing Board terms will expire on 30 June 2027. Ms Stadler and Mr Thirring will,
at their own request, not extend their terms on the Managing Board upon their expiry on 30 June 2023.
There were
an average of 317
(311)
employees, including Managing Board members
. These employees were employed in
the insurance business and resulted in personnel expenses of EUR 43,792,000 (EUR 40,967,000).
There were no loans outstanding to
members of the Managing Board
or members of the Supervisory Board as of 31
December 2022 (EUR 0).
214
Annual Financial Report 2022
No
guarantees were outstanding for members of the Managing Board
or Supervisory Board as of 31 December 2022.
In 2022, the
total expenses
for severance pay and pensions of EUR 2,352,000 (EUR 1,599,000) included severance pay
and pension expenses of EUR 2,183,000 (EUR 1,626,000) for Managing Board members and senior management in
accordance with § 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 or related companies.
The members of the Managing Board received EUR 7,948,000 (EUR 7,243,000) 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 17,000 (EUR 0) in the reporting year for their services as a manager or
employee of affiliated companies.
The ratio of the fixed and variable income of all VIG Holding
employees
versus the Managing Board as a whole was 1:11.0
(1:11.2) in 2022.
Former
members of the Managing Board
received EUR 1,075,000 (EUR 1,330,000).
The
members of the Supervisory Board
received EUR 758,000 (EUR 695,000) in compensation for their services to the
Company in 2022.
The Company is a group member within the meaning of § 9 of the Austrian Corporate Income Tax Act (KStG) of the Wiener
Städtische Versicherungsverein, Vienna group of companies.
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 25 % of the positive income. If negative income is attributed to
the parent company, the negative tax allocation equals 22.5 % of the current tax loss.
A receivable of EUR 126,376,000 (EUR 97,576,000) 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. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE
No events of special significance that would have changed the presentation of the net assets, financial position and results
of operations occurred after the balance sheet date.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
215
PROPOSED APPROPRIATION OF PROFITS
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe (VIG Holding) ended financial year 2022 with net retained
profits of EUR 370,431,503.00. The following appropriation of profits will be proposed in the Annual General Meeting:
The 128 million shares shall receive a dividend of EUR 1.30 per share. The payment date for this dividend will be 1 June
2023, the record date 31 May 2023, and the ex-dividend date 30 May 2023.
A total of EUR 166,400,000.00 will therefore be distributed. The net retained profits of EUR 204,031,503.00 remaining for
financial year 2022 after distribution of the dividend is to be carried forward.
Vienna, 20 March 2023
The Managing Board:
Elisabeth Stadler
General Manager (CEO),
Chairwoman of the Managing
Board
Hartwig Löger
Deputy General Manager, Deputy
Chairman of the Managing Board
WP/StB Mag. Liane Hirner
CFRO, Member of the Managing
Board
Mag. Peter Höfinger
Member of the Managing Board
Mag. Gerhard Lahner
COO, Member of the Managing
Board
Gábor Lehel
CIO, Member of the Managing
Board
Mag. Harald Riener
Member of the Managing Board
Peter Thirring
CTO, Member of the Managing
Board
216
Annual Financial Report 2022
REPORT ON THE FINANCIAL STATEMENTS
Audit Opinion
W
e have audited the financial statements of
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe,
Vienna, Austria,
which comprise the Balance Sheet as of 31 December
2022, 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 2022 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 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.
A
uditor’s
R
eport
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
217
Our Response
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 equity 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 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 analyzed the consistency of planning data
using information from prior periods.
– G
iven 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 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.
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 AP Regulation and Austrian Standards on
218
Annual Financial Report 2022
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 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
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, misrepresen-
tations 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.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
219
– 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.
REPORT ON OTHER LEGAL REQUIREMENTS
Management Report
I
n 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 21 Mai 2021 and were appointed by the supervisory
board on 2 June 2021 to audit the financial statements of
the company for the financial year ending on 31 December
2022.
On 20 May 2022 we were elected as auditors for the
financial year ending on 31 December 2023 and were
appointed by the supervisory board on 13 June 2022 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
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.
220
Annual Financial Report 2022
Engagement Partner
T
he engagement partner is Mr Thomas Smrekar.
