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THROUGH
DIVERSITY
Annual Financial Report 2023 | Vienna Insurance Group
ADDED VALUE
Annual Financial Report 2023
2
CONTENTS
Group management report
27
216
Consolidated financial statements
217
Corporate governance report
Supervisory Board report
CONSOLIDATED FINANCIAL STATEMENTS 2023
Read more
Additional videos and information
about the financial year 2023
are available online at
annual-report.vig/2023
Some of the additional content:
• Video with the new CEO Hartwig Löger
• Explanatory video on VIG 25
sustainability programme
• Further highlights from the
2023 financial year
All VIG Holding publications are
available at group.vig/downloads
Business development and economic position
Economic environment
Legal environment
Group business development and financial
performance indicators
Branch offices
Business development and financial performance
indicators by reportable segment
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-financial report
Corporate Governance
Outsourcing disclosures
Expected development and risks of the Group
Significant risks and uncertainties
Expected development – Outlook for 2024
6
6
6
7
12
12
21
21
21
21
23
23
23
23
24
24
24
GROUP MANAGEMENT REPORT 2023
5
Consolidated income statement
Consolidated statement of comprehensive
income
Consolidated balance sheet
Consolidated statement of change in equity
Consolidated cash flow statement
Notes
Explanatory notes to the net assets, financial
position and operating results
Additional disclosures
Risk strategy and risk management
Declaration by the Managing Board
Auditor’s Report
28
29
30
31
32
34
60
119
181
199
212
28
Primary financial statements
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
3
Management report
238
225
227
227
232
236
237
237
226
MANAGEMENT REPORT TO THE
ANNUAL FINANCIAL STATEMENTS IN
ACCORDANCE WITH UGB
Company profile
Management report 2023
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
241
242
242
244
246
261
262
267
268
Auditor’s report
Declaration by the Managing Board
Supervisory Board report
ANNUAL FINANCIAL STATEMENTS IN
ACCORDANCE WITH UGB
Annual Financial Statements 2023
Balance sheet
Income statement
Notes to the financial statements for 2023
Proposed appropriation of profits
Service
273
SERVICE INFORMATION
274
List of abbreviations
276
Notice – Address
For VIG diversity and 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 2023 or at
group.vig/sustainability
4
Annual Financial Report 2023
VIENNA I
NSURANCE 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 2023
Business development and economic position
ECONOMIC ENVIRONMENT
The general economic weakness of the Eurozone con-
t
i
n
ued in the 4
th
quarter of 2023. In a first estimate, growth
stagnated in the 4
th
quarter of 2023 (0.0% compared to the
previous quarter). Thus, real GDP growth for 2023 was 0.5%
year-on-year. Weak developments both in consumption and
investment significantly contributed to it. In December 2023,
sentiment among service providers weakened again slightly
from a low level. Industry sentiment stabilised at an even
lower level for now.
In the 4
th
quarter of 2023 consumer prices (Harmonised
Consumer Price Index, HCPI) rose by 2.7% year-on-year in
the Eurozone. A diminishing base effect of energy prices led
to a certain deceleration of the disinflationary trends. Overall
the inflation rate of consumer prices for 2023 was 5.4% year-
on-year in the Eurozone. According to the quick estimate by
Statistics Austria, the Austrian GDP in the 4
th
quarter 2023 fell
by 1.3% year-on-year. The slight increase of 0.2% compared
to the previous quarter - reflected by a positive development
in investments and in government consumption in the 4
th
quarter - was the first indication of stabilisation. Overall, the
strongly subdued economy resulted in a negative real GDP
growth of -0.7% for the entire year of 2023.
The HCPI-inflation still increased to 5.7% year-on-year in
December 2023, which is 0.8 percentage points more than
in November 2023. Analogous to the Eurozone, this is also
attributable to the diminishing base effect of the energy
prices. For the entire year 2023, the HCPI inflation for
Austria was 7.7%. Central and Eastern Europe was not able
to significantly decouple from the general economic trend
in 2023. Croatia and Romania grew dynamically for much
of the year. In both these countries private consumption
actually increased in the first half of 2023 in contrast to the
rest of the region. The Czech Republic and Hungary are
expected to end 2023 in recession, mainly due to weak
domestic demand caused by high inflation and the resulting
tight money policy. Overall, the region reported a real GDP
growth of 0.6% year-on-year, whereby Hungary (-0.9%) and
the Czech Republic (-0.4%) mark the lower end, Croatia
(2.4%) and Serbia (2.5%) as well as Romania (2.0%) mark
the upper end. Support by external factors such as, for
example, energy prices disinflationary trends were strong in
the region over the course of 2023. Nevertheless, this could
not prevent the region from being among the leaders in the
EU’s inflation expectations for 2023. The average inflation
rate in the region in 2023 was 11.6% year-on-year, with
Hungary having by far the highest rate at 17.6%.
LEGAL ENVIRONMENT
SUSTAINABLE FINANCE
Towards the end of the European legislative period 201
9-
2024, numerous legislative EU initiatives under the title
“European Green Deal” were completed. After the legis-
lative process for the Corporate Sustainability Reporting Di-
rective (CSRD) was completed at the end of 2022, details
followed in 2023 in the form of new, obligatory European
standards for sustainability reporting (European Sustain-
ability Reporting Standards, ESRS) that, after several post-
ponements were published on 22
nd
December 2023 in the
Official Journal of the European Union and are already
applicable for the 2024 reporting year. Extensive organisa-
tional and technical preparation was performed for its im-
plementation. The preliminary political agreement on, the
Corporate Sustainability Due Diligence Directive (CSDDD),
at the end of 2023 introduced an initial limited application
to the financial sector, but in particular the obligation to adopt
corporate transition plans that essentially must determine
decarbonisation of investment, insurance and own operations
with interim targets by 2050.
In advance of the new sustainability reporting starting in
2024, the 2022 sustainability report, that was published in
2023, contained, for the second time, information regarding
sustainable investment or insurance in the form of the tax-
onomy eligible investment and also underwriting KPIs in ac-
cordance with Article 8 of the Taxonomy Regulation. As a
next step, preparations were made in 2023 for the technically
Group management report 2023
Group management report | Co nsolidated financial statements | Manageme nt report | Annual financial statement s | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
7
narrower taxonomy aligned investment and underwriting
KPIs which will be published for the first time in 2024.
DIGITAL RESILIENCE
The regulation of the digital security in the financial sector also
came into focus at the European level in the reporting period.
On 27 December 2022 the Digital Operational Resilience Act
(DORA) was published in the Official Journal of the European
Union. Starting from 17 January 2025 DORA will be applic-
able to European financial entities and they will be obligated,
among other things, to take all required security precautions
to mitigate cyber attacks and other risks in the area of infor-
mation and communication technology (ICT risks). Essential
details for the provisions in DORA are set at level 2. These
level 2 measures are developed by the ESAs (EIOPA, EBA
and ESMA) in a joint committee and had to be published by
17 January 2024 or will have to be published by 17 July 2024
respectively.
INTERNATIONAL SANCTIONS
After significant changes to the dynamics, complexity and
extent of the international sanctions environment as a result
of the Russian aggresion against Ukraine in 2022, multiple
countries and organisations, above all the European Union,
the United States of America and the United Kingdom of
Great Britain and Northern Ireland, imposed further com-
prehensive sanctions against Russia or expanded already
exiting sanctions in the reporting year 2023. The restrictions
ranged from (investment) restrictions for specific economic
sectors to embargoes on goods, complete trade embar-
goes for specific regions to significant expansion of the
number of persons and companies that were placed on the
sanctions list and with whom business relationships are
therefore prohibited. In 2023, however, persons and com-
panies that are not located in Russia were also sanctioned
because they were accused of circumventing the existing
sanctions provisions. These relate to persons with nation-
alities from EU countries or companies with registered office
in the EU. Also in 2023, following human rights violations by
the Iranian regime in the country, in particular the European
Union imposed new and the United States of America ex-
panded existing sanctions against Iran. Further restrictive
measures are also expected in 2024 due to the ongoing
conflicts, particularly in connection with Russia and Iran.
WHISTLEBLOWER PROTECTION
The EU Directive (EU) 2019/1937 on the protection of persons
who report breaches of Union law (“Whistleblower Directive”)
provides for minimum standards for protecting whistleblowers
from retaliation and the establishment of confidential reporting
channels by companies and authorities. Austria has trans-
posed the EU Whistleblower Directive into Austrian law with
more than one year delay in form of the Austrian Whistle-
blower Act (Hinweisgeber:innenschutzgesetzes, HSchG).
This law entered into force on 25 February 2023. Com-
panies with more than 250 employees or companies in the
financial services sector, irrespective of the number of em-
ployees, were obliged, within a transition period of six months,
thus until 25 August 2023, to establish internal reporting
channels to enable whistleblowers to report perceived vio-
lations against the areas of law listed in the HSchG while main-
taining confidentiality and data protection. For companies with
50 to 249 employees, the transition period for the establish-
ment of internal reporting channels ended on 17 December
2023. In VIG Holding, the respective processes (including a
Whistleblowing Portal) were established in accordance with
the provisions of the HSchG; incoming reports are treated
in compliance with the applicable provisions.
GROUP BUSINESS DEVELOPMENT AND FINANCIAL
PERFORMANCE 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
report from page 12. The segment Extended CEE includes
the countries of Albania incl. Kosovo, Baltic states, Bosnia-
8
Annual Financial Report 2023
Herzegovina, Bulgaria, Croatia, Hungary, Moldova, North
Macedonia, Romania, Serbia, Slovakia and Ukraine. The
segment Special Markets consists of the four countries
Germany, Georgia, Liechtenstein and Türkiye. The Monte-
negro and Belarus markets were not included in the scope
of consolidation in the year 2023 due to immateriality. More
information on the scope of consolidation and the con-
solidation method is provided in Notes 22. Affiliated companies
and participations on page 133 and Note 25.2. Business
combinations on page 148. Details on the changes in scope
of consolidation can be found in Note 21. Business com-
binations starting on page 131.
VIG Insurance Group operates with more than one com-
pany and brand in most of its markets. The market pres-
ence of each company in a country is aimed at different tar-
get groups. Their product portfolios differ accordingly. Use
of this multi-brand strategy does not mean, however, that
potential synergies remain unexploited. Structural efficiency
and the cost-effective use of resources are examined regu-
larly. Back offices that perform administrative tasks for more
than one company are already being used successfully in
many countries. Mergers of insurance companies are con-
sidered if the additional synergies that can be achieved out-
weigh the benefits of a diversified market presence. To
ensure uniform management, specific country respon-
sibilities also exist at Managing Board level. As part of the
VIG 25 strategic programme, the country responsibilities of
the members 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 274. In order to avoid
duplicate information, reference will be made below to
appropriate 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 re-
port below are intended to explain these data in more detail.
NEW ACCOUNTING STANDARDS
As of 1 January 2023, the VIG Insurance Group applied the
IFRS 9 and IFRS 17 accounting standards for the first time.
The first-time application leads to significant changes and
therefore has a material influence on this Group Annual
Report including adjusted comparative information of the
previous year. Detailed information can be found in the sec-
tion “Initial application of standards” starting on page 35 in
the notes to the consolidated financial statements.
FINANCIAL PERFORMANCE INDICATORS
The key financial performance indicators that form the basis
for assessing the business development are presented
below. All information on companies of the Vienna Insur-
ance Group are based on IFRS figures, in particular the
insurance service revenue. Due to lack of data availability all
market data relates to the gross written premiums within
one period.
Gross written premiums
Further details on the gross written premiums are included
in Note 1.7. Risk of concentration on page 83.
The VIG Insurance Group in 2023 achieved gross written
premiums of EUR 13,784.0 million and thus an increase of
9.8% year-on-year (2022: EUR 12,559.2 million).
With double digit growth rate in comparison to the previous
year gross written premiums in the segments Poland (12.7%),
Extended CEE (+12.5%), Special Markets (+11.3%) and
Group Functions (+13.8%) grew especially strongly. Of the
countries in the segment Extended CEE, the Baltic states
(+12.2%), Romania (+17.8%) and Hungary (+24.1%) showed
especially a dynamic premium development. In the seg-
ment Special Markets the countries of Georgia (+19.9%)
and Türkiye (+18.4%, adjusted for inflation) recorded strong
premium growth.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
9
ABBREVIATED CONSOLIDATED INCOME STATEMENT
2023
2022
adjusted
∆ in %
∆
absolute
in EUR million
Insurance service result 1,208.1
1,138.8
6.1%
69.3
Insurance service revenue –
issued business
10,921.8
9,737.6
12.2%
1,184.2
Insurance service expenses –
issued business -9,265.3
-8,525.8
8.7%
-739.5
Insurance service result –
reinsurance held -448.4
-73.0
> 100%
-375.4
Total capital investment result 284.3
-12.2
n/a
296.5
Investment result 1,893.1
-809.7
n/a
2,702.8
Income and expenses from
investment property 31.8
37.8
-15.8%
-6.0
Insurance finance result -1,657.1
741.4
n/a
-2,398.5
Result from associated
consolidated companies
16.5
18.3
-10.0%
-1.8
Finance result -98.5
-86.1
14.3%
-12.3
Other income and expenses -517.9
-406.7
27.3%
-111.2
Business operating result 876.0
633.8
38.2%
242.2
Adjustments* -103.3
-48.1
> 100%
-55.2
Result before taxes 772.7
585.7
31.9%
187.0
Taxes -196.4
-121.7
61.4%
-74.7
Result for the period 576.2
464.0
24.2%
112.2
Non-controlling interests in net
result for the period 17.3
-8.3
n/a
25.6
Result for the period less non-
controlling interests
559.0
472.3
18.3%
86.6
Earnings per share* (in EUR) 4.31
3.63
18.6%
0.7
*The value consists of impairments of goodwill as well as intangible assets.
Insurance service revenue – issued business
Additional details on the insurance service revenue – issued
business, hereinafter referred as “Insurance service revenue”,
are included in Note 1.3. Insurance contracts issued starting on
page 64 in the notes to the consolidated financial statements.
The insurance service revenue in the year 2023 amounted
to EUR 10,921.8 million (2022: EUR 9,737.6 million) and
was thus 12.2% above the value of the previous year. The
increase resulted primarily from the growth in the property
and casualty insurance (Premium Allocation Approach).
Insurance service expenses – issued business
Further details on the insurance service expenses – issued
business, hereinafter referred as “insurance service expenses”,
are included in Note 1.3. Insurance contracts issued starting on
page 64 in the notes to the consolidated financial statements.
In 2023 the insurance service expenses amounted to
EUR 9,265.3 million (2022: EUR 8,525.8 million). The in-
crease of 8.7% in comparison to the previous year resulted
primarily from the significant increase in business volume.
Insurance service result – reinsurance held
Further details on insurance service result from reinsurance
held are included in Note 1.4. Reinsurance contracts held
starting on page 74 in the notes to the consolidated financial
statements.
The insurance service result from reinsurance held re-
sulted in 2023 in a loss of EUR 448.4 million (2022: loss
of EUR 73.0 million). It should be noted that coverage of a
large claim was included in the segment Austria in 2022
which had a very positive influence on the previous year's
result. On the other hand, the reported year was impacted
by increased costs for reinsurance.
Total capital investment result
Details on the total capital investment result are included in
Note 9. Notes to the consolidated income statement start-
ing on page 109.
The two significant positions in the total capital investment
result are the investment result in which the results of the
assets evaluated according to IFRS 9 are shown and the
insurance finance result in which primarily the discounting
effect of the insurance assets and liabilities is shown. The
total capital investment result increased in 2023 to
EUR 284.3 million (2022: losses of EUR 12.2 million), whereby
the investment result increased by EUR 2,702.8 million and
the insurance finance result fell by EUR 2,398.5 million. This
development is mainly attributable to the sharp rise in
market interest rates during 2022.
Result before taxes
The consolidated results before taxes increased in 2023 to
EUR 772.7 million (2022 adjusted: EUR 585.7 million). The
10
Annual Financial Report 2023
rise of 31.9% originates predominately from the significantly
higher results in the segments Austria, Extended CEE and
Group Functions.
The result before taxes adjusted by impairments of intan-
gible assets and impairments goodwill in the amount of
EUR 103.3 million, which predominantly comes from the
countries of the Baltic states, Türkiye and Hungary as well
as from the segment Group Functions, resulted in a busi-
ness operating result of EUR 876.0 million. This was 38.2%
higher than the value of the previous year (2022 adjusted:
EUR 633.8 million).
Total capital investment portfolio
Further details on financial instruments are included in the
Note 2. Financial assets and liabilities as well as other bal-
ance sheet items evaluated according to IFRS 9 starting on
page 87 in the notes to the to the consolidated financial
statements.
The total capital investment portfolio as of the reporting date
31 December 2023 amounted to EUR 42,586.1 million
(31 December 2022: EUR 41,062.2 million). The increase
of 3.7% year-on-year is primarily due to the increased
market values of the investments measured at fair value.
The financial instruments for unit- and index-linked life
insurance increased 2023 by 8.4% mainly due to market
and interest rate development from EUR 7,164.4 million in
2022 to EUR 7,768.3 million.
In the notes to the consolidated financial statements the
risk-bearing portfolio consists of cash and cash equivalents,
financial assets, investments in associates, investment
property as well as owner-occupied property. As of 31 Dec-
ember 2023 the portfolio amounted to EUR 35,288.7 million
(31 December 2022: EUR 34,380.6 million) and corres-
ponds to the total capital investment portfolio minus the
financial instruments for unit- and index-linked life in-
surance plus owner-occupied property. As owner-
occupied property a value of EUR 471.0 million was
reported as of 31 December 2023 (31 December 2022:
EUR 482.8 million).
SPLIT OF THE CAPITAL INVESTMENTS HELD AT OWN RISK 2023
Consolidated shareholders' equity
Further details on the consolidated shareholders' equity are
included in the notes to the consolidated financial state-
ments starting on page 111.
The consolidated shareholders' equity increased in 2023 by
5.5% to EUR 6,029.7 million (31 December 2022 adjusted:
EUR 5,713.9 million). The rise is attributable to the positive
development of the overall result. The equity attributable to
shareholders increased as well in comparison to the pre-
vious year and amounted in 2023 to EUR 5,892.3 million
(2022 adjusted: EUR 5,472.6 million).
Insurance contracts liabilities issued
Further details on the insurance contracts liabilities issued
are included in Note 1.3. Insurance contracts issued in the
notes to the consolidated financial statements starting on
page 64.
The insurance contracts liabilities issued amounted to
EUR 37,804.1 million as of the balance sheet date 31 Dec-
ember 2023 (31 December 2022: EUR 36,370.4 million). That
corresponds to an increase of 3.9% year-on-year and is
primarily based on the positive price development of the
underlying items in the Variable Fee Approach.
Property 9.8%
(9.6%)
Loans 2.1%
(2.3%)
Other investments
7.8% (9.6%)
Shares 3.3% (3.5%)
Bonds 75.3%
(73.4%)
Affiliated companies 1.7%
(1.6%)
Values for 2022 in parentheses
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
11
Cash flow
The cash flow from operating activities improved in 2023 pri-
marily due to the clear improvement in the result for the period
and effects from the additional corporate income tax paid in
the previous year in connection with the changeover of the
taxes on the underwriting provision in the Czech Republic to
EUR -139.3 million (2022 adjusted: EUR -404.0 million). The
cash flow from investment activities was EUR 489.8 million in
2023 (2022 adjusted: EUR 22.4 million). It should be taken
into account that the previous years figure was influenced by
the acquisition of the Aegon companies in Hungary and
Türkiye. In 2023 the cash flow from financing activities was to
EUR -1,100.7 million (2022 adjusted: EUR -32.5 million). The
change in cash flow from financing activities is attributable
to the higher expenses from successive company acqui-
sitions. Additionally, the issuance of a subordinated bond of
VIG Holding of EUR 500 million had particulary influenced
the cash flow in the previous year. At the end of 2023 cash and
cash equivalents of the Group were at EUR 1,558.1 million
(2022 adjusted: EUR 2,315.2 million). The received interest
and dividends in total amounted in 2023 to EUR 899.3 million
(2022: EUR 840.9 million).
Earnings per share
Earnings per share is a key figure that compares the result for
the period (less non-controlling interests) to the average
number of shares outstanding. The number of shares comp-
ared to the previous year remained unchanged.
In 2023 earnings per share were EUR 4.31 (2022 adjusted:
EUR 3.63). The year-on-year increase is therefore 18.6%
and reflects the positive business performance.
Operating return on equity (Operating RoE)
Operating return on equity measures the profitability of
the insurance group. This ratio is calculated by dividing the
business operating result by the average shareholder´
equity less unrealised gains and losses.
At 31 December 2023 Vienna Insurance Group achieved an
operating return on equity of 15.1% (31 December 2022
adjusted: 11.6%).
Operating Return on Equity 31/12/2023
31/12/2022
adjusted
31/12/2021
adjusted
in EUR million
Shareholdersʾ equity 6,029.7
5,713.9
5,308.3
Unrealised gains and losses
recognised in equity* -159.3 52.3
-139.4
Adjusted shareholders’ equity 5,870.4
5,766.2
5,168.9
Average adjusted shareholders’
equity
5,818.3
5,467.6
Business operating result 876.0
633.8
Operating RoE in % 15.1
11.6
*adjusted by non-controlling interests
Net combined ratio
For the calculation of the net combined ratio the insurance
service expenses for issued business less insurance service
expenses from reinsurance contracts held is divided by the
insurance service revenue from issued business less
insurance service revenue from reinsurance held in property
and casualty insurance.
The net combined ratio showed a stable development
compared to the previous year and in 2023 amounted to
92.6% (2022 adjusted: 92.8%).
Net Combined Ratio 2023
2022 adjusted
in EUR million
Insurance service revenue net 7,582.2
6,551.2
Attributable costs net -2,306.3 -2,047.7
Insurance service expenses excl.
attributable costs net -4,711.7 -4,030.8
Insurance service expenses net -7,018.0 -6,078.5
Net Claims ratio in % 62.1
61.5
Net Cost ratio in % 30.4
31.3
Net Combined Ratio in % 92.6
92.8
12
Annual Financial Report 2023
Contractual Service Margin (CSM)
The Contractual Service Margin (CSM) includes the unre-
alised profits originally priced into the insurance contract,
which is reported as a separate component of the technical
provisions. As of 31 December 2023 the CSM amounted to
EUR 5,797.2 million (31 December 2022: EUR 5,838.1 million)
and mainly stems from life and health insurance. That cor-
responds to a slight decline of 0.7% year-on-year that
resulted particularly from the lower balance of CSM re-
leased to income and new business CSM in the Variable
Fee Approach.
BRANCH OFFICES
VIG Insurance Group has branch offices in Germany,
France, Italy, Kosovo, Romania, Slovenia, the Baltic coun-
tries Estonia, Latvia and Lithuania and the North European
countries Sweden, Norway and Denmark. Information on
branches and any significant changes compared to the
previous year are discussed in more detail for the respec-
tive reportable segment in the section below, if applicable.
A list of the addresses of the insurance companies and
pension funds and their branch offices is also provided in
the Group Annual Report 2023 on page 246.
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 the present-
ation of these reportable segments and descriptions of the
market position held by VIG Group in the respective
countries. A detailed presentation of the consolidated in-
come statement by reportable segment can be found in the
notes to the consolidated financial statements starting on
page 57.
INSURANCE SERVICE REVENUE
2023
2022
∆ in %
∆ absolute
in EUR million
Austria 3,307.4
3,163.4
4.6%
144.0
Czech Republic 2,040.1
1,860.8
9.6%
179.3
Poland 1,224.5
1,070.9
14.3%
153.6
Extended CEE
1
3,148.1
2,673.6
17.7%
474.5
Special Markets
2
617.6
483.2
27.8%
134.5
Group Functions
3
1,652.2
1,399.7
18.0%
252.5
Consolidation -1,068.1
-913.9
16.9%
-154.2
Total 10,921.8
9,737.6
12.2%
1,184.2
1
Extended CEE: Albania incl. Kosovo, Baltics, Bosnia-Herzegovina, Bulgaria, Croatia, Hungary,
Moldova, North Macedonia, Romania, Serbia, Slovakia, Ukraine
2
Special Markets: Georgia, Germany, Liechtenstein, Türkiye
3
Group functions: VIG Holding, VIG Re, Wiener Re, VIG Fund, corporate IT service providers, asset
management company and intermediate holding companies
RESULT BEFORE TAXES
2023
2022
adjusted
∆ in %
∆ absolute
in EUR million
Austria 385.9
273.0
41.3%
112.9
Czech Republic 218.0
240.7
-9.4%
-22.7
Poland 29.4
72.3
-59.4%
-42.9
Extended CEE
1
101.0
48.4
> 100%
52.6
Special Markets
2
64.2
38.5
66.9%
25.8
Group Functions
3
-25.8
-87.2
-70.5%
61.5
Consolidation 0.0
0.0
n/a
0.0
Total 772.7
585.7
31.9%
187.0
1
Extended CEE: Albania incl. Kosovo, Baltics, Bosnia-Herzegovina, Bulgaria, Croatia, Hungary,
Moldova, North Macedonia, Romania, Serbia, Slovakia, Ukraine
2
Special Markets: Georgia, Germany, Liechtenstein, Türkiye
3
Group functions: VIG Holding, VIG Re, Wiener Re, VIG Fund, corporate IT service providers, asset
management company and intermediate holding companies
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
13
AUSTRIA
AUSTRIAN INSURANCE MARKET
In Austria the top 5 insurance groups in the country in the
1
st
to 3
rd
quarter 2023 generated approximately 71% of the
gross written premiums. The two largest insurance groups
contributed around 44%.
MARKET DEVELOPMENT 1
ST
TO 3
RD
QUARTER 2023 COMPARED TO
THE PREVIOUS YEAR
In the 1
st
to 3
rd
quarter of 2023, the Austrian insurance
industry generated a total of EUR 15.7 billion gross written
premiums. Compared to the previous year this corresponds
to an increase of approximately 4.1%, which is primarily
attributable to the positive development of the property and
casualty insurance.
In the 1
st
to 3
rd
quarter 2023 an increase of 7.9% in the
property and casualty insurance was recorded year-on-year.
The motor vehicle insurance contributed with an increase in
the gross written premiums of 7.1%, which is especially
attributable to the increased price levels. The premiums in
the motor third party liability insurance grew by 5.5%, in the
motor own damage insurance by 8.6%. The premiums in
the non-motor lines of business grew by 8.3% in the 1
st
to
3
rd
quarter 2023.
In life insurance a decline in gross written premiums of 5.9%
was recorded in the 1
st
to 3
rd
quarter 2023.
While the income from regular premium life insurance de-
clined slightly by 0.6% year-on-year, a significant decrease
of 35.9% was recorded in single premiums life insurance.
With a clear decline of 15.5% year-on-year the unit- and
index-linked life insurance in particular recorded losses. The
occupational disability and nursing care insurance achieved
a growth of respectively 2.9% and 1.0% in the life insurance
business. The gross written premiums in the health
insurance developed positively with an increase of 7.8%
year-on-year.
According to the calculations based on data from the Inter-
national Monetary Fund (IMF) and the Austrian Insurance
Association (VVO), in 2022 an average of EUR 2,139 per
capita was spent for insurance. Of which the non-life sector
accounted for EUR 1,544 and life insurance accounted to
EUR 595.
MARKET SHARE OF THE LARGEST INSURANCE GROUPS
VIG COMPANIES IN AUSTRIA
Vienna Insurance Group is represented by the two insurance
companies Wiener Städtische and Donau Versicherung in
Austria. s Versicherung, which was merged with Wiener
+7.8%
+7.9%
Source: Austrian Insurance Association
EUR 15.7 bn
EUR 9.7 bn
-5.9%
9M 2023 figures
+4.1%
Life
Property and
casualty
Total
Health
EUR 2.1 bn
EUR 3.8 bn
Source: Austrian Insurance Association; as of 9M 2023
22.9%
VIG ranked 1
st
20.7%
Ranked 2
nd
15.1%
Ranked 3
rd
41.3%
Other participants
Per cent of total premium volume
14
Annual Financial Report 2023
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
cross-border corporate business. In addition, since 2019 it
operates via branches in the Northern European countries
of Sweden, Norway and Denmark in the traditional industrial
insurance business. VIG Holding is assigned to the segment
Group Functions.
The VIG insurance companies are the leading insurance
Group in Austria with a market share of 22.9% in the 1
st
to 3
rd
quarter 2023. In property and casualty insurance and in life
insurance it holds first market rankings, in the health insur-
ance business it takes second place.
FINANCIAL PERFORMANCE INDICATORS IN REPORTABLE
SEGMENT AUSTRIA
INSURANCE SERVICE REVENUE BY LINE OF BUSINESS
Insurance service revenue
The insurance service revenue in the year 2023 amounted
to EUR 3,307.4 million. (2022: EUR 3,163.4 million). This
corresponds to an increase by 4.6%, which is based on the
dynamic development in the non-life insurance line of
business (Premium Allocation Approach).
Result before taxes
The result before taxes in the segment Austria amounted to
EUR 385.9 million in 2023 (2022 adjusted: EUR 273.0 million).
This corresponds to a strong increase by 41.3%, which is
mainly due to the improvement of the total capital invest-
ment result.
Net combined ratio
The net combined ratio increased in 2023 mainly as a result of
a higher net claims ratio due to higher claims in other property
and casual insurance to 91.6% (2022 adjusted: 90.1%).
CZECH REPUBLIC
CZECH INSURANCE MARKET
In the 1
st
to 3
rd
quarter of 2023 the insurance market in the
Czech Republic was dominated by the top 5 insurance
groups, which together held a share of approximately 84%
of the total gross written premiums.
MARKET DEVELOPMENT 1
ST
TO 3
RD
QUARTER 2023 COMPARED TO
THE PREVIOUS YEAR
According to the method of calculation of the Czech insur-
ance association ČAP, the Czech insurance market record-
ed gross written premiums in the amount of CZK 127.0 bil-
lion in the 1
st
to 3
rd
quarter of 2023 and thus an increase by
Non-life
Source: Czech Insurance Association
+6.5%
+8.5%
+2.3%
Total Life
9M 2023 figures
CZK 127.0 bn
CZK 38.2 bn
CZK 88.8 bn
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
15
by 6.5% year-on-year. With the exception of the single
premiumlife insurance all insurance lines of business had a
positive development. In the motor lines of business the
motor own damage insurance had a remarkable increase
by 11.5% year-on-year. The motor third party liability
insurance also developed positively with an increase of
5.1%. Both lines of business also profited in 2023 from
growth in the number of newly insured vehicles (+1.8% in
the motor third party liability insurance; +7.8% in the motor
own damage). In non-motor insurance there was an
increase of 8.8% in the 1
st
to 3
rd
quarter 2023 largely influ-
enced by the double digit growth rate in the property
insurance.
Gross written premiums grew by 2.3% in the life lines of
business. The increase is especially attributable to the good
development of the life insurance with regular premiums
that recorded an increase of 2.6% in the 1
st
to
3
rd
quarter
2023. On the other hand, a strong decline of 18.4% was
recorded in the single premium business.
According to the calculations based on the data of the
International Monetary Fund (IMF) and the Czech Insurance
Association, the Czech population spent an average of
EUR 744 per capita for insurance premiums in 2022. This
amount was divided into EUR 502 for non-life insurance
and EUR 242 for life insurance.
MARKET SHARE OF THE LARGEST INSURANCE GROUPS
VIG COMPANIES IN THE CZECH REPUBLIC
The VIG Insurance Group is represented by two companies
in the Czech Republic, Kooperativa and ČPP. With a market
share of 31.8% it was the largest insurance group in the
Czech Republic in the 1
st
to 3
rd
quarter 2023. It was in first
place in the market for both life insurance and non-life
insurance.
The Group's own reinsurance VIG Re, that has its
headquarters in Prague, is assigned to the segment Group
Functions.
FINANCIAL PERFORMANCE INDICATORS IN THE REPORTABLE
SEGMENT CZECH REPUBLIC
INSURANCE SERVICE REVENUE BY LINE OF BUSINESS
Insurance service revenue
The insurance service revenue was EUR 2,040.1 million in
2023 (2022: EUR 1,860.8 million). This represents an in-
crease of 9.6%, which is based on the positive develop-
ment of in the motor lines of business.
Result before taxes
The result before taxes in the segment Czech Republic in
2023 amounted to EUR 218.0 million (2022 adjusted:
EUR 240.7 million). This decline of 9.4% resulted primarily
from the declining result in the life insurance due to a one
time effect in the Variable Fee Approach.
Source: Czech Insurance Association; as of 9M 2023
11.5%
Ranked 3
rd
32.3%
Other participants
Per cent of total premium volume
31.8%
VIG ranked 1
st
24.4%
Ranked 2
nd
16
Annual Financial Report 2023
Net combined ratio
W
i
th 91.3% the net combined ratio remained at a solid level
in 2023 (2022 adjusted: 90.6%). The year-on-year increase
resulted from a higher claims ratio.
POLAND
POLISH INSURANCE MARKET
The five largest insurance groups in the country wrot
e ap-
proximately 78% of the gross written premiums in the first
three quarters of 2023. The three largest insurance groups
contributed approximately 61%.
MARKET DEVELOPMENT 1
ST
TO 3
RD
QUARTER 2023 YEAR-ON-YEAR
In the 1
st
to 3
rd
quarter 2023 the Polish insurance market
generated PLN 57.7 billion and thus an increase of 9.4%
year-on-year. The increase is attributable to the good
development of both the non-life insurance (+10.4%) and
also life insurance (+7.2%).
The motor insurance recorded growth in the 1
st
to 3
rd
quarter
2023: The motor third party liability insurance grew 3.7% year-
on-year. The premiums in the motor own damage insurance
increased by 15.3%, which is predominately due to the
disproportional increase of the average premium (+33.5%).
The non-motor lines of business grew by 12.4% especially as
a result of the good development in the property and industrial
insurance. The health insurance products in the non-life
insurance showed a clear increase of 30.7% year-on-year.
Life insurance recorded an increase of 7.2% year-on-year in
the 1
st
to 3
rd
quarter 2023. This is predominately attributable
to the positive development of the single premium life insur-
ance that, after a sharp drop in the previous year recovered
and recorded an increase of 23.9% in the 1
st
to 3
rd
quarter
2023. Life insurance with regular premiums increased by
4.8% year-on-year in the first nine months of 2023.
The average insurance spending per resident in Poland
amounted to EUR 410 per capita in 2022 according to the cal-
culations of the data of the International Monetary Fund (IMF)
and Polish financial market authorities. Of which EUR 288 was
for non-life insurance and EUR 122 to the life insurance area.
MARKET SHARE OF THE LARGEST INSURANCE GROUPS
VIG COMPANIES IN POLAND
VIG Insurance Group is represented on the Polish mark
et by
Compensa Life and Non-Life, the digital insurer Beesafe,
InterRisk, the life insurance Vienna Life and the non-life insur-
ance Wiener TU. In addition, in May 2023 the closing of the
Polish Aegon companies Aegon Life (AEGON towarzystwo
Ubezpieczen na Zycie S.A.) together with branch offices in
Romania and the pension fund Vienna PTE (formerly Aegon
PTE) was completed. The acquired companies have not
yet been included in the consolidation for 2023. Since 2019,
InterRisk has held a stake in the mutual insurance associa-
tion TUW “TUW”. VIG is concentrating its market presence
in Poland from currently six to three insurance companies in
Non-life
Source: Financial Market Authority Poland
+10.4%
7.2%
Total Life
9M 2023 figures
PLN 57.7 bn
PLN 17.0 bn
PL
N 40.7 bn
+9.4%
Source: Financial Market Authority Poland; as of 9M 2023
9.7%
V
IG ranked 4
th
14.7%
Ranked 2
nd
34.4%
Ranked 1
st
29.5%
Other participants
Per cent of total premium volume
11.7%
Ranked 3
rd
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
17
the future. The merger of the non-life insurance companies
Compensa and Wiener TU will create a key player in the non-
life insurance market. InterRisk will continue to operate indep-
endently. The three life insurance companies Compensa Life,
Vienna Life and Aegon Life will be merged to form a larger,
strong market player in the life insurance business. The mer-
gers are subject to the necessary regulatory approvals.
VIG Insurance Group ranks fourth in the overall market in
Poland with a share of 9.7% in the first nine months of 2023.
It ranked fourth among the top insurers both in the non-life
and life insurance area.
FINANCIAL PERFORMANCE INDICATORS IN THE REPORTABLE
SEGMENT POLAND
INSURANCE SERVICE REVENUE BY LINE OF BUSINESS
Insurance service revenue
The insurance service revenue in 2023 amounted to
EUR 1,224.5 million (2022: EUR 1,070.9 million). This repre-
sents a year-on-year increase of 14.3%, which is primarily
attributable to the positive development in the other prop-
erty and casualty insurance and motor own damage insur-
ance lines of business.
Result before taxes
The result before taxes amounted 2023 to EUR 29.4 million
(2022 adjusted: EUR 72.3 million). The 59.4% year-on-year
decline is mainly due to the increase of the net combined
ratio and restructuring measures taken.
The results before taxes adjusted for the impairment of
intangible assets and goodwill in the amount of
EUR 3.4 million resulted in a business operating result of
EUR 32.8 million in 2023 (2022 adjusted: EUR 72.5 million).
Net combined ratio
The net combined ratio in 2023 was 97.4% due to rising costs
and claims as a result of high inflation (2022 adjusted: 94.5%).
EXTENDED CEE
The reportable segment Extended CEE includes the
countries of Albania incl. Kosovo, Baltic states, Bosnia-
Herzegovina, Bulgaria, Croatia, Hungary, Moldova, North
Macedonia, Romania, Serbia, Slovakia and Ukraine.
Albania incl. Kosovo
VIG Insurance Group operates in the Albanian insurance
market with Sigma Interalbanian and Intersig. It ranked
second in the market with a market share of 19.6% in the
first nine month of 2023. Via a branch Sigma Interalbanian
is also represented in Kosovo where it ranked sixth with a
market share of 8.7% in the 1
st
to 3
rd
quarter of 2023.
Baltic states
VIG insurance companies are represented in all three Baltic
states. Compensa Life has its headquarters in Estonia and
is also represented in Latvia and Lithuania via branch offices.
BTA Baltic operates in Latvia and is active in Estonia and
Lithuania with branches. Also, Compensa Non-Life, which
was merged with Seesam in 2020, is active in Lithuania. It
maintains branches in Latvia and Estonia.
VIG insurance companies are market leader in the Baltic states
with a market share of 25.9% in the 1
st
to 3
rd
quarter 2023.
18
Annual Financial Report 2023
They also hold first place in the non-life insurance
and
second place in life insurance.
Bosnia-Herzegovina
VIG Insurance Group is represented in the Serbian Republic
of Srpska of Bosnia-Herzegovina by Wiener Osiguranje with
headquarters in Banja Luka and by Vienna Osiguranje with
headquarters in Sarajevo. The VIG insurance companies
were in fifth place based on a market share of 9.0%
according to the data of the 1
st
to 3
rd
quarter 2023.
Bulgaria
On the Bulgarian insurance market VIG is represented by
Bulstrad Life and Bulstrad Non-Life. Together they held a
market share of 13.3% in the 1
st
to 3
rd
quarter 2023. Thus,
VIG insurance companies were in third place in Bulgaria. In
the non-life insurance sector they ranked third in the market
and in life insurance they are in second place. In addition, the
pension fund PAC Doverie belongs to VIG Insurance Group.
Croatia
In Croatia the VIG insurance company Wiener Osiguranje is
active. A market share of 8.0% in the 1
st
to 3
rd
quarter 2023
puts it in fourth place on the Croatian insurance market. It
is in fourth place in the non-life insurance sector and ranks
first in the life insurance sector.
Moldova
The VIG insurance company Donaris operates in Moldova.
With a market share of 12.9% in the 1
st
to 4
th
quarter 2022
it is in fifth place on the market. In the non-life insurance
sector, it is in fourth place.
North Macedonia
The VIG insurance companies Makedonija Osiguruvanje,
Winner Non-Life and Winner Life together held a market share
of 19.6% in the 1
st
to 3
rd
quarter 2023. This makes the VIG
companies the leading insurance group in North Macedonia.
They are the number one in the non-life insurance market
and number two in the life insurance market. In order to
better combine the strength of both companies on the one
hand and to achieve the economies of scale on the other, it
is planned to merge the non-life insurance companies
Winner Non-Life and Makedonija Osiguruvanje. The merger
is subject to regulatory and corporate law approvals.
Romania
There are three VIG insurance companies operating in the
Romanian insurance market, the non-life insurer Omniasig,
the composite insurer Asirom and the life insurer BCR Life.
With a market share of 24.1% the three VIG insurance com-
panies are the market leader in Romania. In the 1
st
to 3
rd
quarter 2023 they are in second place in non-life insurance
as well as in life insurance.
In addition, the closing of the Romanian Aegon-companies
was completed in May 2023. Both the acquired pension
fund Carpathia Pensil (formerly Aegon Pensii) and the
branch of the Polish Aegon Life (AEGON Towarzystwo
Ubezpieczen na Zycie S.A. Varsovia Sucursa) were not in-
cluded in the consolidation in 2023.
Serbia
In Serbia the VIG Insurance Group is active with the Wiener
Städtische Osiguranje. With a market share of 10.6% it
occupied fourth place in the 1
st
to 3
rd
quarter 2023. In the
non-life insurance sector it is in fifth place, in the life
insurance sector it ranks second.
Slovakia
Two VIG insurance companies, Kooperativa and Komunálna,
are represented in the Slovakian insurance market. With a
market share of 28.9% in the 1
st
to 3
rd
quarter 2023 they are
in first place as the largest insurance group in Slovakia. In
the non-life insurance sector they are in second place, in
the life insurance sector they are in first place.The Slovakian
pension fund 365.life acquired via Kooperativa at the end of
2022 is assigned to the segment Group Functions.
Ukraine
The VIG non-life insurers Kniazha and USG as well as the
life insurer Kniazha Life are active in Ukraine. With a share of
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
19
11.2% in the 1
st
to 3
rd
quarter 2023 the VIG insurance
companies are in second place in the overall market. In the
non-life insurance sector VIG is in second place in Ukraine,
in the life insurance sector it is in sixth place.
Hungary
In Hungary VIG operates with Union Biztosító and Alfa
Biztosító (formerly Aegon Biztosító). According to the data
published by the Hungarian Association MABISZ from the
1
st
to 4
th
quarter 2023, the VIG insurance companies are in
first place in the market with a market share of 19.6%. They
are in first place both in non-life and life insurance.
VIG became the market leader in Hungary through the acqui-
sition of the Hungarian companies of the Aegon Group in
March 2022. The Hungarian state took a 45% stake in the
holding company that was subsequently formed as a steering
unit of the Hungarian business. On 30 November 2023, VIG
increased its share of the Hungarian business from 55 to 90%.
The state holding Corvinus continues to hold 10% and this
underscores the commitment for a joint expansion of the
insurance industry in Hungary.
FINANCIAL PERFORMANCE INDICATORS IN THE REPORTABLE
SE
GMENT EXTENDED CEE
INSURANCE SERVICE REVENUE BY LINE OF BUSINESS
Insurance service revenue
The insurance service revenue in 2023 amounted to
EUR 3,148.1 million and were thus 17.7% the previous
year’s figure (2022: EUR 2,673.6 million). The increase
resulted primarily from the good development in the Baltic
states, Bulgaria, Slovakia, Hungary and Romania. The
motor own damage, other property and casualty and health
lines of business especially achieved good growth.
Result before taxes
The result before taxes in the segment Extended CEE in 2023
was EUR 101.0 million (2022 adjusted: EUR 48.4 million). The
clear increase year-on-year was primarily attributable to Hun-
gary due to lower amortisation and impairment of purchased
customer bases and an improved net combined ratio.
Moreover, the total capital investment result developed very
positively in Slovakia and Bulgaria. This is primarily caused by
the difficult market situation in 2022 and driven by assets
recognised through profit and loss in accordance with IFRS 9.
The result before taxes adjusted for the impairments of
goodwill in the Baltic states in the amount of EUR 75.5 million
and other intangible assets in the amount of EUR 6.3 million
resulted in a business operating result in the segment Ex-
tended CEE of EUR 182.8 million in 2023 (2022 adjusted:
EUR 93.3 million).
Net combined ratio
In 2023 the net combined ratio in the segment Extended
CEE improved to 95.2% (2022 adjusted: 95.4%).
SPECIAL MARKETS
The segment Special Markets includes the countries o
f
Germany, Georgia, Liechtenstein and Türkiye.
Germany
VIG insurance companies InterRisk Non-Life and InterRisk
Life operate in Germany. The InterRisk companies distribute
exclusively through around 10,000 independent sales part-
ners. InterRisk Non-Life specialises in accident and liability in-
surance and selected property insurance products. InterRisk
Life focuses on retirement provision and occupational disability
solutions, as well as protection for surviving dependents. The
20
Annual Financial Report 2023
VIG companies continue to be successful in the Germa
n
market as profitable niche players.
The Group internal reinsurance company VIG Re has also
been represented by a branch in Germany since 2017. It is
assigned to the segment Group Functions.
Georgia
VIG Insurance Group is represented in Georgia by the
companies GPIH and IRAO. With a market share of 24.0%
the companies are the leading insurance group in Georgia
in the 1
st
to 3
rd
quarter 2023.
Liechtenstein
The VIG insurance company Vienna-Life is active in Liechten-
stein. Vienna-Life only offers unit- and index-linked life insurance
and was in twelfth place in the Liechtenstein market in 2022.
Türkiye
VIG Insurance Group is active in Türkiye with the non-life
insurer Ray Sigorta and the Turkish life insurance company
Viennalife (formerly Aegon Emeklilik ve Hayat) acquired in
2022. With a market share of 3.8% the VIG insurance
companies reached the eighth place on the Turkish market.
FINANCIAL PERFORMANCE INDICATORS IN THE REPORTABLE
SE
GMENT SPECIAL MARKETS
INSURANCE SERVICE REVENUE BY LINE OF BUSINESS
I
nsurance service revenue
In 2023 the insurance service revenue in the segment
Special Markets increased from EUR 483.2 million in 2022
to EUR 617.6 million due to the good premium develop-
ment in all lines of business in the Turkish and Georgian
markets as well as due to the first-time consolidation as of
1 April 2022 of the Turkish Viennalife (formerly Aegon
Emeklilik ve Hayat). This represents an increase of 27.8%.
Premium development represents the premium translated
into euros at the average exchange rate. In Türkiye, current
year premium was converted at the closing rate in accor-
dance with hyperinflation accounting.
Result before taxes
In 2023 the segment Special Markets increased the result
before taxes by 66.9% to EUR 64.2 million (2022 adjusted:
EUR 38.5 million). This significant increase resulted primari-
ly from the already mentioned first-time consolidation of
Viennalife (formerly Aegon Emeklilik ve Hayat) in Türkiye.
Adjusted for the impairments of intangible assets in the
amount of EUR 9.8% the business operating result in the
segment Special Markets in 2023 was EUR 74.0 million
(2022 adjusted: EUR 41.5 million).
Net combined ratio
The net combined ratio remained largely at the previous year's
level and, in 2023, was 96.6% (2022 adjusted: 96.4%).
GROUP FUNCTIONS
The Group Functions reportable segment includes VIG
Holding (including the branches in Northern Europe), VIG
Re (including the branches in Germany and France), Wiener
Re, VIG Fund, corporate IT service providers, one asset
management company and intermediate holding companies.
VIG Holding primarily focuses on managerial tasks for the
Group. It also operates as the reinsurer for the Group as
well as in the international corporate business.
The reinsurance company VIG Re, founded in 2008 in
Prague, is a successful provider of reinsurance both for VIG
insurance companies and also for external partners. It has
established itself as an important company in the CEE region
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
21
and follows a conservative underwriting and investment
strategy. Standard & Poor's again confirmed the “A+” rating
of VIG Re with a stable outlook at the end of 2023.
FINANCIAL PERFORMANCE INDICATORS IN THE REPORTABLE
SEGMENT GROUP FUNCTIONS
Insurance service revenue
The insurance service revenue was EUR 1,652.2 million in
2023 and thus over the previous year's figures by 18.0%
(2022: EUR 1,399.7 million). In addition to the clear growth
in Group internal business, there was in particular an in-
crease from the development of new business in the active
reinsurance via VIG Re and an increase in the corporate and
large customer business in VIG Holding.
Result before taxes
A loss of EUR 25.8 million (2022 adjusted: loss of
EUR 87.2 million) was recorded in the segment Group
Functions in 2023. The better result is primarily due to the
clear improvement of the net combined ratio and the higher
total capital investment result.
Other mandatory disclosures
RESEARCH AND DEVELOPMENT
Although VIG companies do not perform any research ac-
tivities within the meaning of Section 243 (3) Z2 UGB, they
contribute their expertise to the development of insurance-
specific software models. VIG Holding and – for projects –
the VIG companies cooperate with the Digital Impact Labs
Leipzig, Plug and Play and VENPACE, a jointly with other
insurers financed start-up-initiative (Investment and Cor-
porate Building) based in Germany, in order to identify tech-
nological developments in the market more quickly and
internalise them if necessary. Viesure was also founded as
an internal “innovation hub” focusing mainly on Austria for
this purpose. Since December 2022 an investment has also
been made in the APEX Deep Tech Fund, that focuses on
tech-start-ups and supports VIG in identifying and re-
searching innovations at an early stage in order to use this
for the business model to the benefit of the customers – for
example by applications such as sensors and satellite tech-
nology for the early detection of potential forest fires. VIG
Group also carries out indirect research activities by its
participation both in ISTCube for strengthening basic re-
search in Austria and also APEIRON and invlOS to support
the research in the “biotech” field and the fight against
cancer and respiratory diseases.
HOLDINGS, PURCHASE AND SALE OF OWN SHARES
Detailed information regarding Section 243 (3) Z3 UGB can
be found in Note 25.10. Consolidated shareholders’ equity in
the notes to the consolidated financial statements starting on
page 177.
INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM
IN THE ACCOUNTING PROCESS
The preparation of the consolidated financial statements
includes all activities to present and discloses the Group's
assets, financial and operating results pursuant to the
statutory and/or IFRS regulations. The consolidated
financial statements include the balance sheet, the income
statement, the statement of comprehensive income, the
statement of changes in equity, the consolidated cash flow
statement, the segment reporting and the notes to the
consolidated financial statements, which contain a presen-
tation of the main accounting methodes and explanations.
The process of preparing the financial statements includes
the consolidation of all data from the accounting and the
upstream processes for the annual financial statements.
The internal control system (ICS) in the accounting process
of the Group is in accordance with the five elementary
components of the COSCO framework model (Committee
of Sponsoring Organisations of the Treadway Commission
for implementing internal controls. The objective of the ICS
in the accounting is to guarantee sufficient security by
implementation of controls, so that proper financial state-
ments are prepared despite the identified risks.
Control environment
The organisational structure is comprised of the local ac-
counting departments of the companies and the Group
Finance & Regulatory Reporting Department at the headquar-
22
Annual Financial Report 2023
ters of VIG Holding in Vienna. The accounting departments
of the VIG companies prepare both a financial statements
in accordance with local accounting regulations and an
IFRS consolidated report package and transmits these to
the Group Finance & Regulatory Reporting Department.
The IFRS consolidated report packages are prepared re
prepared in accordance with uniform Group accounting
policies. Standardised software with fixed reporting and
consolidation regulations is used for the preparation of the
consolidated financial statements. The data of the VIG
companies are predominantly imported by upload from
main ledger and subledgers in the consolidated software.
The consolidation of the data (capital consolidation, expendi-
tures and income consolidation, debt consolidation and any
elimination of inter-company profits) and the preparation of
the consolidated financial statements are prepared by the
Group Finance & Regulatory Reporting Department.
Risk assessment
In order to detect risks in the accounting process and sub-
sequently be able to eliminate them as much as possible,
documentation for the annual financial statements process
was developed. This includes the entire process of collect-
ing data by the employees of the VIG companies through
automated controls, manual controls and analysis in the
consolidated process to the final financial reports for pub-
lication.
Control measures
The appropriate IFRS accounting and valuation require-
ments applicable across the Group are summarised in the
Group accounting manual (IFRS Application) that is binding
for all companies included in the consolidated financial
statements. The objective is to guarantee unified imple-
mentation of IFRS across the Group. This manual is subject
to annual review and is and is updated or adapted to the
necessary statutory provisions. The manual, together with
additional information on the Group-wide reporting require-
ments is provided to the responsible persons in the local
accounting department before the reporting process begins.
In addition, we provide information across the Group in
timely manner about significant developments and changed
in requirements for the consolidated financial reporting.
As part of the control systems, the subsidiaries are required
to be compliant with accounting and valuation require-
ments that are applicable for the Group and are respon-
sible for the timely reporting of their accounting-related
processes.
The transmitted financial data undergo both automatic (in
the form of validation) and manual reviews (development
analysis and plausibility checks) by the Group Finance &
Regulatory Reporting Department of VIG Holding. The per-
formance of the control calculations and the agreement with
the Group internal transactions serves as an additional con-
trol in order to detect any differences and where necessary
be able to correct or eliminate them.
Additionally, the preparation of the income statement recon-
ciliation, the audit of the accuracy of individual parts of the
consolidated financial statements and the plausibility
checks of the entire consolidated financial statements
ensures that the presentation is complete and correct.
In the course of preparation of the financial statements,
there is intensive collaboration with the Planning and
Controlling Department especially in regard to development
analysis (e.g. target-actual comparison). Also, the data are
regularly submitted to the Managing Board for review and
control.
In order to guarantee correct and timely completion of the
financial statements at the deadline for publication, both the
quarterly and the annual financial statements are based on
strict deadlines about which the VIG companies are in-
formed at the end of the 3
rd
quarter at the latest for the
coming financial year. The department preparing the con-
solidated financial statements thus ensures in advance that
the VIG companies coordinate their processes to the dead-
line requirements and thus are able to transmit their data
timely.
Information and communication
Based on intensive collaboration with other company
departments, in particular Planning, Actuarial Services and
Asset Management (incl. Real Estate), there is an extensive
flow of information and communication.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
23
In addition to the financial report at the end of each financial
year, a half-year financial report was published pursuant to
the statutory provisions in accordance with IAS 34.
The Investor Relations Department is responsible for re-
porting to the shareholders of VIG Holding. This takes place
both in personal discussions and through the Company
website.There the annual and interim reports are made
available to the shareholders and other interested parties as
well as regularly updated information on key figures, share
price, financial calendar, ad-hoc news and other relevant IR
topics.
Monitoring
The Group Finance & Regulatory Reporting Department is
responsible for preparing the consolidated financial state-
ments. Regular monitoring of the internal control systems is
ensured by quarterly reporting to the Managing Board and
the Supervisory Board. The risks are continuously moni-
tored by Group-internal and inter-departmental controls
(e.g. Group Finance & Regulatory Reporting Department –
Planning and Controlling – Actuarial Services – Asset Man-
agement (incl. Real Estate)).
Internal Audit also conducts quality assurance. They
perform independent, objective audit measures by which,
in addition to the design and effectiveness of the internal
controls, the value and optimisation potential in the
operational processes is examined. Internal Audit helps the
organisation reach the objectives by which it evaluates, by
means of a systematic approach, the effectiveness of risk
management, control systems and the governance pro-
cesses including all relevant key functions with the company
and improves them by corresponding proposals.
In order to standardise the handling of significant risks
throughout the entire Group, there are Group-wide guide-
lines which also are an instrument of risk monitoring. The
local management is responsible for the implementation of
these guidelines in the individual companies.
In the context of the audit of the financial statements the
auditor takes into consideration the internal control systems
to the extent it is important for the preparation of the consoli-
dated financial statements. The auditor of the consolidated
financial statements also assess the functional adequacy of
the risk management pursuant to rule 83 of the Code of
Corporate Governance
CAPITAL, SHARE, VOTING AND CONTROL RIGHTS
AND ASSOCIATED AGREEMENTS
The share capital is EUR 132,887,468.20 It is divide
d into
128,000,000 no-par value ordinary bearer shares with
voting rights, are representing an equal portion of the share
capital. The number of shares issued remains unchanged
since the previous financial year. More detailed information
on the anticipatory resolutions and the authorisations of the
Managing Board from the Annual General Meeting pursuant
to Section 267 (3a) in connection with Section 243a (1) UGB
can be found in the notes to the consolidated financial
statements in Note 25.10. Consolidated shareholders' equity
starting on page 177.
CONSOLIDATED NON-FINANCIAL REPORT
VIG Holding is publishing a separate consolidated no
n-fi-
nancial report pursuant to Section 267a UGB for financial year
2023. This is available as a printed version and also online at
the VIG Insurance Group website at group.vig/sustainability.
CORPORATE GOVERNANCE
VIG Holding is committed to application and complian
ce
with the January 2023 version of the Austrian Code of
Corporate Governance and publishes the consolidated
Corporate Governance Report on the Company website at
group.vig/corporate-governance.
OUTSOURCING DISCLOSURES
Below the outsourcing disclosures pursuant to Section 156
(1) Z1 in connection with Section 109 VAG are explained in
detail:
Holding
VIG Holding decided to have IT services provided by Group-
internal and external service providers. In 2023 there was
24
Annual Financial Report 2023
regulatory permission for outsourcing contracts with
IBM
Austria (Internationale Büromaschinen Gesellschaft m.b.H.),
Group-internal IT-Systems provider twinformatics GmbH
and VIG IT-Digital Solutions GmbH (hereinafter “VIG IT-DS”),
each with registered office in Austria.
VIG IT-DS was founded by VIG Holding in order to an even
greater focus on the IT services to be provided Group-wide
and to have these provided by a company focused on it.
Since 1 January 2023, there are outsourcing contracts con-
cluded with VIT IT-DS and the final responsibility for all VIG
Solutions (SAP NewGL, IFRS 9/17, Readsoft and a few
smaller supporting applications) were transferred to VIG IT-DS
(with twinfomatics as a significant sub-service provider. The
twinformatics GmbH continues to assume the overall re-
sponsibility for all IT services (except the services transferred
to VIG IT-DS) for the Austrian VIG insurance companies and
for this concluded any necessary sub-outsourcing in compli-
ance with the statutory and regulatory provisions and in agree-
ment with the VIG insurance companies. The outsourcing
contract with IBM Austria ended on 28 February 2023.
In addition, VIG Holding has not outsourced any critical or
important functions or operating activities.
Gr
oup
Throughout the insurance companies of the Group, out-
sourcing took place in the following areas in particular:
• IT (in particular operation and maintenance of operating
modules, data centre operation, application
development services, data storage, support services)
• 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.
While critical or important functions or activities from the IT
area and claims handling were outsourced to primarily to
Group external service providers, governance functions
were outsourced in the VIG Insurance Group both to Group
internal and Group external service providers.
The notification and approval of the outsourcing of critical
or important functions or activities, to or by, the local super-
visory authorities was done by the relevant companies as
needed in compliance with the respective nationally applic-
able legal provisions.
Expected development and risks of the Group
SIGNIFICANT RISKS AND UNCERTAINTIES
The risk management is firmly anchored in the manageme
nt
culture of the companies and builds on a clearly defined
conservative risk policy, extensive risk expertise, a
developed risk toolkit and risk-based Management Board
decisions. The detailed risk report of the VIG Insurance
Group including the impact of climate change and the
associated climate risks can be found in the notes to the
consolidated financial statements in the section Risk
strategy and risk management starting on page 181.
For information regarding the financial instruments used for
investments reference is made to Note 2. Financial assets
and liabilities as well as other balance sheet items evaluated
according to IFRS 9 starting on page 87 and 25.4. Financial
instruments starting on page 163 in the consolidated
financial statements as well as to the Risk report starting on
page 181.
EXPECTED DEVELOPMENT – OUTLOOK FOR 2024
ECONOMIC OUTLOOK
For the Eurozone, the region of Central and Eastern E
urope
and Austria a further continuous decline in inflation and
interest rates is expected, accompanied by a gradual
improvement in external demand as well as in consumer
sentiment and the associated domestic demand. A sig-
nificant factor here is a further flattening of the inflation rate
in 2024.
A first slight growth impulse from industry is expected for
the Eurozone over the course of 2024, whereby the growth
in the 1
st
quarter of 2024 is still seen as rather week.
However, this recovery in the industry could be delayed by
Group management report | Consolidated financial statements | M
anagement report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
25
persistently high inventories in some sectors. Further
s
lightly positive impetus should come from growth in private
consumption in 2024. The significant driver for this could be
an expected positive real wage growth in a fundamentally
robust labour market for the first time in 2 years. Despite the
rather stagnating development in 2023 there was no increase
in the unemployment rate in the Eurozone apparently due
to a general labour shortage as a consequence of demo-
graphic change.
In sum, the analysts from Erste Group expect an acceler-
ation of real GDP growth to 0.7% year-on-year in 2024.
With a further solidification of this recovery in the 2
nd
half
of 2024 an increase of growth to 1.1% should be possible
for 2025.
The inflation in the Eurozone should decline to 2.5% in 2024.
Depending on the further development of energy prices in
particular, a more volatile inflation trend is possible over the
course of the year.
In Austria, the expected easing of inflationary pressure is
likely to have a positive impact on real incomes and thus as
well moderately on consumer demand. In addition, foreign
trade should gradually improve and support economic
growth in 2024. This means that a modest economic upturn
in real GDP growth of +0.6% is within reach for Austria in
2024. Despite the risk of certain volatility in energy prices,
Austrian inflation should continue to decline in 2024 as the
pressure from these prices decreases. Inflation in the
service sector, which is supported by wage increases, is
likely to keep core inflation at a high level for some time.
Thus, a clear decline of the harmonised consumer price
index (HCPI)-inflation to 3.5% is expected for 2024.
A gradual recovery is also expected in Central and Eastern
Europe in 2024 (the real GDP growth in the CEE8 should
accelerate to 2.4% year-on-year). Latest improvements in
sentiment indicators underpin this expectation. The Eco-
nomic Sentiment Indicator (ESI) continued to recover in the
course of 2023 and thus also supports the expectation of
improved private demand in 2024. Real wage growth,
declining inflation and a loosening of monetary policy, which
has already begun in the CEE region, should increase private
household expenditures. On the other hand, the high cost
of living, the continuing uncertainty and an increase in the
savings rate could slow down the speed of recovery.
Investment growth in the region should be supported by the
continued inflow of EU funds since the funds from the
Recovery and Resilience Fund cushion the change between
EU budget periods which would normally be associated
with lower investment activity. By the addition of the
REPowerEU money the available funds increase consider-
ably. A significant risk for the region’s expectation is a
weaker development in Germany as an important export
destination for the region.
In 2024 the speed of disinflation may significantly slow
down also in Central and Eastern Europe in view of the
declining effect of external factors (oil and food prices). It is
also expected that demand pressure will remain high due
to the tight labour market since the nominal wage growth
(including a double digit increase in the minimum wage) has
an inflationary effect. Overall inflation in most of the CEE
countries is expected to remain well above the inflation
target throughout 2024 with a regional average of 4.5%.
Year-on-year the Czech Republic with 2.4% comes closest
to this goal, Romania with 5.5% has the longest way to go.
OUTLOOK FOR THE INSURANCE GROUP
The Vienna Insurance Group with its approximately 29,
000
employees, as the market leader in Central and Eastern
Europe, is excellently positioned to take full advantages of
the opportunities in this region and the associated long-
term growth potential. Based on the trends and
developments in the insurance business it is relying on the
VIG 25 strategic programme that was developed together
with the CEOs of the VIG insurance companies for the
financial years up to 2025. In addition to creating sustain-
able value and reaching the sustainability objectives in the
six spheres of impact (asset management, underwriting,
operations, employees, customers and society) the expan-
sion of the leading market position in Central and Eastern
Europe is a core objective of the programme with the am-
bition to achieve at least the top 3 market position in each
CEE market, with the exception of Slovenia. A big step in
this direction was the successful take-over of the companies
26
Annual Financial Report 2023
in Poland, Romania, Türkiye and Hungary that were formerly
p
art of the Dutch Aegon-Group. With this VIG advanced to
number 1 in the Hungarian market.
The solvency ratio of VIG Group continues to be defined
within a range of 150% to 200% without taking into account
transitional measures for underwriting provisions used by
some individual Group companies.
In the context of the new dividend policy in which the previous
year's dividend is set as the minimum dividend for the next
year and anticipates a continuous increase depending on
the operational result development, the Managing Board
proposes to the relevant bodies an increase of the dividend
from EUR 1.30 to EUR 1.40 per share for the financial year
2023. This corresponds to an increase of 7.7% year-on-year.
The Vienna Insurance Group has, so far, been able to
manage the impacts of the challenging geopolitical and
economic conditions very well and continues to focus on
the success factors of continuity, stability and diversity. On
this basis, a favorable results development is also expected
for 2024 despite the volatile environment. VIG’s manage-
ment therefore has the ambition to achieve profit before
taxes within a range of EUR 825 and EUR 875 million for
the financial year 2024.
Vienna, 26 March 2024
The Managing Board:
Hartwig Löger
G
eneral Manager (CEO),
Chairman of the Managing Board
Peter Höfinger
Deputy General Manager,
Deputy Chairman of the Managing Board
Liane Hirner
CFRO, Member of
the Managing Board
Gerhard Lahner
C
OO, Member of
the Managing Board
Gábor Lehel
CIO, Member of
the Managing Board
Harald Riener
Member of
the Managing Board
27
Consolidated
financial
statements
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
VIG CONSOLIDATED FINANCIAL STATEMENTS IN
ACCORDANCE WITH INTERNATIONAL FINANCIAL
REPORTING STANDARDS (IFRS)
31/12/2023
Reporting period 01/01–31/12/2023
Reporting date for comparative
consolidated balance sheet data 31/12/2022
Reporting period for comparative
consolidated income statement data
Currency
01/01–31/12/2022
EUR
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
28
Annual Financial Report 2023
The numbers next to the individual items of the consolidated income statement, the consolidated statement of
comprehensive income, the consolidated statement of financial position and the consolidated shareholders’ equity refer to
detailed disclosures on the net assets, financial position and results of operations starting on page 60 or the notes on
accounting policies starting on page 147.
CONSOLIDATED INCOME STATEMENT

Consolidated income statement |  | Notes | 2023 | 2022 adjusted
i n EUR '000 |  |  |  |
Insurance service result |  | 1 | 1,208,099 | 1,138,80 2
Insurance service revenue – | issued business |  | 10,921,8 25 | 9,737,64 7
Insurance service expenses – | issued business |  | -9,265,29 9 | -8,525,82 6
Insurance service result – reinsurance held |  |  | -448,427 | -73,019
Total capital investment result |  |  | 284,255 | -12,21 4
Investment result |  | 9 | 1,893,068 | -809,6 96
Interest revenues using the effective interest rate method |  |  | 895,801 | 714,897
Realised gains and losses from financial assets measured at AC |  |  | 80 | -4,242
Impairment losses incl. reversal gains on financial instruments |  |  | -56,484 | -104,942
Other result from financial instruments |  |  | 1,053,67 1 | -1,415,40 9
Income and expenses from investment property |  | 4, 9 | 31,844 | 37,802
Insurance finance result |  | 1 | -1,657,1 23 | 741,393
Insurance finance result – issued business |  |  | -1,698,75 1 | 724,671
Insurance finance result – reinsurance held |  |  | 41,628 | 16,722
Result from associated consolidated companies |  | 6 | 16,466 | 18,287
Finance result |  |  | -98,49 2 | -86,14 6
Finance income |  |  | 834 | 9,123
Finance costs |  | 9 | -99,326 | -95,269
Other income and expenses |  | 15.3 | -5 17,872 | -406,6 77
Other income |  |  | 303,932 | 273,780
Other expenses |  |  | -82 1,804 | -680,457
Business operating result |  |  | 875,990 | 633,765
Impairments of goodwill |  | 3 | -75,639 | -26,361
Impairments of intangible assets |  | 13 | -27,662 | -21,707
Result before taxes |  |  | 772,689 | 585,697
Taxes |  | 11.1 | -196, 443 | -121,694
Result for the period |  |  | 576,246 | 464,003
Attributable to shareholders and other stakeholders of the parent company |  |  | 558,979 | 472,337
Non-controlling interests |  |  | 17,267 | -8,334
Earnings per share* (in EUR) |  | 18 | 4. 31 | 3.63

*The undiluted earnings per share equals the diluted earnings per share (in EUR).
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 STATEMENT OF COMPREHENSIVE INCOME

Consolidated statement of comprehensive income |  | Notes | 2023 | 2022 adjusted
in EUR '000 |  |  |  |
Result for the period |  |  | 576,246 | 464,003
Other comprehensive income (OCI) | 10.4 |  | 223,673 | -46,11 6
Items that will not be reclassifiable to profit or loss in subsequent periods |  |  | -71 0,830 | 2,663,70 7
Actuarial gains and losses from provisions for employee benefits |  |  | -4 5,117 | 224,428
Equity instruments designated measured at FVtOCI |  |  | 6,7 17 | -19,661
Result from the FV-valuation |  |  | 6,7 17 | -19,661
Unrealised gains and losses acc. to IFRS 17 | 1 |  | -865,508 | 3,292,98 7
Deferred taxes |  |  | 193,078 | -834,047
Items that will be reclassifiable to profit or loss in subsequent periods |  |  | 934,503 | -2,709,82 3
Exchange rate changes through equity |  |  | 58,101 | -15,101
Unrealised gains and losses from debt instruments measured at FVtOCI |  |  | 1,295,667 | -4,095,06 4
Unrealised gains and losses acc. to IFRS 17 | 1 |  | -167,188 | 566,726
Share of other reserves of associated consolidated companies |  |  | -11, 393 | -683
Deferred taxes |  |  | -24 0,684 | 834,299
Comprehensive income for the period |  |  | 799,919 | 417,887
Attributable to shareholders and other stakeholders of the parent company |  |  | 771,835 | 439,907
Non-controlling interests |  |  | 28,084 | -22,020

30
Annual Financial Report 2023
CONSOLIDATED BALANCE SHEET

Assets | Notes | 31/12/2023 | 31/12/2022 | 01/01/2022
|  |  | adjusted | adjusted
in EUR '000 |  |  |  |
Cash and cash equivalents |  | 1,558,107 | 2,315,21 9 | 2,727,40 7
Financial assets | 2 | 37,990, 239 | 35,813,9 85 | 40,397,0 19
Receivables | 7 | 495,672 | 490,686 | 349,932
Current tax assets |  | 235,718 | 175,859 | 135,053
Investments in associates | 6 | 185,622 | 287,961 | 276,913
Insurance contracts assets issued | 1 | 229,491 | 140,774 | 114,156
Reinsurance contracts assets held | 1 | 1,808,298 | 1,874,50 8 | 1,652,25 3
Investment property | 4 | 2,852,090 | 2,645,01 5 | 2,377,40 7
Owner-occupied property and equipment | 5 | 619,159 | 608,692 | 586,736
Other assets |  | 141, 575 | 120,549 | 100,305
Goodwill | 3 | 1,371,365 | 1,438,72 1 | 1,260,22 6
Intangible assets | 13 | 590,361 | 585,800 | 469,288
Deferred tax asset | 11.2 | 483,287 | 541,225 | 585,863
Right-of-use assets |  | 192,816 | 178,663 | 173,348
Total |  | 48,753,800 | 47,217,6 57 | 51,205,9 06
Liabilities and consolidated shareholders' equity | Notes | 31/12/2023 | 31/12/2022 | 01/01/2022
|  |  | adjusted | adjusted
in EUR '000 |  |  |  |
Liabilities and other payables | 7 | 1,112,675 | 949,828 | 739,193
Current tax liabilities |  | 157,016 | 115,614 | 243,382
Financial liabilities | 2, 8 | 2,396 ,321 | 2,912,61 4 | 2,624,44 3
Other liabilities |  | 78,957 | 78,381 | 60,316
Insurance contracts liabilities issued | 1 | 37,804, 092 | 36,370,3 74 | 40,950,3 02
Reinsurance contracts liabilities held | 1 | 24,181 | 37,742 | 64,585
Provisions | 12 | 748,620 | 669,879 | 857,882
Deferred tax liabilities | 11.2 | 402,208 | 369,352 | 357,498
Consolidated shareholders' equity | 10 | 6,029, 730 | 5,713,87 3 | 5,308,30 5
Attributable to shareholders and other stakeholders of the parent company |  | 5,892 ,277 | 5,472,59 2 | 5,197,03 2
Capital stock and capital reserves |  | 2,541,890 | 2,541,89 0 | 2,541,89 0
Retained earnings |  | 3,490,112 | 3,270,50 2 | 2,973,53 3
Other reserves | 10.4 | -139,72 5 | -339,800 | -318,391
Non-controlling interests |  | 137,4 53 | 241,281 | 111,273
Total |  | 48,753,800 | 47,217,6 57 | 51,205,9 06

Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
31
CONSOLIDATED STATEMENT OF CHANGE IN EQUITY

Development | Share | Capital reserves |  | Retained | Other reserves |  | Subtotal* | Non- | Total
| capital | Hybrid | Others | earnings | Currency | Others |  | controlling |
|  |  |  |  |  |  |  | interests |
|  | capital |  |  | reserve |  |  |  |
Notes |  | 10.3 |  | 10.1, 13 | 10.4 | 10.4 |  |  |
i n EUR '000 |  |  |  |  |  |  |  |  |
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
IFRS 17/9 effect of initial application |  |  |  | 216,151 | 9,990 | -507,326 | -281,185 | -8,458 | -289,643
As of 1 January 2022 adjusted | 1 32,887 | 300,000 | 2,109,00 3 | 2,976,82 6 | -185,8 29 | -135,8 55 | 5,197,03 2 | 111,273 | 5,308,30 5
Change in scope of consolidation / |  |  |  |  |  |  |  |  |
interest |  |  |  | -6,810 | 6,548 | 3,384 | 3,122 | 176,368 | 179,490
Reclassification from other comprehensive income to retained |  |  |  |  |  |  |  |  |
earnings |  |  |  | -4,382 |  | 4,382 | 0 | 0 | 0
Comprehensive income for the period |  |  |  | 472,337 | -1,083 | -31,34 7 | 439,907 | -22,02 0 | 417,887
Other comprehensive income |  |  |  |  |  |  |  |  |
excluding currency changes |  |  |  | 0 | 0 | -31,347 | -31,347 | 332 | -31,015
Exchange rate differences |  |  |  |  | -1,083 |  | -1,083 | -14,018 | -15,101
Result for the period |  |  |  | 472,337 |  |  | 472,337 | -8,334 | 464,003
Dividend payment |  |  |  | -167,469 |  |  | -167,469 | -24,340 | -191,809
As of 31 December 2022 | 132,887 | 300,000 | 2,109,00 3 | 3,270,50 2 | -180,3 64 | -159,4 36 | 5,472,59 2 | 241,281 | 5,713,87 3
As of 1 January 2023 | 132, 887 | 300,000 | 2,109,00 3 | 3,270,50 2 | -180,3 64 | -159,4 36 | 5,472,59 2 | 241,281 | 5,713,87 3
Change in scope of consolidation / |  |  |  |  |  |  |  |  |
interest |  |  |  | -165,501 | -14,242 | 1,549 | -178,194 | -122,242 | -300,436
Reclassification from other comprehensive income to retained |  |  |  |  |  |  |  |  |
earnings |  |  |  | 88 |  | -88 | 0 | 0 | 0
Comprehensive income for the period |  |  |  | 558,979 | 54,050 | 158,806 | 771,835 | 28,084 | 799,919
Other comprehensive income |  |  |  |  |  |  |  |  |
excluding currency changes |  |  |  | 0 | 0 | 158,806 | 158,806 | 6,766 | 165,572
IAS 29 effects |  |  |  |  | 42,422 |  | 42,422 | 1,219 | 43,641
Exchange rate differences |  |  |  |  | 11,628 |  | 11,628 | 2,832 | 14,460
Result for the period |  |  |  | 558,979 |  |  | 558,979 | 17,267 | 576,246
Dividend payment |  |  |  | -173,956 |  |  | -173,956 | -9,670 | -183,626
As of 31 December 2023 | 132,887 | 300,000 | 2,109,00 3 | 3,490,11 2 | -140,5 56 | 831 | 5,892,27 7 | 137,453 | 6,029,73 0

*The above subtotal equals the equity attributable to shareholders and other capital providers of the parent company.
