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Group Annual Report 2021 VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
insuring
more,
responsibly
Annual Financial Report 2021
2
Group management report
Annual Financial Report 2021
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6
6
7
10
11
19
19
19
19
20
21
21
22
22
22
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22
5
25
26
27
27
28
29
31
146
149
164
Consolidated financial statements
168
169
26
Contents
Read more
The highlights for fi nancial year 2021
are available online at
www.annual-report.vig/2021
The additional information includes:
• A video with Chairwoman of the
Managing Board Elisabeth Stadler
• Detailed information on the most
important events in fi nancial year 2021
• Information and a short video on the
new VIG 25 strategic programme
All VIG Holding publications are available at
www.vig.com/reports
GROUP MANAGEMENT REPORT 2021
Business development and economic position
Economic environment
Legal environment
Group business development and financial
performance -indicators
Branch offices
Business development and fi nancial performance
indicators by reportable segment
Business development by balance sheet unit
Other mandatory disclosures
Research and development
Holdings, purchase and sale of own shares
Internal control and risk management system in
the accounting process
Capital, share, voting and control rights and
associated agreements
Consolidated non-fi nancial report
Corporate governance
Outsourcing disclosures
Expected development and risks of the Group
Signifi cant risks and uncertainties
Expected development – Outlook for 2022
Notes to the consolidated financial statements
Additional disclosures in accordance with the
Austrian Insurance Supervision Act (VAG)
Corporate governance report
Supervisory Board report
Declaration by the Managing Board
Auditor’s report
Consolidated balance sheet
Consolidated income statement
Consolidated statement of comprehensive income
Consolidated shareholders’ equity
Consolidated cash ﬂow statement
CONSOLIDATED FINANCIAL STATEMENTS 2021
Primary financial statements
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
3
Management report
189
175
177
177
183
187
188
188
176
Annual financial statements
193
194
194
196
198
212
213
218
219
Service
The VIG Group not only wants to protect what
matters for more customers and protect
what matters with more services. It wants to
do this with more sustainability – insuring
more with more responsibility. Read more in
our Sustainability Report 2021, or at
www.vig.com/corporate-responsibility
MANAGEMENT REPORT TO THE
ANNUAL FINANCIAL STATEMENTS IN
ACCORDANCE WITH UGB
Company profile
Management report 2021
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
Auditor’s report
Declaration by the Managing Board
Supervisory Board report
ANNUAL FINANCIAL STATEMENTS IN
ACCORDANCE WITH UGB
Annual Financial Statements 2021
Balance sheet
Income statement
Notes to the financial statements for 2021
Proposed appropriation of profits
223
SERVICE INFORMATION
224
List of abbreviations
226
Notice – Address
4
Annual Financial Report 2021
VI
ENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
5
Group
management
report
Group management report | Consolidated financial statements | Management report | Annual financial statement s | Service information
6
Annual Financial Report 2021
Business development and economic position
ECONOMIC ENVIRONMENT
After a strong economic recovery in the 2
n
d
and 3
rd
quarters
of 2021, the short-term growth outlook for the eurozone
was dampened by high levels of new COVID-19 infections,
especially the new Omicron variant of the virus and asso-
ciated containment measures. There were also supply-side
shortages and large increases in energy prices that per-
sisted longer than expected. According to Erste Group esti-
mates, the resulting base effects should lead to an inflation
rate of 2.6% for the eurozone in 2021. Even if renewed con-
tainment measures in the 4
th
quarter of 2021 have a damp-
ening effect, GDP growth of 5.3% is possible for the euro-
zone in 2021 (real GDP in 2020: -6.5%).
Based on estimates by the National Bank of Austria (OeNB),
the 4
th
lockdown in November and December 2021 should
add up to a 0.5% loss in annual economic output in Austria.
At the same time, as for previous lockdowns, the govern-
ment announced support measures for the sectors and
economic actors that were affected. The statistical data
from the last 1.5 years of the pandemic show that the nega-
tive economic effects of the containment measures have
decreased with each lockdown. The negative impact of the
renewed containment measures was also partially compen-
sated by the strong economic recovery in the 2
nd
quarter of
2021 (+13.0%) and 3
rd
quarter of 2021 (+5.7%). Based on
this, the Erste Group expects GDP growth of 4.8% for 2021.
The factors driving inflation in the eurozone also apply to
Austria, where an inflation rate of 2.8% is expected for 2021.
The strong economic recovery continued throughout the
CEE region and almost all the economies are expected to
have reached their pre-crisis levels during the course of
2021. While the figures for the 3
rd
quarter of 2021 confirm
the recovery of economic activity, manufacturing is also
being adversely affected by supply restrictions here. Eco-
nomic growth was mainly driven by domestic demand in the
3
rd
quarter of 2021, while net exports slowed growth every-
where except Croatia. That is one of the reasons the Erste
Group ultimately lowered its GDP forecast for the region to
5.5% for 2021. Risks related to the COVID-19 pandemic and
supply chain bottlenecks naturally continue to exist. However,
tightening the measures aimed at flattening infection curves
throughout the CEE region should keep the overall effect on
growth small in 2021.
In many CEE countries, inflation exceeded the upper limit of
the national bank inflation target in 2021. More than 90% of
the average increase in headline inflation observed in the
CEE region in 2021 was due to increases in fuel prices,
housing and energy costs as well as food prices. Unlike the
European Central Bank (ECB) – under the impression of a
tighter labour markets, among other things – the regional
central banks have already reacted and initiated a cycle of
interest rate increases. The Erste Group expects inflation to
be 4.5% for the region as a whole in 2021.
LEGAL ENVIRONMENT
COVID-19 LEGISLATION
A great deal of pandemic-related European and nation
al
legislation was enacted in 2021 and existing legislation from
2020 was extended in order to control and mitigate the ef-
fects of the COVID-19 pandemic. This also had significant
effects on VIG Holding and the Group. In Austria, for exam-
ple, the amendment to corporate law was maintained to the
effect that board meetings could also be held without the
physical presence of the participants. In addition, the dead-
lines for holding general meetings and preparing annual
financial statements as well as notification deadlines under
Austrian insurance supervisory law and in court and admin-
istrative proceedings were extended (again). Labour and tax
regulations for home offices were also further standardised.
Legal changes with respect to customer areas, workplaces
and events, and the lockdown restrictions had a significant
impact on VIG Holding and its subsidiaries.
SUSTAINABLE FINANCE
The European Commission aims to make Europe the first
climate-neutral continent in the world by 2050 under its
“European Green Deal” initiative. In 2021, this political ob-
jective became legally binding on all Member States and
therefore indirectly applicable to VIG Holding and the VIG
G
roup management report
2021
V
IENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
7
Group under European Climate Law. A number of directly
a
pplicable European regulations were adopted from 2019
to 2021 to achieve this goal, in particular the so-called “Tax-
onomy Regulation” and “Disclosure Regulation”. The first
creates a system for classifying environmentally sustainable
activities and represents a voluntary minimum standard for
classifying VIG Holding and Group investments and non-life
insurance premiums starting as of 1 January 2022. The sec-
ond applies to Group companies that offer insurance-based
investment products and includes pre-contractual and
periodic information duties to make disclosures at both the
company and product levels with respect to sustainability
risks and the adverse sustainability impacts of investments for
all life insurance policies concluded on or after 10 March 2021.
DIGITAL RESILIENCE
Regulating the digital security of the financial sect
or was also
a focus of attention at the European level during the reporting
period. In September 2020, the European Commission pub-
lished a legislative proposal for a Digital Operational Resili-
ence Act (DORA) that is aimed at requiring financial market
participants to implement all the security measures needed
to mitigate cyberattacks and other risks. Based on current
information, it is not expected to be applicable before 2023.
BREXIT
The Trade and Cooperation Agreement concluded by the
E
U and United Kingdom at the end of 2020 formally came
into force on 1 May 2021. It is mainly a free-trade agreement
for goods and services. It also includes a number of pro-
visions concerning cooperation in other areas (e.g. the co-
ordination of social security, law enforcement and judicial
cooperation). With respect to direct insurance, the loss of
the freedom to provide services means the possibilities for
offering and providing reciprocal services are now very
limited. Some countries have therefore adopted transitional
arrangements. With respect to reinsurance, it remains to be
seen whether the European Commission will reach a deci-
sion on the equivalence of supervisory regimes and there-
fore whether reinsurance companies with registered offices
in the United Kingdom are to be treated the same as those
with registered offices in the European Union.
GROUP BUSINESS DEVELOPMENT AND FINANCIAL
PE
RFORMANCE INDICATORS
GENERAL INFORMATION
The around 50 VIG insurance companies operate in the fol-
lowing reporting segments: Austria, Czech Republic,
Poland, Extended CEE, Special Markets and Group Func-
tions. These six segments are explained in the segment re-
porting section starting on page 11. The Extended CEE
segment includes the countries of Albania incl. Kosovo,
Baltic states, Bosnia-Herzegovina, Bulgaria, Croatia, Hungary,
Moldova, North Macedonia, Romania, Serbia, Slovakia and
Ukraine. The Special Markets segment consists of the four
countries Germany, Georgia, Liechtenstein and Turkey. The
Montenegro and Belarus markets were not included in the
scope of consolidation in 2021 due to immateriality. More
information on the scope of consolidation and consolidation
methods is provided on page 55 of the notes to the con-
solidated financial statements. The notes to the consoli-
dated financial statements provide detailed information on
changes in the scope of consolidation starting on page 56.
VIG Insurance Group operates with more than one comp-
any and brand in most of its markets. The market presence
of each company in a country is also 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 en-
sure uniform management, specific country responsibilities
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 reas-
signed 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.
Group management report | Consolidated financial statements | Management report | Annual financial statement s | Service information
8
Annual Financial Report 2021
To improve readability, company names have been shor
t-
ened throughout the entire report. A list of full company
names is provided starting on page 224. In order to avoid
duplicate information, reference will be made below to ap-
propriate information in the notes. Changes in significant
balance sheet and income statement items are presented
in both the segment reporting and the notes to the financial
statements. Additional disclosures in the management
report below are intended to explain these data in more
detail.
FINANCIAL PERFORMANCE INDICATORS
The key financial performance indicators that form t
he basis
for assessing the business development are presented below.
ABBREVIATED CONSOLIDATED INCOME STATEMENT
2021
2020
∆ in %
∆ absolute
in EUR millions
Premiums written – gross 11,002.6
10,428.5
5.5%
574.1
Net earned premiums –
retention
9,705.6
9,336.6
4.0%
369.0
Financial result excl. result
from shares in at equity
consolidated companies 607.0
624.8
-2.8% -17.8
Income from investments 1,159.5
1,263.8
-8.3% -104.3
Expenses for investments
and interest expenses -552.5 -639.0 -13.5% 86.5
Result from shares in at
equity consolidated
companies 24.9
-28.5 -187.2% 53.4
Other income 165.8
145.7
13.8%
20.1
Expenses for claims and
insurance benefits – retention
-7,136.6 -7,030.6 1.5%
-106.0
Acquisition and administrative
expenses -2,536.8 -2,328.5 8.9%
-208.3
Other expenses -317.9 -232.2 36.9%
-85.7
Business operating result 512.0
487.3
5.1%
24.8
Adjustments* -0.7 -141.4 -99.5% 140.7
Result before taxes 511.3
345.9
47.8%
165.5
Taxes -123.3 -103.2 19.5%
-20.2
Result for the period 388.0
242.7
59.9%
145.3
Non-controlling interests in
net result for the period -12.3 -11.2 9.9%
-1.1
Result after taxes and non-
controlling interests
375.7
231.5
62.3%
144.2
Earnings per share (in EUR) 2.94
1.81
62.3%
1.1
*The value consists of impairments of intangible assets (mainly impairments from goodwill)
Premium volume
A detailed disclosure of premium development is included in
Note 15. Premiums written – gross in the notes to the con-
solidated financial statements.
VIG Insurance Group wrote EUR 11,002.6 million in pre-
miums in 2021, an increase of 5.5% compared to the same
period in the previous year (2020: EUR 10,428.5 million). It
retained EUR 9,878.6 million of the gross premiums written
(2020: EUR 9,415.8 million). EUR 1,124.0 million was ceded
to reinsurance companies in 2021 (2020: EUR 1,012.6 million).
The other property and casualty (+8.0%) and motor lines of
business (motor third party liability +7.0%, motor own dam-
age +8.7%) recorded particularly good premium growth in
2021. Premium growth was especially strong in the Czech
Republic (+7.7%), Extended CEE (+9.3%) and Group Func-
tions (+13.2%) segments. In the Extended CEE segment, the
Baltic states (+9.1%), Croatia (+23.1%), Hungary (+13.6%)
and Romania (+17.2%) recorded particularly dynamic pre-
mium growth. Overall, the Group generated 61.8% of its pre-
miums outside Austria in 2021.
Net earned premiums rose 4.0%, from EUR 9,336.6 million in
2020 to EUR 9,705.6 million in 2021. Net reinsurance cessions
were EUR 1,117.3 million in 2021 (2020: EUR 1,005.8 million).
Expenses for claims and insurance benefits – retention
A detailed disclosure of expenses for claims and insurance
benefits is included in Note 19. Expenses for claims and
insurance benefits – retention in the notes to the consoli-
dated financial statements.
Group expenses for claims and insurance benefits less reinsur-
ers’ share were EUR 7,136.6 million in 2021, representing a
year-on-year increase of 1.5% (2020: EUR 7,030.6 million).
The increase was the result of a significantly higher volume
of business in the non-life lines of business.
Acquisition and administrative expenses
A detailed disclosure of acquisition and administrative ex-
penses is included in Note 20. Acquisition and adminis-
trative expenses in the notes to the consolidated financial
statements.
V
IENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
9
Acquisition and administrative expenses for all consoli-
dated VIG companies increased by 8.9% year-on-year to
EUR 2,536.8 million in 2021, primarily due to an increase
in commission expenses (2020: EUR 2,328.5 million).
Financial result
A detailed disclosure of the financial result (excluding shares
in at equity consolidated companies) is included in Note 16.
Financial result excl. result from shares in at equity consoli-
dated companies in the notes to the consolidated financial
statements.
The financial result (incl. the result from shares in at equity
consolidated companies) was EUR 631.9 million in 2021
(2020: EUR 596.3 million). The year-on-year increase of 6.0%
was mainly due to a better result from shares in at equity
consolidated companies.
Result before taxes
The Group result before taxes was EUR 511.3 million in
2021 (2020: EUR 345.9 million). The substantial 47.8% in-
crease in profits was mainly the result of a significant im-
provement in the combined ratio and the good develop-
ment of the financial result. In addition, the result for the pre-
vious year was reduced by EUR 141.4 million in impair-
ments of goodwill and other intangible assets.
The business operating result was EUR 512.0 million in
2021, 5.1% higher than the value in the previous year (2020:
EUR 487.3 million).
Investments
A brief presentation of the investments is included in the notes
to the consolidated financial statements starting on page 66.
Total investments, including cash and cash equivalents, were
EUR 37,266.1 million as of 31 December 2021 (31 December
2020: EUR 36,646.3 million). The year-on-year increase was
primarily due to an increase in cash and cash equivalents re-
sulting from the issue of additional debt and hybrid capital.
The investments include property, shares in at equity con-
solidated companies and all financial assets, using the look-
through approach for consolidated special funds, as well as
other fund investments allocated to the asset classes. Financial
instruments for unit- and index-linked life insurance are not
included. These increased 7.0% from EUR 7,968.0 million in
2020 to EUR 8,525.3 million in 2021, mainly due to the
positive performance achieved by the financial instruments
for unit- and index-linked life insurance.
BREAKDOWN OF INVESTMENTS 2021
Shareholders’ equity
Shareholders’ equity increased 5.9% to EUR 5,597.9 million in
2021 (2020: EUR 5,285.8 million). The development was pri-
marily due to the EUR 300 million issue of hybrid capital. The
shareholders’ equity attributable to shareholders increased
from EUR 5,162.7 million in 2020 to EUR 5,478.2 million in
2021 for the reason indicated above.
Underwriting provisions
A detailed disclosure of underwriting provisions is included
in Note 10. Underwriting provisions in the notes to the con-
solidated financial statements.
Property 8.0%
(7.1%)
Loans 5.8%
(7.0%)
Other Investments 9.3%
(7.5%)
Shares 5.1% (4.2%)
Bonds 70.3%
(72.7%)
Affiliated companies
1.5% (1.5%)
2020 values in parenthesis
Group management report | Consolidated financial statements | Management report | Annual financial statement s | Service information
10
Annual Financial Report 2021
Underwriting provisions were EUR 32,546.2 million as
of
31 December 2021. This represents an increase of 1.0%
over the previous year (2020: EUR 32,230.1 million).
Cash flow
The significant increase in business operations was also
reflected in the cash flow from operating activities, which
rose from EUR 310.6 million in 2020 to EUR 522.1 million
in 2021. The cash flow from investing activities decreased
from EUR 98.6 million in 2020 to EUR -415.5 million in 2021
due to an increase in investments. Financing activities pro-
duced a cash flow of EUR 597.7 million in 2021 (2020:
EUR -123.6 million). The positive change compared to the
previous year was mainly due to the issue of the VIG Hold-
ing hybrid bond and sustainability bond. The Group had
cash and cash equivalents of EUR 2,456.3 million at the end
of 2021 (2020: EUR 1,745.1 million). The amount of interest
and dividends received was EUR 719.7 million in 2021
(2020: EUR 754.5 million).
Earnings per share
Earnings per share is a key figure equal to the result for the
period (less non-controlling interests) divided by the aver-
age number of shares outstanding. The number of shares
remained unchanged compared to the previous year.
Earnings per share were EUR 2.94 in 2021 (2020: EUR 1.81).
This therefore represented an increase of 62.3% compared
to the previous year.
Operating Return on Equity (Operating RoE)
Operating return on equity (operating RoE) measures the
profitability of the Group by expressing the business oper-
ating result as a ratio of the capital employed. This ratio is
calculated by dividing the business operating result by the
average shareholders’ equity. Shareholders’ equity adjust-
ed for a provision for unrealised gains and losses is used for
this purpose.
The Group earned an operating return on equity of 10.9%
in 2021 (2020: 11.1 %).
Combined ratio significantly below 100%
The combined ratio is calculated as the sum of underwriting
income and expenses, net payments for claims and insur-
ance benefits, including the net change in underwriting pro-
visions, and acquisition and administrative expenses, divided
by net earned premiums in the property and casualty balance
sheet unit.
The Group combined ratio improved to 94.2% in 2021,
primarily due to better claims development in the Czech Re-
public, Poland and Extended CEE segments (2020: 95.0%).
Combined ratio 2021
2020
in EUR millions
Net earned premiums – retention 5,653.0
5,358.8
Expenses for claims and insurance benefits –
retention -3,475.4 -3,367.4
Acquisition and administrative expenses,
including other underwriting income and
expenses -1,847.0 -1,724.6
Total expenses -5,322.4 -5,092.0
Combined ratio in % 94.2
95.0
BRANCH OFFICES
VIG Insurance Group has branch offices in Germany, France,
Italy, Kosovo, Slovenia, the Baltic states Estonia, Latvia and
Lithuania, and the Northern European countries of Sweden,
Norway and Denmark. Information on existing branch of-
fices and any significant changes compared to the previous
year are discussed in more detail for the respective report-
able segments in the section below, if applicable. A list of
the addresses of the insurance companies and branch of-
fices is also provided in the Group Annual Report 2021 on
page 193.
Operating Return on Equity 31.12.2021
31.12.2020
31.12.2019
in EUR millions
Shareholders' equity 5,597.9
5,285.8
5,190.7
Unrealised gains and losses
recognised in equity -568.1 -906.6 -777.2
Adjusted shareholders’ equity 5,029.8
4,379.2
4,413.5
Average adjusted shareholders’
equity 4,704.5
4,396.3
Business operating result 512.0
487.3
Operating RoE in % 10.9
11.1
V
IENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
11
BUSINESS DEVELOPMENT AND FINANCIAL
PERFORMANCE INDICATORS BY REPORTABLE SEGMENT
The reportable segments Austria, Czech Republic, Poland,
Extended CEE, Special Markets and Group Functions are
discussed below. The discussion focuses on presenting
business development in these reportable segments and
the market position held by the VIG Group in the respective
countries. A detailed presentation of the consolidated in-
come statement by reportable segments and premiums
written by reportable segments and lines of business is pro-
vided on page 63 in the notes to the consolidated financial
statements and in Note 15. Premiums written – gross on
page 119.
PREMIUMS WRITTEN BY REPORTABLE SEGMENT
2021
2020
∆ in %
∆ absolute
in EUR
millions
Austria 4,048.4
4,030.7
0.4%
17.7
Czech Republic 1,864.9
1,732.4
7.7%
132.5
Poland 1,279.8
1,196.2
7.0%
83.6
Extended CEE
1
2,886.7
2,640.5
9.3%
246.3
Special Markets
2
531.7
531.6
0.0%
0.0
Group Functions
3
1,965.0
1,736.5
13.2%
228.5
Consolidation -1,574.0 -1,439.5 9.3%
-134.5
Total 11,002.6
10,428.5
5.5%
574.1
1
Extended CEE: Albania incl. Kosovo, Baltics, Bosnia-Herzegovina, Bulgaria, Croatia, Hungary,
Moldova, North Macedonia, Romania, Serbia, Slovakia, Ukraine
2
Special Markets: Germany, Georgia, Liechtenstein, Turkey
3
Group functions: VIG Holding, VIG Re, Wiener Re, VIG Fund, corporate IT service providers and
intermediate holding companies
RESULT BEFORE TAXES BY REPORTABLE SEGMENT
2021
2020
∆ in %
∆ absolute
in EUR
millions
Austria 234.7
178.7
31.3%
55.9
Czech Republic 186.9
192.1
-2.7% -5.2
Poland 69.9
22.6
> 100% 47.3
Extended CEE
1
188.6
31.2
> 100% 157.4
Special Markets
2
37.9
25.8
46.5%
12.0
Group Functions
3
-210.8 -107.6 96.0%
-103.3
Consolidation 4.3
3.0
42.3%
1.3
Total 511.3
345.9
47.8%
165.5
1
Extended CEE: Albania incl. Kosovo, Baltics, Bosnia-Herzegovina, Bulgaria, Croatia, Hungary,
Moldova, North Macedonia, Romania, Serbia, Slovakia, Ukraine
2
Special Markets: Germany, Georgia, Liechtenstein, Turkey
3
Group functions: VIG Holding, VIG Re, Wiener Re, VIG Fund, corporate IT service providers and
intermediate holding companies
AUSTRIA
AUSTRIAN INSURANCE MARKET
The top 5 insurance groups in the country generated
around
71% of the premium volume in Austria in the 1
st
to 3
rd
quarters
of 2021. The two largest insurance groups generated around
44%.
MARKET GROWTH IN THE 1
ST
TO 3
RD
QUARTERS OF 2021
COMPARED TO THE PREVIOUS YEAR
The Austrian insurance companies generated a total pre-
mium volume of EUR 14.4 billion in the first three quarters
of 2021. The COVID-19 pandemic was still having a signifi-
cant negative effect on economic output at the beginning of
2021. According to the Austrian Insurance Association (VVO),
this led to a moderate year-on-year increase in premium
volume of 0.5% in the 1
st
quarter of 2021. The recovery that
followed in the 1
st
half of 2021 led to a total year-on-year
increase of 3.1% for the 1
st
to 3
rd
quarters of 2021. The
increase was mainly due to growth in property and casualty
insurance (+4.6%) and health insurance (+3.3%). Life
insurance remained stable with an increase of 0.1%.
Industrial insurance, which recorded a double-digit increase
of 11.1%, was the main driver of the growth in property and
casualty insurance. Premium volume rose 7.0% year-on-
+3.3%
+4.6%
Source: Austrian Insurance Association
EUR 14.4 bn
EUR 8.5 bn
+0.1%
9M 2021 figures
+3.1%
L
ife
Property and
casualty
Total
Health
EUR 1.9 bn
EUR 4.0 bn
Group management report | Consolidated financial statements | Management report | Annual financial statement s | Service information
12
Annual Financial Report 2021
year for motor own damage insurance. This increase w
as
primarily the result of price changes. Motor third party liabil-
ity recorded an increase of 2.4%. The non-motor lines of
business rose 5.1%, with travel insurance recording a sharp
increase of 23.6%.
While regular premium life insurance fell slightly year-on-
year by minus 0.7% in the 1
st
to 3
rd
quarters of 2021, single
premium life insurance recorded an increase in premium
volume. After decreasing sharply in the 1
st
quarter of 2021,
single premium life insurance achieved an increase of 5.8%
during the first nine months of 2021. Premiums in health
insurance recorded a year-on-year increase of 3.3%.
According to calculations based on data from the Inter-
national Monetary Fund (IMF) and Austrian Insurance Asso-
ciation (VVO), the average per capita expenditure for insur-
ance in Austria was EUR 2,016 in 2020. Of this, EUR 1,410
was spent in the non-life insurance area and EUR 607 in the
life insurance area.
MARKET SHARES OF THE MAJOR INSURANCE GROUPS
VIG COMPANIES IN AUSTRIA
VIG Insurance Group is represented by the two insura
nce
companies Wiener Städtische and Donau Versicherung in
Austria. s Versicherung, which was merged with Wiener
Städtische in 2018, continues to exist as a brand for banc-
assurance customers. Wiener Städtische also operates via
branches in Italy and Slovenia. VIG Holding operates out of
Austria as a reinsurer of the Group and an insurer in the
cross-border corporate business. Since 2019, it has also
been active in the traditional industrial insurance business
through branch offices in the Northern European countries
of Sweden, Norway and Denmark. VIG Holding is assigned
to the Group Functions segment.
With a market share of 23.4% in the 1
st
to 3
rd
quarters of
2021, the VIG insurance companies represent Austria’s
largest insurance group. Together they hold first place in the
market in property and casualty and in life insurance, and
second place in health insurance.