Vienna, 20 March 2023
KPMG Austria GmbH
Wirtschaftsprüfungs- und Steuerberatungsgesellschaft
signed by:
Thomas Smrekar
W
irtschaftsprüfer
(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. Section 281 Paragraph 2 UGB (Austrian Commercial Code) applies.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
221
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, 20 March 2023
The Managing Board:
Elisabeth Stadler
General Manager (CEO),
Chairwoman of the Managing
Board
Hartwig Löger
Deputy General Manager, Deputy
Chairman of the Managing Board
WP/StB Mag. Liane Hirner
CFRO, Member of the Managing
Board
Mag. Peter Höfinger
Member of the Managing Board
Mag. Gerhard Lahner
COO, Member of the Managing
Board
Gábor Lehel
CIO, Member of the Managing
Board
Mag. Harald Riener
Member of the Managing Board
Peter Thirring
CTO, Member of the Managing
Board
Declaration by the Managing Board
222
Annual Financial Report 2022
The Supervisory Board and its committees, Chair and
D
eputy 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 regions), 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 the 2022 reporting year.
Detailed information on the principles underlying the
remuneration system is available in the remuneration policy
and 2022 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 2022 consolidated corporate
governance report.
One Annual General Meeting and four Supervisory Board
meetings distributed across the financial year were held in
2022. Four meetings of the Audit Committee (Accounts
Committee) were also held. The Annual General Meeting
was held as a virtual Annual General Meeting on the basis
of § 1 (2) COVID-19-GesG and the COVID-19-GesV. The
financial statement and consolidated financial statement
auditor, KPMG Austria GmbH Wirtschaftsprüfungs- und
Steuerberatungsgesellschaft, FN 269873y (KPMG),
attended three Audit Committee meetings and three
Supervisory Board meetings in 2022, including the
Supervisory Board meeting that addressed the audit of the
2021 annual financial statements and the 2021
consolidated financial statements as well as formal approval
of the 2021 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. Two meetings of the Committee for Managing
Board Matters (Human Resources Committee) were held in
2022. The Committee for Urgent Matters (Working
Committee) met twice and passed one resolution by
circulation. The Nomination Committee met twice. The
Strategy Committee did not meet in 2022. Strategic matters
were handled by the Supervisory Board as a whole.
No agenda items were discussed in Supervisory Board
meetings in 2022 without the participation of members of
the Managing Board.
No Member of the Supervisory Board attended fewer than
half of the Supervisory Board meetings. Detailed
information on meeting attendance by Supervisory Board
members in financial year 2022 is available in the 2022
Corporate Governance Report.
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.
Acting upon the proposal and motion of the Supervisory
Board, the general meeting of 21 May 2021 selected KPMG
to be the financial statements auditor and consolidated
financial statements auditor for the financial year 2022, and
KPMG consequently performed these duties in the financial
year 2022.
The Audit Committee mainly dealt with the following topics
in 2022:
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.
Supervisory Board report
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
223
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 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 also dealt with
permitted non-audit services. While reviewing and
monitoring the independence of the financial statements
auditor and consolidated financial statements auditor, the
Audit Committee did not find any circumstances that would
raise doubts about its independence and impartiality.
The Audit Committee also dealt with the VIG Holding and
VIG Group ORSA reports and the IT security report in 2022
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, including the IT security measures, to be effective.
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 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.
In accordance with the Audit Regulation (Regulation (EU) No
537/2014), the Audit Committee conducted a selection
procedure to appoint the auditor of the (consolidated)
financial statements for the financial year 2023. This
resulted in a justified recommendation with a preference for
KPMG being submitted to the Supervisory Board. 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 Supervisory Board followed the recommendation
of the Audit Committee. The General Meeting selected
KPMG as auditor of the financial statements and
consolidated financial statements for 2023.