32
Annual Financial Report 2023
CONSOLIDATED CASH FLOW STATEMENT

Change in cash and cash equivalents | 2023 | 2022 adjusted
in EUR '000 |  |
Result for the period | 576,246 | 464,003
Adjustments for: | -567,583 | 1,824,59 2
Amortisation, valuation and exchange rate differences of financial instruments | -902,090 | 1,475,01 4
Impairment of goodwill and intangible assets | 103,301 | 48,068
Result from disposal of subsidiaries | -1,751 | 8
Result from the disposals and depreciation of property | 110,085 | 84,500
Result from the disposal of financial assets incl. derivatives | 1,786 | 196,884
Share of profit of at equity accounted companies | -16,466 | -18,287
Dividends received included in the result for the period | -58,891 | -83,289
Income tax expenses | 196,443 | 121,694
Changes in: | -80,793 | -2,605,53 0
Financial assets incl. derivatives | -754,203 | -803,660
(Re-) insurance contracts | 618,307 | -1,957,24 0
Contract assets and liabilities (IFRS 15) | -5,668 | 132,573
Right-of-use assets and lease receivables and liabilities | 2 | 23,415
Receivables and liabilities (excl. leases) | 57,245 | 76,189
Intangible assets | 1,016 | 4,867
Property | -7,019 | -98,060
Other balance sheet items (other assets, Equipment (excl. property) and other liabilities) | -35,015 | -7,207
Provisions | 44,542 | 23,593
Other non-cash income and expenses* | 41,980 | 140,637
Paid/received income tax | -109,175 | -227,698
Cash flow from operating activities | -139,3 25 | -403,9 96
Received interest | 840,389 | 757,607
Received dividends | 58,891 | 83,289
Cash inflow from sale of subsidiaries | 0 | 90,995
Payments for the acquisition of subsidiaries | -15,311 | -407,433
Cash inflow from sale of financial instruments | 9,027 ,864 | 9,324,72 5
Payments for the acquisition of financial instruments | -9,034,762 | -9,434,48 2
Cash inflow from the sale of property | 10,928 | 4,809
Payments for the acquisition of property | -264,793 | -267,947
Cash inflow from the sale of intangible assets | 3,562 | 6,222
Payments for the acquisition of intangible assets | -136,987 | -135,378
Cash flow from investment activities | 48 9,781 | 22,407
Cash inflows from subordinated liabilities | 0 | 500,000
Payments from subordinated liabilities | -469,987 | -215,600
Cash inflows from financial liabilities excl. subordinated liabilities and lease liabilities | 532 | 68,007
Payments from financial liabilities excl. subordinated liabilities and lease liabilities | -39,008 | -76,830
Payments from lease liabilities | -33,805 | -33,217
Payments for the acquisition of non-controlling interests | -284,707 | -2,794
Paid dividends | -185,708 | -193,978
Paid interest | -88,050 | -78,057
Cash flow from financing activities | -1,100,7 33 | -32,46 9
Change in cash and cash equivalents | -750,2 77 | -414,0 58

*The non-cash income and expenses are primarily exchange rate changes.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
33

Development | 31/12/2023 | 31/12/2022
|  | adjusted
in EUR '000 |  |
Cash and cash equivalents at beginning of period* | 2,315,21 9 | 2,727,40 7
Change in cash and cash equivalents | -750,277 | -414,058
Changes in scope of consolidation | 8,643 | 4,765
Exchange rate differences on cash and cash equivalents | -15,478 | -2,895
Cash and cash equivalents at end of period* | 1,558,107 | 2,315,21 9

*The cash and cash equivalents at the beginning and end of the reporting period correspond to the item cash and cash equivalents in assets and include liquid money and daily maturing cash.
Notes on the adjustment of the previous year’s figures compared to the consolidated cash flow statement published in the
Group Annual Report 2022 can be found in the chapters Changes in accounting policies starting on page 51 and
Identification of errors starting on page 52.
34
Annual Financial Report 2023
GENERAL INFORMATION AND PRINCIPLES OF SIGNIFICANT ACCOUNTING POLICIES
GENERAL INFORMATION
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe (VIG Holding) is an Aktiengesellschaft (public limited company)
and the leading insurance group in the entire region of Central and Eastern Europe (CEE), with registered office in
Schottenring 30, 1010 Vienna (Austria). The Wiener Städtische Versicherungsverein, also with its registered office in Vienna,
is the majority shareholder of VIG Holding. It is also the parent company and therefore involves VIG Holding including its
subsidiaries in its consolidated financial statements. The insurance companies and pension funds of VIG Insurance Group
offer insurance services – life and health, as well as property and casualty insurance – to around 32 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 commercial law provisions of § 245a (1) of the Austrian
Commercial Code (Unternehmensgesetzbuch – UGB).
Amounts were commercially rounded and, where not indicated otherwise, are shown in thousands of euros (EUR ’000).
Calculations, however, are done using exact amounts, which may lead to rounding differences.
Going concern
The present consolidated financial statements were prepared on a going concern basis in accordance with IAS 1.25 and .26.
The Managing Board made this assessment primarily based on the solid capital resources, positive result before taxes,
risk-averse capital investment and the conservative reinsurance strategy.
Estimates and discretionary decisions
Consolidated financial statements prepared in accordance with the IFRS require that the Managing Board make
discretionary assessments and specify assumptions regarding future developments (estimates). These estimates and
discretionary decisions could have a material effect on the recognition and value of assets and liabilities, the disclosure of
other obligations and the reporting of income and expenses.
The book values of the items at the end of the reporting period are shown in the consolidated balance sheet on page 30
and in the respective Notes. Sensitivity analyses of assets and liabilities are also presented in the Notes related to the items.
Details regarding the areas with a higher degree of judgement as well as greater complexity, or areas where assumptions
and estimates are of critical importance for the consolidated financial statements can be found in Note 24. Material
estimates and discretionary decisions beginning on page 141.
Accounting policies
The significant accounting policies used in the preparation of the consolidated financial statements are presented in Note
25. Accounting policies starting on page 147. Unless otherwise stated under chapter “Initial application of standards”, the
policies described were applied consistently during the reporting periods presented in these financial statements.
Notes
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
35
Balance sheet items Measurement principle
Insurance contracts issued
Premium Allocation Approach (PAA),
Variable Fee Approach (VFA),
General Measurement Model (GMM)
Reinsurance contracts held
Premium Allocation Approach (PAA),
General Measurement Model (GMM)
Financial instruments
Measured at AC
Measured at FVtOCI (with and without recycling)
Measured at FVtPL
Goodwill Amortised cost less accumulated impairment losses
Intangible assets Amortised cost and production cost
Investments in associates Net present value of the investment's equity or the lower recoverable amount
Investment property Amortised cost and production cost
Owner-occupied property and equipment Amortised cost and production cost
Receivables and Liabilities At amortised cost
Taxes
Income taxes
In the amount in which a receivable from/liability to the tax authorities is expected, based on the tax
rates applicable on the reporting date or in the near future
Tax advisory fees Undiscounted income taxes recoverable in future periods based on tax rates at the settlement date
Provisions
Provisions for pensions and similar obligations Actuarial valuation using the projected unit credit method
Provisions for other employee benefits Actuarial valuation using the projected unit credit method
Miscellaneous provisions Present value of the future settlement amount
Lease At amortised cost
Other assets and liabilities At amortised cost
For information on the accounting treatment of (re-) insurance contracts, please refer particularly to the explanatory notes
in the following chapter “Initial application of standards”.
Initial application of standards
Unless otherwise stated, the standards that are to be applied for the first time, if relevant, have no or no material impact on
the present consolidated financial statements.
Standards applicable that are used for the first
time in the Group Annual Report
IFRS 9 Financial instruments
Amendments to IFRS 9 Prepayment features with negative compensation
IFRS 17 Insurance contracts
Amendments to IFRS 17 Initial Application of IFRS 9 and IFRS 17 – Comparative Information
Amendments to IAS 1 and IFRS Practice Statement 2 Definition of materiality in connection with accounting policies
Amendments to IAS 8 Definition of accounting estimates and distinguishing them from changes in accounting policies
Amendments to IAS 12 Deferred taxes related to assets and liabilities arising from a single transaction
Amendments to IAS 12 Temporary exception from the recognition and disclosure of deferred taxes arising from global minimum taxation
AMENDMENTS TO IAS 1 AND IFRS PRACTICE STATEMENT 2
With regard to the application of these changes, please refer to the notes in the chapter 24.7. Materiality of Notes and the
associated accounting policies starting on page 147.
36
Annual Financial Report 2023
AMENDMENTS TO IAS 12
EU member states have agreed on the Europe-wide implementation of the Global Anti-Base Erosion (GloBE) rules (Pillar
Two) in the international tax reforms set out by the OECD. The EU directive provides that profits from multinational groups
of companies or large domestic groups with consolidated sales of at least EUR 750 million will in future be subject to a tax
rate of at least 15%. The directive must be incorporated into the member states’ national legislation by no later than the
end of 2023. The effects of global minimum taxation on the Group for 2024 and thereafter cannot be projected with any
certainty at present. The VIG Insurance Group is currently working on an implementation project for global minimum taxation.
In order to represent Pillar Two of the tax reform in the IFRS financial statements, technical guidance on the amendments
to IAS 12 was published by the IASB on 23 May 2023. Based on this, an exemption from the recognition of deferred tax
assets and liabilities in accordance with the requirements of global minimum taxation shall be regulated until further notice.
In accordance with the directive, potential effects on deferred taxes in connection with global minimum taxation are not
taken into account within the VIG Insurance Group.
Due to the global minimum taxation provisions, the fully consolidated companies of the VIG Group would incur an immaterial
amount of additional taxes on the basis of the results for the year 2023.
Beginning on 1 January 2023, it is mandatory to recognise deferred taxes on transactions from which temporary deductible
differences to be taxed in the same amount arise upon initial recognition. The VIG Insurance Group exercised the option of
earlier application in 2019.
IFRS 9 FINANCIAL INSTRUMENTS AND IFRS 17 INSURANCE CONTRACTS
VIG Insurance Group applied IFRS 9 and IFRS 17 for the first time from 1 January 2023. The first-time application leads to
significant changes and therefore has a material impact on the consolidated financial statements.
The shorthand phrases used for the text and the tables in connection with IFRS 9 are set out below:
Short description Long description
Measured at AC Measured at Amortised Costs
Measured at FVtOCI Measured at Fair Value through Other Comprehensive Income
Measured at FVtPL Measured at Fair Value through Profit and Loss
Designated measured at FVtOCI Designated measured at Fair Value through Other Comprehensive Income
Designated measured at FVtPL Designated measured at Fair Value through Profit and Loss
ECL Expected Credit Loss
FV Fair Value
SPPI Solely Payments of Principal and Interest
Mandatorily measured at FVtOCI Mandatorily measured at Fair Value through Other Comprehensive Income
Mandatorily measured at FVtPL Mandatorily measured at Fair Value through Profit and Loss
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
37
The shorthand phrases in connection with IFRS 17 have been used as follows for the text and the tables:
Short description Long description
AIC Assets for Incurred Claims
ARC Assets for Remaining Coverage
CSM Contractual Service Margin
FCF Fulfilment Cash Flows
FRA Full Retrospective Approach
FVA Fair Value Approach
GMM General Measurement Model
LIC Liability for Incurred Claims
LoReCo Loss Recovery Component
LRC Liability for Remaining Coverage
PAA Premium Allocation Approach
PVFCF Present Value of Future Cash Flows
RA Risk Adjustment
VFA Variable Fee Approach
Comparison of consolidated opening balance sheets
Assets
Type of adjustments / reclassifications
31/12/2021
IFRS 17
IFRS 9
Other*
01/01/2022
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 acc. to IAS 39 31,682,289
-1,557,445
-30,032,823
-92,021
0
Financial assets acc. to IFRS 9
8,346,278
31,712,075
338,666
40,397,019
Financial instruments 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 276,913
276,913
Insurance contracts 1,564,605
201,804
1,766,409
Reinsurers' share in underwriting provisions acc. to IFRS 4 1,564,605
-1,564,605
0
Insurance contracts assets issued acc. to IFRS 17
114,156
114,156
Reinsurance contracts assets held acc. to IFRS 17
1,652,253
1,652,253
Investment property 2,378,285
-878
2,377,407
Owner-occupied property and equipment 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 asset 311,447
274,416
585,863
Right-of-use assets 173,348
173,348
Total assets 52,178,157
-2,924,922
1,675,180
277,491
51,205,906
*The main adjustments are discussed in the chapter “Changes in accounting policies” starting on page 51 of these consolidated financial statements.
38
Annual Financial Report 2023
Liabilities and consolidated shareholders' equity
Type of adjustments / reclassifications
31/12/2021
IFRS 17
IFRS 9
Other*
01/01/2022
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
279,867
41,014,887
Underwriting provisions acc. to IFRS 4 32,546,227
-32,546,227
0
Underwriting provisions for unit- and index-linked life insurance acc. to IFRS 4 8,188,793
-8,188,793
0
Insurance contracts liabilities issued acc. to IFRS 17
40,950,302
40,950,302
Reinsurance contracts liabilities held acc. to IFRS 17
64,585
64,585
Provisions 890,189
-32,307
857,882
Deferred tax liabilities 218,884
138,614
357,498
Consolidated shareholders' equity 5,597,948
-2,099,982
1,674,537
135,802
5,308,305
Total assets 52,178,157
-2,924,922
1,675,180
277,491
51,205,906
*The main adjustments are discussed in the chapter “Changes in accounting policies” starting on page 51 of these consolidated financial statements.
Comparison of consolidated cash flow statements
2022
Adjusted
1
As published within the
Group Report
Amendment due to
error identification
2
in
EUR
'000
Result for the period 464,003
464,291
464,291
Cash flow from operating activities -403,996
624,982
304,759
Cash flow from investment activities 22,407
-1,001,356
-681,133
Cash flow from financing activities -32,469
-24,050
-24,050
Change in cash and cash equivalents -414,058
-400,424
-400,424
1
For additional information on the initial application of IFRS 9 and IFRS 17, please refer to the chapter “Changes in accounting policies” starting on page 51.
2
Information about error identification can be found from page 52 onwards.
Cash and cash equivalents
Cash and cash equivalents in the amount of EUR 2,456,333,000 as of 31 December 2021 were reported in the Group
Annual Report 2022. Due to the modified definition, the holding was adjusted on 1 January 2022 and now amounts to
EUR 2,727,407,000. The reason for the modified definition is presented on page 51.
Comparison of earnings per share
2022
Adjusted
1
As published within the
Group Report
Result for the period EUR '000 464,003
464,291
Non-controlling interests in net result for the period EUR '000 8,334
1,650
Result for the period less non-controlling interests EUR '000 472,337
465,941
Interest expenses for the hybrid capital EUR '000 7,469
7,469
Attributable result EUR '000 464,868
458,472
Number of shares at closing date units 128,000,000
128,000,000
Earnings per share
2
EUR 3.63
3.58
1
For additional information on the initial application of IFRS 9 and IFRS 17, please refer to the chapter “Changes in accounting policies” starting on page 51.
2
The undiluted earnings per share equals the diluted earnings per share (in EUR).
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
39
IFRS 9 FINANCIAL INSTRUMENTS
General information
As part of the initial application, the presentation of the financial instruments of the unit-linked and index-linked life insurance
was harmonised with the balance sheet structure of the underwriting liabilities. Financial instruments for unit-linked and
index-linked life insurance provide cover for unit-linked and index-linked life insurance technical provisions. The endowment
and surrender payments for these policies are linked to the performance of the associated financial assets. The income
from these is also credited in full to the policyholders. As a result, policyholders bear the risk associated with the per-
formance of these investments. According to IFRS 17, these life insurance products will no longer be shown separately on
the liabilities side, which is why this presentation approach is also consistently implemented for the assets side of the
consolidated balance sheet.
This means that the corresponding financial instruments are shown in the consolidated balance sheet as part of the assets
measured at AC or FVtPL. In addition to that, receivables and liabilities of these types of insurance products were regrouped
to existing positions (e.g. other receivables, other liabilities, receivables from other fees). The classification of the unit- and
index-linked life insurance’s financial assets is basically measured at FVtPL, except for cash and cash equivalents and term
deposits. These financial assets are measured at AC.
Primarily, and in accordance with the FVtOCI option used for IFRS 17 liabilities, other debt assets are measured at FVtOCI.
By taking the FVtOCI option, VIG endeavours to keep the consequences of an asset-liability mismatch to a minimum. The
following criteria were also considered:
• Business models that are not compatible with the FVtOCI category:
– An example would represent the loan portfolio, which is due to its illiquidity held to maturity. This portfolio fulfils both
the SPPI criterion as well as the definition of the “Held to Collect” business model (hold strategy) and is therefore
classified as measured at AC.
• Debt instruments that are classified based on local GAAP as “Held to Maturity” are assumed to fulfil both the SPPI
criterion as well as the IFRS 9 hold strategy and are therefore classified as measured at AC.
• Debt instruments for which the test on contractual cash flows (Solely Payments of Principal and Interest Test (SPPI
test)) shows that the SPPI criterion is not met are measured at FVtPL. This includes mutual funds, for example.
The approach set out above may differ if management comes to the justified conclusion that in accordance with IFRS 9
another classification approach is more appropriate for the underlying transaction.
The decision on classification of equity instruments, including participations, considers the expectations about the future
price returns, the possible impacts on the income statement, and the business model. Measurement at FVtOCI is not
applicable for trading portfolios. The classification of equity instruments can be done on an instrument-by-instrument basis.
The classification is irrevocable, and the decision is taken by each Group company itself. The classification is based on the
investment strategy which correlates to the respective insurance portfolio risk.
The differences resulting from the application of IFRS 9 compared to IAS 39 have been recognised in retained earnings.
40
Annual Financial Report 2023
Changes to classification and measurement
To determine the classification and measurement category, IFRS 9 requires all financial assets to be assessed based on a
combination of the entity’s business model for managing the assets and the respective instrument’s contractual cash flow
characteristics. In contrast to that, the classification of financial liabilities does not follow this approach and does not differ
significantly from that under IAS 39.
When IFRS 9 is applied, the previous classification for “Financial instruments available for sale” is no longer allowed. In this
category, fair value changes were recognised directly in equity in other comprehensive income (reserves for unrealised gains
and losses). In the case of disposals, unrealised gains and losses were reclassified to profit and loss (Recycling). IFRS 9
makes a distinction between equity and debt instruments in the fair value measurement. Equity instruments held for trading
are classified through measurement at FVtPL. For equity instruments that are not held for trading, the irrevocable FVtOCI
option (designated measured at FVtOCI) can be used upon initial application. For these financial instruments, the unrealised
gains and losses recognised under other comprehensive income (OCI) will no longer be transferred to the result of the
period, but must instead be transferred to the retained earnings as part of shareholders’ equity (no recycling allowed). In
the case of debt instruments such as bonds or loans, similar provisions such as those under IAS 39 “Financial instruments
available for sale” apply.
VIG uses a central subledger (tool) for the measurement of financial instruments. The classification of financial assets based
on the SPPI criteria has been almost entirely automated. Most investments relevant to IFRS 9 are currently managed in this
tool. This makes it possible Group-wide to consistently apply IFRS 9, including the calculation of ECL. The implementation
of IFRS 9 is governed in the VIG Group Guidelines, which are used for uniform implementation of IFRS 9. Under IFRS 9,
financial assets that have been identified as “SPPI fail” (SPPI criterion not met) must be classified as measured at FVtPL.
Illiquid portfolios for which the hold strategy is used are normally classified as measured at AC. This applies to loans in
particular. Financial assets that both satisfy the SPPI criterion (SPPI pass) and are subject to the “hold to collect and sell”
business model are to be 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.
The remaining financial assets (e.g. debt instruments) are mainly categorised to measured at FVtOCI under IFRS 9.
Changes to the impairment calculation
The adoption of IFRS 9 has fundamentally changed the accounting for impairment losses for debt instruments measured
at FVtOCI or at AC by replacing IAS 39’s incurred loss with a forward-looking expected loss approach.
An expected credit loss allowance has to be recognised for all debt instruments that are not measured at FVtPL. For debt
instruments without a significant increase in the credit risk since acquisition, the ECL is based on the portion of lifetime
ECLs that would result from default events on a financial instrument that are possible within 12 months after the reporting
date. However, when there has been a significant increase in credit risk since issuance or purchase of the assets, the
allowance is based on the full lifetime ECL.
The debt instruments measured at FVtOCI or at AC are primarily made up of investment-grade bonds, so have a low credit
risk. Under IFRS 9, such instruments can be measured on a 12-month ECL basis.
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41
VIG’s definition of default covers at least two dimensions, namely one rating-based dimension (C, D) as well as one days
past due (90 days past due) based criterion. However, in certain cases, financial assets can be considered to be in default
when one or more events that have a detrimental impact on the estimated future cash flows of that financial asset have
occurred. Such events are especially the war in Ukraine and the resulting sanctions imposed on numerous Russian issuers
in the financial years 2022 and 2023.
The adoption of the ECL requirements and the associated new system resulted in an increase in the credit loss allowances
related to debt instruments. With the initial application of IFRS 9, these effects were recognised under shareholders’ equity
in retained earnings, taking into consideration the associated deferred taxes.
The simplified approach is used for trade receivables and receivables from leases in accordance with IFRS 9.5.5.15. As a
result, country-specific loss rates have been calculated based on historical probabilities of default and future parameters
for determining the corresponding risk provisions. Furthermore, receivables whose contractually agreed payments are 90
days past due are classified as being in default.
Changes to disclosures required under IFRS 7
To reflect the differences between IFRS 9 and IAS 39, IFRS 7 Financial Instruments: Disclosures has also been amended.
VIG applied the amended disclosure requirements, together with IFRS 9, for the year beginning 1 January 2023. The
changes include transition disclosures as shown in the Transition section below.
Reconciliations for the ECL value adjustments of the IAS 39 closing balance sheet to the IFRS 9 opening balance sheet are
presented in the Notes starting on page 44.
Transition
VIG has applied the Classification Overlay Approach for classifying financial instruments, and publishes the comparative
information as if the IFRS 9 regulations had already been applied in the first comparative period 2022. There is no obligation
to apply the impairment provisions when taking this approach, however VIG has decided to apply this approach already in
the comparison period 2022, too. Any difference between the previous carrying amount of a financial asset and the amount
resulting from the application of the approach have been recognised in equity under retained earnings.
As a rule, financial assets according to IFRS 9 are to be sub-divided into debt instruments and equity instruments. The
following table shows the classification of debt 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 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
*Expected credit loss (ECL) must be calculated for SPPI-pass debt instruments.
42
Annual Financial Report 2023
VIG has chosen to irrevocably measure strategically held equity instruments as measured at FVtOCI. Any instruments intended
for non-strategic purposes are measured at FVtPL.
Equity instrumensts
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
The initial application of IFRS 9 results in changes to IFRS 7 – Financial instruments: Disclosures, as a result of which VIG has
adjusted the comparative balances as of 1 January 2022. With regard to additional adjustments, please refer to the chapter
“Changes in accounting policies” starting on page 51.
Categories and reconciliation book values 31/12/2021
Adjustments 01/01/2022
IAS 39-Book
value
Reclassifi-
cation IFRS 17
Reclassifi-
cation
Valuation
IFRS 9-Book
value
i
n
EUR
'000
Measured at Amortised Cost 8,605,672
-105,507
-3,027,957
-25,704
5,446,504
Additions
From loans and other investments as well as financial assets held to
maturity - IFRS 9: Risk provision recognition
-25,704
-25,704
From cash and cash equivalents – IAS 39: Financial instruments for unit-
and index-linked life insurance
271,074
271,074
Disposals
To bonds measured at FVtOCI – IAS 39: Financial assets held to maturity
-1,762,412
-1,762,412
To bonds measured at FVtOCI – IAS 39: Loans and other investments
-1,464,385
-1,464,385
To loans mandatorily measured at FVtPL – IAS 39: Loans and other
investments
-3,500
-3,500
To policy loans under IFRS 17 insurance contracts – IAS 39: Loans and
other investments
-17,027
-17,027
To deposits retained under IFRS 17 insurance contracts – IAS 39: Loans
and other investments
-88,480
-88,480
Within assets measured at AC
-68,734
-68,734
Measured at FVtOCI 25,849,069
0
-1,248,763
56,466
24,656,772
Mandatorily measured at FVtOCI 25,078,136
0
-720,326
49,666
24,407,476
Additions
From bonds held to maturity
1,762,412
49,666
1,812,078
From loans and other investments
1,464,385
1,464,385
From bonds recognised at fair value through profit and loss*
40,804
40,804
Disposals
To bonds designated measured at FVtPL – IAS 39: Financial assets
available for sale
-294,032
-294,032
To bonds mandatorily measured at FVtPL – IAS 39: Financial assets
available for sale
-920,971
-920,971
To funds mandatorily measured at FVtPL – IAS 39: Financial assets
available for sale
-2,772,924
-2,772,924
Designated measured at FVtOCI 770,933
0
-528,437
6,800
249,296
Additions
From bonds recognised at fair value through profit and loss*
388
102
490
Disposals
To shares mandatorily measured at FVtPL – IAS 39: Financial assets
available for sale
-455,448
-455,448
To shares in participating companies mandatorily measured at FVtPL –
IAS 39: Financial assets available for sale
-45,299
-45,299
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Categories and reconciliation book values 31/12/2021
Adjustments 01/01/2022
IAS 39-Book
value
Reclassifi-
cation IFRS 17
Reclassifi-
cation
Valuation
IFRS 9-Book
value
in EUR '000
To shares in affiliated non-consolidated companies mandatorily
measured at FVtPL – IAS 39: Financial assets available for sale
-28,078
6,698
-21,380
Measured at FVtPL 8,772,540
-10,589
4,300,395
216,330
13,278,676
Mandatorily measured at FVtPL 8,645,446
-10,589
4,006,363
164,093
12,805,313
Additions
From loans and other investments
3,500
251
3,751
From bonds available for sale
920,971
163,617
1,084,588
From shares available for sale
455,448
455,448
From shares in participating companies available for sale
45,299
91
45,390
From shares in affiliated non-consolidated companies available for sale
28,078
1,211
29,289
From funds available for sale
2,772,924
-3,192
2,769,732
From derivatives recognised at fair value through profit and loss*
2,115
2,115
Disposals
To bonds measured at FVtOCI – IAS 39: Financial assets recognised at
fair value through profit and loss*
-40,804
-40,804
To cash and cash equivalents measured at AC - IAS 39: Financial
instruments for unit- and index-linked life insurance
-179,053
-179,053
To deposits retained under IFRS 17 insurance contracts – IAS 39:
Financial instruments for unit- and index-linked life insurance
-10,589
-10,589
Designated measured at FVtPL 127,094
0
294,032
52,237
473,363
Additions
From bonds available for sale
294,032
52,237
346,269
Total financial assets acc. to IFRS 9 43,227,281
-116,096
23,675
247,092
43,381,952
*Including held for trading
Categories and reconciliation book values 31/12/2021
Adjustments 01/01/2022
IAS 39-Book
value
Re-
classification
IFRS 17
Re-
classification
Valuation
IFRS 9-Book
value
in
EUR
'000
Measured at fair value 2,705
0
643
524
3,872
Financial liabilities mandatorily measured at FVtPL 2,705
524
3,229
Financial liabilities designated at FVtPL
643
643
At amortised cost 2,939,987
0
219,046
0
3,159,033
Financial liabilities 2,620,347
222
2,620,569
IFRS 9 measured liabilities 319,640
218,824
538,464
Total 2,942,692
0
219,689
524
3,162,905
44
Annual Financial Report 2023
The following table shows the reconciliation of the consolidated opening loan loss provision allowances under IAS 39 to the
ECL allowances under IFRS 9.
Reconciliation impairment provision IAS 39-Book
value as of
31/12/2021
Adjustments
IFRS 9-Book value
as of 01/01/2022
in
EUR
'000
Financial assets measured at FV 12,968
48,164
61,132
Financial assets recognised at fair value through profit and loss
*
0
2
2
Reclassification to category: Financial assets measured at FVtOCI 0
2
2
Financial assets available for sale 12,968
48,162
61,130
Reclassification to category: Financial assets measured at FVtOCI 12,968
48,162
61,130
Financial assets measured at AC (loans and receivables, held to maturity, AC) 15,508
10,196
25,704
Reclassification to category: Financial assets measured at AC 15,508
10,196
25,704
*Including held for trading
The following compares the categories of financial instruments under IAS 39 and under IFRS 9 on the basis of their carrying
amounts: The stated book values in the category of financial instruments measured at AC differ according to the two
valuation standards because a risk provision must be considered at book value according to IFRS 9. It should also be noted
that the Group has switched to “dirty value” accounting under IFRS 9. In those categories in which financial instruments
are measured at fair value, the difference in the book values is likewise attributable to dirty value accounting. Further infor-
mation on the changed accounting method can be found starting on page 51.
Categories and book values IAS 39-category IFRS 9-category IAS 39-Book value as of
31/12/2021
IFRS 9-Book value as of
01/01/2022
in
EUR
'000
Cash and cash equivalents
2,635,386
2,727,407
Cash and cash equivalents Cash and cash equivalents 2,456,333
2,558,994
Financial instruments for
unit- and index-linked life
insurance
Cash and cash equivalents
179,053
168,413
Financial assets 40,017,977
40,397,019
Loans
2,156,064
691,930
Loans Measured at AC 2,152,564
688,179
Loans Measured at FVtPL 3,500
3,751
Bonds
25,926,034
28,260,837
Financial assets held to
maturity
Measured at AC
529,794
1,063,824
Financial assets held to
maturity
Measured at FVtOCI
2,027,926
2,137,447
Financial assets available for
sale
Measured at FVtOCI
21,090,210
22,229,224
Financial assets available for
sale
Measured at FVtPL
1,215,003
1,449,641
Financial instruments for
unit- and index-linked life
insurance
Measured at FVtPL
929,771
1,247,371
Financial assets recognised
at fair value through profit
and loss*
Measured at FVtOCI
40,804
40,804
Financial assets recognised
at fair value through profit
and loss*
Measured at FVtPL
92,526
92,526
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Categories and book values IAS 39-category IFRS 9-category IAS 39-Book value as of
31/12/2021
IFRS 9-Book value as of
01/01/2022
in
EUR
'000
Term deposits Measured at AC Measured at AC 872,227
709,568
Funds
10,255,045
9,831,028
Financial assets available for
sale
Measured at FVtPL
2,772,923
2,769,732
Financial instruments for
unit- and index-linked life
insurance
Measured at FVtPL
7,404,978
6,984,152
Financial assets recognised
at fair value through profit
and loss*
Measured at FVtPL
77,144
77,144
Derivatives
Financial assets recognised
at fair value through profit
and loss*
Measured at FVtPL
30,066
32,181
Shares and shares in companies 778,541
871,475
Shares
499,025
583,857
Financial assets available for
sale
Measured at FVtOCI
35,968
35,968
Financial assets available for
sale
Measured at FVtPL
455,449
541,221
Financial instruments for
unit- and index-linked life
insurance
Measured at FVtPL
940
0
Financial assets recognised
at fair value through profit
and loss*
Measured at FVtOCI
388
388
Financial assets recognised
at fair value through profit
and loss*
Measured at FVtPL
6,280
6,280
Shares in participating companies
96,163
96,356
Financial assets available for
sale
Measured at FVtOCI
50,864
50,966
Financial assets available for
sale
Measured at FVtPL
45,299
45,390
Shares in affiliated non-consolidated
companies
183,353
191,262
Financial assets available for
sale
Measured at FVtOCI
155,275
161,973
Financial assets available for
sale
Measured at FVtPL
28,078
29,289
IFRS 9 measured receivables
Loans, receivables and
measured at AC
Measured at AC
574,276
257,526
Total financial assets acc. to IFRS 9 43,227,639
43,381,952
Measured at AC 2,939,987
3,159,033
Subordinated liabilities Measured at AC Measured at AC 1,461,286
1,493,599
Liabilities to banks Measured at AC Measured at AC 351,087
351,087
Liabilities from financing activities Measured at AC Measured at AC 594,614
594,836
Lease liabilities Measured at AC Measured at AC 181,048
181,048
IFRS 9 measured liabilities Measured at AC Measured at AC 351,952
538,463
Measured at FVtPL 2,705
3,872
Liabilities for derivatives Measured at fair value Measured at FVtPL 2,705
3,229
Liabilities designated measured at FVtPL Measured at fair value Measured at FVtPL
643
Total financial liabilities acc. to IFRS 9 2,942,692
3,162,905
*Including held for trading
In the case of debt instruments that have thus far been designated as measured at fair value through profit and loss under
IAS 39 (IAS 39 category: financial instruments measured at fair value through profit and loss), a check must be performed
46
Annual Financial Report 2023
as to whether the criterion for recognition as measured at AC or at FVtOCI has been met. If this has not been met and, due
to the business model, these instruments were managed on a fair value basis, they are categorised as FVtPL on a
mandatory basis.
Reconciliation
Designated measured at FVtPL
Mandatorily measured
at FVtOCI
Designated measured
at FVtOCI
Mandatorily measured
at FVtPL
Designated measured
at FVtPL
in
EUR
'000
Financial assets 40,804
388
206,017
Bonds 40,804
92,526
Funds
77,144
Derivatives
30,066
Shares
388
6,281
Financial liabilities
3,229
643
Liabilities for derivatives
3,229
Liabilities designated measured at FVtPL
643
Material estimates and discretionary decisions
The material estimates and discretionary decisions made in connection with the financial instruments are presented in Note 24.2.
Impairment losses on financial assets starting on page 145.
IFRS 17 INSURANCE CONTRACTS
General information
The IASB issued the accounting standard for insurance contracts (IFRS 17) on 25 June 2020. As a result, IFRS 17
supersedes the previous standard, IFRS 4, in the EU for annual periods beginning on or after 1 January 2023. IFRS 4 did
not prescribe the measurement of insurance contracts and instead allowed companies to largely use local accounting
requirements for the measurement of insurance contracts. VIG applied that accounting choice. The IASB imposes uniform
accounting policies for insurance contracts for the first time in IFRS 17.
VIG has restated comparative information for 2022 applying the transitional provisions in Appendix C to IFRS 17. The nature
of the changes in accounting policies can be summarised, as follows:
Changes to classification and measurement
The adoption of IFRS 17 did not change the principal classification of insurance contracts. This standard establishes specific
principles for the recognition and measurement of insurance contracts issued and reinsurance contracts.
The steps for determining whether a contract qualifies as an IFRS 17 insurance contract are:
• Identification of whether the contract includes a significant insurance risk of another party (policyholder). Furthermore, a
check is performed as to whether an obligation to compensate the policyholder is included if a determined, uncertain,
future insured event disadvantages the policyholder;
• Specified embedded derivatives, distinct investment components and distinct goods or services need to be separated
from insurance contracts. These specified components have to be accounted in accordance with other standards,
such as IFRS 9 or IFRS 15.
The default measurement approach for contracts in scope of IFRS 17 is the general measurement model (GMM). To
measure a group of insurance contracts with this approach, the following principles should be observed:
• A risk-adjusted present value of the future fulfilment cash flows will be recognised. Future cash flows take into account
all available information that is consistent with observable market information.
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• Additionally, an amount representing the unearned profit at inception (Contractual Service Margin (CSM)) in the group of
insurance contracts is recognised.
• The profit from a group of insurance contracts is recognised for the period of time for which insurance services are
made. If a group of contracts is expected to be onerous for the remaining coverage period, the loss will be recognised
immediately as an expense.
• If insurance acquisition costs are paid or incurred before the underlying contract has been allocated to a group of
insurance contracts, an asset is recognised in the balance sheet. After the contract has been assigned to a group, the
insurance acquisition costs are included in the corresponding valuation and the directly attributable asset that was
originally recognised is derecognised.
For all contracts in the life business that are eligible for direct profit participation, the Variable Fee Approach (VFA) measure-
ment model is applied. Initial recognition takes place in accordance with the GMM. In subsequent measurement, however,
the VFA differs from the GMM in that the CSM must be adjusted by the profit participation.
Compared to GMM, the Premium Allocation Approach (PAA) simplifies the calculation of the mathematical reserve (Liability
for Remaining Coverage (LRC)). This model can be used for short-term insurance contracts and insurance contracts with
similar measurement results compared to the GMM. In its primary non-life business, VIG applies the PAA for all contracts
with a coverage period of 12 months or less. Furthermore, if the relevant eligibility criteria in accordance with IFRS 17 are
fulfilled, the PAA is also applied for multi-year contracts.
The PAA measurement principles differ from the unearned premium approach in accordance with IFRS 4 in the following
key areas:
• The LRC corresponds to the premiums received less deferred acquisition costs less any amounts already recognised
as income in the insurance service result.
• Measurement of the LIC includes an adjustment for the time value of money. It also reflects the effect of financial risk
where the premium due date and the related period of services are more than 12 months apart.
• To calculate a loss component, when measuring the LRC for onerous contracts an explicit evaluation of risk adjustment
is included for non-financial risks. A provision for expected losses would have been recognised under the same
conditions in accordance with IFRS 4.
• Measurement of the liability for incurred claims (LIC) is determined on a discounted probability-weighted expected value
basis and includes a risk adjustment for non-financial risk. The liability therefore includes the obligation to pay other
incurred insurance service expenses (acc. to IFRS 4 incurred but not reported claims (IBNR)), outstanding claims and
claims handling costs.
VIG allocates insurance acquisition costs to groups of insurance contracts issued or expected to be issued on a systematic and
rational basis. Insurance acquisition costs include those that are directly attributable to a group and to future groups that
are expected to arise from renewals of contracts in that group. Where such insurance acquisition costs are paid or a liability
has been recognised before the related group of insurance contracts is recognised, an asset for insurance acquisition costs
is accounted for. Once the insurance contracts are measured, the attributable portion of this asset is derecognised and
subsumed into the measurement at initial recognition of the related group’s LRC. The acquisition costs recognised in the
LRC are subject to regular impairment testing.
48
Annual Financial Report 2023
Changes to presentation and disclosure
With regard to presentation in the consolidated balance sheet, VIG summarises (re-) insurance contracts issued and
reinsurance contracts held as follows:
• Portfolios of (re-) insurance contracts issued that are assets,
• Portfolios of reinsurance contracts held that are assets,
• Portfolios of (re-) insurance contracts issued that are liabilities, and
• Portfolios of reinsurance contracts held that are liabilities.
Portfolios of insurance contracts and reinsurance contracts in an asset position are presented separately from those in a
liability position. Netting is not permitted in accordance with IFRS 17, this is a key difference in presentation in the balance
sheet compared with IFRS 4, where netting was possible.
As with the new presentation of insurance contracts in the balance sheet, there is also a change in items in the income
statement. These differ from those shown under IFRS 4 with regard to both their name and their content. The items are
now presented as follows under IFRS 17:
• Insurance service revenue – issued business,
• Insurance service expenses – issued business,
• Insurance financial result and
• Insurance service result – reinsurance held.
Discount rate
The interest rate applied for discounting of cash flows is as follows for the first-time application:
Spot rates* 1 year
3 years
5 years
10 years
20 years
30 years
in %
ALL -0.58
-0.25
-0.08
0.21
0.46
1.05
BAM -0.64
-0.30
-0.13
0.15
0.40
1.01
BGN -0.64
-0.30
-0.13
0.15
0.40
1.01
CHF -0.80
-0.48
-0.33
-0.01
-0.01
0.32
CZK 4.63
4.13
3.71
3.09
2.96
3.06
EUR -0.58
-0.25
-0.08
0.21
0.46
1.05
GBP 0.78
1.20
1.20
1.11
1.05
1.00
GEL 7.78
8.13
8.13
8.07
7.87
7.34
HRK -0.18
0.01
0.19
0.82
1.72
2.21
HUF 3.49
4.13
4.29
4.43
4.66
4.69
MDL -0.58
-0.25
-0.08
0.21
0.46
1.05
MKD -0.58
-0.25
-0.08
0.21
0.46
1.05
PLN 2.66
3.60
3.73
3.57
3.49
3.47
RON 3.93
4.52
4.68
5.07
5.01
4.68
RSD 2.21
2.76
3.29
4.01
4.17
4.06
TRY 21.64
24.35
25.35
24.27
20.71
16.92
UAH 11.43
12.73
12.68
10.14
7.58
6.82
USD 0.44
1.08
1.28
1.50
1.67
1.64
*Without illiquidity adjustment
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
49
Illiquidity adjustment 31/12/2021
in basis points
Bosnia-Herzegovina 100
Bulgaria 45
Germany 15
Croatia (HRK) 9
Liechtenstein 15
Austria 15
Poland 63
Serbia 200
Slovakia 8
Czech Republic 29
Türkiye 26
Hungary 19
Transition
To apply IFRS 17, at the transition date, 1 January 2022, VIG has:
• identified, recognised and measured each group of insurance contracts as if IFRS 17 had always been applied (unless
impracticable);
• identified, recognised and measured assets for insurance acquisition costs as if IFRS 17 had always been applied.
However, no recoverability assessment was performed before the transition date. At transition date, a recoverability
assessment was performed, and no impairment loss was identified;
• derecognised any existing balances that would not exist if IFRS 17 had always been applied; and
• recognised any resulting net difference in equity.
The discount rates used for groups of insurance contracts were determined at the transition date. Therefore, the locked-in
discount rates, for the measurement of fulfilment cash flows of a group of insurance contracts at the date of transition, are
the weighted average rates applicable at the date of initial recognition of the underlying contracts. The discount rate used
for the accretion of interest on the CSM was determined using the bottom-up approach at inception.
Full retrospective approach (FRA)
VIG applied IFRS 17 retrospectively and used alternative transition methods only where the FRA was impracticable or would
have involved disproportionate costs and effort. This approach was used primarily for non-life insurance contracts and for
reinsurance contracts issued and held that in principle fall under the application of the PAA.
The approach requires historical data since initial recognition of the insurance contract to be obtained for all groups of
contracts. VIG has used all reasonable and supportable information from its existing reporting systems to obtain the closest
outcome to the full retrospective approach. However, insufficient availability of historical data is the main reason why the
FRA is impracticable for VIG’s long-term business, particularly for:
• most of its life portfolio as well as its health similar-to-life portfolios and
• non-life insurance portfolios that are measured in accordance with the GMM.
50
Annual Financial Report 2023
For each group of contracts for which the full retrospective approach was impracticable, the fair value approach has been
applied.
Fair value approach (FVA)
The fair value approach is a simplified method of determining the CSM and/or loss components for groups of insurance
contracts at the transition date. The CSM or loss component of the LRC at the transition date is determined as the difference
between the fair value of the group of insurance contracts and the fulfilment cash flows measured at that date. In
determining the fair value, the requirements of IFRS 13 Fair Value Measurement were applied; except for the application of
IFRS 13.47 regarding the characteristic of short-term retrievability.
When applying the fair value approach at the transition date, it is permissible to aggregate contracts issued more than one
year apart.
Reasonable and supportable information that was available at the transition date was used for the following:
• identify groups of insurance contracts,
• determine whether any contracts are direct participating insurance contracts,
• identify any discretionary cash flows for insurance contracts without direct participation features,
• determine whether an investment contract meets the definition of an investment contract with discretionary
participation features as defined in IFRS 17.
VIG divides insurance finance effects into amounts recognised through profit and loss and amounts recognised directly in
equity.
The cost of capital approach to determine the fair value was used to calculate the insurance contract liabilities at the
transition date. This was calculated as follows:
• the economically calculated best-estimate liability without taking into account reporting requirements; plus
• a profit margin in line with the market.
Material estimates and discretionary decisions
The material estimates and discretionary decisions made in connection with the (re-) insurance contracts are presented in
Note 24.1. (Re-) insurance contracts starting on page 141.
IAS 29 FINANCIAL REPORTING IN HYPERINFLATIONARY ECONOMIES
In the present consolidated financial statements, VIG has fully consolidated two Turkish companies that prepare their financial
statements in the functional currency TRY. The effect of applying IAS 29 in the preceding financial year was assessed, but it
was found that it would not have had any material effects on the Group’s net assets, financial position and results of operations.
Despite continuously rising inflation, the analysis for the current financial year did not show any material cumulative effects
on the consolidated balance sheet, but it did show a material effect on the consolidated income statement, caused mainly
by the full-year inclusion of Viennalife (Türkiye). Furthermore, the future development cannot be predicted. For these reasons,
VIG applied IAS 29 Financial Reporting in Hyperinflationary Economies for the first time in the present consolidated financial
statements.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
51
The necessary adjustment to account for the change in purchasing power of the functional currency was made as of the
reporting date in the applicable measuring unit before conversion to the Group currency. The inflation effects resulting both
from initial recognition and from measurement in subsequent periods are calculated on the basis of historical cost using the
Consumer Price Index published by the Central Bank of the Republic of Türkiye (CBRT).
The first-time application effect in the amount of around EUR 2,717,000 was recognised in the currency reserve of the
statement of comprehensive income. Monetary items were not adjusted in accordance with IAS 29. In accordance with
IAS 21.42 lit. b, the previous year’s figures remained unaffected by the IAS 29 effects in the Group.
The gain or loss in the net monetary position upon measurement in subsequent periods is recognised in the item of Other
income and expenses in the consolidated income statement.
The two Turkish subsidiaries are translated into the Group currency at the end-of-period exchange rate. The same applies
for the income statement values.
Additional disclosures can be found under Note 17. Hyperinflation on page 125.
Changes in accounting policies
DEFINITION OF CASH AND CASH EQUIVALENTS
Before the application of IFRS 17, IFRS 4 made it possible to account for underwriting items in accordance with local
legislation. Under consideration of the regulations applicable for example in Austria (Versicherungsaufsichtsgesetz (VAG)),
investments that serve to cover underwriting provisions for unit-linked and index-linked life insurance were also subject to
these reporting regulations.
As a result, VIG Insurance Group decided under IFRS 4 to report the term and the definition of cash and cash equivalents
in accordance with supervisory regulations. Accordingly, the regulatory investments for unit-linked and index-linked life
insurance were not included in the item cash and cash equivalents in accordance with IFRS.
IFRS 9 and IFRS 17 have now been applied for the first time in these consolidated financial statements. The regulations
also lead to a look-through of assets in unit-linked and index-linked life insurance. As local regulations no longer have any
weight under IFRS, VIG Insurance Group has a different assessment of the reporting and therefore the definition of cash
and cash equivalents in comparison to the past, which is accompanied by an IAS 8 change in accounting policy.
Consequently, the previous year’s figures in the consolidated cash flow statement and the balance sheet item ‘cash and
cash equivalents’ have been adjusted in accordance with IAS 8.
CHANGE FROM CLEAN VALUE TO DIRTY VALUE ACCOUNTING
In addition to the changes in connection with the initial application of IFRS 9, financial instruments are now recognised 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.
ALLOCATING INTEREST, TAXES AND DIVIDENDS
Due to the amended accounting principles from clean to dirty value, interest, taxes and dividends can now be split in the
consolidated cash flow statement according to their origins (operating, investment and finance).
52
Annual Financial Report 2023
Identification of errors
As part of an audit of the OePR in accordance with § 2 (1) RL-KG, it was established that the consolidated financial (interim)
statements 2022 of the VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe were faulty for the following reasons:
• In the consolidated cash flow statement for the financial year 2022, payments in connection with intangible assets from
company acquisitions were counted twice; and
• In the consolidated financial statements as of 31/12/2022 as well as in the consolidated interim financial statements as
of 30/06/2022, the disclosure of the purchase price for acquiring Aegon Hungary and Aegon Türkiye was omitted.
CONSOLIDATED CASH FLOW STATEMENT
On the one hand, the acquisition was taken into account in the item “Payments for the acquisition of subsidiaries” and, on
the other hand, in the item “Payments for the acquisition of intangible assets”. As both items are included in the cash flow
from investment activities, the cash outflow from investment activities was overstated by EUR 320.2 million. By contrast,
the cash flow from operating activities included this figure. After the correction, the cash flow from operating activities
compared to the financial year 2021 shows a decline of EUR 217.4 million instead of an increase of EUR 102.8 million.
DISCLOSURE OF THE PURCHASE PRICE OF THE AEGON COMPANIES IN HUNGARY AND TÜRKIYE
A purchase price of around EUR 830 million was originally published on page 91 of the 2022 Group Annual Report for the
entire transaction, including 100% of shares in all Aegon companies. As well as the Hungarian and Turkish companies, this
included the acquisitions of companies in Poland and Romania, which were not yet closed by the editorial deadline for the
2022 Group Annual Report.
In the Group Annual Report on page 90, the outflow of cash and cash equivalents published with the acquired companies
was stated as EUR 407,433,000. This mainly comprised the purchase price for 55% of shares in the Hungarian Aegon
companies (EUR 332,456,000) and 100% of shares in the Turkish company Viennalife (formerly Aegon) (EUR 60,013,000).
The compensation received from the Hungarian state-owned holding company Corvinus for 45% of shares in the Hungarian
companies had already been deducted from the purchase price for the Hungarian companies cited previously.
In November 2023, further shares were acquired in the Hungarian companies. In this regard, reference is made to the
statements in Note 21.3 Change in significant shares of other shareholders starting on page 132.
ADDITIONAL DISCLOSURES
Taxes
CHANGES IN TAX RATES
As a result of the 2022 tax reform, the corporate income tax rate in Austria 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 a reduction of around
EUR 1.5 million in current taxes for the reporting period.
The corporate income tax in Türkiye was raised from 25% to 30% in 2023. This change of tax rate increased current taxes
by around EUR 3.0 million and increased deferred tax liabilities by around EUR 4.4 million.
Furthermore, the corporate tax rate in the Czech Republic was raised by 19% to 21% as of 1 January 2024. This led to an
increase in deferred tax assets in this reporting period of around EUR 15.5 million.
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ADDITIONAL TAX ON INSURANCE PREMIUMS IN HUNGARY
An additional tax on insurance was introduced for insurance companies operating in Hungary (Government Decree on
Extra-Profit Taxes from June 2022, amended in December 2022 and May 2023). This additional tax is a progressive tax
based on gross insurance premiums for both life and non-life insurance lines of business for the period of 1 July 2022 to
31 December 2024.
This decree has resulted in a significant increase in the tax burden for Hungarian VIG insurance companies. Based on the
current values of Union Biztosító and Alfa (formerly Aegon), an amount of EUR 26.5 million was to be paid for the period
from 1 July 2022 to 31 December 2022 and EUR 48.4 million for the period from 1 January 2023 to 31 December 2023.
According to the available budgeted figures, VIG can expect an additional tax burden amounting to approximately
EUR 55.1 million for the 2024 financial year.
Originally, the additional tax on insurance was effective for the period of 1 July 2022 through 31 December 2023. In May 2023,
this was extended for a further year until 31 December 2024. VIG classified this extension of the insurance tax as a triggering
event and performed an impairment test for the Hungary cash-generating unit as of 30 June 2023, which did not result in
any necessary impairment of goodwill.
The war in Ukraine
The invasion of the Russian Federation armed forces in Ukraine marked the outbreak of war between these two countries
on 24 February 2022. In doing so, the dangers associated with the well-being of the employees and the operational busi-
ness (e.g. office infrastructure, energy, communications, IT security) represent significant, direct risks for the Ukraine insur-
ance companies of VIG. For VIG Insurance Group, this could cause a range of risks to materialise which will be addressed
and handled using a sustained risk management.
BUSINESS OPERATIONS IN UKRAINE
VIG Insurance Group is represented in the Ukrainian market by three insurance companies that held around EUR 123.7 million in
assets as of 31 December 2023. In view of expected investment costs, particularly in the country’s infrastructure and economy,
an allowance for expected credit losses on sovereign bonds and bank deposits in the amount of EUR 53.2 million was recog-
nised as of 31 December 2023. Even in the case of a complete loss on the Ukrainian activities, no negative effect on profit or
loss would arise. This step creates the best possible starting position for the reconstruction after the end of the war for the VIG
Insurance Group. The Ukraine CGU does not hold any intangible assets that are subject to an impairment test in accordance
with IAS 36.
The 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. Indirectly affected, however, are the lines of business outside
the motor vehicle lines of business. This is due to the fact that, at the present time, certain property insurance lines (such
as for certain regions of the country) can be underwritten only to a very limited extent. The activities of the Ukrainian insur-
ance companies have not demonstrated any significant impact that can be attributed to the sanctions against Russia. As
of the editorial deadline, the Ukrainian insurance companies have been able to maintain operations with occasional limita-
tions despite 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.
54
Annual Financial Report 2023
RUSSIAN BONDS
At the balance sheet date, the VIG Insurance Group held Russian government and corporate bonds with a book value of
EUR 19.2 million (nominal value: EUR 62.1 million), on its books, for which no active market is basically available. Never-
theless, bonds with a nominal value of EUR 100.9 million were sold during the course of 2023. Due to the impairment
losses recognised in the 2022 financial year in connection with Russian government and corporate bonds, a gain of approxi-
mately EUR 21.2 million from the sale was posted in the consolidated income statement.
Risks related to the geopolitical situation and the current macroeconomic environment
Despite the ongoing war of aggression against Ukraine, the macroeconomic situation improved in the reporting year.
However, the conflict in Taiwan represented a potential latent threat to the global economy and the terror attack on Israel in
October 2023 followed by the escalation in the Middle East represented an acute threat to the global economy.
Although the inflation dynamic weakened considerably in nearly all markets in which VIG operates, it remained at a high
level. The future development of financial markets and the economy in general is still fraught with considerable uncertainty
and so this represents one of the most critical risks for VIG.
Financial markets can be impacted by further geopolitical tensions such as the war in Israel and Gaza, the Taiwan conflict
and the war in Ukraine. These risks are also being addressed within the scope of sustained risk management.
As of the balance sheet date, VIG held Israeli government and corporate bonds with a book value of around EUR 78.5 million
(nominal value: EUR 86.1 million).
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55
SEGMENT REPORTING
OPERATING SEGMENTS
The operating segments were determined in accordance with IFRS 8 based on internal reporting to the principal decision-
maker. The individual countries in which VIG Insurance Group operates via insurance business and pension scheme/fund
business 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
The reportable segments are established taking into consideration the aggregation criteria in accordance with IFRS 8.12
and 8.14 as well as the compliance with the defined quantitative thresholds in accordance with IFRS 8.13. As a result, the
following segments are defined as reportable segments:
• Austria (including the branch offices of Wiener Städtische in Slovenia and Italy),
• Czech Republic,
• Poland,
• Extended CEE,
• Special Markets and
• Group Functions (including the branch offices of VIG Holding in Sweden, Norway and Denmark as well as those of the
VIG Re in Germany and France).
Extended CEE
The Extended CEE reportable segment includes the operating segments of Albania incl. Kosovo (a branch office of an
Albanian company is located in Kosovo), Baltic states, Bosnia-Herzegovina, Bulgaria, Croatia, Moldova, North Macedonia,
Romania, Serbia, Slovakia, Ukraine and Hungary. The segment is aggregated in accordance with aggregation criteria
according to IFRS 8.14 and is not reported in the all other segments category in accordance with IFRS 8.16 despite falling
below the quantitative threshold.
Special Markets
The Special Markets reportable segment corresponds to the all other segments category in accordance with IFRS 8.16
and includes the countries of Germany, Georgia, Liechtenstein and Türkiye.
Group Functions
VIG Insurance Group is an internationally operating insurance group in Central and Eastern Europe. Accordingly, the
Managing Board controls the insurance business separately from the coordination functions in the individual countries.
That’s why the individual operating segments include only those companies which are related to the insurance business.
This means that companies that do not distribute or assist in the distribution of insurance products (with the exception of
the pension scheme/fund business), perform loss assessments or claims settlements, or are a service company working
for the Group are presented in the Group Functions segment rather than in the country in which they have their registered
head office.
56
Annual Financial Report 2023
More specifically, this means that the Group Functions segment includes, among others, VIG Holding, VIG Re, Wiener Re,
VIG Fund, corporate IT service providers, an asset management company and intermediate holding companies.
BASIS OF REVENUES
The scope of business operations includes the insurance business with private and corporate customers. The product
range includes, among others, motor third party liability and motor own damage insurance, accident insurance, liability
insurance, fire and natural hazards insurance as well as travel insurance.
Also a variety of life and health insurance products are offered to individuals or groups. These include, for example,
supplementary health insurance, nursing care insurance as well as endowment insurance, term life insurance and
investment-oriented products. In accordance with the cornerstones of VIG Insurance Group, the products are sold through
all distribution channels in all markets. This means that, among other things, that insurance products are distributed by
sales employees, banks, brokers or agents.
VIG Holding concentrates mainly on the control tasks of VIG Insurance Group. It also acts as a reinsurer within VIG Insurance
Group as well as in the international corporate business. The Group’s own reinsurance, VIG Re, is a successful provider of
reinsurance products both for insurance companies of VIG Insurance Group as well as for external partners.
Information on major customers
VIG Insurance Group does not depend to a great extent on individual customers, as per the definition of IFRS 8.34. The 10
largest customer groups account for 2.0% of the Group's gross written premiums based on IFRS 17. Companies who,
according to VIG Insurance Group’s knowledge, are under common control are combined into customer groups.
GENERAL DISCLOSURES
Transfer prices between reportable segments are determined on the basis of market prices – in the same manner as transactions
with third parties. Intragroup cross-segment transactions are eliminated in the consolidation column. The only exception are
dividends and intercompany profits which are eliminated in the respective reportable segment.
VALUATION BASIS FOR PERFORMANCE
The financial performance of the reportable segments is assessed using different control parameters. The IFRS business
operating result is used as a standardised basis. Accordingly, for reasons of comparability, the income statement by
reportable segments is reconciled with the consolidated income statement and only the main items are presented. The
same applies in equal measure to the balance sheet by reportable segments and consolidated balance sheet.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
57
CONSOLIDATED INCOME STATEMENT BY REPORTABLE SEGMENT
Austria Czech Republic Poland Extended CEE
2023
2022
adjusted
2023
2022
adjusted
2023
2022
adjusted
2023
2022
adjusted
in
EUR
'000
Insurance service result 419,575
485,053
246,148
297,571
49,330
82,082
215,909
117,479
Insurance service revenue – issued business 3,307,356
3,163,357
2,040,071
1,860,775
1,224,497
1,070,881
3,148,077
2,673,605
Insurance service expenses –
issued business -2,654,265
-2,790,420
-1,615,623
-1,456,220
-1,096,197
-950,528
-2,730,702
-2,382,596
Insurance service result –
reinsurance held -233,516
112,116
-178,300
-106,984
-78,970
-38,271
-201,466
-173,530
Total capital investment result 144,478
-57,853
46,706
18,527
28,443
29,154
71,530
29,502
Investment result 1,010,854
-740,632
183,108
-15,720
130,074
-14,845
293,611
-13,887
Income and expenses from investment property 26,252
18,701
-1,040
105
339
25
226
2,918
Insurance finance result -908,340
646,350
-135,362
34,142
-101,970
43,974
-222,307
40,471
Result from associated consolidated companies 15,712
17,728
0
0
0
0
0
0
Finance result -47,424
-38,910
-2,920
-1,902
-1,012
-1,134
-8,270
-1,307
Other income and expenses -130,752
-115,272
-71,958
-73,472
-44,003
-37,611
-96,418
-52,424
Business operating result 385,877
273,018
217,976
240,724
32,758
72,491
182,751
93,250
Impairments of goodwill 0
0
0
0
-159
-184
-75,480
-26,177
Impairments of intangible assets -1
0
0
0
-3,231
0
-6,264
-18,666
Result before taxes 385,876
273,018
217,976
240,724
29,368
72,307
101,007
48,407
Taxes -79,355
-27,737
-24,311
-47,031
-13,381
-14,399
-48,462
-35,102
Result for the period 306,521
245,281
193,665
193,693
15,987
57,908
52,545
13,305
Special Markets Group Functions Consolidation Total
2023
2022
adjusted
2023
2022
adjusted
2023
2022
adjusted
2023
2022
adjusted
in
EUR
'000
Insurance service result 65,705
36,923
198,873
128,465
12,559
-8,771
1,208,099
1,138,802
Insurance service revenue –
issued business 617,638
483,181
1,652,249
1,399,716
-1,068,063
-913,868
10,921,825
9,737,647
Insurance service expenses – issued business -560,300
-412,503
-1,327,773
-1,197,568
719,561
664,009
-9,265,299
-8,525,826
Insurance service result – reinsurance held 8,367
-33,755
-125,603
-73,683
361,061
241,088
-448,427
-73,019
Total capital investment result 42,833
23,600
12,435
-11,231
-62,170
-43,913
284,255
-12,214
Investment result 274,198
30,784
50,780
-8,756
-49,557
-46,640
1,893,068
-809,696
Income and expenses from investment property 543
379
5,579
15,728
-55
-54
31,844
37,802
Insurance finance result -231,908
-7,563
-44,678
-18,762
-12,558
2,781
-1,657,123
741,393
Result from associated consolidated companies 0
0
754
559
0
0
16,466
18,287
Finance result -577
-316
-86,233
-89,131
47,944
46,554
-98,492
-86,146
Other income and expenses -33,945
-18,688
-142,463
-115,340
1,667
6,130
-517,872
-406,677
Business operating result 74,016
41,519
-17,388
-87,237
0
0
875,990
633,765
Impairments of goodwill 0
0
0
0
0
0
-75,639
-26,361
Impairments of intangible assets -9,778
-3,041
-8,388
0
0
0
-27,662
-21,707
Result before taxes 64,238
38,478
-25,776
-87,237
0
0
772,689
585,697
Taxes -26,603
-23,251
-4,331
25,826
0
0
-196,443
-121,694
Result for the period 37,635
15,227
-30,107
-61,411
0
0
576,246
464,003
58
Annual Financial Report 2023
CONSOLIDATED BALANCE SHEET BY REPORTABLE SEGMENTS
Assets Austria Czech Republic Poland Extended CEE
31/12/2023
31/12/2022
adjusted
31/12/2023
31/12/2022
adjusted
31/12/2023
31/12/2022
adjusted
31/12/2023
31/12/2022
adjusted
in
EUR
'000
Cash and cash equivalents 443,840
615,018
22,870
44,017
23,271
34,859
222,730
232,504
Financial assets 21,799,897
21,469,096
3,472,630
3,270,565
2,257,297
1,960,368
6,427,772
5,703,644
Receivables 250,590
239,486
61,220
63,431
14,713
22,011
95,852
87,917
Current tax assets 9,448
7,453
32,420
19,482
4,321
6,854
10,686
4,251
Investments in associates 178,073
180,998
0
0
150
139
0
0
Insurance contracts assets issued -1,607
10,670
178,842
86,250
6,369
668
51,420
33,095
Reinsurance contracts assets held 413,522
670,515
167,070
166,729
89,127
74,611
169,046
127,894
Investment property 2,058,031
1,904,935
35,864
16,405
20,842
18,488
191,011
160,350
Owner-occupied property and
equipment
194,660
196,120
178,014
178,299
19,814
18,046
171,861
164,202
Other assets 56,593
39,848
21,529
19,824
3,674
4,137
29,426
22,665
Goodwill 301,716
301,716
456,516
468,097
151,450
140,561
451,156
497,850
Intangible assets 273,171
261,753
55,587
42,547
32,810
30,451
181,019
181,187
Deferred tax asset 219,364
241,695
174,166
197,703
0
1,953
46,963
59,298
Right-of-use assets 80,720
69,033
57,669
62,838
7,624
6,564
37,867
32,876
Total 26,278,018
26,208,336
4,914,397
4,636,187
2,631,462
2,319,710
8,086,809
7,307,733
Assets Special Markets Group Functions Total
31/12/2023
31/12/2022
adjusted
31/12/2023
31/12/2022
adjusted
31/12/2023
31/12/2022
adjusted
I
n
EUR
'000
Cash and cash equivalents 174,812
147,393
670,584
1,241,428
1,558,107
2,315,219
Financial assets 2,420,502
2,153,009
1,612,141
1,257,303
37,990,239
35,813,985
Receivables 26,464
30,580
46,833
47,261
495,672
490,686
Current tax assets 13,126
4,860
165,717
132,959
235,718
175,859
Investments in associates 0
0
7,399
106,824
185,622
287,961
Insurance contracts assets issued 9,243
1,600
-14,776
8,491
229,491
140,774
Reinsurance contracts assets held 141,159
80,644
828,374
754,115
1,808,298
1,874,508
Investment property 10,902
10,928
535,440
533,909
2,852,090
2,645,015
Owner-occupied property and equipment 12,913
10,341
41,897
41,684
619,159
608,692
Other assets 9,355
225
20,998
33,850
141,575
120,549
Goodwill 0
0
10,527
30,497
1,371,365
1,438,721
Intangible assets 11,726
19,491
36,048
50,371
590,361
585,800
Deferred tax asset 381
3,093
42,413
37,483
483,287
541,225
Right-of-use assets 6,583
4,641
2,353
2,711
192,816
178,663
Total 2,837,166
2,466,805
4,005,948
4,278,886
48,753,800
47,217,657
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
59
Liabilities and consolidated Austria Czech Republic Poland Extended CEE
shareholders' equity 31/12/2023
31/12/2022
adjusted
31/12/2023
31/12/2022
adjusted
31/12/2023
31/12/2022
adjusted
31/12/2023
31/12/2022
adjusted
in
EUR ‘000
Liabilities and other payables 339,693
215,998
321,904
327,495
92,420
80,641
195,104
155,126
Current tax liabilities 105,856
77,699
428
346
0
0
6,151
3,049
Financial liabilities 526,805
547,618
81,637
86,878
8,660
7,901
39,669
35,016
Other liabilities 35,931
36,943
5,131
4,152
1,673
2,483
21,595
17,077
Insurance contracts liabilities issued 23,370,578
23,248,325
2,851,071
2,686,728
2,004,101
1,650,616
5,993,171
5,282,935
Reinsurance contracts liabilities held 15,359
14,970
-13,647
-245
1,091
1,850
-1,811
1,505
Provisions 384,499
341,264
35,977
25,987
22,582
15,293
118,158
99,999
Deferred tax liabilities 232,433
230,160
32,887
20,698
39,658
20,290
47,476
42,913
Subtotal 25,011,154
24,712,977
3,315,388
3,152,039
2,170,185
1,779,074
6,419,513
5,637,620
Liabilities and consolidated Special Markets Group Functions Total
shareholders' equity 31/12/2023
31/12/2022
adjusted
31/12/2023
31/12/2022
adjusted
31/12/2023
31/12/2022
adjusted
in
EUR ‘000
Liabilities and other payables 63,003
49,395
100,551
121,173
1,112,675
949,828
Current tax liabilities 14,342
14,890
30,239
19,630
157,016
115,614
Financial liabilities 6,862
4,705
1,732,688
2,230,496
2,396,321
2,912,614
Other liabilities 1,192
1,363
13,435
16,363
78,957
78,381
Insurance contracts liabilities issued 2,464,887
2,204,987
1,120,284
1,296,783
37,804,092
36,370,374
Reinsurance contracts liabilities held 18,349
12,341
4,840
7,321
24,181
37,742
Provisions 15,795
29,344
171,609
157,992
748,620
669,879
Deferred tax liabilities 32,781
26,073
16,973
29,218
402,208
369,352
Subtotal 2,617,211
2,343,098
3,190,619
3,878,976
42,724,070
41,503,784
Consolidated shareholders' equity 6,029,730
5,713,873
Total 48,753,800
47,217,657
The amounts disclosed for each reportable segment have been adjusted to exclude amounts resulting from intrasegment
transactions. As a result, the segment assets and liabilities cannot be netted to determine the segment shareholders’ equity.
60
Annual Financial Report 2023
EXPLANATORY NOTES TO THE NET ASSETS, FINANCIAL POSITION AND OPERATING RESULTS
1. INSURANCE CONTRACTS
The accounting policies used are presented in Note 25.3. (Re-) insurance contracts starting on page 149.
For better readability, the short versions of IFRS 17 descriptions are used.
Short description Long description
AIC Assets for Incurred Claims
ARC Assets for Remaining Coverage
CSM Contractual Service Margin
FCF Fulfilment Cash Flows
FRA Full Retrospective Approach
FVA Fair Value Approach
GMM General Measurement Model
LIC Liability for Incurred Claims
LoReCo Loss Recovery Component
LRC Liability for Remaining Coverage
PAA Premium Allocation Approach
PVFCF Present Value of Future Cash Flows
RA Risk Adjustment
VFA Variable Fee Approach
1.1. Overview
The portfolio status is valued prior to any consolidation steps and is decisive for whether a portfolio of insurance contracts
is recognised as an asset or a liability. After excluding intercompany transactions, a valuation is not carried out again. The
same applies to determining the loss component and the accompanying allocation of to “onerous” or “non-onerous”.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
61
Composition 31/12/2023
PAA
GMM
VFA
Total
in
EUR ‘000
Insurance contracts assets issued -5,597
229,916
1,384
229,491
Assets for Remaining Coverage (ARC) 17,945
314,238
1,404
333,587
Estimates of the PVFCF
824,480
6,599
Risk Adjustment
-240,463
-1,542
Contractual Service Margin
-269,779
-3,653
Assets for Incurred Claims -23,542
-84,322
-20
-107,884
As an asset recognised insurance acquisition costs
3,788
Reinsurance contracts assets held 1,257,432
550,866
1,808,298
Assets for Remaining Coverage (ARC) 67,558
-102,806
-35,248
Estimates of the PVFCF
-169,030
Risk Adjustment
5,889
Contractual Service Margin
60,335
Assets for Incurred Claims 1,189,874
653,672
1,843,546
Insurance contracts liabilities issued -7,841,483
-3,014,823
-26,896,421
-37,804,092
Liability for Remaining Coverage (LRC) -1,845,696
-2,368,596
-26,072,494
-30,286,786
Estimates of the PVFCF
-1,725,833
-19,974,708
Risk Adjustment
-148,464
-981,722
Contractual Service Margin
-494,299
-5,116,064
Liability for Incurred Claims -5,995,787
-646,227
-823,927
-7,465,941
As a liability recognised insurance acquisition costs
-51,365
Reinsurance contracts liabilities held 8,924
-33,105
-24,181
Liability for Remaining Coverage (LRC) -3,630
-31,587
-35,217
Estimates of the PVFCF
-59,851
Risk Adjustment
2,053
Contractual Service Margin
26,211
Liability for Incurred Claims 12,554
-1,518
11,036
62
Annual Financial Report 2023
Composition 31/12/2022
PAA
GMM
VFA
Total
in
EUR ‘000
Insurance contracts assets issued 6,069
121,696
2,525
140,774
Assets for Remaining Coverage (ARC) 8,502
189,354
2,527
200,383
Estimates of the PVFCF
637,932
3,905
Risk Adjustment
-175,722
-693
Contractual Service Margin
-272,856
-685
Assets for Incurred Claims -2,433
-67,658
-2
-70,093
As an asset recognised insurance acquisition costs
10,484
Reinsurance contracts assets held 1,332,013
542,495
1,874,508
Assets for Remaining Coverage (ARC) 46,405
-66,050
-19,645
Estimates of the PVFCF
-138,757
Risk Adjustment
3,364
Contractual Service Margin
69,343
Assets for Incurred Claims 1,285,608
608,545
1,894,153
Insurance contracts liabilities issued -7,280,414
-2,738,574
-26,291,427
-36,370,374
Liability for Remaining Coverage (LRC) -1,688,614
-2,187,162
-25,486,127
-29,361,903
Estimates of the PVFCF
-1,525,364
-19,354,171
Risk Adjustment
-167,595
-963,615
Contractual Service Margin
-494,203
-5,168,341
Liability for Incurred Claims -5,591,800
-551,412
-805,300
-6,948,512
As a liability recognised insurance acquisition costs
-59,959
Reinsurance contracts liabilities held -5,837
-31,905
-37,742
Liability for Remaining Coverage (LRC) -22,244
-30,586
-52,830
Estimates of the PVFCF
-61,026
Risk Adjustment
1,830
Contractual Service Margin
28,610
Liability for Incurred Claims 16,407
-1,319
15,088
Development –
(Re-) insurance contracts 2023 2022
All measurement models issued
held
Total
issued
held
Total
in
EUR ‘000
Contractual Service Margin as of 01/01 -5,936,082
97,951
-5,838,131
-5,165,945
62,616
-5,103,329
Insurance service result 62,250
-12,397
49,853
-534,030
31,377
-502,653
Changes that relate to current services 612,587
-12,051
600,536
589,749
4,398
594,147
Amount of CSM recognised in profit or loss 612,587
-12,051
600,536
589,749
4,398
594,147
Changes that relate to future services -550,337
-346
-550,683
-1,123,779
26,979
-1,096,800
Changes in estimates that adjust the CSM -136,282
-55,856
-192,138
-851,581
5,794
-845,787
Contracts initially recognised in the period -414,055
55,510
-358,545
-272,198
21,185
-251,013
Insurance finance result -59,032
5,481
-53,551
-38,509
2,458
-36,051
Total changes in the statement of comprehensive income 3,218
-6,916
-3,698
-572,539
33,835
-538,704
Exchange rate differences 49,072
-4,492
44,580
19,783
-721
19,062
Changes in scope of consolidation 0
0
0
-217,381
2,221
-215,160
Contractual Service Margin as of 31/12 -5,883,792
86,543
-5,797,249
-5,936,082
97,951
-5,838,131
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
63
1.2. Assumptions used
Cost of capital and confidence level
The VIG Insurance Group's cost of capital rate used for risk adjustment in the financial year 2023 amounts to 6.0% (2022: 6.0%).