FINANCIAL PERFORMANCE INDICATORS IN THE AUSTRIA
R
EPORTABLE SEGMENT
Premium development
T
he Austrian VIG insurance companies wrote EUR 4,048.4
million in premiums in 2021, thereby keeping premiums
stable at the previous year level with a slight increase of 0.4%
(2020: EUR 4,030.7 million). Net earned premiums were
EUR 3,242.5 million in 2021 (2020: EUR 3,275.6 million).
PREMIUMS BY LINE OF BUSINESS
Source: Austrian Insurance Association; as of 9M 2021
23.4%
VIG ranked 1
st
20.6%
Ranked 2
nd
15.1%
Ranked 3
rd
40.9%
Other participants
Per cent of total premium volume
Health 11.6%
(11.2%)
Other property and casualty
37.1% (35.8%)
Life – single premium
5.6% (7.3%)
MTPL 8.1% (8.0%)
Values for 2020 in parentheses
Motor own damage
7.8% (7.5%)
Life – regular premium
29.8% (30.2%)
V
IENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
13
Result before taxes
The Austria segment generated a result before taxes of EUR
234.7 million in 2021 (2020: EUR 178.7 million). This corre-
sponds to an increase of 31.3%, due in part to COVID-19-
related impairments in the previous year and a higher current
result from shares in at equity consolidated companies.
Combined ratio
The combined ratio was 92.8% in 2021, almost the same
level as in the previous year (2020: 92.7%).
CZECH REPUBLIC
CZECH INSURANCE MARKET
In the 1
s
t
to 3
rd
quarters of 2021 the insurance market in the
Czech Republic continued to be dominated by the top 5 in-
surance groups, which together generate 85% of total pre-
mium volume.
MARKET GROWTH IN THE 1
ST
TO 3
RD
QUARTERS OF 2021
COMPARED TO THE PREVIOUS YEAR
Despite the ongoing COVID-19 pandemic, the growth of the
Czech insurance market continued in the first nine months
of 2021. Premium volume rose 4.7% year-on-year (based
on the calculation method of the Czech Insurance Asso-
ciation ČAP) from CZK 105.8 billion to CZK 110.8 billion. The
increase was due to growth in both the non-life and life
sectors.
Premiums rose 5.7% in the non-life sector. The increase
was driven by the dominant motor third party liability (+5.7%)
and motor own damage (+6.7%) lines of business, although
the growth rate was slower for both lines compared to the
same period in the previous year. Both lines continue to
benefit from a growing number of newly insured vehicles
and rising prices. The non-motor lines of business also rec-
orded an increase of 5.2%.
The life insurance sector recorded year-on-year growth of
2.7% in the 1
st
to 3
rd
quarters of 2021. This sector is domi-
nated by regular premium life insurance, which recorded
a gain of 2.8%, while single premium business reduced by
2.5%.
According to calculations based on data from the Internati-
onal Monetary Fund (IMF) and Czech Insurance Association,
the average per capita expenditure for insurance in the
Czech Republic was EUR 586 in 2020. EUR 382 of this
amount was for non-life insurance and EUR 204 for life in-
surance.
MARKET SHARES OF THE MAJOR INSURANCE GROUPS
VIG COMPANIES IN THE CZECH REPUBLIC
VIG Insurance Group is represented by two companies,
Kooperativa and ČPP, in the Czech Republic. With a market
share of 31.3% it is the largest insurance group in the Czech
Non-Life
Source: Czech Insurance Association
+4.7%
+5.7%
+2.7%
Total Life
9M 2021 figures
CZK 110.8 bn
CZK 36.2 bn
C
ZK 74.6 bn
Source: Czech Insurance Association; as of 9M 2021
11.2%
Ranked 3
rd
31.3%
Other participants
Per cent of total premium volume
31.3%
VIG ranked 1
st
26.2%
Ranked 2
nd
Group management report | Consolidated financial statements | Management report | Annual financial statement s | Service information
14
Annual Financial Report 2021
Republic in the 1
s
t
to 3
rd
quarters of 2021. It holds first place
in the market for both life and non-life insurance.
The Group reinsurance company VIG Re, which has its
headquarters in Prague, is assigned to the Group Functions
segment.
FINANCIAL PERFORMANCE INDICATORS IN THE CZECH
R
EPUBLIC REPORTABLE SEGMENT
Premium development
The VIG insurance companies in the Czech Republic seg-
ment wrote EUR 1,864.9 million in premiums in 2021, repre-
senting a strong increase of 7.7% (2020: EUR 1,732.4 million).
This was primarily due to good performance in the motor lines
of business as well as in the other property and casualty
and regular premium life insurance lines of business. Net
earned premiums were EUR 1,399.8 million in 2021 (2020:
EUR 1,295.5 million). This represented an increase of 8.0%
compared to the previous year.
PREMIUMS BY LINE OF BUSINESS
Result before taxes
A result before taxes of EUR 186.9 million was recorded in the
Czech Republic segment in 2021 (2020: EUR 192.1 million).
This corresponds to a decline of 2.7% compared to the pre-
vious year, which mainly resulted from a decrease in the
result in the life business due to higher acquisition costs in
connection with the increase in new business.
Combined ratio
Due to an improvement in the claims ratio in the motor lines
of business, the combined ratio continued to decline com-
pared to the previous year to an excellent 90.1% in 2021
(2020: 90.7%).
POLAND
POLISH INSURANCE MARKET
The five largest insurance groups in the country generated
around 73% of the total premium volume in the first three
quarters of 2021. The three largest insurance groups con-
tributed around 59%.
MARKET GROWTH IN THE 1
ST
TO 3
RD
QUARTERS OF 2021
COMPARED TO THE PREVIOUS YEAR
The Polish insurance market recorded a year-on-year in-
crease of 9.5% in local currency terms in the 1
st
to 3
rd
quar-
ters of 2021. The growth was driven by increases in both
non-life premiums (+10.4%) and life premiums (+7.6%).
Premium volume in the motor lines of business, which
dominate the non-life business with a share of around 53%,
rose in the first nine months of 2021. Motor third party lia-
bility recorded an increase of 2.4%, and motor own damage
insurance recorded strong growth of 10.6%. Performance
was also predominantly positive in the non-motor lines of
business, which recorded an impressive 16.7% increase in
Health
1.1% (1.1%)
Other property and casualty
28.2% (28.4%)
Life – single premium
1.6% (2.0%)
MTPL
18.7% (18.0%)
Values for 2020 in parentheses
Motor own damage
15.0% (14.1%)
Life – regular premium
35.4% (36.4%)
Non-Life
Source: Financial Market Authority Poland
+10.4%
+7.6%
Total
Life
9M 2021 figures
PLN 50.9 bn
PLN 16.6 bn
PLN 34.4 bn
+9.5%
V
IENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
15
premium volume in the 1
st
to 3
rd
quarters of 2021. Health
insurance products in the non-life business rose sharply by
33.5% compared to the same period in the previous year.
The positive performance achieved by life insurance in the
1
st
to 3
rd
quarters of 2021 was mainly due to a large increase
in single premium business (+24.9%). Premiums from regu-
lar premium life insurance also increased 4.1%.
According to calculations based on data from the Inter-
national Monetary Fund (IMF) and Polish financial market
authority, the average per capita expenditure for insurance
in Poland was EUR 376 in 2020. Out of this, EUR 253 was
spent on non-life insurance and EUR 123 on life insurance.
MARKET SHARES OF THE MAJOR INSURANCE GROUPS
VIG COMPANIES IN POLAND
VIG Insurance Group is represented by Compensa Life
and
Non-Life, InterRisk, Vienna Life and Wiener TU in the Polish
market. InterRisk also invested in the mutual insurance
association TUW “TUW” in 2019. In November 2020, VIG
Insurance Group signed a share purchase agreement with
the Dutch company Aegon N.V. to acquire its companies in
Hungary, Poland, Romania and Turkey. The acquisition will
allow VIG Insurance Group to strengthen its market position
and significantly expand its potential in the pension fund
business in Poland. The transaction is subject to the ap-
provals required under supervisory law. Approval under
competition law has already been provided.
VIG Insurance Group held fourth place in the overall market
with a market share of 8.6% in the first nine months of 2021.
In the non-life sector it is positioned as fourth in the ranking
of top insurers, and in the life sector it is positioned as fifth.
FINANCIAL PERFORMANCE INDICATORS IN THE POLAND
R
EPORTABLE SEGMENT
Premium development
The Poland segment recorded total premiums written of
EUR 1,279.8 million in 2021, representing an increase of 7.0%
compared to the previous year (2020: EUR 1,196.2 million).
This increase was mainly due to growth in the other property
and casualty and single premium life insurance lines of busi-
ness. Net earned premiums were EUR 983.0 million in 2021,
6.1% higher than in the previous year (2020: EUR 926.6 million).
PREMIUMS BY LINE OF BUSINESS
Result before taxes
The result before taxes was EUR 69.9 million in 2021 (2020:
EUR 22.6 million). The strong increase was due to the fact
that the result for the previous period was decreased by
Source: Financial Market Authority Poland; as of 9M 2021
8.6%
VIG ranked 4
th
12.8%
Ranked 2
nd
34.6%
Ranked 1
st
32.5%
Other participants
Per cent of total premium volume
11.5%
R
anked 3
rd
Health
2.3% (2.2%)
Other property and casualty
34.8% (34.1%)
Life – single premium
10.6% (8.9%)
MTPL
24.3% (24.8%)
Values for 2020 in parenthesis
Motor own damage
15.0% (16.0%)
Life – regular premium
13.0% (14.0%)
Group management report | Consolidated financial statements | Management report | Annual financial statement s | Service information
16
Annual Financial Report 2021
provisions for expenses arising from a change in the
sur-
render terms for the repurchase of certain life insurance
products and a significant improvement in the combined
ratio for 2021.
The business operating result in the Poland segment was
EUR 70.5 million in 2021 (2020: EUR 38.2 million).
Combined ratio
Due to a better claims development the combined ratio im-
proved to 93.2% in 2021 (2020: 96.7%).
EXTENDED CEE
The Extended CEE reportable segment includes the cou
nt-
ries of Albania incl. Kosovo, Baltic states, Bosnia-Herzego-
vina, Bulgaria, Croatia, Hungary, Moldova, North Macedo-
nia, Romania, Serbia, Slovakia and Ukraine, which gen-
erated 27.2% of Group premiums in 2021.
Albania including Kosovo
VIG Insurance Group operates in the Albanian insurance
market with Sigma Interalbanian and Intersig. With a market
share of 21.1% it ranked second in the first nine months of
2021. Sigma Interalbanian is also represented by a branch
in Kosovo, where it held seventh place in the market with a
market share of 9.0% in the 1
st
to 3
rd
quarters of 2021.
Baltic states
VIG insurance companies are represented in all three Baltic
states. Compensa Life has its headquarters in Estonia and
is also represented by branches in Latvia and Lithuania.
BTA Baltic operates in Latvia and has branches in Estonia
and Lithuania. After merging in 2020, the non-life compa-
nies Compensa Non-Life and Seesam operated in Lithuania
as a single company, Compensa Non-Life. It maintains
branches in Latvia and Estonia.
Their market share of 25.1% made the VIG insurance com-
panies the market leader in the Baltic states in the 1
st
to 3
rd
quarters of 2021. They also hold first place in the non-life
sector and second place for life insurance.
Bosnia-Herzegovina
VIG Insurance Group is represented by Wiener Osiguranje,
which has its headquarters in Banja Luka in the Serbian
Republika Srpska in Bosnia-Herzegovina, and by Vienna
Osiguranje, which is headquartered in Sarajevo. The market
share was 8.3% based on data for the 1
st
to 3
rd
quarters of
2021, which puts the VIG insurance companies in fifth place
in the market.
Bulgaria
The three insurance companies Bulstrad Life, Bulstrad Non-
Life and Nova are represented in the Bulgarian insurance
market. Together they had a market share of 13.3% in the
1
st
to 3
rd
quarters of 2021. That makes the VIG insurance
companies the leading insurance group in Bulgaria. They
hold third place in both the non-life and life sectors. The PAC
Doverie pension fund also belongs to VIG Insurance Group.
Croatia
The VIG insurance company Wiener Osiguranje operates in
Croatia. Its market share of 10.5% in the 1
st
to 3
rd
quarters
of 2021 put it in fourth place in the Croatian insurance market.
Moldova
The VIG insurance company Donaris operates in Moldova.
It had a market share of 12.1% in the first nine months of
2021, putting it in fifth place in the market. It also holds
fourth place in the non-life sector.
North Macedonia
The VIG insurance companies Makedonija Osiguruvanje,
Winner Non-Life and Winner Life together held a market
share of 18.4% in the 1
st
to 3
rd
quarters of 2021. That makes
the VIG companies the leading insurance group in North
Macedonia.
Romania
Three VIG insurance companies, the non-life insurer Omniasig,
composite insurer Asirom and life insurer BCR Life, operate
in the Romanian insurance market. Their market share of
20.7% makes the VIG insurance companies the market
leader in Romania. They hold the second place for both life
insurance and non-life insurance.
V
IENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
17
In November 2020, VIG Insurance Group signed a share
purchase agreement with the Dutch company Aegon N.V.
to acquire its companies in Hungary, Poland, Romania and
Turkey. The acquisition will allow VIG Insurance Group to
significantly expand its potential in the pension fund busi-
ness in Romania. The transaction is subject to the approv-
als required under supervisory law. Approval under compe-
tition law has already been provided.
Serbia
The VIG insurance company Wiener Städtische Osiguranje
operates in Serbia. It held fourth place in the market with a
market share of 10.8% in the 1
st
to 3
rd
quarters of 2021. It
is in fifth place in the non-life sector and second place in the
life sector.
Slovakia
Two VIG insurance companies, Kooperativa and Komunálna,
are represented in the Slovakian insurance market. Their
market share of 28.7% put them in first place in Slovakia in
the 1
st
to 3
rd
quarters of 2021. They hold second place for
non-life insurance and first place for life insurance.
Ukraine
Following the merger of Globus and UIG, the VIG non-life
insurance companies Kniazha and UIG and life insurance
company Kniazha Life were operating in Ukraine. The VIG
insurance companies held third place in the overall market
with a market share of 7.0% in the 1
st
to 3
rd
quarters of 2021.
They are in second place in the non-life sector and sixth place
in the life sector.
Hungary
The VIG Insurance Group operates with the insurance
company Union Biztosító in Hungary. It had a market share
of 8.1% in 2020, which put it in sixth place in the market. It
was in sixth place for non-life insurance in 2020 and fourth
place for life insurance.
In November 2020, VIG Insurance Group signed a share
purchase agreement with the Dutch company Aegon N.V.
to acquire its companies in Hungary, Poland, Romania and
Turkey. The acquisition will make VIG Insurance Group the
market leader in Hungary. The transaction is subject to the
approvals required under supervisory law. Approval under
competition law has already been provided.
The cooperation agreement signed with the Hungarian state-
owned holding company Corvinus Nemzetközi Befektetési
Zrt. (“Corvinus”) on 21 February 2022 provides for a non-
controlling minority interest of 45% in the Hungarian VIG
companies. Closing of the transaction is subject to the ap-
provals required under supervisory and competition law and
closing of the transaction with Aegon.
FINANCIAL PERFORMANCE INDICATORS IN THE EXTENDED
C
EE REPORTABLE SEGMENT
Premium development
The VIG insurance companies in the Extended CEE segment
wrote EUR 2,886.7 million in premiums in 2021, representing
a year-on-year increase of 9.3% (2020: EUR 2,640.5 million)
The increase is mainly the result of the good performance
in the motor business lines in Bulgaria, Hungary, Romania,
Slovakia and Ukraine. The life business lines in the Baltic
states, Hungary and Slovakia and the other property and
casualty business line in the Baltic states, Croatia and
Hungary also showed a very positive development. Net
earned premiums were EUR 2,200.7 million in 2021 (2020:
EUR 2,054.1 million), an increase of 7.1% compared to the
previous year.
PREMIUMS BY LINE OF BUSINESS
Health
5.6% (5.6%)
Other property and casualty
21.5% (22.2%)
Life – single premium
14.7% (14.8%)
MTPL
20.3% (19.9%)
Values for 2020 in parenthesis
Motor own damage
19.6% (19.3%)
Life – regular premium
18.3% (18.2%)
Group management report | Consolidated financial statements | Management report | Annual financial statement s | Service information
18
Annual Financial Report 2021
Result before taxes
D
ue to an improved combined ratio and the absence of
the goodwill impairment in Bulgaria and Croatia of EUR
104.8 million in the previous year, the result before taxes for
the Extended CEE segment rose to EUR 188.6 million in
2021 (2020: EUR 31.2 million).
Combined ratio
The combined ratio of 92.3% in the Extended CEE segment
in 2021 represented a significant improvement to the pre-
vious year’s level due to positive claims development and
the reallocation of technical reserves (2020: 94.5%).
SPECIAL MARKETS
The Special Markets segment includes the countries o
f Ger-
many, Georgia, Liechtenstein and Turkey.
Germany
The VIG insurance companies InterRisk Non-Life and InterRisk
Life operate in Germany. The InterRisk companies distribute
exclusively through around 10,000 independent sales partners.
InterRisk Non-Life specialises in accident and liability insur-
ance and selected property insurance products. InterRisk
Life focuses on retirement provision and occupational dis-
ability solutions, as well as protection for surviving depend-
ants. The VIG companies continue to operate successfully
in the German market as profitable niche providers.
The Group internal reinsurance company VIG Re has also
been represented by a branch in Germany since 2017. It is
assigned to the Group Functions segment.
Georgia
VIG Insurance Group is represented by two companies in
Georgia, GPIH and IRAO. With a market share of 24.4%,
the companies became the leading insurance group in
Georgia in the 1
st
to 3
rd
quarters of 2021.
Liechtenstein
The VIG insurance company Vienna-Life operates in Liech-
tenstein. Vienna-Life primarily offers unit- and index-linked
life insurance and holds eleventh place in the market in
Liechtenstein.
Turkey
The VIG non-life insurance company Ray Sigorta operates
in Turkey. Its market share of 2.1% puts it in 14
th
place in
the Turkish insurance market. In November 2020, VIG Insur-
ance Group signed a share purchase agreement with the
Dutch company Aegon N.V. to acquire its companies in
Hungary, Poland, Romania and Turkey. The acquisition allows
VIG Insurance Group to enter the life insurance business in
Turkey. The transaction is subject to the approvals required
under supervisory law. Approval under competition law has
already been provided.
FINANCIAL PERFORMANCE INDICATORS IN THE SPECIAL
MARKETS REPORTABLE SEGMENT
Premium development
Premiums written by the VIG insurance companies in the
Special Markets segment remained at the previous year’s
level at EUR 531.7 million in 2021 (2020: EUR 531.6 million).
Premiums written rose 12.6% after adjusting for exchange
rate effects, mainly due to currency changes in Turkey. Net
earned premiums were EUR 325.9 million in 2021 (2020:
EUR 343.9 million), a decrease of 5.2% compared to the
previous year.
PREMIUMS BY LINE OF BUSINESS
Health
6.4% (6.0%)
Other property and casualty
50.9% (49.9%)
Life – single premium
9.6% (11.1%)
MTPL
7.5% (8.6%)
Values for 2020 in parenthesis
Motor own damage
8.9% (7.9%)
Life – regular premium
16.7% (16.5%)
V
IENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
19
Result before taxes
The result before taxes in the Special Markets segment rose
46.5% in 2021 to EUR 37.9 million (2020: EUR 25.8 million).
This increase was primarily due to absence of the goodwill im-
pairment of EUR 12.5 million performed in Georgia in the pre-
vious year.
Combined ratio
The combined ratio was 94.4% in 2021, mainly due to rising
claims frequencies in Turkey (2020: 88.1%).
GROUP FUNCTIONS
The Group Functions reportable segment includes VIG
H
olding (including the branches in Northern Europe), VIG
Re (including the branches in Germany and France), Wiener
Re, the VIG Fund, corporate IT service providers and inter-
mediate holding companies. VIG Holding primarily focuses
on managerial tasks for the Group. It also operates as the
reinsurer for the Group and in the international corporate
business.
The reinsurance company VIG Re was formed in Prague in
2008 and is a successful reinsurance provider for both VIG
insurance companies and external partners. It has estab-
lished itself as an important company in the CEE region and
follows a conservative underwriting and investment strategy.
Standard & Poor’s reaffirmed VIG Re’s A+ rating with stable
outlook at the end of 2021.
FINANCIAL PERFORMANCE INDICATORS IN THE GROUP
F
UNCTIONS REPORTABLE SEGMENT
Premium development
Premiums written in the Group Functions segment rose
13.2% in 2021 to EUR 1,965.0 million (2020: EUR 1,736.5
million). In addition to an increase in premiums from the en-
try into new business areas (Western Europe) in active re-
insurance generated by the insurance company VIG Re, an
increase in corporate and large customer business and as-
sumed internal Group reinsurance was also recorded in VIG
Holding.
Result before taxes
A loss of EUR 210.8 million was recorded in the Group
Functions segment in 2021 (2020: loss of EUR 107.6 million).
In addition to the strengthening of the technical reserves,
this development is attributable to various provisions for
strategic projects and digitalisation initiatives, among other
things.
BUSINESS DEVELOPMENT BY BALANCE SHEET UNIT
Further information on business development by balan
ce sheet
units is provided in the additional disclosures in accordance
with the Austrian Insurance Supervision Act (VAG) in the
notes to the consolidated financial statements starting on
page 146.
Other mandatory disclosures
RESEARCH AND DEVELOPMENT
Although VIG companies do not perform any research a
c-
tivities as defined in § 243 (3) (2) UGB, they contribute their
expertise to the development of insurance-specific software
models. VIG Holding and – for projects – the VIG companies
also cooperate with Digital Impact Labs Leipzig, Plug & Play
and VENPACE, a start-up initiative (investment and cor-
porate building) that is located in Germany and jointly
funded with other insurance companies, in order to identify
technological developments in the market more quickly and
internalise them if necessary. The VIG Group also indirectly
promotes research activities through its participations in
ISTCube to increase basic research in Austria and APEIRON
to support research in the biotech and pharmaceutical
areas and the fight against COVID-19. viesure was also
established as an internal “innovation hub” focusing mainly
on Austria.
HOLDINGS, PURCHASE AND SALE OF OWN SHARES
Detailed information on § 243 (3) (3) UGB is availab
le in Note
8. Consolidated shareholders’ equity starting on page 106
of the notes to the consolidated financial statements.
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20
Annual Financial Report 2021
INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM
I
N THE ACCOUNTING PROCESS
Preparation of the consolidated financial statements includes
all activities required for presentation and disclosure of the
net assets, financial position and results of operations of the
Group in accordance with the provisions of the law and the
IFRS. The consolidated financial statements consist of the
balance sheet, income statement, statement of compre-
hensive income, statement of changes in equity, cash flow
statement, segment report and the notes to the consoli-
dated financial statements, which disclose significant ac-
counting policies and explanatory notes. The financial state-
ment process includes the aggregation of all data from ac-
counting and upstream processes for the annual financial
statements.
The internal control system is implemented in the Group
accounting process in accordance with the five elementary
components of the COSO (Committee of Sponsoring Or-
ganisations of the Treadway Commission) framework model
for internal control.
Control environment
The organisational structure consists of the local accounting
departments of the individual companies and the Group ac-
counting department at the VIG Holding headquarters in Vienna.
The accounting departments of the VIG companies prepare
both local GAAP and IFRS financial statements and then send
the IFRS figures to the Group accounting department.
The IFRS financial statements are prepared in accordance
with uniform Group accounting policies. The Group fully ap-
plies the rules of IFRS 4 with respect to the valuation of in-
surance policies. Accordingly, the values recognised under
applicable national law are carried over to the IFRS consoli-
dated financial statements.
Standardised software is used to prepare the consolidated
financial statements. VIG companies mainly use this soft-
ware to report their data, most of which is imported into the
system as an upload or directly entered on site. The Group
accounting department consolidates the data and prepares
the consolidated financial statements.
Risk assessment
The annual financial statement process has been docu-
mented in order to identify risks in the accounting process
and eliminate them as far as possible. The documentation
covers the entire process all the way from data entry by the
employees of VIG companies and automatic and manual
controls and analyses during the consolidation process, to
publication of the final annual report.
Control measures
IFRS accounting policies that apply across the Group were
set down in a Group accounting manual (IFRS application)
that is to be applied by all companies included in the con-
solidated financial statements. The goal is to ensure uniform
implementation of the IFRS across the Group. The manual
is reviewed each year and updated or amended when
necessary, and is sent to the responsible people in the local
reporting departments together with additional information
on Group-wide reporting requirements each time before the
financial statements are prepared. The subsidiaries are re-
sponsible in the control system for compliance with the
Group-wide accounting policies and for proper and timely
performance of their accounting-related processes.
The Finance department of VIG Holding performs both
automatic (using validations) and manual checks (perfor-
mance analyses and plausibility checks) of the financial
statement data that is received. Additional checks in the
form of control calculations and reconciliation of intragroup
transactions – in particular reinsurance and financing bal-
ances – are performed to identify and, if necessary, correct
or eliminate any differences.
In addition, an earnings reconciliation statement is prepared,
the accuracy of individual parts of the consolidated financial
statements is checked, and a plausibility check is per-
formed for the consolidated financial statements as a whole
to ensure that the presentation is complete and correct.
The accounting employees also work closely with the
Planning and Controlling department (e.g. variance analyses),
primarily with respect to performance analyses, when the fi-
nancial statements are prepared. The data are also regularly
provided to the Managing Board for review and checking.