The Audit Committee also received the 2022 annual
financial statements, management report, 2022
consolidated corporate governance report and 2022
sustainability report (consolidated non-financial 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 2022 consolidated financial
statements and Group management report. In addition, the
auditor’s reports prepared by (consolidated) financial
statements auditor KPMG for the 2022 annual financial
statements and management report and the 2022
consolidated financial statements and Group management
report were reviewed by the Audit Committee and
examined. 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 Art. 11 of the Audit Regulation (EU) that explained the
224
Annual Financial Report 2022
results of the financial statements audit and consol
idated
financial statements audit. This additional report prepared
by the financial statements auditor was also provided to the
Supervisory Board.
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 Supervisory Board also dealt with IT security issues in
financial year 2022.
The Managing Board and Supervisory Board prepared a
remuneration report for financial year 2022.
In its meeting on 13 September 2022, the Supervisory
Board reappointed Ms Hirner to the Managing Board. At its
meeting on 29 November 2022, the Supervisory Board, on
the recommendation of the Nomination Committee,
appointed Mr Löger to the position of Chairman of the
Managing Board (General Manager) and Mr Höfinger to the
position of Deputy Chairman of the Managing Board
(Deputy General Manager) with effect from 1 July 2023.
Furthermore, in its meeting on 29 November 2022, the
Supervisory Board reappointed Mr Lahner, Mr Lehel and
Mr Riener to the Managing Board with effect from 1 July
2023. All Managing Board terms will expire on 30 June
2027. Ms Stadler and Mr Thirring will, at their own request,
not extend their terms on the Managing Board upon their
expiry on 30 June 2023.
The 2022 annual financial statements together with the
management report and 2022 consolidated corporate
governance report, the 2022 consolidated financial
statements together with the Group management report,
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 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.
In 2022, the Managing Board of VIG Holding informed the
members of the Supervisory Board of material sustainability
and IT security matters. During the reporting period, for
example, sustainability was dealt with as an important
element of the VIG 25 corporate strategy and the expansion
of environmentally friendly investments.
The Supervisory Board also received the 2022 sustainability
report (consolidated non-financial report) examined by
KPMG from the Managing Board, and reviewed and
carefully examined it. As a result of this examination, it found
that the 2022 sustainability report (consolidated non-
financial report) had been prepared properly and was
appropriate. The Supervisory Board found no grounds for
objection.
In addition, the auditor’s reports prepared by (consolidated)
financial statements auditor KPMG for the 2022 annual
financial statements and management report and the 2022
consolidated financial statements and Group management
report were reviewed by the Supervisory Board and
examined. KPMG’s audit of the 2022 annual financial
statements and management report and the 2022
consolidated financial statements and Group management
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
2022, and of the results of operations of the Company for
the financial year 2022 in accordance with Austrian
generally accepted accounting principles. The
management report is consistent with the annual financial
statements. The disclosures pursuant to § 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 2022, and of the results of operations and
cash flows of the Group for the financial year 2022 in
accordance with IFRS as adopted by the EU and § 138 of
the Austrian Insurance Supervision Act (VAG) in
combination with § 245a of the Austrian Commercial Code
(UGB). The Group management report is consistent with
the consolidated financial statements. KPMG also reviewed
the 2022 sustainability report (consolidated non-financial
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
225
report) and determined in accordance with § 269 (3) UGB
that the 2022 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
2022 annual financial statements prepared by the
Managing Board, not to raise any objections to the
management report, the 2022 consolidated financial
statements and Group management report, the 2022
consolidated corporate governance report and the 2022
sustainability report (consolidated non-financial report) and
to agree with the Managing Board-proposed appropriation
of profits.