The Group's risk adjustment for life, health, non-life insurance contracts corresponds to an average confidence level of 79.5%
(2022: 79.3%).
Discount rate
Spot rates* 31/12/2023 31/12/2022
1 year
3 years
5 years
10 years
20 years
30 years
1 year
3 years
5 years
10 years
20 years
30 years
in %
ALL 3.36
2.44
2.32
2.39
2.41
2.52
3.18
3.20
3.13
3.09
2.76
2.73
BAM 3.31
2.39
2.27
2.34
2.36
2.48
3.13
3.15
3.08
3.04
2.72
2.69
BGN 3.31
2.39
2.27
2.34
2.36
2.48
3.13
3.15
3.08
3.04
2.72
2.69
CHF 1.17
1.10
1.05
1.16
1.49
1.71
1.06
1.23
1.34
1.49
1.58
1.76
CZK 5.18
3.68
3.41
3.38
3.44
3.45
6.51
5.78
5.05
4.60
4.38
4.17
EUR 3.36
2.44
2.32
2.39
2.41
2.52
3.18
3.20
3.13
3.09
2.76
2.73
EUR (Croatia) 3.36
2.63
2.61
2.83
3.07
3.17
-
-
-
-
-
-
GBP 4.74
3.67
3.35
3.28
3.43
3.35
4.46
4.33
4.06
3.71
3.53
3.35
GEL 14.85
13.14
12.33
12.07
11.47
10.03
10.19
8.72
9.35
10.56
10.10
8.99
HRK -
-
-
-
-
-
2.49
3.04
3.35
4.15
4.36
4.19
HUF 6.30
5.93
5.71
5.78
6.00
5.70
13.65
11.34
9.66
8.61
8.03
7.15
MDL 3.36
2.44
2.32
2.39
2.41
2.52
3.18
3.20
3.13
3.09
2.76
2.73
MKD 3.36
2.44
2.32
2.39
2.41
2.52
3.18
3.20
3.13
3.09
2.76
2.73
PLN 4.95
4.83
4.84
5.10
4.94
4.59
6.40
6.72
6.74
6.65
6.01
5.38
RON 6.03
5.99
6.05
6.14
5.67
5.12
6.98
7.25
7.64
8.56
8.01
6.91
RSD 5.09
5.22
5.45
6.84
7.00
6.20
4.73
6.21
6.51
7.34
7.09
6.24
TRY 39.34
31.17
24.78
21.36
19.14
15.84
12.32
8.79
8.46
10.21
10.41
9.29
UAH 17.16
19.14
17.47
11.18
7.28
6.46
18.36
22.12
21.32
13.78
8.14
6.99
USD 4.76
3.72
3.50
3.45
3.46
3.23
5.07
4.26
3.95
3.75
3.63
3.27
*Without illiquidity adjustment
Under certain conditions, the Croatian Insurance Bureau permits the use of a specially calculated interest rate generated
on the basis of the EUR bonds of the Croatian National Bank. That is why two different EUR interest rates are presented in
the table above.
64
Annual Financial Report 2023
Illiquidity adjustment
31/12/2023
31/12/2022
in basis points
Albania 41
40
Bosnia-Herzegovina 56
43
Bulgaria 59
61
Germany 56
45
Estonia 41
37
Georgia 40
194
Kosovo 41
40
Croatia 28
11
Latvia 41
40
Liechtenstein 39
25
Lithuania 41
40
North Macedonia 41
40
Moldova 41
40
Austria 40
37
Poland 69
89
Romania 35
37
Serbia 200
200
Slovakia 40
34
Czech Republic 32
31
Türkiye 54
39
Ukraine 229
151
Hungary 52
73
1.3. Insurance contracts issued
Development 2023 2022
All measurement models LRC / ARC LIC / AIC
LRC / ARC LIC / AIC
Excl. loss
component
Loss
component
Excl. loss
component
Loss
component
in
EUR ‘000
Assets as of 01/01 208,090
-7,707
-70,093
113,336
0
-25,119
Liabilities as of 01/01 -29,288,729
-73,174
-6,948,512
-34,410,922
-12,418
-6,448,414
Net book value as at 01/01 -29,080,639
-80,881
-7,018,605
-34,297,586
-12,418
-6,473,533
Insurance service result 11,195,729
13,517
-9,552,720
10,807,468
-68,852
-9,526,794
Insurance finance result -992,748
-1,652
-704,351
971,796
-186
-246,939
Unrealised gains and losses acc. to IFRS 17 -928,606
0
-139,005
3,620,545
0
369,925
Total changes in the statement of comprehensive income 9,274,375
11,865
-10,396,076
15,399,809
-69,038
-9,403,808
Exchange rate differences 173,163
293
34,317
-80,480
577
115,927
Changes in scope of consolidation 0
0
0
-662,516
0
-87,242
Total fulfilment cash flows -10,251,377
0
9,806,538
-9,439,864
0
8,830,051
Net book value as at 31/12 -29,884,478
-68,723
-7,573,826
-29,080,637
-80,879
-7,018,605
Assets as of 31/12 342,579
-8,993
-107,884
208,090
-7,707
-70,093
Liabilities as of 31/12 -30,227,056
-59,730
-7,465,941
-29,288,729
-73,174
-6,948,512
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
65
Development 2023
Premium Allocation Approach LRC / ARC LIC / AIC
Excl. loss
component
Loss
component
Total
PVFCF
RA
Total
in
EUR ‘000
Assets as of 01/01 8,502
0
8,502
-2,383
-50
-2,433
Liabilities as of 01/01 -1,683,360
-5,254
-1,688,614
-5,345,181
-246,619
-5,591,800
Net book value as at 01/01 -1,674,858
-5,254
-1,680,112
-5,347,564
-246,669
-5,594,233
Insurance service result 6,191,529
-3,644
6,187,885
-5,194,441
696
-5,193,745
Insurance service revenue – issued business 8,531,488
0
8,531,488
0
0
0
Other insurance contracts 8,531,488
8,531,488
0
Insurance service expenses -2,350,065
-3,644
-2,353,709
-5,184,335
696
-5,183,639
Incurred claims and other insurance service expenses -603,987
-603,987
-5,053,578
-5,053,578
Losses of onerous contracts and reversals of those losses
-3,644
-3,644
0
Changes fulfilment cash flows relating to LIC
0
-130,757
696
-130,061
Amortisation of insurance acquisition costs -1,746,078
-1,746,078
0
Investment components 10,106
10,106
-10,106
-10,106
Insurance finance result 213
213
-191,574
-15,129
-206,703
Unrealised gains and losses acc. to IFRS 17
0
-129,383
-129,383
Total changes in the statement of comprehensive income 6,191,742
-3,644
6,188,098
-5,515,398
-14,433
-5,529,831
Exchange rate differences 126,470
-103
126,367
21,046
-7,247
13,799
Total fulfilment cash flows -6,462,103
0
-6,462,103
5,090,936
0
5,090,936
Received premiums -8,872,233
-8,872,233
0
Claims and other insurance service expenses paid
0
5,090,936
5,090,936
Insurance acquisition costs 2,410,130
2,410,130
0
Net book value as at 31/12 -1,818,749
-9,001
-1,827,750
-5,750,980
-268,349
-6,019,329
Assets as of 31/12 17,945
0
17,945
-23,172
-370
-23,542
Liabilities as of 31/12 -1,836,695
-9,001
-1,845,696
-5,727,808
-267,979
-5,995,787
66
Annual Financial Report 2023
Development 2022
Premium Allocation Approach LRC / ARC LIC / AIC
Excl. loss
component
Loss
component
Total
PVFCF
RA
Total
in
EUR ‘000
Assets as of 01/01 2,735
0
2,735
-1,412
-12
-1,424
Liabilities as of 01/01 -1,422,338
-8,626
-1,430,964
-4,887,461
-257,705
-5,145,166
Net book value as at 01/01 -1,419,603
-8,626
-1,428,229
-4,888,873
-257,717
-5,146,590
Insurance service result 5,444,447
3,361
5,447,808
-4,888,472
-8,240
-4,896,712
Insurance service revenue – issued business 7,516,801
0
7,516,801
0
0
0
Other insurance contracts 7,516,801
7,516,801
0
Insurance service expenses -2,075,381
3,361
-2,072,020
-4,885,445
-8,240
-4,893,685
Incurred claims and other insurance service expenses -474,570
-474,570
-4,188,957
-4,188,957
Losses of onerous contracts and reversals of those losses
3,361
3,361
0
Changes fulfilment cash flows relating to LIC
0
-696,488
-8,240
-704,728
Amortisation of insurance acquisition costs -1,600,811
-1,600,811
0
Investment components 3,027
3,027
-3,027
-3,027
Insurance finance result 35
35
-28,872
1,457
-27,415
Unrealised gains and losses acc. to IFRS 17 0
0
311,989
19,765
331,754
Total changes in the statement of comprehensive income 5,444,482
3,361
5,447,843
-4,605,355
12,982
-4,592,373
Exchange rate differences -29,616
12
-29,604
82,199
-155
82,044
Changes in scope of consolidation -40,087
0
-40,087
-66,080
-1,779
-67,859
Total fulfilment cash flows -5,630,033
0
-5,630,033
4,130,545
0
4,130,545
Received premiums -7,747,331
-7,747,331
0
Claims and other insurance service expenses paid
0
4,130,545
4,130,545
Insurance acquisition costs 2,117,298
2,117,298
0
Net book value as at 31/12 -1,674,857
-5,253
-1,680,110
-5,347,564
-246,669
-5,594,233
Assets as of 31/12 8,502
0
8,502
-2,383
-50
-2,433
Liabilities as of 31/12 -1,683,360
-5,254
-1,688,614
-5,345,181
-246,619
-5,591,800
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
67
Development 2023 2022
General Measurement Model LRC / ARC LIC / AIC
LRC / ARC LIC / AIC
Excl. loss
component
Loss
component
Excl. loss
component
Loss
component
in
EUR ‘000
Assets as of 01/01 197,061
-7,707
-67,658
110,527
0
-23,695
Liabilities as of 01/01 -2,142,191
-44,971
-551,412
-2,367,175
-967
-573,091
Net book value as at 01/01 -1,945,130
-52,678
-619,070
-2,256,648
-967
-596,786
Insurance service result 1,320,060
18,970
-1,149,384
1,147,640
-52,668
-970,068
Insurance service revenue – issued business 1,006,668
0
0
842,397
0
0
Insurance contracts under FVA 225,762
305,085
Other insurance contracts 780,906
537,312
Insurance service expenses -157,893
18,970
-678,099
-144,392
-52,668
-520,433
Incurred claims and other insurance service expenses -46,659
-504,389
-62,465
-404,609
Losses of onerous contracts and reversals of those losses
18,970
-52,668
0
Changes fulfilment cash flows relating to LIC
-173,710
-115,824
Amortisation of insurance acquisition costs -111,234
-81,927
0
Investment components 471,285
-471,285
449,635
-449,635
Insurance finance result -126,196
-1,801
-139
-65,577
-186
-2,421
Unrealised gains and losses acc. to IFRS 17 -141,989
-9,622
508,124
38,171
Total changes in the statement of comprehensive income 1,051,875
17,169
-1,159,145
1,590,187
-52,854
-934,318
Exchange rate differences 76,176
-330
-486
16,235
1,143
30,426
Changes in scope of consolidation 0
0
0
-165,140
0
-6,582
Total fulfilment cash flows -1,201,442
0
1,048,151
-1,129,763
0
888,191
Received premiums -1,669,613
-1,549,057
Claims and other insurance service expenses paid
1,048,151
888,191
Insurance acquisition costs 468,171
419,294
Net book value as at 31/12 -2,018,521
-35,839
-730,550
-1,945,129
-52,678
-619,069
Assets as of 31/12 323,230
-8,993
-84,322
197,061
-7,707
-67,658
Liabilities as of 31/12 -2,341,749
-26,847
-646,227
-2,142,191
-44,971
-551,412
68
Annual Financial Report 2023
Development 2023 2022
Variable Fee Approach LRC / ARC LIC / AIC
LRC / ARC LIC / AIC
Excl. loss
component
Loss component
Excl. loss
component
Loss component
in
EUR ‘000
Assets as of 01/01 2,527
0
-2
74
0
0
Liabilities as of 01/01 -25,463,178
-22,949
-805,300
-30,621,409
-2,825
-730,157
Net book value as at 01/01 -25,460,651
-22,949
-805,302
-30,621,335
-2,825
-730,157
Insurance service result 3,684,140
-1,809
-3,209,591
4,215,381
-19,545
-3,660,014
Insurance service revenue – issued
business
1,383,670
0
0
1,378,450
0
0
Insurance contracts under FVA 1,211,339
1,252,515
Other insurance contracts 172,331
125,935
Insurance service expenses -178,344
-1,809
-730,777
-178,948
-19,545
-644,135
Incurred claims and other insurance
service expenses
-131,041
0
-740,131
-140,303
0
-651,459
Losses of onerous contracts and
reversals of those losses
0
-1,809
0
0
-19,545
0
Changes fulfilment cash flows relating
to LIC
0
0
9,354
0
0
7,324
Amortisation of insurance acquisition
costs
-47,303
0
0
-38,645
0
0
Investment components 2,478,814
0
-2,478,814
3,015,879
0
-3,015,879
Insurance finance result -866,765
149
-497,509
1,037,338
0
-217,103
Unrealised gains and losses
acc. to IFRS 17
-786,617
0
0
3,112,421
0
0
Total changes in the statement of
comprehensive income
2,030,758
-1,660
-3,707,100
8,365,140
-19,545
-3,877,117
Exchange rate differences -29,483
726
21,004
-67,099
-578
3,457
Changes in scope of consolidation 0
0
0
-457,289
0
-12,801
Total fulfilment cash flows -2,587,832
0
3,667,451
-2,680,068
0
3,811,315
Received premiums -3,086,382
-3,148,767
Claims and other insurance service
expenses paid
3,667,451
3,811,315
Insurance acquisition costs 498,550
468,699
Net book value as at 31/12 -26,047,208
-23,883
-823,947
-25,460,651
-22,948
-805,303
Assets as of 31/12 1,404
0
-20
2,527
0
-2
Liabilities as of 31/12 -26,048,612
-23,882
-823,927
-25,463,178
-22,949
-805,300
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
69
Developments of LRC / ARC and LIC / AIC by measurement components 2023
General Measurement Model PVFCF
RA
CSM
Total
in
EUR ‘000
Assets as of 01/01 576,413
-181,860
-272,856
121,697
Liabilities as of 01/01 -2,071,808
-172,563
-494,203
-2,738,574
Net book value as at 01/01 -1,495,395
-354,423
-767,059
-2,616,877
Insurance service result 188,431
-17,295
18,510
189,646
Changes that relate to current services -254,149
57,960
204,484
8,295
Amount of CSM recognised in profit or loss
204,484
204,484
Amount of RA for the risk expired recognised in profit or loss
65,370
65,370
Experience adjustments -254,149
-7,410
-261,559
Changes that relate to future services 280,695
-76,197
-185,974
18,524
Contracts initially recognised in the period 318,262
-95,045
-233,453
-10,236
Changes in estimates that adjust the CSM -65,615
17,374
47,479
-762
Changes in estimates that do not adjust the CSM 28,048
1,474
29,522
Changes that relate to past services 161,885
942
0
162,827
Changes in fulfilment cash flows relating to incurred claims 161,885
942
0
162,827
Insurance finance result -58,618
-9,210
-60,308
-128,136
Unrealised gains and losses acc. to IFRS 17 -120,568
-31,043
0
-151,611
Total changes in the statement of comprehensive income 9,245
-57,548
-41,798
-90,101
Exchange rate differences 24,578
6,004
44,779
75,361
Total fulfilment cash flows -153,291
0
0
-153,291
Received premiums -1,669,613
-1,669,613
Claims and other insurance service expenses paid as well as investment
components 1,048,151
1,048,151
Insurance acquisition costs 468,171
468,171
Net book value as at 31/12 -1,614,863
-405,967
-764,078
-2,784,908
Assets as of 31/12 745,643
-245,949
-269,779
229,915
Liabilities as of 31/12 -2,360,506
-160,018
-494,299
-3,014,823
70
Annual Financial Report 2023
Developments of LRC / ARC and LIC / AIC by measurement components 2022
General Measurement Model PVFCF
RA
CSM
Total
in
EUR ‘000
Assets as of 01/01 233,411
-52,716
-93,862
86,833
Liabilities as of 01/01 -2,097,427
-294,443
-549,363
-2,941,233
Net book value as at 01/01 -1,864,016
-347,159
-643,225
-2,854,400
Insurance service result 199,692
-38,243
-36,545
124,904
Changes that relate to current services -193,769
47,067
166,793
20,091
Amount of CSM recognised in profit or loss
166,793
166,793
Amount of RA for the risk expired recognised in profit or loss
53,448
53,448
Experience adjustments -193,769
-6,381
-200,150
Changes that relate to future services 237,945
-89,938
-203,338
-55,331
Contracts initially recognised in the period 221,434
-112,299
-144,485
-35,350
Changes in estimates that adjust the CSM 32,793
21,444
-58,853
-4,616
Changes in estimates that do not adjust the CSM -16,282
917
-15,365
Changes that relate to past services 155,516
4,628
0
160,144
Changes in fulfilment cash flows relating to incurred claims 155,516
4,628
0
160,144
Insurance finance result -29,763
-3,370
-35,051
-68,184
Unrealised gains and losses acc. to IFRS 17 499,478
46,817
0
546,295
Total changes in the statement of comprehensive income 669,407
5,204
-71,596
603,015
Exchange rate differences 35,140
-3,526
16,188
47,802
Changes in scope of consolidation -94,354
-8,942
-68,426
-171,722
Total fulfilment cash flows -241,572
0
0
-241,572
Received premiums -1,549,057
-1,549,057
Claims and other insurance service expenses paid as well as investment
components 888,191
888,191
Insurance acquisition costs 419,294
419,294
Net book value as at 31/12 -1,495,395
-354,423
-767,059
-2,616,877
Assets as of 31/12 576,413
-181,860
-272,856
121,697
Liabilities as of 31/12 -2,071,808
-172,563
-494,203
-2,738,574
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
71
Developments of LRC / ARC and LIC / AIC by measurement components 2023
Variable Fee Approach PVFCF
RA
CSM
Total
in
EUR ‘000
Assets as of 01/01 3,902
-693
-685
2,524
Liabilities as of 01/01 -20,141,490
-981,596
-5,168,341
-26,291,427
Net book value as at 01/01 -20,137,588
-982,289
-5,169,026
-26,288,903
Insurance service result 381,332
47,669
43,740
472,741
Changes that relate to current services -294,353
91,776
408,102
205,525
Amount of CSM recognised in profit or loss
408,102
408,102
Amount of RA for the risk expired recognised in profit or loss
95,720
95,720
Experience adjustments -294,353
-3,944
-298,297
Changes that relate to future services 259,602
-55,722
-364,362
-160,482
Contracts initially recognised in the period 237,171
-58,620
-180,602
-2,051
Changes in estimates that adjust the CSM 8,618
0
-183,760
-175,142
Changes in estimates that do not adjust the CSM 13,813
2,898
16,711
Changes that relate to past services 416,083
11,615
0
427,698
Changes in fulfilment cash flows relating to incurred claims 416,083
11,615
427,698
Insurance finance result -1,302,115
-63,284
1,275
-1,364,124
Unrealised gains and losses acc. to IFRS 17 -786,617
0
0
-786,617
Total changes in the statement of comprehensive income -1,707,400
-15,615
45,015
-1,678,000
Exchange rate differences 15,833
-27,882
4,294
-7,755
Total fulfilment cash flows 1,079,619
0
0
1,079,619
Received premiums -3,086,382
-3,086,382
Claims and other insurance service expenses paid as well as investment
components 3,667,451
3,667,451
Insurance acquisition costs 498,550
498,550
Net book value as at 31/12 -20,749,536
-1,025,786
-5,119,717
-26,895,039
Assets as of 31/12 6,578
-1,542
-3,653
1,383
Liabilities as of 31/12 -20,756,114
-1,024,244
-5,116,064
-26,896,422
72
Annual Financial Report 2023
Developments of LRC / ARC and LIC / AIC by measurement components 2022
Variable Fee Approach PVFCF
RA
CSM
Total
in
EUR ‘000
Assets as of 01/01 178
-16
-88
74
Liabilities as of 01/01 -25,577,919
-1,253,840
-4,522,632
-31,354,391
Net book value as at 01/01 -25,577,741
-1,253,856
-4,522,720
-31,354,317
Insurance service result 993,882
39,425
-497,486
535,821
Changes that relate to current services -544,966
104,328
422,955
-17,683
Amount of CSM recognised in profit or loss
422,955
422,955
Amount of RA for the risk expired recognised in profit or loss
104,328
104,328
Experience adjustments -544,966
-544,966
Changes that relate to future services 967,764
-64,903
-920,441
-17,580
Contracts initially recognised in the period 189,061
-62,957
-127,713
-1,609
Changes in estimates that adjust the CSM 794,049
0
-792,728
1,321
Changes in estimates that do not adjust the CSM -15,346
-1,946
-17,292
Changes that relate to past services 571,084
0
0
571,084
Changes in fulfilment cash flows relating to incurred claims 571,084
571,084
Insurance finance result 556,890
266,804
-3,459
820,235
Unrealised gains and losses acc. to IFRS 17 3,112,421
0
0
3,112,421
Total changes in the statement of comprehensive income 4,663,193
306,229
-500,945
4,468,477
Exchange rate differences -58,404
-9,410
3,594
-64,220
Changes in scope of consolidation -295,883
-25,252
-148,955
-470,090
Total fulfilment cash flows 1,131,247
0
0
1,131,247
Received premiums -3,148,767
-3,148,767
Claims and other insurance service expenses paid as well as investment
components 3,811,315
3,811,315
Insurance acquisition costs 468,699
468,699
Net book value as at 31/12 -20,137,588
-982,289
-5,169,026
-26,288,903
Assets as of 31/12 3,902
-693
-685
2,524
Liabilities as of 31/12 -20,141,490
-981,596
-5,168,341
-26,291,427
As an asset recognised insurance acquisition costs
Development 2023
2022
in
EUR ‘000
As of 01/01 10,484
25,939
Allocation 4,538
2,945
Release -10,509
-19,312
Exchange rate differences -725
489
Changes in scope of consolidation 0
423
As of 31/12 3,788
10,484
No facts or circumstances were identified either in the current year or in the previous year that would have indicated that
the item as an asset recognised insurance acquisition should have been impaired.
In the current and previous year, no insurance acquisition costs are allocated to future groups of insurance contracts, as it
is not expected any renewal contracts to arise from new contracts issued in the period.
The expected derecognition of acquisition costs recognised as assets takes place within one year and amounts to
EUR 3,788,000 (EUR 10,484,000).
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
73
Insurance service revenue 31/12/2023 31/12/2022
GMM
VFA
Total
GMM
VFA
Total
in
EUR ‘000
Amounts relating to the changes in the LRC incl. ARC 582,357
699,890
1,282,247
481,392
721,763
1,203,155
Expected insurance service expenses 266,393
291,024
557,417
211,850
240,920
452,770
Change in the risk adjustment for nonfinancial risk 65,370
95,720
161,090
53,448
104,328
157,776
Amount of CSM recognised in profit or loss 204,484
408,102
612,586
166,793
422,955
589,748
Other amounts 46,110
-94,956
-48,846
49,301
-46,440
2,861
Amounts relating to recovery of insurance acquisition costs 424,311
683,780
1,108,091
361,005
656,687
1,017,692
Allocation of the portion of premiums that relate to the recovery of
insurance acquisition costs
424,311
683,780
1,108,091
361,005
656,687
1,017,692
Total 1,006,668
1,383,670
2,390,338
842,397
1,378,450
2,220,847
Contracts initially recognised 31/12/2023 31/12/2022
General Measurement Model Non-onerous
Onerous
Total
Non-onerous
Onerous
Total
in
EUR ‘000
Own-written -7,002
-3,234
-10,236
-5,900
-29,450
-35,350
Estimates of present value of future cash outflows -1,501,615
-220,586
-1,722,201
-1,050,543
-741,022
-1,791,565
thereof estimates of insurance acquisition costs -332,238
-24,679
-356,917
-169,408
-172,694
-342,102
Estimates of present value of future cash inflows 1,817,483
222,980
2,040,463
1,257,500
755,499
2,012,999
Risk Adjustment for nonfinancial risks -89,417
-5,628
-95,045
-68,372
-43,927
-112,299
Contractual Service Margin -233,453
0
-233,453
-144,485
0
-144,485
Acquired 0
0
0
-171,722
0
-171,722
Estimates of present value of future cash outflows 0
0
0
-292,526
0
-292,526
thereof estimates of insurance acquisition costs 0
0
0
-35,655
0
-35,655
Estimates of present value of future cash inflows 0
0
0
198,172
0
198,172
Risk Adjustment for nonfinancial risks 0
0
0
-8,942
0
-8,942
Contractual Service Margin 0
0
0
-68,426
0
-68,426
Total -7,002
-3,234
-10,236
-177,622
-29,450
-207,072
Contracts initially recognised 31/12/2023 31/12/2022
Variable Fee Approach Non-onerous
Onerous
Total
Non-onerous
Onerous
Total
in
EUR ‘000
Own-written -2,537
486
-2,051
-847
-762
-1,609
Estimates of present value of future cash outflows -1,955,842
-71,315
-2,027,157
-2,160,130
-13,532
-2,173,662
thereof estimates of insurance acquisition costs -269,127
-10,180
-279,307
-258,933
-2,182
-261,115
Estimates of present value of future cash inflows 2,189,650
74,678
2,264,328
2,349,181
13,542
2,362,723
Risk Adjustment for nonfinancial risks -55,743
-2,877
-58,620
-62,185
-772
-62,957
Contractual Service Margin -180,602
-180,602
-127,713
-127,713
Acquired 0
0
0
-470,090
0
-470,090
Estimates of present value of future cash outflows 0
0
0
-454,930
0
-454,930
thereof estimates of insurance acquisition costs 0
0
0
-18,806
0
-18,806
Estimates of present value of future cash inflows 0
0
0
159,047
0
159,047
Risk Adjustment for nonfinancial risks 0
0
0
-25,252
0
-25,252
Contractual Service Margin 0
0
0
-148,955
0
-148,955
Total -2,537
486
-2,051
-470,937
-762
-471,699
74
Annual Financial Report 2023
CSM expected to be recognised in profit or loss 31/12/2023
Insurance contracts issued 1
st
year
2
nd
year
3
rd
year
4
th
year
5
th
year and
later
Total
in
EUR ‘000
GMM -144,551
-99,742
-80,610
-66,264
-372,911
-764,078
Assets for Remaining Coverage (ARC) -39,250
-32,224
-27,666
-23,238
-147,401
-269,779
Liability for Remaining Coverage (LRC) -105,301
-67,518
-52,944
-43,026
-225,510
-494,299
VFA -386,096
-348,868
-319,752
-296,568
-3,768,433
-5,119,717
Assets for Remaining Coverage (ARC) -62
-98
-133
-163
-3,197
-3,653
Liability for Remaining Coverage (LRC) -386,034
-348,770
-319,619
-296,405
-3,765,236
-5,116,064
Total -530,647
-448,610
-400,362
-362,832
-4,141,344
-5,883,795
CSM expected to be recognised in profit or loss 31/12/2022
Insurance contracts issued 1
st
year
2
nd
year
3
rd
year
4
th
year
5
th
year and
later
Total
in
EUR ‘000
GMM -156,456
-101,074
-92,879
-82,566
-334,084
-767,059
Assets for Remaining Coverage (ARC) -42,636
-33,515
-27,872
-23,459
-145,374
-272,856
Liability for Remaining Coverage (LRC) -113,820
-67,559
-65,007
-59,107
-188,710
-494,203
VFA -407,638
-365,891
-337,608
-310,749
-3,747,140
-5,169,026
Assets for Remaining Coverage (ARC) -50
-50
-47
-44
-494
-685
Liability for Remaining Coverage (LRC) -407,588
-365,841
-337,561
-310,705
-3,746,646
-5,168,341
Total -564,094
-466,965
-430,487
-393,315
-4,081,224
-5,936,085
1.4. Reinsurance contracts held
Development 2023 2022
All measurement models LRC / ARC LIC / AIC
LRC / ARC LIC / AIC
Excl. LoReCo
LoReCo
Excl. LoReCo
LoReCo
in
EUR ‘000
Assets as of 01/01 -37,144
17,499
1,894,154
-67,049
6
1,719,297
Liabilities as of 01/01 -53,389
559
15,089
-38,174
0
-26,412
Net book value as at 01/01 -90,533
18,058
1,909,243
-105,223
6
1,692,885
Insurance service result -1,320,660
-13,421
885,654
-1,254,805
16,788
1,164,999
Insurance finance result -3,174
8
44,794
9
1,261
15,453
Unrealised gains and losses acc. to IFRS 17 -5,247
-833
40,996
12,410
-720
-142,444
Total changes in the statement of comprehensive income -1,329,081
-14,246
971,444
-1,242,386
17,329
1,038,008
Exchange rate differences 26,494
752
-14,504
20,081
723
33,154
Changes in scope of consolidation 0
0
0
-7,161
0
-1,268
Total fulfilment cash flows 1,318,092
0
-1,011,600
1,244,157
0
-853,535
Net book value as at 31/12 -75,028
4,564
1,854,583
-90,532
18,058
1,909,244
Assets as of 31/12 -39,390
4,142
1,843,546
-37,144
17,499
1,894,154
Liabilities as of 31/12 -35,639
422
11,037
-53,389
559
15,089
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
75
Development 2023
Premium Allocation Approach LRC / ARC LIC / AIC
Excl. LoReCo
LoReCo
Total
PVFCF
RA
Total
in
EUR ‘000
Assets as of 01/01 46,406
-1
46,405
1,257,568
28,041
1,285,609
Liabilities as of 01/01 -22,244
0
-22,244
16,198
210
16,408
Net book value as at 01/01 24,162
-1
24,161
1,273,766
28,251
1,302,017
Insurance service result -902,442
5
-902,437
565,108
-2,829
562,279
Insurance service revenue – issued business -931,526
0
-931,526
0
0
0
Other insurance contracts -931,526
-931,526
Insurance service expenses 45,835
5
45,840
548,357
-2,829
545,528
Incurred claims and other insurance service expenses 45,835
45,835
713,535
713,535
Losses of onerous contracts and reversals of those losses
5
5
Changes fulfilment cash flows relating to LIC
0
-165,532
-2,829
-168,361
Changes in risk of non-performance by issuer of
reinsurance contracts
0
354
354
Investment components -16,751
-16,751
16,751
16,751
Insurance finance result -198
-198
38,559
1,673
40,232
Unrealised gains and losses
acc. to IFRS 17
0
33,166
33,166
Total changes in the statement of comprehensive income -902,640
5
-902,635
636,833
-1,156
635,677
Exchange rate differences 11,725
3
11,728
-1,549
-160
-1,709
Total fulfilment cash flows 930,675
930,675
-733,557
-733,557
Received premiums 930,675
930,675
Claims and other insurance service expenses paid as well as
investment components
-733,557
-733,557
Net book value as at 31/12 63,922
7
63,929
1,175,493
26,935
1,202,428
Assets as of 31/12 67,552
6
67,558
1,163,020
26,854
1,189,874
Liabilities as of 31/12 -3,631
1
-3,630
12,473
82
12,555
76
Annual Financial Report 2023
Development 2022
Premium Allocation Approach LRC / ARC LIC / AIC
Excl. LoReCo
LoReCo
Total
PVFCF
RA
Total
in
EUR ‘000
Assets as of 01/01 2,720
6
2,726
969,625
28,802
998,427
Liabilities as of 01/01 -10,527
0
-10,527
-23,479
398
-23,081
Net book value as at 01/01 -7,807
6
-7,801
946,146
29,200
975,346
Insurance service result -885,836
-7
-885,843
863,762
522
864,284
Insurance service revenue – issued business -907,486
0
-907,486
0
0
0
Other insurance contracts -907,486
-907,486
Insurance service expenses 31,196
-7
31,189
854,216
522
854,738
Incurred claims and other insurance service expenses 31,196
31,196
555,987
0
555,987
Losses of onerous contracts and reversals of those losses
-7
-7
0
0
0
Changes fulfilment cash flows relating to LIC
0
299,090
522
299,612
Changes in risk of non-performance by issuer of
reinsurance contracts
0
-861
0
-861
Investment components -9,546
-9,546
9,546
0
9,546
Insurance finance result 78
78
16,342
54
16,396
Unrealised gains and losses
acc. to IFRS 17
0
0
-101,524
0
-101,524
Total changes in the statement of comprehensive income -885,758
-7
-885,765
778,580
576
779,156
Exchange rate differences 19,605
0
19,605
33,394
-1,487
31,907
Changes in scope of consolidation -1,163
0
-1,163
-2,990
-38
-3,028
Total fulfilment cash flows 899,286
0
899,286
-481,364
0
-481,364
Received premiums 899,286
899,286
Claims and other insurance service expenses paid as well as
investment components
-481,364
-481,364
Net book value as at 31/12 24,163
-1
24,162
1,273,766
28,251
1,302,017
Assets as of 31/12 46,406
-1
46,405
1,257,568
28,041
1,285,609
Liabilities as of 31/12 -22,244
0
-22,244
16,198
210
16,408
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
77
Development 2023 2022
General Measurement Model LRC / ARC LIC / AIC
LRC / ARC LIC / AIC
Excl. LoReCo
LoReCo
Excl. LoReCo
LoReCo
in
EUR ‘000
Assets as of 01/01 -83,550
17,500
608,545
-69,769
0
720,870
Liabilities as of 01/01 -31,145
559
-1,319
-27,647
0
-3,331
Net book value as at 01/01 -114,695
18,059
607,226
-97,416
0
717,539
Insurance service result -418,218
-13,426
323,375
-368,969
16,795
300,715
Insurance service revenue – issued business -407,565
0
0
-339,610
0
0
Insurance contracts under FVA -27,416
-69,102
Other insurance contracts -380,149
-270,508
Insurance service expenses 3,859
-13,426
308,863
555
16,795
270,801
Incurred claims and other insurance service expenses 2,867
0
220,334
-160
0
297,421
Losses of onerous contracts and reversals of those losses 0
-13,426
0
0
16,795
0
Changes fulfilment cash flows relating to LIC 0
0
88,775
0
0
-26,827
Changes in risk of non-performance by issuer of
reinsurance contracts
992
0
-246
715
0
207
Investment components -14,512
0
14,512
-29,914
0
29,914
Insurance finance result -2,976
8
4,562
-69
1,261
-943
Unrealised gains and losses
acc. to IFRS 17
-5,247
-833
7,830
12,410
-720
-40,920
Total changes in the statement of comprehensive income -426,441
-14,251
335,767
-356,628
17,336
258,852
Exchange rate differences 14,769
749
-12,795
476
723
1,247
Changes in scope of consolidation 0
0
0
-5,998
0
1,760
Total fulfilment cash flows 387,417
0
-278,043
344,871
0
-372,171
Received premiums 387,417
344,871
Claims and other insurance service expenses paid as well as
investment components
-278,043
-372,171
Net book value as at 31/12 -138,950
4,557
652,155
-114,695
18,059
607,227
Assets as of 31/12 -106,942
4,136
653,672
-83,550
17,500
608,545
Liabilities as of 31/12 -32,008
421
-1,518
-31,145
559
-1,319
78
Annual Financial Report 2023
Developments of LRC / ARC and LIC / AIC by measurement components 2023
General Measurement Model PVFCF
RA
CSM
Total
in
EUR
‘000
Assets as of 01/01 465,091
8,061
69,343
542,495
Liabilities as of 01/01 -62,364
1,849
28,610
-31,905
Net book value as at 01/01 402,727
9,910
97,953
510,590
Insurance service result -104,461
8,589
-12,397
-108,269
Changes that relate to current services -113,928
-59,437
-12,051
-185,416
Amount of CSM recognised in profit or loss
-12,051
-12,051
Amount of RA for the risk expired recognised in profit or loss
-62,087
-62,087
Experience adjustments -113,928
2,650
-111,278
Changes that relate to future services -78,026
63,490
-346
-14,882
Contracts initially recognised in the period -98,321
62,655
55,510
19,844
Changes in estimates that adjust the CSM 20,295
835
-55,856
-34,726
Changes that relate to past services 86,748
4,536
0
91,284
Changes in fulfilment cash flows relating to incurred claims 86,748
4,536
91,284
Changes in risk of non-performance by issuer of reinsurance contracts 745
745
Insurance finance result -6,249
2,362
5,481
1,594
Unrealised gains and losses acc. to IFRS 17 2,774
-1,024
1,750
Total changes in the statement of comprehensive income -107,936
9,927
-6,916
-104,925
Exchange rate differences 8,022
-808
-4,491
2,723
Total fulfilment cash flows 109,374
0
0
109,374
Received premiums 387,417
387,417
Claims and other insurance service expenses paid as well as investment
components -278,043
-278,043
Net book value as at 31/12 412,187
19,029
86,546
517,762
Assets as of 31/12 473,577
16,955
60,335
550,867
Liabilities as of 31/12 -61,390
2,074
26,211
-33,105
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
79
Developments of LRC / ARC and LIC / AIC by measurement components 2022
General Measurement Model PVFCF
RA
CSM
Total
in
EUR ‘000
Assets as of 01/01 603,654
10,432
37,014
651,100
Liabilities as of 01/01 -57,413
833
25,602
-30,978
Net book value as at 01/01 546,241
11,265
62,616
620,122
Insurance service result -82,190
-646
31,377
-51,459
Changes that relate to current services 789
-45,955
4,398
-40,768
Amount of CSM recognised in profit or loss
4,398
4,398
Amount of RA for the risk expired recognised in profit or loss
-47,540
-47,540
Experience adjustments 789
1,585
2,374
Changes that relate to future services -56,023
46,342
26,979
17,298
Contracts initially recognised in the period -46,584
50,855
21,185
25,456
Changes in estimates that adjust the CSM -9,439
-4,513
5,794
-8,158
Changes that relate to past services -27,878
-1,033
0
-28,911
Changes in fulfilment cash flows relating to incurred claims -27,878
-1,033
0
-28,911
Changes in risk of non-performance by issuer of reinsurance contracts 922
922
Insurance finance result -2,112
-98
2,458
248
Unrealised gains and losses acc. to IFRS 17 -28,231
-999
0
-29,230
Total changes in the statement of comprehensive income -112,533
-1,743
33,835
-80,441
Exchange rate differences 3,525
-359
-719
2,447
Changes in scope of consolidation -7,206
747
2,221
-4,238
Total fulfilment cash flows -27,300
0
0
-27,300
Received premiums 344,871
344,871
Claims and other insurance service expenses paid as well as investment
components -372,171
-372,171
Net book value as at 31/12 402,727
9,910
97,953
510,590
Assets as of 31/12 465,091
8,061
69,343
542,495
Liabilities as of 31/12 -62,364
1,849
28,610
-31,905
Contracts initially recognised 31/12/2023 31/12/2022
General Measurement Model Own-written
Acquired
Total
Own-written
Acquired
Total
in
EUR ‘000
Estimates of present value of future cash
outflows -460,557
0
-460,557
-318,608
-14,456
-333,064
thereof estimates of insurance
acquisition costs 2,160
0
2,160
-2,498
0
-2,498
Estimates of present value of future cash
inflows 362,236
0
362,236
272,024
7,250
279,274
Risk Adjustment for nonfinancial risks 62,655
0
62,655
50,855
747
51,602
Contractual Service Margin 55,510
0
55,510
21,185
2,221
23,406
Total 19,844
0
19,844
25,456
-4,238
21,218
80
Annual Financial Report 2023
CSM expected to be recognised in profit or loss 31/12/2023
Reinsurance contracts held 1
st
year
2
nd
year
3
rd
year
4
th
year
5
th
year and
later
Total
in
EUR ‘000
GMM 19,394
11,751
9,266
7,800
38,335
86,546
Assets for Remaining Coverage (ARC) 17,244
6,974
5,512
4,582
26,023
60,335
Liability for Remaining Coverage (LRC) 2,150
4,777
3,754
3,218
12,312
26,211
CSM expected to be recognised in profit or loss 31/12/2022
Reinsurance contracts held 1
st
year
2
nd
year
3
rd
year
4
th
year
5
th
year and
later
Total
in
EUR ‘000
GMM 16,706
7,714
7,179
7,046
59,308
97,953
Assets for Remaining Coverage (ARC) 17,959
5,780
5,003
4,235
36,366
69,343
Liability for Remaining Coverage (LRC) -1,253
1,934
2,176
2,811
22,942
28,610
1.5. Underlying assets of direct profit participating contracts
Composition 31/12/2023 31/12/2022
Book value
Fair value
Book value
in
EUR ‘000
Items shown as assets 25,119,588
25,435,326
24,793,146
Cash and cash equivalents 335,674
335,674
491,361
Loans 560,776
540,828
614,192
Bonds 16,136,549
16,119,462
15,827,878
Term deposits 107,599
108,549
135,402
Funds 6,966,366
6,960,900
6,809,790
Derivatives 1,375
1,375
2,565
Shares 395,273
395,273
352,867
Shares in participating companies 12,473
12,473
15,818
Shares in affiliated non-consolidated companies 1,264
1,264
1,420
Receivables 91,801
93,065
50,619
Investment property 432,260
682,286
414,214
Owner-occupied property 78,178
184,177
77,020
Items shown as liabilities 547
547
517
Liabilities for derivatives 547
547
517
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
81
Amounts recognised in profit or loss 2023
2022
in
EUR ‘000
Underlying Assets 1,478,166
-865,540
Interest revenues using the effective interest rate method 557,255
414,274
Realised gains and losses from financial assets measured at AC -34
-1,862
Impairment losses incl. reversal gains on financial instruments -4,579
-52,820
Other result from financial instruments 909,162
-1,233,741
Financial result from owner occupied properties and investment properties 16,362
8,609
Non Underlying Assets 449,824
101,407
Interest revenues using the effective interest rate method 338,546
300,623
Realised gains and losses from financial assets measured at AC 114
-2,380
Impairment losses incl. reversal gains on financial instruments -51,905
-52,122
Other result from financial instruments 144,509
-181,668
Financial result from owner occupied properties and investment properties 2,094
18,667
Result from associated consolidated companies 16,466
18,287
Insurance finance result – issued business -1,698,751
724,671
Interest accreted to insurance contracts using current financial assumptions -904,897
-45,698
Interest accreted to insurance contracts using locked-in rate at initial recognition -22,095
-9,673
Changes in interest rates and other financial assumptions -697,235
840,156
Exchange rate differences -74,524
-60,114
Insurance finance result – reinsurance held 41,628
16,722
Interest accreted to insurance contracts using current financial assumptions 38,317
19,362
Interest accreted to insurance contracts using locked-in rate at initial recognition 1,705
101
Changes in interest rates and other financial assumptions 6,517
-2,993
Exchange rate differences -4,911
252
Total 270,867
-22,740
Amounts recognised directly in equity 2023
2022
in
EUR ‘000
Underlying Assets 899,840
-2,983,305
Non Underlying Assets 391,151
-1,132,103
IFRS 17 – Insurance contracts issued -1,067,611
3,990,469
IFRS 17 – Reinsurance contracts held 34,915
-130,755
Total 258,295
-255,694
Statement of comprehensive income 2023
2022
in
EUR ‘000
Recognised in profit or loss 1,478,966
1,116,062
Insurance service result 1,208,099
1,138,802
Investment result incl. result from associated consolidated companies and properties 1,927,990
-764,133
Insurance finance result -1,657,123
741,393
Recognised directly in equity 258,295
-255,694
Unrealised and realised gains and losses acc. to IFRS 9 1,290,991
-4,115,408
Unrealised gains and losses acc. to IFRS 17 -1,032,696
3,859,714
Total 1,737,261
860,368
82
Annual Financial Report 2023
1.6. Portfolio performance from IFRS 17 transition date (01/01/2022)
Insurance contracts issued, measured at fair value (GMM and VFA)
Development 2023 2022
GMM
VFA
GMM
VFA
in
EUR ‘000
Contractual Service Margin as of 01/01 -386,863
-4,817,609
-458,305
-4,412,645
Insurance service result 69,718
218,752
64,711
-422,979
Changes that relate to current services 70,129
367,148
92,409
392,774
Amount of CSM recognised in profit or loss 70,129
367,148
92,409
392,774
Changes that relate to future services -411
-148,396
-27,698
-815,753
Changes in estimates that adjust the CSM -411
-148,396
-27,698
-815,753
Insurance finance result 14,834
-5,796
-24,416
-2,761
Total changes in the statement of comprehensive income 84,552
212,956
40,295
-425,740
Exchange rate differences -19,367
-14,164
31,147
20,776
Contractual Service Margin as of 31/12 -321,678
-4,618,817
-386,863
-4,817,609
Reinsurance contracts held, measured at fair value (GMM)
Development 2023
2022
in
EUR ‘000
Contractual Service Margin as of 01/01 63,716
62,531
Insurance service result -12,688
-734
Changes that relate to current services -9,387
-17,872
Amount of CSM recognised in profit or loss -9,387
-17,872
Changes that relate to future services -3,301
17,138
Changes in estimates that adjust the CSM -3,301
17,138
Insurance finance result -937
2,058
Total changes in the statement of comprehensive income -13,625
1,324
Exchange rate differences -402
-139
Contractual Service Margin as of 31/12 49,689
63,716
Underlying items
The following table shows the amounts recognised as Other comprehensive income in the statement of comprehensive
income. These originate from underlying financial assets from insurance contracts which were measured using the FVA at
initial recognition.
Development 2023
2022
in
EUR ‘000
As of 01/01 1,627,853
-1,289,096
Amounts recognised directly in equity -796,005
2,802,419
Amounts recognised in profit or loss -38,083
110,267
Exchange rate differences 28
4,263
As of 31/12 793,793
1,627,853
thereof included balance of risk provision -121,707
-117,248
The change in risk provision is reported in the item Amounts recognised directly in equity.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
83
1.7. Risk of concentration
Insurance contracts liabilities issued 31/12/2023
31/12/2022
in
EUR ‘000
Austria 23,370,578
23,248,325
Czech Republic 2,851,071
2,686,728
Poland 2,004,101
1,650,616
Albania incl. Kosovo 83,469
60,198
Baltic states 862,750
745,357
Bosnia-Herzegovina 115,348
107,065
Bulgaria 254,262
232,739
Croatia 433,592
434,314
Moldova 17,210
10,539
North Macedonia 19,778
19,079
Romania 924,606
738,917
Serbia 313,779
303,946
Slovakia 1,563,953
1,480,816
Ukraine 95,723
85,535
Hungary 1,308,700
1,064,430
Germany 766,302
709,871
Georgia 20,400
19,643
Liechtenstein 882,881
862,785
Türkiye 795,305
612,688
Group Functions 1,120,284
1,296,783
Total 37,804,092
36,370,374
Gross written premiums based on IFRS 17 2023
in
EUR ‘000
Motor third party liability insurance 2,214,614
Motor own damage insurance (Casco) 1,858,667
Other property and casualty insurance 6,796,547
Health insurance 898,086
Unit- and index-linked life insurance 600,375
Life insurance with profit participation 2,358,228
Life insurance without profit participation 983,620
Consolidation -1,926,119
Total 13,784,018
Gross written premiums based on IFRS 4 2022
in
EUR ‘000
Motor third party liability insurance 1,936,231
Motor own damage insurance (Casco) 1,627,362
Other property and casualty insurance 6,111,691
Life insurance – regular premiums 2,980,251
Life insurance – single premiums 860,156
Health insurance 834,951
Consolidation -1,791,400
Total 12,559,242
84
Annual Financial Report 2023
1.8. Insurance and market risks – sensitivity analysis
The following sensitivities are calculated as effects on the capital of the Group solvency balance sheet in accordance with
Solvency II. The essential aim is to establish risk-orientated systems under Solvency II and improve the risk management
process. To achieve this, both quantitative and qualitative requirements must be met. VIG Insurance Group has established
management processes with this objective in mind and uses them for controlling purposes.
Differences between Solvency II and IFRS 17 calculations for the insurance contracts arise mainly because of the following:
• different scope of costs to be taken into consideration,
• contract boundaries and
• discount rates applied.
In accordance with IFRS 17, only costs which can be directly allocated to an insurance contract can be taken into
consideration, whereas under the Solvency II regime the total costs approach is applied when evaluating underwriting
obligations.
Both regimes take into account the period of the contracts (contract boundaries) in the modelling of the future cash flows.
When deriving the period of contracts, Solvency II follows primarily the risk perspective, whereas IFRS 17 focuses on the
insurance contract itself. Accordingly, the different approach is also applied to the supplementary insurance contracts in
those cases in which they are equivalent to the underlying main insurance contract in accordance with IFRS 17. There is
also a difference with the established term of ceded reinsurance contracts. Under Solvency II, the period of the contract
follows the primary insurance contract, whereas IFRS 17 recognises the contractual period of the reinsurance contract.
In the case of discounting the cash flows established for the period, Solvency II applies strict and mandatory regulatory
definitions that must be observed. By contrast, both the derivation of the interest rate and the risk margin are determined
by the company itself based on the IFRS 17 principles.
Despite the differences listed, VIG Insurance Group considers the risk sensitivities established using Solvency II to be an
appropriate basis for the estimates in accordance with IFRS 17.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
85
Sensitivities Own funds Change
in
EUR ‘000
in %
Base 10,344,756
Underwriting risk
Life insurance
Mortality rates +5% -18,251
-0.18
-5% 15,858
0.15
Expenses / Admin costs -10% 174,634
1.69
Lapse rates +100% -328,934
-3.18
-50% 259,501
2.51
Non life insurance
Ultimate loss ratio (LIC) +1% -60,947
-0.59
-1% 58,427
0.56
Market risks
Interest rate +100bp 166,158
1.61
-100bp -399,000
-3.86
Equity prices -25% -321,124
-3.10
Spreads for government and corporate bonds +50bp -448,404
-4.33
The changes in the base value shown have to be considered isolated in each case. This means that different sensitivities
can not be added together to derive a cumulative change in the base value.
1.9. Insurance risk – Claims development
Premium Allocation Approach
LIC issued 2022
2023
Total
in
EUR ‘000
Estimated undiscounted cash outflows excl. RA
At the end of accident year -5,606,957
-5,670,565
One year later -5,487,715
Cumulative claims paid 4,252,381
2,682,908
Liability – accident years from 2022 -1,235,334
-2,987,657
-4,222,991
Liability – accident year 2021
-760,712
Liability – accident years before 2021
-1,801,944
Effect of discounting
1,034,667
Risk Adjustment
-268,349
Total
-6,019,329
1.10. Credit risk
The maximum credit risk that VIG Insurance Group is exposed to corresponds to the amounts recognised in the IFRS
consolidated balance sheet.
86
Annual Financial Report 2023
Share of the reinsurer's rating 31/12/2023
31/12/2022
in %
AAA 4.95
20.44
AA 39.53
27.42
A 48.62
47.76
BBB 2.58
1.89
BB and lower 0.97
0.67
No rating 3.35
1.82
Due to the good credit quality of the reinsurers of VIG Insurance Group, on 31 December 2023 and 31 December 2022 no
impairments for the shares of the reinsurers were required.
1.11. Liquidity risk
Undiscounted net cash-flows 31/12/2023
Insurance contracts issued GMM
VFA
Total
in
EUR ‘000
One year later -199,964
-1,441,786
-1,641,750
Two years later -94,897
-1,140,696
-1,235,593
Three years later -62,586
-995,471
-1,058,057
Four years later -95,365
-936,965
-1,032,330
Five years later -97,123
-1,066,291
-1,163,414
Beyond five years -2,824,914
-33,121,160
-35,946,074
Total -3,374,849
-38,702,369
-42,077,218
Undiscounted net cash-flows 31/12/2023
Reinsurance contracts held GMM
in
EUR ‘000
One year later 236,062
Two years later 115,894
Three years later 57,721
Four years later 35,370
Five years later 21,212
Beyond five years 77,463
Total 543,722
The liquidity risk arising from amounts payable on demand is simulated using the effect of the mass cancellation of life
insurance policies. The parameters for this are applied in accordance with Article 142 (6) of EU Commission Delegated
Regulation 2015/35. In the event of mass cancellation, the best estimate reserves increase by EUR 1,573.2 million. Under
IFRS, the release of the Contractual Service Margin would have a significant positive countereffect on the income statement.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
87
2. FINANCIAL ASSETS AND LIABILITIES AS WELL AS OTHER BALANCE SHEET ITEMS EVALUATED ACCORDING TO IFRS 9
The accounting policies used are presented in Note 25.4. Financial instruments starting on page 163.
Short description Long description
Measured at AC Measured at Amortised Cost
Measured at FVtOCI Measured at Fair Value through Other Comprehensive Income
Measured at FVtPL Measured at Fair Value through Profit and Loss
Designated measured at FVtOCI Designated measured at Fair Value through Other Comprehensive Income
Designated measured at FVtPL Designated measured at Fair Value through Profit and Loss
ECL Expected Credit Loss
FV Fair Value
SPPI Solely Payments of Principal and Interest
Mandatorily measured at FVtOCI Mandatorily measured at Fair Value through Other Comprehensive Income
Mandatorily measured at FVtPL Mandatorily measured at Fair Value through Profit and Loss
2.1. Overview
Measurement and balance of risk provision 31/12/2023 31/12/2022
Book value
Risk provision gross
Book value
Risk provision gross
in
EUR ‘000
Measured at AC
Assets 5,029,612
-89,228
5,475,609
-37,208
Cash and cash equivalents 1,558,107
2,315,219
Financial assets 3,031,131
-67,811
2,748,328
-30,848
IFRS 9 measured receivables 440,374
-21,417
412,062
-6,360
Liabilities -2,981,684
-3,467,443
Financial liabilities -2,394,470
-2,909,423
IFRS 9 measured liabilities -587,214
-558,020
Measured at FVtOCI
Mandatorily measured at FVtOCI 24,021,071
-172,613
22,363,774
-170,854
Financial assets 24,021,071
-172,613
22,363,774
-170,854
Designated measured at FVtOCI 399,293
237,442
Financial assets 399,293
237,442
Measured at FVtPL
Mandatorily measured at FVtPL
Financial assets 10,393,733
10,364,419
Financial liabilities -1,296
-2,619
Designated measured at FVtPL
Financial assets 212,822
130,870
Financial liabilities -555
-572
88
Annual Financial Report 2023
2.2. Categories and measurements
Assets 31/12/2023
31/12/2022
in
EUR ‘000
Measured at AC 4,940,384
5,438,401
Cash and cash equivalents 1,558,107
2,315,219
Loans 742,306
788,952
Bonds 978,491
888,080
Term deposits 1,242,523
1,040,448
IFRS 9 measured receivables 418,957
405,702
Measured at FVtOCI 24,420,364
22,601,216
Mandatorily measured at FVtOCI 24,021,071
22,363,774
Bonds 24,021,071
22,363,774
Designated measured at FVtOCI 399,293
237,442
Shares and shares in companies 399,293
237,442
Shares 38,259
33,222
Shares in participating companies 70,088
68,930
Shares in affiliated non-consolidated companies 290,946
135,290
Measured at FVtPL 10,606,555
10,495,289
Mandatorily measured at FVtPL 10,393,733
10,364,419
Shares and shares in companies 484,219
477,686
Shares 450,075
427,950
Shares in participating companies 30,116
35,528
Shares in affiliated non-consolidated companies 4,028
14,208
Bonds 1,716,436
1,702,157
Funds 8,174,035
8,155,893
Derivatives 19,043
28,683
Designated measured at FVtPL 212,822
130,870
Bonds 212,822
130,870
Total 39,967,303
38,534,906
Liabilities 31/12/2023
31/12/2022
in
EUR ‘000
Measured at AC 2,981,684
3,467,443
Subordinated liabilities 1,309,283
1,789,281
Liabilities to banks 306,881
343,898
Liabilities from financing activities 579,908
593,118
Lease liabilities 198,398
183,126
IFRS 9 measured liabilities 587,214
558,020
Measured at FVtPL 1,851
3,191
Mandatorily measured at FVtPL 1,296
2,619
Designated measured at FVtPL 555
572
Total 2,983,535
3,470,634
Details regarding the liabilities resulting from financing activities can be found in Note 8. Financial liabilities on page 108.
The conditions of subordinated liabilities are presented in Note 2.10. Subordinated liabilities starting on page 99.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
89
2.3. Equity instruments designated measured at FVtOCI
Financial investments 31/12/2023
in
EUR ‘000
Fair value – in portfolio 399,293
Shares 38,259
Shares in participating companies 70,088
Wiener Börse AG 31,710
GROPYUS AG 14,003
Remaining sum 24,375
Shares in affiliated non-consolidated companies 290,946
VIG Poland/Romania Holding B.V. 97,664
Global Expert, s.r.o. 53,122
HOTELY SRNÍ, a.s. 31,609
CARPATHIA PENSII-SOCIETATE DE ADMINISTRARE A FONDURILOR DE PENSII PRIVATE S.A. 20,034
Remaining sum 88,517
Fair value at derecognition date 4,997
Shares 494
Shares in participating companies 202
Shares in affiliated non-consolidated companies 4,301
Of the shares still held in the portfolio, no single investment amounts to more than EUR 5.0 million. In the remaining amounts
in the item Shares in participating companies and Shares in affiliated non-consolidated companies, no single investment
with a fair value of more than EUR 10.0 million is included.
The derecognition of shares and shares in companies is due to mergers and a capital reduction and the individual values
do not exceed an amount of EUR 10.0 million.
Additional Information 2023
2022
in
EUR ‘000
Received dividends from equity instruments designated measured at FVtOCI 6,943
7,361
In Portfolio 6,918
7,166
Sold 25
195
Within shareholders' equity derecognised cumulative gains and losses -4,294
-4,382
90
Annual Financial Report 2023
2.4. Expected credit loss
Overview
Development 2023
Measured at FVtOCI and measured at AC Stage 1
Stage 2
Stage 3
Total
in
EUR ‘000
Credit Loss Allowance as of 31/12 of the previous year = Credit Loss Allowance as of 01/01 -44,179
-67,062
-90,461
-201,702
Exchange rate differences 6,335
133
196
6,664
Increase due to acquisitions -29,234
-1
-4,840
-34,075
Changes due to remeasurements (net) -4,711
1,064
-67,457
-71,104
Decrease due to derecognition 5,436
1,300
53,002
59,738
Decrease due to write-offs 0
0
8
8
Transfer to Stage 1 -8,635
8,635
0
0
Transfer to Stage 2 81
-81
0
0
Transfer to Stage 3 172
4,852
-5,024
0
Changes in scope of consolidation 47
0
0
47
Other movements 0
0
0
0
Credit Loss Allowance as of 31/12 -74,688
-51,160
-114,576
-240,424
Development 2022
Measured at FVtOCI and measured at AC Stage 1
Stage 2
Stage 3
Total
in
EUR ‘000
Credit Loss Allowance as of 31/12 of the previous year = Credit Loss Allowance as of 01/01 -20,107
-69,251
-15,131
-104,489
Exchange rate differences 3,129
716
16
3,861
Increase due to acquisitions -31,937
-153
0
-32,090
Changes due to remeasurements (net) 10,393
-77,515
-14,843
-81,965
Decrease due to derecognition 2,294
9,794
0
12,088
Decrease due to write-offs 0
0
947
947
Transfer to Stage 1 -8,667
8,667
0
0
Transfer to Stage 2 848
-848
0
0
Transfer to Stage 3 0
61,449
-61,449
0
Changes in scope of consolidation -125
79
-1
-47
Other movements -7
0
0
-7
Credit Loss Allowance as of 31/12 -44,179
-67,062
-90,461
-201,702
Loans
Development 2023
Measured at AC Stage 1
Stage 2
Stage 3
Total
in
EUR ‘000
Credit Loss Allowance as of 31/12 of the previous year = Credit Loss Allowance as of 01/01 -855
-15,123
-1,900
-17,878
Exchange rate differences 2
-15
-157
-170
Increase due to acquisitions -107
-1
-4,840
-4,948
Changes due to remeasurements (net) 0
378
-799
-421
Decrease due to derecognition 432
756
0
1,188
Decrease due to write-offs 0
0
8
8
Credit Loss Allowance as of 31/12 -528
-14,005
-7,688
-22,221
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
91
Development 2022
Measured at AC Stage 1
Stage 2
Stage 3
Total
in
EUR ‘000
Credit Loss Allowance as of 31/12 of the previous year = Credit Loss Allowance as of 01/01 -172
-15,168
-2,163
-17,503
Exchange rate differences 1
6
16
23
Increase due to acquisitions -573
-1
0
-574
Changes due to remeasurements (net) -142
-1,290
-700
-2,132
Decrease due to derecognition 25
1,257
0
1,282
Decrease due to write-offs 0
0
947
947
Transfer to Stage 1 -3
3
0
0
Transfer to Stage 2 9
-9
0
0
Changes in scope of consolidation 0
79
0
79
Credit Loss Allowance as of 31/12 -855
-15,123
-1,900
-17,878
Bonds
Development 2023
Measured at FVtOCI Stage 1
Stage 2
Stage 3
Total
in
EUR ‘000
Credit Loss Allowance as of 31/12 of the previous year = Credit Loss Allowance as of 01/01 -34,469
-47,824
-88,561
-170,854
Exchange rate differences 5,850
68
353
6,271
Increase due to acquisitions -5,658
0
0
-5,658
Changes due to remeasurements (net) 11,984
-2,918
-66,658
-57,592
Decrease due to derecognition 1,730
441
53,002
55,173
Transfer to Stage 1 -8,635
8,635
0
0
Transfer to Stage 2 81
-81
0
0
Transfer to Stage 3 172
4,852
-5,024
0
Changes in scope of consolidation 47
0
0
47
Credit Loss Allowance as of 31/12 -28,898
-36,827
-106,888
-172,613
Development 2022
Measured at FVtOCI Stage 1
Stage 2
Stage 3
Total
in
EUR ‘000
Credit Loss Allowance as of 31/12 of the previous year = Credit Loss Allowance as of 01/01 -15,090
-53,922
-12,968
-81,980
Exchange rate differences 2,417
184
0
2,601
Increase due to acquisitions -21,491
0
0
-21,491
Changes due to remeasurements (net) 7,313
-72,245
-14,143
-79,075
Decrease due to derecognition 744
8,480
0
9,224
Transfer to Stage 1 -8,664
8,664
0
0
Transfer to Stage 2 434
-434
0
0
Transfer to Stage 3 0
61,449
-61,449
0
Changes in scope of consolidation -125
0
-1
-126
Other movements -7
0
0
-7
Credit Loss Allowance as of 31/12 -34,469
-47,824
-88,561
-170,854
92
Annual Financial Report 2023
Development 2023
Measured at AC Stage 1
Stage 2
Stage 3
Total
in
EUR ‘000
Credit Loss Allowance as of 31/12 of the previous year = Credit Loss Allowance as of 01/01 -4,776
-4,115
0
-8,891
Exchange rate differences 83
80
0
163
Increase due to acquisitions -10,479
0
0
-10,479
Changes due to remeasurements (net) -8,708
3,604
0
-5,104
Decrease due to derecognition 332
103
0
435
Credit Loss Allowance as of 31/12 -23,548
-328
0
-23,876
Development 2022
Measured at AC Stage 1
Stage 2
Stage 3
Total
in
EUR ‘000
Credit Loss Allowance as of 31/12 of the previous year = Credit Loss Allowance as of 01/01 -1,814
-161
0
-1,975
Exchange rate differences 447
526
0
973
Increase due to acquisitions -4,737
-152
0
-4,889
Changes due to remeasurements (net) 856
-3,980
0
-3,124
Decrease due to derecognition 67
57
0
124
Transfer to Stage 2 405
-405
0
0
Credit Loss Allowance as of 31/12 -4,776
-4,115
0
-8,891
Term deposits
Development 2023
Measured at AC Stage 1
Stage 2
Stage 3
Total
in
EUR ‘000
Credit Loss Allowance as of 31/12 of the previous year = Credit Loss Allowance as of 01/01 -4,079
0
0
-4,079
Exchange rate differences 400
0
0
400
Increase due to acquisitions -12,990
0
0
-12,990
Changes due to remeasurements (net) -7,987
0
0
-7,987
Decrease due to derecognition 2,942
0
0
2,942
Credit Loss Allowance as of 31/12 -21,714
0
0
-21,714
Development 2022
Measured at AC Stage 1
Stage 2
Stage 3
Total
in
EUR ‘000
Credit Loss Allowance as of 31/12 of the previous year = Credit Loss Allowance as of 01/01 -3,031
0
0
-3,031
Exchange rate differences 264
0
0
264
Increase due to acquisitions -5,136
0
0
-5,136
Changes due to remeasurements (net) 2,366
0
0
2,366
Decrease due to derecognition 1,458
0
0
1,458
Credit Loss Allowance as of 31/12 -4,079
0
0
-4,079
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
93
Cash and cash equivalents
Cash and cash equivalents are considered to be due daily, which is why the ECL calculation over the entire term results in zero.
Therefore, no risk provision is accounted.
2.5. Risk of concentration
Risk-bearing portfolio* 31/12/2023
31/12/2022
in
EUR ‘000
Cash and cash equivalents 1,447,034
2,180,884
Financial assets acc. to IFRS 9 30,333,002
28,783,897
Investment property 2,852,090
2,645,015
Owner-occupied property 470,950
482,841
Investments in associates 185,622
287,961
Total 35,288,698
34,380,598
*Excl. financial instruments from unit- and index-linked life insurance
Financial assets* 31/12/2023
in
EUR ‘000
Exposures located in 33,251,904
Austria 7,560,322
United States of America 1,716,049
Czech Republic 3,024,890
Romania 1,062,142
Hungary 766,217
Poland 2,082,591
Rest of the World 17,039,692
Exposures denominated in 33,251,904
EUR 25,463,414
USD 693,807
CZK 2,876,979
RON 922,236
HUF 665,382
PLN 1,699,163
Other currencies 930,923
*Excl. financial instruments from unit- and index-linked life insurance
Due to the structure of the financial liabilities issued in the long term on the capital market and the lesser importance of
liabilities at individual credit institutions, there is no significant risk of concentration.
Government bonds*
(book value) Measured at AC Measured at FVtOCI Measured at FVtPL
31/12/2023
31/12/2022
31/12/2023
31/12/2022
31/12/2023
31/12/2022
in %
Austria 3.79
4.18
8.93
8.52
3.11
3.58
Germany 0.00
0.00
2.58
1.61
21.59
38.65
Czech Republic 15.17
14.57
14.84
14.59
60.86
40.94
Slovakia 2.25
2.51
5.31
6.02
0.00
0.00
Poland 51.67
53.81
11.64
11.94
1.37
1.68
Romania 0.00
0.00
6.29
5.66
2.10
1.27
Other countries 27.12
24.93
50.41
51.66
10.97
13.88
*Excl. financial instruments from unit- and index-linked life insurance
94
Annual Financial Report 2023
2.6. Credit risk
Financial liabilities
Financial liabilities that are designated measured at FVtPL bear no own default risk, which would have to be recognised
through Other comprehensive income.
Financial assets
The stated credit risk refers only to the Group’s risk-bearing portfolio as described in Note 2.5. Risk of concentration starting
on page 93.
Credit risk Mandatorily measured at FVtPL Designated measured
at FVtPL
Bonds
Funds
Shares
Bonds
in
EUR ‘000
Max. exposure to credit risk 899,582
1,457,527
403,289
211,078
Collaterals 161,079
0
0
5,246
The risk provision recognised in accordance with IFRS 9 is calculated on the basis of the nominal value. Consequently, the
carrying amount may be lower than the cumulative risk provision, particularly in Stage 3.
Measured at FVtOCI 31/12/2023
AAA
AA
A
BBB
BB and lower
No rating
Book value
Risk
provision
in
EUR ‘000
Stage 1 3,103,904
6,341,607
7,636,692
5,583,139
960,371
68,133
23,693,846
-28,898
Bonds 3,103,904
6,341,607
7,636,692
5,583,139
960,371
68,133
23,693,846
-28,898
Stage 2 0
0
0
6,391
225,916
63,820
296,127
-36,827
Bonds 0
0
0
6,391
225,916
63,820
296,127
-36,827
Stage 3 0
0
0
1,013
22,520
7,565
31,098
-106,888
Bonds 0
0
0
1,013
22,520
7,565
31,098
-106,888
Measured at FVtOCI 31/12/2022
AAA
AA
A
BBB
BB and lower
No rating
Book value
Risk
provision
in
EUR ‘000
Stage 1 2,338,931
5,907,935
7,113,551
5,487,781
869,149
76,286
21,793,633
-34,469
Bonds 2,338,931
5,907,935
7,113,551
5,487,781
869,149
76,286
21,793,633
-34,469
Stage 2 4,341
3,757
3,039
19,661
373,531
91,862
496,191
-47,824
Bonds 4,341
3,757
3,039
19,661
373,531
91,862
496,191
-47,824
Stage 3 0
0
0
0
72,450
1,500
73,950
-88,561
Bonds 0
0
0
0
72,450
1,500
73,950
-88,561
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
95
Measured at AC 31/12/2023
AAA
AA
A
BBB
BB and lower
No rating
Gross
carrying
amount
Risk
provision
Net carrying
amount*
in
EUR ‘000
Stage 1 10,944
384,088
1,376,788
408,340
513,636
87,380
2,781,176
-45,790
2,735,386
Loans 5,426
135,391
111,360
212,492
9,831
68,409
542,909
-528
542,381
Bonds 511
237,512
438,375
61,277
217,384
18,971
974,030
-23,548
950,482
Term deposits 5,007
11,185
827,053
134,571
286,421
0
1,264,237
-21,714
1,242,523
Stage 2 0
0
0
0
122,700
119,439
242,139
-14,333
227,806
Loans 0
0
0
0
94,363
119,439
213,802
-14,005
199,797
Bonds 0
0
0
0
28,337
0
28,337
-328
28,009
Stage 3 0
0
0
0
0
7,816
7,816
-7,688
128
Loans 0
0
0
0
0
7,816
7,816
-7,688
128
*The net carrying amount is the maximum exposure to credit risk excluding collaterals.
Measured at AC 31/12/2022
AAA
AA
A
BBB
BB and lower
No rating
Gross
carrying
amount
Risk
provision
Net carrying
amount*
in
EUR ‘000
Stage 1 12,641
411,590
1,123,023
429,757
424,589
69,908
2,471,508
-9,710
2,461,798
Loans 5,587
138,797
166,122
201,059
9,973
50,758
572,296
-855
571,441
Bonds 0
218,822
406,318
58,106
152,622
19,150
855,018
-4,776
850,242
Term deposits 7,054
53,971
550,583
170,592
261,994
0
1,044,194
-4,079
1,040,115
Stage 2 0
0
0
0
152,162
122,324
274,486
-19,238
255,248
Loans 0
0
0
0
110,209
122,324
232,533
-15,123
217,410
Bonds 0
0
0
0
41,953
0
41,953
-4,115
37,838
Stage 3 0
0
0
333
0
2,001
2,334
-1,900
434
Loans 0
0
0
0
0
2,001
2,001
-1,900
101
Term deposits 0
0
0
333
0
0
333
0
333
*The net carrying amount is the maximum exposure to credit risk excluding collaterals.