V
IENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
21
In order to ensure that the annual report is completed cor-
rectly and on time by the publication deadline, strict dead-
lines are set for the quarterly and annual financial state-
ments and the VIG companies are informed of these dead-
lines at the end of the 3
rd
quarter at the latest for the coming
financial year. In this way, the department preparing the
consolidated financial statements ensures in advance that
the VIG companies align their processes with the deadlines
and can therefore send their data on time.
Information and communication
The intensive collaboration with other areas of the Company,
in particular Controlling, generates a lively exchange of infor-
mation and communications.
In addition to the annual report at the end of each financial
year, a half-year report was published in accordance with
IAS 34 and statutory provisions.
The Investor Relations department is responsible for re-
porting to VIG Holding shareholders. This takes place both
in personal meetings and via the Company website. Share-
holders and other interested parties are provided with ac-
cess to annual and interim reports, and to regularly updated
information on key figures, share prices, the financial calen-
dar, ad hoc news and other relevant topics.
Monitoring
The Finance department is responsible for preparing the
Group annual report. Quarterly reports are provided to the
Managing Board and Supervisory Board to ensure regular
monitoring of the internal control system. Risks are contin-
uously monitored by internal cross-departmental Group
controls (e.g. Finance department – Planning and Control-
ling).
The Internal Audit department also performs quality assur-
ance. It performs independent, objective audit procedures to
examine the structure and effectiveness of internal control
systems and the value and optimisation potential of opera-
tional processes. The Internal Audit department helps the
organisation achieve its objectives by systematically evalu
ating the effectiveness of risk management, the control
system and the governance process, including all relevant
key functions within the Company, and providing appro-
priate recommendations for improvement.
Group-wide guidelines exist in order to standardise the
handling of significant risks throughout the Group, and also
provide a tool for risk monitoring. Local management is re-
sponsible for implementing these guidelines in the individual
VIG companies.
The auditor takes the internal control system into account
during the financial statement audit to the extent that it is
relevant to preparation of the consolidated financial state-
ments. The auditor also assesses the effectiveness of the
risk management system in accordance with Rule 83 of the
Austrian Code of Corporate Governance.
CAPITAL, SHARE, VOTING AND CONTROL RIGHTS AND
A
SSOCIATED AGREEMENTS
The Company has share capital of EUR 132,887,468.20. It
is divided into 128,000,000 no-par value ordinary bearer
shares with voting rights, with each share representing an
equal portion of the share capital. The number of shares
issued remains unchanged since the previous financial year.
Further information on the anticipatory resolutions and au-
thorisations of the Managing Board in general meetings in
accordance with § 267 (3a) in conjunction with § 243a (1)
UGB is provided in Note 8. Consolidated shareholders’
equity starting on page 106 of the notes to the consolidated
financial statements.
CONSOLIDATED NON-FINANCIAL REPORT
VIG Holding is publishing a separate consolidated no
n-
financial report for financial year 2021 in accordance with §
267a of the Austrian Commercial Code (Unternehmens-
gesetzbuch – UGB). It is available in printed form and online
on the VIG Insurance Group website (www.vig.com) in the
“Corporate Responsibility” menu section under “Downloads”.
Group management report | Consolidated financial statements | Management report | Annual financial statement s | Service information
22
Annual Financial Report 2021
CORPORATE GOVERNANCE
VIG Holding is committed to application and complian
ce
with the January 2021 version of the Austrian Code of Cor-
porate Governance and publishes a consolidated corporate
governance report on the website at www.vig.com under
“Investor Relations”.
OUTSOURCING DISCLOSURES
The outsourcing disclosures required under § 156 (1)
(1) in
conjunction with § 109 VAG are discussed in more detail
below.
VIG Holding
A resolution was adopted allowing Group-internal and ex-
ternal service providers to provide IT services for VIG Hold-
ing. Outsourcing agreements that had been approved by
the supervisory authority existed in 2021 with IBM Austria
(Internationale Büromaschinen Ges. m.b.H.) and the Group-
internal IT system provider twinformatics GmbH, both head-
quartered in Austria. twinformatics GmbH has also assumed
full responsibility for all IT services for the Austrian VIG insur-
ance companies and concludes any sub-outsourcing re-
quired for this purpose while observing statutory and regu-
latory requirements and after consulting with the VIG insur-
ance companies. In addition to these outsourcing agree-
ments, VIG Holding has not outsourced any critical or im-
portant functions or business activities.
VIG Insurance Group
Outsourcing took place in the following areas, in particular,
in the Group:
• IT (in particular the operation and maintenance of
operating modules, computing centre operation,
application development services, data storage)
• Claims handling
The four governance functions were individually outsourced
by the operating insurance companies of the Group, in par-
ticular the internal audit and actuarial functions and related
activities.
While governance functions in VIG Insurance Group were
predominantly outsourced to other Group companies, criti-
cal or important activities in the IT and claims handling areas
were outsourced both inside and outside the Group.
The notification of local supervisory authorities about the
outsourcing of critical or important functions or activities or
the approval of such outsourcing by these authorities was
done by the companies concerned in accordance with ap-
plicable national legal requirements.
Expected development and risks of the Group
SIGNIFICANT RISKS AND UNCERTAINTIES
The risk management system is firmly anchored in the man-
agement culture of the Company and is based on a clearly
defined, conservative risk policy, extensive risk expertise, a
developed set of risk management tools and risk-based
Managing Board decisions. The detailed risk report for VIG
Insurance Group is provided in the notes to the consoli-
dated financial statements starting on page 68.
For information on the financial instruments used for invest-
ments, please see the notes to the consolidated financial
statements (Principles of significant accounting policies)
and the risk report (starting on page 68).
EXPECTED DEVELOPMENT – OUTLOOK FOR 2022
ECONOMIC OUTLOOK
At the beginning of the year, before the development
s in
Ukraine, which are mainly addressed at the end of this
section, the focus in the eurozone was on the pandemic
and associated containment measures, which could con-
tinue to negatively affect private consumption and the pro-
pensity to invest in the short term. The following expecta-
tions from January 2022, which do not include potential
Ukraine effects, created hopes of normalisation in spite of
the still fragile and visibly impaired supply chains and the
situation on energy markets. The economic recovery was,
as a result, generally expected to continue in 2022, in spite
Group management report | Consolidated financial statements | Management report | Annual financial statement s | Service information
V
IENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
23
of short-term negative effects. Erste Group analysts there-
fore expected GDP growth of 4.4% for the eurozone in
2022. Further developments in the pandemic and the sit-
uation in Ukraine and all their possible effects remain the
biggest risks.
Even though inflation temporarily rose higher than expected
in 2021 and is expected to continue at the beginning of
2022, it is expected to drop again in the medium term due
to the onset of base effects and decreasing pressure on
energy prices. Inflation medium-term will depend on the la-
bour market situation and associated wage pressure.
The outlook for Austria in 2022 is influenced by opposing fac-
tors. On the one hand, increased progress in vaccinating the
population against COVID-19, strong private consumption
and the announced tax reform should pave the way for a
solid recovery. The tax reform is expected to support house-
hold consumption and business investment starting in mid-
2022, while grants from the EU recovery fund should sup-
port public investment. On the other hand, infection dynam-
ics, potential travel warnings and restrictions, labour short-
ages and ongoing supply bottlenecks represent downside
risks for economic activity. Based on this, the Erste Group ex-
pects the Austrian economy to record average growth of 3.5%
in 2022.
In the CEE region, the continued robust labour market and a
gradual reduction of backlock demand should provide sig-
nificant support for further recovery. Regular EU funding and,
in particular, the recovery fund should have a noticeable ef-
fect on investments (with some political risk of Poland and
Hungary not receiving these funds). In addition to the situa-
tion in Ukraine, risks related to the COVID-19 pandemic and
supply chain bottlenecks also exist here. The more that any
restrictions are lifted or downside risks lose their effect, the
sooner the region will regain its full potential. The effects of
the Russian invasion of Ukraine, which are currently still diffi-
cult to assess, will in any case have a negative impact on
the growth outlook in the region. As a result, regional GDP
growth of only 3.0% is expected for 2022. The pressure on
prices due to base effects and, in particular, energy prices is
also expected to continue in 2022. Inflation is expected to
remain high for at least the first half of 2022. Although infla-
tion is expected to decline during the course of the year as
intermediary effects decrease, it is expected to remain higher
than the pre-pandemic level, in part because of the relatively
strong influence of the labour market. The Erste Group ana-
lysts therefore expect an inflation rate of 9.7% in 2022 fol-
lowed by a noticeable decline in the price level in 2023.
The Russian attack on Ukraine at the end of February 2022
creates increased uncertainty for general economic devel-
opment and therefore also for economic development in the
CEE region and Austria. It was impossible to estimate the
consequences at the editorial deadline. Economic depen-
dency due to trade with Russia is relatively manageable,
given that Russia is not among the top ten export desti-
nations for the CEE region. Any sanctions against Russia
should also have a relatively manageable effect on the local
economies of the region. A general increase in uncertainty
could nevertheless stand in the way of further recovery from
the pandemic in the region. In particular, given that the re-
gion obtains a large part of its gas imports from Russia, fur-
ther increases in energy prices and increases in the prices
of other commodities for which Russia is a major exporter
could drive inflation higher in Austria and the CEE region.
The extent to which further increases in energy costs (or
even reduced availability) might lead to production bottle-
necks in individual industries remains to be seen. Since the
conflict is so close, the yields on bonds from the region will
likely increase due to risk premiums. This adds another sig-
nificant factor to the question facing the European Central
Bank (ECB) about how it should design its monetary policy.
OUTLOOK FOR VIG INSURANCE GROUP
As a market leader in Central and Eastern Europe, VI
G In-
surance Group with its more than 25,000 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 and initiated together
with the CEOs of the VIG insurance companies based on
trends and developments in the insurance business and is
aimed at further increasing the premium volume and im-
proving the combined ratio. Based on the new strategy and
current conditions, a range of 150 to 200% was specified
for the VIG Group solvency ratio without taking into account
transitionals for underwriting provisions used by some indi-
vidual Group companies. The dividend policy, which pro-
vides for a distribution in the range of 30 to 50% of Group
net profits, remains unchanged. The dividend per share will
continue to be aligned with the Company’s performance.
24
Annual Financial Report 2021
The Managing Board of Vienna Insurance Group will pro-
pose increasing the dividend to EUR 1.25 per share for
2021. This corresponds to an increase of 66.7% compared
to the previous year and a dividend payout ratio of 42.6%.
In addition to creating sustainable value and achieving sus-
tainability objectives, one of the key objectives of the pro-
gramme is to expand the leading market position in Central
and Eastern Europe, with the aim of achieving at least a top
3 position in each CEE market, with the exception of Slovenia.
The planned acquisition of the CEE business of the Dutch
company Aegon N.V., which was not yet finalised by the edi-
torial deadline, is a major step in this direction. The acquisition
is expected to be formally concluded in 2022.
The further development of the financial year 2022 will re-
main influenced by uncertainty factors especially associated
with the war in Ukraine and its unforeseeable consequences.
Furthermore, the ongoing pandemic, inflation, high com-
modity prices, supply chain problems and resource scarcity
are included among the factors that lead to increased risks
and may affect VIG markets accordingly. The consequences
of these uncertainty factors and the resulting effects on the
business development in 2022 cannot currently be estimated.
For 2022, we are aiming for a positive operating perfor-
mance subject to the aspects mentioned and taking into
account the fact that the VIG Group has managed the cur-
rent challenges in its operating insurance business very well
up to this point.
Vienna, 16 March 2022
The Managing Board:
Elisabeth Stadler
General Manager (CEO),
Chairwoman of
the Managing Board
Hartwig Löger
Deputy General Manager,
Deputy Chairman of the
Managing Board
Liane Hirner
CFRO, Member of
the Managing Board
Peter Höfinger
Member of
the Managing Board
Gerhard Lahner
COO, Member of
the Managing Board
Gábor Lehel
CIO, Member of
the Managing Board
Harald Riener
Member of
the Managing Board
Peter Thirring
CTO, Member of
the Managing Board
G
roup management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
25
Consolidated
financial
statements
CONSOLIDATED FINANCIAL STATEMENTS IN
ACCORDANCE WITH INTERNATIONAL FINANCIAL
REPORTING STANDARDS (IFRS)
31/12/2021
Reporting period 1/1/2021–31/12/2021
Reporting date for comparative consolidated
balance sheet data 31/12/2020
Reporting period for comparative consolidated
income statement data 1/1/2020–31/12/2020
Currency EUR
26
Annual Financial Report 2021
CONSOLIDATED BALANCE SHEET
Assets Notes 31.12.2021
31.12.2020
in EUR '000
Intangible assets 1, A 1,744,16 9
1,733,07 7
Right-of-Use Assets 173,348
185,354
Investments 2, B 34,809,7 90
34,901,1 86
Property 2,850,58 8
2,507,41 3
Owner-occupied property 472,303
477,469
Investment property 2,378,28 5
2,029,94 4
Shares in at equity consolidated companies 276,913
291,561
Financial assets 31,682,2 89
32,102,2 12
Financial investments for unit- and index-linked life insurance 3, C 8,525,331
7,968,03 9
Reinsurers' share in underwriting provisions 4, D 1, 564,605
1,396,49 2
Receivables 5, E 2, 067,188
1,699,15 9
Tax receivables and advance payments out of income tax F 135,053
275,041
Deferred tax assets 6, F 311,447
136,728
Other assets 7, G 39 0,893
387,845
Cash and cash equivalents 2,456,33 3
1,745,14 7
Total 52,178,1 57
50,428,0 68
Liabilities and shareholdersʾ equity Notes 31.12.2021
31.12.2020
in EUR '000
Shareholders' equity 8 5,597,94 8
5,285,76 6
Share capital and reserves 5,478,21 7
5,162,73 8
Non-controlling interests 119,731
123,028
Subordinated liabilities 9, K 1,461,286
1,463,90 9
Underwriting provisions 10, H 32,546,227
32,230,0 55
Underwriting provisions for unit- and index-linked life insurance 11, I 8,188,79 3
7,617,21 6
Non-underwriting provisions 12, J 890, 189
876,809
Liabilities excl. Subordinated liabilities 13, K 2,900,28 0
2,254,30 6
Tax liabilities out of income tax F 243,382
290,998
Deferred tax liabilities 6, F 218,884
267,870
Other liabilities 131,168
141,139
Total 52,178,1 57
50,428,0 68
The numbers and letters shown for individual items in the consolidated balance sheet and consolidated income statement
refer, among other things, to detailed disclosures for those items in the notes to the consolidated financial statements. The
numbers refer to the detailed disclosures in the Notes to the consolidated balance sheet starting on page 92. The letters
refer to the explanatory text in the Accounting policies section starting on page 42.
Primary financial statements
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
27
CONSOLIDATED INCOME STATEMENT
Consolidated income statement Notes 2021
2020
in EUR '000
Net earned premiums – retention L 9,705,63 3
9,336,58 5
Premiums written – retention 9,878,59 4
9,415,84 4
Premiums written – gross 15 11,002,566
10,428,4 54
Premiums written – reinsurers´ share -1,123,97 2 -1,012,61 0
Change in unearned premiums – retention -172,9 61 -79,25 9
Change in unearned premiums – gross -17 9,621 -86,110
Change in unearned premiums – reinsurers´ share 6,660
6,851
Financial result excl. result from shares in at equity consolidated companies 16 607,01 8
624,791
Income from investments 1,159,520
1,263,78 9
Expenses for investments and interest expenses -552,502 -638,998
Result from shares in at equity consolidated companies 17 24,872
-28,510
Other income 18 165,78 9
145,661
Expenses for claims and insurance benefits – retention 19 -7,136,561 -7,030,56 9
Acquisition and administrative expenses 20 -2,536,828 -2,328,47 9
Other expenses 18 -317,90 2 -232,222
Business operating result 512,021
487,257
Impairments of goodwill 0
-119,223
Impairments of intangible assets excluding goodwill -688 -22,172
Result before taxes 511,333
345,862
Taxes 21 -123 ,339 -103,1 94
Result for the period 387,994
242,668
thereof attributable to shareholders 375,730
231,513
thereof Non-controlling interests 12,264
11,155
Earnings per share* (in EUR) 22 2.9 4
1.81
*The undiluted earnings per share equals the diluted earnings per share (in EUR).
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Consolidated statement of comprehensive income 2021
2020
in EUR '000
Result for the period 387,994
242,668
Other comprehensive income (OCI) -263,434 30,369
Items that will not be reclassified to profit and loss in subsequent periods 28,777
9,409
+/- Underwriting gains and losses from provisions for employee benefits 52,969
15,951
+/- Deferred profit participation -14,515 -3,555
+/- Deferred taxes -9,677 -2,987
Items that will be reclassified to profit or loss in subsequent periods -292,2 11 20,960
+/- Exchange rate changes through equity 46,153
-109,582
+/- Unrealised gains and losses from financial assets available for sale -819,153 297,778
+/- Cash flow hedge reserve -43 -32
+/- Share of other reserves of at equity consolidated companies 178
1,167
+/- Deferred mathematical reserve 77,247
-17,300
+/- Deferred profit participation 323,279
-116,017
+/- Deferred taxes 80,128
-35,054
Comprehensive income for the period 124,560
273,037
thereof attributable to shareholders 115,433
262,003
thereof Non-controlling interests 9,127
11,034
28
Annual Financial Report 2021
CONSOLIDATED SHAREHOLDERS’ EQUITY
Development Share
capital
Capital reserves Retained
earnings
Other reserves Subtotal*
Non-
controlling
interests
Total
Hybrid
capital
Others
Currency
reserve
Others
in EUR '000
As of 1 January 2020 132,887
0
2,109,00 3
2,426,76 5
-133,0 88
538,547
5,074,11 4
116,579
5,190,69 3
Changes in scope of conso-
lidation/ownership interests -26 ,179
0
0
-26,179
3,604
-22,575
Comprehensive income for
the period
231,513
-108,0 80
138,570
262,003
11,034
273,037
Other comprehensive income
excluding currency changes 138,570
138,570
1,381
139,951
Currency change -108,080
-108,08 0
-1,502
-109,582
Result for the period 2 31,513
231,5 13
11,155
242,668
Dividend payment -147,200
-147,20 0
-8,189
-155,389
As of 31 December 2020 132,887
0
2,109,00 3
2,484,89 9
-241,1 68
677,117
5,162,73 8
123,028
5,285,76 6
As of 1 January 2021 132,887
0
2,109,00 3
2,484,89 9
-241,1 68
677,117
5,162,73 8
123,028
5,285,76 6
Issuance of hybrid capital 300, 000
0
300,000
0
300,000
Changes in scope of conso-
lidation/ownership interests
-3,954
0
0
-3,954
3,521
-433
Comprehensive income for
the period 375,730
45,349
-305,6 46
115,433
9,127
124,560
Other comprehensive income
excluding currency changes
-305,646
-305,646
-3,941
-309,587
Currency change 45,3 49
4 5,349
804
46,153
Result for the period 3 75,730
375,7 30
12,264
387,994
Dividend payment -96 ,000
-9 6,000
-15,945
-111,945
As of 31 December 2021 132,887
300,000
2,109,00 3
2,760,67 5
-195,8 19
371,471
5,478,21 7
119,731
5,597,94 8
*The above subtotal equals the equity attributable to shareholders and other capital providers of the parent company.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
29
CONSOLIDATED CASH FLOW STATEMENT
Change in cash and cash equivalents 2021
2020
in EUR '000
Result for the period 387,994
242,668
Change in underwriting provisions net 409,464
-496,340
Change in underwriting receivables and liabilities (incl. deposits on assumed reinsurance business) -289,538 -38, 154
Change in other receivables and other liabilities (excl. leases) 137,117
76,321
Change in financial assets recognised at fair value through profit and loss (incl. held for trading) -17,361 -14,7 56
Gain/loss from disposal of investments -75,451 -132,379
Appreciation/depreciation of investments 88,110
129,354
Change in provisions for pensions and similar obligations and provisions for other employee benefits -48,881 -2,311
Change in deferred taxes -141,908 -95,2 63
Change in intangible assets 151,123
286,510
Change in right-of-use assets and lease receivables and liabilities 7,523
65
Change in other balance sheet items 49,859
-55,569
Other cash-neutral income and expenses
1
-135,913 410,474
Cash flow from operating activities 5 22,138
310,620
Payments for the acquisition of subsidiaries 0
-8,895
Cash inflow from the sale of available for sale financial assets 2,818,46 1
2,699,73 3
Payments for the acquisition of available for sale financial assets -3,447,02 1 -3,360,99 0
Cash inflow from disposals/repayments of held to maturity financial assets 141,908
425,385
Payments for the acquisition of held to maturity financial assets -163,139 -156,93 4
Cash inflow from the sale of property 14,892
7,783
Payments for the acquisition of property -296,069 -152,91 1
Cash inflow for the sale of intangible assets 1,709
4,606
Payments for the acquisition of intangible assets -139,749 -117,46 2
Change in financial investments for unit- and index-linked life insurance 265,528
695,280
Change of loans 425,516
-102,570
Change in other investments (excl. deposits on assumed reinsurance business) -37,576 165,623
Cash flow from investing activities -415,5 40 98,648
Proceeds from the issuance of hybrid capital 300,000
0
Cash outflows from subordinated liabilities -68,341 -64,518
Dividend payments -111,945 -155,38 9
Cash inflow from other financing activities 52 3,000
153,239
Cash outflow from other financing activities -16,460 -23 ,682
Cash outflows from lease liabilities -28,535 -33,2 82
Cash flow from financing activities 597,719
-123,6 32
Change in cash and cash equivalents 704,317
285,636
Cash and cash equivalents at beginning of period
2
1,745,14 7
1,443,35 8
Change in cash and cash equivalents 704,317
285,636
Changes in scope of consolidation 7,957
30,603
Effects of foreign currency exchange differences on cash and cash equivalents -1,088 -14,45 0
Cash and cash equivalents at end of period
2
2,456,33 3
1,745,14 7
1
The non-cash income and expenses are primarily exchange rate changes.
2
The amount of cash and cash equivalents at the beginning and the end of period correlates with position cash and cash equivalents on the asset side and consists of cash on hand and overnight deposits.
30
Annual Financial Report 2021
Additional information statement of consolidated cash flows 2021
2020
in EUR '000
Received interest
1
675,985
707,750
Received dividends
1
43,675
46,777
Interest paid
2
70,929
70,424
Income taxes paid
1
153,531
210,520
Expected cash flow from reclassified securities 7,129
6,086
Effective interest rate of reclassified securities 3.82%
3.80%
1
Income tax payments, received dividends and received interest are included in the cash flow from operating activities.
2
Interest paid result primarily liabilities from financing activities.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
31
PRINCIPLES OF SIGNIFICANT ACCOUNTING POLICIES
GENERAL INFORMATION
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe is a public limited company and one of the leading insur-
ance groups in Central and Eastern Europe with its registered office located at Schottenring 30, 1010 Vienna, Austria.
Wiener Städtische Versicherungsverein, which also has its registered office in Vienna, is the majority shareholder of VIG
Holding. It is also the ultimate parent company and therefore includes VIG Holding and its subsidiaries in its consolidated
financial statements. The insurance companies of VIG Insurance Group offer insurance services in the life, health and prop-
erty and casualty areas to more than 22 million customers in 30 countries.
PRINCIPLES OF SIGNIFICANT ACCOUNTING POLICIES
The consolidated financial statements were prepared
in accordance with the International Financial Reporting Standards
(IFRS) as adopted by the European Union, and the applicable provisions of § 245a (1) of the Austrian Commercial Code
(Unternehmensgesetzbuch – UGB) and Chapter 7 of the Austrian Insurance Supervision Act (Versicherungsaufsichtsgesetz
– VAG).
The significant accounting policies used in the preparation of the consolidated financial statements are presented in the
Accounting policies section starting on page 42. The policies described were applied consistently during the reporting
periods presented in these financial statements. Preparing consolidated financial statements in accordance with the IFRS
requires the Managing Board to make estimates and assumptions in connection with the accounting policies. Areas with
greater leeway for discretion, highly complex areas, or areas involving assumptions and estimates that are of critical impor-
tance to the consolidated financial statements are listed on page 39.
Amounts were commercially rounded to improve readability and, where not indicated otherwise, are shown in thousands
of euro (EUR '000). Calculations, however, are done using exact amounts, which may lead to rounding differences.
Changes in accounting policies
A subtotal for the Group operating result was added to the income statement in financial year 2021. The impairments of
intangible assets and reversals of impairments of intangible assets items are now no longer shown in other income and
expenses, but instead between the Group operating result and the result before taxes.
Except for the following changes, the accounting policies indicated have been applied consistently in all of the periods
shown in these consolidated financial statements. Unless otherwise indicated, the standards that are applicable for the
first time, if relevant, have no or no material effect on the financial statements.
Standards applicable that are used for the first time in the Group Annual Report
Amendments to IFRS 16 Rent reductions in connection with COVID-19 after 30 June 2021 onwards
Amendments to IFRS 9, IAS 39 and IFRS 7 IBOR Reform Phase 2
AMENDMENTS TO IFRS 16
The IASB published an adjustment to IFRS 16 concerning COVID-19-related rent reductions in April 2020. The amendment
to IFRS 16 would require reductions in lease payments related to COVID-19 that do not lead to a repayment to the lessor
to be recognised through profit and loss.
Notes to the consolidated financial statements
32
Annual Financial Report 2021
COVID-19-related deferrals do not lead to an adjustment of lease liabilities or usage rights in the form of a modification, but
are instead treated only as a payment deferral. If the deferral is long-term (more than 12 months), the time value of money
must be taken into account for the liability being recognised. The application option for the IFRS 16 amendment was extend-
ed to 30 June 2022 in April 2021.
The Group is applying the IFRS 16 amendment and recorded a positive effect of EUR 323,000 in the income statement in
the current financial year.
The following standards have already been endorsed by the European Union or are currently in the endorsement process.
Mandatory application is required in the future.