The 2022 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 2023
The Supervisory Board:
Komm.-Rat. Günter Geyer (Chairman)
226
Annual Financial Report 2022
Gro
up management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
227
Service
information
228
Annual Financial Report 2022
LIST OF ABBREVIATIONS
Abbreviation Full company name
365.life
365.life, d. s. s., a. s., Bratislava
Aegon Hungary
AEGON Magyarország Általános Biztosító Zártkörűen Működő Részvénytársaság,
Budapest
APEIRON
APEIRON Biologics AG
Asirom Asigurarea Românească - ASIROM Vienna Insurance Group S.A., Bucharest
BCR Life
BCR Asigurări de Viaţă Vienna Insurance Group S.A., Bucharest
Beteiligungs- und Wohnungsanlagen GmbH Beteiligungs- und Wohnungsanlagen GmbH, Linz
BTA Baltic
BTA Baltic Insurance Company AAS, Riga
Bulstrad Life "BULSTRAD LIFE VIENNA INSURANCE GROUP" JOINT STOCK COMPANY, Sofia
Bulstrad Non-Life
INSURANCE ONE-SHAREHOLDER JOINT-STOCK COMPANY BULSTRAD VIENNA
INSURANCE GROUP EAD, Sofia
Compensa Life (Poland)
1)
Compensa Towarzystwo Ubezpieczeń Na Życie S.A. Vienna Insurance Group,
Warsaw
Compensa Life (Estonia)
1
Compensa Life Vienna Insurance Group SE, Tallinn
Compensa Non-Life (Lithuania)
1
"Compensa Vienna Insurance Group", ADB, Vilnius
Compensa Non-Life (Poland)
1
Compensa Towarzystwo Ubezpieczeń S.A. Vienna Insurance Group, Warsaw
Corvinus Corvinus Nemzetközi Befektetési Zrt.
ČPP
Česká podnikatelská pojišťovna, a.s., Vienna Insurance Group, Prague
Digital Impact Labs Leipzig Digital Impact Labs Leipzig GmbH
Donaris
Compania de Asigurări "DONARIS VIENNA INSURANCE GROUP" Societate pe
Actiuni, Chișinău
Donau Versicherung DONAU Versicherung AG Vienna Insurance Group, Vienna
Erste Group Erste Group Bank AG, Vienna
Erste Heimstätte GmbH
EGW Erste gemeinnützige Wohnungsgesellschaft mbH, Vienna
GPIH Joint Stock Company Insurance Company GPI Holding, Tbilisi
InterRisk
InterRisk Towarzystwo Ubezpieczeń S.A. Vienna Insurance Group, Warsaw
InterRisk Life InterRisk Lebensversicherungs-AG Vienna Insurance Group, Wiesbaden
InterRisk Non-Life
InterRisk Versicherungs-AG Vienna Insurance Group, Wiesbaden
Intersig INTERSIG VIENNA INSURANCE GROUP Sh.A., Tirana
IRAO
Joint Stock Company International Insurance Company IRAO, Tbilisi
ISTCube IST cube (EuVECA) GmbH & Co KG
Kniazha
PRIVATE JOINT-STOCK COMPANY "UKRAINIAN INSURANCE COMPANY "KNIAZHA
VIENNA INSURANCE GROUP", Kyiv
Kniazha Life
PRIVATE JOINT-STOCK COMPANY "INSURANCE COMPANY "KNIAZHA LIFE VIENNA
INSURANCE GROUP", Kyiv
Komunálna
KOMUNÁLNA poisťovňa, a.s. Vienna Insurance Group, Bratislava
Kooperativa (Slovakia)
1
KOOPERATIVA poisťovňa, a.s. Vienna Insurance Group, Bratislava
Kooperativa (Czech Republic)
1
Kooperativa pojišťovna, a.s., Vienna Insurance Group, Prague
KPMG KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, Wien
Health Health insurance
Life Life insurance
Makedonija Osiguruvanje
Stock Company for Insurance and Reinsurance MAKEDONIJA Skopje - Vienna
Insurance Group, Skopje
Merlot Sp.z.o.o. MERLOT INVESTMENT SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOŚCIĄ, Warsaw
n/a not applicable
Omniasig
OMNIASIG VIENNA INSURANCE GROUP S.A., Bucharest
Österreichisches Verkehrsbüro AG
Österreichisches Verkehrsbüro Aktiengesellschaft, Vienna
(Consolidated Financial Statements)
PAC Doverie
Pension Assurance Company Doverie AD, Sofia
Plug and Play Plug and Play Austria GmbH
Ray Sigorta
Ray Sigorta A.Ş., Istanbul
Property/Casualty Property and casualty insurance
Seesam
Seesam Insurance AS, Tallinn
Service information
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
229
Abbreviation Full company name
Sigma Interalbanian Sigma Interalbanian Vienna Insurance Group Sh.a, Tirana
Standard & Poor’s (S&P) Standard & Poor’s Financial Services LLC, New York City
TUW "TUW"