Impairment Provision Matrix 31/12/2023
IFRS 9 measured receivables Due, not overdue
1–30 days
overdue
31–90 days
overdue
> 90 days
overdue
Total
in
EUR ‘000
Receivables from services (IFRS 15) 38,552
645
167
15
39,379
Gross carrying amount 38,554
648
169
93
39,464
Risk provision -2
-3
-2
-78
-85
Receivables from finance lease 55,326
0
0
0
55,326
Gross carrying amount 55,326
0
0
0
55,326
Other IFRS 9 measured receivables 301,834
3,548
2,144
16,726
324,252
Gross carrying amount 317,569
3,916
2,170
21,929
345,584
Risk provision -15,735
-368
-26
-5,203
-21,332
Total 395,712
4,193
2,311
16,741
418,957
Loss rate – range 0.01%–100.00%
0.84%–62.00%
2.07%–100.00%
1.53%–100.00%
96
Annual Financial Report 2023
Impairment Provision Matrix 31/12/2022
IFRS 9 measured receivables Due, not overdue 1–30 days
overdue
31–90 days
overdue
> 90 days
overdue
Total
in
EUR ‘000
Receivables from services (IFRS 15) 21,224
0
0
0
21,224
Gross carrying amount 21,347
0
0
0
21,347
Risk provision -123
0
0
0
-123
Receivables from finance lease 55,918
0
0
0
55,918
Gross carrying amount 55,918
0
0
0
55,918
Other IFRS 9 measured receivables 308,285
5,570
2,764
11,941
328,560
Gross carrying amount 311,105
5,897
2,780
15,015
334,797
Risk provision -2,820
-327
-16
-3,074
-6,237
Total 385,427
5,570
2,764
11,941
405,702
Loss rate – range 0.45%–25.00%
0.10%–62.00%
2.34%–50.00%
4.44%–100.00%
In the financial year, bonds valued at FVtOCI of EUR 11,456,000 were provided as collateral for liabilities or contingent liabilities.
2.7. Liquidity risk
Maturity analysis 31/12/2023
<1 year
>1 year–5 years
>5–10 years
>10 years
No maturity
Book value excl.
risk provision
in
EUR ‘000
Cash and cash equivalents 0
0
0
0
1,558,107
1,558,107
Financial assets 3,589,517
10,188,034
8,718,489
6,504,463
9,057,547
38,058,050
Measured at AC 1,490,415
619,738
276,158
644,820
3,031,131
Loans 191,999
111,953
95,146
365,429
0
764,527
Bonds 228,349
314,773
179,977
279,268
0
1,002,367
Term deposits 1,070,067
193,012
1,035
123
0
1,264,237
Measured at FVtOCI 1,929,022
8,747,438
8,017,053
5,327,558
399,293
24,420,364
Shares and shares in companies 0
0
0
0
399,293
399,293
Bonds 1,929,022
8,747,438
8,017,053
5,327,558
0
24,021,071
Measured at FVtPL 170,080
820,858
425,278
532,085
8,658,254
10,606,555
Shares and shares in companies 0
0
0
0
484,219
484,219
Bonds 168,401
804,458
424,314
532,085
0
1,929,258
Funds 0
0
0
0
8,174,035
8,174,035
Derivatives 1,679
16,400
964
0
0
19,043
Total 3,589,517
10,188,034
8,718,489
6,504,463
10,615,654
39,616,157
Financial liabilities -149,495
-731,318
-345,761
-1,169,747
0
-2,396,321
Subordinated liabilities -103,091
-506,192
-200,000
-500,000
0
-1,309,283
Liabilities to banks -6,950
-158,406
-80,025
-61,500
0
-306,881
Liabilities from financing activities -9,646
-3,625
-40,879
-525,758
0
-579,908
Lease liabilities -29,029
-62,759
-24,121
-82,489
0
-198,398
Liabilities designated measured at FVtPL
-72
-336
-147
0
0
-555
Liabilities for derivatives -707
0
-589
0
0
-1,296
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
97
Maturity analysis 31/12/2022
<1 year
>1 year–5 years
>5–10 years
>10 years
No maturity
Book value excl.
risk provision
in
EUR ‘000
Cash and cash equivalents 0
0
0
0
2,315,219
2,315,219
Financial assets 3,009,961
9,686,319
7,901,563
6,375,969
8,871,021
35,844,833
Measured at AC 1,219,488
650,680
256,955
621,205
2,748,328
Loans 145,887
201,874
86,413
372,656
0
806,830
Bonds 109,514
371,555
167,476
248,426
0
896,971
Term deposits 964,087
77,251
3,066
123
0
1,044,527
Measured at FVtOCI 1,562,933
8,265,291
7,227,235
5,308,315
237,442
22,601,216
Shares and shares in companies 0
0
0
0
237,442
237,442
Bonds 1,562,933
8,265,291
7,227,235
5,308,315
0
22,363,774
Measured at FVtPL 227,540
770,348
417,373
446,449
8,633,579
10,495,289
Shares and shares in companies 0
0
0
0
477,686
477,686
Bonds 223,732
745,772
417,074
446,449
0
1,833,027
Funds 0
0
0
0
8,155,893
8,155,893
Derivatives 3,808
24,576
299
0
0
28,683
Total 3,009,961
9,686,319
7,901,563
6,375,969
11,186,240
38,160,052
Financial liabilities -558,479
-772,047
-181,954
-1,400,134
0
-2,912,614
Subordinated liabilities -512,611
-576,670
0
-700,000
0
-1,789,281
Liabilities to banks -6,848
-132,825
-130,725
-73,500
0
-343,898
Liabilities from financing activities -9,641
-3,624
-29,378
-550,475
0
-593,118
Lease liabilities -26,875
-58,574
-21,518
-76,159
0
-183,126
Liabilities designated measured at FVtPL
-71
-354
-147
0
0
-572
Liabilities for derivatives -2,433
0
-186
0
0
-2,619
2.8. Market risk
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 ‘000) 7,881,965
6,036,750
6,368,866
6,306,199
7,108,693
6,001,674
Depending on the intended application, VIG Holding performs Value-at-Risk calculations for different sub-portfolios on
behalf of the VIG Insurance Group. The confidence levels vary between 95.0% and 99.5% and the holding periods between
20 and 250 days. In accordance with the nature of the portfolio, the largest contributions to Value-at-Risk are made by
interest rate and spread components. As a way of validating the plausibility of the calculations, the Value-at-Risk of the
most important sub-portfolios is calculated both according to the parametric method described above and according to
the historical calculation method.
98
Annual Financial Report 2023
The following table shows the Value-at-Risk (with a confidence level of 99%) of financial assets measured at fair value:
Value-at-Risk 31/12/2023
in EUR million
10-day holding period 781.9
20-day holding period 1,105.8
60-day holding period 1,915.4
2.9. Details regarding the net result
Result from financial instruments measured at FVtPL 2023
2022
in
EUR ‘000
Financial assets 950,981
-1,548,835
Mandatorily measured at FVtPL 935,325
-1,539,910
Loans 176
30
Bonds 164,226
-272,522
Funds 713,568
-1,187,682
Shares and shares in companies 67,422
-69,518
Derivatives -10,067
-10,218
Designated measured at FVtPL 15,656
-8,925
Bonds 15,656
-8,925
Financial liabilities 17
-71
Designated measured at FVtPL 17
-71
Liabilities designated measured at FVtPL* 17
-71
*Financial liabilities that are designated measured at FVtPL bear no own default risk, which would have to be recognised through other comprehensive income.
Interest result 2023
2022
in
EUR ‘000
Interest revenues 1,110,995
948,436
Interest revenues using the effective interest rate method 895,801
715,099
Financial assets measured at AC 145,064
95,249
Financial assets measured at FVtOCI 750,737
619,850
Interest revenues other 215,194
233,337
Financial assets measured at FVtPL 169,128
205,142
Equity instruments designated measured at FVtOCI 6,943
7,362
Other income from financial instruments 39,123
20,833
Interest expenses -126,973
-137,331
Interest expenses using the effective interest rate method -87,869
-90,032
Financial liabilities measured at AC -87,869
-89,830
Negative interest for financial assets measured at FVtOCI 0
-202
Interest expenses other -39,104
-47,299
Liabilities designated measured at FVtPL 17
0
Other expenses from financial instruments -39,121
-47,299
Total 984,022
811,105
The fee for investment management recognised in the investment result amounts to EUR 39,086,000 (EUR 34,071,000).
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
99
2.10. Subordinated liabilities
Subordinated liabilities of the Group
Issuing company Issue date
Outstanding
volume
1
thereof accrued
interest
Maturity
Yield
Fair value
2
in
EUR ‘000
in
EUR ‘000
in years
in %
in
EUR ‘000
VIG Holding
02/03/2015
221,091
6,678
31
3
First 11 years:
3.75% p.a.;
thereafter variable
212,768
VIG Holding
13/04/2017
205,369
5,369
30
4
First 10 years:
3.75% p.a.;
thereafter variable
195,948
VIG Holding
15/06/2022
513,253
13,253
20
4
First 10 years:
4.875% p.a.;
thereafter variable
502,755
Donau Versicherung
15/04. +
21/05/2004
9,977
477
unlimited
5
4.95% p.a.
9,560
Donau Versicherung 01/07/1999
1,537
37
unlimited
5
4.95% p.a.
1,493
Wiener Städtische 01/03/1999
8,587
337
unlimited
6
4.90% p.a.
8,224
Wiener Städtische 02/07/2001
16,588
488
unlimited
7
6.10% p.a.
16,114
Wiener Städtische 15/11/2003
19,229
119
unlimited
7
4.95% p.a.
19,040
Wiener Städtische 30/06/2006
35,529
829
unlimited
7
4.75% p.a.
34,502
Wiener Städtische 11/05/2017
255,594
5,594
10
8
3.50% p.a.
248,243
Kooperativa (Czech Republic) 22/12/2010
22,529
283
unlimited
9
5.05% p.a.
21,655
Total 1,309,283
33,464
1,270,301
1
The outstanding include the respective pro rata interest according to the dirty value method.
2
The fair value is calculated on the basis of the securities' nominal value only, excluding accrued interest.
3
The right to ordinary and extraordinary cancellation by the holder is excluded. Regular cancellation by the issuer is first allowed effective 2 March 2026.
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
This can only be cancelled subject to not less than 5 years’ notice, unless Austrian insurance regulators agree to repayment being made early. The bond will be fully repaid 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. The bond will be fully repaid in 2024.
8
The right to ordinary and extraordinary cancellation by the holder is excluded. No provision has been made for regular cancellation by the issuer.
9
Due to the call, the supplementary capital will be repaid in full in 2024.
Subordinated liabilities of VIG Holding
Interest on the supplementary capital bonds is paid out only if the interest is covered by the national annual profit of the
company. However, the interest is included in the expenses in any case.
Subordinated bonds with a total nominal amount of EUR 500,000,000.00 and a term of 30 years were issued on 9 October 2013.
After an early partial buyback of the subordinated bonds in June 2022, the remaining outstanding volume of EUR 284.4 million
was called with effect on 9 October 2023.
A subordinated bond with a total nominal amount of EUR 400,000,000.00 and a term of 31 years was issued on 2 March 2015.
It can be called at 100% by VIG Holding for the first time at 2 March 2026 and at every coupon date after that. In the first
11 years of the term, the subordinated bond bears a fixed-interest rate of 3.75% per annum, after which the interest rate is
variable. The subordinated bond meets the Tier 2 requirements according to Solvency II. The bond is listed on the
Luxembourg Stock Exchange. An early partial buyback of subordinated bonds was effected on 21 April 2023. About 46%
(EUR 185.6 million) were bought back. Thus, the still outstanding volume of these bonds is EUR 214.4 million.
100
Annual Financial Report 2023
A subordinated bond of EUR 200,000,000.00 was issued on 6 April 2017 as part of a private placement. The subordinated
bond has a term of 30 years and can be called by VIG Holding for the first time after the expiry of 10 years. It complies with
the Tier 2 requirements according to Solvency II and qualifies as capital in accordance with the requirements of rating
agency S&P. In the first ten years of the term, the subordinated debt instruments bear a fixed-interest rate of 3.75% per
annum, after which the interest rate is variable. The inclusion in the Third Market of the Vienna Stock Exchange took place
on 13 April 2017.
A subordinated Tier 2 bond with an aggregate principal amount of EUR 500,000,000.00 was placed on 8 June 2022. The
subordinated bond has a term of 20 years and can be called by VIG Holding for the first time after the expiry of 10 years.
The debt instruments will initially bear a fixed-interest rate of 4.875% per annum. Provided they are not called and
repurchased before this date, the debt instruments will be subject to a variable rate as of and including 15 June 2032. The
debt instruments are traded on the Vienna Stock Exchange.
3. GOODWILL
The accounting policies used are presented in Note 25.5. Goodwill starting on page 171.
Development 2023
2022
in
EUR ‘000
Acquisition costs 2,090,712
1,886,335
Cumulative impairment as of 31/12 of the previous year -651,991
-626,109
Book value as of 31/12 of the previous year = Book value as of 01/01 1,438,721
1,260,226
Exchange rate differences 8,283
-4,026
Additions 0
208,882
Impairments -75,639
-26,361
Book value as of 31/12 1,371,365
1,438,721
Cumulative impairment as of 31/12 728,497
651,991
Acquisition costs 2,099,862
2,090,712
The additions in the previous year mainly resulted from the acquisitions of Alfa (Hungary) (formerly Aegon Hungary)
(EUR 188,573,000) and the Slovakian pension company KOOPERATIVA, d.s.s., a.s. (formerly 365.life) (EUR 19,970,000).
The impairments in the financial year predominantly affect the Baltic states (EUR 75,481,000) (Extended CEE segment)
CGU group. The impairments in the Baltic states are the result of far more conservative assumptions about distributions in
conjunction with switching to the IFRS 17 accounting standard. The impairments in the financial year predominantly affected
the Albania incl. Kosovo (EUR 13,624,000) (Extended CEE segment) and North Macedonia (EUR 12,553,000) (Extended
CEE segment) CGU groups.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
101
Goodwill of CGU units (book values) 31/12/2023
31/12/2022
in
EUR ‘000
Austria 301,716
301,716
Czech Republic 456,516
468,097
Poland 151,449
140,560
Baltic states 0
75,481
Bulgaria 124,354
124,354
Slovakia 131,227
111,257
Hungary 195,576
186,759
Group Functions 10,527
30,497
Total 1,371,365
1,438,721
The Slovakian pension company KOOPERATIVA, d.s.s., a.s. (formerly 365.life) was reclassified from the CGU Group Group
Functions to the CGU Group Slovakia in the financial year.
Impairment and recoverable amounts for CGU groups
Reportable
segment
2023 2022
Impairments
Recoverable
amount
Impairments
Recoverable
amount
in
EUR
‘000
Albania incl. Kosovo Extended CEE
13,624
22,037
Baltic states Extended CEE 75,481
231,883
North Macedonia Extended CEE
12,553
27,172
Impairments are recognised in the income statement as a separate item between the subtotal, business operating result
and the result before taxes.
The base rate before inflation differentials was 2.22% (2.36%). The market risk of 7.53% (7.14%) was multiplied by a beta
factor of 0.90 (0.87) that was calculated based on a specified peer group. The calculation of the discount rates is based on
pre-tax parameters.
102
Annual Financial Report 2023
Key calculation parameters Discount rates Country risks Long-term growth rate
2023
2022
2023
2022
2023
2022
in %
Austria 9.54
9.25
0.58
0.69
1.50
1.50
Czech Republic 9.64
9.11
0.88
1.03
3.67–4.87
3.60–5.46
Poland 11.52
11.22
1.24
1.46
5.87–7.43
5.79–7.29
Albania incl. Kosovo 15.98
16.02
6.58
7.77
6.60
6.41
Baltic states 10.30
10.15
1.34
1.58
5.00–7.51
5.20–6.69
Bosnia-Herzegovina 18.29
19.65
9.51
11.22
5.49–7.32
5.55–7.47
Bulgaria 11.09
10.52
2.34
2.76
5.75–6.37
5.64–6.18
Croatia 11.74
12.00
2.78
3.29
5.07–7.34
5.12–7.54
Moldova 21.23
22.50
9.51
11.22
8.33
8.78
North Macedonia 14.02
14.28
5.26
6.21
5.85
5.75
Romania 13.06
13.22
3.21
3.79
5.38–7.82
5.60–7.91
Serbia 14.46
14.75
4.40
5.19
5.69–7.51
5.78–7.57
Slovakia 10.20
10.02
1.24
1.46
5.07–5.33
5.77–6.03
Ukraine 30.97
40.82
17.55
17.26
10.06–13.08
15.03–18.36
Hungary 13.29
13.34
2.78
3.29
6.68–6.71
6.55–6.59
Germany 8.96
8.56
0.00
0.00
1.50
1.50
Georgia 14.12
14.00
4.40
5.19
6.53
6.12
Liechtenstein 8.96
8.56
0.00
0.00
1.50
1.50
Türkiye 61.41
37.79
9.51
11.22
26.35–29.20
14.55–17.00
Group Functions 9.54–14.46
9.25–14.75
0.58–4.40
0.69–5.19
1.50–7.51
1.50–7.57
The average increase of the discount rate is primarily the result of the higher market risk.
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 ‘000
Czech Republic 0
0
0
-39,977
Slovakia -37,005
0
-34,617
-91,740
4. INVESTMENT PROPERTY
The accounting policies used are presented in Note 25.7. Investment property starting on page 173. The fair values can be
found in Note 16. Calculation of fair value starting on page 119.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
103
Development 2023
2022 adjusted
in
EUR ‘000
Acquisition costs 3,613,686
3,256,769
Cumulative valuation as of 31/12 of the previous year -968,671
-879,079
Book value as of 31/12 of the previous year = Book value as of 01/01 2,645,015
2,377,690
Exchange rate differences 10,445
-801
Reclassifications 7,180
22,646
Additions 247,823
255,577
Disposals -9,974
-3,021
Changes in scope of consolidation 47,941
65,647
Appreciation 0
275
Scheduled depreciation -69,647
-60,762
Impairments -26,693
-12,236
Book value as of 31/12 2,852,090
2,645,015
Cumulative valuation as of 31/12 1,062,031
968,671
Acquisition costs 3,914,121
3,613,686
The changes in the scope of consolidation result from the first-time consolidation of KOPUS Nordbahnhof Wohnungs-
errichtungs GmbH (EUR 15,363,000), Wohnquartier 12b Immobilienbesitz GmbH (EUR 13,077,000), Wohnquartier 11b
Immobilienbesitz GmbH (EUR 9,154,000), VIG ZP, s.r.o. (EUR 6,105,000) and Chrášťany komerční areál a.s. (EUR 4,242,000).
The impairment losses are mainly attributable to buildings of VIG FUND (EUR 14,675,000) and Pereca 11 Sp.z.o.o.
(EUR 3,150,000).
Amounts recognised in profit or loss 2023
2022 adjusted
in
EUR ‘000
Rental income 194,758
171,164
Operating expenses -70,045
-61,616
Operating expenses for rented investment property -65,496
-57,054
Operating expenses for vacant investment property -4,549
-4,562
Disposal result 3,470
2,870
Gain from disposal 3,798
2,965
Losses from disposal -328
-95
Total 128,183
112,418
Type of usage 31/12/2023
31/12/2022
adjusted
in
EUR ‘000
Self-used 8,513
8,037
Rented (operating lease) 2,843,577
2,636,978
Total 2,852,090
2,645,015
Contractual obligations for investment property 31/12/2023
31/12/2022
in
EUR ‘000
To purchase, construct or develop 0
7,450
To repairs, maintenance or improvements 493
0
Total 493
7,450
104
Annual Financial Report 2023
Use of properties in % of the property portfolio 31/12/2023
31/12/2022
adjusted
in
EUR ‘000
Austria 66.86
66.29
Owner-occupied property 4.93
5.39
Investment property 61.93
60.90
Group Functions 17.20
18.19
Owner-occupied property 1.09
1.12
Investment property 16.11
17.07
Other segments 15.94
15.52
Owner-occupied property 8.16
8.93
Investment property 7.78
6.59
5. OWNER-OCCUPIED PROPERTY AND EQUIPMENT
The accounting policies used are presented in Note 25.8. Owner-occupied property and equipment starting on page 173.
Composition 31/12/2023
31/12/2022
adjusted
in
EUR ‘000
Owner-occupied property 470,950
482,841
Tangible assets 148,209
125,851
Total 619,159
608,692
There are no material restrictions on control of the asset or material contractual obligations for acquiring the items under
“Owner-occupied property and equipment”.
5.1. Owner-occupied property
Development 2023
2022 adjusted
in
EUR ‘000
Acquisition costs 772,481
763,957
Cumulative valuation as of 31/12 of the previous year -289,640
-291,936
Book value as of 31/12 of the previous year = Book value as of 01/01 482,841
472,021
Exchange rate differences -524
3,568
Reclassifications -8,453
-22,065
Additions 16,970
12,369
Disposals -954
-1,788
Changes in scope of consolidation 0
36,132
Scheduled depreciation -17,704
-17,355
Impairments -1,226
-41
Book value as of 31/12 470,950
482,841
Cumulative valuation as of 31/12 301,182
289,640
Acquisition costs 772,132
772,481
thereof reportable segment Austria 163,344
168,523
thereof reportable segment Czech Republic 118,123
126,263
thereof reportable segment Poland 11,667
11,215
thereof reportable segment Group Functions 36,378
34,925
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
105
5.2. Type of usage
Type of usage 31/12/2023
31/12/2022
adjusted
in
EUR ‘000
Owner-occupied property 470,950
482,841
Self-used 449,558
461,378
Rented (operating lease) 21,392
21,463
Tangible assets 148,209
125,851
Self-used 137,651
118,501
Rented (operating lease) 10,558
7,350
Total 619,159
608,692
6. INVESTMENTS IN ASSOCIATES
The investments in associated companies balance sheet item consists only of shares in at equity consolidated companies.
The list of associated companies is presented in Note 22. Affiliated companies and participations starting on page 133.
Development 2023
2022
in
EUR ‘000
Book value as of 31/12 of the previous year = Book value as of 01/01 287,961
276,913
Exchange rate differences 11
-2
Additions 1
0
Changes in scope of consolidation -99,836
0
Share of changes in OCI -11,393
-683
Pro rata result for the period 19,216
20,757
Dividend payments -10,338
-9,024
Book value as of 31/12 185,622
287,961
thereof reportable segment Austria 178,073
180,999
thereof reportable segment Poland 150
139
thereof reportable segment Group Functions 7,399
106,823
On 3 March 2023, all shares in WWG Beteiligungen GmbH, Vienna, were sold outside the Group. Consequently, the shares
in non-profit residential developers held by WWG Beteiligungen GmbH, Vienna, were deconsolidated.
Material shares 2023
Beteiligungs- und
Wohnungs-
anlagen GmbH
Gewista-Werbe-
gesellschaft
m.b.H.
Österreichisches
Verkehrsbüro AG
VBV - Betriebliche
Altersvorsorge AG
in
EUR ‘000
Income 0
97,253
500,850
115,017
Expenses -192
-83,872
-524,500
-52,602
Financial result 18,252
21,838
-7,312
7,430
Taxes 1,044
-3,946
706
-10,890
Result for the period 19,104
31,273
-30,256
58,955
Parent company minority interest 0
0
313
0
Result for the period less non-controlling interests 19,104
31,273
-29,943
58,955
Non-controlling interests 430
9,874
-681
1,326
shares of at equity consolidated companies held by shareholders 18,674
21,399
-29,575
57,629
106
Annual Financial Report 2023
Material shares 2023
Beteiligungs- und
Wohnungs-
anlagen GmbH
Gewista-Werbe-
gesellschaft
m.b.H.
Österreichisches
Verkehrsbüro AG
VBV - Betriebliche
Altersvorsorge AG
Group interest in % 25.00%
33.00%
36.58%
25.32%
Share of result 4,776
10,320
-10,953
14,927
Fixed assets 340,261
156,445
321,154
378,991
Current assets (incl. other assets) 20,227
22,676
129,826
14,677,469
Borrowings -201,697
-33,617
-427,981
-14,738,270
Net assets 158,791
145,504
22,999
318,190
Non-controlling interests 3,573
45,943
517
7,159
shares of at equity consolidated companies held by shareholders 155,218
99,561
22,482
311,031
Attributable of net assets 39,698
48,016
8,411
80,566
Cumulative impairments 0
0
-4,540
0
Book value of shares in at equity consolidated companies 39,698
48,016
3,871
80,566
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). Including these companies as of the balance sheet
date on 31 December 2023 would have no material impact on the present consolidated financial statements.
Development 2023
Beteiligungs- und
Wohnungs-
anlagen GmbH
Gewista-Werbe-
gesellschaft
m.b.H.
Österreichisches
Verkehrsbüro AG
VBV - Betriebliche
Altersvorsorge AG
in
EUR ‘000
Book value as of 31/12 of the previous year = Book value as of 01/01 37,672
42,542
14,955
78,950
Share of changes in OCI 0
0
-131
-11,273
Pro rata result for the period 4,776
10,320
-10,953
14,927
Dividend payments -2,750
-4,846
0
-2,038
Book value as of 31/12 39,698
48,016
3,871
80,566
Shares in at equity consolidated companies had a book value of EUR 185,6 million as of 31 December 2023 and a book
value of EUR 288,0 million as of 31 December 2022. Shares in at equity consolidated companies therefore represented
0,53% (0,84%) of the book value of the total investment portfolio as of 31 December 2023.
Composition of the result 2023
2022
in
EUR ‘000
Income 16,466
18,287
Current result 16,466
18,287
7. RECEIVABLES AND LIABILITIES
The accounting policies used are presented in Note 25.12. Receivables and Liabilities starting on page 179.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
107
7.1. Receivables
Composition 31/12/2023 31/12/2022 adjusted
Gross carrying
amount
Risk provision
Net carrying
amount
Gross carrying
amount
Risk provision
Net carrying
amount
in
EUR ‘000
IFRS 9 measured receivables 440,374
-21,417
418,957
412,062
-6,360
405,702
Other receivables 76,715
76,715
84,984
84,984
Total 517,089
-21,417
495,672
497,046
-6,360
490,686
For detailed information on the development of risk provisions, please refer to the statements in Note 2.4. Expected credit
loss starting on page 90.
Maturity structure
31/12/2023
31/12/2022
adjusted
in
EUR
‘000
Up to 1 year 359,471
357,254
More than one year up to five years 60,655
54,096
More than five years up to ten years 19,570
18,379
More than ten years 55,976
60,957
Total 495,672
490,686
7.2. Liabilities
Composition 31/12/2023
31/12/2022
adjusted
in
EUR ‘000
IFRS 9 measured liabilities 587,214
558,020
Other liabilities 525,461
391,808
Total 1,112,675
949,828
For detailed information on the tax liabilities, please refer to the statements in Note 11. Taxes starting on page 112.
For detailed information on the lease liabilities, please refer to the statements in Note 8. Financial liabilities starting on page 108.
Maturity structure 31/12/2023
31/12/2022
adjusted
in
EUR ‘000
Up to 1 year 798,211
622,773
More than one year up to five years 51,987
41,817
More than five years up to ten years 28,203
38,549
More than ten years 234,274
246,689
Total 1,112,675
949,828
108
Annual Financial Report 2023
8. FINANCIAL LIABILITIES
Composition 31/12/2023
31/12/2022
adjusted
in
EUR ‘000
Subordinated liabilities 1,309,283
1,789,281
Liabilities to banks 306,881
343,898
Liabilities from financing activities 579,908
593,118
Lease liabilities 198,398
183,126
Liabilities for derivatives 1,296
2,619
Liabilities designated measured at FVtPL 555
572
Total 2,396,321
2,912,614
Development 31/12/2023
Subordinated liabilities
(incl. interest)
Liabilities to banks
Other financial
liabilities*
in
EUR ‘000
Book value as of 31/12 of the previous year 1,789,281
343,898
777,111
Cash changes -546,812
-42,113
-40,215
Cash inflows 0
23
509
Payments -469,987
-37,719
-35,094
Paid interest -76,825
-4,417
-5,630
Non-cash changes 66,814
5,096
42,159
Additions 67,382
5,096
60,980
Disposals 0
0
-2,621
Changes in scope of consolidation 0
0
-21,760
Reclassifications 0
0
8,643
Measurement changes 0
0
-442
Exchange rate differences -568
0
-2,641
Book value as of 31/12 1,309,283
306,881
779,055
*It contains derivative liabilities from financing liabilities, other financing liabilities and lease liabilities.
Development 31/12/2022
Subordinated liabilities
(incl. interest)
Liabilities to banks
Other financial
liabilities*
in
EUR ‘000
Book value as of 31/12 of the previous year 1,493,599
351,087
776,708
Cash changes 223,666
-12,599
-40,116
Cash inflows 500,000
55,007
13,000
Payments -215,600
-63,117
-46,930
Paid interest -60,734
-4,489
-6,186
Non-cash changes 72,016
5,410
40,519
Additions 71,327
5,410
38,324
Disposals 0
0
-607
Changes in scope of consolidation 0
0
3,160
Reclassifications 0
0
-1,823
Measurement changes 0
0
62
Exchange rate differences 689
0
1,403
Book value as of 31/12 1,789,281
343,898
777,111
*It contains derivative liabilities from financing liabilities, other financing liabilities and lease liabilities.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
109
9. NOTES TO THE CONSOLIDATED INCOME STATEMENT
Composition Austria Czech Republic Poland Extended CEE
2023
2022
adjusted
2023
2022
adjusted
2023
2022
adjusted
2023
2022
adjusted
in
EUR ‘000
Investment result 1,010,854
-740,632
183,108
-15,720
130,074
-14,845
293,611
-13,887
Interest revenues using the effective
interest rate method
450,204
422,286
91,970
81,789
61,016
43,256
186,751
144,147
Realised gains and losses from
financial assets measured at AC -36
-3,953
0
-87
-1
1
158
420
Impairment losses incl. reversal gains
on financial instruments
-1,697
-59,305
-12,345
-1,016
-1,058
-502
-41,948
-20,357
Other result from financial
instruments 562,383
-1,099,660
103,483
-96,406
70,117
-57,600
148,650
-138,097
thereof result from the valuation of
financial assets measured at FVtPL
450,961
-1,166,373
85,029
-100,775
46,694
-23,533
139,636
-164,139
thereof result from sale of financial
instruments measured at FVtPL 13,106
-120,577
7,726
-5,807
37,271
-35,587
14,103
-23,075
Income and expenses from
investment property 26,252
18,701
-1,040
105
339
25
226
2,918
thereof current income 84,590
69,487
535
511
682
312
5,446
4,354
thereof depreciation -58,338
-51,073
-1,575
-407
-344
-288
-5,302
-2,033
thereof result from sale 0
287
0
0
0
0
81
323
Finance costs -48,237
-44,864
-2,935
-1,911
-1,012
-1,134
-8,276
-4,374
thereof interest expenses for
personnel provisions -8,637
-4,486
0
0
0
0
0
0
thereof interest expenses financing
liabilities -1,691
-1,898
0
0
0
0
-57
-4
thereof interest expenses for
liabilities to financial institutions -778
-818
0
0
0
0
-466
-350
thereof interest expenses for
subordinate liabilities -35,287
-35,989
-1,224
-1,131
-1,500
-612
-6,397
-3,097
thereof interest expenses for lease
liabilities -1,718
-1,561
-1,506
-979
-297
-174
-961
-750
Result from owner-occupied
properties
325
2,768
-5,485
-6,174
-788
-679
-2,779
-2,459
thereof depreciation -7,634
-7,286
-5,101
-3,834
-411
-398
-3,333
-3,282
thereof result from sale 154
496
-29
0
0
0
590
896
110
Annual Financial Report 2023
Composition Special Markets Group Functions Consolidation Total
2023
2022
adjusted
2023
2022
adjusted
2023
2022
adjusted
2023
2022
adjusted
in
EUR ‘000
Investment result 274,198
30,784
50,780
-8,756
-49,557
-46,640
1,893,068
-809,696
Interest revenues using the effective
interest rate method
89,306
29,870
53,210
26,355
-36,656
-32,806
895,801
714,897
Realised gains and losses from
financial assets measured at AC -41
-123
0
-500
0
0
80
-4,242
Impairment losses incl. reversal gains
on financial instruments
-2,880
-18,327
3,444
-5,435
0
0
-56,484
-104,942
Other result from financial
instruments 187,813
19,364
-5,874
-29,176
-12,901
-13,834
1,053,671
-1,415,409
thereof result from the valuation of
financial assets measured at FVtPL
50,994
-87,830
-1,140
-8,518
0
0
772,174
-1,551,168
thereof result from sale of financial
instruments measured at FVtPL -871
-3,747
-5,815
-21,328
0
0
65,520
-210,121
Income and expenses from
investment property 543
379
5,579
15,728
-55
-54
31,844
37,802
thereof current income 661
625
32,853
32,420
-55
-54
124,712
107,655
thereof depreciation -251
-246
-30,530
-18,951
0
0
-96,340
-72,998
thereof result from sale 133
0
3,256
0
0
0
3,470
610
Finance costs -577
-317
-86,233
-89,223
47,944
46,554
-99,326
-95,269
thereof interest expenses for
personnel provisions 0
0
-1,829
-704
0
0
-10,466
-5,190
thereof interest expenses financing
liabilities 0
0
-3,004
-3,146
0
0
-4,752
-5,048
thereof interest expenses for
liabilities to financial institutions 0
0
-26,604
-26,794
21,619
21,413
-6,229
-6,549
thereof interest expenses for
subordinate liabilities 0
0
-54,126
-58,294
26,305
24,296
-72,229
-74,827
thereof interest expenses for lease
liabilities -578
-316
-96
-87
479
462
-4,677
-3,405
Result from owner-occupied
properties
325
436
510
104
-5,496
-4,522
-13,388
-10,526
thereof depreciation -252
-261
-1,200
-1,098
0
0
-17,931
-16,159
thereof result from sale 0
119
0
0
0
0
715
1,511
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
111
10. CONSOLIDATED SHAREHOLDERS ʾ EQUITY
Further information on the shareholders’ equity can be found starting on page 177.
10.1. Dividend payment
Composition 31/12/2023
31/12/2022
in
EUR ‘000
Dividends 166,400
160,000
Interest payments on the hybrid capital 9,638
9,638
Deferred taxes directly recognised in equity -2,082
-2,169
Total 173,956
167,469
Payout 2023 for the financial year 2022 per share
Total
in EUR
Ordinary shares 1.30
166,400,000
10.2. Proposed appropriation of profits
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe (VIG Holding) concluded financial year 2023 with a net
retained profit of EUR 396,846,778.80. The following appropriation of profits will be proposed at the Annual General Meeting:
The 128 million shares will receive a dividend of EUR 1.4 0 per share. For this dividend, 29 May 2024 was agreed as the
payment date, 28 May 2024 as the record date and 27 May 2024 as the ex-dividend date.
A total distribution of EUR 179,2 00,000 .00 has therefore been approved. The remaining net retained profit of financial year
2023 of EUR 217,646,778.80 after the distribution should be carried forward to the new account.
10.3. Capital reserves – hybrid capital
Issue date Outstanding volume
Maturity
Yield
Fair value
in
EUR ‘000
in years
in %
in
EUR ‘000
10/06/2021 300,000
unlimited
First 10 years: 3.2125% p.a.;
thereafter variable
236,867
As part of a private placement with the main shareholder, Wiener Städtische Versicherungsverein, VIG Holding placed a
hybrid capital bond on 15 March 2021. The hybrid capital fulfils the shareholders’ equity criteria in accordance with
IAS 32.16C and .16D, as the issuer is free to decide about the interest payment and the term is unrestricted. It also complies
with the Restricted Tier 1 requirements according to Solvency II as well as the capital qualification in accordance with the
rating agency S&P.
112
Annual Financial Report 2023
10.4. Other reserves
Composition 31/12/2023
Gross
+/- Deferred
taxes
+/- Non-
controlling
interests
Net
in
EUR ‘000
Unrealised gains and losses 226,014
-66,693
-4,146
155,175
IFRS 9 reserves recyclable* -997,005
213,339
12,054
-771,612
IFRS 9 reserves non-recyclable -1,953
-3,155
-241
-5,349
IFRS 17 reserves 1,224,972
-276,877
-15,959
932,136
Actuarial gains and losses from provisions for employee benefits -188,664
42,936
3,022
-142,706
Share of other reserves of associated consolidated companies -11,888
0
250
-11,638
Currency reserve -144,572
0
4,016
-140,556
Total -119,110
-23,757
3,142
-139,725
*Thereof reclassified to income statement in gross value: EUR 122,542,000
Composition 31/12/2022 adjusted
Gross
+/- Deferred
taxes
+/- Non-
controlling
interests
Net
in
EUR ‘000
Unrealised gains and losses -43,587
-8,749
1,996
-50,340
IFRS 9 reserves recyclable* -2,292,672
485,442
53,014
-1,754,216
IFRS 9 reserves non-recyclable -8,582
111
874
-7,597
IFRS 17 reserves 2,257,667
-494,302
-51,892
1,711,473
Actuarial gains and losses from provisions for employee benefits -143,547
32,598
2,318
-108,631
Share of other reserves of associated consolidated companies -494
0
29
-465
Currency reserve -202,673
0
22,309
-180,364
Total -390,301
23,849
26,652
-339,800
*Thereof reclassified to income statement in gross value: EUR -189,379,000
11. TAXES
The accounting policies used are presented in Note 25.13. Taxes starting on page 179.
11.1. Tax expenses
Composition 2023
2022 adjusted
in
EUR ‘000
Actual taxes 152,883
90,281
From the current period 143,208
80,211
From previous periods 9,675
10,070
Deferred taxes 43,560
31,413
Change of deferred taxes in the current year 55,865
34,370
Deferred taxes due to temporary differences relating to other periods -8,948
-574
Deferred taxes due to loss carry forwards relating to other periods -3,357
-2,383
Total 196,443
121,694
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
113
Reconciliation 2023
2022 adjusted
in
EUR ‘000
Expected tax rate in % 24.0%
25.0%
Result before taxes 772,689
585,697
Expected tax expenses 185,445
146,424
Adjusted for tax effects due to:
Different local tax rate -31,061
-27,651
Change of tax rates -11,528
2,807
Non-deductible expenses 131,049
103,163
Income not subject to tax -100,669
-129,474
Taxes from previous years -2,630
7,113
Non-recognition/reduction of deferred tax assets due to temporary differences 6,099
6,518
Non-recognition/reduction of deferred tax assets due to loss carry forwards 6,023
6,153
Effects due to group taxation/profit transfers -403
458
Others 14,118
6,183
Effective tax expenses 196,443
121,694
Effective tax rate in % 25.4%
20.8%
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.
11.2. Deferred taxes
The deferred tax assets and liabilities reported relate to temporary differences in the balance sheet items listed in the table
below (the differences were measured using the applicable tax rates). It should be noted that deferred taxes, as far as
permissible, are offset at the taxpayer level, and, accordingly, the different balances are shown either as assets or liabilities
on the balance sheet.
Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the
extent that it is probable that the deferred tax assets can be used. Deferred tax assets are examined each balance sheet
date and reduced to the extent that it is no longer probable that the associated tax benefits can be realised.
114
Annual Financial Report 2023
Composition 31/12/2023 31/12/2022 adjusted
Assets
Liabilities
Assets
Liabilities
in
EUR ‘000
Cash and cash equivalents 32
42,605
4
48,371
Financial assets and Investments in associates 553,663
393,599
1,893,007
1,391,801
Receivables and Other assets 211,304
22,191
212,280
22,220
Insurance contracts assets
1
225,921
118,421
281,262
28,531
Investment property as well as Owner-occupied property and equipment 13,627
36,711
16,278
44,348
Goodwill and Intangible assets 4,088
12,801
6,483
37,566
Right-of-use assets 0
59,319
0
39,013
Liabilities and other payables, Financial liabilities and Other liabilities 275,614
73,449
137,184
266,730
Insurance contracts liabilities
2
665,666
1,137,070
604,987
1,096,701
Provisions 122,299
90,088
64,655
54,517
Tax-exempt reserves 0
9,162
0
9,450
Accumulated losses carried forward 46,293
0
31,551
0
Sum before valuation allowance 2,118,507
1,995,416
3,247,691
3,039,248
Valuation allowance for deferred tax assets -42,012
-36,570
Total before netting 2,076,495
1,995,416
3,211,121
3,039,248
Netting -1,593,208
-1,593,208
-2,669,896
-2,669,896
Net balance 483,287
402,208
541,225
369,352
1
Incl. Insurance contracts assets issued and Reinsurance contracts assets held
2
Incl. Insurance contracts liabilities issued and Reinsurance contracts liabilities held
Deferred tax assets from seven-year amortisation of participations to going concern value were recognised in the amount
of EUR 10,458,000 (EUR 15,041,000). Those amounts not recognised in 2023 amount to 3,810,000. 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 liability of EUR 875,000 (in a deferred tax asset of EUR 23,878,000). In accordance with IAS 12.39,
deferred tax liabilities were not reported for temporary differences from interests in subsidiaries and associated companies
since they would not be reversed in the foreseeable future. The difference between the book value for tax purposes and
the IFRS shareholders' equity is EUR 1,868,341,000 (EUR 1,650,858,000). Deferred taxes for undistributed subsidiary
profits of EUR 17,252,000 (EUR 15,666,000) were also not reported, because a decision to distribute the profits had not
yet been made.
Deferred tax assets on tax loss carryforwards not recognised 2023
2022
in
EUR ‘000
Bosnia-Herzegovina -309
-161
Bulgaria 0
-1,519
Estonia -340
-340
Croatia -25
-25
Liechtenstein -960
-904
Lithuania -275
-44
Austria -9,601
-8,602
Poland -9,379
-4,186
Romania -1,469
-4,851
Serbia -822
-2,259
Slovakia -577
-376
Slovenia -40
-45
Czech Republic -121
-195
Ukraine -85
-117
Hungary -3,397
-2,906
Total -27,400
-26,530
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
115
11.3. Tax rates
The deferred taxes are based on the following tax rates:
Tax rates 31/12/2023
31/12/2022
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
Netherlands 25.8
25.8
Austria
5
24.0
25.0
Poland 19.0
19.0
Romania 16.0
16.0
Serbia 15.0
15.0
Slovakia
7
21.0
21.0
Czech Republic
8
19.0
19.0
Türkiye
6
30.0
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 14.0% to 20.0%.
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 20.0%.
5
Due to a change in the law, the corporate income tax rate will be reduced in stages from 25.0% to 24.0% in 2023, and then to 23.0% in 2024.
6
In 2023, the corporate income tax rate was increased to 30.0% for current taxes.
7
The corporate income tax rate is 21.0%, but insurance companies have to pay additional taxes, meaning that a tax rate of 25.36% applies to these companies.
8
Due to a new law that was passed, the corporate income tax rate will be increased in stages from 19.0% to 21.0% in 2024.
12. PROVISIONS
The accounting policies used are presented in Note 25.11. Provisions starting on page 179.
Composition 31/12/2023
31/12/2022
adjusted
in
EUR ‘000
Provisions for pensions and similar obligations 340,708
312,929
Provision for pension obligations 236,499
213,054
Provision for severance obligations 104,209
99,875
Provisions for other employee benefits 71,853
59,550
Miscellaneous provisions 336,059
297,400
Total 748,620
669,879
116
Annual Financial Report 2023
13. INTANGIBLE ASSETS
The accounting policies used are presented in Note 25.6. Intangible assets starting on page 172.
Composition 31/12/2023
31/12/2022 adjusted
in
EUR ‘000
Purchased software 476,139
446,118
Other intangible assets 114,222
139,682
Total 590,361
585,800
13.1. Purchased software
Development 2023
2022 adjusted
in
EUR ‘000
Acquisition costs 940,268
1,441,531
Cumulative valuation as of 31/12 of the previous year -494,150
-1,053,168
Book value as of 31/12 of the previous year = Book value as of 01/01 446,118
388,363
Exchange rate differences 562
-160
Reclassifications -361
-5,179
Additions 120,481
124,339
Disposals -3,328
-5,953
Changes in scope of consolidation 0
23,967
Scheduled depreciation -80,498
-79,259
Impairments -6,835
0
Book value as of 31/12 476,139
446,118
Cumulative valuation as of 31/12 572,715
494,150
Acquisition costs 1,048,854
940,268
The impairments are due to software packages that are no longer being used in Romania and Poland.
13.2. Other intangible assets
Development 2023
2022 adjusted
in
EUR ‘000
Acquisition costs 319,274
221,042
Cumulative valuation as of 31/12 of the previous year -179,592
-140,118
Book value as of 31/12 of the previous year = Book value as of 01/01 139,682
80,924
Exchange rate differences 5
1,055
Reclassifications -656
279
Additions 16,506
93,221
Disposals -234
-270
Changes in scope of consolidation 0
7,941
Scheduled depreciation -20,254
-21,761
Impairments -20,827
-21,707
Book value as of 31/12 114,222
139,682
Cumulative valuation as of 31/12 219,960
179,592
Acquisition costs 334,182
319,274
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In the reporting period, the impairments of the item Other intangible assets related to the customer bases of Alfa (Hungary)
(EUR 2,661,000), Asset Management Hungary (EUR 8,388,000) and Viennalife (Türkiye) (EUR 9,778,000). In the previous year,
the impairments related to the customer bases of Alfa (Hungary) (EUR 14,666,000) and Viennalife (Türkiye) (EUR 3,041,000),
as well as the Asirom brand (EUR 4,000,000).
14. LEASES
Lessor - operating leases
Maturity analysis of undiscounted lease payments 31/12/2023
31/12/2022
in
EUR ‘000
Up to 1 year 142,410
126,626
More than one up to two years 127,156
118,184
More than two up to three years 117,400
109,334
More than three up to four years 108,340
101,024
More than four up to five years 100,128
92,940
More than five years 3,071,781
2,708,095
Total 3,667,215
3,256,203
Lease income 2023
2022
in
EUR ‘000
Fixed lease income 146,236
129,252
Lease income of variable lease payments 27,638
28,159
Total 173,874
157,411
15. TYPE OF EXPENSES AND DETAILS OTHER INCOME AND EXPENSES
15.1. General information
Due to the accounting and valuation requirements of IFRS 17, expenses that are directly attributable to insurance contracts are
included in the “Insurance service result”. General administrative expenses are not directly attributable to insurance contracts
and are included in the item of Other expenses.
The expenses that are taken into account under IFRS 17 amount to EUR 3,677,783,000 in the current period. Apart from
personnel expenses, a significant portion is made up of commissions paid, IT expenses, taxes related to insurance contracts
and scheduled depreciation.
15.2. Personnel expenses
Number of employees 31/12/2023
31/12/2022
Number
Sales representatives 15,047
14,797
Office staff 14,358
14,035
Total 29,405
28,832
The employee figures shown are average values based on full-time equivalents.
11 8
Annual Financial Report 2023
Personnel expenses 2023
2022 adjusted
in
EUR ‘000
Wages and salaries 823,528
697,878
Expenses for severance benefits and payments to company pension plans 7,320
7,218
Expenses for retirement provisions 10,750
16,898
Mandatory social security contributions and expenses 207,656
190,633
Other social security expenses 29,344
27,893
Total 1,078,598
940,520
Sales representatives 458,997
412,233
Office staff 619,601
528,287
15.3. Other income and expenses
2023
2022
in
EUR ‘000
Other income 303,932
273,780
thereof exchange rate gains 82,414
43,847
thereof other revenue from services 122,185
91,549
Other expenses -821,804
-680,457
thereof general administrative expenses acc. to IFRS 17 -512,564
-468,706
thereof exchange rate losses -87,797
-39,633
thereof losses from non-monetary items acc. to IAS 29 -31,547
thereof result from owner-occupied property -13,388
-10,526
Both the increase in general administrative expenses acc. to IFRS 17 and the increase in other revenues from services is
due to a larger business volume.
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ADDITIONAL DISCLOSURES
16. CALCULATION OF FAIR VALUE
The accounting policies used are presented in Note 25.9. Calculation of fair value starting on page 173.
16.1. Fair value and book values of financial instruments and investments
Book values and valuation hierarchies 31/12/2023
Book value
Level 1
Level 2
Level 3
Fair value
in
EUR ‘000
Financial assets acc. to IFRS 9 37,990,239
25,459,784
9,241,370
3,268,013
37,969,167
Financial assets mandatorily measured at FVtPL 10,393,733
6,112,598
3,135,874
1,145,261
10,393,733
Bonds 1,716,436
406,366
848,137
461,933
1,716,436
Funds 8,174,035
5,361,046
2,251,947
561,042
8,174,035
Derivatives 19,043
0
1,679
17,364
19,043
Shares 450,075
345,186
31,829
73,060
450,075
Shares in participating companies 30,116
0
0
30,116
30,116
Shares in affiliated non-consolidated companies 4,028
0
2,282
1,746
4,028
Financial assets designated measured at FVtPL 212,822
161,678
51,144
0
212,822
Bonds 212,822
161,678
51,144
0
212,822
Financial assets measured at AC 2,963,320
448,858
1,004,637
1,488,753
2,942,248
Loans 742,306
0
594,559
127,842
722,401
Bonds 978,491
448,858
410,078
97,406
956,342
Term deposits 1,242,523
0
0
1,263,505
1,263,505
Financial assets mandatorily measured at FVtOCI 24,021,071
18,706,866
5,044,560
269,645
24,021,071
Bonds 24,021,071
18,706,866
5,044,560
269,645
24,021,071
Financial assets designated measured at FVtOCI 399,293
29,784
5,155
364,354
399,293
Shares 38,259
29,784
5,155
3,320
38,259
Shares in participating companies 70,088
0
0
70,088
70,088
Shares in affiliated non-consolidated companies 290,946
0
0
290,946
290,946
Investment property 2,852,090
0
32,988
4,384,990
4,417,978
Owner-occupied property 470,949
0
39,107
792,142
831,249
Investments in associates 185,622
Total 41,498,900
25,459,784
9,313,465
8,445,145
43,218,394
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Annual Financial Report 2023
Book values and valuation hierarchies 31/12/2022 adjusted
Book value
Level 1
Level 2
Level 3
Fair value
in
EUR ‘000
Financial assets acc. to IFRS 9 35,813,985
26,588,578
7,362,754
1,730,542
35,681,874
Financial assets mandatorily measured at FVtPL 10,364,419
7,345,526
2,517,415
501,478
10,364,419
Bonds 1,702,157
543,061
1,034,016
125,080
1,702,157
Funds 8,155,893
6,431,290
1,477,149
247,454
8,155,893
Derivatives 28,683
0
1,771
26,912
28,683
Shares 427,950
371,175
4,479
52,296
427,950
Shares in participating companies 35,528
0
0
35,528
35,528
Shares in affiliated non-consolidated companies 14,208
0
0
14,208
14,208
Financial assets designated measured at FVtPL 130,870
104,527
26,343
0
130,870
Bonds 130,870
104,527
26,343
0
130,870
Financial assets measured at AC 2,717,480
886,538
953,116
745,715
2,585,369
Loans 788,952
144,483
576,739
20,747
741,969
Bonds 888,080
396,184
376,377
29,916
802,477
Term deposits 1,040,448
345,871
0
695,052
1,040,923
Financial assets mandatorily measured at FVtOCI 22,363,774
18,226,344
3,861,397
276,033
22,363,774
Bonds 22,363,774
18,226,344
3,861,397
276,033
22,363,774
Financial assets designated measured at FVtOCI 237,442
25,643
4,483
207,316
237,442
Shares 33,222
25,643
4,234
3,345
33,222
Shares in participating companies 68,930
0
0
68,930
68,930
Shares in affiliated non-consolidated companies 135,290
0
249
135,041
135,290
Investment property 2,645,015
0
44,582
4,220,362
4,264,944
Owner-occupied property 482,841
0
39,007
820,868
859,875
Investments in associates 287,961
Total 39,229,802
26,588,578
7,446,344
6,771,772
40,806,693
Book values and valuation hierarchies 31/12/2023
Book value
Level 1
Level 2
Level 3
Fair value
in
EUR ‘000
Financial liabilities mandatorily measured at FVtPL 1,296
0
707
589
1,296
Liabilities for derivatives 1,296
0
707
589
1,296
Financial liabilities designated at FVtPL 555
0
0
555
555
Liabilities designated measured at FVtPL 555
0
0
555
555
Financial liabilities measured at AC* 2,196,072
0
1,644,863
416,711
2,061,574
Liabilities to banks 306,881
0
0
306,881
306,881
Liabilities from financing activities 579,908
0
396,217
88,175
484,392
Subordinated liabilities 1,309,283
0
1,248,646
21,655
1,270,301
Total 2,197,923
0
1,645,570
417,855
2,063,425
*Excl. lease liabilities
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Book values and valuation hierarchies 31/12/2022 adjusted
Book value
Level 1
Level 2
Level 3
Fair value
in
EUR ‘000
Financial liabilities mandatorily measured at FVtPL 2,619
0
2,138
481
2,619
Liabilities for derivatives 2,619
0
2,138
481
2,619
Financial liabilities designated at FVtPL 572
0
0
572
572
Liabilities designated measured at FVtPL 572
0
0
572
572
Financial liabilities measured at AC* 2,726,297
0
2,087,123
466,896
2,554,019
Liabilities to banks 343,898
0
0
343,898
343,898
Liabilities from financing activities 593,118
0
320,939
101,339
422,278
Subordinated liabilities 1,789,281
0
1,766,184
21,659
1,787,843
Total 2,729,488
0
2,089,261
467,949
2,557,210
*Excl. lease liabilities
The unrealised effect (net profit or loss) of Level 3 financial instruments that are still held and whose fair value will be recog-
nised through profit and loss was EUR 21,544,000 in the reporting period.
16.2. Reclassification of financial instruments
The companies in VIG Insurance Group regularly review the current validity of the last fair value classification performed on
each valuation date. For example, a reclassification is performed if necessary inputs are no longer directly observable in the
market.
Reclassifications 31/12/2023
Between Level 1
and Level 2
Level 1 to
Level 3
Level 2 to
Level 3
Number
Measured at FVtOCI 87
2
5
Mandatorily measured at FVtOCI 87
2
5
Financial assets 87
2
5
Measured at FVtPL 189
9
10
Mandatorily measured at FVtPL 183
9
8
Financial assets 183
9
8
Designated measured at FVtPL 6
0
2
Financial assets 6
0
2
Total 276
11
15
The reclassifications between Level 1 and Level 2 are due to changes in liquidity, trading frequency and trading activity, as
well as due to the harmonisation of valuation hierarchies. The reclassifications from Level 1 to Level 3 are primarily based
on a worsening of the liquidity, for example in connection with developments on the real estate market. The reclassifications
from Level 2 to Level 3 are primarily based on a worsening of the credit quality or liquidity.
1 22
Annual Financial Report 2023
Reclassifications 31/12/2022 adjusted
Between Level 1
and Level 2
Level 3 to
Level 1
Level 1 to
Level 3
Level 3 to
Level 2
Level 2 to
Level 3
Number
Measured at FVtOCI 13
1
23
1
9
Mandatorily measured at FVtOCI 13
1
23
1
9
Financial assets 13
1
23
1
9
Measured at FVtPL 8
0
2
0
0
Mandatorily measured at FVtPL 8
0
2
0
0
Financial assets 8
0
2
0
0
Total 21
1
25
1
9
Reclassifications between Level 1 and 2 primarily occur if liquidity, trading frequency or trading activity of the particular finan-
cial instrument once again, or cease to allow one to conclude that an active market exists. For example, the market maker
for a security frequently changes, with a corresponding impact on liquidity. A similar example is when shares are included in
(or removed from) an index that acts as a benchmark for many funds. In this case, the classification can also change. As a
result of the decentralised structure of VIG Insurance Group, classifications are generally reviewed by the subsidiaries at the
end of the period. Any reclassifications are presented as if they had taken place at the end of the period.
Measurement method for fair value assessment
Measurement procedure for fair value assessment 31/12/2023
31/12/2022
adjusted
in
EUR ‘000
Owner-occupied property 831,249
859,689
Evaluated by an independent expert 378,823
394,979
Evaluated by an internal expert 452,426
464,710
Investment property 4,417,978
4,265,181
Evaluated by an independent expert
*
1,010,579
1,017,714
Evaluated by an internal expert 3,407,399
3,247,467
*This corresponds to 22.87% (23.86%) of the fair value of investment property.
Measurement method 31/12/2023
31/12/2022
adjusted
in
EUR ‘000
Owner-occupied property 831,249
859,689
Capitalised earnings value methode 647,013
683,016
Comparative pricing method/market approach 179,883
127,271
Other method 4,353
49,402
Investment property 4,417,978
4,265,181
Capitalised earnings value methode 4,008,590
3,489,448
Comparative pricing method/market approach 354,114
123,614
Other method 55,274
652,119
Total 5,249,227
5,124,870
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16.3. Reconciliation of financial instruments
For information on the effects of changes in value recognised through profit and loss, please refer to Note 9. Notes to the
consolidated income statement starting on page 109.
A harmonisation of IT systems results in level reclassifications that are not attributable to changes in market value.
Development 2023 2022 adjusted
Financial assets measured at FVtOCI Level 1
Level 2
Level 3
Level 1
Level 2
Level 3
in
EUR ‘000
Fair value as of 31/12 of the previous year = Fair value as
of 01/01
18,251,987
3,865,880
483,349
19,738,755
4,456,035
461,982
Exchange rate differences 21,703
-1,505
-16,257
149,066
1,917
745
Reclassification between classes of financial instruments -25,816
15,770
127,046
-35,014
0
4,107
Reclassification to level 224,089
1,112,099
164,679
40,319
9,205
203,276
Reclassification from level -1,131,929
-315,281
-53,658
-183,672
-65,272
-3,857
Amortisation and accrued interest 56,886
12,793
-1,884
81,356
10,829
-3,619
Additions 3,396,212
591,244
200,781
3,885,212
601,839
61,476
Disposals -2,977,020
-522,290
-108,319
-2,849,301
-410,592
-93,211
Changes in scope of consolidation 0
-4,538
-110,758
644,983
0
-16,544
Changes in value recognised in profit and loss 0
0
0
0
0
0
Changes in value recognised directly in equity 920,538
295,543
-50,980
-3,219,717
-738,081
-131,006
Fair value as of 31/12 18,736,650
5,049,715
633,999
18,251,987
3,865,880
483,349
Development 2023 2022 adjusted
Financial assets measured at FVtPL Level 1
Level 2
Level 3
Level 1
Level 2
Level 3
in
EUR ‘000
Fair value as of 31/12 of the previous year = Fair value as
of 01/01
7,450,053
2,543,758
501,478
9,554,995
3,161,445
562,236
Exchange rate differences 72,100
-1,029
-16,755
29,777
2,864
-307
Reclassification between classes of financial instruments 11,519
2,675
-14,193
33,340
-2,434
0
Reclassification to level 244,114
774,013
592,993
1,601
274
6,771
Reclassification from level -1,230,251
-377,942
-2,928
-6,985
-1,651
-8
Amortisation and accrued interest 1,081
8,718
5,142
5,929
11,803
6,418
Additions 2,459,074
467,755
177,649
2,486,751
354,032
201,570
Disposals -3,231,600
-483,055
-107,460
-3,563,916
-741,384
-210,800
Changes in scope of consolidation 0
0
-12,528
15,942
180,376
-42,271
Changes in value recognised in profit and loss 498,186
252,125
21,863
-1,107,381
-421,567
-22,131
Changes in value recognised directly in equity 0
0
0
0
0
0
Fair value as of 31/12 6,274,276
3,187,018
1,145,261
7,450,053
2,543,758
501,478
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Annual Financial Report 2023
Development 2023 2022 adjusted
Financial liabilities measured at FVtPL Level 1
Level 2
Level 3
Level 1
Level 2
Level 3
in
EUR ‘000
Fair value as of 31/12 of the previous year = Fair value as
of 01/01
0
2,138
1,053
0
3,059
813
Exchange rate differences 0
728
-2
0
1,825
0
Reclassification between classes of financial instruments 0
0
0
0
0
0
Reclassification to level 0
0
0
0
0
0
Reclassification from level 0
0
0
0
0
0
Amortisation and accrued interest 0
0
404
0
3
180
Disposals 0
-2,159
-311
0
-3,702
0
Changes in scope of consolidation 0
0
0
0
993
0
Changes in value recognised in profit and loss 0
0
0
0
-40
60
Changes in value recognised directly in equity 0
0
0
0
0
0
Fair value as of 31/12 0
707
1,144
0
2,138
1,053
16.4. Unobservable input factors
Asset class Measurement methods
Unobservable input factors
Range
2023 2022
from
to
from
to
Property Capitalised earnings value Capitalisation rate in % 0.30
7.47
0.30
7.47
Rental income in EUR ‘000 7
4,090
7
3,999
Land price in EUR ‘000 0
12
0
12
Discounted Cash flow Capitalisation rate in EUR ‘000 4.11
8.92
3.56
8.26
Rental income in % 111
7,394
102
5,699
Building rights – capitalised
earnings value
Capitalisation rate
in % 2.50
4.00
2.50
4
Rental income in EUR ‘000 83
4,378
83
4,378
Land prices in EUR ‘000 0.30
0.73
0.30
0.73
Construction interest actually paid in % 0.90
3.96
0.90
5.70
Loans measured at AC Present value method Spreads in % -0.20
5.62
Bonds measured at AC Present value method Spreads in % -0.20
5.62
Bonds measured at FVtOCI Present value method Spreads in % -0.20
4.13
Bonds measured at FVtPL Present value method Spreads in % -0.20
3.81
16.5. Sensitivities
With respect to the value of shares 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.
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Investment property
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 as of 31/12 4,619,995
Rental income -5% 4,440,131
Rental income +5% 4,805,545
Capitalisation rate -50bp 4,918,764
Capitalisation rate +50bp 4,369,458
Land prices -5% 4,583,548
Land prices +5% 4,660,968
Since property is measured at amortised cost in the balance sheet of VIG, negative sensitivities would only affect profit or
loss if property value fell below book value. Other comprehensive income is therefore unaffected.
Measured at AC
As the change in the book value of loans and bonds classified as measured at AC idoes not include a fair value component,
there is no impact from the sensitivity calculation on the income statement and other comprehensive income.
Measured at FVtPL
Bonds Fair value
in
EUR
‘000
Fair value as of 31/12 461,933
Spread +50bp -9,971
Effect on the income statement -9,971
Effect on the statement of comprehensive income 0
Measured at FVtOCI
Bonds Fair value
in
EUR ‘000
Fair value as of 31/12 269,645
Spread +50bp -4,821
Effect on the income statement 0
Effect on the statement of comprehensive income -4,821
17. HYPERINFLATION
As soon as cumulative three-year inflation exceeds 100%, that is considered to be one of the indications for the application
of IAS 29 – Financial Reporting in Hyperinflationary Economies. This indication is present in the case of Türkiye. In the
present consolidated financial statements, VIG Insurance Group fully consolidates two Turkish insurance companies that
prepare their financial statements in the functional currency TRY. Due to changes in the general purchasing power of the
functional currency, the present financial statements for the Turkish insurance companies have been adjusted. They are
now stated in the current measuring unit at the balance sheet date. The approach applied for this purpose is based on
historical acquisition costs.
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Annual Financial Report 2023
For the reporting period, the Consumer Price Index published by the Turkish National Bank changed by 64.77% over the
period under review from December 2022 to December 2023.
2023
2022
CPI (2003 = 100%) in % 1,859.4
1,128.5
Net loss of monetary items in EUR ‘000 31,547
18. EARNINGS PER SHARE
Earnings per share 2023
2022 adjusted
Result for the period EUR '000 576,246
464,003
Non-controlling interests in net result for the period EUR '000 -17,267
8,334
Result for the period less non-controlling interests EUR '000 558,979
472,337
Interest expenses for the hybrid capital EUR '000 7,556
7,469
Attributable result EUR '000 551,423
464,868
Number of shares at closing date units 128,000,000
128,000,000
Earnings per share* EUR 4.31
3.63
*The undiluted earnings per share equals the diluted earnings per share (in EUR).
19. RELATED PARTIES
Related parties are those affiliated companies and associated companies listed in Note 22. Affiliated companies and
participations starting on page 133. Furthermore, the Managing Board and Supervisory Board members of VIG Holding are
to be qualified as related persons.
Wiener Städtische Versicherungsverein holds directly and indirectly around 72.47% (around 72.47%) and therefore the
majority of the voting rights of VIG Holding. Due to the given control, it is therefore also considered to be a related company
and its Managing Board as well as Supervisory Board members are considered to be related persons.
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19.1. 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
András Kozma
Peter Mihók
Heinz Öhler (until 30 June 2023)
Gabriele Semmelrock-Werzer
Katarina Slezáková
Peter Thirring (since 1 July 2023)
Gertrude Tumpel-Gugerell
Changes after the close of the financial year
Günter Geyer announced that he will no longer serve as Chairman of the Supervisory Board of VIG Holding after the end
of his current term of office. His term of office will end on 24 May 2024 at the Annual General Meeting that will adopt
resolutions on the subject of the 2023 financial year.
Managing Board
Chairwoman Elisabeth Stadler (until 30 June 2023)
Chairman Hartwig Löger (since 1 July 2023)
Deputy Chairman Hartwig Löger (until 30 June 2023)
Deputy Chairman Peter Höfinger (since 1 July 2023)
Members Liane Hirner
Peter Höfinger (until 30 June 2023)
Gerhard Lahner
Gábor Lehel
Harald Riener
Peter Thirring (until 1 July 2023)
Changes after the close of the financial year
Christoph Rath was appointed as a deputy member of the Managing Board of VIG Holding with effect from 1 September 2024.
19.2. Key management personnel compensation
Composition 2023 2022
Supervisory
Board
Members
Managing
Board
Total
Supervisory
Board
Members
Managing
Board
Total
in
EUR ‘000
Short
‑
term employee benefits 866
7,527
8,393
758
7,948
8,706
Post
‑
employment benefits 0
1,077
1,077
0
1,075
1,075
Other long
‑
term benefits 0
5,535
5,535
0
6,999
6,999
Termination benefits 0
81
81
0
0
0
Total 866
14,220
15,086
758
16,022
16,780
128
Annual Financial Report 2023
In the reporting periods, the members of the Managing Board and the Supervisory Board did not receive any loans and
advances, nor were they liable for any loans. The members of the Managing Board and the Supervisory Board also had no
liability in the reporting period.
Compensation policies for Managing Board members
The compensation of the company’s Managing Board reflects the importance of the Group and the related responsibility,
as well as the company’s economic situation and the appropriateness of compensation in the market environment.
Sustainability is a point of emphasis for the variable compensation component; the full attainment of sustainability goals is
highly dependent on taking a longer-term view of the company’s performance, one that extends beyond a single financial
year.
The amount of performance-dependent compensation is limited. The maximum amount of performance-dependent
compensation that the Managing Board can achieve upon fulfilment of conventional targets for the 2023 finanacial year is
equal to around 30% to around 36% of total compensation. In addition, special bonus compensation and compensation
for over-fulfilment in certain target areas may be granted. As a result, Managing Board members can earn variable
compensation components equal to no more than around 45% to 50% of their total compensation.
Significant parts of the performance-dependent compensation are only payable after a certain delay, which extends into
the year 2027 in the case of the 2023 financial year. The award of the delayed parts is dependent on the consideration
given to the sustainable development of the corporate group.
If certain threshold values are not met, no performance-dependent compensation is granted to the Managing Board. Even if
the targets are fully met in a given finanacial year, the award of the full variable compensation granted with respect to the focus
on sustainability depends whether the corporate group has experienced a sustainable development over three consecutive
years.
Stock options or similar instruments are not part of the compensation of the Managing Board.
As of the reporting date 31 December 2019, defined benefit pensions funded by provisions – depending in part on the
length of service with the VIG Insurance Group – are granted to active members of the company’s Managing Board in a
maximum amount equal to 40% of the assessment basis for members who remain on the Managing Board until their 65th
birthday. The assessment basis is equal to the standard fixed salary. In individual cases, extra amounts may be granted to
members who work beyond the maximum pension date given that no pension will be collected during the period of further
work.
Managing Board members appointed for the first time on or after 1 January 2020 may be granted entitlements to defined
benefit company pensions (or alternatively, defined contribution pensions). As a rule, such pensions will be awarded only
after the member has been re-appointed to the Managing Board at least once and in stages, so that the maximum pension
benefit equal to 40% of fixed compensation to be granted upon completing the 65th year of life can be awarded at the
earliest only after the member has served on the Managing Board for 10 years. If a Managing Board member had already
held other positions in the Group for at least 5 years, the pension may be awarded already upon commencement of his or
her term of office on the Managing Board.
As a standard rule, pensions will be awarded (regardless of effective date) only if either the position of Managing Board
member is not renewed by no fault of the member or if the Managing Board member resigns by reason of illness or age.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
129
The provisions of the Employee and Self-Employment Provisions Act (“New Severance Pay Model”) are applicable to Man-
aging Board contracts.
Only contracts with Managing Board members who have already worked in the Group for a very long time provide an
entitlement to severance pay, which is designed in accordance with the provisions of the Salaried Employee Act in the
version from before 2003 in conjunction with the relevant sector-specific provisions. Accordingly, such Managing Board
members may receive severance pay equal to two to 12 months’ salary – scaled according to length of service – plus a
supplement of 50% if the member retires or leaves the Managing Board after a long-term illness. No severance pay will be
granted if the member leaves the Managing Board at his or her own request before the date of pension eligibility without
the agreement of the company or if the member leaves the Managing Board by his or her own fault.
The Managing Board members are provided with a company car which is also for private use. For their work, the Managing
Board members received EUR 7,527,000 (EUR 7,948,000) from the company in the reporting period. The Managing Board
members received EUR 995,000 (EUR 978,000) from subsidiaries in the reporting period.
Former Managing Board members received EUR 1,158,000 (EUR 1,075,000).
The Managing Board was composed of eight persons in the first half of 2023 and six persons in the second half of 2023.
19.3. Transactions with related persons
Transactions 2023
in
EUR ‘000
Dividends for VIG Holding shares 47
Interests for issued loans from VIG Holding 16
Other transactions* 44
*Other transactions comprise for example purchases and sales of goods, rendering or receiving of services, commitments like sureties or guarantees as well as transfers under licence agreements.
In addition, there are rental and insurance contracts with related persons that do not exceed an amount of EUR 1,000,000.
The members of the Supervisory Board received EUR 349,000 from affiliated companies.
19.4. Transactions with related companies
Transactions with related companies
Primarily, financing transactions and charges for services are exchanged with non-consolidated affiliated and associated
companies.
Transactions between the fully consolidated companies included in the consolidated financial statements are eliminated as
part of the consolidation process and are therefore not explained in these notes.
Transactions with the Wiener Städtische Versicherungsverein
The Wiener Städtische Versicherungsverein is the majority shareholder of VIG Holding. It has the legal structure of a mutual
insurance association which, in accordance with the Austrian Insurance Supervision Act, has outsourced its insurance
operations and is therefore not operating in the insurance business. Due to its outsourcing to the Wiener Städtische
Versicherung AG, it merely has to fulfil its duties as a majority shareholder of VIG Holding, and so only services of minor
importance arise with the VIG Insurance Group. These are based on service agreements between VIG Insurance Group
and the Wiener Städtische Versicherungsverein for intercompany charges for internal audit services, finance and accounting
and provision of personnel as well as the leasing of offices based on arm’s length principles.
130
Annual Financial Report 2023
Related companies 2023 31/12/2023
Transactions
Open items
in
EUR ‘000
Revenue from rendering of services 54,361
19,944
Parent company 1,696
634
Associated companies 4,406
158
Subsidiaries not included in the consolidated financial statements 47,746
19,116
Other related companies 513
36
Expenses from services received 182,322
-18,097
Parent company 131
-122
Associated companies 534
0
Subsidiaries not included in the consolidated financial statements 177,044
-17,376
Other related companies 4,613
-599
Received dividends/profit distribution 10,205
0
Associated companies 7,688
0
Subsidiaries not included in the consolidated financial statements 2,038
0
Other related companies 479
0
Paid dividends/profit distribution 130,337
0
Parent company 130,337
0
Loans and financial liablities and their related interests (AC, FVtPL, FVtOCI) 23,295
177,422
Parent company 4,552
542
Associated companies 7,947
26,555
Subsidiaries not included in the consolidated financial statements 3,321
20,419
Other related companies 7,475
129,906
Amounts related to group taxation 64,627
27,564
Parent company 62,904
25,840
Associated companies 1,723
1,724
Other 69,280
876
Parent company 68,546
0
Subsidiaries not included in the consolidated financial statements 734
868
Other related companies 0
8
20. CONTINGENT RECEIVABLES AND LIABILITIES
In their capacity as insurance companies, the Group companies are involved in a number of court proceedings as defend-
ants 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.