New standards and changes to current reporting standards Applicable as of
1
Those already adopted by the EU
IFRS 9 Financial assets 1.1.2018
2
Amendments to IFRS 9 Prepayment features with negative compensation 1.1.2019
2
Amendments to IFRS 3 Changes of the references to the framework concept in IFRS Standards 1.1.2022
IAS 37 Onerous contracts: costs of contract performance 1.1.2022
All IFRS Annual improvements (Cycle 2018–2020) 1.1.2022
IAS 16 Income before qualified use 1.1.2022
IFRS 17 incl. amendments to IFRS 17 Insurance contracts 1.1.2023
Amendments to IAS 1 and IFRS Practice Statement 2 Definition of materiality in connection with accounting policies 1.1.2023
3
Amendments to IAS 8
Definition of accounting estimates and distinguishing them from changes
in accounting policies
1.1.2023
Those which are not or not yet adopted by the EU
IFRS 14 Regulatory Deferral Accounts
EU decided this standard shall not be
transferred into EU law
Amendments to IFRS 10 and IAS 28
Sale or contribution of assets between an investor and its associated
company or joint venture
First-time application deferred for an
indefinite period
Amendments to IAS 1 Classification of liabilities as current or non-current 1.1.2023
Amendments to IAS 12
Deferred taxes relating to assets and liabilities arising from a single
transaction
1.1.2023
Amendments to IFRS 17
Comparative information for the first-time application of IFRS 9 and
IFRS 17
1.1.2023
1
The VIG Insurance Group is not planning early adoption of the provisions listed in the table.
2
First-time application for insurance companies can be delayed to 1 January 2023.
3
Please see the Estimates and discretionary decisions section on the topic of materiality.
Unless indicated otherwise, either no material effects from the standards listed in the table are expected, or the amendments
are not relevant.
IFRS 9 FINANCIAL INSTRUMENTS
The International Accounting Standards Board (IASB) issued the final version of IFRS 9 Financial instruments (IFRS 9) in
July 2014. The standard supersedes IAS 39 “Financial instruments: measurement” (IAS 39), which was previously applicable.
Although the new IFRS 9 standard came into effect on 1 January 2018, companies whose activities are predominantly in
the insurance business are permitted to use the optional exemption from IFRS 9 until IFRS 17 Insurance contracts (IFRS
17) comes into effect.
IFRS 17 was adopted into EU law in November 2021. Among other things, it set 1 January 2023 as the date of initial
application. To prevent potential accounting mismatches between IFRS 17 and IFRS 9, the date of initial application for
both standards is 1 January 2023.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
33
A company’s activities are predominantly in the insurance business if the share of the book value of all liabilities connected
with the insurance business exceeds 90%, or the share is between 80% and 90% and the insurance group does not
engage in a significant activity unconnected with the insurance business. VIG Insurance Group performed the required
calculations on the basis of 31 December 2015 and satisfies the criteria for deferral of IFRS 4 with a result of more than
90%. IFRS 9 will therefore be applied at the same time as IFRS 17 in VIG Insurance Group. For associated companies and
joint ventures that have applied IFRS 9 since 1 January 2018, VIG Insurance Group has chosen in accordance with IFRS 4
to include them in the consolidated financial statements without adjustment. IFRS 4 does not require regular evaluation of
the predominant business activity unless there is a change in the entity’s business activities. A new evaluation was also not
necessary in the current financial year.
On 9 December 2021, the IASB published amendments to IFRS 17 “Initial application of IFRS 17 and IFRS 9 – Comparative
information” concerning comparative information. The adjustment to IFRS 17 was due to the fact that unlike in the initial
application of IFRS 17, retrospective application is not necessary when IFRS 9 is first applied. As a result, there might not
be any comparative data for the financial assets. To counteract, the overlay approach can be used. The approach is only
applicable, if IFRS 19 and IFRS 9 are initially applied at the same time and no financial assets are restated in the 2022
comparative information for IFRS 9. The overlay approach is one of the two measurement options for financial assets during
the transitional period – the other being the deferral approach (optional exemption of initial application of IFRS 9 until 1
January 2023). This creates another possibility to minimise accounting mismatches due to differences in the measurement
of financial assets and insurance contracts during the transitional period.
A company that uses the overlay approach for a financial asset must publish the comparative information as if the classifi-
cation and measurement requirements of IFRS 9 applied to that financial asset. The comparative information is, therefore,
published as if the IFRS 9 classification and measurement requirements had already been applied in the comparative period.
The impairment requirements are not mandatory applicable if the overlay approach is used. Any difference between the
previous carrying amount of a financial asset and the amount that results when the overlay approach is used must be
recognised in equity.
Regardless of whether the overlay approach is used, the transitional provisions applicable upon initial application of IFRS 9
as at 1 January 2023 must be applied.
IFRS 9 basically includes provisions for the recognition, measurement and impairment of financial instruments and for hedge
accounting. IFRS 9 supersedes the previously relevant standard, IAS 39, in these areas. The revision primarily concerns the
classification and recognition of financial instruments. Financial assets will be classified in two groups in the future, at amor-
tised cost and at fair value.
Classification and measurement depends on the business model and contractual cash flows (SPPI criterion). The new
provisions also concern the accounting for impairment of financial assets. In addition to incurred losses (incurred loss model),
expected losses (expected credit loss model) must also be recognised now. Simplifications exist for trade receivables and
lease receivables. New requirements were also provided for hedge accounting. The objective is to orient hedge accounting
more to the economic risk management of the entity in the future.
When IFRS 9 is applied, the previous classification for "Financial assets available for sale" is no longer needed. In this
category, fair value changes were recognised directly in equity in other comprehensive income. In the case of disposals,
unrealised gains and losses are reclassified to profit or loss. IFRS 9 makes a distinction between equity and debt instruments
in the fair value measurement class. Equity instruments held for trading are measured through profit or loss for the period.
For equity instruments that are not held for trading, the irrevocable choice to perform measurement through other compre-
hensive income can be used at the time of first application. Unlike debt instruments, equity instruments measured through
other comprehensive income cannot be included in the profit for the period and are, therefore, presented in a separate item
34
Annual Financial Report 2021
under equity. In the case of debt instruments (e.g.
bonds, loans), the provisions in IAS 39 “Financial instruments available
for sale” apply analogously. Upon initial application of IFRS 9, it can be assumed that the new classification rules and the
new impairment model (ECL model (entry of risk provisions)) will lead to fluctuations in the profit or loss for the period.
Accounting mismatches can also occur with IFRS 17.
VIG Insurance Group uses a central subledger (tool) for the measurement of financial instruments. This tool allows the
processes associated with the recognition and measurement of financial instruments to be optimised and streamlined.
More than 95% of investments relevant to IFRS 9 are currently managed in this tool. This will allow consistent application
of IFRS 9, incl. calculation of ECL, in the future. Standard-compliant implementation of IFRS 9 is governed by the VIG Group
guidelines in VIG Insurance Group.
The classification of financial assets based on the SPPI criteria (Solely Payments of Principal and Interest) has already been
implemented. The IFRS 9 guidelines were finalised and rolled out in VIG Insurance Group as part of the IFRS 17/9 project.
The IFRS 9 guidelines include the methods used for uniform implementation of IFRS 9. They require financial assets that
were classified as “SPPI fail” (SPPI criterion not met) to be measured at fair value through profit or loss (FVtPL). Illiquid
portfolios for which VIG Insurance Group uses the “hold strategy” will be measured at amortised cost in the future. This
applies in particular to loans. With regard to the remaining financial assets, the trend with respect to IFRS 9 is in the direction
of measurement at fair value through other comprehensive income (FVtOCI). Investments for unit- and index-linked life
insurance, however, are to be allocated to the FVtPL category.
Fair value 31.12.2021 31.12.2020 Fair value changes
Financial assets SPPI
Other*
SPPI
Other*
SPPI
Other*
in EUR '000
Loans 1,902,525
477,132
2,370,223
510,006
5,369
377
Bank deposits 783,730
0
766,408
0
0
0
Other financial assets 23,887,089
4,865,156
24,443,927
4,634,034
-1,164,281 227,752
Bonds 23,887,089
1,207,420
24,443,927
1,431,886
-1,164,281 -58,851
Shares and other participations and other non-fixed-interest
securities 0
777,601
0
683,331
0
73,139
Investment funds 0
2,850,069
0
2,485,878
0
211,499
Derivatives 0
30,066
0
32,939
0
1,965
Financial investments for unit- and index-linked life insurance 178,694
8,346,637
87,206
7,880,833
43,062
760,628
Non-underwriting receivables 688,558
1,045
682,934
800
0
0
Cash and cash equivalents 2,456,333
0
1,745,147
0
0
0
*Financial instruments that satisfy the SPPI criteria (“SPPI pass”), but are held for trading or managed based on fair value, are to be reported under “Other”, not under SPPI.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
35
Book value 31.12.2021
SPPI financial assets rating categories AAA
AA
A
BBB
BB and lower
No rating
Total
in EUR '000
Loans and bank deposits 55,730
344,211
850,960
669,786
404,914
206,732
2,532,333
Other financial assets 2,192,933
7,265,995
7,828,410
5,275,249
997,030
231,576
23,791,193
Financial investments for unit- and index-linked life
insurance 0
47,629
42,861
60,143
28,420
-359 178,694
Non-underwriting receivables 331
647
17,128
731
19,435
650,340
688,612
Cash and cash equivalents 414
19,741
1,714,854
586,364
121,635
13,325
2,456,333
Book value 31.12.2020
SPPI financial assets rating categories AAA
AA
A
BBB
BB and lower
No rating
Total
in EUR '000
Loans and bank deposits 40,427
354,954
896,490
908,563
406,118
300,721
2,907,273
Other financial assets 2,227,059
7,485,316
8,276,283
5,209,386
682,505
177,324
24,057,873
Financial investments for unit- and index-linked life
insurance 0
7,510
19,125
29,207
23,048
8,316
87,206
Non-underwriting receivables 321
3,528
16,543
760
13,949
647,858
682,959
Cash and cash equivalents 70
13,513
1,138,667
290,614
110,025
192,258
1,745,147
SPPI financial assets with a significant risk of default 31.12.2021 31.12.2020
Book value
Fair value
Book value
Fair value
in EUR '000
Loans and bank deposits 422,691
427,313
441,798
449,144
Other financial assets 1,062,883
1,073,182
753,846
763,384
Financial investments for unit- and index-linked life insurance 28,267
28,267
22,960
22,960
Non-underwriting receivables 57,570
57,570
55,646
55,646
Cash and cash equivalents 122,686
122,686
154,999
154,999
IFRS 17 INSURANCE CONTRACTS
The IASB issued the final accounting standard for insurance contracts (IFRS 17) on 25 June 2020. During finalisation, the date
of initial application was deferred two years to 1 January 2023. In addition, the Board decided to align the effective date of
initial application of IFRS 9 for insurance companies with IFRS 17. The deferral of initial application of IFRS 17 resulted in the
comparative period also being deferred two years to 1 January 2022. IFRS 17 was published in the Official Journal of the
European Union on 23 November 2021. As a result, IFRS 17 will supersede the previous standard, IFRS 4, in the EU starting
as at 1 January 2023.
IFRS 4, which is still currently valid, is to be applied until IFRS 17 enters into effect. IFRS 4 allows local accounting practices
to be used for insurance contracts in the IFRS consolidated balance sheet. The IASB imposes uniform accounting policies
for insurance contracts for the first time in IFRS 17. VIG Insurance Group plans to apply IFRS 4 and comparative period
accounting in accordance with IFRS 17 at the same time during financial year 2022. Those figures will be published in
financial year 2023 as part of the initial application of IFRS 17.
36
Annual Financial Report 2021
IFRS 17 provides three measurement models for measur
ing insurance contracts:
• Measurement is performed, as a rule, using the general measurement model (GMM) based on a prospective method.
The model is based on the concept of contract fulfilment and uses current assumptions. When the GMM is used for
measurement, future cash inflows and outflows are discounted and a risk adjustment applied. First-time measurement
of insurance contracts results in either a profit margin (contractual service margin – CSM) that is distributed over the
term of the contract, or a loss component that is recognised immediately in the income statement. There are a number
of exceptions and special provisions for the GMM that concern groups of investment contracts with discretionary
participation features and reinsurance cessions as well as the two measurement models below.
• A simpler measurement model – the premium allocation approach (PAA) – may be used for short-term contracts and
low volatility insurance contracts. The simplified premium allocation approach is similar to the unearned premium model
currently used for accounting in the property and casualty line of business. They are different, however, in that the loss
reserve must also be accounted for using an expected present value and a risk adjustment.
• There is a mandatory measurement model for contracts that are eligible for profit participation and unit- and index-
linked life insurance – the variable fee approach (VFA). Measurement is, as a rule, performed according to the GMM, but
the CSM is variable in the VFA due to the profit participation.
Measurement units are determined using the following steps:
• Portfolio: Insurance contracts are combined into portfolios
• Group: Portfolios are divided into groups
• Groups are divided according to underwriting year (annual cohorts). The IFRS 17 adopted by the EU provides an
exception for the formation of annual cohorts for intergenerationally mutualised and cash-flow matched insurance
contracts.
For initial recognition, IFRS 17 requires insurance contracts that are subject to similar risks and managed together to be
combined into portfolios.
Each of these portfolios must be divided into at least the following groups:
• onerous contracts,
• contracts that have no significant possibility of becoming onerous and
• other contracts.
The most significant changes in the accounting of insurance contracts are:
• the use of current assumptions for measuring underwriting provisions,
• introduction of CSM for the unrealised future profits of a group of insurance contracts that is distributed over the term of
the contract,
• introduction of a risk adjustment to take account of the uncertainty in the cash flows from insurance contracts,
• elimination of savings components (investment component) as income,
• introduction of an OCI-option (other comprehensive income) to allow offsetting to eliminate accounting mismatches
between the asset and liabilities side that could occur, for example, with life insurance policies eligible for profit
participation, and
• fair value measurement of cash flows (discounting).
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
37
As part of the Group-wide IFRS 17 programme, in preparation for technical implementation of the standard, the IFRS 17
Group guideline for the comparative period that provides a detailed definition of the methodology to be used for VIG In-
surance Group was finalised in 2021. Practical guidelines were also implemented and training was offered across the Group.
Based on a comprehensive analysis of the accounting options, the OCI-option was identified as an essential option to
reduce inconsistent measurement of assets and liabilities to a minimum. Parallel to finalising the definition of the methodol-
ogy, a new central subledger for the measurement of insurance contracts, modified to meet VIG Insurance Group require-
ments, was implemented.
After successfully implementing the methods and systems, the focus of the project is on analysing the effects on the con-
solidated financial statements that cannot yet be conclusively quantified.
38
Annual Financial Report 2021
FOREIGN CURRENCY TRANSLATION
Foreign currency transactions
T
he separate financial statements of each subsidiary are prepared in the currency that generally prevails for the ordinary
business activities of the company (functional currency). Within VIG Insurance Group, the functional currency is generally
the local currency. Transactions not concluded in the functional currency are recognised using the mean rate of exchange
on the date of the transaction. Monetary assets and liabilities in foreign currency existing on the balance sheet date are
translated to euro using the mean rate of exchange on the balance sheet date.
A
ny resulting foreign currency gains and
losses are recognised through profit or loss.
Translation of separate financial statements in foreign currencies
Assets, liabilities, income and expenses are presented in euro, the reporting currency of VIG Holding.
All assets and liabilities reported in the separate financial statements are translated to euro using the mean rate of exchange
on the balance sheet date. Items in the income statement are translated using the average month-end mean rate of ex-
change. In the statement of cash flows, the mean rate of exchange on the balance sheet date is used for changes in
balance sheet items and the mean rate of exchange at the end of the period is used for changes in income statement items.
Currency translation differences, including those that result from accounting using the equity method, are recognised directly
in equity.
Currency End-of-period exchange rate Average exchange rate
31.12.2021
31.12.2020
2021
2020
1 EUR
≙
Albanian lek ALL 120.7600
123.7000
122.4423
123.7683
Bosnian convertible marka BAM 1.9558
1.9558
1.9558
1.9558
Bulgarian lev BGN 1.9558
1.9558
1.9558
1.9558
Georgian lari GEL 3.5040
4.0233
3.8056
3.5587
Croatian kuna HRK 7.5156
7.5519
7.5284
7.5384
Macedonian denar MKD 61.6270
61.6940
61.6276
61.6742
Moldovan leu MDL 20.0938
21.1266
20.9256
19.7436
Turkish new lira TRY 15.2335
9.1131
10.5124
8.0547
Polish zloty PLN 4.5969
4.5597
4.5652
4.4431
Romanian leu RON 4.9490
4.8683
4.9215
4.8383
Swiss franc CHF 1.0331
1.0802
1.0812
1.0705
Serbian dinar RSD 117.5821
117.5802
117.5736
117.5780
Czech koruna CZK 24.8580
26.2420
25.6405
26.4551
Ukraine hryvnia UAH 30.9226
34.7396
32.3009
30.8013
Hungarian forint HUF 369.1900
363.8900
358.5161
351.2494
N
ew Turkish lira (TRY)
According to economic experts, the low interest rate policy of the Turkish national bank is largely responsible for the historic
low of the Turkish lira. Developments with respect to the application of IAS 29 Hyperinflation are being monitored and in
financial year 2021 it was concluded that the criteria were not satisfied, in part due to the support measures announced by
the Turkish government in December.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
39
ESTIMATES AND DISCRETIONARY DECISIONS
Preparation of the consolidated financial statements requires that the Managing Board make discretionary assessments and
specify assumptions regarding future developments (estimates). These estimates and discretionary decisions could have a
material effect on the recognition and value of assets and liabilities, the disclosure of other obligations and the reporting of
income and expenses.
The book values of the items on the balance sheet date are shown in the consolidated balance sheet on page 26 or the
corresponding disclosures in the notes. Sensitivity analyses for assets and liabilities are presented in the risk report starting
on page 85.
Estimates and discretionary decisions
Underwriting provisions Details on page 50
Non-underwriting provisions
Details on page 39 and starting page
54
Financial instruments recognised at fair value (Level 3)
Details on page 39 and starting page
127
Impairment of goodwill Details on page 40
Valuation allowances for receivables and other (accumulated) impairment losses Details on page 40 and page 48
Value of deferred tax assets Details on page 40
Method of consolidation Details on page 41 and 55ff
Materiality Details on page 41
Non-underwriting provisions
This item primarily consists of provisions for pensions and similar obligations.
PROVISIONS FOR PENSIONS AND SIMILAR OBLIGATIONS
The present value of an obligation depends on a large number of factors based on actuarial assumptions. The assumptions
used to calculate the net liability (or assets) for obligations include a discount rate. Every change to these assumptions has an
effect on the book value of the obligation.
VIG Insurance Group calculates the appropriate discount rate at a minimum at the end of each year. This rate is used to
calculate the present value of the future expected cash outflows needed to satisfy the obligation. VIG Insurance Group
determines the discount rate using the interest rate on top quality industrial bonds that are denominated in the currency in
which the benefits will be paid and have maturities matching those of the obligations.
Other important assumptions used to calculate obligations are based on market conditions. Further information on sensi-
tivity analyses is provided in Note 12. Non-underwriting provisions starting on page 114. Details on the underlying assump-
tions can be found in the Accounting policies section under Provisions for pensions and similar obligations on page 54.
Financial instruments recognised at fair value (Level 3)
Suitable valuation methods are used to calculate the fair value of financial instruments that are not traded in active markets.
The assumptions used are based on market data available on the balance sheet date. To determine the fair value of many
financial assets that are not traded in active markets, VIG Insurance Group uses present value methods based on appropriate
interest rate models. Note 24. Financial instruments and fair value measurement hierarchy starting on page 127 provides further
information on the valuation process. Information on the impairment of financial assets is provided on page 47.
40
Annual Financial Report 2021
Impairment of goodwill
G
oodwill is tested for impairment at least once a year in accordance with the method explained on page 42 in the Impair-
ment of non-financial assets section. Estimates in this area primarily concern the projected earnings of the CGUs that the
calculations are based on, and specific parameters, in particular the growth rates and discount rates.
Sensitivities
Additional impairment needed
Cash flows
Growth rate
Discount rate
Cash flows and
discount rate
-10%
-1%p
+1%p -10% and +1%p
in EUR millions
Albania incl. Kosovo 2.9
0.9
2.6
5.7
Baltic States 4.4
11.6
45.9
Slovakia 2.4
Valuation allowances for receivables
The collectability of receivables is based on experience. Information on the recognition of potential impairment losses is
provided on page 48.
Value of deferred tax assets
Income taxes must be estimated for each tax jurisdiction in which VIG Insurance Group operates. The current income tax
expected for each taxable entity must be calculated and the temporary differences due to differences between the tax and
IFRS treatment of certain balance sheet items must be assessed. If temporary differences exist, as a rule they lead to the
recognition of deferred tax assets and liabilities in the financial statements based on the tax rate for each country.
The amount of the expected current and deferred tax liability or asset reflects the best estimate taking into account tax
uncertainties and, consequently, under application of IFRIC 23.
The Managing Board must make assessments and, taking into account tax uncertainties, judgements when calculating
current and latent taxes. Deferred tax assets are only recognised to the extent that it is probable they can be utilised. The
utilisation of deferred tax assets depends on the likelihood of achieving sufficient taxable income of a particular tax type for
a particular tax jurisdiction, while taking into account any statutory restrictions concerning maximum loss carryforward
periods.
VIG Insurance Group considers the following factors when assessing the probability of being able to utilise deferred tax
assets in the future:
• past results of operations,
• operating plans,
• loss carryforward periods,
• tax planning strategies and
• existing deferred tax liabilities.
Information on the existing group agreement for Austrian companies and some foreign companies is provided on page 50.
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
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
41
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 infor-
mation can be found under Taxes in the Accounting policies section starting on page 49 and in Note 6. Deferred taxes on
page 104.
Please also see the information in Note 31. Significant events after the balance sheet date on page 145.
Method of consolidation
Discretionary decisions by the Managing Board primarily concern determining the scope of consolidation for consolidated
companies.
Companies that were of material importance at the time of first consolidation generally continue to be included in the scope
of consolidation. Circumstances could arise, however, that lead to the Managing Board using its discretion to perform a
reassessment of the entire scope of consolidation. This could result in non-material companies that were consolidated in
the past being removed from the scope of consolidation again. Companies that, due to their business activities, have rev-
enues that are primarily generated and charged within the Group and do not generate any significant profits or losses, are
not included in the scope of consolidation unless they have cross-border operations.
Thresholds calculated based on previous quarterly financial statements and the latest annual financial statements are used
to determine the current scope of consolidation.
Materiality
Under IAS 1.31, only material information is to be presented in the financial statements. This applies even if a standard
specifies certain requirements or minimum requirements. The IASB’s aim with regard to this paragraph, in conjunction with
a Practice Statement published thereon, was to create the foundation for clear, understandable financial reporting based
on the most important information.
Discretionary leeway exists when deciding whether information concerns material or immaterial disclosures. The Managing
Board of the VIG Holding introduced the use of a threshold for determining the materiality of notes disclosures and asso-
ciated accounting policies in this Annual Report. If the threshold is not exceeded, information is only published in the Annual
Report if the information is judged to be material for the financial statement reader during the approval process based on
qualitative criteria.
42
Annual Financial Report 2021
ACCOUNTING POLICIES
INTANGIBLE ASSETS (A)
Goodwill
Goodwill is accounted for in the functional currency of each entity. Goodwill is measured at cost less accumulated impair-
ment losses. In the case of shares in at equity consolidated companies, goodwill is included in the adjusted book value of
the participation.
Other intangible assets
Purchased intangible assets are recognised on the balance sheet at cost less accumulated amortisation and impairment
losses. No intangible assets were created by the companies in the scope of consolidation. The corporate asset, SAP,
essentially consists of a bundle of purchased software modules that are prepared by in-house and third-party development
work for future use. With regular monitoring and assessment of the project, this ensures the recognition criteria for cap-
italising these expenses are met. With the exception of trademarks, all intangible assets have a finite useful life. The intangible
assets are therefore amortised over their period of use.
Average useful life in years from
to
Software 3
13
Software is amortised using the straight-line method. Software components are also examined on an event-driven basis to
see whether they can still be used. If there is a high probability that certain IT systems or programme sections can no longer
be used or no longer be fully used, a write-down must be made. If a change in useful life is determined during full use, the
amortisation period is changed to the new useful life.
In previous years trademarks with unlimited useful lives were identified as part of the purchase price allocation during ac-
quisition of the companies Asirom, BTA Baltic and Seesam. The unlimited useful life results from the fact that there is no
foreseeable end to their economic life. The fair value of the trademarks was determined during first-time consolidation using
the relief-from-royalty method. A “tax amortisation benefit” was taken into account in the relief-from-royalty method. The
Asirom trademark had a book value of EUR 13,648,000 (EUR 13,874,000), the BTA Baltic trademark had a book value of
EUR 37,000,000 (EUR 37,000,000) and the Seesam trademark had a book value of EUR 7,700,000 (EUR 7,700,000) on
31 December 2021.
Impairment
The subsidiaries are combined into cash-generating units (CGU groups) at the geographical country level for testing goodwill.
The CGU groups used for impairment testing correspond to the operating segments. The trademarks were also individually
tested for impairment using the relief-from-royalty method. Intangible assets with an indefinite useful life (goodwill and trade-
marks carried on the balance sheet) are tested when a triggering event occurs, including during the year, and at a minimum
at the end of the financial year.
As a rule, the value in use calculated using the discounted cash flow method is used as the recoverable amount for the
CGU group. In cases where the value in use is less than book value, fair value less selling costs is also calculated. Fair value
less cost of disposal is calculated using trailing stock exchange multipliers for the property and casualty and health lines of
business in all countries and for the life business outside Austria. For the life business in Austria the Market Consistent
Embedded Value is used.