Towarzystwo Ubezpieczeń Wzajemnych „TUW", Warsaw
Union Biztosító UNION Vienna Insurance Group Biztosító Zrt., Budapest
USG
Private Joint-Stock Company " Insurance Company "USG ", Kyiv
VBV - Betriebliche Altersvorsorge AG
VBV - Betriebliche Altersvorsorge AG, Vienna
(Consolidated Financial Statements)
VENPACE
INSHIFT GmbH & Co. KG
Vienna Life (Poland)
1
Vienna Life Towarzystwo Ubezpieczeń na Życie S.A. Vienna Insurance Group,
Warsaw
Vienna osiguranje (Bosnia and Herzegovina)
1
Insurance Company Vienna osiguranje d.d., Vienna Insurance Group, Sarajevo
Vienna-Life (Liechtenstein)
1
Vienna-Life Lebensversicherung AG Vienna Insurance Group, Bendern
Viennalife (Türkiye)
VİENNALİFE EMEKLİLİK VE HAYAT ANONİM ŞİRKETİ, Istanbul
viesure viesure innovation center GmbH, Vienna
VIG Fund
VIG FUND, a.s., Prague
VIG Holding
2
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe, Vienna
VIG Re
VIG RE zajišťovna, a.s., Prague
VIG/C-QUADRAT
VIG/C-QUADRAT TOWARZYSTWO FUNDUSZY INVESTYCYJNYCH SPÓŁKA
AKCYJNA, Warsaw
VIG, VIG-Group, VIG-insurance group
All consolidated group companies.
Wiener Osiguranje (Bosnia and Herzegovina)
1
Wiener Osiguranje Vienna Insurance Group ad, Banja Luka
Wiener Osiguranje (Croatia)
1
Wiener osiguranje Vienna Insurance Group dioničko društvo za osiguranje, Zagreb
Wiener Re "WIENER RE" akcionarsko društvo za reosiguranje, Belgrade
Wiener Städtische WIENER STÄDTISCHE VERSICHERUNG AG Vienna Insurance Group, Vienna
Wiener Städtische Osiguranje (Serbia)
1
WIENER STÄDTISCHE OSIGURANJE akcionarsko drustvo za osiguranje, Belgrade
Wiener Städtische Versicherungsverein
Wiener Städtische Wechselseitiger Versicherungsverein - Vermögensverwaltung -
Vienna Insurance Group, Vienna
Wiener TU
WIENER TOWARZYSTWO UBEZPIECZEŃ SPÓŁKA AKCYJNA VIENNA INSURANCE
GROUP, Warsaw
Winner Life Joint Stock Insurance Company WINNER LIFE - Vienna Insurance Group, Skopje
Winner Non-Life
Joint Stock Insurance Company WINNER-Vienna Insurance Group, Skopje
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 compan
y.
230
Annual Financial Report 2022
NOTICE
This annual report includes forward-looking statement
s
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 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.
Calculation differences may arise when rounded amounts
and percentages are summed automatically.
The annual report was prepared with great care to ensure
that all information is complete and accurate. The possibility
of rounding, typesetting or printing errors, however, cannot
be ruled out completely.
ADDRESS
VIENNA INSURANCE GROUP AG
W
iener Versicherung Gruppe
Schottenring 30
1010 Vienna
Phone: +43 (0) 50 390 22000
WEBSITE – ONLINE REPORT
The annual report is available in German and English
on our
Internet website (www.vig.com) under Investor Relations
and can also be downloaded in both languages as a PDF
file.
Service tip Online annual report
The VIG Insurance Group website provides an online
version of the annual report that is optimised for both the
Internet and mobile devices. All sections may be
downloaded in PDF form. You can also download the most
important tables as Excel files. Other fe
atures such as links
within the report and a comparison with the previous year
create transparency and take you directly to the information
being sought. The online version of the report also allows
you to perform a full-text search quickly and easily. The
search results are presented on an overview page, sorted
by relevance. The term being searched for is highlighted in
colour on this page and on the page in the report.
In case of doubt, the German version is authoritative
Editorial deadline: 14 March 2023
Group Annual Report 2020 VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
Annual Financial Report 2022