Composition 31/12/2023
31/12/2022
in
EUR ‘000
Contingent receivables 7,445
9,082
The contingent receivables represents a bank guarantee.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
131
21. BUSINESS COMBINATIONS
21.1. Changes in the scope of consolidation
Deconsolidations Reason for
deconsolidation
Date
Reportable segment
Bulgarski Imoti Asistans EOOD, Sofia Merger
19/05/2023
Extended CEE
CENTER Hotelbetriebs GmbH, Vienna Liquidation
28/04/2023
Austria
VIG Hungary Holding B.V., The Hague Merger
31/01/2023
Extended CEE
VIG Hungary Holding II B.V., The Hague Merger
31/01/2023
Extended CEE
VIG Services Ukraine, LLC, Kyiv
Review of the scope of
consolidation
31/12/2023
Extended CEE
WWG Beteiligungen GmbH, Vienna Sale
03/03/2023
Group Functions
Expansion of the scope of consolidation* Acquisition / formation
Interest
First-time
consolidation
Method
Date
in %
Date
Chrášťany komerční areál a.s., Prague 2022
100.00
01/01/2023
full consolidation
KOPUS Nordbahnhof Wohnungserrichtungs GmbH, Vienna 2023
100.00
31/12/2023
full consolidation
VIG HU GmbH, Vienna 2023
100.00
01/11/2023
full consolidation
VIG IT - Digital Solutions GmbH, Vienna 2022
100.00
01/01/2023
full consolidation
VIG ZP, s. r. o., Bratislava 2020
100.00
01/01/2023
full consolidation
Wohnquartier 11b Immobilienbesitz GmbH, Vienna 2021
100.00
31/12/2023
full consolidation
Wohnquartier 12b Immobilienbesitz GmbH, Vienna 2021
100.00
31/12/2023
full consolidation
*Insofar as significant goodwill occurred, this is recognised in Note 3. Goodwill.
Companies acquired, but not yet consolidated Interest acquired
in %
AEGON SERVICES SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOŚCIĄ, Warsaw 100.00
AEGON TOWARZYSTWO UBEZPIECZEŃ NA ŻYCIE SPÓŁKA AKCYJNA, Warsaw 100.00
CARPATHIA PENSII-SOCIETATE DE ADMINISTRARE A FONDURILOR DE PENSII PRIVATE S.A., Floresti 100.00
PROFITOWI SPÓŁKA AKCYJNA, Warsaw 100.00
VIENNA POWSZECHNE TOWARZYSTWO EMERYTALNE SPÓŁKA AKCYJNA VIENNA INSURANCE GROUP, Warsaw 100.00
VIG Poland/Romania Holding B.V., Amsterdam 100.00
For the companies listed in the table, the official closings were on hand at the balance sheet date; however, not all the
regulatory approvals were on hand for the mergers in Poland and the portfolio transfers in Romania. These companies were
not consolidated in the present consolidated financial statements, mainly for materiality reasons.
21.2. Change in assets and liabilities due to changes in the scope of consolidation
A retrospective inclusion of the newly consolidated companies as of 1 January 2023 would not result in any significant
change in the balance sheet items. The retrospective inclusion of the newly consolidated companies as of 1 January 2023
would reduce the Group profit before taxes and non-controlling interests by 0.03% (without taking into consideration any
consolidation effects).
Due to the changes in the scope of consolidation, the number of employees decreased by two persons.
132
Annual Financial Report 2023
Balance sheet Additions
Disposals
in
EUR ‘000
Cash and cash equivalents 9,118
220
Receivables 962
3
Current tax assets 140
958
Investments in associates 0
99,836
Owner-occupied property and equipment 41,474
0
Other assets 399
0
Liabilities and other payables 779
33
Current tax liabilities 30
158
Financial liabilities 4,585
21,760
Deferred tax liabilities 621
0
The figures shown in the table above reflect the actual dates of first consolidation and deconsolidation, as indicated in
chapter 21.1. Changes in the scope of consolidation starting on page 131.
Contribution to result before taxes in reporting period Additions
in
EUR ‘000
Total capital investment result 266
Investment result 177
Income and expenses from investment property 89
Finance result -751
Other income and expenses 48
Result before taxes -437
21.3. Change in significant shares of other shareholders
Change in significant minority interests Date of change
Change of interest
Change in non-
controlling interests
in %
in
EUR ‘000
Alfa Vienna Insurance Group Biztosító Zrt., Budapest 21/11/2023
35.00
-56,515
Palais Hansen Immobilienentwicklung GmbH, Vienna 07/12/2023
42.47
-13,618
SIA "LiveOn", Riga 04/10/2023
30.00
-4,820
SIA LiveOn Terbatas, Riga 04/10/2023
30.00
-1,266
UAB LiveOn Linkmenu, Vilnius 04/10/2023
30.00
-1,019
UNION Vienna Insurance Group Biztosító Zrt., Budapest 21/11/2023
34.53
-21,048
VIG Befektetési Alapkezelő Magyarország Zártkörűen Működő Részvénytársaság, Budapest 21/11/2023
35.00
-7,586
VIG Magyarország Befektetési Zártkörűen Működő Részvéntársaság, Budapest 21/11/2023
35.00
-1,610
In November 2023, the shares in the Hungarian companies were increased from 55% to 90%. Corvinus still holds 10%. It
has been agreed not to disclose the purchase price.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
133
22. AFFILIATED COMPANIES AND PARTICIPATIONS
Number of companies Austria
Outside Austria
Total
Number
Consolidated companies 78
91
169
Fully consolidated companies 73
88
161
At equity consolidated companies 5
3
8
Non-consolidated companies 43
96
139
Total 121
187
308
Fully consolidated companies Country of
domicile
Registered office
Interest 2023
1
Interest 2022
1
Equity 2023
2
Equity 2022
2
in %
in %
in
EUR ‘000
in
EUR ‘000
"Compensa Vienna Insurance Group", ADB Lithuania Vilnius 100.00
100.00
63,180
53,895
"Grüner Baum" Errichtungs- und
Verwaltungsges.m.b.H.
Austria Vienna
100.00
100.00
40,004
40,043
AB Modřice, a.s. Czech Republic Prague 100.00
100.00
9,099
9,332
Alfa Vienna Insurance Group Biztosító Zrt. Hungary Budapest 100.00
100.00
102,789
100,137
Alfa VIG Pénztárszolgáltató Zrt. Hungary Budapest 100.00
100.00
2,266
1,959
Anděl Investment Praha s.r.o. Czech Republic Prague 100.00
100.00
26,044
25,465
Anif-Residenz GmbH & Co KG Austria Vienna 100.00
100.00
16,736
16,617
Asigurarea Românească - ASIROM Vienna
Insurance Group S.A.
Romania Bucharest
99.79
99.79
81,988
79,442
ATBIH GmbH Austria Vienna 100.00
100.00
179,157
158,521
ATRIUM TOWER SPÓŁKA Z OGRANICZONĄ
ODPOWIEDZIALNOSCIĄ
Poland Warsaw
100.00
100.00
19,467
17,867
Atzlergasse 13-15 GmbH Austria Vienna 100.00
100.00
30
39
Atzlergasse 13-15 GmbH & Co KG Austria Vienna 100.00
100.00
10,471
10,199
AUTODROM SOSNOVÁ u České Lípy a.s. Czech Republic Prague 100.00
100.00
1,570
1,563
BCR Asigurări de Viaţă Vienna Insurance
Group S.A.
Romania Bucharest
93.98
93.98
47,097
51,794
Blizzard Real Sp. z o.o. Poland Warsaw 100.00
100.00
5,571
3,602
Brockmanngasse 32 Immobilienbesitz
GmbH
Austria Vienna
100.00
100.00
6,032
3,559
BTA Baltic Insurance Company AAS Latvia Riga 100.00
100.00
73,639
53,934
BULSTRAD LIFE VIENNA INSURANCE
GROUP JOINT STOCK COMPANY
Bulgaria Sofia
100.00
100.00
22,894
12,018
Businesspark Brunn Entwicklungs GmbH Austria Vienna 100.00
100.00
34,045
33,456
CAPITOL, akciová spoločnosť Slovakia Bratislava 100.00
100.00
2,187
1,681
Central Point Insurance IT-Solutions GmbH
in Liquidation
Austria Vienna
100.00
100.00
22,182
21,634
Česká podnikatelská pojišťovna, a.s.,
Vienna Insurance Group
Czech Republic Prague
100.00
100.00
131,472
108,073
Chrášťany komerční areál a.s. Czech Republic Prague 100.00
97.28
2,781
Compania de Asigurări "DONARIS VIENNA
INSURANCE GROUP" Societate pe Actiuni
Moldova Chișinău
99.99
99.99
8,323
6,251
Compensa Life Vienna Insurance Group SE Estonia Tallinn 100.00
100.00
83,678
17,151
Compensa Towarzystwo Ubezpieczeń Na
Życie S.A. Vienna Insurance Group
Poland Warsaw
99.97
99.97
64,152
58,860
Compensa Towarzystwo Ubezpieczeń S.A.
Vienna Insurance Group
Poland Warsaw
99.95
99.95
80,760
82,233
CP Solutions a.s. Czech Republic Prague 100.00
100.00
7,528
13,514
DBLV Immobesitz GmbH & Co KG Austria Vienna 100.00
100.00
3,996
3,544
DBR-Liegenschaften GmbH & Co KG Germany Stuttgart 100.00
100.00
10,569
9,477
Deutschmeisterplatz 2 Objektverwaltung
GmbH
Austria Vienna
100.00
100.00
2,311
2,343
134
Annual Financial Report 2023
Fully consolidated companies Country of
domicile
Registered office
Interest 2023
1
Interest 2022
1
Equity 2023
2
Equity 2022
2
in %
in %
in
EUR ‘000
in
EUR ‘000
Donau Brokerline Versicherungs-Service
GmbH
Austria Vienna
100.00
100.00
107,300
101,394
DONAU Versicherung AG Vienna Insurance
Group
Austria Vienna
100.00
100.00
125,323
111,462
DV Immoholding GmbH Austria Vienna 100.00
100.00
50,986
44,200
DVIB alpha GmbH Austria Vienna 100.00
100.00
18,713
18,506
DVIB GmbH Austria Vienna 100.00
100.00
106,710
101,186
ELVP Beteiligungen GmbH Austria Vienna 100.00
100.00
63,218
23,276
EUROPEUM Business Center s.r.o. Slovakia Bratislava 100.00
100.00
10,262
10,301
Floridsdorf am Spitz 4
Immobilienverwertungs GmbH
Austria Vienna
100.00
100.00
15,533
18,819
Gesundheitspark Wien-Oberlaa Gesellschaft
m.b.H.
Austria Vienna
100.00
100.00
28,768
29,199
GLOBAL ASSISTANCE, a.s. Czech Republic Prague 100.00
100.00
5,986
6,754
Hansenstraße 3-5 Immobilienbesitz GmbH Austria Vienna 100.00
100.00
30,768
31,121
HUN BM Korlátolt Felelősségű Társaság Hungary Budapest 100.00
100.00
5,797
4,416
Insurance Company Vienna osiguranje d.d.,
Vienna Insurance Group
Bosnia-
Herzegovina
Sarajevo
100.00
100.00
10,703
9,735
INSURANCE ONE-SHAREHOLDER JOINT-
STOCK COMPANY BULSTRAD VIENNA
INSURANCE GROUP EAD
Bulgaria Sofia
100.00
100.00
92,416
70,096
InterRisk Lebensversicherungs-AG Vienna
Insurance Group
Germany Wiesbaden
100.00
100.00
23,518
23,518
InterRisk Towarzystwo Ubezpieczeń S.A.
Vienna Insurance Group
Poland Warsaw
100.00
100.00
69,928
43,675
InterRisk Versicherungs-AG Vienna
Insurance Group
Germany Wiesbaden
100.00
100.00
64,320
53,670
INTERSIG VIENNA INSURANCE GROUP Sh.A. Albania Tirana 89.98
89.98
8,399
7,295
Joint Stock Company Insurance Company
GPI Holding
Georgia Tbilisi
90.00
90.00
15,150
20,461
Joint Stock Company International
Insurance Company IRAO
Georgia Tbilisi
100.00
100.00
4,334
6,249
Joint Stock Insurance Company WINNER-
Vienna Insurance Group
North Macedonia Skopje
100.00
100.00
6,812
7,097
Kaiserstraße 113 GmbH Austria Vienna 100.00
100.00
3,137
2,979
KÁLVIN TOWER Ingatlanfejlesztési és
Beruházási Korlátolt Felelősségű Társaság
Hungary Budapest
100.00
100.00
2,400
2,231
KAPITOL, a.s. Czech Republic Brno 100.00
100.00
1,573
1,600
KKB Real Estate SIA Latvia Riga 100.00
100.00
20,280
20,766
KOMUNÁLNA poisťovňa, a.s. Vienna
Insurance Group
Slovakia Bratislava
100.00
100.00
57,800
52,644
KOOPERATIVA poisťovňa, a.s. Vienna
Insurance Group
Slovakia Bratislava
98.47
98.47
407,689
231,548
Kooperativa pojišťovna, a.s., Vienna
Insurance Group
Czech Republic Prague
97.28
97.28
679,414
596,911
KOOPERATIVA, d.s.s., a.s. Slovakia Bratislava 100.00
100.00
14,628
13,820
KOPUS Nordbahnhof Wohnungserrichtungs
GmbH
Austria Vienna
100.00
11,807
LVP Holding GmbH Austria Vienna 100.00
100.00
642,210
626,967
MAP-WSV Beteiligungen GmbH Austria Vienna 100.00
100.00
368,527
368,793
MC EINS Investment GmbH Austria Vienna 100.00
100.00
30,758
19,630
MH 54 Immobilienanlage GmbH Austria Vienna 100.00
100.00
26,041
25,819
NNC REAL ESTATE SPÓŁKA Z
OGRANICZONĄ ODPOWIEDZIALNOŚCIĄ
Poland Warsaw
100.00
100.00
23,998
20,099
Nordbahnhof Projekt EPW8 GmbH & Co KG Austria Vienna 100.00
100.00
23,164
19,187
Nordbahnhof Projekt EPW8 Komplementär GmbH Austria Vienna 100.00
100.00
34
34
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
135
Fully consolidated companies Country of
domicile
Registered office
Interest 2023
1
Interest 2022
1
Equity 2023
2
Equity 2022
2
in %
in %
in
EUR ‘000
in
EUR ‘000
Nordbahnhof Projekt Taborstraße 123
GmbH & Co KG
Austria Vienna
100.00
100.00
27,708
21,142
Nordbahnhof Projekt Taborstraße 123
Komplementär GmbH
Austria Vienna
100.00
100.00
35
36
Nußdorfer Straße 90-92 Projektentwicklung
GmbH & Co KG
Austria Vienna
100.00
100.00
39,682
38,364
OMNIASIG VIENNA INSURANCE GROUP S.A. Romania Bucharest 99.54
99.54
154,385
149,548
OÜ LiveOn Paevalille Estonia Tallinn 100.00
100.00
1,280
86
Palais Hansen Immobilienentwicklung GmbH
Austria Vienna 100.00
56.55
35,663
35,859
Passat Real Sp. z o.o. Poland Warsaw 100.00
100.00
27
-1,361
Pension Assurance Company Doverie AD Bulgaria Sofia 82.59
82.59
39,766
32,890
PERECA 11 SPÓŁKA Z OGRANICZONĄ
ODPOWIEDZIALNOŚCIĄ
Poland Warsaw
100.00
100.00
32,375
31,881
PFG Holding GmbH Austria Vienna 89.23
89.23
71,876
77,992
PFG Liegenschaftsbewirtschaftungs GmbH
& Co KG
Austria Vienna
92.88
92.88
12,940
12,663
Porzellangasse 4 Liegenschaftsverwaltung
GmbH & Co KG
Austria Vienna
100.00
100.00
13,707
13,576
PRIVATE JOINT-STOCK COMPANY
"INSURANCE COMPANY "KNIAZHA LIFE
VIENNA INSURANCE GROUP"
Ukraine Kyiv
99.81
99.81
6,515
2,922
Private Joint-Stock Company " Insurance
Company "USG "
Ukraine Kyiv
100.00
100.00
14,158
16,528
PRIVATE JOINT-STOCK COMPANY
"UKRAINIAN INSURANCE COMPANY
"KNIAZHA VIENNA INSURANCE GROUP"
Ukraine Kyiv
100.00
100.00
10,922
10,219
PROGRESS Beteiligungsges.m.b.H. Austria Vienna 70.00
70.00
18,813
17,769
Projektbau GesmbH Austria Vienna 100.00
100.00
24,377
14,106
Projektbau Holding GmbH Austria Vienna 100.00
100.00
25,181
14,183
Rathstraße 8 Liegenschaftsverwertungs
GmbH
Austria Vienna
100.00
100.00
1,125
1,087
Ray Sigorta A.Ş. Türkiye Istanbul 94.96
94.96
59,722
44,622
Rößlergasse Bauteil Drei GmbH Austria Vienna 100.00
100.00
11,885
11,841
Rößlergasse Bauteil Zwei GmbH Austria Vienna 100.00
100.00
30,413
30,241
S - budovy, a.s. Czech Republic Prague 100.00
100.00
3,040
3,189
Schulring 21 Bürohaus Errichtungs- und
Vermietungs GmbH & Co KG
Austria Vienna
100.00
100.00
5,756
5,737
SECURIA majetkovosprávna a podielová
s.r.o.
Slovakia Bratislava
100.00
100.00
7,444
7,505
Senioren Residenz Fultererpark Errichtungs-
und Verwaltungs GmbH
Austria Vienna
100.00
100.00
-7,293
-6,998
Senioren Residenz Veldidenapark
Errichtungs- und Verwaltungs GmbH
Austria Vienna
66.70
66.70
8,343
8,146
SIA “Alauksta 13/15” Latvia Riga 100.00
100.00
933
937
SIA “Artilērijas 35” Latvia Riga 100.00
100.00
1,111
1,146
SIA “Ģertrūdes 121” Latvia Riga 100.00
100.00
3,118
3,414
SIA "Global Assistance Baltic" Latvia Riga 100.00
100.00
250
287
SIA "LiveOn" Latvia Riga 100.00
70.00
27,445
26,699
SIA "LiveOn Stirnu" Latvia Riga 100.00
100.00
2,093
1,696
SIA LiveOn Terbatas Latvia Riga 100.00
100.00
5,017
5,191
SIA "Urban Space" Latvia Riga 100.00
100.00
360
481
SIGMA VIENNA INSURANCE GROUP Shoqëri
Aksionare
Albania Tirana
89.05
89.05
18,095
17,077
SK BM s.r.o. Slovakia Bratislava 100.00
100.00
13,562
13,345
SMARDAN 5 DEVELOPMENT S.R.L. Romania Bucharest 100.00
100.00
2,960
5,022
136
Annual Financial Report 2023
Fully consolidated companies Country of
domicile
Registered office
Interest 2023
1
Interest 2022
1
Equity 2023
2
Equity 2022
2
in %
in %
in
EUR ‘000
in
EUR ‘000
Stock Company for Insurance and
Reinsurance MAKEDONIJA Skopje - Vienna
Insurance Group
North Macedonia Skopje
94.50
94.36
25,410
25,898
SVZ GmbH Austria Vienna 100.00
100.00
230,374
203,598
SVZD GmbH Austria Vienna 100.00
100.00
63,227
62,031
SVZI GmbH Austria Vienna 100.00
100.00
221,098
200,314
T 125 GmbH Austria Vienna 100.00
100.00
9,256
9,179
TECHBASE Science Park Vienna GmbH Austria Vienna 100.00
100.00
13,993
13,649
twinformatics GmbH Austria Vienna 100.00
100.00
3,797
3,403
UAB LiveOn Linkmenu Lithuania Vilnius 100.00
100.00
6,446
3,660
UNION Vienna Insurance Group Biztosító Zrt.
Hungary Budapest 98.64
98.64
28,738
36,082
Untere Donaulände 40 GmbH & Co KG Austria Vienna 100.00
100.00
11,453
11,383
Vienibas Gatve Investments OÜ Estonia Tallinn 100.00
100.00
131
44
Vienibas Gatve Properties SIA Latvia Riga 100.00
100.00
1,576
1,624
Vienna Life Towarzystwo Ubezpieczeń na
Życie S.A. Vienna Insurance Group
Poland Warsaw
100.00
100.00
10,608
5,971
VİENNALİFE EMEKLİLİK VE HAYAT ANONİM
ŞİRKETİ
Türkiye Istanbul
100.00
100.00
46,117
38,063
Vienna-Life Lebensversicherung AG Vienna
Insurance Group
Liechtenstein Bendern
100.00
100.00
15,484
9,313
VIG-AT Beteiligungen GmbH Austria Vienna 100.00
100.00
309,593
354,694
VIG-CZ Real Estate GmbH Austria Vienna 100.00
100.00
147,640
147,548
V.I.G. ND, a.s. Czech Republic Prague 100.00
100.00
96,211
99,386
Vienna Insurance Group Polska Spółka z
organiczoną odpowiedzialnością
Poland Warsaw
100.00
100.00
13,935
18,256
VIG Befektetési Alapkezelő Magyarország
Zártkörűen Működő Részvénytársaság
Hungary Budapest
100.00
100.00
13,940
8,415
VIG FUND, a.s. Czech Republic Prague 100.00
100.00
273,607
276,262
VIG Home, s.r.o. Slovakia Bratislava 100.00
100.00
21,990
21,905
VIG HU GmbH Austria Vienna 100.00
99,800
VIG IT - Digital Solutions GmbH Austria Vienna 100.00
100.00
6,916
VIG Magyarország Befektetési Zártkörűen
Működő Részvéntársaság
Hungary Budapest
90.00
55.00
728,742
197,606
VIG Offices, s.r.o. Slovakia Bratislava 100.00
100.00
10,950
15,945
VIG Properties Bulgaria AD in Liquidation Bulgaria Sofia 99.97
99.97
948
1,084
VIG RE zajišťovna, a.s. Czech Republic Prague 100.00
100.00
294,932
140,255
VIG REAL ESTATE DOO Serbia Belgrade 100.00
100.00
2,205
10,672
VIG Türkiye Holding B.V. Netherlands Amsterdam 100.00
100.00
32,288
32,288
VIG ZP, s. r. o. Slovakia Bratislava 100.00
99.22
21,228
VIVECA Beteiligungen GmbH Austria Vienna 100.00
100.00
36,649
31,175
WGPV Holding GmbH Austria Vienna 100.00
100.00
106,537
105,287
WIBG Holding GmbH & Co KG Austria Vienna 100.00
100.00
80,193
80,258
WIBG Projektentwicklungs GmbH & Co KG Austria Vienna 100.00
100.00
80,557
80,191
Wiener Osiguranje Vienna Insurance Group
ad
Bosnia-
Herzegovina
Banja Luka
100.00
100.00
9,055
8,898
Wiener osiguranje Vienna Insurance Group
dioničko društvo za osiguranje
Croatia Zagreb
97.82
97.82
68,322
39,009
WIENER RE akcionarsko društvo za
reosiguranje
Serbia Belgrade
100.00
100.00
8,640
7,305
WIENER STÄDTISCHE OSIGURANJE
akcionarsko drustvo za osiguranje
Serbia Belgrade
100.00
100.00
43,591
39,289
WIENER STÄDTISCHE VERSICHERUNG AG
Vienna Insurance Group
Austria Vienna
97.75
97.75
670,369
633,264
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
137
Fully consolidated companies Country of
domicile
Registered office
Interest 2023
1
Interest 2022
1
Equity 2023
2
Equity 2022
2
in %
in %
in EUR ‘000
in EUR ‘000
WIENER TOWARZYSTWO UBEZPIECZEŃ
SPÓŁKA AKCYJNA VIENNA INSURANCE GROUP
Poland Warsaw
100.00
100.00
77,282
43,631
WIENER VEREIN BESTATTUNGS- UND
VERSICHERUNGSSERVICE-GESELLSCHAFT
M.B.H.
Austria Vienna
100.00
100.00
2,594
2,116
WILA GmbH Austria Vienna 100.00
100.00
37,473
37,119
WINO GmbH Austria Vienna 100.00
100.00
69,227
64,713
WNH Liegenschaftsbesitz GmbH Austria Vienna 100.00
100.00
6,791
6,187
Wohnquartier 11b Immobilienbesitz GmbH Austria Vienna 100.00
100.00
8,773
Wohnquartier 12b Immobilienbesitz GmbH Austria Vienna 100.00
97.75
13,641
WSBV Beteiligungsverwaltung GmbH & Co KG
Austria Vienna 100.00
100.00
50,192
25,371
WSV Beta Immoholding GmbH Austria Vienna 100.00
100.00
97,800
93,136
WSVA Liegenschaftbesitz GmbH Austria Vienna 100.00
100.00
56,160
55,423
WSVB Liegenschaftbesitz GmbH Austria Vienna 100.00
100.00
41,738
41,611
WSVC Liegenschaftbesitz GmbH Austria Vienna 100.00
100.00
21,352
21,327
WSV Immoholding GmbH Austria Vienna 100.00
100.00
623,271
582,027
WSV Triesterstraße 91 Besitz GmbH & Co KG Austria Vienna 100.00
100.00
81,453
80,979
WSV Vermögensverwaltung GmbH Austria Vienna 100.00
100.00
10,367
10,695
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.
At equity consolidated companies Country of domicile Registered
office
Interest 2023
1
Interest 2022
1
Equity 2023
2
Equity 2022
2
in %
in %
in
EUR ‘000
in
EUR ‘000
Beteiligungs- und Immobilien GmbH Austria Linz 25.00
25.00
21,515
20,405
Beteiligungs- und Wohnungsanlagen GmbH Austria Linz 25.00
25.00
245,881
237,778
CROWN-WSF spol. s.r.o. Czech Republic Prague 30.00
30.00
3,553
7,740
ERSTE d.o.o. - za upravljanje obveznim i
dobrovljnim mirovinskim fondovima
Croatia Zagreb
25.30
25.30
17,757
16,131
Gewista-Werbegesellschaft m.b.H. Austria Vienna 33.00
33.00
145,504
128,915
Österreichisches Verkehrsbüro
Aktiengesellschaft
Austria Vienna
36.58
36.58
22,998
53,300
Towarzystwo Ubezpieczeń Wzajemnych
„TUW"
Poland Warsaw
52.16
52.16
68,580
49,703
VBV - Betriebliche Altersvorsorge AG Austria Vienna 25.32
25.32
318,191
311,808
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.
Non-consolidated companies Country of domicile Registered office Interest 2023
1
in %
"Assistance Company" Ukrainian Assistance Service" LLC Ukraine Kyiv 100.00
"LIFETRUST" Ltd Bulgaria Sofia 100.00
"WIENER AUTO CENTAR" d.o.o. Bosnia-Herzegovina Banja Luka 100.00
AEGON SERVICES SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOŚCIĄ Poland Warsaw 100.00
AEGON TOWARZYSTWO UBEZPIECZEŃ NA ŻYCIE SPÓŁKA AKCYJNA Poland Warsaw 100.00
AIS Servis, s.r.o. Czech Republic Brno 98.10
Akcionarsko družstvo za životno osiguranje Wiener Städtische Podgorica, Vienna Insurance Group
Montenegro Podgorica 100.00
Alfa VIG Közvetítő Zrt. Hungary Budapest 90.00
Amadi GmbH Germany Wiesbaden 100.00
AQUILA Hausmanagement GmbH Austria Vienna 97.75
AREALIS Liegenschaftsmanagement GmbH Austria Vienna 48.87
arithmetica Consulting GmbH Austria Vienna 98.31
138
Annual Financial Report 2023
Non-consolidated companies Country of domicile Registered office Interest 2023
1
in %
Auto - Poly spol. s r.o. Czech Republic Prague 98.10
Autocentrum Lukáš s.r.o. Czech Republic
Wallachian
Meseritsch
98.10
AUTONOVA BRNO s.r.o. Czech Republic Brno 98.10
Autosig SRL Romania Bucharest 99.54
B&A Insurance Consulting s.r.o. Czech Republic Moravská Ostrava 48.45
BEESAFE SPÓŁKA Z OGRANICZONA ODPOWIEDZIALNOSCIA Poland Warsaw 99.99
Benefia Ubezpieczenia Spolka z ograniczona odpowiedzialnoscia Poland Warsaw 99.95
Bohemika a.s. Czech Republic Žatec 100.00
Bohemika HYPO s.r.o. Czech Republic Žatec 100.00
BSA + OFK Germany Real Estate Immobilien 4 GmbH Germany Frankfurt am Main 97.75
Bulstrad Trudova Meditzina EOOD Bulgaria Sofia 100.00
Camelot Informatik und Consulting Gesellschaft m.b.H. Austria Vienna 92.86
CARPATHIA PENSII-SOCIETATE DE ADMINISTRARE A FONDURILOR DE PENSII PRIVATE S.A. Romania Floresti 100.00
CARPLUS Versicherungsvermittlungsagentur GmbH Austria Vienna 97.75
CLAIM EXPERT SERVICES S.R.L. Romania Bucharest 99.16
Color Car, společnost s ručením omezeným (s.r.o.) Czech Republic
Königgrätz
(Hradec Králové)
98.10
Compensa Dystrybucja Sp. z o. o. Poland Warsaw 99.97
ČPP Servis, s.r.o. Czech Republic Prague 100.00
DBLV Immobesitz GmbH Austria Vienna 100.00
DBR-Liegenschaften Verwaltungs GmbH Germany Stuttgart 97.75
DELOIS s. r. o. Slovakia Bratislava 98.47
Domácí péče Haná s.r.o. Czech Republic Prerau 63.23
DV Asset Management EAD Bulgaria Sofia 100.00
DV CONSULTING EOOD Bulgaria Sofia 100.00
DV Invest EAD Bulgaria Sofia 100.00
EBV-Leasing Gesellschaft m.b.H. Austria Vienna 47.90
EKG UW Nord GmbH Austria Klagenfurt 24.46
Elsö Maganegeszsegügyi Halozat Zrt. Hungary Budapest 43.50
ERSTE Biztosítási Alkusz Kft Hungary Budapest 88.78
European Insurance & Reinsurance Brokers Ltd. United Kingdom London 100.00
EXPERTA Schadenregulierungs-Gesellschaft mbH Austria Vienna 99.44
Finanzpartner GmbH Austria Vienna 48.87
FinServis Plus, s.r.o. Czech Republic Prague 100.00
Foreign limited liability company "InterInvestUchastie" Belarus Minsk 100.00
FRANCE CAR, s.r.o. Czech Republic
Königgrätz
(Hradec Králové) 98.10
GELUP GmbH Austria Vienna 32.58
GGVier Projekt-GmbH Austria Vienna 53.76
Glamas Beteiligungsverwaltungs GmbH & Co "Beta" KG Austria Vienna 42.76
GLOBAL ASSISTANCE Croatia društvo s ograničenom odgovornošću za usluge Croatia Zagreb 49.46
GLOBAL ASSISTANCE D.O.O. BEOGRAD Serbia Belgrade 100.00
Global Assistance Georgia LLC Georgia Tbilisi 95.00
Global Assistance Polska Sp.z.o.o. Poland Warsaw 99.99
GLOBAL ASSISTANCE SERVICES s.r.o. Czech Republic Prague 100.00
GLOBAL ASSISTANCE SERVICES SRL Romania Bucharest 99.23
GLOBAL ASSISTANCE SLOVAKIA s.r.o. Slovakia Bratislava 99.22
Global Expert, s.r.o. Czech Republic Pardubice 98.10
Global Partner Beskydy, s.r.o. Czech Republic Prague 63.23
Global Partner Péče, z.ú. Czech Republic Prague 63.23
Global Partner Praha s.r.o. Czech Republic Prague 63.23
Global Partner Zdraví, s.r.o. Czech Republic Prague 63.23
Global Partner, a.s. Czech Republic Prague 63.23
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
139
Non-consolidated companies Country of domicile Registered office Interest 2023
1
in %
Global Repair Centres, s.r.o. Czech Republic Pardubitz 98.10
Global Services Bulgaria JSC Bulgaria Sofia 100.00
Help24 Assistance Korlátolt Felelősségű Társaság Hungary Budapest 90.00
Hotel Voltino in Liquidation Croatia Zagreb 97.82
HOTELY SRNÍ, a.s. Czech Republic Prague 97.28
HORIZONT Personal-, Team- und Organisationsentwicklung GmbH Austria Vienna 98.29
Hyundai Hradec s.r.o. Czech Republic
Königgrätz
(Hradec Králové) 98.10
insureX IT GmbH Austria Vienna 98.87
InterRisk Informatik GmbH Germany Wiesbaden 100.00
ITIS Spolka z ograniczoną odpowiedzialnoscią spolka komandytowa Poland Warsaw 99.99
ITIS Sp.z.o.o. Poland Warsaw 99.99
Joint Stock Company "Curatio" Georgia Tbilisi 90.00
Joint Stock Insurance Company WINNER LIFE - Vienna Insurance Group North Macedonia Skopje 100.00
K A P P A - P, spol. s r.o. Czech Republic Aussig 98.10
Kitzbüheler Bestattung WV GmbH Austria Kitzbühel 97.75
KUPALA Belarusian-Austrian Closed Joint Stock Insurance Company Belarus Minsk 98.26
KWC Campus Errichtungsgesellschaft m.b.H. Austria Klagenfurt 48.87
LD Vermögensverwaltung GmbH Austria Vienna 98.65
Lead Equities II.Private Equity Mittelstandsfinanzierungs AG Austria Vienna 21.59
LiSciV Muthgasse GmbH & Co KG Austria Vienna 42.76
Main Point Karlín II., a.s. Czech Republic Prague 97.28
MEDICINSKI CENTER AMERIMED OOD Bulgaria Sofia 51.00
Money & More Pénzügyi Tanácsadó Zártkörűen Működő Részvénytársaság Hungary Budapest 88.78
Nadacia poisťovne KOOPERATIVA Slovakia Bratislava 98.47
OC PROPERTIES OOD Bulgaria Sofia 51.00
Palais Hansen Hotelbetriebs GmbH Austria Vienna 97.75
PFG Liegenschaftsbewirtschaftungs GmbH Austria Vienna 73.42
POLISA - ŻYCIE Ubezpieczenia Sp.z.o.o. Poland Warsaw 99.97
Privat Joint-stock company "OWN SERVICE Ukraine Kyiv 100.00
PROFITOWI SPÓŁKA AKCYJNA Poland Warsaw 100.00
Renaissance Hotel Realbesitz GmbH Austria Vienna 40.00
Risk Consult Bulgaria EOOD Bulgaria Sofia 100.00
Risk Consult Polska Sp.z.o.o. Poland Warsaw 100.00
RISK CONSULT Sicherheits- und Risiko- Managementberatung Gesellschaft m.b.H. Austria Vienna 100.00
Risk Expert Risk ve Hasar Danismanlik Hizmetleri Limited Sirketi Türkiye Istanbul 98.49
Risk Experts s.r.o. Slovakia Bratislava 100.00
Risk Logics Risikoberatung GmbH Austria Vienna 100.00
samavu s.r.o. Slovakia Bratislava 98.47
Sanatorium Astoria, a.s. Czech Republic Karlsbad 97.28
S.C. Risk Consult & Engineering Romania S.R.L. Romania Bucharest 100.00
S.C. SOCIETATEA TRAINING IN ASIGURARI S.R.L. Romania Bucharest 99.16
Senioren Residenzen gemeinnützige Betriebsgesellschaft mbH Austria Vienna 97.75
serviceline contact center dienstleistungs-GmbH Austria Vienna 97.75
Slovexperta, s.r.o. Slovakia Sillein 98.70
Soleta Beteiligungsverwaltungs GmbH Austria Vienna 42.76
S.O.S.- EXPERT d.o.o. za poslovanje nekretninama Croatia Zagreb 100.00
Sparkassen-Versicherungsservice Gesellschaft m.b.H. Austria Vienna 97.75
Spółdzielnia Usługowa VIG EKSPERT W WARSZAWIE Poland Warsaw 99.97
SURPMO, a.s. Czech Republic Prague 97.28
TAUROS Capital Investment GmbH & Co KG Austria Vienna 19.55
TAUROS Capital Management GmbH Austria Vienna 25.30
TeleDoc Holding GmbH Austria Vienna 25.01
140
Annual Financial Report 2023
Non-consolidated companies Country of domicile Registered office Interest 2023
1
in %
TGMZ Team Gesund Medizin Zentren GmbH Austria Vienna 39.10
TOGETHER CCA GmbH Austria Vienna 24.71
UAB "Compensa Life Distribution" Lithuania Vilnius 100.00
UNION-Erted Ellatasszervezö Korlatold Felelössegü Tarsasag Hungary Budapest 88.78
Versicherungsbüro Dr. Ignaz Fiala Gesellschaft m.b.H. Austria Vienna 47.90
VENPACE GmbH & Co. KG Germany Cologne 23.53
Vienna International Underwriters GmbH Austria Vienna 100.00
VIENNA POWSZECHNE TOWARZYSTWO EMERYTALNE SPÓŁKA AKCYJNA VIENNA INSURANCE GROUP Poland Warsaw 100.00
viesure innovation center GmbH Austria Vienna 98.87
VIG AM Real Estate, a.s. Czech Republic Prague 100.00
VIG AM Services GmbH Austria Vienna 100.00
VIG Management Service SRL Romania Bucharest 99.16
VIG platform partners GmbH Austria Vienna 100.00
VIG Poland/Romania Holding B.V. Netherlands Amsterdam 100.00
VIG POLSKA REAL ESTATE SPÓŁKA Z OGRANICZONA ODPOWIEDZIALNOSCIA Poland Warsaw 99.97
VIG Services Bulgaria EOOD Bulgaria Sofia 100.00
VIG Services Shqiperi Sh.p.K. Albania Tirana 89.52
VIG Services Ukraine, LLC Ukraine Kyiv 89.52
VIG/C-QUADRAT TOWARZYSTWO FUNDUSZY INVESTYCYJNYCH SPÓŁKA AKCYJNA Poland Warsaw 50.99
VÖB Direkt Versicherungsagentur GmbH Austria Graz 48.87
Wiener Städtische Donau Leasing GmbH Austria Vienna 97.75
Wiener Verein Bestattungsbetriebe GmbH Austria Kramsach 97.75
WSBV Beteiligungsverwaltung GmbH Austria Vienna 97.75
zuuri s.r.o. Slovakia Bratislava 98.47
1
The share in equity equals the share in voting rights before non-controlling interests.
Merged companies Country of domicile Registered office Merger date Absorbing company
VIG Hungary Holding B.V. Netherlands The Hague 31/01/2023
VIG Magyarország Befektetési Zártkörűen
Működő Részvéntársaság
VIG Hungary Holding II B.V. Netherlands The Hague 31/01/2023
VIG Magyarország Befektetési Zártkörűen
Működő Részvéntársaság
Bulgarski Imoti Asistans EOOD Bulgaria Sofia 19/05/2023
VIG Properties Bulgaria AD
23. AUDITING FEES AND AUDITING SERVICES
The auditor of these consolidated financial statements is KPMG Austria GmbH Wirtschaftsprüfungs- und
Steuerberatungsgesellschaft (KPMG Austria GmbH). The following expenses were recognised for services provided by
KPMG Austria GmbH and the Austrian member companies (KPMG Austria wide) in the financial year:
Composition 2023 2022
KPMG Austria wide
KPMG Austria GmbH
Total
Total
in
EUR ‘000
Audit of consolidated financial statements 0
1,623
1,623
745
Audit of parent company financial statements 0
75
75
62
Other audit services 214
0
214
991
Tax advisory fees 14
0
14
3
Fees for audit-related services 25
154
179
176
Total 253
1,852
2,105
1,977
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
141
24. MATERIAL ESTIMATES AND DISCRETIONARY DECISIONS
24.1. (Re-) insurance contracts
The assumptions and estimates are based on all parameters available when the consolidated financial statements were
prepared. Future developments may change due to market changes or circumstances arising that are outside of the
influence of VIG Insurance Group. Such changes are reflected in the assumptions when they occur. The information is
disaggregated to disclose the IFRS 17 measurement models, namely GMM, VFA and PAA. This disaggregation closely
follows the structure of the IFRS 17 portfolios at VIG, which can generally be described as follows:
• Unit-linked life insurance contracts, participating life insurance contracts and the Austrian health insurance business by
type of life insurance are measured by the VFA method,
• Property and casualty insurance contract portfolios will primarily be measured with PAA and
• Long-duration property and casualty insurance contracts not fulfilling the PAA criteria, life insurance contracts not
fulfilling the VFA criteria, and reinsurance contracts will be measured using the GMM.
The methods used to measure insurance contracts in the life and health business
The present value of future cash flows will be determined by different approaches depending on the decision of local
companies. Both stochastic modelling and deterministic projection are used within the group. In contrast to deterministic
projection techniques, stochastic modelling apply techniques to generate a large number of possible economic scenarios
for market variables such as interest rates and equity returns to project future cash flows.
ASSUMPTIONS USED TO ESTIMATE FUTURE CASH FLOWS
Mortality, morbidity and longevity rates
Assumptions are based on standard industry and national tables, according to the type of contract written and the territory
in which the insured person resides. They reflect recent historical experience and are adjusted when appropriate to reflect
the local companies experiences. An appropriate, but not excessive, allowance is made for expected future improvements.
The assumptions differ, for example, depending on the insurance class and type of contract.
An increase in expected mortality and morbidity rates will increase the expected claim cost which will reduce the future
CSM as a consequence.
Expenses
Administrative expenses assumptions reflect the projected costs of maintaining and servicing in-force policies and
associated overhead expenses. The current level of expenses is taken as an appropriate expense base for future expenses,
adjusted for expected expense inflation, if appropriate.
An increase in the expected level of expenses will reduce future expected profits.
The cash flows within the contract boundary include an allocation of fixed and variable overheads directly attributable to
fulfilling insurance contracts. Such overheads are allocated to groups of insurance contracts (GICs) using methods that are
systematic and rational. These methods are consistently applied to all costs that have similar characteristics.
142
Annual Financial Report 2023
Lapse and surrender rates
Lapses relate to the termination of policies due to non-payment of premiums whereas surrenders relate to the voluntary
termination of policies by policyholders. Policy termination assumptions are determined using statistical measures based
on experiences and vary by product type, policy duration and sales trends.
An increase in cancellation rates would tend to reduce the future CSM.
The sensitivities are presented in Note 1.8. Insurance and market risks – sensitivity analysis starting on page 84.
THE METHODS USED TO MEASURE INSURANCE CONTRACTS IN THE NON-LIFE BUSINESS
The significant assumptions for non-life business are covered in Note Liability for Incurred Claims (LIC) starting on
page 145.
DISCOUNT RATES
All insurance contract liabilities (except for the liability for remaining coverage measured under PAA) are calculated by
discounting expected future cash flows at risk-free interest rates plus an illiquidity correction.
Risk-free interest rates are determined by a bottom-up approach with reference to swap rates in the currency of the insurance
contract liabilities, or government bond rates where swap rates cannot be considered sufficient, liquid and transparent.
The illiquidity adjustment to the relevant risk-free interest rates is based on the risk-corrected spread between the interest
rate that could be earned from a reference portfolio and the risk-free basic interest rates. Reference portfolio weights are
calculated considering all of VIGs applicable investments grouped by country.
Interest rates applied for discounting of future cash flows are presented in Note 1.2. Assumptions used starting on page 63.
RISK ADJUSTMENT FOR NON-FINANCIAL RISKS
The risk adjustment for non-financial risks represents the compensation required for bearing the uncertainty about the
amount and timing of the cash flows of GICs and covers insurance risk, lapse risk and expense risk. The risk adjustment
therefore reflects an amount that an insurance company would pay to remove the uncertainty about whether future cash
flows will exceed the best estimate.
The risk adjustment estimation was carried out using the cost of capital technique (CoC technique). The CoC technique
requires estimating the probability distribution of the fulfilment cash flows and the additional capital that it requires at each
future date in the cash flow projection to comply with economic capital requirements.
A CoC rate is applied to the additional capital requirement in future reporting periods. The cost of capital represents the return
required by a company to compensate for exposure to the non-financial risks. The calculated risk adjustment at future terms is
discounted to the reporting date at the discount rate, to be held as a part of the total life insurance contract liability.
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AMORTISATION OF THE CONTRACTUAL SERVICE MARGIN (CSM)
The CSM is a component of the asset or liability for the group of insurance contracts that represents the unearned
profit a company will recognise as it provides services in the future. In each period, an amount of the CSM for a group of
insurance contracts is recognised in profit and loss as insurance service revenue to reflect the insurance contract services
provided under the group of insurance contracts in that period. This amount is determined by:
• identifying the coverage units in the group;
• allocating the CSM at the end of the period equally to each coverage unit provided in the current period or expected to
be provided in the future. Allocation takes place before amounts that reflect the insurance service expense made in the
period are recognised through profit and loss;
• recognising through profit and loss the amount allocated to coverage units provided in the period.
In order to determine the number of coverage units in a group of insurance contracts, the number of benefits provided to
the policyholder which combines insurance coverage services and investment services has to be measured. When
weighting different services, the consolidated group generally considers the split of the present value of premium in risk and
savings parts to weight the release components. However, in some cases there might also be the need to weight different
insurance coverages when determining the number of coverage units. The present value of premiums of each insurance
coverage is used for this.
The quantity of benefits and coverage units for its main product lines is as follows:
For portfolios for the non-life, health and non-life reinsurance issued approximate the insurance services provided with the
projected earned premium. The majority of these services are the insurance coverage. The coverage unit is therefore the
projected earned premium.
For groups of life annuities contracts, the quantity of benefits for both insurance coverage and investment service are
mathematical reserves, thus the coverage unit is also the mathematical reserve. For term life insurance without surrender
value and riders, which only provide insurance coverage, the quantity of benefits is the contractually agreed sum insured
over the period of the contract. For these products, the coverage unit is therefore also the contractually agreed sum insured.
For unit- and index-linked contracts the quantity of investment service is determined by fund value, therefore the fund value
is used as coverage unit.
For endowment without riders and term insurance with surrender value a measure for insurance coverage is the sum at risk
and a measure for investment service is the mathematical reserve. The sum assured is used as coverage unit, since it
represents both components: the insurance component part (sum at risk) and the investment component part
(mathematical reserve or fund value). In this case no further weighting is necessary.
For reinsurance contracts held, the number of coverage units in a group reflects the expected pattern of underwriting of
the underlying contracts because the level of service provided depends on the number of underlying contracts in force.
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The total coverage units of each group of (re-) insurance contracts is reassessed at the end of each reporting period. This
adjusts for the reduction of remaining coverage for claims paid, expected lapses and cancellation of contracts in the period.
LIABILITY FOR REMAINING COVERAGE (LRC)
The calculation of the LRC involves many discretionary figures, including discount rates, the cash flows assumed in the
calculation, acquisition costs and fulfilment cash flows for onerous contracts.
Insurance acquisition costs
Insurance acquisition costs are allocated to related groups of insurance contracts recognised in the consolidated balance
sheet (including those groups that will include insurance contracts expected to arise from renewals). An asset for insurance
acquisition costs is recognised for acquisition costs incurred before the related group of insurance contracts has been
recognised.
Groups of onerous insurance contracts
For groups of onerous contracts, the liability for remaining coverage is determined by the fulfilment cash flows. Any loss-
recovery component is determined with reference to the loss component recognised on underlying contracts and the
recovery expected on such claims from reinsurance contracts held.
Time value of money
For all product lines, the book value of the liability for remaining coverage is discounted to reflect the time value of money and
the effect of financial risk. Excluded are those measured under PAA and that are not onerous. For the interest rates applied,
discount rates that reflect the characteristics of the cash flows of the group of insurance contracts at initial recognition are used.
The applied discount rates can be seen in Note 1.2. Assumptions used starting on page 63.
Discretionary cash flows for indirect profit participating contracts
To determine how to identify changes in discretionary cash flows for insurance contracts with discretionary features which
do not meet the definition of direct profit participation, local entities specify the basis on which they expect to determine
their commitment under the contract. However, the effects of market variables (e.g. investment returns) on the cash flows
should still flow through P&L or be optionally recognised in OCI and should not lead to an adjustment of the CSM.
ASSETS FOR INSURANCE ACQUISITION COSTS
VIG applies discretionary decision in determining the inputs used in the methodology to systematically and rationally allocate
acquisition costs to groups of insurance contracts to determine:
• whether insurance contracts are expected to arise as a result of renewals of existing insurance contracts, and
• if applicable, with respect to the amount to be allocated to groups, including future renewals,
• as well as with respect to the volume of expected renewals from new contracts issued in the period.
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At the end of each reporting period, the assumptions made are adjusted to allocate acquisition costs to the contract groups.
Where necessary, the amounts of assets are revised for insurance acquisition costs accordingly.
LIABILITY FOR INCURRED CLAIMS (LIC)
For the non-life business, the LIC is a major component of the recognition of insurance contracts.
Here, the ultimate cost of outstanding claims is estimated by using a range of standard actuarial claims projection
techniques. The main assumption underlying these techniques is the use of past claims development experiences to project
future claims development and hence ultimate claims costs. These methods extrapolate the development of paid and
incurred losses, average costs per claim (including claims handling costs), and claim numbers based on the observed
development of earlier years and expected loss ratios. Historical claims development is mainly analysed by claims years,
but can also be further analysed by geographical area, as well as by significant business lines and claim types. Large claims
are usually separately addressed, either by being reserved at the face value of loss adjuster estimates or separately
projected in order to reflect their future development.
Additional qualitative discretionary decision is used to assess the extent to which past trends may not apply in the future
and in order to arrive at the estimated ultimate cost of claims that present the probability weighted expected value outcome
from the range of possible outcomes, taking account of all the uncertainties involved.
Such trends could be, for example, one-off occurrences, changes in external or market factors such as public attitudes to
claiming, economic conditions, levels of claims inflation, judicial decisions and legislation, as well as internal factors such
as portfolio mix, policy features and claims handling procedures.
The enforceability and collectability of salvage recoveries and subrogation reimbursements are considered as an allowance
in the measurement of ultimate claims costs.
Other key circumstances affecting the reliability of assumptions include variation in interest rates, delays in settlement and
changes in foreign currency exchange rates.
24.2. Impairment losses on financial assets
The measurement of impairment losses acc. to IFRS 9 across relevant financial assets requires discretionary decisions, in
particular for the estimation of the amount and timing of future cash flows when determining impairment losses and the
assessment of a significant increase in credit risk. These estimates are driven by the outcome of modelled ECL scenarios
and the relevant inputs used as described in chapter Impairment of financial assets starting on page 167.
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24.3. Financial instruments recognised at fair value (Level 3)
The fair value of financial instruments not traded on an active market is determined by applying appropriate valuation
techniques. The assumptions used here are based on market data available on the reporting date, if available. VIG Insurance
Group uses present value methods whilst taking into consideration suitable interest rate models to determine the fair value
of numerous financial assets which are not actively traded on markets. Further information about the valuation process can
be found in Note 16. Calculation of fair value starting on page 119. The impairment of financial assets is explained in 24.2.
Impairment losses on financial assets.
24.4. Impairment of goodwill
In accordance with the methods explained in chapter 25.5. Goodwill starting on page 171, at least once a year it is
determined whether an impairment of goodwill exists. Estimates in this area concern above all the calculations for the
underlying planned results of the respective CGUs and specific parameters, especially growth and discount rates. Any
sensitivities associated with these parameters are presented in Note 3. Goodwill starting on page 100.
24.5. 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, the 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 operation,
• operating plans,
• loss carryforward periods,
• tax planning strategies and
• existing deferred tax liabilities.
There is one tax group consisting of Austrian and some of the foreign companies. Reference is made in this regard to page 180.
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 in chapter Accounting policies in 25.13. Taxes starting on page 179 and in Note 11. Taxes on page 112.
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24.6. Method of consolidation
Discretionary decisions by the Managing Board primarily concern determining the scope of consolidation for consolidated
subsidiaries.
Subsidiaries 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.
24.7. Materiality of Notes and the associated accounting policies
According to IAS 1.31, only material information should be disclosed in financial statements even when a Standard
prescribes certain requirements or minimum requirements. The goal of the IASB in this paragraph in combination with an
officially published Practice Statement on this subject was to create a clear and comprehensible basis for financial reporting
utilising the most important information. The decision as to whether any given disclosure constitutes material or immaterial
information is open to discretionary judgement. The Managing Board of VIG Holding has introduced a threshold value for
assessing the materiality of disclosures and the related accounting policies. If the amount involved is less than the threshold
value, the information is only published in the Annual Report if it has been deemed to be material for users of the financial
statements on the basis of qualitative criteria during the release process.
25. ACCOUNTING POLICIES
25.1. Currency translation
Transactions in foreign currencies
The individual financial statements for each subsidiary are prepared in the currency that prevails in the environment of the
ordinary course of business of the company (functional currency). Within VIG Insurance Group, the functional currency is
usually the main local currency. Transactions which have been concluded in a currency that is not the functional currency
will be recorded using the mean rate of exchange on the day of the respective transaction. Monetary assets and liabilities
in foreign currency existing on the balance sheet date are translated to euros using the mean rate of exchange on the
reporting date. Any resulting foreign currency gains and losses are recognised in the income statement.
Conversion of individual financial statements denominated in foreign currencies
Assets, liabilities and income and expenses are presented in euros, the reporting currency of VIG Holding. All assets and
liabilities reported in the individual financial statements are translated to euros using the mean rate of exchange on the
reporting date. The income statement items are converted using the average mean rate of exchange at the end of the
month. In the consolidated cash flow statement, the mean rate of exchange on the reporting date is used for changes in
balance sheet items, and the average mean rate of exchange at the end of the period is used for changes in income
statement items. Currency translation differences, including those resulting from using the equity method of accounting,
are recognised directly in equity.
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In accordance with the hyperinflation accounting rules, the mean exchange rate on the balance sheet date was applied for
all items of the financial statements of the Turkish insurance companies.
Currency End-of-period exchange rate Average exchange rate
31/12/2023
31/12/2022
2023
2022
1 EUR
≙
Albanian lek ALL 103.8800
114.2300
108.7483
118.9211
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 2.9960
2.8844
2.8432
3.0686
Croatian kuna HRK/EUR 1.0000
7.5365
1.0000
7.5349
Macedonian denar MKD 61.4950
61.4932
61.5572
61.6219
Moldovan leu MDL 19.3574
20.3792
19.6431
19.8982
New Turkish Lira TRY 32.6531
19.9649
25.7597
17.4088
Polish zloty PLN 4.3395
4.6808
4.5420
4.6861
Romanian leu RON 4.9756
4.9495
4.9467
4.9313
Swiss franc CHF 0.9260
0.9847
0.9718
1.0047
Serbian dinar RSD 117.1737
117.3224
117.2530
117.4641
Czech koruna CZK 24.7240
24.1160
24.0043
24.5659
Ukraine hryvnia UAH 42,2079
38.9510
39.5619
33.9954
Hungarian forint HUF 382.8000
400.8700
381.8527
391.2865
US Dollar USD 1.1050
1.0666
1.0813
1.0531
25.2. Business combinations
Establishing the scope of consolidation
The materiality or immateriality of subsidiaries, associated companies and joint arrangements for the consolidated financial
statements is checked using a variety of thresholds defined at the VIG Holding level. These also include qualitative assess-
ment criteria. For this purpose, the absolute result before taxes or the total assets are checked, for example. If a company
does not fulfil any size criteria, a second step is performed to check whether the companies that are not included are
material when taken as a whole. If this is not the case, these companies will not be included in the scope of consolidation.
Companies that have no material effect on the Group’s net assets, financial position and results of operations when
considered individually and in the aggregate are essentially measured at fair value.
Fully controlled investment funds (“special funds”) were fully consolidated in accordance with the requirements of IFRS 10.
These consolidated special funds are not independent units under company law and are therefore not considered to be
structured companies as defined in IFRS 12. This concerns investment funds which are not designed for the public capital
markets. Due to a lack of controlling influence, public investment funds, despite holding the majority of the voting rights,
are not consolidated. Company law and regulatory requirements can restrict the ability of subsidiaries to transfer financial
means (in the form of dividends) to the parent company.
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Accounting for business combinations
Business combinations are recognised using the purchase method. Goodwill is recognised as the value of the consideration
transferred in a business combination and all non-controlling interests in the acquired company less the identifiable assets
acquired and liabilities assumed. In any business combination, present non-controlling interests that entitle holders to a
proportionate share of the entity’s net assets in the event of a liquidation can be measured either at fair value or as 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 assets and liabilities of the acquired subsidiary measured at fair value, the difference is checked again and recognised
directly in the income statement. As a rule, the fair values calculated in accordance with IFRS 13 of all assets (incl. goodwill
and other intangible assets) and liabilities are allocated to the country to which the purchased company is assigned.
Deferred tax assets acquired during a business combination and arising under IAS 12.66 et seqq. on the acquisition date
are tested for impairment in accordance with IAS 12.37.
The Group considers the reported goodwill to reflect the value of the ability to make use of the insurance-specific expertise
of the employees of the acquired companies. When a market is entered, it represents the ability to offer insurance products
in a country and take advantage of the opportunities that exist there. In countries where the Group is already represented
by one or more companies, the goodwill also represents the possibility of making use of potential synergies.
When real estate holding companies are acquired, they are checked to see whether they include business operations. If
they do not, the purchase method is not used. In such cases, the acquisition costs, including transaction costs, are
distributed among the acquired assets and assumed liabilities based on fair value. No deferred taxes are recognised in
such cases (initial recognition exemption). Goodwill cannot arise in this context.
All company acquisitions were carried out using cash and cash equivalents. A list of fully and at equity consolidated
companies can be found starting on page 133 in Note 22. Affiliated companies and participations.
25.3. (Re-) insurance contracts
Classification
Insurance contracts are defined as contracts under which one party (the insurer) accepts significant insurance risk from
another party (the policyholder), by agreeing to provide compensation to the policyholder if a specified uncertain future
event (the insured event) negatively affects the policyholder. Financial risk is the risk of a possible future change in e.g.
specific interest rates, securities prices, price indices, interest rate indices, credit ratings and credit indices. It must be noted
that in the case of a non-financial variable, the variable is not specific to one counterparty. In many cases, particularly in the
life insurance area, insurance policies as defined in IFRS 17 also transfer financial risk.
Some contracts have the legal form of insurance contracts but do not transfer significant insurance risk. Such financial
insurance policies exist only to a minor extent in the personal insurance area. These contracts are classified as financial
liabilities and are defined as “investment contracts”. Investment contracts are generally out of the IFRS 17 scope. However,
if investment contracts have discretionary participation features, these contracts are nevertheless within IFRS 17-scope.
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The majority of the VIG life insurance contracts are eligible to be measured using the VFA. These are contracts for which,
at inception:
• the contractual terms specify that the policyholder participates in a share of a clearly identified pool of underlying items;
• it is expected to pay to the policyholder an amount equal to a substantial share of the fair value returns on the
underlying items; and
• it is expected that a substantial proportion of any change in the amounts to be paid to the policyholder will vary with the
change in fair value of the underlying items.
This primarily concerns VIG’s Austrian and German policies in the life insurance balance sheet unit. In the life business of
virtually all other countries the policyholder participation is at the sole discretion of the company concerned. These products
are measured with GMM.
In the primary P&C insurance, the PAA is applied to measure short duration insurance contracts and is the preferred
measurement approach. This is also the case for long-duration P&C insurance contracts if the measurement under PAA is
not substantially different to the measurement under GMM. Long-duration insurance contracts in primary insurance without
direct participation features are generally measured with GMM. Neither held nor issued reinsurance contracts can be
classified as direct profit participation contracts, which is why these cannot be assessed using the VFA. Reinsurance
contracts are therefore assessed either with the PAA or the GMM.
Accounting treatment
SEPARATING COMPONENTS
Before VIG accounts for an insurance or reinsurance contract based on the guidance in IFRS 17, it analyses whether the
contract contains components that should be separated. Meaning, those components must be accounted for under
another IFRS rather than IFRS 17 (distinct non-insurance components). After separating any distinct non-insurance
components, IFRS 17 is applied to all remaining components of the insurance contract.
Investment components are defined as the amounts that an insurance contract requires an insurer to repay to a policyholder
in all circumstances, regardless of whether an insured event has occurred or not. Investment components (e.g. surrender
options in life insurance contracts) which are highly interrelated with the insurance contract, of which they form a part, are
considered non-distinct and are not separately accounted for. However, receipts and payments of the investment
components are excluded from insurance service revenue and insurance servide expenses. Some insurance contracts
require to repay an amount but not in all circumstances and not as a result of an insured event. These amounts represent
premium refunds and reduce insurance service revenue and insurance service expenses. The group presents premium
refunds as deductions within the premiums received.
Some reinsurance contracts held contain certain commission arrangements. According to their nature, commissions may be:
• deducted from premiums received,
• included within claims or
• treated as an investment component.
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LEVEL OF AGGREGATION
After identifying which insurance contracts are within the scope of IFRS 17, taking into account the effects of the
combination of insurance contracts, separation of distinct non-insurance components, and the separation of multiple
insurance contracts contained within a single legal policy document, IFRS 17 necessitates to define the level of aggregation
for applying its requirements.
The level of aggregation is determined firstly by dividing the business written into portfolios. Portfolios comprise groups of
contracts with similar risks which are managed together. Based on their expected profitability at inception, portfolios are
afterwards split into three categories:
• onerous contracts,
• contracts with no significant risk of becoming onerous; and
• the remainder.
For GMM and PAA, IFRS 17 also notes that no group for level of aggregation purposes may contain contracts issued more
than one year apart. For its VFA business, VIG applies the optional exemption from forming groups based on underwriting
year (annual cohorts) that is applicable in the European Union. This option provides an exemption from the formation of
annual cohorts for intergenerationally mutualised and cash flow matched insurance contracts. This is to allow for an
appropriate cost-benefit ratio at the time the contractual service margin is recognised. This exemption primarily concerns
long-term life insurance with profit participation and long-term health insurance.
Once the groups of insurance contracts are determined, they become the unit of account to which the consolidated
insurance companies apply requirements of IFRS 17. This means that IFRS 17 metrics such as fulfilment cash flows, the
Contractual Service Margin (“CSM”) and loss components should be available at this granularity. VIG has defined portfolios
of insurance and reinsurance contracts issued based on the Solvency II structure for life, health and P&C insurances due
to the fact that the products are subject to similar risks and managed together.
In determining groups of contracts, VIG has decided to group together those contracts that would fall into different groups
only because law or regulation specifically constrains its practical ability to set a different price or level of benefits for
policyholders with different characteristics.
The groups of contracts for which the fair value approach has been adopted on transition include contracts issued more
than one year apart. Please refer to the transition approach applied by VIG in chapter Transition starting on page 49.
In most cases, the profitability of groups of contracts are assessed by actuarial cash flow models and profitability metrics
that take into consideration existing and new business. For insurance contracts measured applying PAA, it is assumed that
no contracts in the portfolio are onerous at initial recognition unless facts and circumstances indicate otherwise. For
contracts that are not onerous, it has to be assessed, at initial recognition, that there is no significant possibility of becoming
onerous subsequently by assessing the likelihood of changes in applicable facts and circumstances. Please refer to chapter
Onerous contracts starting on page 152 for further information on onerous contracts.
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Portfolios of reinsurance contracts held are divided applying the same principles set out above, except that the references
to onerous contracts refer to contracts on which there is a net gain on initial recognition. It is possible that a group of
reinsurance contracts held comprises a single contract.
For the consolidated insurance companies, the direct insurance and optional reinsurance were grouped into the following
IFRS 17 portfolios for P&C, life and health insurance.
• Life insurance:
– With profit participation
– Unit- and index-linked
– Other
– Issued and held Treaty reinsurance
– Facultative issued reinsurance
– Facultative held reinsurance
• Health insurance:
– Long-term health insurance (similar to life)
– Issued and held Treaty reinsurance
• Property and casualty insurance:
– Medical expense insurance
– Income protection insurance
– Workers‘ compensation insurance
– Motor vehicle liability insurance
– Other motor insurance
– Marine, aviation and transport insurance
– Fire and other damage to property insurance
– General liability insurance
– Credit and suretyship insurance
– Legal expenses insurance
– Assistance
– Miscellaneous financial losses
– Issued and held Treaty reinsurance
– Facultative issued reinsurance
– Facultative held reinsurance
ONEROUS CONTRACTS
Some contracts are issued before the coverage period starts and the initial premium becomes due. Therefore, the
consolidated insurance companies determine before the beginning of the coverage period or at the time when the first
payment from the policyholder in the group is due, depending on which occurs earlier, whether issued contracts constitute
a group of onerous contracts. To identify whether a group of contracts is onerous, facts and circumstances are considered
based on:
• pricing information,
• results of similar contracts the group has recognised and
• environmental factors, like changes in market or regulations.
Further details are discussed in chapter Presentation starting on page 160.
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RECOGNITION
Groups of insurance contracts issued have to be recognised from the earliest of the following:
• The beginning of the coverage period of the group of contracts;
• The date when the initial payment from a policyholder in the group of contracts is due, or when the first payment is
received if there is no due date; or
• For a group of onerous contracts, as soon as facts and circumstances indicate that the group is onerous.
Proportional and non-proportional groups of reinsurance contracts held have to be recognised at the latest of the following:
• The beginning of the coverage period of the group of reinsurance contracts held or
• The date the consolidated insurance companies recognise an onerous group of underlying insurance contracts if the
consolidated insurance companies entered into the related reinsurance contract held in the group of reinsurance
contracts held at or before that date.
Additionally, the recognition of proportional groups of reinsurance contracts held are delayed until the date when any
underlying insurance contract is initially recognised, if that date is later than the beginning of the coverage period of the
group of reinsurance contracts held.
New contracts are added to the group in the reporting period in which that contract meets one of the criteria set out
above.
CONTRACT BOUNDARY
The measurement of a group of insurance contracts includes all future cash flows within the boundary of each contract in
the group. Cash flows are within the boundary of an insurance contract if they arise from substantive rights and obligations
that exist during the reporting period in which the policyholder can be compelled to pay the premiums, or in which a
substantive obligation exists to provide the policyholder with insurance contract services. A substantive obligation to provide
insurance contract services ends when:
• the practical possibility exists to reassess the risks of the particular policyholder and, as a result, a price or level of
benefits can be set that fully reflects those risks; or both of the following criteria are satisfied:
– the practical ability exists to reassess the risks of the portfolio of insurance contracts that contain the contract and, as
a result, a price or level of benefits can be set that fully reflects the risk of that portfolio; as well as
– the pricing of the premiums up to the date when the risks are reassessed does not take into account the risks that
relate to periods after the reassessment date.
A liability or asset relating to expected premiums or claims outside the boundary of the insurance contract are not
recognised as these amounts relate to future insurance contracts.
For contracts with renewal periods, it is assessed whether premiums and related cash flows that arise from the renewed
contract are within the contract boundary. The pricing of the renewals on which IFRS 17 is applied, is established by
considering all the risks covered for the policyholder that would be considered when underwriting equivalent contracts on
the renewal dates for the remaining service. The contract boundary of each group of contracts is reassessed at the end of
each reporting period.
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INITIAL MEASUREMENT
Insurance contracts not measured under PAA
The GMM measures a group of insurance contracts as the total of:
• the fulfilment cash flows and
• the CSM, representing the unearned profit the consolidated insurance companies will recognise as they provide
insurance contract services under the insurance contracts in the group.
The fulfilment cash flows consist of:
• unbiased and probability-weighted estimates of future cash flows,
• a discount to present value to reflect the time value of money and financial risks,
• plus a risk adjustment for non-financial risks.
The objective in estimating future cash flows is to determine the expected value or the probability-weighted mean value of
the full range of possible outcomes, considering all reasonable and supportable information available at the reporting date
without undue cost or effort. Future cash flows are estimated considering a range of scenarios which have economical
substance and give a good representation of possible outcomes. The cash flows from each scenario are probability-
weighted and discounted using current assumptions.
When estimating future cash flows, all cash flows within the contract boundary are considered for example:
• premiums and any additional related cash flows,
• claims and benefits, including reported claims not yet paid, incurred claims not yet reported and expected future claims
including:
– payments to policyholders that vary depending on returns of underlying items and
– allocation of insurance acquisition costs attributable to the portfolio to which the contract belongs.
• claims handling costs,
• policy administration and maintenance costs, including recurring commissions that are expected to be paid to
intermediaries,
• allocation of fixed and variable overheads directly attributable to fulfilling insurance contracts,
• transaction-based taxes.
The measurement of fulfilment cash flows includes insurance acquisition costs that are recognised as an expense over the
coverage period of the group of insurance contracts. At the same time an equal amount is recorded as revenue representing
a portion of premium that relates to recovering insurance acquisition costs.
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Insurance contracts measured under PAA
VIG applies the premium allocation approach (PAA) at least to all short-term P&C insurance contracts that it issues, as:
• the coverage period of each contract in the group is one year or less, including insurance contract services arising from
all premiums within the contract boundary (refer to chapter Contract boundary starting on page 153), or
• for contracts longer than one year, VIG has modelled possible future scenarios and assumes that the measurement of
the liability for remaining coverage for the group containing those contracts under the PAA does not differ materially
from the measurement that would result from the application of the GMM. In assessing materiality, VIG has also
considered qualitative factors such as the nature of the risk and types of its insurance portfolios.
The PAA is not applied if, at the initial recognition of the group of contracts, a significant variability in the fulfilment cash
flows is expected that would affect the measurement of the liability for the remaining coverage (LRC) during the period
before a claim is incurred. Variability in the fulfilment cash flows increases with, for example:
• the extent of future cash flows related to any derivatives embedded in the contracts and
• the length of the coverage period of the group of contracts.
For a group of contracts that is not onerous at initial recognition, the liability for remaining coverage is measured as:
• the premiums, if any, received at initial recognition,
• minus any insurance acquisition cash flows at that date,
• plus or minus any amount arising from the derecognition at that date of As an asset recognised insurance acquisition
costs
• any other assets or liabilities previously recognised for cash flows prior to the recognition of the group of insurance
contracts.
Where facts and circumstances indicate that contracts are onerous at initial recognition, additional analysis helps
determining if a net outflow is expected from the contract. Such onerous contracts are separately grouped from other
contracts and a loss is recognised in profit and loss for the net outflow, resulting in the book value of the liability for the
group being equal to the fulfilment cash flows. A loss component is established for the liability for remaining coverage for
such onerous group depicting the losses recognised. For additional disclosures on the loss component, please refer to
chapter Presentation starting on page 160 and for onerous contracts to chapter Onerous contracts starting on page 152.
For contracts measured using the PAA, VIG accounting policy does not, in general, permit the liability for remaining coverage
(LRC) to be measured using discounted cash flows, unless the group of contracts is onerous.
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Reinsurance contracts held
Reinsurance assets for a group of reinsurance contracts held are measured on the same basis as insurance contracts
issued. However, they are adapted to reflect the features of reinsurance contracts held that differ from insurance contracts
issued, for example the generation of expenses or reduction in expenses rather than income.
A loss is recognised on initial recognition of an onerous group of underlying insurance contracts or when further onerous
underlying insurance contracts are added to a group. Furthermore, a loss-recovery component of the asset for remaining
coverage is established for a group of reinsurance contracts held depicting the recovery of losses.
The loss-recovery component is calculated by multiplying the loss recognised on the underlying insurance contracts and
the percentage of claims on the underlying insurance contracts, the consolidated insurance companies expect to recover
from the group of reinsurance contracts held. Where only some contracts in the onerous underlying group are covered by
the group of reinsurance contracts held, a systematic and rational method is used to determine the portion of losses
recognised on the underlying group of insurance contracts to insurance contracts covered by the group of reinsurance
contracts held. The loss-recovery component adjusts the carrying amount of the asset for remaining coverage.
Where the group enters reinsurance contracts held which provide coverage relating to events that occurred before the
purchase of the reinsurance, such cost of reinsurance is recognised in profit or loss on initial recognition.
SUBSEQUENT MEASUREMENT
According to IAS 34, the general frequency of reporting must not affect the annual results. IFRS 17 requires changes in
estimates that relate to changes in future services in the contractual service margin to be immediately recognised in the
income statement. To avoid affecting the annual result, measurements during the year must be based on a cumulative basis
from the beginning of the financial year to the reporting date (year-to-date accounting). Under year-to-date accounting,
changes in estimates recorded in periods during the year are not taken into account, while they are included in the
calculation with date-to-date accounting. VIG Insurance Group decided to make use of the year-to-date accounting option
according to IFRS 17.B137.
Insurance contracts not measured under PAA
The CSM at the end of the reporting period represents the profit in the group of insurance contracts that has not yet been
recognised in profit and loss, because it relates to future services to be provided.
For a group of insurance contracts, the carrying amount of the CSM of the group at the end of the reporting period equals
the carrying amount at the beginning of the reporting period adjusted by:
• the effect of any new contracts added to the group,
• interest accreted on the book value of the CSM during the reporting period, measured at the discount rates at initial
recognition,
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• the changes in fulfilment cash flows relating to future service, except to the extent that:
– such increases in the fulfilment cash flows exceed the carrying amount of the CSM, giving rise to a loss; or
– such decreases in the fulfilment cash flows are allocated to the loss component of the liability for remaining coverage
(see chapter Loss component starting on page 161),
• the effect of any currency exchange differences on the CSM, and
• the amount recognised as insurance service revenue because of the transfer of insurance contract services in the
period, determined by the allocation of the CSM remaining at the end of the reporting period (before any allocation) over
the current and remaining coverage period (see chapter Insurance service revenue starting on page 160).
The subsequent measurement assumes for the CSM calculation using the VFA the following modifications compared to
GMM:
• Changes to financial assumptions resulting from the underlying reference values would lead to an adjustment of the
CSM instead of the income statement (or optionally the statement of comprehensive income). This includes:
– Changes in fair value of the underlying assets;
– Changes in estimates of the present value of future cash flows and changes to financial risks of insurance contracts
with direct participation features, as these are associated with future services;
• There is no explicit CSM increase in interest.