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To calculate value in use, the cash flows available to shareholders of five planning years and the following perpetual annuity
are discounted. All subsidiaries prepare detailed plans in local currency for three years that are submitted in supervisory
board meetings and centrally checked for plausibility as part of the planning and control process. Extrapolation of the plans
for a further two years and the perpetual annuity is performed using key parameter projections (combined ratios, premium
growth, financial income) based on their past values and expected future market changes. The predicted cash flows for the
perpetual annuity are assumed to continue forever. Currencies are translated to euro using the exchange rate on the 31
December reporting date for the financial year.
All of the underwriting business assets are assigned to the CGU groups. In addition to goodwill and trademarks, these also
include all insurance portfolios and customer bases, investments, receivables and other assets. Underwriting provisions
and current liabilities are deducted from the book values. Assets accounted for in VIG Holding but used by the operating
companies are allocated to the CGU groups in the form of corporate assets. The cash flows of the CGU groups are ac-
cordingly adjusted for amortisation of the allocated corporate assets.
To calculate the discount rates, the capital asset pricing model (CAPM) is used to calculate a cost of equity capital. This is
done by adding country-specific inflation differentials, risk premiums and sector-specific market risk to the risk-free interest
rate (equal to the yield on German government bonds on the reporting date calculated using the Svensson method). The
base rate before inflation differentials was 0.12% (-0.14%). The market risk of 7.38% (8.39%) was multiplied by a beta factor
of 1.19 (0.95) that was calculated based on a specified peer group. The beta factor was calculated as a rolling beta with a
period of 8 quarters (previous year: 13 quarters).
The long-term growth rates are calculated during the financial year based on the compound annual growth rate (CAGR)
assuming that insurance penetration in the countries concerned starting in 2013 will converge in 50–70 years consistent
with the current situation in Germany. An inflation adjustment equal to half of the inflation included in the cost of equity was
added to the CAGR.
Impairments of intangible assets and reversals of impairments of intangible assets are included as separate items in the
income statement between the new subtotal for the Group operating result and the result before taxes.
44
Annual Financial Report 2021
CGU groups Discount rates Country risks Long-term growth rate
2021
2020
2021
2020
2021
2020
in %
Austria 9.27
8.19
0.39
0.38
1.50
1.50
Czech Republic 9.83
8.86
0.60
0.59
4.20–5.73
4.25–5.79
Poland 10.67
9.16
0.84
0.82
5.41–6.86
5.20–6.65
Albania incl. Kosovo 14.02
12.30
4.45
4.36
6.76
6.48
Baltic States 9.79
8.81
0.91
1.00
4.94–6.39
4.94–6.39
Bosnia-Herzegovina 16.62
14.16
6.43
6.30
6.00–8.12
5.38–7.49
Bulgaria 10.65
9.84
1.58
1.55
5.97–6.83
6.12–6.98
Croatia 11.70
10.33
2.47
2.42
5.25–7.18
5.13–7.06
Moldova 18.70
17.69
6.43
6.30
9.01
9.11
North Macedonia 12.41
11.48
3.56
3.49
5.87
5.98
Romania 12.08
10.95
2.18
2.13
5.84–7.97
5.84–7.97
Serbia 12.72
12.24
2.97
3.49
5.68–7.47
5.72–7.51
Slovakia 9.72
8.63
0.84
0.82
5.32–5.53
5.32–5.53
Ukraine 18.91
17.75
6.43
6.30
8.58–12.34
8.59–12.35
Hungary 12.23
11.34
1.88
2.13
6.25–6.59
6.21–6.55
Germany 8.88
7.81
0.00
0.00
1.50
1.50
Georgia 13.21
12.10
2.97
2.91
6.67
6.69
Liechtenstein 8.88
7.81
0.00
0.00
1.50
1.50
Turkey 25.51
22.72
5.44
5.33
10.68–13.28
9.88
Group Functions 9.27–12.72
8.19–12.24
0.39–2.97
0.38–3.49
1.50–7.47
1.50–7.51
The average increase in the discount rates is primarily due to the increase in the beta factor.
INVESTMENTS (B)
General information
In accordance with the relevant IFRS requirements, some VIG Insurance Group assets and liabilities are carried at fair value
in the consolidated financial statements. This concerns a significant portion of investments. VIG Insurance Group assigns
all financial instruments to one of the levels of the IFRS 13 measurement hierarchy. As a result of the decentralised organ-
isational structure of VIG Insurance Group, the individual subsidiaries are responsible for this fair value categorisation. This
takes account, in particular, of local knowledge of the quality of the individual fair values and any input parameters needed
for model valuation.
Fair values are determined using the following hierarchy specified in IFRS 13:
• The determination of fair value for financial assets and financial liabilities is generally based on price quotations in active
markets for identical assets or liabilities (Level 1).
• If a financial instrument is not listed and no market price quotations are available in active markets, fair value is deter-
mined using price quotations for similar assets or price quotations in inactive markets (Level 2). Standard valuation
models with inputs that are observable in the market are used for Level 2 measurements. These models are primarily
used for illiquid bonds (present value method) and structured securities.
• The fair value of certain financial instruments, in particular bonds from countries without active capital markets, and
property, is determined using valuation models with input factors that are generally unobservable in the market. These
models use, for example, transactions in inactive markets, expert reports and the structure of cash flows (Level 3).
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The table below lists the methods used and most important input factors for Levels 2 and 3. The calculated fair values can
be used for recurring and non-recurring measurements.
Pricing method Used for Fair Value Input parameters
Level 2 Observable
Present value method
Bonds; borrower's note loans; loans; securitised
liabilities and subordinated liabilities
Theoretical price Issuer, sector and rating-dependent yield curves
Libor market model present
value method
Bonds and borrower's note loans with other
embedded derivates
Theoretical price
Money market and swap curves; implied volatility surface;
cap & floor volatilities; issuer, sector and rating-
dependent yield curves
Present value method Currency futures contracts Theoretical price
Exchange rates; money market curves for the currencies
concerned
Present value method Interest rate/currency swaps Theoretical price
Exchange rates; money market and swap curves for the
currencies concerned
Option pricing models Stock options Theoretical price
Share prices on the valuation date; implied volatilities;
yield curve
Level 3 (Un-)observable
Option pricing models Stock options Theoretical price Share prices on the valuation date; volatilities; yield curve
Market value method Real estate Appraisal value
Real estate-specific income and expense parameters;
capitalisation rate; data on comparable transactions
Discounted cash flow-model Real estate Appraisal value
Real estate-specific income and expense parameters;
discount rate; indexes
Multiples approach Shares Theoretical price
Company-specific earnings figures; typical industry
multipliers
Discounted cash flow-model Shares Theoretical price Company-specific earnings figures; discount rate
Share of capital Shares Book value
Company-specific equity according to separate financial
statements
Amortised cost
Fixed income instruments (illiquid bonds, policy
loans, loans) with no observable input data for
comparable assets
Book value Cost-price; redemption price; effective yield
For further information, please see Note 24. Financial instruments and fair value measurement hierarchy starting on page 127.
The following table presents the relationships between balance-sheet items and classes of financial instruments according
to IFRS 7, incl. measurement methods:
Balance sheet items, IAS 39 categories and classes of financial instruments according to IFRS 7 Measurement method
Financial assets
Loans and other investments At amortised costs
Financial assets held to maturity At amortised costs
Financial assets available for sale At fair value
Financial assets recognised at fair value through profit and loss* At fair value
Financial investments for unit- and index-linked life insurance At fair value
Financial liabilities
Subordinated liabilities (other liabilities) At amortised costs
Liabilities to financial institutions (other liabilities) At amortised costs
Financing liabilities (other liabilities) At amortised costs
Derivative liabilities (other liabilities) At fair value
*Including held for trading
46
Annual Financial Report 2021
Property
Both owner-occupied and investment properties are reported under property. Property that is both self-used and investment
property is divided. For small amounts that do not exceed the 20% limit, the entire property is reported in the larger category
(80:20 rule).
Property is measured at cost minus accumulated depreciation and impairment losses. Cost comprises all costs incurred in
putting the asset into its present location in its present condition. Costs incurred in later periods are only capitalised if they
lead to a significant increase in future opportunities for use of the building (e.g. through building expansion or new building
construction). Owner-occupied and investment buildings are both depreciated using the straight-line method over the ex-
pected useful life. The following average useful lives are used in the calculation:
Average useful life in years from
to
Buildings 20
50
IMPAIRMENT OF PROPERTY
Property appraisals are performed at regular intervals for owner-occupied property and investment property by sworn and
judicially certified building construction and property appraisers. Fair value is calculated using the capitalised earnings meth-
od or market comparisons. Unless leased, the asset value method is generally only used for undeveloped land. The dis-
counted cash flow method is used in exceptional cases.
If the fair value is below the book value (cost minus accumulated depreciation and write-downs), the asset is impaired. In
this case, the book value is written down to fair value through profit or loss. The method used to test for impairment is also
used to test for a reversal of impairment. On each balance sheet date, a test is performed for indications that a reversal of
impairment has taken place. The book value after the reversal may not exceed the book value that would have existed,
taking into account depreciation, if no impairment had been recognised.
Both impairments and reversals of impairments are reported in the financial result in the income statement and are shown
starting on page 120. The fair values and level hierarchy according to IFRS 13 are shown in Note 24. Financial instruments
and fair value measurement hierarchy starting on page 127.
Financial assets
Financial assets are divided into the following categories in accordance with the requirements of IAS 39:
• Loans and other investments, other receivables,
• Financial assets held to maturity,
• Financial assets available for sale,
• Financial assets recognised at fair value through profit and loss and
• Financial assets held for trading.
On initial recognition, the corresponding financial assets are measured at cost, which equals fair value at the time of acqui-
sition. For subsequent measurement of financial assets, two measurement methods are used.
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AMORTISED COST
Loans and other investments, other receivables and financial assets held to maturity are subsequently measured at amor-
tised cost. The amortised cost is determined using the effective interest rate of the asset in question. A write-down is
recognised in profit or loss in the case of permanent impairment.
The current income recorded in the income statement is essentially interest income.
RECOGNISED AT FAIR VALUE
Non-derivative financial assets that are designated as available for sale and are not classified as loans and other investments,
other receivables, held-to-maturity financial assets or financial assets at fair value through profit or loss are also subsequently
measured at fair value. Fluctuations in value are to be recognised in other comprehensive income and are reported in equity
in other reserves. This does not include impairments that are recognised in profit and loss.
Upon disposal, the cumulative gains and losses recognised in other reserves in previous periods are transferred to the result
for the period (recycling).
Spot transactions are accounted for at the settlement date.
AMENDMENTS TO IAS 39 AND IFRS 7 RECLASSIFICATION OF FINANCIAL ASSETS
The IASB published amendments to IAS 39 and IFRS 7 in October 2008. The adjusted version of IAS 39 permits reclassifi-
cation of non-derivative financial assets (except for financial instruments that were measured using the fair value option
upon initial recognition) in the “held-for-trading” and “available-for-sale” categories.
The amendments to IAS 39 and IFRS 7 went into effect retroactively to 1 July 2008 and were applied prospectively from
the time of reclassification. Reclassifications performed in VIG Insurance Group before 1 November 2008 used fair values
as of 1 July 2008.
IMPAIRMENT OF FINANCIAL ASSETS
On each balance sheet date, the book values of financial assets not measured at fair value through profit or loss are tested
for evidence of impairment. Such evidence could be, for example, the debtor experiencing significant financial difficulties, a
high probability of insolvency proceedings, the loss of an active market for the financial asset, a significant change in the
technological, economic, legal or market environment of the issuer, or a permanent decrease in the fair value of the financial
asset below amortised cost. The Managing Board has considerable discretion when quantifying the influence of information
that could affect the creditworthiness, rating and/or earning power of a debtor.
Any impairment losses due to fair value lying below the book value are recognised in profit or loss. If any changes to the fair
value of available-for-sale financial assets were previously recognised directly in equity, these changes must be eliminated
from equity and recognised in profit or loss on the income statement. As a rule, impairment of equity instruments is to be
recognised if the average fair value during the last six months was consistently less than 80% of the historical cost of
acquisition and/or if the fair value as at the reporting date is less than 50% of the historical cost of acquisition.
48
Annual Financial Report 2021
FINANCIAL INVESTMENTS FOR UNIT- AND INDEX-LINKED LIFE I
NSURANCE (C)
Financial investments for unit- and index-linked life insurance provide cover for unit- and index-linked life insurance under-
writing provisions. The survival 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 performance of the financial investments. They are held in separate cover funds, and managed
separately from the other financial assets of VIG Insurance Group.
Since the changes in value are occasionally equal to the changes in value of the underwriting provisions, these financial
investments are valued in accordance with the requirements of IAS 39.9b. Financial instruments for unit- and index-linked
life insurance are therefore measured at fair value, and changes in value are recognised in the income statement.
REINSURERS’ SHARE IN UNDERWRITING PROVISIONS (D)
The reinsurers’ share in underwriting provisions is
measured in accordance with contractual provisions. The credit quality
of each counterparty is taken into account when the reinsurers’ share is measured. Information on the selection of reinsurers
is provided in the Financial instruments and risk management section on page 88.
RECEIVABLES (E)
The receivables shown in the balance sheet relate to
the following in particular:
• Receivables from direct insurance business
– from policyholders
– from insurance intermediaries
– from insurance companies
• Receivables from reinsurance business
• Other receivables
As a rule, receivables are reported at cost less impairment losses for losses already incurred but not yet known (e.g. death
that is not yet known). Impairment is necessary if there is material evidence of financial difficulties, such as default or delay
in payment and the items therefore cannot be considered collectable or not fully collectable. In the case of receivables from
policyholders, expected impairment losses from non-collectable premium receivables are shown on the liabilities side of the
balance sheet under “Other underwriting provisions” (provisions for cancellations) or deducted from the premium receivable
using a valuation allowance. The amounts included are shown in Note 5. Receivables on page 103.
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TAXES (F)
Income tax expenses comprise actual and deferred taxes. The income tax associated with transactions recognised directly
in equity is also recognised directly in equity. The actual taxes for the individual VIG Insurance Group companies are calcu-
lated using the company’s taxable income and the tax rate applicable in the country in question.
Deferred taxes are calculated using the balance sheet liability method for all temporary differences between the asset and
liability values recognised in the IFRS consolidated financial statements and the individual company tax bases for these
assets and liabilities. Under IAS 12.47, deferred taxes are measured using the tax rates applicable at the time of realisation.
In addition, any probable tax benefits realisable from existing loss carryforwards are included in the calculation. Exceptions
to this deferral calculation are differences from non-tax-deductible goodwill and any deferred tax differences linked to partici-
pations. Deferred tax assets are not recognised if it is not probable that the tax benefits they contain can be realised.
Deferred taxes are calculated using the following tax rates:
Tax rates 31.12.2021
31.12.2020
in %
Albania 15.0
15.0
Bosnia-Herzegovina 10.0
10.0
Bulgaria 10.0
10.0
Germany
1
30.0
30.0
Estonia
2
0.0
0.0
Georgia
3
15.0
15.0
Kosovo 10.0
10.0
Croatia 18.0
18.0
Latvia
4
0.0
0.0
Liechtenstein 12.5
12.5
Lithuania 15.0
15.0
Moldova 12.0
12.0
North Macedonia 10.0
10.0
Austria
5
25.0
25.0
Poland 19.0
19.0
Romania 16.0
16.0
Serbia 15.0
15.0
Slovakia 21.0
21.0
Czech Republic 19.0
19.0
Turkey
6
25.0
20.0
Ukraine 18.0
18.0
Hungary 11.3
11.3
1
The tax rate shown here is a flat tax rate. The tax rate is between 15,825% and 31,715%, depending on the registered office and activities of the company.
2
The retained profits of locally domiciled companies are not subject to corporate income tax. Profit distributions by the companies are subject to a tax rate of 14% to 20%.
3
As a rule, the retained profits of locally domiciled companies will not be subject to corporate income tax starting 1 January 2023. The planned implementation date was postponed from 1 January 2019 to 1
January 2023.
4
The retained profits of locally domiciled companies
are not subject to corporate income tax. Profit distributions by the companies are subject to a tax rate of 20%.
5
Due to a new law that was passed, the corporate income tax rate will be reduced in stages from 25% to 24% in 2023, and then to 23% in 2024.
6
As of 1 January 2021, a corporate income tax of 25% applies for current taxes.
50
Annual Financial Report 2021
Group taxation
With Wiener Städtische Versicherungsverein as the parent company there is a corporate group of companies within the
meaning of § 9 of the Austrian Corporate Income Tax Act (KStG). The taxable earnings of group members are attributed to
the head of the tax group. The head of the tax group has entered into agreements with each group member governing the
allocation of positive and negative tax amounts for the purpose of allocating corporate income tax charges according to
origin. If a group member earns positive income, 25% is allocated to the head of the tax group. In case of negative income,
the group member receives lump-sum compensation equal to 22.5% of the tax loss. Since the tax allocation is 25% in the
case of positive income, the group member should provide 10% of the tax benefit from group taxation resulting from
inclusion of that group member in the group. Cash settlement of tax benefits is performed for a period of three years.
OTHER ASSETS (G)
Other assets are measured at cost less cumulative depreciation and impairment losses. Cost comprises all costs incurred
in putting the asset into its present location in its present condition. Depreciation is performed using the straight-line method
over the expected useful life of the asset.
UNDERWRITING PROVISIONS (H)
Classification of insurance policies
Contracts under which an insurance company assumes a significant insurance risk from another party (the policyholder),
by agreeing to provide compensation to the policyholder if a specified uncertain future event (the insured event) negatively
affects the policyholder are treated as insurance policies for the purposes of IFRS. Financial risk is the risk of a possible
future change in specific interest rates, securities prices, price indices, interest rate indices, credit ratings, credit indices,
or some other variable. It must be noted that in the case of a non-financial variable, the variable is not specific to one
counterparty. In many cases, particularly in the life insurance area, insurance policies as defined in IFRS also transfer financial
risk.
Policies under which only an insignificant insurance risk is transferred from the policyholder to the insurance company are
treated as financial instruments (“financial insurance policies”) for IFRS reporting purposes. Such policies exist only to a minor
extent in the personal insurance area.
Both insurance contracts and financial insurance policies can have contract terms that qualify as discretionary participation
in net income (“profit participation”, “profit-dependent premium refund”). Contractual rights are considered discretionary
participation in net income if in addition to guaranteed benefits the policyholder also receives additional payments that are
likely to constitute a significant portion of the total contractual payments and are contractually based on:
• the profit from a certain portfolio of policies or a certain type of policy, or
• the realised and/or unrealised investment income from a certain portfolio of assets held by the insurance company, or
• the profit or loss of the company, investment fund, or business unit (e.g. balance sheet unit) holding the contract.
Policies with discretionary net income participation exist in all VIG Insurance Group countries, primarily in the life insurance
balance sheet unit, and to a secondary extent in the property and casualty and health insurance balance sheet units as
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well, and are treated as insurance policies in accordance with IFRS 4. The net income participation in life insurance usually
exists in the form of participation in the net income or net interest income of the balance sheet unit in question calculated
according to national accounting requirements. Net income or profit participation amounts that have already been allocated
or committed to policyholders are reported in the mathematical reserve. Amounts reported in the local annual financial
statements which have been committed or allocated to policyholders in the future by means of net income participation are
reported in the balance sheet in the provision for performance-based premium refunds.
In addition, the profit-related portion resulting from IFRS measurement differences as compared to local measurement
requirements (deferred profit participation) is also reported in the provision for profit-related premium refunds. This primarily
concerns Austrian and German policies that are eligible for profit participation, as the profit participation in these countries
is governed by regulations. Deferred profit participation is not recognised in balance sheets in other countries, since policy-
holder participation is at the sole discretion of the company concerned. The rate used for calculating deferred profit partici-
pation is 80% of the difference between the value recognised in the local financial statements and the value recognised in
the IFRS financial statements.
As permitted by IFRS 4, the option to present unrealised gains and losses with the same effects on balance sheet meas-
urements of underwriting provisions, capitalised acquisition costs and purchased insurance portfolios as realised gains and
losses has been applied (shadow accounting). The first step is to allocate unrealised gains on available-for-sale financial
instruments to a deferred mathematical reserve to serve as security for contractually agreed insurance payments. The
policyholder’s share of the surplus from the remaining unrealised gains is then allocated to a provision for deferred profit
participation. Any remaining asset balance is reported as deferred policyholder profit participation resulting from measure-
ment differences. This deferred item is only recognised if it is highly probable, at company level, that the item can be satisfied
by future profits in which the policyholders participate.
RECOGNITION AND ACCOUNTING METHODS FOR INSURANCE POLICIES
Based on the election provided in IFRS 4, the values recognised in the consolidated financial statements prepared in ac-
cordance with applicable national law are carried over to the IFRS consolidated financial statements. The national provisions
are only carried over, however, if they satisfy the minimum requirements of IFRS 4. Equalisation and catastrophe provisions
are therefore not recognised. In principle, accounting policies were not changed to differ from national accounting require-
ments, except when parameters used to calculate underwriting provisions did not lead to adequate funding for future
provisions. In such cases, VIG Insurance Group uses its own parameters, which are consistent with these principles. In indi-
vidual cases, the provisions formed locally by an insurance company for outstanding claims are adjusted in the consolidated
financial statements based on the corresponding analysis. Detailed information on the valuation of underwriting items is
available in the remarks for each item.
ADEQUACY TEST FOR LIABILITIES ARISING FROM INSURANCE POLICIES
Liabilities from insurance policies are tested at each balance sheet date for adequacy of the provisions recognised in the
financial statements.
If the value calculated based on up-to-date estimates of current valuation parameters, taking into account all future cash
flows associated with the insurance policies, is higher than the provisions formed for liabilities from insurance policies, an
increase in the provisions is recognised in profit or loss to eliminate the shortfall.
52
Annual Financial Report 2021
Provision for unearned premiums
U
nder the current version of IFRS 4, figures in annual financial statements prepared in accordance with national requirements
may be used for the presentation of figures relating to insurance policies in the consolidated financial statements. In Austria, a
cost discount of 15% (15%) is used when calculating unearned premiums in the property and casualty balance sheet unit (10%
for motor third party liability insurance (10%)), corresponding to EUR 33,694,000 (EUR 29,766,000). Acquisition expenses in
excess of this figure are not capitalised in Austria. For foreign companies in the property and casualty balance sheet unit a
portion of the acquisition expenses is generally recognised in the same proportion as the ratio of net earned premiums to
written premiums. To ensure uniform presentation, these capitalised acquisition costs are also shown in the consolidated
financial statements as a reduction in the provision for unearned premiums: EUR 397,795,000 (EUR 360,904,000).
Mathematical reserve
Life insurance mathematical reserves are calculated using the prospective method as the actuarial present value of obliga-
tions (including declared and allocated profit shares and an administrative cost reserve) minus the present value of all future
premiums received. The calculation is based on such factors as expected mortality, costs and the discount rate.
The mathematical reserve and related premium rate are essentially calculated using the same basis, which is applied uni-
formly for the entire rate and during the entire term of the policy. The appropriateness of the calculation basis is reviewed
each year in accordance with IFRS 4 and applicable national accounting requirements. Please refer to the Adequacy test
for liabilities arising from insurance policies section on page 51. For information on the use of shadow accounting, also see
page 51. Basically, the official mortality tables of each country are used for the life balance sheet unit. If current mortality
expectations differ to the benefit of policyholders from the calculation used for the rate, leading to a corresponding insuffi-
ciency in the mathematical reserves, the reserves are increased appropriately in connection with the adequacy test of
insurance liabilities.
In the life insurance balance sheet unit acquisition costs are taken into account through zillmerisation or another actuarial
method as a reduction of mathematical reserves. The resulting negative mathematical reserves are either set to zero in
accordance with national requirements or reported in the mathematical reserve item in the consolidated financial statements.
The following average discount rates are used to calculate mathematical reserves:
As of 31 December 2021: 1.80%
As of 31 December 2020: 1.85%
In Austria, the average discount rate for life insurance was 1.67% during the reporting period (1.71%).
In addition, the share of unrealised gains and losses from available-for-sale financial instruments serving as security for
contractual obligations is shown in the mathematical reserve as part of the shadow accounting performed according to
IFRS 4.
In the health insurance balance sheet unit, mathematical reserves are also calculated according to the prospective method
as the difference between the actuarial present value of future policy payments minus the present value of future premiums.
The loss frequencies used to calculate the mathematical reserve derive primarily from analyses conducted on the Group’s
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
53
own insurance portfolio. As a rule, the mortality tables used correspond to published mortality tables. The following discount
rates are used for the great majority of transactions when calculating mathematical reserves:
As of 31 December 2021: 2.35%
As of 31 December 2020: 2.39%
Provision for outstanding claims
National insurance law and national regulations (in Austria, the Austrian Insurance Supervision Act (VAG)) require VIG Insur-
ance Group companies to form provisions for outstanding claims. The provisions are calculated for payment obligations
arising from claims, which have occurred up to the balance sheet date but whose basis or size has not yet been established,
as well as all related claims settlement expenses expected to be incurred after the balance sheet date, and, as a rule, are
formed at the individual policy level. These policy-level provisions are marked up by a flat-rate allowance for unexpected
additional losses. Except for the provisions for pension obligations, no discounting is performed. Insurance losses that have
occurred up to the balance sheet date but were not known at the time that the balance sheet was prepared (“IBNR”), and
losses that have occurred but have not been reported in the correct amount (“IBNER”), are to be included in the provision
(incurred but not reported claims provisions and provisions for as yet unidentified large losses). Separate provisions for
claims settlement expenses are formed for internally incurred expenses attributable to claims settlement under the allocation
according to origin principle. Collectable recourse claims are deducted from the provision. Where necessary, actuarial esti-
mation methods are used to calculate the provisions. The methods are applied consistently, with both the methods and cal-
culation parameters tested continuously for adequacy and adjusted if necessary. The provisions are affected by economic
factors (e.g. inflation rate) and by legal and regulatory developments, which may be subject to change over time.