The changes in fulfilment cash flows relating to future service that adjust the CSM comprise:
• experience adjustments that arise from the difference between the premium receipts (and any related cash flows such
as insurance acquisition costs and insurance premium taxes) and the estimate, at the beginning of the period, of the
amounts expected. Differences related to premiums received (or due) related to current or past services are recognised
immediately in profit or loss while differences related to premiums received (or due) for future services are adjusted
against the CSM;
• changes in estimates of the present value of future cash flows in the liability for remaining coverage, except those
relating to the time value of money and changes in financial risk (recognised in the statement of profit or loss and other
comprehensive income rather than adjusting the CSM);
• differences between any investment component expected to become payable in the period and the actual investment
component that becomes payable in the period. These differences are determined by comparing the actual investment
component that becomes payable in the period with the payment in the period that was expected at the start of the
period plus any insurance finance income or expenses related to that expected payment before it becomes payable.
The same applies to a policyholder loan that becomes repayable, and
• changes in the risk adjustment for non-financial risk that relate to future services.
Except for changes in the risk adjustment, adjustments to the CSM noted above are measured at discount rates that reflect
the characteristics of the cash flows of the group of insurance contracts at initial recognition (see Note 24.1. (Re-) insurance
contracts subchapter Discount rates starting on page 142).
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Where, during the coverage period, a group of insurance contracts becomes onerous, a loss is recognised in profit and
loss for the net outflow, resulting in the book value of the liability for the group being equal to the fulfilment cash flows. A
loss component is established for the liability for remaining coverage for such onerous group depicting the losses recognised.
For additional disclosures on the loss component, please refer to page 161.
The carrying amount of a group of insurance contracts is measured at the end of each reporting period as the sum of:
• the liability for remaining coverage comprising fulfilment cash flows related to future service allocated to the group at
that date and the CSM of the group at that date; and
• the liability for incurred claims comprising the fulfilment cash flows related to past service allocated to the group at that date.
Insurance contracts measured under PAA
At the end of each reporting period, the carrying amount of the liability for remaining coverage is the carrying amount at the
beginning of the period:
• plus premiums received in the period,
• minus insurance acquisition costs (see chapter Insurance acquisition costs starting on page 159),
• plus any amounts relating to the amortisation of the insurance acquisition cash flows recognised as an expense in the
reporting period for the group,
• plus any adjustment to the financing component, where applicable,
• minus the amount recognised as insurance service revenue for the services provided in the period, and
• minus any investment component paid or transferred to the liability for incurred claims.
The liability for incurred claims is estimated as the fulfilment cash flows related to incurred claims. The fulfilment cash flows
incorporate, in an unbiased way, all reasonable and supportable information available without undue cost or effort about
the amount, timing and uncertainty of future cash flows, it reflects current estimates, and include an explicit adjustment for
non-financial risk (the risk adjustment). VIG always discounts the LIC even when the cash flows are expected to be paid or
received in one year or less from the date the claims are incurred.
Where, during the coverage period, facts and circumstances indicate that a group of insurance contracts is onerous, a loss
in profit and loss is recognised for the net outflow, resulting in the book value of the liability for the group being equal to the
fulfilment cash flows. A loss component is established for the liability for remaining coverage for such onerous group
depicting the losses recognised. For additional disclosures on the loss component, please refer to page 152 and page 161.
For additional information on acquisition costs, please refer to chapter Insurance acquisition costs starting on page 159.
Reinsurance contracts held
The subsequent measurement of reinsurance contracts held follows the same principles as those for insurance contracts
issued and has been adapted to reflect the specific features of reinsurance contracts held.
Where a loss-recovery component has been established, the consolidated insurance companies subsequently reduce the
loss-recovery component to zero in line with reductions in the onerous group of underlying insurance contracts in order to
reflect that the loss-recovery component shall not exceed the portion of the book value of the loss component of the onerous
group of underlying insurance contracts that the entity expects to recover from the group of reinsurance contracts held.
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MODIFICATION AND DERECOGNITION
Insurance contracts are derecognised when the rights and obligations relating to the contract are extinguished (i.e., dis-
charged, cancelled or expired) or the contract is modified such that the modification results in a change in the measurement
model, or the applicable standard for measuring a component of the contract. In such cases, the initial contract is derecog-
nised and the modified contract is recognised as a new contract.
INSURANCE ACQUISITION COSTS
Insurance acquisition costs arise from the costs of selling, underwriting and starting a group of insurance contracts (issued or
expected to be issued) that are directly attributable to the portfolio of insurance contracts to which the group belongs.
Where insurance acquisition costs have been paid or incurred before the related group of insurance contracts is recognised in
the consolidated balance sheet, a separate asset for insurance acquisition costs is recognised for each related group.
The asset for insurance acquisition costs is derecognised from the consolidated balance sheet when the insurance
acquisition costs are included in the initial measurement of the CSM of the related group of insurance contracts.
It is required to apply a systematic and rational method to allocate:
• Insurance acquisition costs that are directly attributable to a group of insurance contracts:
– to that group; and
– to groups that include insurance contracts that are expected to arise from the renewals of the insurance contracts in
that group.
• Insurance acquisition costs that are not directly attributable to a group of contracts but directly attributable to a portfolio
of insurance contracts to groups in the portfolio.
The time bands when VIG expects to derecognise the asset for acquisition costs are disclosed in Note 1. Insurance
contracts starting on page 60.
At the end of each reporting period, the amounts of insurance acquisition costs allocated to groups of insurance contracts
not yet recognised are revised, to reflect changes in assumptions related to the method of allocation used.
After any re-allocation, the recoverability of the asset for insurance acquisition costs is assessed, if facts and circumstances
indicate the asset may be impaired. When assessing the recoverability, it is required to apply the following:
• an impairment test at the level of an existing or future group of insurance contracts; and
• an additional impairment test specifically covering the insurance acquisition costs allocated to expected future contract
renewals.
If an impairment loss is recognised, the book value of the asset is adjusted and an impairment is recognised in profit and
loss in the item insurance service expenses – issued.
A full or partly reversal of previously recognized impairments are recognised in profit or loss and increase the carrying
amount of the asset, to the extent that the impairment conditions no longer exist or have improved.
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Presentation
Under IFRS 17 the consolidated insurance companies separately present in the consolidated balance sheet the carrying
amount of portfolios of insurance contracts issued that are assets, portfolios of insurance contracts issued that are liabilities,
portfolios of reinsurance contracts held that are assets and portfolios of reinsurance contracts held that are liabilities.
Assets due to insurance acquisition costs recognised before the commencement of the corresponding insurance contracts
are included in the carrying amount of the related portfolios of insurance contracts issued.
The amounts recognised in the income statement and in the other comprehensive income (OCI) are disaggregated into the
insurance service result, comprising insurance service revenue and insurance service expenses, and insurance finance
result.
The change in risk adjustment for non-financial risks is disaggregated between the insurance service result and insurance
finance result.
The revenue or expenses from reinsurance contracts held are presented in the income statement in position insurance
service result – reinsurance held. Therefore, the reinsurance service result is separately presented from the expenses or
income from insurance contracts issued.
INSURANCE SERVICE REVENUE
The insurance service revenue depicts the provision of services arising from a group of insurance contracts at an amount
that reflects the consideration to which it is expected to be entitled in exchange for those services.
For contracts not measured under PAA, insurance service revenue from a group of insurance contracts is therefore the
relevant portion for the period of the total consideration for the contracts. Which means, the amount of premiums paid to
the consolidated insurance companies adjusted for financing effect (the time value of money) and excluding any investment
components. The total consideration for a group of contracts covers amounts related to the provision of services and is
comprised of:
• insurance service expenses, excluding any amounts relating to the risk adjustment for non-financial risks and any
amounts allocated to the loss component of the liability for remaining coverage;
• other amounts like income tax that are specifically chargeable to the policyholder;
• the risk adjustment for non-financial risks, excluding any amounts allocated to the loss component of the liability for
remaining coverage;
• the CSM release and
• amounts related to insurance acquisition costs.
For significant discretionary management judgements applied to the amortisation of CSM, please refer to chapter
“Amortisation of the Contractual Service Margin” starting on page 143.
Under PAA, the insurance service revenue for the period is the amount of expected premium receipts excluding any
investment component which is allocated to the period. The expected premium receipts are allocated to each period of
insurance contract services mainly on a basis of a linear release pattern on local entity level. But, if the expected pattern of
release of risk during the coverage period differs significantly from the passage of time, then the allocation is made on the
basis of the expected timing of incurred insurance service expenses.
If facts and circumstances change, the two methods mentioned above will be alternated.
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LOSS COMPONENT
Contracts that are onerous at initial recognition are grouped separately from contracts in the same portfolio that are not
onerous at initial recognition. Groups that were not onerous at initial recognition may subsequently become onerous if
assumptions change and experience adjustments are performed. For any onerous group a loss component of the liability
for remaining coverage is established depicting the future losses recognised.
A loss component represents a notional record of the losses attributable to each group of onerous insurance contracts or
contracts profitable at inception that have become onerous. The loss component is released based on a systematic
allocation of the subsequent changes relating to future service in the fulfilment cash flows to the loss component and the
liability for remaining coverage excluding the loss component. The loss component is also updated for subsequent changes
relating to future service in estimates of the fulfilment cash flows and the risk adjustment for non-financial risks. The
systematic allocation of subsequent changes to the loss component results in the total amounts allocated to the loss
component being equal to zero by the end of the coverage period of a group of contracts since the loss component will
have been realised in the form of incurred claims.
For groups of contracts measured under the PAA, no contracts are assumed to be onerous at initial recognition unless
facts and circumstances indicate otherwise. Where this is not the case, and if at any time during the coverage period the
facts and circumstances mentioned in Note 25.3. indicate that a group of insurance contracts is onerous, a loss component
has to be established as the excess of the fulfilment cash flows that relate to the remaining coverage of the group over the
book value of the liability for remaining coverage of the group as determined in chapter Initial measurement starting on
page 154. Accordingly, by the end of the coverage period of the group of contracts the loss component will be zero.
LOSS-RECOVERY COMPONENTS
As described in chapters “Initial measurement-Reinsurance contracts held” starting on page 156 and “Subsequent
measurement-Reinsurance contracts held” starting on page 158, when a loss on initial recognition of an onerous group of
underlying insurance contracts is recognised or when further onerous underlying insurance contracts are added to a group,
a loss-recovery component (LoReCo) of the asset for remaining coverage is established for a group of reinsurance contracts
held depicting the recovery of losses.
Where a loss component has been set up subsequent to initial recognition of a group of underlying insurance contracts,
the portion of income that has been recognised from related reinsurance contracts held is disclosed as a loss-recovery
component.
Where a loss-recovery component has been set up at initial recognition or subsequently, the loss-recovery component is
adjusted to reflect changes in the loss component of an onerous group of underlying insurance contracts.
The book value of the loss-recovery component must not exceed the portion of the book value of the loss component of
the onerous group of underlying insurance contracts that the consolidated insurance companies expect to recover from
the group of reinsurance contracts held. On this basis, the loss-recovery component recognised at initial recognition is
reduced to zero in line with reductions in the onerous group of underlying insurance contracts and is nil when loss
component of the onerous group of underlying insurance contracts is nil.
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INSURANCE FINANCE RESULT
The insurance finance result comprises the change in the carrying amount of the group of insurance contracts arising from:
• the effect of the time value of money and changes in the time value of money and
• the effect of financial risk and changes in financial risk, but
• excluding any such changes for groups of insurance contracts with direct participation features that would adjust the
CSM but do not do so because the groups of contracts are onerous. These are included in insurance service
expenses.
VIG applies the option to disaggregate the insurance finance result on insurance contracts issued for its life business and
its health similar-to-life business between profit and loss and OCI. The OCI option allows inconsistent measurements
(accounting mismatch) of assets and liabilities to be offset through equity, rather than through profit or loss. Such differences
can, for example, occur for life insurance policies eligible for profit-participation. If the business model requires such
measurement, the OCI option is used to minimise the accounting mismatch. For participations that are being held for
strategic purposes, the OCI option is predominantly used in order to minimise the accounting mismatches mentioned above.
VIG’s financial assets backing the insurance issued portfolios are predominantly measured at amortised cost or FVtOCI.
The total insurance finance revenues or expenses are systematically allocated to profit and loss over the duration of the
group of contracts by using discount rates determined on group of insurance level.
NET REVENUES OR EXPENSES FROM REINSURANCE CONTRACTS HELD
IFRS 17 requires a reinsurance contract held to be accounted for separately from the underlying insurance contracts to
which it relates. Additionally, amounts arising from transactions with reinsurers shall be reported according to whether they
relate to:
• the amounts recovered from the reinsurer or
• amounts allocated to premiums paid.
Separate presentation is required for:
• reinsurance cash flows that are contingent on claims on the underlying contracts, which are treated as part of the
claims that are expected to be reimbursed under the reinsurance contract held;
• reinsurance cash flows that are not contingent on claims of the underlying contracts (e.g. some types of ceding
commissions) are treated as a reduction in the premiums to be paid to the reinsurer.
Amounts relating to the recovery of losses relating to reinsurance of onerous direct contracts are included as amounts
recoverable from the reinsurer.
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25.4. Financial instruments
Financial assets
INITIAL RECOGNITION
At initial recognition, the classification of financial instruments depends on the contractual cash flows (solely based
payments of principal and interest criterion (SPPI-criterion)) as well as the business model.
Financial instruments are initially recognised on the processing day at fair value (as defined in Note 25.9. Calculation of fair
value starting on page 173), and the fair value should not deviate from the transaction price. At initial recognition, for financial
assets measured at AC or FVtOCI, directly attributable transaction costs shall be included in the amortised costs. Internal
(overhead) costs shall not be attributed to the amortised cost as these are not directly attributable to the single transactions.
Measurement categories
Financial assets are classified based on the contractual cash flows characteristics test and the business model for managing
the assets. Based on these criteria, financial assets can be classified into the following measurement categories:
• Debt instruments measured at amortised cost;
• Debt instruments measured at FVtOCI, where the cumulative gains and losses will be reclassified to the income
statement upon derecognition;
• Equity instruments designated as at FVtOCI, where they may not be recognised in the income statement;
• Financial assets (debt instruments, derivative financial instruments and equity instruments) measured at FVtPL.
Debt instruments measured at amortised cost
Debt instruments are held at AC if both of the following conditions are met:
• The instruments are held within a business model with the objective of holding the instrument to collect the contractual
cash flows.
• The contractual terms of the debt instrument give rise on specified dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount outstanding.
Debt instruments measured at FVtOCI
The new category acc. to IFRS 9 for debt instruments measured at FVtOCI is applied when both of the following conditions
are met:
• The instrument is held within a business model, the objective of which is both collecting contractual cash flows and
selling financial assets, and
• the contractual terms of the financial asset meet the SPPI test.
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Debt instruments in this category are those that are intended to be held to collect contractual cash flows and which may
be sold in response to needs for liquidity or changes in market conditions.
Equity instruments designated measured at FVtOCI
Equity instruments that are not held for trading and classified as designated measured at FVtOCI (in accordance with IAS 32)
will be irrevocably measured at FVtOCI. The classification of equity instruments can be done on an instrument-by-instrument
basis.
Gains and losses of these equity instruments are not recycled to the income statement at any time.
Dividends are recognised as other operating income in the income statement when the right of the payment has been
established. Except when such proceeds are beneficial as a recovery of part of the cost of the instrument, these gains are
recorded in OCI. Equity instruments designated measured at FVtOCI are not subject to any impairment test .
Financial assets measured at FVtPL
Financial assets in this category are managed in a fair value business model, have been designated by management upon
initial recognition or are mandatorily required to be measured at fair value acc. to IFRS 9. This category includes debt
instruments,
• whose cash flow characteristics fail the SPPI criterion or
• which are not managed within a business model in order to collect contractual cash flows or also not in order to collect
contractual cash flows as well as sell the instruments or
• which are classified to the category of designated measured at FVtPL for the purpose of reducing an accounting
mismatch.
SPPI test and assessment of the business model
VIG allocates its financial assets based on the SPPI-criterion measurement models.
If the SPPI test is passed, the classification and subsequent measurement of financial instruments according to IFRS 9 is
the business model chosen for managing the asset. The business model refers to how the company manages its financial
assets in order to generate cash flows. In the Group, this is established at local level so as to manage financial instruments
when planning the investment strategy in order to achieve local business objectives.
The business model is not assessed on an instrument-by-instrument basis, but at a higher level of aggregated portfolios
that is based on observable factors. Moreover, this is based on reasonably expected scenarios without taking “worst case”
or “stress case” scenarios into account. If cash flows after initial recognition are realised in a way that is different from the
original expectations, the classification of the remaining financial assets held in that business model does not change.
However, such information when assessing newly originated or newly purchased financial assets is taken into consideration.
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The business model is applied to groups of assets which are managed homogeneously. The derivation takes into
consideration asset class, liquidity, type of administration (asset manager, externally managed portfolios or special funds)
as well as the investment strategy.
When determining the investment strategy (and in consequence the business model), the type of liabilities that are covered
and their measurement model under IFRS 17 should be taken into consideration. Cash and cash equivalents as well as
term deposits are always to be valued at AC.
SUBSEQUENT MEASUREMENT
Debt instruments measured at AC
After initial measurement, debt instruments are measured at amortised cost, using the effective interest rate (EIR) method,
less allowance for impairment. Amortised cost is calculated by taking into account any discount or premium on acquisition
and fee or costs that are an integral part of the EIR. An allowance is recognised for ECLs (
expected credit losses
) in the
income statement.
Debt instruments measured at FVtOCI
Debt instruments are subsequently measured at fair value in accordance with FVtOCI with unrealised gains and losses
arising due to changes in fair value recognised in OCI. Interest income and foreign exchange effects are recognised in
profit or loss in the same manner as for financial assets measured at amortised cost. For further information on the
calculation of expected credit loss for debt instruments measured at FVtOCI, please refer to chapter The calculation of
ECLs starting on page 168. On derecognition, cumulative gains or losses previously recognised in OCI are reclassified to
profit and loss.
Equity instruments designated measured at FVtOCI
The irrevocable classification of equity instruments as measured at FVtOCI is applied for strategically held financial
instruments which are not held for trading or are not shares in affiliated fully consolidated companies and are not shares in
associates and joint ventures. The classification of equity instruments can be done on an instrument-by-instrument basis
(e.g. emerging markets stocks at FVtPL, auxiliary undertakings at FVtOCI) and is decided solely by the the local group
company in accordance with the portfolio. For equity instruments that are designated measured at FVtOCI, transaction
costs are recognised in OCI as part of the change in fair value at the next re-measurement and they are never reclassified
into profit and loss. In case of a derecognition event, the correlating reserves are directly posted to “retained earnings”. In
contrast to the equity instruments measured at FVtPL, only dividends are booked in the income statement.
Financial assets measured at FVtPL
Financial assets measured at FVtPL are recorded in the balance sheet at fair value. Changes in fair value are realised in
profit and loss. Transaction costs relating to the acquisition or issue of financial instruments measured at FVtPL are
recognised in profit and loss as they are incurred. Interest earned on assets mandatorily required to be measured at FVtPL
is accounted for using the contractual interest rate.
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RECLASSIFICATION
To remain in compliance with the classification “Held to collect contractual cash flows”, the share of not sold financial assets
may not fall below an annual average of 90% of the portfolio volume.
The Group assumes that financial assets subsequent to their initial recognition are not reclassified, provided that no
exceptional, such as a business line is acquired, disposed of or terminated.
In general, reclassifications of financial assets are only permitted, or required, in rare circumstances, which does not include
a simple change in business model (e.g. change in intention related to particular financial assets – temporary disappearance
of a particular market for financial assets – and transfer of financial assets between company areas with different business
models). In such rare occasions, non-derivative debt instruments are required to be reclassified between the “measured at
AC”, “measured at FVtOCI” and “measured at FVtPL” categories. More specifically, when (and only when) an entity changes
its business model for managing financial assets, it should reclassify all affected financial assets. The reclassification should
be applied prospectively from the “reclassification date”, in accordance with IFRS 9.5.6.1.
DERECOGNITION/WRITE-OFF
Derecognition apart from a significant modification
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised
when:
• The right to receive cash flows from the asset has expired or
• The right to receive cash flows from the asset has been transferred or an obligation has been assumed to pay the
received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either
substantially all the risks and rewards of the asset have been transferred or substantially all the risks and rewards of the
asset have been neither transferred nor retained, but control of the asset has been transferred.
Control is considered to be transferred if and only if, the transferee has the practical ability to sell the asset in its entirety to
an unrelated third party and is able to exercise that ability unilaterally and without imposing additional restrictions on the
transfer.
When all risks and rewards have neither transferred nor substantially been retained and control of the asset has been
maintained, the asset continues to be recognised only to the extent of continuing involvement, in which case, an associated
liability has also been recognised. The transferred asset and the associated liability are measured on a basis that reflects
the rights and obligations.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original
carrying amount of the asset and the maximum amount of consideration that could be required to pay.
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Derecognition due to significant contract modification
A financial asset is derecognised when the terms and conditions have been renegotiated to the extent that, substantially, it
becomes a new instrument, with the difference recognised as a derecognition gain or loss. In case of modification the gross
carrying amount is recalculated as the present value of the renegotiated or modified contractual cash flows, discounted at
the financial asset’s original EIR (or credit adjusted EIR for POCI assets) or, when applicable, the revised EIR calculated in
acc. with IFRS 9. 6.5.10.
When assessing whether or not to derecognise an instrument, VIG considers the following modification criteria:
• Quantitative criteria:
– Modified debt instruments are considered to be “substantially different” if the net present value of the cash flows under
the new terms discounted at the original EIR (of the original contract) is at least 10% different from the original debt
instrument.
• Qualitative criteria:
– Change in the SPPI assessment, e.g. introduction of an equity-linked feature
– Change in the currency of the asset could significantly alter the future economic risk exposure of the instrument and is
considered to be substantial. Non-contractual changes in the currency are not relevant (e.g. in the course of a currency
reform or accession to the Eurozone).
– Change in the maturity of the instrument. Modifications of the maturity of a financial instrument are not considered to
be ‘substantially different’, if the possibility has been negotiated already in the original lending contract. Moreover, the
change is not considered to be substantial, if the total contractual lifetime is
– extended by less than 50%,
– shortened by less than 30% or
– changed by less than 2 years of the original lifetime.
If the modification does not result in cash flows that are substantially different, the modification does not result in
derecognition. Based on the change in cash flows discounted at the original EIR, a modification gain or loss is recorded.
IMPAIRMENT OF FINANCIAL ASSETS
Further disclosures relating to impairment of financial assets are also provided in the following notes:
• Increases and decreases in the provisions for expected credit loss for financial instruments Note 2.4. Expected credit
loss starting on page 90
• Disclosures for significant judgements and estimates Note 24.2. Impairment losses on financial assets starting on page 145.
VIG recognises an allowance for ECLs for all debt instruments measured at AC or FVtOCI, loan commitments and
guarantees as well as IFRS 9 measured receivables.
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ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash
flows that are expected to be received, discounted at the effective interest rate.
The amount of the ECLs recognised depends on the different impairment model stages to which the financial instruments
were assigned. For financial instruments for which there has not been a significant increase in credit risk since initial
recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12 months
(12-month ECL/Stage 1). For those credit exposures for which there has been a significant increase in credit risk since initial
recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure (lifetime ECL).
VIG considers a financial asset to be in default (credit impaired) when contractual payments are 90 days past due or/and if
its rating is stated as C or D, unless VIG has reasonable and supportable information to demonstrate that a more lagging
default criterion is more appropriate.
The calculation of ECLs
ECLs are calculated based on scenarios to measure the expected cash shortfalls, discounted at an appropriate EIR. A cash
shortfall is the difference between the cash flows that are in accordance with the contract and the cash flows that the entity
expects to receive. The mechanics of the ECL calculations are outlined below and the key elements are, as follows:
•
Probability of Default (PD):
The
PD
is an estimate of the likelihood of default over a given time horizon. It is estimated
with consideration of economic scenarios and forward-looking information.
VIG uses the following segments for its portfolio:
– Corporates
– Sovereigns
– The segment Sovereigns consists of all bonds issued by public authorities, whether by central governments, supra-
national government institutions, regional governments or local authorities and bonds that are fully, unconditionally and
irrevocably guaranteed by these institutions. All other exposures are treated within the corporates segment.
•
Exposure at Default (EAD):
The
EAD
is an estimate of the exposure at a future default date, taking into account
expected changes in the exposure after the reporting date, including repayments of principal and interest, whether
scheduled by contract or otherwise, and accrued interest from missed payments.
•
Loss Given Default (LGD)
: The
LGD
is an estimate of the loss arising in the case where a default occurs at a given time.
It is based on the difference between the contractual cash flows due and those that are expected to be received. It is
usually expressed as a percentage of the EAD.
Concerning the segmentation of LGDs, the following segments will be used:
– Subordinated debt
– Senior unsecured debt
– Sovereigns
– Secured debt: The Secured segment at VIG covers all positions secured by mortgage as well as covered bonds.
– For unsecured assets, VIG will apply predefined LGDs, which are not time-dependent (flat LGD curves).
Assets subject to ECL calculations are allocated into one of the following categories:
•
12 months ECL
(Stage 1): Stage 1 allows a low credit risk or no significant increase in credit risk. It is calculated as the
portion of the lifetime ECL, that represent the ECLs that result from default events on a financial instrument that are
possible within 12 months after the reporting date. Stage 1 allowance is calculated based on the expectation of a
default occurring in the 12 months following the reporting date.
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•
Stage 2
: Assets classified under Stage 2 show a significant increase in credit risk (and not low credit risk), therefore the
lifetime ECL must be calculated.
•
Stage 3
: Within this stage credit losses have already been incurred or assets have actually been credit impaired. Due to
that fact, the difference between the asset’s gross carrying amount and the present value of estimated future cash flows
discounted at the financial asset’s original effective interest rate should be considered.
In accordance with IFRS, debt instruments measured at AC or measured at FVtOCI must follow the staged approach. The
VIG approach is set as follows:
• Stage 1 – 12-months ECL
– non-POCI assets at initial recognition,
– assets that fall within the scope of the low credit risk exemption, as well as
– assets that are not defaulted, not eligible for Stage 2 triggers and show no significant change in ratings
• Stage 2 – Lifetime ECLs (effective interest rate on gross carrying amount)
– are past due for at least 30 days or
– respond to one of the predefined forward-looking indicators
• Stage 3 – Lifetime ECLs (effective interest rate on amortised costs)
– assets fulfilling the default definition of VIG
• Stage 0 – POCI
Debt instruments measured at FVtOCI
As the carrying amount of the debt instruments measured at FVtOCI corresponds to the fair value, the risk provision to be
recognised does not lead to a reduction on the asset side of the balance sheet. Instead, an amount equal to the allowance
that would arise if the assets were measured at amortised cost is recognised in OCI with a corresponding charge to profit
or loss. The accumulated gain recognised in OCI is recycled to the profit or loss upon derecognition of the assets.
Forward looking information
In the Group-wide ECL models, it can be relied on a broad range of forward-looking information, such as external and
internal ratings, forecasts of macroeconomic variables or qualitative credit risk.
COLLATERAL VALUATION AND REPOSSESSED
To mitigate its credit risks on financial assets, collateral is sought to be used, where possible. The collateral comes in various
forms, such as mortgages, securities or other types of collateral. Collateral, unless repossessed, is not recorded on the
VIG’s statement of financial position. Cash flows expected from credit enhancements which are not required to be
recognised separately by IFRS standards and which are considered integral to the contractual terms of a debt instrument
which is subject to ECL, are included in the measurement of those ECL. On this basis, the fair value of collateral affects the
calculation of ECL.
To the extent possible, data from an active market is used for valuing financial assets held as collateral. Other financial
assets that do not have readily available market data are valued using models. Non-financial collateral, such as real estate,
is valued either internally or based on third parties’ appraisals.
The ECL measurement also includes irrevocable and unconditional guarantees.
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WRITE-OFFS
Financial assets are written off either in part or in full only when there is no reasonable expectation of recovery. If the amount
to be written off is greater than the accumulated loss allowance, the difference is first treated as an addition to the allowance
that is then applied against the gross carrying amount. Any subsequent recoveries are credited to gains within the income
statement.
Financial liabilities
MEASUREMENT CATEGORIES OF FINANCIAL LIABILITIES
Financial liabilities, other than loan commitments and financial guarantees, are measured at AC or at FVtPL if they are held
for trading or are derivative instruments or if they are derivative financial instruments. VIG has no material portfolio of financial
liabilities designated measured at FVtPL. All derivatives with a negative fair value (according to IFRS 13; determined on the
basis of the so-called “dirty fair value”, i.e., including interest accruals) are presented as a liability measured at FVtPL.
Analogous to the financial assets, subordinated liabilities are recognised at their “dirty value” starting with the initial
application of IFRS 9.
DERECOGNITION AND SIGNIFICANT MODIFICATION OF FINANCIAL LIABILITIES
A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires. Where an
existing financial liability is replaced by another from the same lender on substantially different terms or the terms of an
existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original
liability and the recognition of a new liability. The difference between the carrying value of the original financial liability and
the consideration paid is recognised in profit or loss.
Recognition of interest income
According to IFRS 9, interest income for all financial assets under IFRS 9 measured at AC or measured at FVtOCI is
recorded using the effective interest method. The EIR is the rate that exactly discounts estimated future cash receipts
through the expected life of the financial asset or, when appropriate, a shorter period, to the gross book value of the financial
asset.
The EIR and therefore, the amortised cost of the financial asset, is calculated by taking into account transaction costs and
any discount or premium on acquisition of the financial asset as well as fees and costs that are an integral part of the EIR.
Interest income is recognised using a rate of return that represents the best estimate of a constant rate of return over the
expected life of the debt instrument.
For floating-rate financial instruments, the periodic re-fixing of coupon rates reflecting the movements in interest rates alters
the effective interest rate.
The item interest revenues using the effective interest rate method only includes interest on financial instruments measured
at AC or measured at FVtOCI.
The item interest revenue other includes interest from financial assets measured at FVtPL, which is also measured based
on the derivation of the effective interest rate.
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Repurchase and reverse repurchase agreements
Securities sold under agreements to repurchase are not derecognised from the balance sheet as substantially all of the
risks and rewards of ownership are retained. The corresponding cash received is recognised in the consolidated balance
sheet as an asset with a corresponding obligation to return it, including accrued interest as a liability within cash collateral
on securities lent and repurchase agreements. This reflects the transaction’s economic substance as a loan to VIG. The
difference between the sale and repurchase price is treated as interest expense and is deferred over the life of agreement.
By contrast, securities purchased under reverse repurchase agreements are not recognised in the balance sheet. The
amount paid, including deferred interest, is recorded in the balance sheet within loans measured at AC. The difference
between the purchase and resale price is shown in the corresponding current income position using the EIR.
25.5. Goodwill
Goodwill is recorded in the functional currency of the respective unit. It is measured at AC minus accumulated impairment losses.
In the case of shares in at equity consolidated companies, goodwill is included in the amortised book value of the investment.
Impairments
For the purpose of testing goodwill, the subsidiaries are combined to form cash-generating units (CGUs) at the level of
geographical countries. These CGUs, on the basis of which the impairment test is conducted, correspond to the operating
segments. The recoverability of trademark rights is additionally tested individually by application of the relief-from-royalty method.
In the case of intangible assets with indefinite useful lives (goodwill and capitalised trademark rights), such an impairment test is
also conducted during the year in response to a triggering event, but at least at the end of every finanacial year.
As a general rule, the value in use determined by application of the income-based discounted cash flow method is applied
as the recoverable amount of the CGU. In those cases in which the value in use is less than the carrying amount, the book
value less costs to sell is determined additionally. Trailing stock exchange multiples are applied to determine the fair value
less costs to sell.
For determining the value in use, the available cash flows over five plan years and after that the perpetual annuity are
discounted to present value. Due to the conversion to IFRS 17 as of 1 January 2023, the budget forecasts were also
adapted to the IFRS 17 structure. All subsidiaries prepare detailed budget forecasts for three years in the respective local
currency, they are discussed in meetings of the Supervisory Board and subjected to a plausibility check as part of the
planning and control process. The budget forecast for the next two years and the perpetual annuity are prepared by
forecasting key parameters (combined ratios, premium development, financial income) on the basis of their historical
development and expectations for the future development of markets. Therefore, the forecast cash flows from the perpetual
annuity are deemed to be sustainable. The closing exchange rate on 31 December of the finanacial year is applied for
converting the amounts into euros.
Climate risks are taken into consideration in the best estimate of underwriting provisions and therefore in the expected cash
flows applied for the purpose of impairment testing. VIG offers insurance against major weather events, subject to strict
reinsurance guidelines.
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All insurance service assets are attributed to the CGUs. These assets include all capitalised insurance portfolios and
customer bases, capital investments, receivables and other assets, in addition to goodwill and trademark rights.
Underwriting provisions and current liabilities are deducted from the book values. Assets recognised by VIG Holding, but
used by the operating companies are attributed to the CGUs in the form of corporate assets. Thus, the cash flows of the
CGUs are adjusted for the depreciation and amortisation of the attributed corporate assets.
A capital cost rate (before taxes) determined on the basis of the Capital Asset Pricing Model (CAPM) is applied to calculate
the discount rates. For that purpose, country-specific inflation differences and risk premiums, as well as the sector-specific
market risk, are added to the risk-free interest rate (equal to the return on German government bonds at the reporting date
according to the Svensson method). The beta factor applied at the reporting date was determined on the basis of a defined
peer group.
The long-term growth rates were calculated in the reporting period on the basis of the Compound Annual Growth Rate
(CAGR) under the assumption that the insurance penetration of the respective countries will begin to converge with the
current German penetration rate in 50 to 70 years from the year 2013. An inflation premium equal to half the inflation
included in the capital costs is added to the CAGR.
25.6. Intangible assets
Other intangible assets
Purchased intangible assets are recognised in the balance sheet at acquisition cost less accumulated amortisation and
impairment losses. The companies included in the scope of consolidation did not have any material internally generated
intangible assets. All intangible assets with the exception of trademark rights have definite useful lives. Therefore, intangible
assets are amortised over the period of their use.
Average useful life in years from
to
Software 2
13
Software is amortised according to the straight-line method. Furthermore, it is checked on an ad-hoc basis whether the
respective software components can still be used. If it is expected with a high degree of probability that certain IT systems
or program components can no longer be used or not to the full extent, an impairment is recognised. If a change in the
useful life of full use is found, the amortisation period is changed to match the new useful life.
In the course of the purchase price allocations conducted with respect to the acquisitions of the companies Asirom, BTA
Baltic and Seesam, trademark rights with indefinite useful lives were identified in previous years. The indefinite useful life
results from the fact that no foreseeable end of the economic useful life can be identified. The fair values of the trademark
rights were determined by application of the relief-from-royalty method upon initial consolidation. A tax amortisation benefit
was included in the relief-from-royalty method.
Regarding impairments of trademark rights with unlimited useful life, please refer to the statements in Note 25.5. Goodwill
starting on page 171.
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25.7. Investment property
Property that is both owner-occupied and investment property is divided. If the 20% limit is not exceeded, the property is
recognised in the larger category (80:20 rule).
Property is measured at acquisition or construction costs minus accumulated scheduled depreciation and impairment
losses. Cost comprises all costs incurred in putting the asset into its present location in its present condition. Costs incurred
in later periods are only capitalised if they lead to a significant increase in future opportunities for use of the building (e.g.
through respective building expansions or new fittings). Tangible assets are depreciated using the straight-line method over
the expected economic useful life.
Average useful life in years from
to
Buildings categorised as investment property 28
51
Measurement process
The measurement process for deriving the fair value of real estate that is held as investment property and owner-occupied
property is discussed in more detail in Note 25.9. Calculation of fair value starting on page 173.
25.8. Owner-occupied property and equipment
Owner-occupied property
For the applied accounting policies, refer to the statements presented under 25.7. Investment property starting on page 173.
Tangible assets
Tangible assets are primarily technical equipment and machinery, other equipment, vehicle fleet, IT hardware/tele-
communication, office equipment as well as the advance payments for these.
The measurement is at AC minus accumulated depreciation and impairment losses. Cost comprises all costs incurred in
putting the asset into its present location in its present condition. Tangible assets are depreciated using the straight-line
method over their expected economic useful life.
Average useful life in years from
to
Owner-occupied buildings 27
47
Office equipment 4
12
EDP facilities 3
6
Motor vehicles 4
5
25.9. Calculation of fair value
Measurement process of financial instruments
The valuation process for determining the fair value of financial assets aims to apply publicly available price quotations in
active markets or valuations determined by application of recognised economic models that are based on observable input
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factors. For those financial assets for which publicly quoted prices or observable market data are not available, the
valuations are mainly conducted on the basis of valuation reports (e.g. appraisals) prepared by experts. The organisational
units responsible for conducting the valuation are independent of the units that assume the investment risks, thereby
ensuring the requisite separation of functions and duties.
As a general policy, the company seeks to measure the fair value of securities held within the VIG Insurance Group at the
same prices at the respective valuation date. In practice, however, situations arise in which actually achieving this goal
would entail disproportionately high costs. For example, local regulations in some countries in which the VIG Insurance
Group operates require that resident companies use the prices determined in accordance with local regulations to measure
the value of certain instruments. If in this case the same securities are held by other companies of the VIG Insurance Group,
it can happen that these companies apply different price sources to measure the fair value.
Special funds represent another case in which uniform valuation would only be possible at a disproportionately high cost.
The Austrian companies hold special funds, which must be included in the consolidated financial statements according to
IFRS accounting rules, to varying extents. However, the net asset value (NAV) of a special fund on a given date is measured
at the (usually closing) prices of the previous day. In these cases, a security that is held both in a special fund and directly
in the company’s portfolio is measured at different prices.
Valuation process for investment property and owner-occupied property
The methods mainly used to calculate the fair value of real estate in the VIG Insurance Group are the capitalised earnings
value method, the discounted cash flow method and the asset value method (only for land or to determine maintenance
expenses).
The capitalised earnings value method is mainly used in the VIG Insurance Group. In rarer cases, a discounted cash flow
method is used if that would yield the highest-use and best-use value for the property in question.
CAPITALISED EARNINGS VALUE METHOD
Under this method, the value of the real estate is calculated by capitalising the expected future or actual gross income at
an appropriate interest rate over the expected useful life. The net income is calculated by deducting the actual expenses
for operation, maintenance and administration (management expenses). The default risk and any liquidation proceeds or
costs are considered as well. The interest rate applied to calculate the capitalised earnings value is based on the achievable
rate of return. The net income minus the return on the land value is then capitalised over the remaining useful life at the
chosen interest rate, yielding the capitalised earnings value of the physical structure. This amount is then added to the land
value to arrive at the total capitalised earnings value of the property.
DISCOUNTED CASH FLOW METHOD
The discounted cash flow method is a valuation method in which cash flows during the forecast phase (Phase I) are
discounted to present value at the valuation date. The discount rate applied for this purpose is the rate of return of a
comparably risky investment, plus property-specific and market-specific premiums. The annual gross income plus vacancy
rents (at current market rents) and minus the management expenses that cannot be charged to tenants results in the annual
net income. Thanks to the exact nature of analysis over the individual forecast years, this method makes it possible to
allocate investments or vacancies to individual years and therefore take them into account from the outset. In Phase II, the
hypothetical sale proceeds at the end of the forecast phase (usually 10 years) are calculated by capitalising future cash
flows. The interest rate applied for this calculation is determined as the rate of return on a comparably risky investment,
plus market-specific and property-specific premiums, minus expected property appreciation.
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ASSET VALUE METHOD
The asset value method is a market-oriented method that combines the land value, the building value, the value of outdoor
facilities and the value of available connections. This method is basically used to measure the value of an undeveloped plot
of land.
The land value is usually determined by way of the residual value method, under which a development discount has no
longer been applied since 2018, having been replaced with a premium or discount for increased or decreased use,
respectively. Whether or not increased or decreased use applies is determined on the basis of a simplified usable space
study or an estimate of development possibilities based on developments in the surrounding area. This determination is
made under both the capitalised earnings value method and the asset value method. Due to the applicability of tenancy
laws, however, any usable space potential cannot be exploited and therefore the land value is usually applied instead of the
actually available useful space.
IMPAIRMENTS OF REAL ESTATE
Owner-occupied real estate and investment property are appraised at regular intervals of time by generally sworn and court-
certified building and real estate appraisal experts.
An impairment must be recognised if the fair value is less than the carrying amount (acquisition cost less accumulated
depreciation and impairments). In that case, the book value is written down to the lower fair value and the difference is
recognised in profit or loss. The same method as that applied for an impairment is applied to determine whether the fair
value of a property exceeds the book value. It is to be determined at every balance sheet date whether there are any
indications that the fair value of the property has risen above the book value. In that case, the carrying amount after reversal
of an earlier impairment may not exceed the book value less accumulated appreciation before recognition of earlier
impairments.
Both impairments and reversals of impairments are recognised in the income statement. They are presented in Note 9. Notes
to the consolidated income statement starting on page 109. The fair values and the level hierarchy according to IFRS 13 are
presented in 16. Calculation of fair value starting on page 119.
Other notes on the valuation process
The use of different pricing models and assumptions can lead to different results concerning fair value. Changes in the
estimates and assumptions applied in calculating the fair value of assets in those cases in which quoted market prices are
not available can make it necessary to adjust the book value of the corresponding assets upwards or downwards and
recognise a corresponding expense or income in the income statement.
Certain investments that are not normally measured at fair value on a recurring basis are measured at fair value on a
one-time basis if events or changes in circumstances give reason to assume that the book value may no longer be
recoverable.
Valuation hierarchies
The VIG Insurance Group assigns all financial instruments to one level in the IFRS 13 valuation hierarchy. In line with the
decentralised organisational structure of the VIG Insurance Group, the individual subsidiaries are responsible for this
categorisation. In particular, this approach ensures that local knowledge concerning the quality of individual fair values or
any input parameters needed for model-based valuation are taken into account.
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The fair values are determined on the basis of the following hierarchy according to IFRS 13:
• The determination of the fair value of financial instruments is generally based on quoted prices for identical assets or
liabilities in active markets (Level 1).
• If the financial instrument in question is not listed or if quoted prices in active markets are not available, the fair value is
determined on the basis of quoted market prices for similar assets or prices quoted in non-active markets (Level 2).
Common valuation models for which the input factors are based on observable market data are used for Level 2. Such
models are mainly used for illiquid bonds (present value method) and structured securities.
• The fair values of certain financial instruments, particularly bonds from countries without an active market and real
estate, are determined on the basis of valuation models utilising input factors that are mainly not based on observable
market data. Such models are mainly used to measure the fair values of transactions in non-active markets, expert
opinions, and the structure of cash flows (Level 3).
The following table shows the methods used and the most important input factors separately for Level 2 and Level 3. The
fair values calculated can be used for regular as well as non-recurring measurements.
Pricing method Used for Fair value Input parameters
Level 2 Observable
Present value method
Bonds; borrower's note loans; loans; securitised
liabilities and subordinated liabilities
Theoretical price Issuer, sector and rating-dependent yield curves
Libor market model present value
method
Bonds and borrower's note loans with other
embedded derivates
Theoretical price
Money market and swap curves; implied volatility
surface; cap & floor volatilities; issuer, sector and
rating-dependent yield curves
Present value method Currency futures contracts Theoretical price
Exchange rates; money market curves for the
currencies concerned
Present value method Interest rate/currency swaps Theoretical price
Exchange rates; money market and swap curves for
the currencies concerned
Option pricing models Stock options Theoretical price
Share prices on the valuation date; implied
volatilities; yield curve
Level 3 (Un-)observable input factors
Option pricing models Stock options Theoretical price
Share prices on the valuation date; volatilities; yield
curve
Market value method Real estate Appraisal value
Real estate-specific income and expense
parameters; capitalisation rate; data on comparable
transactions
Discounted cash flow-model Real estate Appraisal value
Real estate-specific income and expense
parameters; discount rate; indexes
Multiples approach Shares Theoretical price
Company-specific earnings figures; typical industry
multipliers
Discounted cash flow-model Shares Theoretical price Company-specific earnings figures; discount rate
Share of capital Shares Book rate
Company-specific equity according to separate
financial statements
At amortised cost
Fixed income instruments (illiquid bonds, policy
loans, loans) with no observable input data for
comparable assets
Book rate Cost-price; redemption price; effective yield
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25.10. Consolidated shareholdersʾ equity
The items share capital and other capital reserves include the amounts paid in to share capital by the shareholders of VIG
Holding. 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 profits that subsidiaries have earned since their affiliation with VIG Insurance Group. These are
reduced by the dividends distributed by VIG Holding. Amounts resulting from the changes in the scope of consolidation are
also recognised here. If changes are made to accounting policies, the adjustments for earlier periods that are not included
in the financial statements are recognised in the opening balance sheet value of retained earnings for the earliest period
presented.
Other reserves consist of unrealised gains and losses from the measurement of insurance contracts, the measurements of
financial instruments measured at FVtOCI as well as actuarial gains and losses, which are to be recorded in the statement
of comprehensive income in accordance with IAS 19. Furthermore, unrealised gains and losses from the at equity
measurement of associated companies, effects from the application of IAS 29 Financial Reporting in Hyperinflationary
Economies and the exchange differences resulting from the currency conversion of foreign subsidiaries are reported in the
other reserves.
Non-controlling interests are also shown as part of the shareholders’ equity. These include shares held by third parties in
the equity of consolidated subsidiaries which are not directly or indirectly wholly owned by VIG Holding.
Details regarding capital management can be found in chapter “Capital management” starting on page 197.
Share capital and voting rights
The share capital amounts to EUR 132,887,468.20. It is divided into 128,000,000 no-par-value bearer shares with voting
rights, with each share representing an equal portion of share capital. The number of shares issued remained unchanged.
The Managing Board is not aware of any restrictions on voting rights or the transfer of shares. Employees who own shares
exercise their voting right directly at the Annual General Meeting.
The Managing Board must consist of at least three but no more than eight members. The Supervisory Board has at least
three but no more than twelve members (shareholder representatives). The Wiener Städtische Versicherungsverein, which
directly and indirectly holds around 72.47% (72.47%) of the share capital, has the right to appoint up to a third of the
members of the Supervisory Board if, and as long as, it holds 50% or less of the Company’s voting shares. Annual General
Meeting resolutions are adopted by a simple majority, unless a different majority is required by law or the Articles of
Association.
There are no shares with special rights of control; reference is made to the previous paragraph with regard to the rights of
the shareholders of the Wiener Städtische Versicherungsverein.
At the reporting date, the company is not party to any material agreements which take effect, alter or terminate upon a
change of control of the company following a takeover bid, especially none which concern the participations held in
insurance companies.
No compensation agreements exist between the company and its Managing Board members, Supervisory Board members
or employees covering the case of a public takeover bid.
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Anticipatory resolutions
Pursuant to § 169 AktG, the Managing Board is authorised until no later than 20 May 2026 to increase the company’s share
capital – also in multiple tranches – by a nominal amount of up to EUR 66,443,734.10 by issuing up to 64,000,000 no-par
bearer shares in exchange for cash or non-cash contributions or a combination of both. The Managing Board with the consent
of the Supervisory Board decides the content of share rights, the exclusion of pre-emptive subscription rights and the other
terms and conditions of share issuance. Preferred shares without voting rights and conveying the same rights as already issued
preferred shares may also be issued. The issue prices of common shares and preferred shares can be different.
The Managing Board was authorised by the Annual General Meeting on 21 May 2021 with the consent of the Supervisory
Board to issue convertible bonds according to § 174 AktG, which convey the right to exchange or subscribe up to
30,000,000 of the company’s no-par bearer common shares representing a proportional amount of share capital of up to
EUR 31,145,500.36, in a total nominal amount of up to EUR 2,000,000,000.00, also under exclusion of pre-emptive
subscription rights, on one or more occasions in the time until 20 May 2026.
In accordance with § 159 (2) Z1 AktG, therefore, the share capital has been raised conditionally by up to EUR 31,145,500.36
by issuing up to 30,000,000 no-par bearer common shares. The conditional capital increase will only be conducted insofar
as the bearers of the convertible bonds issued on the basis of the resolution of the Annual General Meeting of 21 May 2021
exercise their subscription or exchange rights. To date, the Managing Board has adopted no resolution on the issuance of
convertible bonds on the basis of the authorisation granted on 21 May 2021.
Furthermore, the Managing Board was authorised by the Annual General Meeting with the consent of the Supervisory
Board to issue participating bonds pursuant to § 174 (2) AktG in the total nominal amount of up to EUR 2,000,000,000.00,
also in multiple tranches and also under exclusion of pre-emptive subscription rights, in the time until 20 May 2026. To date,
the Managing Board had not adopted a resolution on the issuance of participating bonds on the basis of this authorisation.
The Annual General Meeting authorised the Managing Board on 26 May 2023 to acquire ordinary bearer shares in
accordance with § 65 (1) no. 8, (1a) and (1b) AktG to the maximum extent permissible by law during a period of 30 months
following the date the Annual General Meeting resolution was adopted. The amount paid upon repurchase of the Company’s
own shares may not be more than a maximum of 50% below and not more than a maximum of 10% above the average
unweighted closing price on the Vienna Stock Exchange on the ten stock exchange trading days preceding the repurchase.
The Managing Board may decide to make the purchase via the stock exchange, through a public offer or in any other legally
permissible and expedient manner. If the repurchase is performed via a public offer, the end of the calculation period is
determined based on the date on which the intention to make a public offer is announced (§ 5 (2) and (3) of the Austrian
Takeover Act (Übernahmegesetz)).
The Annual General Meeting also authorised the Managing Board for a period of five years from the date of the resolution
to use acquired own shares while excluding shareholder pre-emption rights
• for servicing convertible bonds issued based on the resolutions adopted by the Annual General Meeting on 21 May 2021; and
• for sales in a manner permitted by law other than via the stock market or by means of a public offer.
The Managing Board has not made use of these authorisations to date. The Group holds no own shares at the reporting date.
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25.11. Provisions
General
Provisions will be recognised if
• a legal or constructive obligation exists to a third party as a result of a past event,
• it is probable that the obligation will result in an outflow of resources and
• it is possible to make a reliable estimate of the extent of the obligation.
The provisions are recognised at the value representing the best possible estimate of the expenditure needed to fulfil the
obligation. If the cash value of the provision determined on the basis of prevailing market interest rates differs substantially
from the nominal value, the cash value of the obligation is recognised. Provisions also include personnel provisions other
than the provisions for pensions and similar obligations. This particularly concerns provisions for anniversary benefits.
25.12. Receivables and Liabilities
Receivables
The receivables presented in the balance sheet particularly consist of receivables and other assets measured in accordance
with IFRS 9.
As receivables from policyholders, intermediaries or insurance companies are directly shown in the fair value of future cash
flows under IFRS 17, this balance sheet item concerns receivables that are not associated with the insurance business.
Non-insurance receivables are measured at the transaction price. Valuation is based on the underlying transaction, while
only the impairment requirements according to IFRS 9 are applicable for receivables.
VIG Insurance Group applies the simplified approach for the eligible financial assets option for trade & lease receivables
according to IFRS 9.5.5.15. In order to fulfil this requirement, a so-called Impairment Provision Matrix is used for receivables.
Details regarding the Impairment Provision Matrix can be found in Note 2.6. Credit risk starting on page 94.
Liabilities
The liabilities presented in the balance sheet consist of liabilities and other liabilities measured in accordance with IFRS 9.
For items measured according to IFRS 9, please refer to the statement on financial liabilities in chapter 25.4. Financial
instruments starting on page 163. The other liabilities items are accounted for at AC.
25.13. Taxes
Income tax expenses include current and deferred taxes. When transactions are recognised directly in equity, the
corresponding income tax is likewise recognised in equity with no effect on the income statement. The current taxes for the
individual companies of the VIG Insurance Group are calculated on the basis of the companies’ taxable net income and the
tax rate applicable in a given country.
Deferred taxes are calculated in accordance with the balance sheet liability method in respect of all temporary differences
between the stated values of assets and liabilities in the IFRS consolidated financial statements and the corresponding tax
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values of the individual companies. In accordance with IAS 12.47, deferred taxes are measured on the basis of the tax rates
to be in effect when the differences reverse. The probably recoverable tax benefit of accumulated losses carried forward is
also included in the calculation. Differences in non-tax-deductible goodwill and deferred tax differences in participations
represent exceptions to this general definition of deferred tax liabilities. Deferred tax differences are not recognised if it is
not probable that the tax benefit can be recovered.
Group taxation
A tax group pursuant to § 9 KStG is in effect with the tax group’s parent company Wiener Städtische Versicherungsverein.
The tax results of the tax group members are attributed to the tax group’s parent company. Agreements have been con-
cluded between the tax group’s parent company and the individual tax group members to regulate the positive and negative
intragroup tax charges for the purpose of apportioning the corporate income tax burden on the basis of causation. If the
tax group member generates positive income, 24% of that positive income is paid to the tax group’s parent company. If the
tax group member generates negative income, 21.6% of the group member’s tax loss is paid by the tax group’s parent
company. Because the intragroup tax charge is 24% on positive income, the head of the tax group bears 10% of the tax
benefit from group taxation created by the respective group member’s inclusion in the tax group. In terms of cash flow, the
tax benefit is neutralised over a period of three years.
26. NEW STANDARDS NOT YET APPLICABLE AND AMENDMENTS TO EXISTING STANDARDS
Standard Short description Applicable as of*
Those already adopted by the EU
Amendments to IFRS 16 Lease liabilities for sale and leaseback transactions 01/01/2024
Amendments to IAS 1 Classification of liabilities as current or non-current 01/01/2024
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 7 Disclosures: Supplier Finance Arrangements 01/01/2024
Amendments to IAS 21 Restrictions on the convertibility of currencies 01/01/2025
*Unless otherwise specified, the VIG Insurance Group is not planning early adoption of the provisions listed in the table.
Unless otherwise stated below, the standards listed in the table are not expected to have a material impact or the
amendments are not relevant.
27. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE
Significant events up to 26 March 2024 were taken into consideration. This is the date on which the present Annual Report
was released for publication by the Managing Board.
No events according to IAS 10 that could have had a material effect on the Group’s results occurred after the reporting
date and before the approval of the consolidated financial statements by the Managing Board.
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RISK STRATEGY AND RISK MANAGEMENT
GOVERNANCE SYSTEM
Governance refers to all processes involved in the management and in the effective and efficient supervision of the group.
The governance system comprises not only the internal organisation, structure and mechanisms within the insurance group,
but also the group’s legal and factual interaction with the external (market) environment.
The Managing Board of VIG Holding is responsible for compliance with the legal regulations applicable to the insurance
group and the recognised principles for the proper conduct of business activities.
The VIG Insurance Group has instituted an efficient governance system designed to meet its needs and requirements,
which enables sound and prudent management. Aside from the establishment of governance functions and other key
functions at the level of the insurance group, all other relevant processes have been implemented to ensure the detection,
measurement, monitoring, management and reporting of risks, with due regard to the interdependencies between risks.
The internal processes ensure that due consideration is given to the assessments of the governance functions and other
key functions, as well as all results of the risk management processes, in the course of conducting business activities.
The governance system is characterised by the following attributes:
• Effective management by the Managing Board,
• Transparent supervision by the Supervisory Board,
• Alignment of management decisions with the goal of long-term value creation,
• Purposive cooperation between corporate management and supervision,
• Appropriate treatment and management of risks,
• Transparent communication within the company and well-functioning reporting paths, and
• Safeguarding the interests of policyholders, shareholders and employees.
During the reporting year, there were organisational changes in the area of the risk management system as an essential
part of the governance system. To strengthen and enhance the efficiency of risk management, the Enterprise Risk
Management Department and the Asset Risk Management Department were combined to form a single Risk Management
Department, effective 1 July 2023.
General information about the governance system
The governance system encompasses all areas and decision-making committees involved in the risk management
processes. It comprises the following elements:
• Key functions and governance functions,
• Eligibility requirements for management staff,
• Risk management system,
• Internal control system, and
• Provisions applicable to the outsourcing of functions or activities.
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RISK STRATEGY AND OBJECTIVES
The VIG Insurance Group has established clear principles and objectives for managing the risks to which it is exposed. The
implementation of these principles and the attainment of the objectives are supported by a defined risk management
organisation. The risk strategy of VIG Insurance Group is based on the following group-wide principles:
Assumed and expected risks
All risks directly related to the performance of the insurance business are accepted to a sustainable extent. Such risks
comprise underwriting risks and to a limited extent, market risks as well.
Conditionally accepted risks
Operational risks are to be avoided as much as possible. However, they must be accepted to a certain extent because
operational risks cannot be completely eliminated or the costs of eliminating these risks would be disproportionate to any
potential losses that would arise if the given risk were to materialise.
Asset management is conducted in accordance with the regulatory “prudent person principle”. The conservative investment
strategy is defined by investment guidelines and limits, taking sustainability aspects into account.
Risk minimisation measures
Risk minimisation is assured in all areas by the ongoing maintenance and promotion of a highly developed level of risk
awareness, coupled with the defined risk governance.
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Underwriting provisions are calculated with due regard to the possibility of wide fluctuations of individual parameters.
Reinsurance is a crucial instrument for ensuring stable results; it serves to protect against the adverse effects of major
losses (tail risks), particularly in non-life insurance lines of business.
The definition of limits for market risks and investments, considering the feasibility of guarantees and liquidity (asset-liability
management), also contributes to risk mitigation.
Not accepted risks
Risks are not accepted if the expertise or resources required for the given risk are not available, but also if the capital
resources are not sufficient to cover the risk in question.
Underwriting risks are not accepted if they cannot be measured and if the price cannot be determined. Such risks are
particularly found in the fields of genetic engineering and atomic energy for liability insurance.
No risks are accepted in investment if they contradict the principles of sustainability or if the expertise required to assess
these risks appropriately is not available. Such risks include weather derivatives or futures contracts on commodity indices.
Financial risks (e.g. credit insurance) are generally not accepted in the insurance business.
Organisation of the risk management system
The risk management organisation of the VIG Insurance Group is integrated into the structural organisation of VIG Holding.
Organisational units of central importance to the risk management system are shown in the graph below.
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MANAGING BOARD
The full Managing Board bears responsibility for the risk management system and particularly for the following topics:
• Development and promotion of the risk management system,
• Definition and communication of the risk strategy, including risk tolerances and risk appetite,
• Approval of central risk management guidelines, and
• Consideration of the risk situation in strategic decisions.
RISK MANAGEMENT
This unit reports to the Managing Board member Liane Hirner. The unit manager exercises the risk management function
prescribed by Solvency II at the group level and individual level.
The most important tasks of this unit include the complete identification, assessment and management of the group’s risk
profile and the solvency calculation. For this purpose, the unit provides a group-wide risk aggregation solution with an
extensive reporting system and partial modelling approaches for calculating solvency capital. Other important tasks of this
unit include the calculation of the solvency capital requirement during the year, the analysis of the risk-bearing capacity
using an internally developed analysis tool and the review of the internal control system.
This unit also supports the Managing Board in the updating of the central risk strategy, the further development of the risk
organisation and other risk management topics.
ASSET MANAGEMENT (INCL. REAL ESTATE)
This unit reports to the Managing Board member Gerhard Lahner. One of the main tasks of this unit is to define the strategic
objectives of capital investments, both of the separate insurance company and of the VIG Insurance Group as a whole.
Another key task is to adopt the investment strategy and investment processes with the goal of ensuring maximum, but
also secured ongoing investment income, while also making use of opportunities to increase the value of capital investments.
Capital investments are managed by means of guidelines and limits. The unit also prepares regular reports on capital
investments, limits and income.
GROUP TREASURY & CAPITAL MANAGEMENT
This unit reports to the Managing Board member Gerhard Lahner. Important tasks of this unit include the management of
liquidity and the planning and conception of capital raising and capital management measures, including the execution of
the company’s own capital market transactions, as well as the management of the portfolio of subordinated capital bonds
and other debt instruments.
SUBSIDIARIES AND M&A
This unit reports to the Managing Board member Hartwig Löger. It is fundamentally responsible for safeguarding the
interests of the company with respect to all participations and for providing and processing information about participations
and participation projects in a manner suited to the given decision-making situation.
ACTUARIAL SERVICES
This unit reports to the full Managing Board. The actuarial function required by Solvency II is exercised by the manager of
this unit. Thus, the unit is particularly responsible for the tasks related to the actuarial function. The unit also handles actuarial
modelling in Prophet for the group’s life and health insurance business and in ResQ for the group’s non-life insurance
business. The models generate cash flow projections for the purpose of measuring the value of underwriting provisions
pursuant to Solvency II and IFRS 17. The unit supports the analysis of IFRS 17 reserves, as well as actuarial cooperation
and networking within the VIG Insurance Group.
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COMPLIANCE
This unit reports to the full Managing Board. It coordinates and supports all companies in the VIG Insurance Group and
their compliance departments in compliance-related matters. The manager of this unit also exercises the compliance
function required by Solvency II. Thus, the unit is particularly responsible for tasks related to the compliance function.
REINSURANCE
This unit reports to the Managing Board member Peter Höfinger. It coordinates and supports all companies in the VIG
Insurance Group, including their reinsurance departments, in matters related to reinsurance in the non-life insurance lines
of business (property insurance, liability insurance and casualty insurance) by issuing and applying guidelines. The unit also
administers all group-wide reinsurance programmes in non-life insurance lines of business. The highest goal is to establish
a security network through which all companies of the VIG Insurance Group are sustainably protected against the adverse
effects of natural disasters, major losses and the negative developments of entire insurance portfolios.
VIG IT
This unit reports to the Managing Board member Gerhard Lahner. It is responsible for IT management at the level of VIG
Holding. It comprises the departments of Group Information & Cyber Security, Procurement, Architecture & Innovation,
International Bank Cooperation Management and IT Strategy & Governance.
PLANNING AND CONTROLLING
This unit reports to the Managing Board member Liane Hirner and is an important part of the overall risk management
approach. The unit coordinates business planning over a 3-year horizon. The standardised reporting system covers the
analysis of key ratios and budget-actual variances related to the budgets, forecasts and current performance of VIG Holding
and its insurance participations. The unit prepares monthly premium reports, quarterly reports for each company
(aggregated at the country level and at the level of the VIG Insurance Group) and cost reports on a regular basis.
PROCESS & PROJECT MANAGEMENT
This unit reports to the Managing Board member Gerhard Lahner. It works to ensure the clarity, transparency and
understanding of business processes so that the individual companies of the VIG Insurance Group and their employees
can better achieve their goals. To this end, the unit provides coordination and support in the three main topic areas of
project management, process management and productivity management.
INTERNAL AUDIT
This unit reports to the full Managing Board. The Internal Audit Department regularly monitors operational and business
processes, the internal control system of all operating units of the company, including compliance with legal requirements,
and the effectiveness and appropriateness of risk management. The Internal Audit function required by Solvency II is
exercised by the manager of this unit.
GROUP FINANCE & REGULATORY REPORTING
This unit reports to the Managing Board member Liane Hirner. One of the main tasks of this unit is to prepare the
consolidated financial statements according to IFRS and the related regulatory reports. This unit is also responsible for
supporting the domestic and foreign VIG insurance companies in all matters of accounting, the preparation of special
analysis reports and the reporting of actual performance numbers to the Managing Board, the Supervisory Board and
Investor Relations. Other core tasks include the calculation of own funds and the supervision of subsidiary ledgers rolled
out to all group companies and the central general ledger.
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Risk management processes
The graph below shows the main risk management process, which consists of the process steps described in the following,
which are to be repeated on a regular and ad-hoc basis:
RISK IDENTIFICATION
Risk identification is the starting point and the basis for all subsequent steps. The purpose of risk identification is to detect,
identify and document all potential material risks.
Generally, risk identification takes place on multiple levels: internal control system, risk inventory, etc. are characterised by
clearly defined processes based on guidelines and formalised procedures. Meetings, committees, regularly scheduled
meetings and other more or less formalised forms of communication and information exchange are a further source of risk
identification. Finally, the activities and expertise of the Risk Management Department represent another essential
component for the identification of relevant risks.
RISK MEASUREMENT
After risk identification, the ensuing steps of risk measurement and assessment are essential prerequisites for dealing with
risks and making decisions on that basis.
Risks are assessed on a quantitative and/or qualitative basis, depending on the type of risk. In addition to scenario and
factor-based approaches, it may also be appropriate to conduct stress tests and/or expert assessments on the subject of
risk measurement.
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RISK CONTROL
The principal risk management processes are:
Planning
The planning horizon is at least three years. The planning data are included in the Own Risk and Solvency Assessment
(ORSA) and form the basis for the projection of the solvency capital requirement.
Risk strategy
The risk strategy is reviewed by the Managing Board on an annual basis and when necessary adjusted on the basis of the
results from the ORSA. The Risk Management Department assists the Managing Board in this review.
Risk-bearing capacity
Risk management is conducted with due regard to the risk-bearing capacity requirements. Operationally, this entails the
need to meet risk budgets, attain key ratios and generally pursue a risk-oriented approach in the sense of a sustainably
value-driven strategy in the course of regular business activities.
Reinsurance programme
The Reinsurance Department coordinates the group-wide reinsurance programme and manages the annual natural disaster
protection renewal process. The Risk Management Department assists the Reinsurance Department both in the validation
of external natural disaster models used and assessment of the efficacy of reinsurance protection using the internal non-
life model.
Risk monitoring
The solvency corridor defined at the group level and the group-wide limit system applied for purposes of risk-bearing
capacity form the basis for the continuous monitoring of the solvency situation of VIG Insurance Group and its subsidiaries.
Compliance with the securities directives and the attainment of key ratios are also reviewed and monitored on an ongoing
basis. For monitoring purposes, regular fair value measurements, VaR calculations and detailed sensitivity analyses and
stress tests are conducted and the solvency capital requirement is calculated during the course of every year.
Liquidity risk is managed and monitored on the basis of a reconciliation of capital investments and insurance obligations.
Operational risks, which can be caused by defective internal processes, defective controls, erroneous assessments or
defective models, are likewise subjected to constant monitoring within the scope of the internal control system.
RISK PROFILE
The risk profile of VIG Insurance Group is sub-divided into ten principal risk categories, which are presented and described
in the following.
• Life insurance underwriting risk
• Non-life insurance underwriting risk
• Health insurance underwriting risk
• Market risk
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• Credit risk / counterparty default risk
• Operational risk
• Liquidity risk
• Strategic risk
• Reputation risk and
• Risk from intangible assets
The risks in the individual categories of the risk profile are assessed on a quantitative and/or qualitative basis. Quantitative
assessment is performed on the basis of the uniform calculation approach prescribed by Solvency II (standard formula) only
in those areas in which a preceding appropriateness review has confirmed the validity of the standard method.
The standard formula substantially overestimates the risk of VIG Insurance Group in the non-life and property/real estate
areas. Therefore, the solvency capital requirement for these areas is calculated on the basis of a partial internal model (PIM),
which has been approved by the FMA.
The partial internal model for property/casualty (ariSE) is applied for companies in the countries of Austria (VIG Holding,
Wiener Städtische, Donau Versicherung), Czech Republic (Kooperativa, ČPP, VIG Re), Slovakia (Kooperativa, Komunálna),
Poland (Compensa, InterRisk) and Romania (Omniasig, Asirom). The partial internal model for property/real estate is used
in all Austrian companies of the VIG Insurance Group.
The data are consolidated in accordance with Method 1 of the EC Directive 2009/138/EC.
IMPLEMENTATION OF THE PRUDENT PERSON PRINCIPLE
Solvency II in general and the prudent person principle in particular demand more self-responsibility for prudent capital
investment on the part of companies. Therefore, the VIG Insurance Group has always pursued a conservative approach in
its investment activities. The regulatory requirements confirm the business policy applied by the group.
Assessing the risks of investments in a constantly changing regulatory environment requires a high degree of expertise
within the individual companies and VIG Holding as the central management entity. To meet the requirement, it is essential
that the Group has appropriately trained employees and the necessary professional infrastructure. VIG Insurance Group
explicitly accepts these requirements and fulfils them by implementing a uniform software programme for the purpose of
administration and risk assessment of the main capital investment portfolios.
Key principles of business prudence are defined in the internal corporate guidelines, which apply to all insurance companies
of the VIG Insurance Group.
Capital investment is embedded in a multi-step process. The overriding goal of capital investment is to permanently ensure
fulfilment of the group’s insurance obligations. On this basis, due consideration is given to the requirements of the group’s liabilities.
Life insurance underwriting risk
Besides demographic risks, life insurance underwriting risk also includes the adverse effects of changed cancellation
behaviour and cost risks. It comprises the sub-modules of mortality, longevity, disability, costs, amendment and cancellation,
as well as disaster risk.
RISK MINIMISATION
To minimise cancellation risk, the VIG Insurance Group maintains an effective complaint management programme, qualified
advisors and customer retention programmes to enhance customer satisfaction and prevent cancellations. The cancellation
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behaviour of policyholders is constantly monitored so that targeted measures can be implemented in reaction to
unfavourable developments.
Costs are analysed on a regular basis and taken into consideration in the product design process. In the Austrian companies,
moreover, insurance contracts are protected against inflation by means of index adjustments.
Many customers decide to also purchase term life insurance when they purchase pension insurance. This lessens the
longevity risk associated with pension insurance contracts.
To reduce mortality rates, it is constantly monitored and safety margins are factored into the premiums. For large insured
sums, the insured persons undergo medical exams and the insurance benefit is reinsured. In addition, demographic
developments suggest that mortality is likely to decline in the medium to long term.
In life insurance, moreover, various reinsurance contracts are in effect which generally contribute to risk minimisation. Details
on the subject of reinsurance are provided in the chapter of the same name beginning on page 195.
Non-life insurance underwriting risk
Non-life insurance underwriting risk is the risk that insured losses and costs will be higher than income. It is mainly
composed of the following components:
• Risk from extreme loss events, particularly natural disasters,
• Risk from unprofitable contracts due to inadequate premium pricing,
• Risk from loss events that have already occurred, but are not sufficiently known or provisioned,
• Cancellation risk (decrease in the contribution margin due to a sharp drop in insurance contracts in force), and
• Cost risk.
RISK MINIMISATION
Non-life insurance underwriting risk is considerably reduced by transfer to reinsurance. In selecting reinsurers, the
companies of the VIG Insurance Group must adhere to a safe list defined by the Reinsurance Security Committee. Transfer
to a reinsurer that is not included on this list requires individual permission by the Reinsurance Security Committee.
The Reinsurance Security Committee is composed of selected, professionally qualified employees of the reinsurance and
specialist departments of a number of companies of the VIG Insurance Group.
Details on the subject of reinsurance are provided in the chapter of the same name beginning on page 195.
Underwriting risk of health insurance, including casualty insurance
Health insurance underwriting risk is sub-divided by type of non-life insurance and by type of life insurance, depending on
the contract design. Health insurance underwriting risk by type of non-life insurance is calculated in accordance with the
partial internal model because the assumptions applied in the standard formula do not appropriately reflect the risk profile
of the VIG Insurance Group in the area of non-life insurance. The risk by type of life insurance and disaster risk in health
insurance is calculated in accordance with the standard formula.
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HEALTH INSURANCE BY TYPE OF LIFE INSURANCE
The underwriting risk of health insurance by type of life insurance basically comprises the classic life insurance underwriting
risks. With respect to the risk exposure of the VIG Insurance Group, cancellation risk makes the greatest contribution to
the capital requirement, but disability/morbidity risk and cost risk are also important.
HEALTH INSURANCE BY TYPE OF NON-LIFE INSURANCE
Health insurance underwriting risk by type of non-life insurance corresponds to casualty insurance and comprises the
classic non-life insurance underwriting risks. Casualty risk is assessed as being comparatively low. For example, losses can
arise from a large number of deaths and injuries, but they are adequately reinsured.
NATURAL DISASTER RISK IN HEALTH INSURANCE
Three different disaster scenarios are considered for disaster risk in health insurance: mass casualty accidents, accident
concentration and pandemic. This risk is adequately reinsured and of subordinate importance due to the low level of
materiality.
RISK MINIMISATION
Extensive underwriting guidelines (criteria for the assumption of risks) have been implemented to minimise the health
insurance underwriting risk by type of life insurance.
Health insurance underwriting risk by type of non-life insurance is lessened by transfer to reinsurance. In selecting reinsurers,
subsidiaries must adhere to a safe list defined by the Reinsurance Security Committee. A reinsurer that does not appear
on this list may only be selected after individual permission by the Reinsurance Security Committee.
Details on the subject of reinsurance are provided in the chapter of the same name beginning on page 195.
Market risk
Market risk refers to the risk of losses due to market price changes. Fluctuations of interest rates, share prices and exchange
rates, as well as changes in the market value of real estate and participations, can adversely affect the value of investments
and liabilities. This risk comprises the sub-modules of interest risk, share and participation risk, property/real estate risk,
spread risk, risk of concentration and currency risk.
RISK MINIMISATION
Significant measures to lessen market risk include the diversification of assets and the existing limit system for capital
investments at the level of the individual companies. Asset diversification reduces the risk of an adverse market development
of an individual asset or class of assets. The limit structure prescribed for Asset Management by the Managing Board
defines the maximum investment volumes per asset class. For more information on this subject, please refer to the remarks
on the subject of the prudent person principle on page 188.