Provision for profit-unrelated premium refunds
The provisions for profit-unrelated premium refunds relate, in particular, to the property and casualty and health balance
sheet units, and pertain to premium refunds in certain insurance classes that are contractually guaranteed to policyholders
in the event that there are no claims or a low level of claims. These provisions are formed at the individual policy level. Since
the provisions are predominantly short-term provisions, no discounting has been performed.
Provision for profit-related premium refunds
Profit shares that were dedicated to policyholders in local business plans, but have not been allocated or committed
to individual policyholders as of the balance sheet date, are shown in the provision for profit-related premium refunds
(“discretionary net income participation”). In addition, both the portion realised through profit and loss and the portion
realised directly in equity that results from measurement differences between IFRS and local measurement requirements
(“deferred profit participation”) are reported in this item. Please see the Classification of insurance policies section starting
on page 50.
Other underwriting provisions
The other underwriting provisions item primarily includes provisions for cancellations. Cancellation provisions are formed for
the cancellation of premiums that have been written but not yet paid by the policyholder, and therefore represent a liabilities-
side allowance for receivables from policyholders. These provisions are formed based on the application of certain percent-
age rates to overdue premium receivables.
54
Annual Financial Report 2021
UNDERWRITING PROVISIONS FOR UNIT- AND INDEX-LINKED LIFE INSURANCE (I)
Underwriting provisions for unit- and index-linked life insurance represent obligations to policyholders that are linked to the
performance and income of the corresponding financial instruments. The measurement of these provisions corresponds to
the measurement of the financial instruments for unit- and index-linked life insurance, and is based on the fair value of the
investment unit or index serving as a reference.
NON-UNDERWRITING PROVISIONS (J)
Provision for pension obligations
Pension obligations are based on individual contractual obligations and collective agreements. The obligations are defined
benefit obligations. The plans are based on average salary and/or the number of years of service with the company.
These obligations are accounted for in accordance with IAS 19. The present value of the defined benefit obligation (DBO)
is calculated. Calculation of the DBO is performed using the projected unit credit method. In this method future payments
calculated based on realistic assumptions are accrued linearly over the period in which the beneficiary acquires these
entitlements. The necessary provision amount is calculated for the relevant balance sheet date using actuarial reports that
have been provided for 31 December 2020 and 31 December 2021. The calculations are based on the following assump-
tions:
Pension assumptions 31.12.2021
31.12.2020
Interest rate 1.00%
0.75%
Pension increases 2.25%*
2.00%
Salary increases 2.25%*
2.00%
Employee turnover rate (age-dependent) 0%–4%
0%–4%
Retirement age, women (transitional arrangement) 62+
62+
Retirement age, men (transitional arrangement) 62+
62+
Life expectancy (for employees, in accordance with) (AVÖ 2018-P)
(AVÖ 2018-P)
*Association recommended pension subsidy: 1.5%
The weighted average length of the DBO for pensions was 15.54 years in financial year 2021 (16.36 years). A portion of
the direct pension obligations are administered as an occupational group insurance plan following conclusion of an insur-
ance contract in accordance with § 93–98 VAG.
SUBORDINATED LIABILITIES AND LIABILITIES EXCL. SUBORDINATED LIABILITIES (K)
As a rule, all liabilities are measured at amortised cost. This also applies to liabilities arising from financial insurance policies.
The fair value of financial liabilities is shown in Note 24. Financial instruments and fair value measurement hierarchy starting
on page 127.
NET EARNED PREMIUMS (L)
As a rule, unearned premiums (provision for unearned premiums) are determined on a pro rata basis over time. No deferral
of unit- and index-linked life insurance premiums is performed, since the full amount of the premiums written in the reporting
period is included in the calculation of the underwriting provisions for unit- and index-linked life insurance.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
55
SCOPE AND METHODS OF CONSOLIDATION
The consolidated financial statements include a total of 77 Austrian and 81 foreign companies.
Full consolidation of a subsidiary begins when control is gained and ends when control is lost. 63 domestic companies and
78 foreign companies are included in the consolidated financial statements using this consolidation method.
Associated companies are companies over which the Group directly or indirectly has a significant influence but does not
exercise control. These companies are accounted for the at equity method. These consolidated financial statements include
14 Austrian and 3 foreign companies accounted for at equity.
The materiality or immateriality of subsidiaries, associated companies and joint arrangements for the consolidated financial
statements is checked using a variety of thresholds defined at the VIG Holding level. Qualitative assessment criteria are also
used. The absolute profit before taxes or total assets, for example, could be checked for this purpose. If a company does
not satisfy any size criteria, a second step is performed to check whether the companies that are not included are material
when taken as a whole. If this is not the case, these companies are not included in the scope of consolidation. 147 com-
panies that have no material effect on the net assets, financial position and results of operations when considered individually
or in aggregate have essentially been measured at fair value.
Fully controlled investment funds (“special funds”) were fully consolidated in accordance with the requirements of IFRS 10.
These consolidated institutional funds are not separate corporate entities and therefore not structured entities as defined in
IFRS 12. They are investment funds that have not been designed for public capital markets.
Due to a lack of control, mutual funds are not consolidated, even if a majority of voting rights are held. The ability of
subsidiaries to transfer funds (in the form of dividends) to parent companies can be restricted by corporate law and
regulations.
BUSINESS COMBINATIONS (IFRS 3)
Business combinations are recognised using the purch
ase method. Goodwill is recognised as the value of the consideration
transferred and all non-controlling interests in the acquired company less the identifiable assets acquired and liabilities
assumed. In any business combination, present non-controlling interests that entitle holders to a proportionate share of the
entity’s net assets in the event of a liquidation can be measured either at fair value or as part of the identifiable net assets.
Unless another IFRS provides a different measurement method, all other components of non-controlling interests are meas-
ured at the corresponding share of the identifiable net assets. If the consideration is less than the net assets of the acquired
subsidiary measured at fair value, the difference is checked again and recognised directly in the income statement. As a
rule, the fair values calculated in accordance with IFRS 13 of all assets (incl. goodwill and other intangible assets) and
liabilities are allocated to the country to which the purchased company is assigned.
Deferred tax assets acquired during a business combination and arising under IAS 12.66 et seqq. on the acquisition date
are tested for impairment in accordance with IAS 12.37.
The Group considers the reported goodwill to reflect the value of the ability to make use of the insurance-specific expertise
of the employees of the acquired companies. When a market is entered, it represents the ability to offer insurance products
56
Annual Financial Report 2021
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 distri-
buted among the acquired assets and assumed liabilities based on fair value. No deferred taxes are recognised in such
cases (initial recognition exemption) and goodwill cannot arise.
All company acquisitions were performed with cash and cash equivalents. A list of fully and at equity consolidated com-
panies is provided on page 134 in Note 28. Affiliated companies and participations.
CHANGES IN THE SCOPE OF CONSOLIDATION
The following companies were deconsolidated in finan
cial year 2021:
Deconsolidations Reason for deconsolidation
Date
Reportable segment
AB Modřice, a.s., Prague Review of the scope of consolidation
31.12.2021
Czech Republic
AIS Servis, s.r.o., Brno Review of the scope of consolidation
31.12.2021
Czech Republic
arithmetica Consulting GmbH, Vienna Review of the scope of consolidation
31.12.2021
Austria
Bohemika a.s., Žatec Review of the scope of consolidation
31.12.2021
Czech Republic
Bohemika HYPO s.r.o., Žatec Review of the scope of consolidation
31.12.2021
Czech Republic
Camelot Informatik und Consulting Gesellschaft m.b.H., Vienna Review of the scope of consolidation
31.12.2021
Austria
ČPP servis, s.r.o., Prague Review of the scope of consolidation
31.12.2021
Czech Republic
DBLV Immobesitz GmbH, Vienna Review of the scope of consolidation
31.12.2021
Austria
DBR-Liegenschaften Verwaltungs GmbH, Stuttgart Review of the scope of consolidation
31.12.2021
Austria
FinServis Plus, s.r.o., Prague Review of the scope of consolidation
31.12.2021
Czech Republic
Global Expert, s.r.o., Pardubice Review of the scope of consolidation
31.12.2021
Czech Republic
Global Partner, a.s., Prague Review of the scope of consolidation
31.12.2021
Czech Republic
HOTELY SRNÍ, a.s., Prague Review of the scope of consolidation
31.12.2021
Czech Republic
LD Vermögensverwaltung GmbH, Vienna Review of the scope of consolidation
31.12.2021
Austria
Limited Liability Company "UIG Consulting", Kyiv Liquidation
31.12.2021
Extended CEE
Main Point Karlín II., a.s., Prague Review of the scope of consolidation
31.12.2021
Czech Republic
Pražská softwarová s.r.o., Prague Review of the scope of consolidation
31.12.2021
Czech Republic
Sanatorium Astoria, a.s., Karlsbad Review of the scope of consolidation
31.12.2021
Czech Republic
SURPMO, a.s., Prague Review of the scope of consolidation
31.12.2021
Czech Republic
During the IFRS 17/9 project, the process for identifying the scope of consolidation was examined and all consolidated
companies were reviewed for materiality. Companies that would be classified as non-material based on internal guidelines
were identified during this review and were therefore deconsolidated as of 31 December 2021.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
57
During the reporting period from 1 January 2021 to 31 December 2021, the Group acquired control of the following sub-
sidiaries and included the following companies in the consolidated financial statements:
Expansion of the scope of consolidation* Acquisition/formation
Interest
First-time
consolidation
Method
Date
in %
Date
NNC REAL ESTATE SPÓŁKA Z OGRANICZONĄ
ODPOWIEDZIALNOŚCIĄ, Warsaw 2021
100.00
1.12.2021
full consolidation
OÜ LiveOn Paevalille, Tallinn 2021
100.00
19.10.2021
full consolidation
Rößlergasse Bauteil Drei GmbH, Vienna 2018
100.00
1.7.2021
full consolidation
Rößlergasse Bauteil Zwei GmbH, Vienna 2018
100.00
1.7.2021
full consolidation
SIA "LiveOn Stirnu", Riga 2021
100.00
27.10.2021
full consolidation
SIA "LiveOn", Riga 2021
70.00
9.8.2021
full consolidation
SIA LiveOn Terbatas, Riga 2021
100.00
27.10.2021
full consolidation
UAB LiveOn Linkmenu, Vilnius 2021
100.00
10.11.2021
full consolidation
VIG Offices, s.r.o., Bratislava 2020
100.00
1.1.2021
full consolidation
Virtus Sechzehn Beteiligungs GmbH, Vienna 2021
100.00
1.12.2021
full consolidation
*Unless indicated otherwise, no goodwill exists.
Aegon CEE
On 29 November 2020, VIG reached agreement with Aegon N.V. to acquire its insurance business in Hungary, Poland,
Romania and Turkey. As a result, Aegon’s insurance companies in the non-life and life sectors, pension funds and asset
management and service companies are to be acquired in these countries. The purchase price is EUR 830 million. The
transaction is subject to the approvals required under supervisory and competition law. Due to the lack of closing for the
transaction and, therefore, lack of control over the companies, they had not yet been added to the scope of consolidation
as of the balance sheet date.
In December 2021, VIG and the Hungarian government reached agreement on the main features of a cooperation agreement
and the further course of action to be taken for the Hungarian state to receive a participation of 45% in the Hungarian AEGON
companies and UNION Vienna Insurance Group Biztosító Zrt. The detailed terms of the cooperation, including the controlling
interest and operational management, are the subject of negotiations after the balance sheet date. Further information on the
status of negotiations is provided in Note 31. Significant events after the balance sheet date on page 145.
Change in significant non-controlling interests Change
Change of interest
Change in significant
non-controlling
interests
Date
in %
in EUR '000
ČPP 30.06.2021
2.72
-3,893
Projektbau GesmbH, Vienna 31.12.2021
9.84
-1,484
Projektbau Holding GmbH, Vienna 31.12.2021
9.84
-4,067
V.I.G. ND, a.s. 30.06.2021
0.32
-287
Change of consolidation method from at equity-consolidation to full consolidation Interest
Changeover
in %
Date
GLOBAL ASSISTANCE, a.s., Prague 100.00
1.1.2021
S - budovy, a.s., Prague 100.00
1.1.2021
58
Annual Financial Report 2021
Effect of changes in the scope of consolidation
Balance sheet Additions
Disposals
in EUR '000
Intangible assets 68
197
Right-of-Use Assets 777
0
Investments 121,492
555
Shares in at equity consolidated companies 0
46,851
Receivables (incl. tax receivables and advance payments out of income tax) 14,981
776
Other assets (incl. deferred tax assets) 1,408
395
Cash and cash equivalents 11,725
3,768
Non-underwriting provisions 1,716
2,348
Liabilities (incl. tax liabilities out of income tax) 35,586
1,143
Other liabilities (incl. deferred tax liabilities) 536
0
The figures shown in the table above reflect the actual dates of first consolidation and deconsolidation, as indicated in the
section Changes in the scope of consolidation on page 56.
Contribution to result before taxes in reporting period Additions
Disposals
in EUR '000
Financial result excl. result from shares in at equity consolidated companies 256
150
Result from shares in at equity consolidated companies 0
1,510
Other income 38
3,532
Expenses for claims and insurance benefits – retention 11,898
19
Acquisition and administrative expenses -8,534
88
Other expenses -398
-3,103
Result before taxes 3,260
2,196
Inclusion of the first-time consolidated companies retrospectively to 1 January 2021 would not cause any material changes
in balance sheet items. Inclusion of the first-time consolidated companies retrospectively to 1 January 2021 would reduce
the Group result before taxes and non-controlling interests by 0.08% (not including any consolidation effects).
The number of employees increased by 76 due to the changes in the scope of consolidation.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
59
SEGMENT REPORTING
OPERATING SEGMENTS
The operating segments were determined in accordance with IFRS 8 Operating segments based on internal reporting to
the principal decision-maker. The individual countries, in which VIG Insurance Group operates, were identified as operating
segments. The VIG Holding Managing Board, as principal decision-maker, regularly evaluates earning power based on
these segments and decides on the allocation of resources to them. The focus on countries is also reflected in the country
responsibilities of the members of the VIG Holding Managing Board.
The countries Estonia, Latvia and Lithuania are combined in the Baltic States operating segment, and Albania and Kosovo
are combined in the Albania incl. Kosovo operating segment when reporting to the Managing Board.
REPORTABLE SEGMENTS
Change of reportable segments
E
very 5 years, the Managing Board prepares and approves the detailed medium-term strategic orientation of VIG Insurance
Group. The Group’s strategic orientation until 2025 was established in financial year 2021. When the composition of the
Managing Board was changed in financial year 2020, the reportable segments that were previously published were evalu-
ated and modified accordingly when the 2025 strategy was established.
Determination
The reportable segments were determined using the aggregation criteria in IFRS 8.12 and IFRS 8.14 and the quantitative
thresholds defined in IFRS 8.13.
This led to the following segments being specified as reportable segments:
• Austria (incl. the Wiener Städtische branches in Slovenia and Italy),
• Czech Republic,
• Poland,
• Extended CEE,
• Special Markets and
• Group Functions (incl. the VIG Holding branches in Sweden, Norway and Denmark and VIG Re branches in Germany
and France).
EXTENDED CEE
The Extended CEE reportable segment includes the operating segments of Albania incl. Kosovo (a branch of an Albanian
company is located in Kosovo), the Baltic states, Bosnia-Herzegovina, Bulgaria, Croatia, Hungary, Moldova, North
Macedonia, Romania, Serbia, Slovakia and Ukraine. The segment was aggregated in accordance with the aggregation
criteria in IFRS 8.14 and was not reported in an “all other segments” in accordance with IFRS 8.16 in spite of falling below
the thresholds.
SPECIAL MARKETS
The Special Markets reportable segment corresponds to the “All other segments” category in IFRS 8.16, and includes
Germany, Georgia, Liechtenstein and Turkey.
60
Annual Financial Report 2021
GROUP FUNCTIONS
VIG Insurance Group is an international insurance group operating in Central and Eastern Europe. The Managing Board
accordingly manages the insurance business separate from the coordination functions in the individual countries. As a result,
only the companies related to the insurance business are included in the individual operating segments. That means that
companies that
• do not distribute or assist in the distribution of insurance products,
• perform loss assessments or claims handling, or
• operate as service companies for the Group,
are included in the Group Functions reportable segment, not in the country where they have their registered office.
Specifically, this means the Group Functions segment includes VIG Holding, VIG Re, Wiener Re, VIG Fund, corporate IT service
providers and intermediate holding companies, among others.
BASIS OF THE REVENUES OF THE REPORTABLE SEGMENTS
The scope of business operations includes private and corporate customer insurance business. The range of products
includes, among other things, motor third party liability and own damage, accident, third party liability, fire and natural
hazards, and travel insurance.
A large number of life and health insurance products are offered for individuals and groups. These include, for example,
supplementary health insurance, nursing care insurance, endowment insurance, term life insurance and investment-
oriented products. In accordance with the cornerstones of VIG Insurance Group, products are sold through all distribution
channels in all markets. This means that insurance products are distributed, among others, by sales employees, banks,
brokers and agents.
VIG Holding primarily focuses on managerial tasks for VIG Insurance Group. It also operates as a reinsurer within VIG
Insurance Group and in the international corporate business. The Group’s own reinsurance company, VIG Re, is a success-
ful provider of reinsurance products for both insurance companies of VIG Insurance Group and for external partners.
Information on major customers
VIG Insurance Group does not depend to a great extent on one single customer, as defined in IFRS 8.34. The 10 largest
customer groups are responsible for 2.2% of the premiums written by the Group. Corporate customers that are under
common control according to the information available to VIG Insurance Group are combined into customer groups.
GENERAL DISCLOSURES
Like transactions with third parties, transfer prices between reportable segments are determined using market prices. Intra-
group transactions between segments are eliminated in the consolidation column. The only exceptions are dividends and
intercompany profits, which are eliminated in each reportable segment.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
61
PERFORMANCE MEASUREMENT FOR REPORTABLE SEGMENTS
A variety of performance indicators are used to determine the financial performance of the reportable segments. The IFRS
Group operating result is used as an indicator in all cases. In the interests of comparability, the income statement by report-
able segments is appropriately reconciled with the consolidated income statement and only the main items are presented.
The same applies to the balance statement by segments and consolidated balance sheet.
CONSOLIDATED BALANCE SHEET BY REPORTABLE SEGMENT
Assets Austria Czech Republic Poland Extended CEE
31.12.2021
31.12.2020
31.12.2021
31.12.2020
31.12.2021
31.12.2020
31.12.2021
31.12.2020
in EUR '000
Intangible assets 548,040
497,293
506,739
487,109
160,038
158,164
483,013
479,453
Right-of-Use Assets 71,190
75,523
57,646
57,583
7,480
5,466
33,661
34,581
Investments 22,891,500
23,655,203
3,187,915
2,937,473
1,353,830
1,431,462
4,687,186
4,558,899
Financial investments for unit- and
index-linked life insurance 5,219,135
4,918,309
490,766
418,286
698,849
680,712
1,044,657
957,754
Reinsurers' share in underwriting
provisions
327,852
487,996
166,928
149,599
119,083
121,345
177,381
185,927
Receivables 705,701
559,737
168,469
166,645
225,045
212,916
547,882
496,381
Tax receivables and advance payments
out of income tax 9,134
18,024
10,290
37,735
2,942
4,291
1,522
1,120
Deferred tax assets 3,636
4,871
233,419
85,389
4,584
0
27,432
14,522
Other assets 87,751
102,357
169,442
160,467
5,583
7,710
68,736
64,363
Cash and cash equivalents 438,989
451,307
141,943
144,332
32,946
24,680
237,626
255,464
Total 30,302,928
30,770,620
5,133,557
4,644,618
2,610,380
2,646,746
7,309,096
7,048,464
Assets Special Markets Group Functions Total
31.12.2021
31.12.2020
31.12.2021
31.12.2020
31.12.2021
31.12.2020
in EUR '000
Intangible assets 4,385
4,496
41,954
106,562
1,744,169
1,733,077
Right-of-Use Assets 489
649
2,882
11,552
173,348
185,354
Investments 798,307
822,999
1,891,052
1,495,150
34,809,790
34,901,186
Financial investments for unit- and index-linked life insurance 1,063,444
986,176
8,480
6,802
8,525,331
7,968,039
Reinsurers' share in underwriting provisions 98,982
96,189
674,379
355,436
1,564,605
1,396,492
Receivables 92,982
101,160
327,109
162,320
2,067,188
1,699,159
Tax receivables and advance payments out of income tax 1,543
4,542
109,622
209,329
135,053
275,041
Deferred tax assets 3,039
1,050
39,337
30,896
311,447
136,728
Other assets 6,061
6,978
53,320
45,970
390,893
387,845
Cash and cash equivalents 105,523
88,770
1,499,306
780,594
2,456,333
1,745,147
Total 2,174,755
2,113,009
4,647,441
3,204,611
52,178,157
50,428,068
62
Annual Financial Report 2021
Liabilities and shareholdersʾ equity Austria Czech Republic Poland Extended CEE
31.12.2021
31.12.2020
31.12.2021
31.12.2020
31.12.2021
31.12.2020
31.12.2021
31.12.2020
in EUR '000
Subordinated liabilities 339,160
342,950
22,126
20,959
0
0
0
0
Underwriting provisions 21,919,592
22,446,551
3,041,097
2,792,390
1,346,705
1,275,020
4,353,673
4,128,567
Underwriting provisions for unit- and
index-linked life insurance 5,059,871
4,744,433
335,134
249,729
683,030
671,126
1,046,414
963,021
Non-underwriting provisions 611,799
649,509
21,954
10,038
15,203
11,996
68,258
61,592
Liabilities excl. subordinated liabilities 699,073
679,644
464,175
414,588
169,488
154,361
403,293
402,214
Tax liabilities out of income tax 127,999
255,222
88,951
20,479
0
1,715
4,012
5,738
Deferred tax liabilities 169,728
188,113
5,872
5,700
7,947
22,458
21,670
32,493
Other liabilities 59,838
73,880
3,326
3,300
17,470
16,299
42,183
38,373
Subtotal 28,987,060
29,380,302
3,982,635
3,517,183
2,239,843
2,152,975
5,939,503
5,631,998
Liabilities and shareholdersʾ equity Special Markets Group Functions Total
31.12.2021
31.12.2020
31.12.2021
31.12.2020
31.12.2021
31.12.2020
in EUR '000
Subordinated liabilities 0
0
1,100,000
1,100,000
1,461,286
1,463,909
Underwriting provisions 956,176
934,517
928,984
653,010
32,546,227
32,230,055
Underwriting provisions for unit- and index-linked life insurance 1,055,864
982,106
8,480
6,801
8,188,793
7,617,216
Non-underwriting provisions 21,597
24,479
151,378
119,195
890,189
876,809
Liabilities excl. subordinated liabilities 76,146
78,719
1,088,105
524,780
2,900,280
2,254,306
Tax liabilities out of income tax 3,913
3,881
18,507
3,963
243,382
290,998
Deferred tax liabilities 336
1,283
13,331
17,823
218,884
267,870
Other liabilities 630
567
7,721
8,720
131,168
141,139
Subtotal 2,114,662
2,025,552
3,316,506
2,434,292
46,580,209
45,142,302
Shareholders' equity 5,597,948
5,285,766
Total 52,178,157
50,428,068
Intrasegment transactions have been eliminated from the amounts indicated for each reportable segment. As a result, the
segment assets and liabilities cannot be netted to determine the segment shareholders’ equity.
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CONSOLIDATED INCOME STATEMENT BY REPORTABLE SEGMENT
Austria Czech Republic Poland Extended CEE
2021
2020
2021
2020
2021
2020
2021
2020
in EUR '000
Premiums written – gross 4,048,443
4,030,707
1,864,939
1,732,393
1,279,791
1,196,236
2,886,733
2,640,450
Net earned premiums – retention 3,242,491
3,275,613
1,399,805
1,295,519
983,029
926,588
2,200,684
2,054,120
Financial result excl. result from
shares in at equity consolidated
companies 580,101
536,365
70,979
64,848
23,946
36,136
130,089
127,923
Income from investments 762,544
841,131
105,867
128,835
41,614
50,040
170,481
164,270
Expenses for investments and
interest expenses -182,443 -304,766 -34,888 -63,987 -17,668 -13,904 -40,392 -36,347
Result from shares in at equity
consolidated companies 23,106
-30,960 1,139
832
0
0
0
0
Other income 27,740
17,982
30,346
28,835
9,552
7,220
53,416
43,151
Expenses for claims and insurance
benefits – retention -2,919,325 -2,958,391 -828,780 -824,507 -671,220 -670,009 -1,504,948 -1,430,424
Acquisition and administrative
expenses -691,773 -636,020 -428,260 -343,718 -241,084 -224,283 -572,538 -536,639
Other expenses -27,685 -25,862 -58,332 -29,737 -33,678 -37,439 -118,122 -113,717
Business operating result 234,655
178,727
186,897
192,072
70,545
38,213
188,581
144,414
Impairments of goodwill 0
0
0
0
0
-1,888 0
-104,817
Impairments of intangible assets
excluding goodwill 0
0
0
0
-688 -13,773 0
-8,399
Result before taxes 234,655
178,727
186,897
192,072
69,857
22,552
188,581
31,198
Taxes -76,022 -19,040 -37,828 -39,896 -10,492 -11,506 -31,995 -34,144
Result for the period 158,633
159,687
149,069
152,176
59,365
11,046
156,586
-2,946
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Annual Financial Report 2021
Special Markets Group Functions Consolidation Total
2021
2020
2021
2020
2021
2020
2021
2020
in EUR '000
Premiums written – gross 531,686
531,649
1,965,017
1,736,522
-1,574,043 -1,439,503 11,002,566
10,428,454
Net earned premiums – retention 325,866
343,879
1,554,110
1,425,685
-352 15,181
9,705,633
9,336,585
Financial result excl. result from
shares in at equity consolidated
companies 35,641
25,570
-229,602 -162,897 -4,136 -3,154 607,018
624,791
Income from investments 35,585
30,651
104,889
113,470
-61,460 -64,608 1,159,520
1,263,789
Expenses for investments and
interest expenses 56
-5,081 -334,491 -276,367 57,324
61,454
-552,502 -638,998
Result from shares in at equity
consolidated companies 0
0
627
1,618
0
0
24,872
-28,510
Other income 29,733
15,005
16,660
34,880
-1,658 -1,412 165,789
145,661
Expenses for claims and insurance
benefits – retention -228,933 -251,615 -986,010 -870,404 2,655
-25,219 -7,136,561 -7,030,569
Acquisition and administrative
expenses -65,709 -52,037 -536,873 -523,947 -591 -11,835 -2,536,828 -2,328,479
Other expenses -58,744 -42,439 -29,742 -12,502 8,401
29,474
-317,902 -232,222
Business operating result 37,854
38,363
-210,830 -107,567 4,319
3,035
512,021
487,257
Impairments of goodwill 0
-12,518 0
0
0
0
0
-119,223
Impairments of intangible assets
excluding goodwill 0
0
0
0
0
0
-688 -22,172
Result before taxes 37,854
25,845
-210,830 -107,567 4,319
3,035
511,333
345,862
Taxes -11,550 -11,310 44,548
12,702
0
0
-123,339 -103,194
Result for the period 26,304
14,535
-166,282 -94,865 4,319
3,035
387,994
242,668
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FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
FINANCIAL INSTRUMENTS (INCL. PROPERTY AND OTHER INVESTMENTS)
The Group invests in fixed-income securities (bonds, loans/credits), shares, property, participations and other investments,
taking into account the overall risk position and the investment strategy provided for this purpose.