The desired diversification for the overall group is additionally given by the fact that the operating companies operate with
different products in different markets. Furthermore, care is taken to ensure that the portfolios within the individual
companies are appropriately diversified.
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Credit risk / counterparty default risk
Counterparty default risk is the risk of a loss or detrimental change in value of assets and financial instruments arising from
an unexpected default of a counterparty or debtor. Credit risk is present both in capital investments such as bonds, loans
and deposits and fundamentally also in other receivables and cash deposits in banks.
RISK MINIMISATION
The VIG Insurance Group has implemented suitable procedures and controls to reduce the risk from receivables due from
counterparties. Besides monitoring the ratings of banks and reinsurers and formulating internal bank ratings, such
procedures and controls also include measures such as a well-aligned reinsurance programme, cooperation with
prestigious brokers in key account business, a large number of sales partners, and group-wide transfer pricing and
underwriting guidelines. Also in relation to policyholders, the group employs a large number of measures to limit
counterparty default risk, including payment reminders, cooperation with collection agencies and contract termination upon
payment default. Furthermore, insurance protection is usually terminated or reduced if premium payments are not made.
Liquidity risk
The liquidity risk is the risk arising from the lack of marketability of investments in order to meet current short-term or long-
term obligations. This includes, for example, losses arising due to asset-liability mismatches.
RISK MINIMISATION
To minimise liquidity risk, investments and liabilities are regularly analysed within the scope of the ALM process. Together
with clear investment specifications (limit systems) and a conservative investment policy, this kind of analysis contributes to
the appropriate management of liquidity risk.
Additional details on the subject of liquidity management can be found on page 196.
Operational risk
Operational risk describes the risk of losses related to business operations. Such losses are caused by defective internal
processes, defective controls, erroneous assessments or defective models. Examples of operational risks are fraud by third
parties, the failure of IT systems or human error.
RISK MINIMISATION
For monitoring operational risks, the VIG Insurance Group maintains an adequate internal control system (ICS), which helps
to lessen existing risks and ensures ongoing monitoring of risks.
Strategic risk
Strategic risk is the risk of a negative business development due to incorrect business decisions, poor communication and
implementation of corporate objectives, the company’s inadequate ability to adapt to the economic environment, and
mutually contradictory business objectives.
RISK MINIMISATION
The clear communication of corporate objectives ensures that business decisions that have been made are implemented
throughout the group. The placement of Managing Board members and executives of the second management level on
the supervisory boards of the subsidiaries ensures that group objectives are implemented locally. The pursuit of a multi-
branding strategy coupled with the high degree of autonomy of the local companies ensures that strategic risk is diversified.
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Reputation risk
Reputation risk is the risk of negative changes in business due to damage to a company’s reputation. Reputation damage
can undermine the trust that customers, investors or the company’s own employees place in the company and can
therefore also lead to financial losses. Possible causes of reputation damage include lack of advice when selling products,
lack of customer service, the provision of false information to investors, negative reports in the media particularly in
connection with sustainability or other non-financial risks or reputation damage that spills from one company to another.
RISK MINIMISATION
In the process of recruiting new employees, careful attention is already given to their integrity and personal reliability.
Employees working in sales or representative activities in particular are supported by special training measures. Moreover,
the Code of Business Ethics sets out clear rules of conduct to be observed by all employees. Other risk-lessening measures
besides employee-driven measures include investments in advertising to acquire new customers and retain existing cus-
tomers in the long term, professional complaints management to address customers’ concerns and strong social and
cultural engagement (e.g. Social Active Day, promotion of social events, sponsoring of art and culture).
In addition, the Investor Relations and CO³ Departments are responsible for clear external communication in order to provide
information to investors and comments on media reports.
Risk from intangible assets
The risk from intangible assets refers to the risk of a loss or detrimental changes in the value of intangible assets.
RISK MINIMISATION
The recoverability of intangible assets is regularly tested. No further risk minimisation measures are needed.
OTHER NOTES
Handling of sustainability risks
Sustainability risks are risks to which the company is exposed (outside-in perspective), as well as any risks arising from the
business activity of VIG that could potentially have adverse effects on society or the environment (inside-out perspective).
Such risks have always been taken into account implicitly or even explicitly in some cases within the scope of risk
management.
To ensure a structured approach to the identification of sustainability risks in the group and appropriately account for both
perspectives, a group-wide risk catalogue with explicit reference to sustainability risks has additionally been prepared in
observance of the Guide to Handling Sustainability Risks published by the Austrian Financial Market Authority. This risk
catalogue is regularly reviewed to ensure completeness and supplemented when necessary by the VIG insurance
companies within the scope of the group’s standardised risk management process. Thus, the catalogue also forms the
basis for the consideration of sustainability risks in the existing risk management processes for measuring, analysing and
managing the group’s risks. The handling of sustainability risks in risk management is also explicitly addressed in the group’s
internal (risk management) guidelines.
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Also in the reporting period, the sustainability risks relevant for the group were identified and assessed in the individual VIG
insurance companies and at the level of the VIG Insurance Group on the basis of the above-mentioned risk catalogue. The
results were documented in the Group ORSA (Own Risk and Solvency Assessment) Report. Overall, the analysis showed
that VIG’s sustainability risks are mostly on a low to medium level at the present time. It is expected, however, that these
risks will continue to gain relevance in large part due to the growing importance of this issue. The above-mentioned process
for the group-wide identification and assessment of sustainability risks will be substantially expanded in the course of the
preparations to be made for the new reporting obligations under the ESRS (European Sustainability Reporting Standards).
Regulatory conditions
VIG Insurance Group is subject to domestic and foreign (insurance) supervisory regulations. These regulations govern such
matters as:
• Own funds of insurance companies and insurance groups,
• Admissibility of investments for the purpose of protecting underwriting provisions,
• Concessions of the different insurance companies of the VIG Insurance Group,
• Marketing activities and sales of insurance contracts, and
• Cancellation rights of policyholders.
Changes in the legal framework conditions could necessitate restructuring and thereby cause higher costs.
Risk of concentration
Risk of concentration comprises those risks that are caused either by inadequate diversification of the investment portfolio
or by heightened exposure to the default risks of individual issuers or group of affiliated issuers of securities.
A risk of concentration exists as part of the strategic partnership with the Erste Group, which is consciously accepted by
the VIG Insurance Group. The exposure is regularly assessed and monitored by means of the established risk management
processes.
Risks from mergers and acquisitions
In the past, VIG Holding has directly or indirectly acquired a number of companies in Central and Eastern Europe or
participated in them. Mergers of subsidiaries are considered when the synergy effects achieved are greater than the
advantages of a diversified market presence.
Mergers and acquisitions often entail challenges with respect to corporate governance, organisation, processes and
financing. Such challenges include:
• The need to integrate the infrastructure of the acquired company or company to be merged, including management
information systems, risk management systems and controlling systems,
• The resolution of outstanding legal or regulatory issues and the related legal and compliance risks arising from the
merger or acquisition,
• The integration of marketing, customer service and product offerings,
• The integration of different corporate and management cultures, and
• The coordination of business and reporting processes and the consideration of group-wide requirements.
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Climate risks
Global warming is causing more extreme weather events. That presents additional challenges for insurance companies that
protect their customers from the financial consequences of damage caused by natural hazards. VIG has therefore increased
its knowledge of this subject considerably in the last few years. It conducts scenario analyses to gain an idea of how climate
change will affect claims development and therefore the insurance business. The medium and long-term effects of climate
change are also examined in the group’s “Own Risk and Solvency Assessment” (ORSA), a periodically conducted
assessment of the group’s own risk situation and equity base (solvency). The investigations related to the consequences of
global warming also pertain to transition risks, which are assessed primarily on a qualitative basis, and physical risks, which
are additionally subjected to detailed quantitative analysis (see the table on page 195).
• Transition risks refer to the risks arising as a result of the transition to a climate-neutral and resilient economy and
society and could lead to a devaluation of assets, including changes in the political and legal framework of the real
economy (e.g. introduction of a CO2 tax), technological developments (e.g. renewable energy, energy storage) and
changes in consumer behaviour.
• Physical risks of climate change arise directly from the consequences of climate changes, such as an increase in the
global average temperature and the associated occurrence of more frequent and more intensive natural disasters and
extreme weather events such as floods, heat waves and droughts, storms and hail.
Internal and external experts working together assess the probabilities of natural disasters and calculate the possible effects
in all key markets of VIG. They analyse scenarios involving three different temperature rises (1.5, 2.0 and 3.0 degrees
Celsius). The risk models applied are continually improved on the basis of new data, facts and insights such as the latest
scientific studies or newly constructed flood protection measures, for example.
The scenario analyses show that flooding in particular is a significant risk for the activities of VIG. Besides the higher losses
caused by flooding, damage can be expected from stronger hailstorms and summer storms. Whereas hail damage also
has a significant effect on motor own damage insurance, flood damage affects the other property insurance lines to a
greater degree. The underwriting expertise it has acquired helps VIG purchase the optimal reinsurance for assumed risks,
among other things.
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The table shows which natural hazards are relevant for VIG and which are influenced by climate change from a scientific
standpoint:
Due to global warming, the prevention of damage caused by natural hazards in the underwriting process is becoming
increasingly important. The management process for corporate customers and key accounts begins with a careful analysis
of the natural hazard situation by the VIG partner company Risk Consult. Risks can be assessed with the aid of the latest
natural hazard models together with information about the circumstances on location (e.g. protective measures that have
already been implemented). On this basis, the experts of Risk Consult develop customised recommendations to improve
the risk situation further and prevent damage. Insurance terms and conditions are derived from precisely this risk situation
and in many cases the implementation of the proposed measures is the precondition for insuring the risks in question. Risk
Consult analyses around 2,000 business establishments for VIG every year, thereby making an important contribution to
making the economy more resilient against natural hazards.
All known climate risks have been included in the measurement of assets and liabilities in the present consolidated financial
statements. In this context, reference is made to the storm and weather damage that occurred in the past financial year,
which was taken into account in the statement of financial position and income statement.
Reinsurance
The VIG Insurance Group limits its potential liability from its insurance activities, where necessary by transferring a portion
of assumed risks to the international reinsurance market. Risks of the insurance companies are reinsured within the VIG
Insurance Group to some extent and are then transferred to external reinsurers.
REINSURANCE GUIDELINE
The Reinsurance Guideline is drafted every year anew by the central Reinsurance Department in cooperation with the
Managing Board member responsible for reinsurance during the development of the reinsurance strategy for the next
financial year. It imposes the obligation on every insurance company to design appropriate reinsurance coverage for their
local company in consultation with the Corporate Reinsurance Department. The Reinsurance Guideline governs the fol-
lowing points.
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Reinsurance is the prerequisite for granting insurance protection
Specialised departments may only grant a binding promise to insure any risk over a certain limit if adequate reinsurance
has already been assured.
Retentions
As a group-wide rule, natural disaster damage events may be insured for no more than EUR 70 million on a PML (probable
maximum loss) basis. The maximum group-wide retention for each claim is less than EUR 25 million.
Selection of reinsurers: Diversification
VIG Holding and its subsidiaries spread their reinsurance protection among a large number of different international
reinsurance companies, which have adequate creditworthiness in the opinion of VIG Holding to minimise the risk of
insolvency on the part of a reinsurer (credit risk). The monetary limit per reinsurer is individually specified for each subsidiary.
Selection of reinsurers: Rating
For those lines of business in which claims are settled on a long-term basis, especially motor third party liability insurance,
general third party liability insurance and aviation insurance, the VIG Insurance Group uses reinsurers with excellent ratings
(at least Standard & Poor’s rating “A”, preferred “AA” or higher rating), that can be expected to remain in business over the
long term with a high degree of probability. For lines of business in which claims must be settled quickly (e.g. natural
disasters, fire, engineering, transport, storm, burglary, household, water damage, motor own damage), in which the number
of reinsurers is greater, the preferred Standard & Poor’s rating is “A” or higher. Reinsurers with lower ratings are only
accepted in a few isolated cases for a limited period of time.
Design of reinsurance programmes
If economically justifiable, reinsurance coverage may be purchased from external reinsurers by each subsidiary individually.
If individual reinsurance contracts can be purchased by each subsidiary only at uneconomical terms, the VIG Insurance
Group will seek a joint placement of reinsurance contracts as much as possible to cover risks from the coverage of natural
catastrophes, property lines of business, casualty, transport, aviation and motor liability. Internal reinsurance assumptions
within the group are also transferred to the reinsurance market by retrocession when necessary for risk diversification
purposes.
Liquidity management
The VIG Insurance Group manages its liquidity on the basis of guidelines resolved by the Managing Board of VIG Holding.
Liquidity planning is basically the responsibility of every subsidiary and VIG Holding itself. VIG Holding as the parent company
handles the allocation of capital for the entire VIG Insurance Group. This ensures the efficient distribution of capital within
the VIG Insurance Group. It also enables VIG Holding to ensure that the targeted liquidity and equity resources are available
both at the level of the VIG Insurance Group and at the level of the individual operating entities.
The greater part of liquid funds for ongoing business activity derives from premium income from primary insurance and from
ongoing investment income and proceeds from the sale of investments. On the cost side, expenses are incurred for claim
payments in property and casualty insurance and benefit payments in life and health insurance. The remaining balance of
liquid funds is used to pay insurance acquisition costs and operating expenses.
The maturity structure of the insurance business provides a natural liquidity cushion. In contrast to the collection of
premiums, the VIG Insurance Group grants insurance coverage for a certain period during which there are no direct cash
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outflows until the occurrence of an insured event. This liquidity cushion is invested during this time to generate investment
income. Some of these funds are kept in liquid assets to allow for rapid conversion into cash to pay claims. In addition, the
bond portfolio in particular is structured in such a way that it will mature at a time when the corresponding funds are
expected to be needed. External factors such as the performance of capital markets and the level of interest rates influence
the liquidity situation insofar as they either favour or restrict the ability to sell the investment portfolio at market value.
The time, frequency and size of insured claims are also important for the liquidity situation of property and casualty insurance.
The number of insurance contract renewals also plays a role.
The liquidity requirement of life insurance is generally influenced by the development of actual mortality in comparison with the
assumptions on which the underwriting provisions are based. Market returns or minimum interest rates and the behaviour of life
insurance customers, such as the number of policies surrendered or terminated, also have an effect on liquidity needs.
Capital management
In the interest of our shareholders and insurance customers, it is our goal that VIG Holding be adequately capitalised at all
times and that all the operating insurance companies at least fulfil their respective regulatory capital requirements. VIG
Holding is historically a very well capitalised company by virtue of its successful business strategy. Preserving this good
capital strength is especially important to us so that we can seize profitable growth opportunities and absorb even large
loss or damage events.
STANDARD & POOR’S RATING
VIG Holding also attaches particular importance to maintaining a permanently strong credit rating from the rating agency
Standard & Poor’s (S&P), therefore it regularly undergoes the S&P assessment. S&P uses its own capital model to assess
the relationship between the required risk capital and the available capital base of an enterprise. S&P confirmed the “A+”
rating, combined with a “stable” outlook, in November 2023. VIG’s capital base exceeded the requirements for the AAA
level rating.
The subordinated bonds issued in 2015 (EUR 400 million Tier 2, first call date 2 March 2026), in 2017 (EUR 200 million Tier 2,
first call date 13 April 2027) and in 2022 (EUR 500 million Tier 2, first call date 15 June 2032) are rated “A-” by S&P. The senior
subordinated bond issued in 2021 (EUR 500 million, 15-year term, repayable at maturity) is rated “A” by S&P, not creditable for
S&P. The subordinated bond issued in 2013 (EUR 500 million Tier 2) was called at the first call date on 9 October 2023.
ACTIVE CAPITAL MANAGEMENT
VIG Holding monitors its capital position on the basis of the criteria listed above and implements appropriate measures to
further improve the capital structure and permanently strengthen the company’s capital and solvency position. VIG Holding
has set itself the goal of keeping the solvency ratio at least at the current level in all insurance companies of the Group,
despite the targeted growth. At the Solvency II Group level, VIG Holding has defined a solvency corridor of 150% to 200%
of the solvency ratio, this range having been specified without claiming the transitional rules for underwriting reserves
claimed by the individual group companies.
The main focus of capital management is on subordinated long-term liabilities with an equity character. The Group Treasury
& Capital Management Department constantly observes the developments in the capital markets, paying particular attention
to the development of bonds with an equity character in the European insurance sector. New capital instruments developed
for insurance companies in the capital market are reviewed to see if they can be used for VIG Holding.
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EQUITY BASE
As of 31 December 2023, 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 2023
(2022: 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 25.10 Consolidated
shareholdersʾ equity starting on page 177.
As of 31 December 2023, the solvency ratio of the VIG Insurance Group as defined by Solvency II was 268.90%
(31 December 2022: 279.91%).
LONG-TERM DEBT FINANCING
VIG Insurance Group had outstanding subordinated bonds with differing maturities as of 31 December 2023. Detailed
information on the bonds programme of VIG Insurance Group is provided in Note 2.10. Subordinated liabilities starting on
page 99. The maturity structure shows that the VIG Insurance Group places an emphasis on subordinated liabilities, which
are creditable as equity. General conditions in the capital markets and other circumstances that are affecting either the
financial services sector as a whole or VIG Insurance Group in particular could have a detrimental effect on funding costs
and the availability of debt capital. The goal, therefore, is to actively manage the capital structure to keep refinancing risks
as low as possible.
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Transparency and stakeholder trust are important to us.
O
bservance 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 pre-
paring this consolidated corporate governance report.
The Austrian Code of Corporate Governance is available to
the public both on the VIG Insurance Group website at
group.vig/en/corporate-governance and the website of the
Austrian Working Group for Corporate Governance at
www.corporate-governance.at.
VIG Holding sees corporate governance as a continuously
changing process that responds to new conditions and cur-
rent trends for the benefit of the Group and its stakeholders.
The goal of all corporate governance measures is to ensure
responsible corporate management aimed at long-term
growth while simultaneously maintaining effective corporate
control.
The Managing Board, Supervisory Board and 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 Super-
visory Board is presented below.
The rules of the Austrian Code of Corporate Governance
are divided into the following three categories:
• Rules based on mandatory legal requirements (“Legal
Requirements”)
• Rules that must be observed. Non-compliance with
these rules must be declared and explained in order to
comply with the Code (“Comply or Explain”)
• Non-compliance with rules which are merely
recommendations 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 2023, 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 increasing 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
corporate governance report. These include: Ray Sigorta
(Türkiye) and Makedonija Osiguruvanje (North Macedonia).
The Corporate Governance reports are available on the
company websites:
– https://www.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: group.vig/shareholderstructure.
MEMBERS OF THE MANAGING BOARD AND THEIR
RE
SPONSIBILITIES
The VIG Holding Managing Board had the following six
members as of 31 December 2023: Hartwig Löger (General
Manager (CEO), Managing Board Chairman), Peter Höfinger
(Deputy General Manager, Deputy Managing Board Chairman),
Liane Hirner (CFRO), Gerhard Lahner (COO), Gábor Lehel (CIO)
and Harald Riener.
Corporate Governance Report
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Further information on the members of the Managing B
o
ard, including their employment history, is presented below:
Hartwig Löger
General Manager (CEO),
Chairman
of the Managing Board
Year of birth: 1965
Date first appointed: 1
January 2021
End of current term of office:
30
June 2027
H
artwig Löger
b
egan 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 Group under an
advisory agreement with Wiener Städtische Versicherungsverein, the principal shareholder
of VIG Holding, from July 2019 to December 2020.
Areas of responsibility:
L
eading the VIG Group, Strategy, General Secretariat & Legal,
Opportunity Management, Human Resources, Subsidiaries and M&A, CO
3
, European Affairs,
Sponsoring
Country responsibilities:
Austria, Slovakia, Czech Republic, Hungary
Peter Höfinger
Deputy
General Manager, Deputy
Chairman of the Managing Board
Year of birth: 1971
Date first appointed: 1
January 2009
End of current term of office:
30
June 2027
P
eter Höfinger
s
tudied 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:
Co
rporate Business, Reinsurance
Country responsibilities:
Albania, Bosnia-Herzegovina, Bulgaria, Kosovo, Croatia, Moldova,
Montenegro, North Macedonia, Romania, Serbia
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Liane Hirner, CFRO
Y
ear 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 role of CFO as of 1 July 2018 and additionally
the role of Chief Risk Officer as of 1 January 2020. In 2019, EIOPA appointed Liane Hirner
as a new member of the Insurance & Reinsurance Stakeholder Group (IRSG).
Areas of responsibility:
Group Finance & Regulatory Reporting, Risk Management, Planning
and Controlling, Tax Reporting & Transfer Pricing
Country responsibilities:
Germany, Liechtenstein
Supervisory board positions or comparable positions in other Austrian and foreign
companies outside the Group:
Autoneum Holding AG – Winterthur, Switzerland
Gerhard Lahner, COO
Year of birth: 1977
Date first appointed: 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), Data & Analytics, Group
Treasury & Capital Management, Process & Project Management, VIG IT
Country responsibility
: Georgia, Türkiye
Supervisory board positions or comparable positions in other Austrian and foreign
companies outside the Group:
Wien 3420 Aspern Development AG, Wiener Börse AG,
Aktienforum
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Annual Financial Report 2023
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:
Assistance, New Businesses, Transformation & Research
Country responsibilities:
Belarus
Supervisory board positions or comparable positions in other Austrian and foreign
companies outside the Group:
Global Assistance Georgia LLC
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:
Retail Insurance & Business Support, Customer Experience
Country responsibilities:
Estonia, Latvia, Lithuania, Poland, Ukraine
Supervisory board positions or comparable positions
in other Austrian and foreign
companies outside the Group:
VIG/C-QUADRAT
The Managing Board as a whole is responsible for the compliance agendas (incl. AML), Internal Audit, Investor Relations
and Actuarial Services. The curriculum vitae of the members of the Managing Board are available on the website at
group.vig/management.
Changes during and after the reporting year
Elisabeth Stadler (year of birth: 1961) served as Chairwoman of the Managing Board of VIG Holding in the 2023 financial
year from 1 January 2023 to 30 June 2023. She resigned from the Managing Board after the end of her term of office effective
30 June 2023. Hartwig Löger succeeded Elisabeth Stadler as Chairman of the Managing Board of VIG Holding effective
1 July 2023. Peter Höfinger was named Deputy Managing Board Chairman. Peter Thirring (year of birth: 1957) served as
Member of the Managing Board of VIG Holding in the 2023 financial year from 1 January 2023 to 30 June 2023. He resigned
from the Managing Board after the end of his term of office on 30 June 2023. Mr. Thirring has been a Member of the
Supervisory Board of VIG Holding since 1 July 2023. Christoph Rath (year of birth: 1976) was appointed as a deputy
member of the Managing Board of VIG with effect from 1 September 2024 (end of term of office: 30 June 2027).
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MEMBERS OF THE SUPERVISORY BOARD
The Supervisory Board had the following twelve members
as of 31 December 2023:
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
became 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
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 Wechsel-
seitiger Versicherungsverein until the end of 2020. He has
been Chairman of the Supervisory Board of Wiener
Städtische Wechselseitiger Versicherungsverein since Jan-
uary 2021.
Rudolf Ertl
1. 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 Versicherungs-
verein since January 2021. The insurance expertise and
Group experience he has gained over many years, and his
knowledge of the CEE region, make Rudolf Ertl a major
asset to the Company as 1
st
Deputy Chairman of the Super-
visory Board.
Robert Lasshofer
2. 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 insur-
ance industry and has been the General Manager and Chair-
man of the Managing Board of Wiener Städtische Wechsel-
seitiger 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 eco-
nomics and was president of the Austrian Insurance Asso-
ciation (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,
204
Annual Financial Report 2023
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 Sparkassen
AG in 1985 and was made a member of the Managing 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.
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-Hun-
garian Chamber of Industry and Commerce since 2008
and is also a Member of the Supervisory Board of the
Credit Management 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 Slovakian
Chamber of Trade and Industry, Honorary Chair of the World
Chambers Federation of the International Chamber of Com-
merce in Paris and Member of the Managing Board of Euro-
chambres in Brussels, among other things. He studied at the
University of Economics in Bratislava and received a Ph.D.
degree in the area of East-West economic relations and an
honorary doctorate from the University of Economics in
Bratislava. In addition to numerous other awards, he re-
ceived 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.
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 Crédit 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 ad-
dition to international communications also actively assisted
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 Spar-
kasse AG, which also holds a 70% interest in Sparkasse 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 communica-
tions for technology and industrial companies (e.g. Siemens
IT Solutions and Services Slovakia, Siemens s.r.o. Slovakia,
Siemens AG Österreich, Medirex a.s.). Katarína Slezáková is
currently the Head of Marketing for CzechToll and SkyToll, two
companies in the Czech Republic and Slovakia that are
leaders in the area of intelligent transport information systems.
Peter Thirring
Year of birth: 1957
Date first appointed: 2023
End of current term of office: 2028
Peter Thirring studied law at the University of Vienna. He has
used his more than 30 years of insurance experience in the
Generali insurance group. He had been General Manager of
Donau Versicherung from March 2016 to the end of June
2018 and Member of the Managing Board of VIG Holding
from 1 July 2018 to 30 June 2023. Peter Thirring has Deputy
Chairman of the Managing Board of Wiener Städtische
Wechselseitiger Versicherungsverein since 2023.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
205
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 Inter-
national Monetary Fund and a member of the Economic
and Financial Committee – the most important economic
policy advisory committee of the European Union. Gertrude
Tumpel-Gugerell was responsible for the Economics and Fi-
nancial 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 group.vig/supervisory-board.
Changes during and after the end of the financial year
Heinz Öhler resigned from the Supervisory Board effective
30 June 2023. Peter Thirring, who resigned from the Man-
aging Board of VIG Holding effective 30 June 2023, was
elected as a new Member of the Supervisory Board in the
Annual General Meeting of 26 May 2023. Günter Geyer an-
nounced that he will no longer serve as Chairman of the
Supervisory Board of VIG Holding after the end of his cur-
rent term of office. His term of office will end on 24 May 2024
at the Annual General Meeting that will adopt resolutions on
the subject of the 2023 financial year.
SUPERVISORY BOARD INDEPENDENCE
In accordance with Rule 53 of the Austrian Code of Cor-
porate Governance, the Supervisory Board of VIG Holding
has established the following criteria defining independence:
• The Supervisory Board Member has not been a Member
of the Managing Board or a senior manager of the
Company 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
Company. This also applies to business relationships
with companies in which the Supervisory Board Member
has a considerable economic interest. The approval of
individual transactions by the Supervisory Board in
accordance with § 95 (5) (12) of the Austrian Stock
Corporation Act (AktG) or § 15 (2) (l) of the Articles of
Association does not automatically lead to a
classification of non-independence. For the purpose of
clarification, it is expressly noted that purchase or
existence of insurance policies with the Company has
no adverse effect on independence.
• The Supervisory Board Member has not been an auditor
of the Company’s financial statements, or held an
ownership interest in or been an employee of the
auditing company executing such audits in the last three
years.
• The Supervisory Board Member is not a member of the
Managing Board of another company that has a
member of the Company’s Managing Board on its
Supervisory Board.
• The Supervisory Board Member is not a close family
member (direct descendant, spouse, partner, parent,
uncle, aunt, brother, sister, niece, nephew) of a Member
of the Managing Board or individuals holding one of the
positions described above.
The Supervisory Board as a whole is considered to be inde-
pendent if at least 50% of the members elected by the Annual
General Meeting satisfy the criteria above for the independ-
ence of a Supervisory Board Member. Each Member of the
Supervisory Board has declared whether they can be con-
sidered independent based on the criteria specified by the
Supervisory Board. Robert Lasshofer, Peter Mihók and Peter
Thirring have each stated that they are not independent based
on the independence criteria specified by the Supervisory
Board. All other Supervisory Board Members were independ-
ent 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 2023:
Robert Lasshofer
AT & S Austria Technologie & Systemtechnik Aktiengesellschaft
Gertrude Tumpel-Gugerell
AT & S Austria Technologie & Systemtechnik Aktiengesellschaft
Commerzbank AG
OMV Aktiengesellschaft
206
Annual Financial Report 2023
PROCEDURES FOLLOWED BY THE MANAGING BOARD AND BY
T
HE SUPERVISORY BOARD AND ITS COMMITTEES
Managing Board
The Managing Board manages the business of the Com-
pany under the leadership of its Chairperson and within the
constraints of the law, articles of association, procedural
rules of the Managing Board and procedural rules of the
Supervisory Board.
The Managing Board meets when needed (generally every
two weeks) to discuss current business developments, and
makes the necessary decisions and resolutions during the
course of these meetings. The Managing Board Members
continuously exchange information with each other and the
heads of various departments. The country responsibilities of
the Managing Board Members are exercised in particular
through Supervisory Board activities in the Group companies.
Supervisory Board
The Supervisory Board performs all activities defined under
the law, articles of association and the procedural rules of
the Supervisory Board. In order to ensure effectiveness and
efficiency of its activities and procedures, the Supervisory
Board examines its procedures regularly, but at least once
a year in the form of a self-evaluation. The Supervisory
Board’s evaluation of its activities in 2023 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 prac-
tices followed to date.
The Supervisory Board and its committees, Chairpersons
and Deputy Chairpersons continuously monitor and regu-
larly examine Company management as well as the activ-
ities of the Managing Board in terms of managing and moni-
toring the Group. Detailed presentations and discussions
during meetings of the Supervisory Board and its commit-
tees 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 famil-
iarise 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
(consolidated) 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 re-
ports 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
Condition Report (SFCR) at both the solo and Group levels
and reported its findings to the Supervisory Board. No facts
or circumstances were found that would have provided
grounds for objection.
The internal audit department provides quarterly reports to
the Audit Committee. If necessary, the head of internal audit
provides detailed explanations of individual issues and audit
focal points. The head of internal audit also submits the an-
nual audit plan to the Audit Committee for approval. The
Managing Board explains the organisation and effecttive-
ness of the internal control system, internal audit and the
risk management system to the Audit Committee at least
once a year, and provides the Audit Committee with a writ-
ten report on this subject so that it can confirm the efficiency
of the systems. The Audit Committee also examines the re-
port and assessment of the functioning of the risk manage-
ment system prepared by the (consolidated) financial state-
ments 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 2023
and reported on them to the Supervisory Board. The Audit
Committee and Supervisory Board as a whole also received
the 2023 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
Supervisory Board with the measures to be taken by the
VIG companies in order to prevent corruption, and the
Supervisory Board discusses those.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
207
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 pro-
fessional and personal requirements provided for by law
and the Austrian Code of Corporate Governance that a
Supervisory 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 regard-
ing the election of the (consolidated) financial statements
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 complet-
ed, 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 relating to the
consolidated financial statements auditor and the members
of the network to which the consolidated financial state-
ments auditor pertains. The same goes for other financial
statements auditors who work for the Group.
The Supervisory Board also dealt with IT security issues in
financial year 2023.
In 2023, the Managing Board of VIG Holding informed the
members of the Supervisory Board of material sustainability
and IT security matters. The VIG 25 Sustainability Programme,
the new legal framework for sustainability reporting and the
transition plans to mitigate climate change were among the
topics addressed in the reporting period.
The Managing Board and Supervisory Board prepared a
remuneration report for financial year 2023.
The Supervisory Board established five committees to in-
crease its efficiency and to address complex matters: Com-
mittee for Urgent Matters (Working Committee), Audit Com-
mittee (Accounts Committee), Committee for Managing
Board Matters (Personnel Committee), Strategy Committee
and Nomination Committee.
SUPERVISORY BOARD COMMITTEES
COMMITTEE FOR URGENT MATTERS (WORKING COMMITTEE)
The Committee for Urgent Matters (Working Committee)
decides on matters that require approval of the Supervisory
Board, but cannot be deferred to the next ordinary Supe-
rvisory 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
Austrian Stock Corporation Act (AktG), § 123 (9) of the
Austrian Insurance Supervision Act (VAG) and Regulation
(EU) No. 537/2014, namely:
1. to monitor the accounting process and provide recom-
mendations or suggestions to ensure its reliability;
2. to monitor the effectiveness of the Company’s internal
control system and the internal audit function and risk
management system;
3. to monitor the audit of the financial statements and
consolidated financial statements taking into account
findings 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 statements audi-
tor), in particular with respect to the additional services
provided 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;
208
Annual Financial Report 2023
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
report at Group level and the corporate governance report
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 statements 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
Regulation (EU) No. 537/2014.
Furthermore, in a meeting (another meeting, in addition to
the meeting required by law), the Audit Committee (Ac-
counts Committee) specifies how the two-way communic-
ation between the (consolidated) financial statements audi-
tor and the Audit Committee (Accounts Committee) has to
take place, while making provision for exchanges to take
place between the Audit Committee (Accounts Committee)
and the (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 one of the members is unable to attend, this meeting will
be additionally attended by Ms Semmelrock-Werzer. 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 Com-
mittee) deals with personnel matters of the Managing Board.
The Committee for Managing Board Matters therefore de-
cides on employment contract terms with Members of the
Managing Board and their remuneration and examines re-
muneration 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 sub-
sequently 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
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
209
NOMINATION COMMITTEE
The Nomination Committee submits proposals to the Super-
visory 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
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 2023 that would
have required the approval of the Supervisory Board.
NUMBER OF MEETINGS OF THE SUPERVISORY BOARD AND
ITS COMMITTEES IN THE FINANCIAL YEAR 2023
One regular general meeting and seven Supervisory Board
meetings distributed across the financial year were held in
2023. Furthermore, four meetings of the Audit Committee
(Accounts Committee) were held and one resolution of the
Audit Committee was adopted by written circulation. The
financial statement and consolidated financial statements
auditor, KPMG Austria GmbH Wirtschaftsprüfungs- und
Steuerberatungsgesellschaft (KPMG), attended four Audit
Committee meetings and three Supervisory Board mee-
tings in 2023, including the Supervisory Board meeting that
addressed the audit of the 2022 annual financial statements
and the 2022 consolidated financial statements as well as
formal approval of the 2022 annual financial statements,
and also attended the Annual General Meeting. Two mee-
tings of the Committee for Managing Board Matters (Per-
sonnel Committee) were held in 2023. The Committee for
Urgent Matters (Working Committee) met once in 2023. The
Nomination Committee and the Strategy Committee did not
meet in 2023. Strategic matters were handled by the Super-
visory Board as a whole. No current Member of the Super-
visory Board attended less than half of the Supervisory
Board meetings. Mr Öhler, who resigned from the Super-
visory Board effective 30 June 2023, attended the meeting
in April 2023, but could not personally attend the two
meetings in June 2023.
MEETING ATTENDANCE BY MEMBERS OF THE SUPERVISORY BOARD IN FINANCIAL YEAR 2023
The table below shows the meeting attendance of the ordinary members:
Name Supervisory
Board
Audit
Committee
Working
Committee
Strategy
Committee
Personnel
Committee
Nomination
Committee
7 meetings
4 meetings
1 meeting No meetings
2 meetings
No meetings
Günter Geyer (C) 7/7 4/4 1/1 2/2
Rudolf Ertl (1
st
DC) 7/7 4/4 1/1 2/2
Robert Lasshofer (2
nd
DC) 7/7 4/4 1/1 2/2
Martina Dobringer 7/7 4/4
Zsuzsanna Eifert 7/7 4/4
Gerhard Fabisch 7/7
András Kozma 7/7 4/4
Peter Mihók 7/7 4/4
Heinz Öhler
1
1/3
Gabriele Semmelrock-Werzer 6/7
Katarina Slezáková 7/7 4/4
Peter Thirring
2
4/4
Gertrude Tumpel-Gugerell 7/7 4/4
1
Stepped down from the Supervisory Board on 30 June 2023
2
Election to the Supervisory Board at the Annual General Meeting on 26 May 2023 with effect from 1 July 2023
210
Annual Financial Report 2023
DIVERSITY CONCEPT
With over 50 insurance companies and pension funds a
nd
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 re-
spect to diversity management for the Company’s boards. By
applying diversity management to all employees, the VIG Insur-
ance Group expects to generate corresponding diversity in the
candidate pool for internal successor planning in the long term.
For VIG Insurance Group, diversity reflects both the similarities
and the differences it encounters in the Group, its markets and
its partners as well as customers. Diversity management is
based on genuine appreciation and open acceptance of di-
versity, and makes conscious use of this diversity. VIG com-
panies include this understanding of diversity in the VIG Code
of Business Ethics:
“We do not tolerate any kind of discrimi-
nation. We are committed to promoting equal opportunities
with regard to the employment and promotion of staff, regard-
less 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,
generations and internationality at the VIG Holding level, and
refined and developed measures for the following criteria:
•
Gender:
e
nsure 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 Members
are proposed for election at General Meetings. VIG Insur-
ance Group has relied on the concept of local entrepreneur-
ship for decades, thereby also promoting a very internation-
ally diverse “community” of Group Managing Board Mem-
bers and CEOs.
The topic of diversity is incorporated into the Group-wide
management training programmes, both in the selection of
participants and in the selection of lecturers.
Level of the VIG insurance companies
In accordance with the principle of local entrepreneurship,
the VIG insurance companies choose their own diversity
priorities and are independently responsible for their 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,
SU
PERVISORY 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.
Women Supervisory Board members
Women hold 22.9% of the positions in the Supervisory
Boards of the fully consolidated VIG insurance companies
in the Group (as of 31 December 2023) and 41.7% of the
positions in VIG Holding.
Women Managing Board members
Women hold 21.5% of the positions on the Managing
Boards of the fully consolidated VIG insurance companies
and 17.9% of the Chairpersons are women.
Women in management positions
Including distribution, women hold 44.5% of the manage-
ment positions at the level directly below the managing
board of fully consolidated VIG insurance companies across
Europe (not including distribution: 49.0%).
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
211
GENERATIONS AND INTERNATIONALITY
The average age of all Managing Board Members of the fully
consolidated insurance companies is 51.0 years (as of
31 December 2023), and the average age of Supervisory
Board Members is 58.7 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. VIG Holding arranged to have
these evaluations performed for the Group Corporate Gov-
ernance Report 2023. All evaluations came to the conclusion
that all requirements of the Code were fulfilled. The summa-
rised reports of these evaluations are available on the website
of the VIG Insurance Group.
Vienna, 26 March 2024
The Managing Board:
Hartwig Löger
General Manager (CEO),
Chairman of the Managing Board
Peter Höfinger
Deputy General Manager,
Deputy Chairman of the Managing Board
Liane Hirner
CFRO, Member of
the Managing Board
Gerhard Lahner
COO, Member of
the Managing Board
Gábor Lehel
CIO, Member of
the Managing Board
Harald Riener
Member of
the Managing Board
212
Annual Financial Report 2023
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 presen-
tations and discussions during mee-
tings 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 relat-
ing 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 re-
insurance, 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 remu-
neration of Managing Board Members. Goal fulfilment for
Managing Board Members also depended on both financial
and non-financial criteria in the 2023 reporting year. Detailed
information on the principles underlying the remuneration
system is available in the remuneration policy and 2023 re-
muneration report. For 2024, the Supervisory Board plans to
update the remuneration policy and also address the ar-
rangements for child-raising and parental leave, for example.
The Supervisory Board has formed five committees from its
Members. Information on the responsibilities and com-
position of these committees is available on the Company’s
website and in the 2023 consolidated corporate govern-
ance report. One Annual General Meeting and seven Super-
visory Board meetings distributed across the financial year
were held in 2023. Furthermore, four meetings of the Audit
Committee (Accounts Committee) were held and one
resolution of the Audit Committee was adopted by written
circulation. The separate financial statements and consoli-
dated financial statements auditor, KPMG Austria GmbH
Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, FN
269873y (KPMG), attended four Audit Committee meetings
and three Supervisory Board meetings in 2023, including
the Supervisory Board meeting that addressed the audit of
the 2022 separate financial statements and the 2022 con-
solidated financial statements as well as formal approval of
the 2022 separate financial statements, and also attended
the Annual General Meeting. KPMG also informed the Audit
Committee about the planning and procedure used to audit
the separate financial statements and consolidated financial
statements 2023. Two meetings of the Committee for Man-
aging Board Matters (Personnel Committee) were held in
2023. The Committee for Urgent Matters (Working Com-
mittee) met once. The Nomination Committee and the Strat-
egy Committee did not meet in 2023. Strategic matters were
handled by the Supervisory Board as a whole.
No agenda items were discussed in Supervisory Board
meetings in 2023 without the participation of members of
the Managing Board.
No current 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 2023 is available in the 2023 Corporate
Governance Report.
In order to ensure the effectiveness and efficiency of its ac-
tivities and procedures, the Supervisory Board performed a
self-evaluation of its procedures. The Supervisory Board’s
evaluation of its activities found that its organisational struc-
ture and procedures were satisfactory in terms of efficiency
and in compliance with the law. It found no need for change
or desire for change in the practices followed to date.
By way of a selection procedure for the appointment of the
auditor of the separate and consolidated financial state-
ments pursuant to the Statutory Auditors Regulation (Reg.
(EU) No. 537/2014), KPMG was elected as the auditor of
the separate and consolidated financial statements for the
2023 financial year by the Annual General Meeting on
20 May 2022 on the basis of a recommendation by the
Audit Committee and in accordance with the preference of
the Audit Committee for the Supervisory Board’s proposal
and motion. Therefore, KPMG performed these tasks in the
2023 financial year.
Supervisory Board Report
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
213
The Audit Committee mainly dealt with the following topics
in 2023:
During one meeting of the Audit Committee, the members
of the committee consulted with the auditor of the separate
and consolidated financial statements on specification of
two-way communications and audit planning.
By inspecting relevant documents, meeting with the Man-
aging Board and discussions with the auditor of the sepa-
rate and consolidated financial statements, the Audit Com-
mittee was able to monitor the accounting process and the
procedure used for auditing the separate financial state-
ments 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 Com-
mittee 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 separate financial state-
ments and consolidated financial statements, and after re-
viewing suitable documents and supporting records sub-
mitted to the Committee, particularly with respect to the ap-
propriateness of the fee and the additional services pro-
vided to the Company, was satisfied with the auditor’s inde-
pendent status. The Audit Committee dealt with permitted
non-auditing services. While reviewing and monitoring the
independence of the auditor of the separate financial state-
ments auditor and the consolidated financial statements, it
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 2023
and reported on them to the Supervisory Board. The Audit
Committee monitored the effectiveness of the internal con-
trol system, the internal audit function and the risk manage-
ment system and found them to be effective, including the
established IT security measures, after eliciting presenta-
tions on the procedures and organization of these systems
from the Managing Board, the auditor of the separate and
consolidated financial statements, and the persons directly
charged with these duties. The Audit Committee reported
on these monitoring activities to the Supervisory Board and
stated that no deficiencies had been identified. The Super-
visory Board was also given the opportunity during Super-
visory Board meetings to verify the functional adequacy of
the existing control and auditing systems.
In addition, the audit plan and the quarterly reports pre-
pared by the internal audit department were debated by the
Audit Committee and the Supervisory Board and discussed
with the head of the internal audit department and the Group
internal audit department.
The Audit Committee examined the Solvency and Financial
Condition Reports (SFCRs) at both the solo and Group
levels and reported its findings to the Supervisory Board.
No facts or circumstances were found that would have pro-
vided grounds for objection.
In 2023, the Audit Committee deliberated on the selection
of the auditor of the separate and consolidated financial
statements for the 2024 financial year. It was determined
that there were no grounds for exclusion of KPMG or cir-
cumstances that would give rise to concerns about im-
partiality, and that sufficient protective measures had been
taken to ensure an independent and impartial audit.
The Audit Committee reported the results of these de-
liberations to the Supervisory Board and then recommend-
ed to the Supervisory Board, which itself proposed to the
Annual General Meeting that KPMG be elected as the
auditor of the separate and consolidated financial state-
ments. The General Meeting selected KPMG as auditor of
the separate financial statements and consolidated financial
statements for 2024.
The Audit Committee also received the 2023 separate
financial statements, management report, 2023 consolidated
corporate governance report and 2023 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 sol-
vency and financial position of the Company during the
course of this examination.
The Audit Committee also examined the 2023 consoli-
dated financial statements and Group management report.
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Annual Financial Report 2023
In addition, the auditor’s reports prepared by the a
uditor of
the separate and consolidated financial statements KPMG for
the 2023 separate financial statements and management
report and the 2023 consolidated financial statements and
Group management report were reviewed by the Audit Com-
mittee and examined. As a result of this examination, a un-
animous resolution was adopted to recommend to the Super-
visory Board that the separate financial statements be accept-
ed. The Supervisory Board found no grounds for objection.
The auditor of the separate and consolidated financial state-
ments provided the Audit Committee with an additional report
in accordance with Art. 11 of the Audit Regulation (EU) that
explained the results of the audit of the separate financial
statements and consolidated financial statements. This ad-
ditional report prepared by the auditor of the separate financial
statements 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 2023.
The Managing Board and Supervisory Board prepared a re-
muneration report for financial year 2023.
The 2023 separate financial statements together with the
management report and 2023 consolidated corporate gov-
ernance report, the 2023 consolidated financial statements
together with the Group management report, and the Man-
aging Board’s proposed appropriation of profits were taken
up and examined in detail by the Supervisory Board.
The proposed appropriation of profits was checked, in par-
ticular, to ensure that it was reasonable when capital require-
ments were taken into account. The proposal complies with
applicable legal requirements and proactively considers the
macroeconomic and financial situation and its impact on the
company’s solvency and financial position. The proposal is in
line with the continuously pursued prudent and sustainable
capital planning to ensure a solid solvency and liquidity
position in the long term.
In 2023, the Managing Board of VIG Holding informed the
members of the Supervisory Board of material sustainability
and IT security matters. The VIG 25 Sustainability Pro-
gramme, the new legal framework for sustainability re-
porting and the transition plans to mitigate climate change
were among the topics addressed in the reporting period.
The Supervisory Board also received the 2023 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 2023 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 the auditor of
the separate and consolidated financial statements KPMG
for the 2023 separate financial statements and manage-
ment report and the 2023 consolidated financial statements
and Group management report were reviewed by the
Supervisory Board and examined. KPMG’s audit of the
2023 separate financial statements and management
report and the 2023 consolidated financial statements and
Group management report did not lead to any reservations.
KPMG determined that the separate 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 2023, and of the results of operations
of the Company for the financial year 2023 in accordance
with Austrian generally accepted accounting principles. The
management report is consistent with the separate 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 2023, and of the results of operations and
cash flows of the Group for the financial year 2023 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 report is consistent with
the consolidated financial statements. KPMG also reviewed
the 2023 sustainability report (consolidated non-financial
report) and determined in accordance with § 269 (3) UGB
that the 2023 consolidated corporate governance report
had been prepared.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
215
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 separate financial statements and consolidated financial
statements.
After thorough examination, the Supervisory Board therefore
adopted a unanimous resolution to approve the 2023 separate
financial statements prepared by the Managing Board, not to
raise any objections to the management report, the 2023
consolidated financial statements and Group management re-
port, the 2023 consolidated corporate governance report
and the 2023 sustainability report (consolidated non-finan-
cial report) and to agree with the Managing Board-pro-
posed appropriation of profits.
The 2023 separate 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 2024
The Supervisory Board:
Günter Geyer (Chairman)
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Annual Financial Report 2023
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 the VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
is issued in the financial report of this company.
The present consolidated financial statements for the financial year 2023 were approved for publication by a resolution of
the Managing Board on
26 March 2024.
Hartwig Löger
General Manager (CEO),
Chairman of the Managing Board
Peter Höfinger
Deputy General Manager,
Deputy Chairman of the Managing Board
Liane Hirner
CFRO, 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
Managing Board areas of responsibility:
Hartwig Löger :
Leading the VIG-Group, Strategy, General Secretariat & Legal, Opportunity Management, Human Resources, Subsidiaries and M&A,
CO
3
, European Affairs, Sponsoring; Country responsibility: Austria, Slovakia, Czech Republic, Hungary
Peter Höfinger:
Corporate Business, Reinsurance; Country responsibility: Albania, Bosnia-Herzegovina, Bulgaria, Kosovo, Croatia, Moldova,
Montenegro, North Macedonia, Romania, Serbia
Liane Hirner:
Group Finance & Regulatory Reporting, Risk Management, Planning and Controlling, Tax Reporting & Transfer Pricing; Country
responsibility: Liechtenstein, Germany
Gerhard Lahner:
Asset Management (incl. Real Estate), Data & Analytics, Group Treasury & Capital Management, Process & Project Management,
VIG IT; Country responsibility: Georgia, Türkiye
Gábor Lehel:
Assistance, New Businesses, Transformation & Research; Country responsibility: Belarus
Harald Riener:
Retail Insurance & Business Support, Customer Experience; Country responsibility: Estonia, Latvia, Lithuania, Poland, Ukraine
The Managing Board as a whole is responsible for Compliance (including AML), Internal Audit, Investor Relations and Actuarial Services.
Declaration by the Managing Board
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
217
AUDITOR’S REPORT
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 2023, the
Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated Cash Flow
Statement and the Consolidated Statement of Changes in Equity for the year then ended, and the Notes to the Consolidated
Financial Statements.
In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial
position of the Group as of 31 December 2023, 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
• Adequacy of insurance contracts assets and liabilities issued
• Restatement related to the initial application of IFRS 17 and IFRS 9
RECOVERABILITY OF GOODWILL
Refer to notes 3. Goodwill on pages 100ff, Material estimates and discretionary decisions – 24.4. Impairment of goodwill
on page 146 and Accounting policies – 25.5. Goodwill on pages 171ff.
Auditor’s Report
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Annual Financial Report 2023
Risk for the Consolidated Financial Statements
The recoverability of goodwill recognized in the Consolidated Financial Statements of the Vienna Insurance Group
amounting to EUR 1.371,4 million, is monitored separately at country level. At least once a year and in case of a triggering
event on an ad hoc basis Vienna Insurance Group performs a recoverability test (the so-called impairment test) of the
recorded goodwill amounts.
Impairment testing of goodwill is complex and based on a number of estimates and discretionary factors. Those factors
include in particular the expected future cash flows of the individual countries, which are primarily based on past experience
as well as on the management’s assessment of the expected market environment and the future business development.
Other factors are the assumed long-term growth rate as well as the underlying region-specific costs of capital.
Our response
We have carried out the following main audit procedures in connection with the recoverability of goodwill:
– Plausibility of the detailed planning for future years.
– Furthermore, we have dealt with the key planning assumptions and analysed consistency of the assumptions regarding
the market development to general and sector-specific market expectations.
– We have backtested the consistency of planning data using information from prior periods.
– Given that minor changes in the applied cost of capital rate significantly impact the recoverable amount of the cash
generating units, we have, together with our valuation specialists, assessed the determination of the applied cost of
capital rate and comprehended the derivation of the underlying parameters.
– By means of our own sensitivity analysis we have determined whether the tested book values are still sufficiently covered
by the recoverable amounts in case of possible changes in the assumptions within a realistic range.
– Additionally, we have assessed whether the disclosures in the notes with respect to the recoverability of goodwill are
appropriate.
ADEQUACY OF INSURANCE CONTRACTS ASSETS AND LIABILITIES ISSUED
Refer to notes 1. Insurance contracts on pages 60ff, Material estimates and discretionary decisions – 24.1. (Re-) insurance
contracts on pages 141ff and Accounting policies – 25.3. (Re-) insurance contracts on pages 149ff.
Risk for the Consolidated Financial Statements
The recognized insurance contracts assets issued as of the balance sheet date amount to EUR 229,5 million and insurance
contracts liabilities issued amount to EUR 37.804,1 million. The valuation of insurance contract liabilities is complex. The
assumptions underlying the valuation rely on numerous estimates and discretionary factors.
The uncertainties associated with these assumptions pose a risk to the financial statements, as changes in the assumptions
can have significant impacts on the amount of liabilities and the result of the period.
Our response
In our audit of the adequacy of insurance contract liabilities our own actuaries and IT specialists were part of the audit team.
We performed the following significant audit procedures:
• We gained an understanding of the processes and internal controls implemented in the company and tested the
effectiveness of selected internal controls.
• We tested the general IT controls of the relevant systems.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
21 9
• We examined the adequacy of significant assumptions, judgments, and the applied valuation and calculation models.
• For Non-life insurance, we conducted actuarial recalculations of the provision for outstanding claims in samples.
• For the valuation models “General Measurement Model” and “Variable Fee Approach” we also performed recalculations
of the rollforward of the Contractual Service Margin in samples.
• Finally, we evaluated the adequacy of the disclosures in the consolidated financial statements regarding insurance
contract liabilities.
RESTATEMENT RELATED TO THE INITIAL APPLICATION OF IFRS 17 AND IFRS 9
Refer to notes Initial applictaion of standards: IFRS 9 Financial instruments and IFRS 17 Insurance contracts on pages 36ff,
1. Insurance contracts on pages 60ff, Material estimates and discretionary decisions – 24.1. (Re-) insurance contracts on
pages 141ff and 24.2. Impairment losses on financial assets on page 145, Accounting policies: 25.3. (Re-) insurance
contracts on pages 149ff and 25.4. Financial instruments on pages 163ff.
The risk to the financial statements
As of 1 January 1 2023, the revised accounting standards for insurance contracts (IFRS 17) came into force. As part of the
initial application on 1 January 2023, it was necessary to prepare comparative information as of 1 January 2022 (opening
balance sheet) and for the year 2022 using the principles of IFRS 17. The standard generally requires retrospective
application unless impracticable, in which case a modified retrospective approach or fair value approach may be applied.
In cases where retrospective application was impracticable, in Life and Health insurance Vienna Insurance Group applied
the fair value approach.
The revised accounting standards for financial instruments (IFRS 9) came into force on 1 January 2018. However, insurance
companies had the option to apply IFRS 9 simultaneously with IFRS 17. The Vienna Insurance Group applied IFRS 17 and
IFRS 9 simultaneously for the first time on 1 January 2023.
The transition to IFRS 17/IFRS 9 resulted in a decrease in equity of EUR 289.6 million as of 1 January 2022.
The implementation of the regulations of IFRS 17 and IFRS 9 required significant management judgments, assumptions,
and estimates. Therefore, there is a risk that the restated comparative information due to the initial application of IFRS 17
and IFRS 9 in the 2023 consolidated financial statements may not be appropriate.
Our audit approach
In our audit of the adequacy of the implementation of new accounting standards for insurance contracts and financial
instruments, our own actuaries and IT specialists were part of the audit team. We performed the following significant audit
procedures on comparative information (consolidated opening balance sheet as of 1 January 2022, consolidated balance
sheet as of 31 December 2022, and consolidated income statement and comprehensive income statement for the year
2022):
• General:
– We tested the general IT controls of the relevant systems.
– We gained an understanding of the processes and internal controls implemented in the company and tested the
effectiveness of selected internal controls.
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Annual Financial Report 2023
• IFRS 17:
– We critically evaluated the transition methods used.
– We examined the adequacy of significant assumptions, judgments, and the applied calculation models and methods.
– We have conducted actuarial recalculations for the contracts valued at fair value as of the group opening balance sheet
date, and evaluated external expert opinions.
– For non-life insurance, we conducted actuarial recalculations of the provision for outstanding claims in samples.
– For the valuation models “General Measurement Model” and “Variable Fee Approach” we also performed recalculations
of the rollforward of the Contractual Service Margin in samples.
• IFRS 9:
– We critically evaluated the methodology related to classification and measurement (including a review of implementation
in the systems).
– We assessed the classification of individual financial instruments under IFRS 9.
– We also traced the transition of the financial instrument portfolio from IAS 39 to IFRS 9.
– Furthermore, we have evaluated the methodology of Expected Credit Losses and reviewed the impairments that have
been carried out.
– We conducted control calculations of deferred taxes at individual company level and on a consolidated basis.
– We evaluated the consolidation of liabilities, expenses, and revenues (particularly intra-group reinsurance).
– Finally, we assessed the accuracy and adequacy of the disclosures in the consolidated financial statements regarding
the initial application of IFRS 9 and IFRS 17.
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.
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The audit committee is responsible for overseeing the Group’s financial reporting process.
Auditor’s Responsibilities
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our audit opinion.
Reasonable assurance represents a high level of assurance, but provides no guarantee that an audit conducted in
accordance with the AP Regulation and Austrian Standards on Auditing (and therefore ISAs), will always detect a material
misstatement, if any. Misstatements may result from fraud or error and are considered material if, individually or in aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated
financial statements.
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.
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Annual Financial Report 2023
• 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.
REPORT ON OTHER LEGAL REQUIREMENTS
Group Management Report
I
n 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 pre-
pared 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 20 May 2022 and were appointed by the supervisory board
on 13 June 2022 to audit the financial statements of the Vienna Insurance Group for the financial year ending on 31 De-
cember 2023.
On 26 May 2023 we were elected as auditors for the financial year ending on 31 December 2024 and were appointed by
the supervisory board on 20 June 2023 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.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
223
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.
ENGAGEMENT PARTNER
The engagement partner is Mr Thomas Smrekar
V
ienna, 26 March 2024
KPMG Austria GmbH
Wirtschaftsprüfungs- und Steuerberatungsgesellschaft
signed by:
Mag. Thomas Smrekar
Wirtschaftsprüfer
(Austrian Chartered Accountant)
This report is a translation of the original report in German, which is solely valid. The consolidated financial statements
together with our auditor's opinion may only be published if the consolidated financial statements and the group
management report are identical with the audited version attached to this report. Section 281 Paragraph 2 UGB (Austrian
Commercial Code) applies.
224 Annual Financial Report 2023
V
IENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
225
Management
report
to th e Annual financial statements
in accordance with the Austrian
Commercial Code (
UGB)
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226
Annual Financial Report 2023
ADDED VALUE THROUGH DIVERSITY
Together, the VIG companies form the leading insuran
ce
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 32 million customers with the goal of further
expanding the Group’s market leadership.
We live and breathe the core value of diversity. This is
reflected in our decentralised structure and the great scope
for decision-making enjoyed by the local insurance
companies. It makes us flexible and innovative, and
therefore resilient. Our resilience and stability are essential
for creating sustainable value.
It has always been clear to VIG that diversity and solidarity
go hand in hand. This is what unites us and makes us a
Group. Because a Group is more than the sum of its
companies. Diversity means working autonomously while
supporting each other as best we can. The newly created
CO
3
(Collaboration, Cooperation and Communication)
division is taking up this aspiration with the aim of
strengthening collaboration within our Group.
ORGANISATION AND OBJECTIVES
VIG Holding uses a number of control units, e.g. Ris
k
Management, Asset Management, Planning and
Controlling, and Strategy, to maintain close contact with the
Group companies and to act as an interface and promoter
of the implementation of local entrepreneurship. An
intensive collaborative exchange between all Group
companies and their around 29,000 employees in 30
countries is a key element of local entrepreneurship through
which the interests of the individual companies and the
Group as a whole are pursued.
In the VIG 25 strategic programme, sustainable value
creation and the expansion of the leading position in the
CEE region were formulated as specific objectives for the
entire Group. A key driver in achieving these objectives is
the integration of sustainable approaches to society and the
environment into the Group’s business and operating model.
To this end, sustainability issues are pursued in six spheres
of activity, namely asset management, underwriting,
operations, employees, customers and society.
VIG 25 STRATEGIC PROGRAMME
The VIG 25 strategic programme was developed for the
period from 2021 to 2025.
In response to current trends and developments and their
impact on the insurance business, clear requirements for
the Group have crystallised: Sustainability must be further
strengthened as a cornerstone and integral part of the
business model, efficiency and productivity must be further
promoted with the support of digitalisation, new ways of
addressing and retaining customers must be developed,
and an understanding of risk provision must be promoted
across the board.
STRONG CAPITAL RESOURCES
VIG Insurance Group’s strong capital resources conti
nue to
be an important asset for the Group. The solvency ratios of
VIG Insurance Group and VIG Holding were 269% and 398%
respectively at the end of 2023, demonstrating that their
solvency is stable even in times of high inflation. 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
227
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 2023 (and in the same period in
2022):
2023
2022
Direct business
Indirect business
Total
Direct business
Indirect business
Total
in EUR '000
Premiums written 313,908
1,355,850
1,669,758
250,734
1,248,584
1,499,318
Net earned premiums 299,672
1,304,678
1,604,350
238,564
1,206,720
1,445,284
Expenses for claims and insurance
benefits 217,324
885,959
1,103,283
215,455
737,446
952,901
Administrative expenses 22,997
448,737
471,734
18,472
440,611
459,083
Reinsurance balance -50,706 -10,244 -60,950 -1,681 -5,991 -7,672
The reinsurance balance is composed of net earned reinsurance premiums, effective reinsurance claims and reinsurance
commissions.
FINANCIAL PERFORMANCE INDICATORS
Premium income
V
IG Holding generated a total premium volume of
EUR 1,669.76 million in 2023, representing a year-on-year
increase of 11.4%. Direct premiums written (corpo-
rate business) increased year-on-year by 25.2% to
EUR 313.91 million. Premium income from indirect busi-
ness (assumed reinsurance) was EUR 1,355.85 million, 8.6%
higher than the previous year. The value of assumed
reinsurance includes EUR 25,016,000 (EUR 21,484,000)
for health insurance and EUR 103,000 (EUR 16,174,000)
for life insurance.
VIG Holding retained EUR 1,520.54 million (2022:
EUR 1,356.82 million) of the premiums written. In 2023, EUR
149.21 million (2022: EUR 142.50 million) was ceded to
reinsurers. Gross earned premiums were EUR 1,604.35 mil-
lion (2022: EUR 1,445.28 million). Net earned premiums
increased by EUR 150.94 million to EUR 1,456.44 million.
Expenses for claims and insurance benefits
Gross expenses for claims and insurance benefits were
EUR 1,103.28 million in 2023 (2022: EUR 952.90 million).
EUR 217.32 million of this amount was attributable to
corporate business (2022: EUR 215.46 million), EUR 1.87
million more than the previous year.
The gross claims ratio for direct business (excluding health
and life insurance) decreased from 89.6% to 71.9%.
Expenses for claims and insurance benefits for assumed
reinsurance rose 18.5% to EUR 850.32 million. The gross
claims ratio for indirect business was 66.5% (2022: 61.2%).
After deducting reinsurance of EUR 81.91 million (2022:
EUR 126.15 million), expenses for claims and insurance
benefits were EUR 985.73 million (2022: EUR 806.62 million).
Administrative expenses
In 2023, administrative expenses were EUR 471.73 million,
2.8% higher than the previous year (2022: EUR 459.08 mil-
lion). This change was primarily due to an increase in
commissions for indirect business. EUR 23.00 million of the
administrative expenses were for the corporate business
and EUR 448.74 million for the reinsurance business. After
reinsurance commissions for ceded reinsurance business,
EUR 466.68 million in administrative expenses remained for
VIG Holding. This was an increase of EUR 13.57 million
compared to the previous year.
Management report 2023
228
Annual Financial Report 2023
Combined ratio
VIG Holding’s combined ratio was 101.2% in 2023 (2022:
98.7%), and 95.0% for direct business (corporate business)
(2022: 95.8%). 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 378.91 million
(2022: EUR 159.26 million). Impairment of shares in
affiliated companies was EUR 164.41 million. (2022:
EUR 212.89 million).
2023
2022
in EUR '000
Land and buildings 8,537
10,891
Investments in affiliated companies
and participations
472,045
326,510
Other investments 47,988
-14,065
Total income (net) 528,570
323,336
Other investment and interest income 83,741
46,644
Expenses for asset management -138,527 -93,355
Interest expenses -89,851 -96,934
Other investment expenses -5,021 -20,431
Investment profit according to
income statement 378,912
159,260
R
esult from ordinary activities
VIG Holding earned a result from ordinary activities of
EUR 348.04 million in 2023 (2022: EUR 169.44 million).
Investments
As of 31 December 2023, investments, including liquid
assets, were EUR 6,855.71 million (2022: EUR 7,191.80
million).
Deposits were EUR 839.87 million in 2023 (2022:
EUR 1,218.47 million). Of the investments at the end of
2023, 76.3% (2022: 68.0%) were shares in affiliated
companies and participations, 8.0% (2022: 9.6%) were
bonds (including pension funds), 0.1% (2022: 0.0%) were
funds, 2.3% (2022: 2.1%) were loans, 2.6% (2022: 2.1%)
were land and buildings, and 10.7% (2022: 18.2%) were
bank balances and cash on hand.
Detailed information is provided on pages 249 and 250 of
the annual financial statements.
BREAKDOWN OF INVESTMENTS IN 2023
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
229
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 successfully 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. The acquisition of the Turkish AEGON
insurance company was closed in April 2022 and the
acquisition of the Aegon companies in Poland and Romania
was also completed in May 2023. In November 2023, VIG
increased its indirect participation in AEGON Hungary and
UNION Versicherung from 55% to 90%.
Underwriting provisions
Underwriting provisions were EUR 1,789.01 million as of 31
December 2023 (2022: EUR 1,633.66 million). This corre-
sponds to a year-on-year increase of 9.5%, which was
primarily due to provisions for outstanding claims arising from
direct business. The reinsurers’ share was EUR 243.51 million
(2022: EUR 255.29 million).
Solvency ratio
VIG Holding’s solvency ratio of 398% 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 2023 reporting year, VIG Holding is publishi
ng a
sustainability report that addresses the sustainability-related
issues for the Group. This report can be downloaded free
of charge at group.vig/en/sustainability/downloads/. A few
examples of VIG Holding’s own initiatives are presented
below.
Social involvement – Example: Social Active Day
Since 2011, an annual fixture for many employees has been
Social Active Day, when they can use one working day for
social or sustainable projects. 196 people from VIG Holding
took part in the campaign in 2023. The involvement can
take many forms, including helping in the social market,
cooking for people in need, helping serve soup, visiting
nursing and retirement homes, refugee shelters and
neighbourhood centres, gardening and collecting rubbish.
The common thread running through these activities is
employees offering their time, help and energy to benefit
fellow human beings and the environment.
Commitment to peaceful coexistence – Examples: Global Peace
Photo Award, Gustav Mahler Youth Orchestra and "mirno
more" sailing project
VIG Holding is committed to promoting cooperation and
understanding across borders in many of its projects.
Among other things, this involves tolerance, respect and
dialogue between different cultures.
Global Peace Photo Award
What does peace look like? More than 19,000 photos fro
m
133 countries tried to answer this question. Five of them
were honoured by the jury of the Global Peace Photo Award
2023. In addition, 14-year-old Barbare Chikviladze from
Georgia was awarded the "Children’s Peace Image of the
Year 2023". VIG Holding has been one of the main partners
of the award since 2022, alongside the Austrian Parliament
and other organisations. Before this, the Company already
sponsored the prize in the children and youth category. The
aim of the initiative is to give hope and recognise efforts to
promote peace.
Gustav Mahler Youth Orchestra
VIG Holding has supported the Gustav Mahler Youth
O
rchestra (GMJO) for many years. Founded by Claudio
Abbado in Vienna in 1987 and based there ever since, the
orchestra is recognised as the world’s leading youth
orchestra and is also a peace project as, in addition to
promoting young musicians, it also helps them play music
with their colleagues from other countries. Since 1992, the
orchestra has been open to musicians up to the age of 27
from all over Europe and guarantees more than 2,500
candidates a year a level playing field and absolutely equal
opportunities through auditions in around 30 European
cities.
"Mirno more" sailing project
The world’s largest socio-educational sailing projec
t
brought together around 800 children and young people on
95 sailing ships in 2023, including those from children’s
homes, SOS Children’s Villages and therapy centres. Mirno
more was originally set up to bring young people affected
230
Annual Financial Report 2023
by the wars in former Yugoslavia together peacefully
. VIG
Holding sponsored this peace project once again in 2023.
Employees
VIG Holding offers many attractive prospects and develop-
ment opportunities for its employees. It offers a broad range
of training and advanced training courses and an attractive
working environment. Clearly defined competences in the
VIG Talent Toolset form the basis for the Company’s many
training programmes, which support both the personal
development of employees and the dynamic advancement
of the VIG Group. With a dedicated career path for experts,
employees are offered another development option as an
alternative to management careers.
In VIG Holding, the annual review is organised as a "VIG
Talk". 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. In the "Talent Talk", employees reflect on the VIG
Talent Toolset and discuss their 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. VIG deliberately focuses
on "life balance" in the Company. The term is intended to
emphasise – even more so than "work/life balance" – that
work and life are inseparable. 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. They are also aimed at strengthening
employee loyalty and VIG’s image as an attractive employer.
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 2023, 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 be ensured. These
objectives are pursued using strategic HR partnerships, a
value-driven working environment, and executives and
employees who are fit for the future.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
231
There were an average of 326 employees, including Man-
aging Board members, in 2023.
Research and development
Although VIG companies do not perform any research
activities as defined in Section 243 (3) (2) UGB, they
contribute their expertise to the development of insurance-
specific software models. VIG Holding and – for projects –
the VIG companies also cooperate with Digital Impact Labs
Leipzig, Plug & Play and VENPACE, a start-up initiative
(investment and corporate building) that is located in
Germany and is jointly funded with other insurance
companies, in order to identify technological developments
in the market more quickly and internalise them if necessary.
viesure was also established for this purpose as an internal
"innovation hub" focusing mainly on Austria. Since
December 2022, investment has also been made in the
APEX Deep Tech Fund, which focuses on tech start-ups,
and VIG offers support in identifying and researching
innovations at an early stage in order to use these in the
Group’s business model to the benefit of its customers. An
example of such innovation is the use of sensors and
satellite technology as an early warning system for potential
forest fires. 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. Sum-
mary of significant accounting policies) for information on
the financial instruments used.
232
Annual Financial Report 2023
RISK REPORT
The risk management system is integrated into VIG Holding’s organisational structure. The following chart shows the units
that play a central 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:
• Develop 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
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
Group and solo level.
The main responsibilities of the department include
recording, assessing and managing the overall risk profile
of the Group and calculating solvency. The department
provides a Group-wide risk aggregation solution for this
purpose with extensive reporting and partial modelling
approaches for calculating solvency capital. 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 in
updating the corporate risk strategy, further developing the
risk organisation and other risk management topics.
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.
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Group Treasury & Capital Management
The department reports to Managing Board member
Gerhard Lahner. The department’s main tasks include
managing liquidity, planning and conceptualising capital
raising and capital management, including the execution of
proprietary capital market transactions, along with
managing the portfolio of subordinated capital bonds and
other debt instruments.
Subsidiaries and M&A
The department reports to Chairman of the Managing
Board Hartwig Löger. The department generally safeguards
the interests of the Company with regard to all participations
and is responsible for the provision and preparation of
information on participations and investment projects,
tailored to the respective decision-making situation.
Actuarial Services
The department reports to the Managing Board. The
management of the department performs the Actuarial
function required by Solvency II. The department is
therefore responsible, in particular, for the tasks associated
with the Actuarial function. The department also deals with
actuarial modelling in Prophet for the life and health
insurance business and ResQ for the non-life business. The
models provide cash flow projections for the valuation of
underwriting provisions in accordance with Solvency II and
IFRS 17. The department provides support for analyses of
IFRS 17 reserves as well as actuarial collaboration and
professional networking.
Compliance
The department reports to the Managing Board. The
department coordinates and supports all companies in the
VIG Insurance Group and their compliance departments in
connection with compliance matters. In addition, the
Compliance function required under Solvency II is
performed by the management of this department. The
department is therefore responsible, in particular, for the
tasks associated with the Compliance function.
Reinsurance
The department reports to Deputy Chairman of the Man-
aging Board Peter Höfinger. The department coordinates
and assists all companies in the 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.
VIG IT
The department reports to Managing Board member
Gerhard Lahner. The department is responsible for man-
aging IT at VIG Holding level and comprises the Group
Information & Cyber Security, Procurement, Architecture &
Innovation, International Bank Cooperation Management
and IT Strategy & Governance departments.
Planning and Controlling
The department reports to Managing Board member Liane
Hirner and is an important part of the integrated risk man-
agement approach. 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 its
insurance company participations. Regular monthly pre-
mium reports, quarterly reports for each company (aggre-
gated at the country and VIG Insurance Group level) and
cost reports are prepared.
Process & Project Management
The department reports to Managing Board member
Gerhard Lahner and works to ensure clarity, transparency
and understanding of work processes so that the individual
companies in the VIG Insurance Group and their employees
are better placed to achieve their goals. To this end,
coordination and support is provided in the three main areas
of project management, process management and
productivity management.
Internal Audit
The department reports to the Managing Board. The
Internal Audit department regularly monitors operating and
234
Annual Financial Report 2023
business processes, the internal control system of a
ll
operational business areas, including compliance with legal
requirements, and the functionality and adequacy of risk
management. The management of the department per-
forms the Internal Audit function required by Solvency II.
Finance and Accounting
The department reports to Managing Board member Liane
Hirner. One of the main tasks of the department is to
prepare the annual financial statements of VIG Holding. The
department is therefore responsible for the Company’s
bookkeeping and accounting and is also responsible for
reporting the figures.
RISK PROFILE
VIG Holding’s risk profile is broken down into the 10
main
risk categories below:
Market risk
describes the risk of losses due to changes in
market prices. Fluctuations in interest rates, share prices
and exchange rates and changes in the market value of real
estate and participations can have a negative effect on the
value of investments and liabilities.
Market risk is by far VIG Holding’s most important risk
exposure, in particular the equity and currency risk resulting
from its primary activity, holding participations in insurance
companies.
In addition to demographic risks,
life underwriting risk
also
includes negative effects due to changes in cancellation
behaviour and cost risks and covers the following sub-
modules: mortality, longevity, disability, costs, revision and
cancellation as well as disaster risk.