The investment strategy is laid down in the investment guidelines for each of the insurance companies. Compliance is con-
tinuously monitored by the Asset Management and Asset Risk Management departments and by the Internal Audit depart-
ment on a sample basis. Investment guidelines are laid down centrally and must be followed by all VIG Insurance Group
companies. When determining exposure volumes and limits as part of establishing the strategic orientation of investments,
the risk inherent in the specified categories and market risks are of fundamental importance.
The investment strategy principles may be summarised as follows:
• VIG Insurance Group practices a conservative investment policy designed for the long term.
• VIG Insurance Group focuses on its asset mix as a way to ensure that cash flows match its long-term liability profile and
to create sustainable increases in value through the use of correlation and diversification effects of the individual asset
classes.
• Investment management depends on the asset class in question or on the objective within asset classes and is
performed internally or by an outside manager.
• The currency profile of the investments should match as closely as possible the obligations to policyholders and other
liabilities (currency matching).
• Risk management for securities is aimed at providing a transparent view of the risk exposure arising from price, interest-
rate and currency fluctuations as they affect profitability and the value of investments, and at limiting these risks. A limit
system is used to limit the risks.
• Market developments are monitored continuously and the structure of the portfolio is actively managed, if necessary.
The investment portfolio (with the look-through approach applied to consolidated institutional funds) includes holdings of
around 70.25% (72.66%) in bonds and around 5.79% (7.01%)
in loans. The share in equities is around 5.11% (4.25%), in
property around 8.02% (7.12%), in participations around 1.49% (1.50%) and in other around 9.34% (7.46%), in all cases
based on the book value of the total investment portfolio.
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Annual Financial Report 2021
Composition of investments (book values) 31.12.2021
31.12.2020
in EUR '000
Property 2,850,588
2,507,413
Shares in at equity consolidated companies 276,913
291,561
Loans 2,156,064
2,566,884
Loans 1,273,633
1,647,782
Reclassified loans 106,677
136,308
Bonds classified as loans 775,754
782,794
Other financial assets 28,653,998
28,685,004
Financial assets held to maturity - bonds 2,255,318
2,163,435
Financial assets reclassified as held to maturity - bonds 302,402
293,003
Financial assets available for sale 25,849,069
25,983,431
Bonds 22,305,212
22,895,705
Shares and other participations
1
770,933
672,285
Investment funds 2,772,924
2,415,441
Financial assets recognised at fair value through profit and loss
2
247,209
245,135
Other investments 872,227
850,324
Bank deposits 783,730
766,408
Deposits on assumed reinsurance business 88,480
83,900
Other 17
16
Total 34,809,790
34,901,186
1
Includes shares in non-consolidated subsidiaries and other participations of EUR 279,516,000 (EUR 257,779,000)
2
including held for trading
Real estate
The portfolio had a book value of EUR 2,850.6 million as of 31 December 2021 (fair value: EUR 4,682.1 million) and a book
value of EUR 2,507.4 million as of 31 December 2020 (fair value: EUR 4,190.9 million).
The portfolio of directly held assets and assets held in the form of participations is used primarily to create highly inflation-
resistant long-term positions for the insurance business, and to create hidden reserves. The property portfolio represents
8.02% (7.12%) of the total investment portfolio.
The following table shows the investments as of 31 December 2021 and 31 December 2020, broken down by type of use
for the Austria and Group Functions reportable segments and the totals for all other segments.
Use of property in % of the property portfolio 31.12.2021
31.12.2020
Austria 65.40
65.98
Owner-occupied 6.29
7.26
Investment property 59.11
58.72
Group Functions 19.57
19.59
Owner-occupied 1.22
1.36
Investment property 18.35
18.23
Other segments 15.03
14.43
Owner-occupied 9.06
10.43
Investment property 5.97
4.00
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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Shares in at equity consolidated companies
Shares in at equity consolidated companies had a book value of EUR 276.9 million as of 31 December 2021 and a book
value of EUR 291.6 million as of 31 December 2020. Shares in at equity consolidated companies therefore represented
0.80% (0.84%) of the book value of the total investment portfolio as of 31 December 2021.
Loans
Loans had a book value of EUR 2,156.1 million as of 31 December 2021 and a book value of EUR 2,566.9 million as of
31 December 2020. Investments in loans are less important in the CEE region. A portfolio analysis and maturity structure
of loans are presented in Note 2.3. Loans and other investments starting on page 97.
Bonds
Bonds represented 70.25% (72.66%) of total investments as of 31 December 2021. VIG Insurance Group manages its
bond portfolio using estimates of changes in interest rates, spreads and credit quality, taking into account limits related to
individual issuers, credit quality, maturities, countries, currencies and issue volume. In the investment model, the bonds
serve primarily to ensure stable earnings over the long term. Derivative products are only used to reduce risks or make
efficient portfolio management easier. Relevant investment guidelines expressly govern the use of derivatives for bond port-
folios managed by third parties such as investment funds.
Shares
As of 31 December 2021, share investments (including those contained in the funds) represented 5.11% (4.25%) of the
book value of the total investment portfolio. In accordance with the investment guidelines for Austria, management is carried
out using a top-down approach, subject to the constraint that diversification be used to minimise the market risk of the
shares. The overall proportion of shares is very small for companies of VIG Insurance Group in the CEE region.
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Annual Financial Report 2021
RISK MANAGEMENT
VIG Insurance Group’s core competence is dealing professionally with risk. The insurance business consists of consciously
assuming diverse risks and managing them profitably. One of the primary responsibilities of risk management is to ensure
that the obligations assumed under insurance policies can be satisfied at all times.
In general, all insurance companies are responsible for managing their own risks. The corporate Risk Management depart-
ment of VIG Holding provides guidelines in all major areas for these companies. The requirements set in the investments
and reinsurance areas are particularly strict.
The primary requirement for effective risk management is a risk management system that is consistent throughout the
Group and a risk policy and risk strategy set by management. The objective of such risk management is not complete
avoidance of risk but rather a conscious acceptance of desired risks and the implementation of measures to monitor and
possibly even reduce existing risks based on economic factors. The risk-return ratio is therefore a key measure that must
be optimised in order to guarantee adequate security for the policyholder and the insurer itself while giving due consideration
to the need to create value.
Risk management responsibilities in VIG Holding are bundled together in independent organisational units, and through a
well-established risk and control culture, each individual employee contributes to successful management of risk. Transpar-
ent, verifiable decisions and processes within a company are very important aspects of its risk culture.
Risk strategy
The strategic orientation of the Company is based on a business strategy, capital strategy and a comprehensive risk strategy.
The risk strategy specifies appropriate risk management measures for significant risks and is based on the following princi-
ples that are applicable Group-wide:
ACCEPTED RISKS
• A sustainable portion of all risks that have a direct connection to the insurance business that is conducted are accepted
(underwriting risks, market risks).
RISKS THAT ARE NOT ACCEPTED
• Risks from the insurance business are not accepted if they cannot be adequately measured. This includes, for example,
liability insurance for genetic engineering.
• With respect to investments, risks are not accepted if insufficient know-how is available to measure the risks, e.g.
weather derivatives or forward transactions for foodstuffs, or if they could generate potentially unlimited losses.
RISKS ACCEPTED WITH RESTRICTIONS
• Operational risks must be avoided as far as possible, but have to be accepted to a certain extent as they cannot be
fully excluded, or the costs for avoiding them exceed the expected losses.
• A conservative approach is used for investments.
RISK-MINIMISING MEASURES
• Establish functional risk governance by maintaining and promoting a high level of risk awareness.
• Reinsurance is a key instrument for hedging against large losses (tail risks), particularly in the property and casualty
area.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
69
• Limit market risk taking into account underwriting obligations.
• Observe and act in accordance with the prudent businessman rule in connection with investments.
Organisation of the risk management system
The risk management system is well integrated into VIG Holding’s organisational structure. The following chart shows the units
that play an important role in the risk management system.
MANAGING BOARD
The Managing Board as a whole is responsible for the risk management system, in particular for the following areas:
• Set up and promote the risk management system
• Define and communicate the risk strategy, including risk tolerances and risk appetite
• Approve corporate risk management guidelines
• Take the risk situation into account in strategic decisions
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Annual Financial Report 2021
Both the Enterprise Risk Management and Asset Risk Management units report directly to Managing Board member Liane
Hirner. They are assisted by the Digitalisation, Finance and Risk department, which also reports to Managing Board member
Liane Hirner and is where the Solvency II reporting system is organised.
RISK COMMITTEE
The VIG Holding Managing Board established the Risk Committee to ensure regular discussions of current matters relating
to risk management across functional areas within the organisation and an exchange of information on the risk situation
between the members of the committee and the Managing Board. The Risk Committee meetings take place at least quar-
terly and are chaired by the Managing Board member responsible for this area. The Risk Committee reports to the Managing
Board after its meetings.
ENTERPRISE RISK MANAGEMENT
The department reports to Managing Board member Liane Hirner. The head of the department performs the risk manage-
ment function required under Solvency II at the Group and solo level.
The main responsibilities of the department include determining the Group’s overall risk profile and calculating solvency. The
department provides a Group-wide risk aggregation solution for this purpose with extensive reporting and partial modelling
approaches for calculating solvency capital. Calculation of the solvency capital requirement during the year, analysis of risk-
bearing capacity using proprietary analysis tools and reviewing the internal control system are other important activities
performed by the department.
The department also assists the Managing Board with updating the corporate risk strategy, improvements to the risk orga-
nisation and further corporate risk management topics.
ASSET RISK MANAGEMENT
The department reports to Managing Board member Liane Hirner. The primary responsibility of the department is to analyse,
assess and monitor risks associated with investments, in particular with respect to the VIG Insurance Group’s solvency
result and financial result. For this purpose, the department specifies Group-wide requirements for risk assessment and
implements a central system for investment management and risk monitoring. The department is also responsible for main-
taining an internal rating approach for banks.
ASSET MANAGEMENT (INCL. REAL ESTATE)
The department reports to Managing Board member Gerhard Lahner. One of the main responsibilities of the department
is to define a strategic orientation for the investments of each insurance company and for VIG Insurance Group as a whole,
and to specify an investment strategy and investment process aimed at ensuring that current income is as high as possible,
but also as secure as possible, while simultaneously taking advantage of opportunities to increase the value of investments.
Guidelines and limits are used to manage investments. Regular reports are also provided for investments, limits and
income.
ACTUARIAL DEPARTMENT
The department has reported to Managing Board member Peter Thirring since November 2021. The head of the depart-
ment performs the Actuarial function required by Solvency II. The department is therefore responsible, in particular, for the
duties related to the Actuarial function. The Actuarial department also calculates the embedded value for the life and health
insurance businesses and prepares profitability analyses and company valuations. The department also assists actuarial
collaboration and functional networking.
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REINSURANCE
The department reports to Managing Board member Peter Höfinger. The department coordinates and assists all companies
in VIG Insurance Group and their reinsurance departments with reinsurance matters in the non-life business (property and
casualty, third party liability and accident insurance) by preparing and applying guidelines. The department also administers
Group-wide reinsurance programmes in the non-life lines of business. The primary objective is to create a safety net to
provide continuous protection for all of the companies in VIG Insurance Group against the negative effects of catastrophes,
individual large losses and negative changes in entire insurance portfolios.
PLANNING AND CONTROLLING
The department is an important part of the integrated risk management approach and reports to Managing Board member
Hartwig Löger. The department coordinates business planning over a 3-year horizon. The standardised reports include key
figure and variance analyses for planning, forecasts and ongoing performance of VIG Holding and other insurance com-
panies. Regular monthly premium reports, quarterly reports for each company (aggregated at the country and VIG Insurance
Group level) and cost reports are prepared.
VIG CORPORATE IT
The Group IT department reported to Managing Board member Peter Thirring until November 2021. As part of the change-
over to the new organisational structure, Group-related responsibilities were assigned to the VIG Corporate IT department,
which reports to Managing Board member Gerhard Lahner. The department is responsible for IT management at the VIG
Insurance Group level (IT strategy, IT governance, IT security, IT Group projects, etc.), for assisting companies in VIG Insur-
ance Group with large IT projects, and for developing Group-wide guidelines and common standards. The Austrian business
organisation assists the department with this by providing outside IT and telephony services.
TREASURY INCL. ASSET LIABILITY MANAGEMENT
The department reports to Gerhard Lahner. The Treasury department was merged with the Asset Liability Management
department at the end of 2021. The observation, measurement and optimisation of future cash flows on the asset and
liabilities sides are the main responsibilities of the Asset Liability Management department. It is also responsible for the
exchange of knowledge and improvements in the Group in this area.
INTERNAL AUDIT
The department reports to the Managing Board. Managing Board Chairwoman Elisabeth Stadler is the contact person in
the Managing Board. The Internal Audit department systematically monitors operating and business processes, the internal
control system of all operational business areas, including compliance with legal requirements, and the functionality and
adequacy of risk management. The department operates continuously and reports directly to the Managing Board. The head
of the department performs the Internal Audit function required by Solvency II.
Risk management processes
Many risk management processes have been established in the individual areas of the risk management system to cover
the entire risk management cycle from risk identification to risk assessment, risk control and risk monitoring. These pro-
cesses are governed by a number of internal guidelines. This ensures that VIG Insurance Group’s risk exposure is appropri-
ately recorded and taken into account when business decisions are made.
RISK IDENTIFICATION
The risk management process begins with the identification of risks. This is performed using a standardised process that
is supplemented by ad hoc analyses. A comprehensive reporting process ensures that newly identified risks and the effects
of extraordinary events are appropriately included in the risk profile.
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Annual Financial Report 2021
RISK ASSESSMENT
A
number of assessment methods are used to assess identified risks. Assessment is primarily based on internal models
and the standard model and is performed annually and during the year. If the standard formula is used for assessment, an
appropriateness check is also performed. The total risk is determined by aggregating the assessed risks, taking into account
diversification effects between the risks. The results of the own risk and solvency assessment, the embedded value for the
life and health insurance businesses, findings from the S&P capital model and value-at-risk calculations for the investments
area are also taken into account in the risk assessment.
RISK CONTROL
The risk strategy, planning, reinsurance programme, risk budgets and risk-bearing capacity are the most important elements
of risk control. The Managing Board reviews the risk strategy each year and makes any modifications needed. The Enter-
prise Risk Management department assists the Managing Board with this.
The Planning and Controlling department is responsible for performance of an annual planning process and subsequently
for monitoring day-to-day business development of the insurance companies of VIG Insurance Group. Regular reports are
used for this purpose, including variance analyses and forecast accounts for the financial year. The planning horizon is three
years. The planning data is used in Own Risk & Solvency Assessment (ORSA) and forms a starting basis for calculating future
expected solvency.
The Reinsurance department coordinates the Group-wide reinsurance programme and manages the annual renewal pro-
cess for natural catastrophe coverage. The Enterprise Risk Management department assists the Reinsurance department
in validating the external natural catastrophe models used and evaluating the effectiveness of reinsurance coverage using
the internal non-life model.
The Asset Risk Management department specifies quarterly risk budgets for investments. These budgets are then also used
to limit the value-at-risk for the investments.
RISK MONITORING
The solvency corridor defined at the Group level and the Group-wide limit system for risk-bearing capacity form the basis
for continuous monitoring of the solvency situation of the Group and subsidiaries.
Compliance with the securities guidelines, risk budgets and key figures is also continuously checked and monitored. Moni-
toring is performed by means of periodic fair value measurements, value-at-risk calculations and detailed sensitivity analyses
and stress tests and determining the solvency capital requirement during the year.
Liquidity risk is managed and monitored by matching the investment portfolio to insurance obligations. Operational and
strategic risks which might be caused by deficiencies or errors in business processes, controls and projects, or changes in
the business environment, are also continuously monitored by the internal control system.
Periodic risk monitoring is documented, for example, in the quarterly reports provided to the Managing Board following the
meetings of the Risk Committee and forms the starting point for any further analyses or corrective control measures.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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Risk categories
Because of its activities, VIG Insurance Group is exposed to a large number of financial and non-financial risks. The overall
risk of VIG Insurance Group can be divided into the following risk categories:
MARKET RISK
Market risk is the risk of losses due to changes in market prices. Changes in value occur, for example, due to changes in
yield curves, share prices, exchange rates and the value of land and buildings and participations.
CREDIT RISK
Credit risk quantifies the potential loss due to a deterioration of the situation of a counterparty against which claims exist.
UNDERWRITING RISKS
VIG Insurance Group’s core business consists of the transfer of risk from policyholders to the insurance company. Under-
writing risks in the areas of life insurance, health insurance and non-life insurance are primarily the result of changes in
insurance-specific parameters, such as loss frequency, loss amount or mortality, as well as lapse rates and lapse costs.
OPERATIONAL RISKS
Operational risks may result from deficiencies or errors in business processes, controls or projects caused by technology,
staff, organisation or external factors.
REPUTATION RISK
Reputation risk is the risk of negative changes in business due to damage to a company’s reputation.
LIQUIDITY RISK
This category includes the risk of VIG Insurance Group not having sufficient assets that can be liquidated at short notice to
satisfy its payment obligations.
STRATEGIC RISKS
Strategic risks can arise due to changes in the economic environment, case law, or the regulatory environment.
Managing significant risks
In addition to the risks in the property and casualty balance sheet unit and real estate investments that are modelled using
the partial internal model, the following risks must be noted due to their great importance for VIG Insurance Group:
• the interest rate risk portion of market risk, which primarily results from sales of long-term guarantee products,
• the asset credit quality and default risk inherent in investments, which can be assigned to credit risk and indirectly to
market risk,
• the share price risk portion of market risk, which results from direct or indirect holdings (e.g. in investment funds) of
equities and non-consolidated participations, and
• life insurance lapse risk, which can occur due to an increase in cancellation rates.
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Annual Financial Report 2021
MARKET RISK
VIG Insurance Group is exposed to market risk, that is, the risk of suffering losses as a result of changes to market parameters.
Interest rates, issuer spreads and share prices are the most relevant parameters for market risk. Ignoring investments held for
the account of and at the risk of policyholders, investments in insurance business consist largely of fixed-income securities.
The majority of these securities are denominated in euro and Czech koruna. Consequently, interest rate fluctuations and
exchange rate changes in these currencies primarily have an effect on the value of these financial assets.
The management of investments is aimed at providing coverage for insured risks that is appropriate for the insurance busi-
ness and the maturities of liabilities.
Depending on the purpose of the application, VIG Holding performs value-at-risk calculations for different sub-portfolios for
VIG Insurance Group. Confidence levels vary between 95.0% and 99.5%, and the holding period varies from 20 to 250
days. Due to the nature of the portfolio, interest rate and spread components make the largest contributions to value-at-
risk. As a plausibility check of the calculations, the value-at-risk for the most important sub-portfolios is determined using
both the parametric method described above and the historical calculation method.
The following table shows the value-at-risk (at a 99% confidence level) for financial assets that are measured as available
for sale or recognised at fair value through profit or loss (incl. held for trading).
Value-at-Risk 31.12.2021
31.12.2020
in EUR millions
10-day holding period 389.9
603.4
20-day holding period 551.5
853.3
60-day holding period 955.2
1,478.0
Market risk is divided into interest rate, spread, share price, currency, real estate and concentration risk. Interest rates,
spreads and share prices are the most relevant parameters for market risk.
Interest rate risk
The main source of interest rate risk is the sizeable portfolio of policies with guaranteed minimum interest rates, which
includes pension and endowment insurance, and the resulting investments. For existing life insurance policies, VIG
Insurance Group guarantees a minimum interest rate averaging around 1.80% p.a. (1.85% p.a.). If interest rates fall below
the guaranteed average minimum rate for a longer duration of time, VIG Insurance Group could find itself forced in the future
to use its capital to subsidise reserves for these products and consequently increase them through profit or loss as a result
of the adequacy test.
The embedded value in life and health insurance consists of the adjusted net assets at market value (ANAV) and the
value of the insurance portfolio (VIF). VIF is the present value of future profits (SPVFP), reduced by a risk margin. The
SPVFP was EUR 3,365,458,000 as of 31 December 2021. A 50 basis point drop in the yield curve would reduce the
SPVFP to EUR 2,891,006,000 which means the IFRS reserves are also adequate in this scenario. Also see the embedded
value sensitivity analysis on page 85.
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Spread risk
Spread risk arises from all assets and liabilities whose values depend on changes in the size of credit spreads over the
riskless yield curve. Duration and the creditworthiness of the debtor are the main factors determining the amount of spread
risk. Diversification and a uniform limit system for investments in fixed-interest instruments are used to limit this risk at the
portfolio level.
Share price risk
Among other things, share investments include partic
ipations in a number of Austrian companies and equity positions in
other companies whose shares trade primarily on the Vienna Stock Exchange or stock exchanges in the Eurozone or CEE
region. A deterioration of the current economic situation could result in the share portfolio losing value.
Shares serve to increase earnings over the long term, provide diversification and compensate for long-term erosion in value
due to inflation. VIG Insurance Group assesses share price risk by considering diversification within the overall portfolio and
correlation with other securities exposed to price risk. Risk diversification within the share portfolio is mainly achieved by
geographic diversification primarily in the home markets of the Group and in the Eurozone. Share investments are predomi-
nantly made by the Austrian companies.
Currency risk
To diversify its portfolio, the investment area also
makes use of international capital markets and, to a very small extent,
foreign currencies. The high degree of involvement in the CEE region results in currency risks at the VIG Insurance Group
level in spite of matching local currency investments made at the local level.
Concentration risk
Internal guidelines and the limit system are used to keep concentrations within the desired safety margin. Consultation
across business lines provides for a comprehensive view of all significant risks.
CAPITAL MARKET SCENARIO ANALYSIS
This analysis is carried out for all insurance companies in VIG Insurance Group in order to check the risk-bearing capacity
of the investments.
The sensitivity shocks for the individual asset classes show the ranges of market value reductions for the most important
risk factors (credit risk, interest rate risk, liquidity risk) and the resulting effects on the net fair value of assets minus liabilities.
The scenarios combine these individual shocks to illustrate different capital market possibilities.
Scenarios 1 and 2 strongly reduce the fair value of shares, bonds and property at the same time. They show two different
combinations of market value reductions over the main asset classes.
Scenario 3 shows a credit shock affecting stock and bond markets, scenario 4 is based on a shock to equity securities
(including property), and scenario 5 shows an interest rate shock that has a large effect on the value of bonds and property.
All of the scenario calculations were performed using a ceteris paribus approach.
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Annual Financial Report 2021
The following table shows the stress parameters and the effects on IFRS capital of each scenario on the respective dates
(not including deferred taxes, deferred profit participation or deferred mathematical reserve).
Reduction in market value Scenario 0
Scenario 1
Scenario 2
Scenario 3
Scenario 4
Scenario 5
of shares 0%
-20%
-10%
-20%
-20%
0%
of bonds 0%
-5%
-3%
-5%
0%
-5%
of real estate 0%
-5%
-10%
0%
-10%
-10%
Market value of assets less liabilities (in EUR millions) 7,750.6
5,474.2
6,101.3
5,715.3
6,728.1
5,773.5
In every scenario, the fair value of the assets is significantly higher than the value of the liabilities after stress.
CREDIT RISK FROM INVESTMENTS
When managing risks related to credit quality, a distinction must be made between liquid and tradable risks (e.g. exchange-
listed bonds) and bilateral risks, such as, for example, time deposits, OTC derivatives, loans, private placements and secu-
rities accounts/depositories. The risk is monitored by means of ratings and limited by diversification limits at the portfolio
level.
Consideration is only given to those issuers or contracting parties whose credit quality or reliability can be assessed by VIG
Insurance Group, whether on the basis of analyses performed by the Group, credit assessments/ratings from recognised
sources, provision of security (e.g. guarantor’s liability) or, to a certain extent, the possibility of recourse to reliable
mechanisms for safeguarding investments.