Non-life underwriting risk
is the risk of insured losses and
costs exceeding income. It essentially consists of the
following components:
• Risk from extreme loss events, particularly natural
disasters
• Risk from unprofitable contracts due to inappropriate
premium structures
• Risk from claims that have already occurred but are not
sufficiently known or reserved
• Cancellation risk (decline in the contribution margin
following a sharp fall in the portfolio)
• Cost risk
Health underwriting risk
is broken down into health
underwriting risk by type of non-life insurance and by type
of life insurance, depending on the structure of the contract.
The risk by type of life insurance is not relevant for VIG
Holding. The health underwriting risk by type of non-life
insurance corresponds to the accident insurance
underwritten through reinsurance and includes the
traditional non-life underwriting risks. Losses can arise from
cumulative events with a large number of fatalities and
injuries, for example, but these are reinsured accordingly.
Credit risk/counterparty default risk
is the risk of a loss or
an unfavourable change in the value of assets and financial
instruments resulting from the unexpected default of a
counterparty or debtor. Credit risk is present in investments
such as bonds, loans and deposits, as well as in other
underwriting and non-underwriting receivables and cash
deposits at banks.
Liquidity risk
is the risk that necessary funds can only be
provided at additional cost in order to fulfil short and long-
term payment obligations that fall due. This includes losses
associated with an asset/liability mismatch, for example.
Operational risk
describes the risk of losses in connection
with business operations. These are caused by faulty
internal processes, inadequate controls, incorrect estimates
or faulty models. Examples of operational risks are fraud by
third parties, failure of IT systems and human error.
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Intangible asset risk
reflects the risk of loss or an unfa-
vourable change in the value of intangible assets.
Strategic risk
includes unfavourable business performance
as a result of incorrect business and investment decisions,
poor communication and implementation of corporate
goals and a company’s inability to adapt to the economic
environment. Conflicting business objectives are also a
strategic risk.
Reputation risk
is the risk of negative changes in business
due to damage to a company’s reputation or that of its
brands. Reputational damage can shake the confidence of
customers, investors or the company’s own employees in
the business and consequently lead to financial losses.
Causes include incorrect advice when selling products,
poor customer service, misinformation to investors,
negative media coverage, particularly in connection with
sustainability or other non-financial risks, and reputational
damage that spreads from one company to another.
RISKS IN CONNECTION WITH THE GEOPOLITICAL SITUATION
AND THE CURRENT MACROECONOMIC ENVIRONMENT
Despite the ongoing war of aggression in Ukraine, the
overall economic situation calmed down in the year under
review. However, there was a latent potential threat to the
macroeconomy due to the conflict over Taiwan, which was
exacerbated by the terrorist attack on Israel in October and
the subsequent escalation in the Middle East.
Inflation slowed significantly in almost all markets in which
VIG operates, but nevertheless remained at a high level. The
future development of the financial markets and the
economy in general continues to be characterised by a high
level of uncertainty, making this one of the most significant
risks for VIG.
HANDLING OF SUSTAINABILITY RISKS
Sustainability risks are both risks to which the Company is
exposed (outside-in perspective) and risks that have a
potential negative impact on society or the environment due
to VIG’s business activities (inside-out perspective). These
risks have always been implicitly or, in some cases, explicitly
taken into account as part of risk management.
In order to ensure a structured approach to identifying
sustainability risks in the Group and to adequately reflect both
perspectives, a Group-wide risk catalogue has also been
created explicitly with regard to sustainability risks, taking into
account the guidelines of the Austrian Financial Market
Authority on dealing with sustainability risks. The VIG
insurance companies regularly review this risk catalogue for
completeness as part of a standardised Group risk man-
agement process and supplement it if necessary. The
catalogue therefore also forms the basis for the consideration
of sustainability risks within the existing risk management
processes for assessing, analysing and managing the
Group’s risks. In addition, the handling of sustainability risks
within risk management was also explicitly addressed in the
internal (risk management) guidelines.
In the year under review, the sustainability risks relevant to
the Group were again identified and assessed in the
individual VIG insurance companies and at the insurance
Group level based on the risk profile described above. The
results were recorded in the Group ORSA report. Overall,
the analysis showed that VIG’s sustainability risks are
currently mainly at a low to medium level. However, it is
expected that these risks will continue to become more
relevant, not least due to the increasing importance of this
topic. The process described above for the Group-wide
identification and assessment of sustainability risks will be
significantly expanded as part of the preparations for the
new reporting obligations under the ESRS (European
Sustainability Reporting Standards).
236
Annual Financial Report 2023
REGULATORY FRAMEWORK
The VIG Insurance Group is subject to (insurance)
regulatory requirements in Austria and abroad. These
requirements govern, among other things:
• the capital adequacy of insurance companies and
insurance groups,
• the admissibility of investments to secure underwriting
provisions,
• licences of the various insurance companies in the VIG
Insurance Group,
• marketing activities and the sale of insurance contracts,
and
• policyholder cancellation rights.
Changes to the legal framework may require reorganisation
and thus result in increased costs.
RISKS FROM ACQUISITIONS AND MERGERS
In the past, VIG Holding has directly and indirectly acquired
a number of companies in Central and Eastern Europe or
acquired participations in them. Mergers of subsidiaries are
considered if the resulting synergy effects are greater than
the advantages of a diversified market presence.
Acquisitions and mergers often entail challenges in terms of
corporate management, organisation, processes and
financing, such as:
• the need to integrate the infrastructure of the acquired
or merging company, including management information
systems and systems for risk management and
controlling,
• the regulation of open legal or regulatory issues and the
associated legal and compliance risks arising from the
acquisition or merger,
• the integration of marketing, customer service and
product offerings,
• the integration of different corporate and management
cultures, and
• the harmonisation of business and reporting processes
and the consideration of Group requirements.
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 respon-
sibility of the Managing Board to establish an effective control
system and appropriate risk management, to the respon-
sibility 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 opera-
tional 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.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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• Existence: all reported assets and liabilities exist on the
balance sheet date.
• Accuracy: all transactions recorded in the financial
statements apply to the same period as the financial
statements.
• Measurement: all asset, liability, income and expense
items have been recognised at fair value in accordance
with accounting requirements.
• Ownership: rights and obligations are properly
recognised.
• Disclosure: all financial statement items are correctly
presented and disclosed.
The financial statement process includes the aggregation of
all data from accounting and upstream processes for the
annual financial statements. The financial statements are
submitted to the appropriate area head for review and
further consultation with the Managing Board. The
Managing Board provides final approval of the financial
statements. The auditor takes the internal control system
into account during the financial statement audit to the
extent that it is relevant to preparation of the annual financial
statements.
Effectiveness and controls
To ensure the effectiveness of the internal control system,
VIG Holding established an annual evaluation and docu-
mentation 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 com-
pliance.
Optimisation measures are introduced into the control
environment based on the findings, and their imple-
mentation is also monitored and reported by the re-
sponsible units. The results of this process are also used
later by the internal audit department as a basis for its
subsequent audit of the accounting process and the control
environment established there.
DISCLOSURES IN ACCORDANCE WITH SECTION 243A
AND SECTION 243 (3) (3) UGB
Detailed information on the disclosures in accordance with
Section 243a and Section 243 (3) (3) UGB is available in the
notes to the financial statements on page 256.
DISCLOSURES ON OUTSOURCING IN ACCORDANCE
WITH SECTION 156 (1) (1) IN CONJUNCTION WITH
SECTION 109 VAG
The disclosures on outsourcing in accordance with Section
156 (1) (1) in conjunction with Section 109 VAG are ex-
plained in more detail below:
VIG Holding
For VIG Holding, it was decided to outsource IT services to
internal and external IT service providers. In 2023, there
were outsourcing agreements approved by the supervisory
authorities with IBM Austria (Internationale Büromaschinen
Gesellschaft m.b.H.), the internal Group IT system provider
twinformatics GmbH and VIG IT-Digital Solutions GmbH
("VIG IT-DS"), each based in Austria.
VIG IT-DS was founded by VIG Holding in order to focus
even more strongly on IT services to be provided through-
out the Group and to have these services provided by a
company that focuses on this area. The outsourcing
agreement concluded with VIG IT-DS has been in place
since 1 January 2023 and transfers final responsibility for all
VIG solutions (SAP NewGL, IFRS 9/17, Readsoft and some
smaller supporting applications) to VIG IT-DS (with twin-
formatics as the main sub-service provider). twinformatics
GmbH has also assumed overall responsibility for all IT
services for the Austrian VIG insurance companies (with the
exception of the services transferred to VIG IT-DS) and
concludes any necessary sub-outsourcing agreements in
accordance with legal and regulatory requirements and
after consultation with the VIG insurance companies. The
outsourcing agreement with IBM Austria ended on 28
February 2023. In addition to these outsourcing agree-
ments, VIG Holding has not outsourced any critical or
important functions or business activities.
238
Annual Financial Report 2023
OUTLOOK
Economic outlook
F
or the eurozone, the Central and Eastern Europe region
and also for Austria, a further continuous fall in inflation and
interest rates is expected, accompanied by a gradual
improvement in external demand, but also in consumer
sentiment and hence in domestic demand; the basis for a
moderate economic recovery in 2024. A further flattening of
the inflation rate in 2024 is seen as the main risk factor with
regard to inflation.
The first modest signs of growth from industry are expected
for the eurozone in the course of 2024, although growth in
the first quarter of 2024 is still expected to be rather weak.
However, this recovery in industry could be delayed by
persistently high inventories in some sectors. Private
consumption should provide another mildly positive boost
in 2024. Positive real wage growth, which is expected for
the first time in two years, combined with a fundamentally
robust labour market could be the main drivers here.
Despite the somewhat stagnant development in 2023,
there was no increase in the unemployment rate in the
eurozone, apparently due to a general labour shortage as a
result of demographic change.
Overall, Erste Group analysts expect real GDP growth to
accelerate to 0.7% in 2024 compared to the previous year.
If this recovery gains further traction in the second half of
2024, an increase in growth to 1.1% should be possible in
2025.
Inflation in the eurozone should fall to 2.5% in 2024.
Depending on how energy prices in particular develop, a
more volatile inflation trend is possible over the course of
the year.
In Austria, too, an expected easing of inflationary pressure
should generally impact positively on real incomes and
therefore have a moderately positive effect on consumer
demand in 2024. In addition, foreign trade should gradually
improve and support economic growth in 2024. This means
that a modest economic upturn in real GDP growth of +0.6%
is within reach for Austria in 2024. Despite the risk of some
volatility in energy prices, Austrian inflation should continue
to fall in 2024 as pressure from these prices eases. Inflation
in the services sector, supported by wage increases, should
keep core inflation at a high level for a while longer. This
means that Harmonised Index of Consumer Prices (HICP)
inflation is expected to fall significantly to 3.5% in 2024.
A gradual recovery is also expected in Central and Eastern
Europe in 2024 (real GDP growth in CEE8 should accelerate
to 2.4% year-on-year). Recent improvements in sentiment
indicators underpin this expectation. The Economic Sen-
timent Indicator (ESI) has steadily recovered over the course
of 2023 and therefore also supports the expectation of
improving private demand in 2024. Real wage growth,
falling inflation and an easing of monetary policy, which has
already begun in the CEE region, are likely to increase
household spending.
On the other hand, the high cost of living, continued
uncertainty and a strengthening of the savings rate to
replenish savings could slow the pace of recovery.
Investment growth in the region should be supported by the
continued inflow of EU funds, as the funds from the
Recovery and Resilience Fund cushion the transition
between EU budget periods, which would normally have
been associated with lower investment activity. The addition
of REPowerEU funds will significantly increase the funds
available. The main risk for the region’s expectations is
weaker development in Germany as the region’s main
export destination.
In 2024, the pace of disinflation is also likely to slow
significantly in the Central and Eastern Europe region due
to the diminishing effect of external factors (oil and food
prices). Demand pressure is also expected to remain high
due to the tight labour market, as nominal wage growth
(including a double-digit increase in minimum wages) will
have an inflationary effect. Overall, inflation in most CEE
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
239
countries is expected to remain well above the inflation
target throughout 2024 with a regional average of 4.5%. In
a year-on-year comparison, the Czech Republic should
come closest to this target at 2.4%, while Romania still has
the longest way to go at 5.5%.
Outlook for VIG Insurance Group
As a market leader in Central and Eastern Europe, the
Vienna 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 lasting value and achieving
sustainability targets in the six spheres of activity of
investment, underwriting, office operations, employees,
customers and society, one of the core objectives of the
programme is to expand the leading market position in
Central and Eastern Europe with the ambition of achieving
at least a top 3 market position in every CEE market except
Slovenia. The successful takeover of the companies in
Poland, Romania, Türkiye and Hungary that were formerly
part of the Dutch Aegon Group is a major step in this
direction. This took VIG to number one in the Hungarian
market.
A range of 150 to 200% is still defined for the VIG Group
solvency ratio, without taking into account transitionals for
underwriting provisions used by some individual Group
companies.
As part of the new dividend policy, which sets the previous
year’s dividend as the minimum dividend and provides for a
continuous increase depending on the operating earnings
situation, the Managing Board is recommending to the
Company’s boards that the dividend be increased from
EUR 1.30 to EUR 1.40 per share for financial year 2023.
This corresponds to an increase of 7.7% compared to the
previous year.
The Vienna Insurance Group has so far managed the effects
of the challenging geopolitical and economic environment
very well and continues to focus on the success factors of
continuity, stability and diversity. On this basis, a positive
earnings performance is also expected for financial year
2024 despite the volatile environment. The management of
VIG is therefore pursuing the ambition of achieving a result
before taxes within a range of EUR 825 to EUR 875 million
for financial year 2024.
240
Annual Financial Report 2023
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. Together with the insurance companies, VIG Holding will also continue to focus on the
strategic direction of the "VIG 25" strategic programme and aim to optimise processes and profitability.
Appropriate measures will continue to be implemented and coordinated to achieve these goals.
In addition, the Group’s attractiveness as an employer with an international background will be increased and sustainable
business operations for people and the environment will be further expanded.
Vienna, 26 March 2024
The Managing Board:
Hartwig Löger
General Manager (CEO),
Chairman of the Managing Board
Peter Höfinger
Deputy General Manager,
Deputy Chairman of the Managing Board
Liane Hirner
CFRO, Member of the Managing Board
Gerhard Lahner
COO, Member of the Managing Board
Gábor Lehel
CIO, Member of the Managing Board
Harald Riener
Member of the Managing Board
VI
ENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
241
Annual
financial
statements
in accordance with the Austrian
Commercial Code (UGB)
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242
Annual Financial Report 2023
BALANCE SHEET AS OF 31 DECEMBER 2023
Assets 31.12.2023
31.12.2022
in EUR
in EUR '000
A. Intangible assets 22,627,624.26
24,184
I. Other intangible assets 22,627,624.26
24,184
B. Investments 7,312,049,832.18
7,437,862
I. Land and buildings 175,339,628.26
155,279
II. Investments in affiliated companies and participations 5,598,242,855.25
5,385,313
1. Shares in affiliated companies 5,205,632,067.08
4,862,714
2. Bonds and other securities of affiliated companies and loans to affiliated companies 368,394,716.98
498,382
3. Participations 24,216,071.19
24,216
III. Other investments 698,593,094.73
678,804
1. Shares and other non-fixed-interest securities 9,124,173.12
6,521
2. Bonds and other fixed-interest securities 334,719,107.49
331,285
3. Mortgage receivables 1,932,000.01
2,018
4. Other loans 955,119.34
941
5. Bank deposits 351,862,694.77
338,040
IV. Deposits on assumed reinsurance business 839,874,253.94
1,218,466
C. Receivables 549,871,205.91
328,542
I. Receivables from direct insurance business 115,934,380.62
89,577
1. from policyholders 29,049,127.50
23,595
2. from insurance intermediaries 0.00
129
3. from insurance companies 86,885,253.12
65,852
II. Receivables from reinsurance business 242,829,383.06
69,070
III. Other receivables 191,107,442.23
169,896
D. Pro rata interest 14,486,723.15
12,940
E. Other assets 386,837,279.57
974,104
I. Tangible assets (not incl. land and buildings) 3,299,864.33
1,697
II. Current bank balances and cash on hand 383,535,781.09
972,406
III. Other assets 1,634.15
1
F.Deferred charges 15,480,843.70
13,306
Total ASSETS 8,301,353,508.77
8,790,939
Annual financial statements
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
243
BALANCE SHEET AS OF 31 DECEMBER 2023
Liabilities and shareholders' equity 31.12.2023
31.12.2022
in EUR
in EUR '000
A. Shareholders' equity 4,044,934,626.07
3,842,450
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 1,190,000,000.00
1,020,000
IV. Risk reserve 57,967,957.00
51,899
V. Net retained profits 396,846,778.80
370,432
of which brought forward 204,031,503.00
178,352
B. Subordinated liabilities 1,214,413,000.00
1,684,400
I. Hybrid bond 300,000,000.00
300,000
II. Supplementary capital bond 914,413,000.00
1,384,400
C. Underwriting provisions – retention 1,789,010,248.44
1,633,661
I. Unearned premiums 171,548,717.49
149,271
1. Gross 180,165,722.21
156,506
2. Reinsurers' share -8,617,004.72 -7,234
II. Mathematical reserve 18,910,977.13
58,167
1. Gross 18,910,977.13
58,167
III. Liability for incurred claims 1,563,586,063.25
1,395,328
1. Gross 1,798,474,753.71
1,643,383
2. Reinsurers' share -234,888,690.46 -248,055
IV. Provision for profit-unrelated premium refunds 4,283,639.57
10,656
1. Gross 4,283,639.57
10,656
V. Equalisation provision 25,835,851.00
16,335
VI. Miscellaneous underwriting provisions 4,845,000.00
3,904
1. Gross 4,845,000.00
3,904
D. Non-underwriting provisions 196,733,609.62
196,946
I. Provision for severance pay 1,121,866.00
1,087
II. Provision for pensions 71,641,481.00
69,512
III. Tax provisions 3,500,357.14
3,500
IV. Other provisions 120,469,905.48
122,848
E. Other liabilities 1,055,408,762.36
1,432,750
I. Liabilities from direct insurance business 151,756,539.66
158,791
1. to policyholders 16,016,286.54
5,753
2. to insurance intermediaries 156,227.49
4,687
3. to insurance companies 135,584,025.63
148,351
II. Liabilities from reinsurance business 61,307,965.77
12,131
III. Bond liabilities (excl. supplementary capital) 503,825,136.50
503,836
IV. Liabilities to banks 227,964,208.51
227,965
V. Other liabilities 110,554,911.92
530,028
F.Deferred charges 853,262.28
732
Total LIABILITIES AND SHAREHOLDERS' EQUITY 8,301,353,508.77
8,790,939
244
Annual Financial Report 2023
INCOME STATEMENT FOR THE FINANCIAL YEAR FROM 1 JANUAR
Y TO 31 DECEMBER 2023
Underwriting account 2023
2022
in EUR
in EUR '000
1. Net earned premiums 1,456,437,455.88
1,305,496
Premiums written
1,520,543,885.65
1,356,823
Gross 1,669,758,240.10
1,499,318
Ceded reinsurance premiums -149,214,354.45 -142,495
Change in unearned premiums -64,106,429.77 -51,327
Gross -65,407,637.31 -54,035
Reinsurers' share 1,301,207.54
2,708
2. Investment income from underwriting business 58,984,127.03
36,974
3. Other underwriting income 944,561.79
1,205
4. Expenses for claims and insurance benefits -1,021,372,343.70 -826,754
Payments for claims and insurance benefits -841,889,061.44 -695,675
Gross -936,280,078.23 -748,617
Reinsurers' share 94,391,016.79
52,943
Change in provision for outstanding claims -179,483,282.26 -131,080
Gross -167,002,605.25 -204,284
Reinsurers' share -12,480,677.01 73,204
5. Increase in underwriting provisions -941,000.00 -14,801
Mathematical reserve 0.00
-13,752
Gross 0.00
-13,752
Other underwriting provisions -941,000.00 -1,049
Gross -941,000.00 -1,049
6. Reduction of underwriting provisions 14,939,139.68
0
Mathematical reserve 14,939,139.68
0
Gross 14,939,139.68
0
7. Expenses for profit-unrelated premium refunds 6,371,884.43
4,636
Gross 6,371,884.43
4,636
8. Administrative expenses -466,681,311.74 -453,115
Acquisition expenses -466,397,122.81 -454,555
Other administrative expenses -5,336,819.32 -4,528
Reinsurance commissions and profit commissions from reinsurance cessions 5,052,630.39
5,968
9. Other underwriting expenses -6,883,880.05 -3,198
10. Change to equalisation provision -9,500,426.00 -2,318
Underwriting result 32,298,207.32
48,124
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
245
INCOME STATEMENT FOR THE FINANCIAL YEAR FROM 1 JANUARY TO 31 DECEMBER 2023
2023
2022
in EUR
in EUR '000
Underwriting result 32,298,207.32
48,124
Non-underwriting account:
1. Income from investments and interest income 802,834,996.49
634,623
Income from participations 413,817,191.93
411,014
Income from land and buildings 13,313,899.80
13,729
Income from other investments 50,056,599.82
31,963
Income from appreciations 234,711,373.11
90,968
Income from the disposal of investments 7,195,043.44
40,304
Other investment and interest income 83,740,888.39
46,644
2. Expenses for investments and interest expenses -423,922,612.99
-475,363
Expenses for asset management -138,526,346.18
-93,355
Depreciation of investments -171,488,550.20
-243,692
Interest expenses -89,851,232.87
-96,934
Losses from the disposal of investments -19,035,848.48
-20,951
Other investment expenses -5,020,635.26
-20,431
3. Investment income transferred to the underwriting account -58,984,127.03
-36,974
4. Other non-underwriting income 25,900,863.75
13,334
5. Other non-underwriting expenses -30,084,261.67
-14,303
6. Result from ordinary activities 348,043,065.87
169,442
7. Taxes on income 20,841,657.93
42,235
8. Profit for the period 368,884,723.80
211,676
9. Transfer to reserves -176,069,448.00
-19,596
Transfer to free reserves -170,000,000.00
-13,285
Transfer to risk reserve -6,069,448.00
-6,312
10. Profit for the year 192,815,275.80
192,080
11. Retained profits brought forward 204,031,503.00
178,352
Net retained profits 396,846,778.80
370,432
246
Annual Financial Report 2023
NOTES TO THE FINANCIAL STATEMENTS FOR 2023
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The annual financial statements as of 31 December 2023 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 2023.
The
precautionary principle
was satisfied in that only profits that had been realised as of the balance sheet date were
reported and all identifiable risks and impending losses were recorded in the balance sheet.
Figures are generally shown in thousands of euros (EUR ‘000). Calculation differences may arise when rounded amounts
are summed automatically. Figures from the previous year are indicated as such or shown in parentheses.
Intangible assets
were reported at cost less amortisation based on a useful life of two to twelve years.
Land
is measured at cost,
buildings
at cost less depreciation and any write-downs. As a rule, repair costs for residential
buildings are spread over 15 years starting as of 2016.
Equities
and other non-fixed interest
securities
and
shares in affiliated companies
are valued according to the strict lower-of-
cost-or-market principle (strenges Niederstwertprinzip). Bonds, other fixed-income securities and
participations
are valued
using the less strict lower-of-cost-or-market principle (gemildertes Niederstwertprinzip) provided for in Section 149 (1) VAG.
Valuation using the less strict lower-of-cost-or-market principle resulted in write-downs of EUR 13,933,000
(EUR 36,846,000) 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
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
247
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.
As at 31 December 2023, there were four currency futures contracts in the currencies HUF, CZK and PLN with a term
ending on 23 May 2024 and 10 June 2024 respectively. The transactions are being used to hedge future dividends in
foreign currency. The two currency futures contracts with a negative market value on the reporting date form a provision for
impending losses totalling EUR 492,000 (EUR 1,685,000).
The remaining 2 currency futures contracts had a positive market value of EUR 1,176,000 (EUR 0) as at the reporting date.
Amounts denominated in
foreign currencies
are converted to euro using the appropriate mean rate of exchange.
As a rule,
mortgage receivables and other loans
, including those to affiliated companies and companies in which a
participation is held, are measured at the nominal value of the outstanding receivables. Discounts deducted from loan
principal are spread over the term of the loan and shown under deferred income.
Specific valuation allowances of adequate size are formed for doubtful
receivables
and deducted from their nominal values.
Tangible assets
(not including land and buildings) are measured at cost less accumulated depreciation. Low-cost assets
are fully written off in the year of purchase.
Unearned premiums
were essentially calculated by prorating over time after applying a deduction for expenses (15%) of
EUR 7,879,000 (EUR 5,367,000).
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 610,000 (EUR 3,360,000) were included. The provisions for profit-unrelated premium refunds relate to premium
refunds in certain insurance classes that are contractually guaranteed to policyholders in the event that there are no claims
or a low level of claims. This provision is formed at the individual policy level.
Indirect business
includes assumed property and casualty insurance as well as health and life insurance business. In indirect
business, liability for incurred claims and the liability for remaining coverage are primarily based on reports from assignors
as of the 31 December 2023 balance sheet date. The reported amounts were increased where this was considered
necessary in light of past experience.
Underwriting items for assumed reinsurance business
and associated retrocessions are included immediately in the annual
financial statements.
248
Annual Financial Report 2023
The equalisation provision is calculated in accordan
c
e 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.
Provisions for severance pay, pensions, and anniversary bonuses
are calculated on the basis of the principles for the
calculation of pension insurance of the Actuarial Association of Austria (AVÖ), AVÖ 2018-P (Employees), assuming a wage
growth rate of:
• Wage growth rate (2024): 8.0% (6.5%)
• Wage growth rate (2025): 5.0% (3.5%)
• Wage growth rate (2026): 3.5% (2.5%)
• Wage growth rate (2027): 2.5% (2.0%)
• Wage growth rate (from 2028): 2.0% p.a. (2.0%)
and a discount rate of 1.51% (1.14%) p.a. for the severance provision, 1.80% (1.53%) for the pension provision and 1.67%
(1.35%) 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 3,478,000 (EUR 3,268,000) in provisions have been formed for direct pension obligations. A portion of the direct
benefits equal to EUR 260,000 (EUR 255,000) will be administered as an occupational group insurance plan after an
insurance contract has been concluded in accordance with Sections 93–98 VAG, so that the provision will equal the overall
obligation less the outsourced plan assets.
The provision for severance obligations required under Austrian commercial law for 2023 was EUR 2,696,000
(EUR 2,694,000).
The amount earmarked for satisfying the outsourced severance pay obligations that was held by the outside insurance
company was EUR 1,574,000 (EUR 1,607,000).
The difference of EUR 1,122,000 (EUR 1,087,000) 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.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
249
II. NOTES TO THE BALANCE SHEET
The book values of intangible assets, land and buildings, investments in affiliated companies and ownership interests have
changed as follows:
Intangible assets
Land and
buildings
Shares in
affiliated
companies
Bonds and other
securities of
affiliated
companies and
loans to affiliated
companies
Participations
in EUR '000
As of 31 December 2022 24,184
155,279
4,862,714
498,382
24,216
Additions 1,559
26,088
598,739
10,292
0
Disposals 0
216
314,049
152,000
0
Appreciation 0
0
222,633
11,721
0
Depreciation 3,115
5,811
164,405
0
0
As of 31 December 2023 22,628
175,340
5,205,632
368,395
24,216
Intangible assets
with a value of EUR 894,000 (EUR 5,702,000) were acquired from affiliated companies during the financial
year. The value of developed and undeveloped properties was EUR 27,874,000 (EUR 28,090,000) as of 31 December
2023.
The
carrying amount of self-used property
was EUR 22,398,000 (EUR 22,070,000).
The investments have the following carrying amounts and fair values:
Items under § 144 Abs. 2 VAG Book Value
Fair value
Book Value
Fair value
2023
2023
2022
2022
in
EUR '000
Land and buildings 175,340
648,092
155,279
649,359
thereof appraisal reports 2019 0
0
7,565
11,360
thereof appraisal reports 2020 32,382
65,500
36,320
94,124
thereof appraisal reports 2021 22,114
179,620
19,262
186,710
thereof appraisal reports 2022 44,814
249,290
92,132
357,165
thereof appraisal reports 2023 76,030
153,682
Shares in affiliated companies 5,205,632
8,529,566
4,862,714
9,368,356
Bonds and other securities of affiliated companies and loans to affiliated companies 368,395
379,004
498,382
505,707
Participations 24,216
32,057
24,216
31,198
Shares and other non-fixed-interest securities 9,124
9,320
6,521
6,784
Bonds and other fixed-interest securities 334,719
323,074
331,285
294,708
Mortgage receivables 1,932
1,802
2,018
1,724
Other loans 955
501
941
437
Bank balances 351,863
351,863
338,040
338,040
Deposits receivables 839,874
839,874
1,218,466
1,218,466
Total 7,312,050
11,115,153
7,437,862
12,414,780
250
Annual Financial Report 2023
Hidden reserves fell by EUR 1,173,815,000 to a total of EUR 3,803,103,000 (EUR 4,976,918,000).
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.
The remaining investments were valued at their nominal values, reduced by write-downs where necessary.
Recognised mathematical models (discounted cash flows) were used to calculate the market values of
mortgage loans
and
other loans
.
Other loans
not secured by insurance contracts are loans of EUR 955,000 (EUR 940,000) to the Republic of Austria and
loans of EUR 0 (EUR 0) to other borrowers. Other loans do not include any loans (EUR 0) with remaining terms of up to one
year.
The
subordinated liabilities
balance sheet item consists of the bonds listed in the table below, which were issued in the form
of securities.
Name 2023
2022
in EUR '000
RT1 Supplementary capital bond 2021 300,000
300,000
Supplementary capital bond 2013 – 2043 0
284,400
Supplementary capital bond 2015 – 2046 214,413
400,000
Supplementary capital bond 2017 – 2047 200,000
200,000
Supplementary capital bond 2022 - 2042 500,000
500,000
Total 1,214,413
1,684,400
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
251
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
2023
2022
2023
2022
in EUR '000
Mortgage receivables 1,932
2,018
0
0
Deposits receivables 839,874
1,218,466
0
0
Receivables from direct insurance business 10,683
6,280
0
0
Receivables from reinsurance business 162,757
33,250
0
0
Other receivables 177,693
155,205
0
0
Liabilities from direct insurance business 7,675
3,845
0
0
Liabilities from reinsurance business 54,460
4,037
0
0
Other liabilities 8,795
425,987
0
0
The change in
personnel provisions
was recognised in personnel expenses. Interest expenses for personnel provisions of
EUR 893,000 (EUR 5,339,000) are reported under investment and interest expenses.
Other provisions
of EUR 120,470,000 (EUR 122,848,000) mainly consist of IT provisions of EUR 49,015,000
(EUR 52,060,000), provisions for unused holiday time of EUR 3,673,000 (EUR 3,257,000), provisions for variable salary
components of EUR 10,227,000 (EUR 9,972,000), provisions for customer support and marketing of EUR 616,000
(EUR 534,000) and provisions for anniversary bonuses of EUR 1,641,000 (EUR 1,471,000).
The amount shown under
other liabilities
includes EUR 6,465,000 (EUR 2,912,000) in tax liabilities and EUR 697,000
(EUR 607,000) in social security liabilities.
The following disclosures are provided for
off-balance sheet contingent liabilities
: The letter of comfort recognised in 2022
(EUR 75,000,000) in connection with borrowings was revoked in 2023. VIG Holding has assumed guarantees of
EUR 409,767,000 (EUR 470,419,000) for "Additional equity capital", including in December 2019 vis-à-vis its subsidiary
Wiener Städtische Versicherung AG Vienna Insurance Group for EUR 350,000,000, in December 2022 vis-à-vis its
subsidiary VIG RE zajist’ovna, a.s. for EUR 22,000,000, and since 2023 vis-à-vis its subsidiary BTA Baltic Insurance
Company for EUR 2,000,000 and its subsidiary Vienna-Life Lebensversicherung AG for EUR 10,000,000.
Liabilities arising from the use of off-balance sheet tangible assets
were EUR 2,270,000 (EUR 2,166,000) for the following
financial year and EUR 12,050,000 (EUR 11,163,000) for the following five years.
252
Annual Financial Report 2023
III. NOTES TO THE INCOME STATEMENT
Premiums written, net earned premiums, expenses for insura
n
ce claims and benefits, administrative expenses and reinsurance
balance had the following breakdown for property and casualty insurance in 2023:
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 269,983
261,049
200,423
18,924
-45,577
Liability insurance 4,464
4,679
471
583
-2,375
Marine, aviation and transport insurance 4,487
4,507
1,732
625
-2,039
Other non-life insurance 34,974
29,437
14,698
2,865
-715
Total direct business 313,908
299,672
217,324
22,997
-50,706
(Previous year values) 250,734
238,564
215,455
18,472
-1,681
Indirect business
Marine, aviation and transport insurance 0
0
26
-1 25
Other insurance 1,330,731
1,278,916
850,289
444,019
-10,269
Total indirect business 1,330,731
1,278,916
850,315
444,018
-10,244
(Previous year values) 1,210,926
1,171,399
717,311
436,289
-5,991
Total direct and indirect business 1,644,639
1,578,588
1,067,639
467,015
-60,950
(Previous year values) 1,461,660
1,409,963
932,766
454,761
-7,672
Th
e
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 44,805,000 (EUR 3,574,000) for financial year 2023.
In
indirect business
,
premiums written of EUR 25,016,000 (EUR 21,484,000) for health insurance and EUR 103,000
(EUR 16,174,000) for life insurance were assumed. The reinsurance balance from assumed health and life insurance
business was EUR 0 (EUR 0).
The result from
indirect business
was EUR 43,906,000 (EUR 51,883,000). The net earned premiums of EUR 1,304,678,000
(EUR 1,206,720,000) 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:
2023
2022
in EUR '000
Income from participations 411,081
408,214
Income from other investments 29,226
25,500
Income from land and buildings 856
636
In
the financial year, distributions totalling EUR 85,000 (EUR 21,000) were made from the funds in portfolio.
The deposit interest income for indirect business was transferred to the underwriting account.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
253
Losses from disposals of investments
were EUR 19,036,000 (EUR 20,951,000) in financial year 2023.
The expenses for insurance claims and benefits, administrative expenses, other underwriting expenses and investment expenses
include:
2023
2022
in EUR '000
Wages and salaries 37,097
34,465
Expenses for severance benefits and payments to company pension plans 563
1,103
Expenses for retirement provisions 2,032
1,249
Expenses for statutory social contributions and income-related contribution and mandatory contributions 7,371
6,778
Other social security expenses 214
196
Commissions
of EUR 16,408,000 (EUR 12,415,000) were incurred for direct business in financial year 2023.
A summary of
auditing fees
is provided in the notes to the consolidated financial statements of VIENNA INSURANCE
GROUP AG Wiener Versicherung Gruppe, Vienna.
No deferred income taxes were recognised on temporary differences between the results under commercial law and taxable
earnings. The tax rate selected for deferred taxes would be 20.7% (20.7%) based on the terms and conditions of the tax
allocation agreement with the parent company. The tax rate is attributable to the 2022 eco-social tax reform and the
associated gradual reduction of the corporate income tax rate.
Deferred taxes
31.12.2023
31.12.2022
in EUR '000
Shares in affiliated companies 19,800
26,850
Investments -1,732
-11,608
Tangible assets (not incl. land and buildings) and inventories 121
109
Valuation reserve -18,891
-19,436
Subordinated liabilities 5,759
8,253
Underwriting provision – retention 107,390
92,339
Long-term personnel provisions 44,935
46,096
Other provisions 25,093
13,687
Temporary differences (not subject to tax) 182,475
156,290
254
Annual Financial Report 2023
IV. MATERIAL 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
ASIGURAREA ROMANEASCA - ASIROM VIENNA
INSURANCE GROUP S.A., Bukarest 88.77
81,988
72,782
2,980
2,645
2023
ATBIH GmbH, Vienna 68.97
179,157
123,559
24,661
17,008
2023
BCR Asigurari de Viata Vienna Insurance Group S.A.,
Bucharest 93.98
47,097
44,261
2,606
2,449
2023
BTA Baltic Insurance Company AAS, Riga 100.00
73,639
73,639
10,406
10,406
2023
Beesafe Spolka z Ogranziczona Odpowiedzialnoscia,
Warsaw
77.27
8,736
6,750
-5,204
-4,021
2022
Compania de Asigurari "DONARIS VIENNA INSURANCE
GROUP" Societate pe Actiuni, Chisinau 99.99
8,323
8,322
1,717
1,717
2023
CARPATHIA Pensii-Societate de Administrare a Fondurilor
de Pensii private S.A., Floresti 100.00
10,828
10,828
1,723
1,723
2022
Ceská podnikatelská pojist'ovna, a.s., Vienna Insurance
Group, Prague 100.00
131,472
131,472
31,319
31,319
2023
Compensa Life Vienna Insurance Group SE, Tallinn 100.00
83,678
83,678
9,818
9,818
2023
Compensa Towarzystwo Ubezpieczen Na Zycie Spolka
Akcyjna Vienna Insurance Group, Warsaw 84.14
64,152
53,981
2,024
1,703
2023
Compensa Towarzystwo Ubezpieczen Spolka Akcyjna
Vienna Insurance Group, Warsaw 76.01
80,760
61,383
-24,169
-18,370
2023
Compensa Vienna Insurance Group, akcine draudimo
bendrove, Vilnius 100.00
63,180
63,180
6,515
6,515
2023
DONAU Versicherung AG Vienna Insurance Group, Vienna 74.24
125,323
93,036
19,939
14,802
2023
ELVP Beteiligungen GmbH, Vienna 100.00
63,218
63,218
35,193
35,193
2023
Foreign limited liability company "InterInvestUchastie",
Minsk 99.95
198
198
1
1
2022
GLOBAL ASSISTANCE D.O.O. BEOGRAD, Belgrad 50.00
422
211
-77
-39
2022
GLOBAL ASSISTANCE SERVICES SRL, Bucharest 40.00
287
115
21
9
2022
GLOBAL ASSISTANCE SERVICES s.r.o., Prague 100.00
435
435
62
62
2022
GLOBAL ASSISTANCE SLOVAKIA s.r.o., Bratislava 40.00
79
32
18
7
2022
GLOBAL ASSISTANCE, a.s., Prague 60.00
5,986
3,592
1,736
1,042
2023
Global Assistance Polska Spolka z ograniczona
odpowiedzialnoscia, Warsaw 30.77
318
98
53
16
2022
Global Services Bulgaria JSC, Sofia 50.00
461
231
97
49
2022
INSURANCE ONE-SHAREHOLDER JOINT-STOCK
COMPANY BULSTRAD VIENNA INSURANCE GROUP EAD,
Sofia 100.00
92,416
92,416
24,073
24,073
2023
INTERSIG VIENNA INSURANCE GROUP Sh.A., Tirana 89.98
8,399
7,558
1,481
1,333
2023
Insurance Company Vienna osiguranje d.d., Vienna
Insurance Group, Sarajevo
100.00
10,703
10,703
631
631
2023
Stock Company for Insurance and Reinsurance
MAKEDONIJA Skopje - Vienna Insurance Group, Skopje 94.50
25,410
24,013
604
571
2023
InterRisk Towarzystwo Ubezpieczen Spolka Akcyjna Vienna
Insurance Group, Warsaw
100.00
69,928
69,928
9,334
9,334
2023
InterRisk Versicherungs-AG Vienna Insurance Group,
Wiesbaden 100.00
64,320
64,320
29,200
29,200
2023
Joint Stock Insurance Company WINNER LIFE - Vienna
Insurance Group Skopje, Skopje
100.00
4,621
4,621
432
432
2022
KOMUNALNA poistovna, a.s. Vienna Insurance Group,
Bratislava 100.00
57,800
57,800
3,784
3,784
2023
KOOPERATIVA poist'ovna, a.s. Vienna Insurance Group,
Bratislava 94.37
407,689
384,723
33,342
31,464
2023
KUPALA Belarusian-Austrian Closed Joint Stock Insurance
Company, Minsk 52.34
14,181
7,423
1,614
845
2022
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
255
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
679,414
651,160
155,516
149,049
2023
LVP Holding GmbH, Vienna 100.00
642,210
642,210
27,007
27,007
2023
OMNIASIG VIENNA INSURANCE GROUP S.A., Bucharest 99.54
154,385
153,679
5,656
5,630
2023
Private Joint Stock Company "Insurance Company "USG",
Kiew 7.07
14,158
1,002
3,097
219
2023
PRIVATE JOINT-STOCK COMPANY "UKRAINIAN
INSURANCE COMPANY "KNIAZHA VIENNA INSURANCE
GROUP", Kiew
90.56
10,922
9,891
2,203
1,995
2023
Private Joint-Stock Company "INSURANCE COMPANY
"KNIAZHA LIFE VIENNA INSURANCE GROUP", Kiew 97.94
6,515
6,381
1,605
1,572
2023
RISK CONSULT Sicherheits- und Risiko-
Managementberatung Gesellschaft m.b.H., Vienna
90.00
1,079
971
590
531
2022
Ray Sigorta Anonim Sirketi, Istanbul 12.67
59,722
7,568
31,798
4,029
2023
SIA "Global Assistance Baltic", Riga 33.33
250
83
-14 -5 2023
SIGMA VIENNA INSURANCE GROUP Sh.A., Tirana 89.05
18,095
16,114
2,670
2,378
2023
VIG AM Real Estate, a.s., Prague 100.00
741
741
93
93
2022
VIG HU GmbH, Vienna 100.00
99,800
99,800
-435 -435 2023
VIG IT - Digital Solutions GmbH, Vienna 100.00
6,916
6,916
112
112
2023
VIG Magyarország Befektetesi Zartköröen Müködö
Reszvenytarsasag, Budapest 55.00
728,742
400,808
-46,572 -25,615 2023
VIG Management Service SRL, Bucharest 52.08
8,315
4,331
102
53
2022
VIG Poland/Romania Holding B.V., Amsterdam 100.00
92,570
92,570
11,635
11,635
2022
VIG Properties Bulgaria AD in Liquidation, Sofia 99.97
948
948
-150 -150 2023
VIG RE zajist'ovna, a.s., Prague 55.00
294,932
162,213
24,459
13,452
2023
VIG Services Ukraine, LLC, Kiew 6.98
1,143
80
96
7
2022
VIG Türkiye Holding B.V., Amsterdam 100.00
32,288
32,288
0
0
2023
VIG-CZ Real Estate GmbH, Vienna 90.00
147,640
132,876
92
83
2023
Vienna Insurance Group Polska Spolka z ograniczona
odpowiedzialnoscia, Warsaw 51.43
13,935
7,167
-5,500 -2,829 2023
Vienna International Underwriters GmbH, Vienna 100.00
552
552
73
73
2022
Vienna Life Towarzystwo Ubezpieczen na Zycie S.A.
Vienna Insurance Group, Warsaw
100.00
10,608
10,608
1,545
1,545
2023
Vienna-Life Lebensversicherung AG Vienna Insurance
Group, Bendern 100.00
15,484
15,484
-30 -30 2023
WIENER STÄDTISCHE OSIGURANJE akcionarsko drustvo
za osiguranje Beograd, Belgrad
100.00
43,591
43,591
10,690
10,690
2023
WIENER STÄDTISCHE VERSICHERUNG AG Vienna
Insurance Group, Vienna 90.82
670,369
608,822
110,215
100,096
2023
Joint Stock Insurance Company WINNER-Vienna Insurance
Group, Skopje
100.00
6,812
6,812
36
36
2023
Wiener Osiguranje Vienna Insurance Group a.d., Banja
Luka 100.00
9,055
9,055
76
76
2023
Akcionarsko drustvo za zivotno osiguranje Wiener
Städtische Podgorica, Vienna Insurance Group, Podgorica
100.00
3,196
3,196
471
471
2022
Wiener Towarzystwo Ubezpiezen Spolka Akcyjna Vienna
Insurance Group, Warsaw 100.00
77,282
77,282
10,919
10,919
2023
Wiener osiguranje Vienna Insurance Group dionicko
drustvo za osiguranje, Zagreb 97.82
68,322
66,832
5,421
5,303
2023
twinformatics GmbH, Vienna 20.00
3,797
759
393
79
2023
Participations
Erste Asset Management GmbH, Vienna 0.76
133,767
1,015
70,107
532
2022
Wiener Börse AG, Vienna 8.50
178,614
15,184
34,583
2,940
2022
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Annual Financial Report 2023
V. OTHER DISCLOSURE
S
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.
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 Section 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 Section 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 Section 159 (2) (1) AktG by a contingent capital increase
of up to EUR 31,145,500.36 through the issue of up to 30,000,000 bearer ordinary shares. The contingent capital increase
will only be implemented to the extent that holders of convertible bonds issued on the basis of the General Meeting
resolution of 21 May 2021 exercise the subscription or exchange rights they were granted. The Managing Board has not
adopted any resolutions to date concerning the issuance of convertible bonds based on the authorisation granted on 21
May 2021.
The General Meeting of 21 May 2021 further authorised the Managing Board to issue, subject to Supervisory Board
approval in accordance with Section 174 (2) AktG, income bonds with a total nominal value of up to EUR 2,000,000,000.00
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
257
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 26 May 2023 authorised the Managing Board to acquire bearer ordinary shares in accordance with
Sections 65 (1) (8), (1a) and (1b) AktG to the maximum extent permissible by law during a period of 30 months following
the date the General Meeting resolution was adopted. The amount paid upon repurchase of the Company’s own shares
may not be more than a maximum of 50% below, 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 (Sections 5 (2) and (3) of the Austrian Takeover
Act (Übernahmegesetz)).
The General Meeting of 26 May 2023 authorised the Managing Board for a period of five years from the date of the resolution
to use own shares, while excluding shareholder pre-emption rights,
• for servicing convertible bonds issued based on the resolution adopted by the General Meeting of 21 May 2021; and
• for sales in a manner permitted by law other than via the stock market or by means of a public offer.
The written report on the reasons for exclusion of shareholder pre-emption rights was submitted to the General Meeting.
The Managing Board has not made use of these authorisations to date. The Group held none of its own shares on the
balance sheet date.
On 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) was terminated
with effect from 9 October 2023.
On 2 March 2015 the Company issued a subordinated bond with a nominal value of EUR 400,000,000.00 and a maturity
of 31 years. The Company can call the bond in full for the first time on 2 March 2026 and on each following coupon date.
The subordinated bond bears interest at a fixed rate of 3.75% p.a. during the first eleven years of its term and variable
interest after that. The subordinate bond satisfies the tier 2 requirements of Solvency II and is listed on the Luxembourg
Stock Exchange. On 21 April 2023, an early partial redemption of the subordinated bonds took place. Approximately 46%
(EUR 185.6 million) was bought back. The remaining outstanding volume of the bonds (EUR 214.4 million) continues to be
recognised under the subordinated liabilities item.
A EUR 200,000,000.00 subordinated bond with a term of 30 years was privately issued with international institutional
investors on 6 April 2017. The subordinated bond can be called for the first time after 10 years by VIG Holding and satisfies
the tier 2 requirements of Solvency II. Inclusion for trading in the Third Market of the Vienna Stock Exchange took place on
13 April 2017. Interest is 3.75% per annum until 13 April 2027, after which the bond will bear interest at a variable rate.
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
258
Annual Financial Report 2023
Versicherungsverein. The subordinated bond bears int
e
rest at a fixed rate of 3.2125% p.a. during the first ten years and
variable interest after that.
A tier 2 subordinated bond with a total nominal value of EUR 500,000,000.00 was placed on 8 June 2022. The subordinated
bond has a term of 20 years and VIG Holding can call it for the first time after 10 years. The debt instruments will initially
bear a fixed-interest rate of 4.875% per annum. Provided they are not called and repurchased before this date, the debt
instruments will be subject to a variable rate as of and including 15 June 2032. The bonds are traded on the Vienna Stock
Exchange.
Senior sustainability bond
On 18 March 2021, a senior subordinated bond with a total nominal value of EUR 500,000,000.00 and a term of 15 years
was issued for the first time. VIG Holding can call the bond in full for the first time on 26 December 2035 and any following
day until maturity. The senior sustainability bond bears interest at a fixed rate of 1.00% p.a. until the end of the term. The
bond is listed on the Vienna Stock Exchange. The total net proceeds could be made available for green and social projects
within the first year following issuance.
TH
E SUPERVISORY BOARD HAD THE FOLLOWING MEMBERS
IN FINANCIAL YEAR 2023:
Chairman:
Gü
nter Geyer
1. Deputy Chairman:
Rudolf Ertl
2. Deputy Chairman:
Robert Lasshofer
Members
:
Ma
rtina Dobringer
Zsuzsanna Eifert
Gerhard Fabisch
András Kozma
Peter Mihók
Heinz Öhler (until 30 June 2023)
Gabriele Semmelrock-Werzer
Katarína Slezáková
Peter Thirring (from 1 July 2023)
Gertrude Tumpel-Gugerell
THE MANAGING BOARD HAS THE FOLLOWING MEMBERS:
Chairwoman:
El
isabeth Stadler (until 30 June 2023)
Chairman:
Hartwig Löger (from 1 July 2023)
Deputy Chairman of the Managing Board:
Hartwig Löger (until 30 June 2023)
Deputy Chairman of the Managing Board:
Peter Höfinger (from 1 July 2023)
Members:
Liane Hirner
Peter Höfinger (until 30 June 2023)
Gerhard Lahner
Gábor Lehel
Harald Riener
Peter Thirring (until 1 July 2023)
Changes after the end of the financial year:
Günter Geyer has announced that he will no longer be available as Chairman of the Supervisory Board of the Vienna
Insurance Group (VIG) after the end of his current term of office. His term of office will end on 24 May 2024 with the Annual
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
259
General Meeting resolving on financial year 2023. Christoph Rath has been appointed Deputy Member of the VIG Holding
Managing Board with effect from 1 September 2024 (his term of office will end on 30 June 2027).
The
average number of employees, including the Managing Board
, was 326 (317). These people were employed in the
insurance business and resulted in personnel expenses of EUR 47,276,000 (EUR 43,792,000).
There were no loans outstanding to
members of the Managing Board
or members of the Supervisory Board as of 31
December 2023 (EUR 0).
No guarantees were outstanding for members of the Managing Board
or Supervisory Board as of 31 December 2023.
In 2023, the
total expenses
for severance pay and pensions of EUR 2,595,000 (EUR 2,352,000) included severance pay
and pension expenses of EUR 3,261,000 (EUR 2,183,000) for Managing Board members and senior management in
accordance with Section 80 (1) of the Austrian Stock Corporation Act (AktG).
The Managing Board manages the Company and is also responsible for management of the Group. In some cases,
responsibility is also assumed for additional duties in affiliated or related companies.
The members of the Managing Board received EUR 7,527,000 (EUR 7,948,000) from the Company during the reporting
period for their services. Managing Board members are provided a company car for both business and personal use. The
members of the Managing Board received EUR 25,000 (EUR 17) 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 1:10.6
in 2023 (1:11.0).
Former
members of the Managing Board
received EUR 1,158,000 (EUR 1,075,000).
The
members of the Supervisory Board
received EUR 866,000 (EUR 758,000) in compensation for their services to the
Company in 2023.
The Company is a group member within the meaning of Section 9 of the Austrian Corporate Income Tax Act (KStG) of the
Wiener Städtische Versicherungsverein, Vienna group of companies.
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 24% (25%) of the attributed positive income. If negative income
is attributed to the parent company, the negative tax allocation equals 21.6% (22.5%) of the current tax loss.
A receivable of EUR 147,973,000 (EUR 126,376,000) 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.
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Annual Financial Report 2023
VI. GLOBAL MINIMUM TAX
EU member states have agreed on the Europe-wide impl
ementation of the Global Anti-Base Erosion (GloBE) rules (Pillar
Two) in the international tax reforms set out by the OECD. The EU directive provides that profits from multinational groups
of companies or large domestic groups with consolidated sales of at least EUR 750 million will in future be subject to a tax
rate of at least 15%. The directive was transposed into Austrian law with the Minimum Taxation Reform Act (MinBestRefG)
published on 30 December 2023. The core element is the Minimum Taxation Act (MinBestRefG), which came into force on
31 December 2023 and applies to financial years beginning on or after 31 December 2023. The amendments to the Austrian
Commercial Code (UGB) associated with this Act are applicable to financial years ending on or after 30 November 2023.
The amendments to the UGB relate to the accounting and reporting of deferred taxes in line with the amendment to IAS
12 for IFRS accounting. With regard to deferred taxes, the technical guidance on the amendments to IAS 12 was published
by the IASB on 23 May 2023. Based on this, an exemption from the recognition of deferred tax assets and liabilities in
accordance with the requirements of global minimum taxation shall be regulated until further notice. This exemption from
recognition also applies to the UGB. In accordance with the directive, potential effects on deferred taxes in connection with
global minimum taxation are not taken into account within the VIG Insurance Group.
The effects of the global minimum taxation on the Group cannot be reliably estimated for 2024 and beyond at present. The
VIG Insurance Group is currently working on an implementation project for global minimum taxation.
The provisions on global minimum taxation would result in an insignificant amount of additional taxes for the fully
consolidated companies of the VIG Group based on the results for 2023.
VII. 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
261
PROPOSED APPROPRIATION OF PROFITS
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe (VIG Holding) ended financial year 2023 with net retained
profits of EUR 396,846,778.80. The following appropriation of profits will be proposed in the Annual General Meeting:
The 128 million shares will receive a dividend of EUR 1.40 per share. For this dividend, 29 May 2024 was agreed as the
payment date, 28 May 2024 as the record date and 27 May 2024 as the ex-dividend date.
A total distribution of EUR 179.200.000,00 has therefore been approved. The net retained profit of financial year 2023 of
EUR 217.646.778,80 remaining after the distribution is to be carried forward to the new account.
Vienna, 26 March 2024
The Managing Board:
Hartwig Löger
General Manager (CEO),
Chairman of the Managing Board
Peter Höfinger
Deputy General Manager,
Deputy Chairman of the Managing Board
Liane Hirner
CFRO, Member of the Managing Board
Gerhard Lahner
COO, Member of the Managing Board
Gábor Lehel
CIO, Member of the Managing Board
Harald Riener
Member of the Managing Board
262
Annual Financial Report 2023
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 2023, 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 2023 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
263
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 in samples with the strategic business
planning approved by the management. We used analytical procedures to verify the plausibility of the detailed planning
for future years.
– Furthermore, we have dealt with the key planning assumptions and reconciled the assumptions regarding the market
development with general and sector-specific market expectations.
– We have analyzed the consistency of planning data using information from prior periods.
– Given that minor changes in the applied cost of capital rate significantly impact the determined fair value, we have,
together with our valuation specialists, assessed the determination of the applied cost of capital rate and
comprehended the derivation of the underlying parameters.
Other Information
Management is responsible for other information. Other information is all information provided in the annual report, other
than the financial statements, the management report and the auditor’s report.
Our opinion on the financial statements does not cover other information and we do not provide any kind of assurance
thereon.
In conjunction with our audit, it is our responsibility to read this other information and to assess whether, based on
knowledge gained during our audit, it contains any material inconsistencies with the financial statements or any apparent
material misstatement of fact.
If we conclude that there is a material misstatement of fact in other information, we must report that fact. We have nothing
to report in this regard.
Responsibilities of Management and Audit Committee for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with Austrian
Generally Accepted Accounting Principles and other legal or regulatory requirements for insurance companies and for such
internal controls as management determines are necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
Management is also responsible for assessing the Company’s ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of accounting, unless management either
intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
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Annual Financial Report 2023
The audit committee is responsible for overseeing th
e
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 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, misrepresentations or
the override of internal control.
– We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's
internal control.
– We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
– We conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our audit report to the respective note in the financial statements. If such
disclosures are not appropriate, we will modify our audit opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease
to continue as a going concern.
– We evaluate the overall presentation, structure and content of the financial statements, including the notes, and whether
the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
– We communicate with the audit committee regarding, amongst other matters, the planned scope and timing of our
audit as well as significant findings, including any significant deficiencies in internal control that we identify during our
audit.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
265
– 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.
REPORT ON OTHER LEGAL REQUIREMENTS
Management Report
In accordance with Austrian company law, the management report is to be audited as to whether it is consistent with the
financial statements and prepared in accordance with legal requirements.
Management is responsible for the preparation of the management report in accordance with Austrian company law and
other legal or regulatory requirements for insurance companies.
We have conducted our audit in accordance with generally accepted standards on the audit of management reports as
applied in Austria.
Opinion
In our opinion, the management report is consistent with the financial statements and has been prepared in accordance
with legal requirements. The disclosures pursuant to Section 243a UGB are appropriate.
Statement
Based on our knowledge gained in the course of the audit of the financial statements and our understanding of the
Company and its environment, we did not note any material misstatements in the management report.
Additional Information in accordance with Article 10 AP Regulation
We were elected as auditors at the Annual General Meeting on 20 May 2022 and were appointed by the supervisory board
on 13 June 2022 to audit the financial statements of the company for the financial year ending on 31 December 2023.
On 26 May 2023 we were elected as auditors for the financial year ending on 31 December 2024 and were appointed by
the supervisory board on 20 June 2023 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.
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Annual Financial Report 2023
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.
ENGAGEMENT PARTNER
The engagement partner for the audit is Mr Thomas Sm
rekar.
Vienna, 26 March 2024
KPMG Austria GmbH
Wirtschaftsprüfungs- und Steuerberatungsgesellschaft
signed by:
Thomas Smrekar
Auditor
(Austrian Chartered Accountant)
This report is a translation of the original report in German, which
is solely valid.
The financial statements, together with our auditor's opinion, may only be published if the financial statements and the
management report are identical with the audited version attached to this report. Section 281 Paragraph 2 UGB (Austrian
Commercial Code) applies.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
267
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 deve
lopment, 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, 26 March 2024
The Managing Board:
Hartwig Löger
General Manager (CEO),
Chairman of the Managing Board
Peter Höfinger
Deputy General Manager,
Deputy Chairman of the Managing Board
Liane Hirner
CFRO, Member of the Managing Board
Gerhard Lahner
COO, Member of the Managing Board
Gábor Lehel
CIO, Member of the Managing Board
Harald Riener
Member of the Managing Board
Declaration by the Managing Board
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Annual Financial Report 2023
The Supervisory Board and its committees, Chair and
Deputy Chairs periodically and repeatedly monitored in
detail the management of the Company and the activities of
the Managing Board in connection with its management
and monitoring of the Group. This purpose was served by
detailed presentations and discussions during meetings of
the Supervisory Board and its committees as well as by
detailed discussions on individual topics with Managing
Board members who provided comprehensive
explanations and evidence relating to management, the
financial position of the Company and that of the Group.
Among other things, the strategy, business development
(overall and in individual 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 2023 reporting year.
Detailed information on the principles underlying the
remuneration system is available in the remuneration policy
and 2023 remuneration report. In 2024, the Supervisory
Board plans to update the remuneration policy and also
address issues such as childcare and parental leave.
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 2023 consolidated corporate
governance report. One Annual General Meeting and seven
Supervisory Board meetings distributed across the financial
year were held in 2023. In addition, four meetings of the
Audit Committee (Accounts Committee) were held and one
resolution of the Audit Committee was passed by circular
resolution. The financial statement and consolidated
financial statement auditor, KPMG Austria GmbH
Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, FN
269873y (KPMG), attended four Audit Committee meetings
and three Supervisory Board meetings in 2023, including
the Supervisory Board meeting that addressed the audit of
the 2022 annual financial statements and the 2022
consolidated financial statements as well as formal approval
of the 2022 annual financial statements, and also attended
the Annual General Meeting. KPMG also informed the Audit
Committee about the planning and procedure used to audit
the financial statements and consolidated financial
statements for 2023. Two meetings of the Committee for
Managing Board Matters (Human Resources Committee)
were held in 2023. The Committee for Urgent Matters
(Working Committee) met once. The Nomination
Committee and the Strategy Committee did not meet in
2023; strategic issues were dealt with by the full
Supervisory Board.
No agenda items were discussed in Supervisory Board
meetings in 2023 without the participation of members of
the Managing Board.
No current 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 2023 is available in the 2023
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.
KPMG was elected as the auditor of the financial
statements and consolidated financial statements for
financial year 2023 by the Annual General Meeting on 20
May 2022 by way of a selection procedure in accordance
with the Audit Regulation (Regulation (EU) No. 537/2014)
for the appointment of the auditor and Group auditor for
financial year 2023. It was elected on the basis of the
recommendation and in accordance with the preference of
the Audit Committee on the proposal and motion of the
Supervisory Board. In consequence, KPMG performed
these tasks in financial year 2023.
The Audit Committee mainly dealt with the following topics
in 2023:
S
upervisory
B
oard
R
eport
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
269
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.
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 dealt with
authorised non-audit services and, when reviewing and
monitoring the independence of the auditor of the financial
statements and consolidated financial statements, was
unable to identify any circumstances that would cast doubt
on its independence and impartiality.
The Audit Committee also dealt with the VIG Holding and
VIG Group ORSA reports and the IT security report in 2023
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 full Supervisory Board and stated that no
deficiencies had been identified. The Supervisory Board
was also given the opportunity during Supervisory Board
meetings to verify the functional adequacy of the existing
control and auditing systems.
In addition, the audit plan and the quarterly reports
prepared by the internal audit department were debated by
the Audit Committee and the Supervisory Board and
discussed with the head of the internal audit department
and the Group internal audit department.
The Audit Committee examined the Solvency and Financial
Condition Reports (SFCRs) at both the solo and Group
levels and reported its findings to the Supervisory Board.
No facts or circumstances were found that would have
provided grounds for objection.
In 2023, the Audit Committee discussed the selection of the
auditor of the financial statements and consolidated
financial statements for financial year 2024. It was
determined that there were no grounds for exclusion of
KPMG or circumstances that would give rise to concerns
about impartiality, and that sufficient protective measures
had been taken to ensure an independent and impartial
audit.
The Audit Committee reported to the Supervisory Board on
the findings of these investigations and proposed KPMG to
the Supervisory Board and subsequently to the Annual
General Meeting for election as auditor of the financial
statements and consolidated financial statements. The
General Meeting selected KPMG as auditor of the financial
statements and consolidated financial statements for 2024.
The Audit Committee also received the 2023 annual
financial statements, management report, 2023
consolidated corporate governance report and 2023
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 2023 consolidated
financial statements and Group management report. In
addition, the auditor’s reports prepared by (consolidated)
financial statements auditor KPMG for the 2023 annual
financial statements and management report and the 2023
270
Annual Financial Report 2023
consolidated financial statements and Group manageme
nt
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 Article 11 of the Audit Regulation (EU) that explained
the results of the financial statements audit and
consolidated financial statements audit. This additional
report prepared by the financial statements auditor was also
provided to the Supervisory Board.
The 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 2023.
The Managing Board and Supervisory Board prepared a
remuneration report for financial year 2023.
The 2023 annual financial statements together with the
management report and 2023 consolidated corporate
governance report, the 2023 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 2023, the Managing Board of VIG Holding informed the
members of the Supervisory Board of material sustainability
and IT security matters. In the year under review, issues
addressed included the VIG 25 sustainability programme,
the new legal framework for sustainability reporting and
transition plans to mitigate climate change. The Supervisory
Board also received the 2023 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
2023 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 2023 annual
financial statements and management report and the 2023
consolidated financial statements and Group management
report were reviewed by the Supervisory Board and
examined. KPMG’s audit of the 2023 annual financial
statements and management report and the 2023
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
2023, and of the results of operations of the Company for
financial year 2023 in accordance with Austrian generally
accepted accounting principles. The management report is
consistent with the annual financial statements. The
disclosures pursuant to Section 243a UGB (Austrian
Commercial Code) are appropriate. KPMG further
determined that the consolidated financial statements also
comply with statutory requirements and give a true and fair
view of the net assets and financial position of the Group as
of 31 December 2023, and of the results of operations and
cash flows of the Group for financial year 2023 in
accordance with IFRS as adopted by the EU and Section
138 of the Austrian Insurance Supervision Act (VAG) in
combination with Section 245a of the Austrian Commercial
Code (UGB). The Group management report is consistent
with the consolidated financial statements. KPMG also
reviewed the 2023 sustainability report (consolidated non-
financial report) and determined in accordance with Section
269 (3) UGB that the 2023 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
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
271
the financial statements and consolidated financial
statements.
After thorough examination, the Supervisory Board
therefore adopted a unanimous resolution to approve the
2023 annual financial statements prepared by the
Managing Board, not to raise any objections to the
management report, the 2023 consolidated financial
statements and Group management report, the 2023
consolidated corporate governance report and the 2023
sustainability report (consolidated non-financial report) and
to agree with the appropriation of profits proposed by the
Managing Board.
The 2023 annual financial statements have therefore been
approved in accordance with Section 96 (4) of the Austrian
Stock Corporation Act (AktG).
The Supervisory Board proposes to the General Meeting
that it approves the Managing Board’s proposed appro-
priation of profits and formally approves the actions of the
Managing Board and Supervisory Board.
Vienna, April 2024
The Supervisory Board:
Günter Geyer (Chairman)
272 Annual Financial Report 2023
VI
ENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
273
Service
information
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
274
Annual Financial Report 2023
LIST OF ABBREVIATIONS
Abbreviation Full company name
365.life KOOPERATIVA, d.s.s., a.s.
Aegon Life AEGON TOWARZYSTWO UBEZPIECZEŃ NA ŻYCIE SPÓŁKA AKCYJNA
Alfa (Hungary) Alfa Vienna Insurance Group Biztosító Zrt.
APEIRON APEIRON Biologics AG
Asirom Asigurarea Românească - ASIROM Vienna Insurance Group S.A.
Asset Management Hungary VIG Befektetési Alapkezelő Magyarország Zártkörűen Működő Részvénytársaság
Beesafe BEESAFE SPÓŁKA Z OGRANICZONA ODPOWIEDZIALNOSCIA
BCR Life BCR Asigurări de Viaţă Vienna Insurance Group S.A.
Beteiligungs- und Wohnungsanlagen GmbH Beteiligungs- und Wohnungsanlagen GmbH
BTA Baltic BTA Baltic Insurance Company AAS
Bulstrad Life "BULSTRAD LIFE VIENNA INSURANCE GROUP" EAD
Bulstrad Non-Life INSURANCE ONE-SHAREHOLDER JOINT-STOCK COMPANY BULSTRAD VIENNA INSURANCE GROUP EAD
Carpathia Pensii CARPATHIA PENSII-SOCIETATE DE ADMINISTRARE A FONDURILOR DE PENSII PRIVATE S.A.
Compensa Life (Poland)
1
)
Compensa Towarzystwo Ubezpieczeń Na Życie S.A. Vienna Insurance Group
Compensa Life (Estonia)
1
Compensa Life Vienna Insurance Group SE
Compensa Non-Life (Lithuania)
1
"Compensa Vienna Insurance Group", ADB
Compensa Non-Life (Poland)
1
Compensa Towarzystwo Ubezpieczeń S.A. Vienna Insurance Group
Corvinus Corvinus Nemzetközi Befektetési Zrt.
ČPP Česká podnikatelská pojišťovna, a.s., Vienna Insurance Group
Digital Impact Labs Leipzig Digital Impact Labs Leipzig GmbH
Donaris Compania de Asigurări "DONARIS VIENNA INSURANCE GROUP" Societate pe Actiuni
Donau Versicherung DONAU Versicherung AG Vienna Insurance Group
DTA Deferred tax asset
DTL Deferred tax liabilities
Erste Group Erste Group Bank AG
GPIH Joint Stock Company Insurance Company GPI Holding
InterRisk InterRisk Towarzystwo Ubezpieczeń S.A. Vienna Insurance Group
InterRisk Life InterRisk Lebensversicherungs-AG Vienna Insurance Group
InterRisk Non-Life InterRisk Versicherungs-AG Vienna Insurance Group
Intersig INTERSIG VIENNA INSURANCE GROUP Sh.A.
IRAO Joint Stock Company International Insurance Company IRAO
ISTCube IST cube (EuVECA) GmbH & Co KG
Kniazha
PRIVATE JOINT-STOCK COMPANY "UKRAINIAN INSURANCE COMPANY "KNIAZHA VIENNA INSURANCE
GROUP"
Kniazha Life PRIVATE JOINT-STOCK COMPANY "INSURANCE COMPANY "KNIAZHA LIFE VIENNA INSURANCE GROUP"
Komunálna KOMUNÁLNA poisťovňa, a.s. Vienna Insurance Group
Kooperativa (Slovakia)
1
KOOPERATIVA poisťovňa, a.s. Vienna Insurance Group
Kooperativa (Czech Republic)
1
Kooperativa pojišťovna, a.s., Vienna Insurance Group
KPMG KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft
Health Health insurance
Life Life insurance
Makedonija Osiguruvanje Stock Company for Insurance and Reinsurance MAKEDONIJA Skopje - Vienna Insurance Group
n/a not applicable
Omniasig OMNIASIG VIENNA INSURANCE GROUP S.A.
Österreichisches Verkehrsbüro AG Österreichisches Verkehrsbüro Aktiengesellschaft
PAC Doverie Pension Assurance Company Doverie AD
Pereca 11 Sp.z.o.o. Pereca 11 Spółka z ograniczoną odpowiedzialnością
Plug and Play Plug and Play Austria GmbH
Ray Sigorta Ray Sigorta A.Ş.
Property/Casualty Property and casualty insurance
Serviceangaben
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
275
Abbreviation Full company name
Seesam Seesam Insurance AS
Sigma Interalbanian Sigma Interalbanian Vienna Insurance Group Sh.a
TUW "TUW" Towarzystwo Ubezpieczeń Wzajemnych „TUW"
Union Biztosító UNION Vienna Insurance Group Biztosító Zrt.
USG Private Joint-Stock Company " Insurance Company "USG "
VBV - Betriebliche Altersvorsorge AG VBV - Betriebliche Altersvorsorge AG
VENPACE INSHIFT GmbH & Co. KG
Vienna Life (Poland)
1
Vienna Life Towarzystwo Ubezpieczeń na Życie S.A. Vienna Insurance Group
Vienna osiguranje (Bosnia and Herzegovina)
1
Insurance Company Vienna osiguranje d.d., Vienna Insurance Group
Vienna PTE VIENNA POWSZECHNE TOWARZYSTWO EMERYTALNE SPÓŁKA AKCYJNA VIENNA INSURANCE GROUP
Vienna-Life (Liechtenstein)
1
Vienna-Life Lebensversicherung AG Vienna Insurance Group
Viennalife (Türkiye) VİENNALİFE EMEKLİLİK VE HAYAT ANONİM ŞİRKETİ
viesure viesure innovation center GmbH
VIG Fund VIG FUND, a.s.
VIG Holding
2
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
VIG Re VIG RE zajišťovna, a.s.
VIG/C-QUADRAT VIG/C-QUADRAT TOWARZYSTWO FUNDUSZY INVESTYCYJNYCH SPÓŁKA AKCYJNA
VIG, VIG-Group, VIG-insurance group All consolidated group companies.
Wiener Osiguranje (Bosnia and Herzegovina)
1
Wiener Osiguranje Vienna Insurance Group ad
Wiener Osiguranje (Croatia)
1
Wiener osiguranje Vienna Insurance Group dioničko društvo za osiguranje
Wiener Re WIENER RE akcionarsko društvo za reosiguranje
Wiener Städtische WIENER STÄDTISCHE VERSICHERUNG AG Vienna Insurance Group
Wiener Städtische Osiguranje (Serbia)
1
WIENER STÄDTISCHE OSIGURANJE akcionarsko drustvo za osiguranje
Wiener Städtische Versicherungsverein Wiener Städtische Wechselseitiger Versicherungsverein - Vermögensverwaltung - Vienna Insurance Group
Wiener TU WIENER TOWARZYSTWO UBEZPIECZEŃ SPÓŁKA AKCYJNA VIENNA INSURANCE GROUP
Winner Life Joint Stock Insurance Company WINNER LIFE - Vienna Insurance Group
Winner Non-Life Joint Stock Insurance Company WINNER-Vienna Insurance Group
1
Country names in parentheses are added if there is more than one company with the same abbreviated name and it is not clear from the context which one is intended. The context is assumed to be clear, for
example, if the name is used in a description of activities taking place within a country.
2
Used when referring to the listed individual company
276
Annual Financial Report 2023
NOTICE
This annual report includes forward-looking statemen
t
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 annual report went
to press. Actual results may differ from the forecasts if the
assumptions underlying the forecast prove to be wrong or
if unexpectedly large risks occur.
Rounding differences may occur when rounded amounts or
percentages are added.
The annual report was prepared with the greatest possible
care to ensure the accuracy and completeness of the infor-
mation in all parts. However, rounding, typesetting and
printing errors cannot be completely ruled out.
ADDRESS
VIENNA INSURANCE GROUP AG
Wie
ner Versicherung Gruppe
Schottenring 30
1010 Vienna
Tel.: +43 (0) 50 390 22000
WEBSITE – ONLINE REPORT
The annual report is available in German and English a
nd
can also be downloaded as a PDF file in both languages
from our website (group.vig) under Investor Relations.
Service tip
Onl
ine annual report
On the VIG Insurance Group website you will find an online
version of the annual report optimised for both the internet
and mobile devices. All sections can be downloaded as
PDF files. You can also download the most important tables
a
s Excel files. Other functions such as links within the report
and a comparison with the previous year create trans-
parency and take you directly to the information you require.
The online version also allows you to search the report
quickly and conveniently using the full-
text search function.
The search results are presented on an overview page,
sorted by relevance. The search term is highlighted in colour
both there and on the report page.
In
case of doubt, the German version is authoritative.
Editorial deadline: 20 March 2024
Annual Financial Report 2023