Under the investment guidelines, bond investments (which represent the largest share of investments) are made almost entirely
in the investment grade range. The goal is to achieve the greatest possible diversification among individual issuers, to avoid
accumulation risks, to ensure good average creditworthiness, to control foreign currency effects and to make the majority of
investments in mid to long-term maturities in order to reflect the maturity profile of the liabilities as efficiently as possible.
The book values of the investments as of 31 December 2021 are shown on page 66. Information on the securities and their
ratings is provided in Note 2.4 Other financial assets starting on page 98.
Use of ratings
The “second best rating” method specified under Solvency II is used as a rating method. The latest (issue or issuer) rating
from each of the three major rating agencies is used to determine the second best rating.
If the latest rating is an issuer rating, and this rating cannot be directly used due to a difference in quality of the security (e.g.
senior unsecured debt rating and a lower tier 2 bond), the rating is adjusted downwards appropriately. The adjustment is
one notch down for lower tier 2 bonds and two notches down for upper tier 2 or tier 1 bonds.
This results in up to three valid ratings for each bond. These ratings are then ranked according to increasing probability of
default and the rating with the second-lowest probability of default taken as the “second best rating”. If the ratings in first
and second place have the same probability of default, these two ratings are the “second best rating”. In cases where a
rating has only been assigned by one rating agency, due to a lack of other information, this rating is used as the “second
best rating”.
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CREDIT RISK FROM REINSURANCE
VIG Insurance Group cedes a portion of assumed risks to reinsurance companies. This transfer of risk to reinsurers does not,
however, relieve VIG Insurance Group of its obligations to policyholders. VIG Insurance Group is exposed to the risk of reinsurer
insolvency. VIG Holding therefore designs its reinsurance programme carefully and monitors reinsurer rating changes for VIG
Insurance Group.
UNDERWRITING RISKS
Underwriting risks are divided into life insurance, non-life insurance and health insurance (incl. accident insurance) and are
managed by the Actuarial department. It subjects all insurance solutions to in-depth actuarial analysis covering all lines of
insurance business (life, health as well as property and casualty).
The Actuarial function in the Actuarial department coordinates the Group-wide determination of underwriting provisions to
prepare the economic balance sheet in accordance with Solvency II.
Life underwriting risk and health underwriting risk
similar to life
Life underwriting risk includes lapse risk, cost risk, disability risk, morbidity risk, longevity risk, mortality risk, disaster risk
and audit risk. The main risks in this area are lapse risk and cost risk, as well as biometric risks, such as life expectancy,
occupational disability, illness and the need for nursing care.
To account for these underwriting risks, VIG Insurance Group has formed provisions for future insurance payments. VIG
Insurance Group calculates its underwriting provisions using recognised actuarial methods and assumptions. These as-
sumptions include estimates of the long-term interest rate trend, returns on investments, the allocation of investments
between equities, interest-bearing instruments and other categories, net income participations, mortality and morbidity
rates, lapse rates and future costs. The companies of VIG Insurance Group monitor actual experience relating to these
assumptions and adjust their long-term assumptions where changes of a long-term nature occur.
To minimise lapse risk, VIG Insurance Group uses an effective complaint management department, qualified advisors and
customer loyalty programmes to increase customer satisfaction and avoid cancellations. Policyholder cancellation behav-
iour is continuously monitored so that targeted measures can be taken if unfavourable changes occur.
The companies of VIG Insurance Group use regular analyses, targeted product design and detailed underwriting guidelines
to address these risks. A variety of reinsurance contracts also exist that help to reduce the general level of risk. A broadly
diversified product portfolio in all life and composite companies and a well-mixed customer base in the CEE region minimise
risk concentrations.
Non-life underwriting risk and health underwriting r
isk similar to non-life
Risk in the non-life sector is divided into premium risk, reserve risk, lapse risk and catastrophe risk. Property and casualty
underwriting risks are primarily managed using actuarial models for setting rates and monitoring the progress of claims, as
well as requirements for the assumption of insurance risks.
Health underwriting risk is primarily concentrated in the Austrian companies. In the CEE markets, motor third party liability
has a high volume compared to the other lines of business. This risk concentration was consciously accepted in order to
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Annual Financial Report 2021
enter these markets. The strong market position and above-average growth prospects in the CEE region will help growth
in the other lines of business, thereby reducing the concentration in motor third party liability.
The environmental catastrophes that have been becoming increasingly common in recent years, such as floods, (hail)
storms, mudslides and landslides may have been brought about by general climate change. The number of claims caused
in this way may continue to rise in the future.
VIG Insurance Group forms provisions for claims and claims settlement expenses and regularly monitors them in order to
effectively cover the risk associated with the insurance business. This risk is also significantly reduced by ceding
reinsurance.
LIQUIDITY RISK
Efficient asset liability management can be used to prevent liquidity shortages. Investments and obligations are analysed
regularly to identify liquidity needs. These analyses, together with clear investment requirements (limit systems) and a con-
servative investment policy, help to appropriately manage liquidity risk. The Treasury department, incl. Asset Liability Man-
agement, is responsible for the ongoing monitoring of cash flows and regular reporting on liquidity changes.
To ensure that every company continues to have adequate liquidity in the future, VIG Holding guidelines specify liquidity
management standards that must be observed Group-wide by every company. Among other things, these standards re-
quire a regular examination of current and future cash inflows and outflows.
Underwriting liquidity analysis
A comparison of the expected payments from the insurance business for one year and freely disposable investments shows
that underwriting does not create any liquidity risk.
The expected payments were derived from the maturities of the mathematical reserve and the provision for outstanding
claims. Cash and cash equivalents and financial assets with no maturity or maturities of up to one year were defined as
freely disposable investments.
OTHER RISKS
Business activities result in other risks that are assessed and managed as part of risk management. These include, in
particular, operational risks, as well as reputation risks and strategic risks.
In addition, a comprehensive internal control system (ICS) ensures that adequate risk control infrastructure has been set up
for operational risks and is regularly checked for appropriateness and effectiveness. The ICS itself is comprised of all meas-
ures and control activities used to minimise risks – particularly for the areas of accounting and compliance, but also for
other operational risks. It extends from specially established processes, organisational units such as accounting and con-
trolling, all the way to guidelines, regulations and individual controls within processes, such as automated audits or use of
the four-eyes principle.
Aspects of the legal tax framework affecting earnings
Changes to tax law may negatively affect the attractiveness of certain products that currently enjoy tax advantages. For
example, the introduction of laws to reduce the tax advantages of the VIG Insurance Group’s retirement benefit products
or other life insurance products could considerably diminish their attractiveness.
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Regulatory environment
VIG Insurance Group is subject to domestic and foreign (insurance) supervisory regulations. These regulations govern such
matters as:
• Capital requirements of insurance companies and insurance groups
• Admissibility of investments as security for underwriting provisions
• Licences of the different insurance companies of VIG Insurance Group
• Marketing activities and the sale of insurance policies and
• Cancellation rights of policyholders.
Changes to the statutory framework may make restructuring necessary, thus resulting in increased costs.
Developments in Central and Eastern Europe
The expansion and development of business operations
in the countries of Central and Eastern Europe is a core component
of VIG Holding’s strategy. It has a very strong presence in these countries through its subsidiaries. The prescribed risk
guidelines ensure consistent risk management in all CEE countries in VIG Insurance Group.
Concentration risk
Concentration risk is due to the strategic partnershi
p with the Erste Group and VIG Insurance Group consciously accepts
this risk. Exposure is regularly assessed and monitored by the risk management processes that have been established.
Risks due to mergers and acquisitions
In the past, VIG Holding acquired directly and indirectly a number of companies in Central and Eastern Europe or acquired
participations in these companies. Mergers of subsidiaries are considered if the synergies that can be achieved outweigh
the benefits of multiple market presences. Mergers and acquisitions often bring challenges in terms of corporate manage-
ment and financing, such as:
• the need to integrate the infrastructure of the acquired or merged company, including management information
systems, and risk management and controlling systems,
• handling unsettled matters of a legal or regulatory nature and associated legal and compliance risks resulting from the
merger or acquisition,
• integration of marketing, customer support and product ranges, and
• integration of different corporate and management cultures.
When performing mergers, a number of additional risks must be taken into account in the strategy, in particular process
and organisational risks.
Sustainability risks
Events or changes in conditions in the environmental
or social areas could potentially have a negative effect on the VIG
Group’s net assets, financial position and results of operations, as well as its reputation. These include, among others,
• climate change,
• potentially stricter requirements for sustainability in the area of environmental protection,
• political measures to promote sustainable investment, and
• stricter requirements for a sustainable social environment (labour standards, occupational safety and working
conditions, compensation, etc.).
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Annual Financial Report 2021
VIG Insurance Group implicitly includes sustainability risks in its regular risk management processes (e.g. ORSA).
An explicit assessment of sustainability risks was started during the reporting period based on the Austrian Financial Market
Authority Guide for Managing Sustainability Risks. This was the first step in the integration of sustainability risks in existing
risk management processes. Attention was also paid to the management of sustainability risks in internal (risk management)
guidelines.
An initial list of sustainability risks was prepared in order to ensure a structured approach to the identification and
assessment of sustainability risks in VIG Insurance Group. This list was used during the regular Group-wide risk inventory
process, both in the individual VIG insurance companies and VIG Holding, for further identification and assessment of
sustainability risks.
The analysis of sustainability risk showed that VIG Insurance Group sustainability risks are currently mainly low to medium-
level risks. These risks are nevertheless expected to become more relevant in the future, due in part to the increasing
importance of this topic.
Climate risks
Climate change and associated risks are one of the current sustainability issues. Although insurance companies have always
been concerned with potential losses due to natural risks, global warming is underscoring the urgency of this problem. The
main new risks are, in particular, a potential increase in the frequency and size of losses and the possibility of stricter
requirements and political measures related to climate change (e.g. expanded reporting, investment restrictions).
To meet these challenges, a VIG Insurance Group climate change strategy was approved in 2019 and slightly modified again
in financial year 2021. In addition to general principles for dealing with climate change, the climate change strategy also pro-
vides guidelines for investments and insurance business operations. For example, VIG Insurance Group is completely elimi-
nating investments in the coal sector and has significantly limited insurance coverage for new coal mining and coal-fired power
plant projects. The complete climate change strategy is available on the website at www.vig.com/klimawandelstrategie.
VIG Insurance Group greatly increased its underwriting know-how in previous years. Special scenario analyses have been
performed since 2019 to estimate how climate change will affect the frequency and size of losses and, therefore, the
insurance business in different sectors. The medium and long-term effects of climate change are also examined in the “Own
Risk and Solvency Assessment” (ORSA). The main focus is on potential extreme weather events, such as flooding, earth-
quakes, storms and severe weather with hail. Current scientific studies are used to analyse the possible effects of global
warming of 1.5°C, 2.0°C and 3.0°C above pre-industrial levels. Natural disasters and their effects are modelled with the
help of external experts. The risk models used are constantly improved based on new data and findings, such as newly
built flood protection measures.
VIG Insurance Group is using its increased underwriting knowledge to purchase reinsurance for the risks it assumes. The
more frequent extreme weather events are increasingly affecting the support provided to corporate and large customers,
that is, the underwriting process. The support process begins with a careful analysis of the risk situation and protective
measures that have already been implemented. The experts at the partner company RiskConsult use this to develop
individually tailored recommendations for further improving the risk situation and preventing losses. Companies have an
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
81
incentive to implement the recommendations because it could reduce their premiums. Due to global warming, preventing
losses due to natural disasters is playing an increasingly important role in this process.
All known climate risks were included in the valuation of the assets and liabilities in these consolidated financial statements.
For more information, please refer to the storm and severe weather losses that occurred during the financial year and were
included in the balance sheet and income statement.
RISKS AND INFORMATION IN CONNECTION WITH THE COVID-19 PANDEMIC
Going concern
The financial statements were prepared on a going concern basis in accordance with IAS 1.25 and IAS 1.26. The Managing
Board made this assessment in spite of the ongoing COVID-19 pandemic primarily based on VIG Insurance Group’s solid
capital resources, positive result before taxes and risk-averse investment.
Risks related to the COVID-19 pandemic
A further lengthening or worsening of the COVID-19 pandemic, and the potential impacts this could have on capital markets
and the insurance business, could have a negative effect on the net assets, financial position and results of operations of
VIG Insurance Group. This includes, in particular, risks related to possible fluctuations on bond and capital markets that
were also observed in the early phase of the COVID-19 pandemic. If the COVID-19 pandemic continues or worsens again,
there are also risks on a smaller scale of an increase in claims and reduction of premium volume.
Insurance business
Premium development
The insurance business is subject to seasonal and economic effects. Most of the premiums are generated in the 1
st
half of
the year, with new policies in the property lines of business in the eastern countries of VIG Insurance Group mostly already
concluded at the beginning of the year. In the property lines of business, premiums written are showing a significant recovery
that considerably exceeds the level prior to the COVID-19 pandemic. Health insurance also continues to show an increase
this year. VIG Insurance Group is focusing on this line of business and sees the COVID-19 pandemic as having a reinforcing
effect on this fundamental focus. In VIG Insurance Group, policyholders once again hardly made use of any deferrals or
premium waivers.
Claims and cost development
The stable development of the claims ratio is due to a fundamentally better claims experience and lower high frequency
claims, among other things. It is still not possible to directly determine the positive effects of the COVID-19 pandemic.
Underwriting provisions
In the area of reserves for incurred but not reported (IBNR) claims, additional reserves were included due to an increase in
expected late claim notifications and uncertainty about future developments. Additional provisions for unearned premiums
were also formed for loss-generating business. VIG Insurance Group is holding around EUR 84.3 million in provisions. The
adequacy of the underwriting provisions is checked in detail each year as part of the liability adequacy test during pre-
paration of the consolidated financial statements. The comparison of the best estimate (after reinsurance) calculated based
on the Solvency II principles with the IFRS provisions (after reinsurance) showed a significant surplus. As before, the IFRS
provisions can therefore be considered adequate. Detailed information is available on page 74 in the risk report.
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Annual Financial Report 2021
Intangible assets
VIG Insurance Group tests intangible assets for impairment at least once a year in accordance with the method explained
in the Impairment of non-financial assets section starting on page 42. In connection with the global COVID-19 pandemic,
several triggers emerged leading to an unscheduled impairment test of intangible assets in the 1
st
half of 2020. This resulted
in impairments of EUR 118.1 million in Bulgaria, Croatia and Georgia in the 1
st
half of 2020. No impairment was found in
financial year 2021.
Leases
Due to the effects of the COVID-19 pandemic on financial markets and classification of the COVID-19 pandemic as a
triggering event, the incremental borrowing rate used for measuring newly concluded or modified lease liabilities was up-
dated for 2020. Since it is updated at least once a year, the incremental borrowing rate did not have to be adjusted again
due to the COVID-19 pandemic in financial year 2021.
VIG Insurance Group waived around EUR 2.0 million for operating leases in financial year 2021. Deferrals were only used
or granted to an insignificant extent in financial year 2021.
Investments
Market risk and capital market scenario analysis
The market risks, including associated discussions, are presented in the risk report starting on page 74, and the change in
fair value and resulting effect on assets, including associated discussions, is provided starting on page 75.
Financial result
In Note 16. Financial result excl. result from shares in at equity consolidated companies starting on page 120, around
EUR 19.8 million in impairments of available-for-sale financial assets is recognised in the income statement for financial
year 2021. The impairments shown are at the pre-crisis level and are not due to the effects of the COVID-19 pandemic.
Result from shares in at equity consolidated companies
VIG Insurance Group holds shares in the company Österreichisches Verkehrsbüro AG, which is accounted for using the at
equity method. Due to the COVID-19 pandemic, around EUR 29 million in impairment was recognised for these shares in
financial year 2020. No further impairment was found to be needed in financial year 2021.
Other Information
Loans
Based on the data provided for overdue loans, there is no observable effect.
Receivables
Due to the COVID-19 pandemic, around EUR 4.5 million (EUR 6.3 million) in impairments were recognised for underwriting
receivables that were no longer considered recoverable or collectible at the end of the year. EUR 1.2 million of the impair-
ments performed in the previous year due to the COVID-19 pandemic were reversed in profit or loss. The amounts that
were deferred after agreement between the insurance companies and policyholders were not classified as past due.
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Group subsidiary dividends
Due to the COVID-19 pandemic and uncertainty about future economic developments, national supervisory authorities in
some countries where VIG Insurance Group operates recommended that dividends be deferred or suspended until the
effects of the COVID-19 pandemic can be better estimated. All these restrictions on dividend distributions have been re-
moved in the meantime. This had no effect on the cash and cash equivalents available to VIG Insurance Group as a whole
or the consolidated cash flow statement.
Government grants
There are many government initiatives in all of the countries where VIG Insurance Group operates that are aimed at boosting
their domestic economies again. Government grants are only used to a very small extent. These grants concern, among
other things, compensation for short-time work for companies operating in the hotel industry, childcare allowance and
reduced taxes on low salaries. Although applications were submitted and approved for some grants, they have no material
effect on net assets, financial position or results of operations.
Government grants 1.1.-31.12.2021
1.1.-31.12.2020
in EUR '000
Government – through Income Statement 1,206
990
Grants related to income – shown separately 9
4
Grants related to income – deducted from the related expense 1,197
986
Value of deferred taxes
A test performed at the Group level in coordination with the local companies indicated that the deferred tax assets shown
in this annual report continue to show no need for impairment.
Non-underwriting provisions
No significant amounts were recognised for provisions.
Contingent receivables and liabilities
No significant changes to contingent receivables and liabilities were found.
Related parties
There were no related party effects due to the COVID-19 pandemic.
Estimates and discretionary decisions
The most significant effects from estimates and discretionary decisions concern the underwriting provisions and receivables,
which are discussed above.
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Annual Financial Report 2021
Portfolio changes in the life line of business
Portfolio changes in the life line of
business
Endowment insurance excl. risk
insurance
Risk insurance Annuity insurance
No. of policies
Amt. insured
No. of policies
Amt. insured
No. of policies
Amt. insured
Quantity
in EUR '000
Quantity
in EUR '000
Quantity
in EUR '000
As of 31.12.2020 1,925,740
22,457,357
2,122,016
151,557,776
520,178
12,157,295
Exchange rate differences 68,018
263,900
525
As of 1.1.2021 1,925,740
22,525,375
2,122,016
151,821,676
520,178
12,157,820
Additions 99,509
1,441,420
841,776
15,595,919
23,298
709,914
New business 99,509
1,342,096
841,776
14,503,753
23,298
580,868
Increases 99,324
1,092,166
129,046
Changes 45,797
-740,812
-10,837
2,231,374
1,079
-65,746
Changes in additions 67,444
506,949
34,371
5,208,271
8,297
328,955
Changes in disposals -21,647
-1,247,761
-45,208
-2,976,897
-7,218
-394,701
Disposals due to maturity -91,373
-1,327,362
-411,292
-7,803,294
-18,876
-239,607
Due to expiration -65,435
-1,175,606
-405,011
-7,691,772
-17,621
-213,813
Due to death -25,938
-151,756
-6,281
-111,522
-1,255
-25,794
Premature disposals -85,709
-1,299,650
-301,930
-5,123,962
-18,821
-425,239
Due to non-redemption -2,277
-20,790
-21,827
-188,978
-457
-15,203
Due to lapse without payment -9,451
-137,191
-180,556
-3,507,481
-1,633
-41,904
Due to surrender -73,503
-1,081,771
-95,039
-1,151,071
-16,731
-297,031
Due to waiver of premium -478
-59,898
-4,508
-276,432
0
-71,101
As of 31.12.2021 1,893,964
20,598,971
2,239,733
156,721,713
506,858
12,137,142
Portfolio changes in the life line of
business
Unit- and index-linked insurance Government sponsored pension plans Total
No. of policies
Amt. insured
No. of policies
Amt. insured
No. of policies
Amt. insured
Quantity
in EUR
'000
Quantity
in EUR '000
Quantity
in EUR '000
As of 31.12.2020 1,865,918
17,878,988
486,056
9,654,453
6,919,908
213,705,869
Exchange rate differences 454,394
-3,514
783,323
As of 1.1.2021 1,865,918
18,333,382
486,056
9,650,939
6,919,908
214,489,192
Additions 145,387
2,095,688
17,807
567,247
1,127,777
20,410,188
New business 145,387
1,980,547
17,807
284,185
1,127,777
18,691,449
Increases 115,141
283,062
1,718,739
Changes -52,942
259,462
-670
427,037
-17,573
2,111,315
Changes in additions 44,384
781,074
221,774
4,961,918
376,270
11,787,167
Changes in disposals -97,326
-521,612
-222,444
-4,534,881
-393,843
-9,675,852
Disposals due to maturity -43,030
-502,384
-2,952
-45,742
-567,523
-9,918,389
Due to expiration -38,281
-458,110
-1,964
-34,514
-528,312
-9,573,815
Due to death -4,749
-44,274
-988
-11,228
-39,211
-344,574
Premature disposals -141,972
-1,947,708
-20,913
-456,042
-569,345
-9,252,601
Due to non-redemption -23,912
-113,561
-434
-9,464
-48,907
-347,996
Due to lapse without payment -48,878
-609,065
-780
-2,692
-241,298
-4,298,333
Due to surrender -66,183
-920,268
-19,699
-310,826
-271,155
-3,760,967
Due to waiver of premium -2,999
-304,814
0
-133,060
-7,985
-845,305
As of 31.12.2021 1,773,361
18,238,440
479,328
10,143,439
6,893,244
217,839,705
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85
EMBEDDED VALUE SENSITIVITY ANALYSES FOR THE LIFE AND HEALTH INSURANCE BUSINESSES
The following table shows the sensitivities for changes in the assumptions used to calculate the embedded value for the life
and health insurance businesses and value of new business as of 31 December 2021:
Embedded value for the life and health insurance business
Austria/
Germany
Change
CEE
Change
Total
Change
in EUR '000
in %
in EUR '000
in %
in EUR '000
in %
Base value 2,004,436
1,843,341
3,847,777
Increase in yield curve 0.5% 422,765
21.1
9,190
0.5
431,955
11.2
Decrease in yield curve 0.5% -578,625 -28.9 -14,546 -0.8 -593,171 -15.4
Decrease in share and real estate values 25% as of the
reporting date
-408,757 -20.4 -26,441 -1.4 -435,198 -11.3
Decrease in administrative expenses 10% 124,771
6.2
46,337
2.5
171,108
4.4
Decrease in lapse rates 10% 9,870
0.5
35,178
1.9
45,048
1.2
Decrease in mortality 5% for endowment and risk insurance 19,558
1.0
34,127
1.9
53,684
1.4
Decrease in mortality 5% for annuities -28,490 -1.4 -1,038 -0.1 -29,528 -0.8
No volatility adjustment -45,822 -2.3 -3,133 -0.2 -48,955 -1.3
Value of new business Austria/
Germany
Change
CEE
Change
Total
Change
in EUR '000
in %
in EUR '000
in %
in EUR '000
in %
Base value 32,302
41,339
73,641
Increase in yield curve 0.5% 7,938
24.6
2,090
5.1
10,029
13.6
Decrease in yield curve 0.5% -16,835 -52.1 -2,757 -6.7 -19,592 -26.6
Decrease in administrative expenses 10% 3,812
11.8
4,365
10.6
8,177
11.1
Decrease in lapse rates 10% 1,481
4.6
4,040
9.8
5,520
7.5
Decrease in mortality 5% for endowment and risk insurance 1,962
6.1
5,035
12.2
6,997
9.5
Decrease in mortality 5% for annuities -669 -2.1 89
0.2
-581 -0.8
No volatility adjustment -1,252 -3.9 -779 -1.9 -2,031 -2.8
T
he sensitivities are based on the same management rules and policyholder behaviour as the base case. Each sensitivity
is calculated separately. If two events occur simultaneously, the effect is not necessarily equal to the sum of the individual
sensitivities.
Provisions in the property and casualty line of business
GENERAL INFORMATION
If claims are asserted by or against policyholders, all amounts that a company in the property and casualty line of business
pays or expects to have to pay to the claimant are referred to as losses, and the costs of investigating, adjusting and
processing these claims are referred to as “claims settlement expenses”. The companies in VIG Insurance Group have
formed provisions by lines of business, extent of cover and year to pay for losses and claims settlement expenses due to
claims under property and casualty insurance policies.
Losses and claims settlement expenses can be divided into two categories: reserves for known but still outstanding claims,
and reserves for claims that have been incurred but have not yet been reported, or the correct amount has not been
reported (“IBNR”, “IBNER”). Provisions for outstanding claims are based on estimates of future payments, including claims
settlement expenses, for these claims. These estimates are made on a case-by-case basis in accordance with facts and
circumstances ascertainable at the time the provision is formed.
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Annual Financial Report 2021
The estimates reflect the well-founded judgement of the companies of VIG Insurance Group adjusters based on general
practices for forming insurance provisions and a knowledge of the nature and value of each type of claim. These provisions
are adjusted regularly during normal processing and represent the expected eventual costs necessary to finally settle all
pending reported claims, taking into account inflation, interest rates and other social and economic factors that could affect
the amount of provisions that are required.
Historical developments in distribution patterns and claims payments, the level of reported and still outstanding claims and
the nature of the extent of cover are also taken into account. In addition, court decisions and economic conditions can also
affect the estimate of provisions and the eventual size of claims.
IBNR and IBNER provisions are formed to offset the expected costs of losses that have been incurred but not yet reported
to the individual insurance companies. These provisions, just like the provisions for reported claims, are formed to pay the
expected costs, including claims settlement expenses, necessary to finally settle these claims. Because, by definition, the
extent of these losses is still unknown when the provisions are formed, VIG Insurance Group calculates its IBNR and IBNER
provisions based on historical claims experience, adjusted for current developments in claims-related factors. These
provisions are based on estimates made using actuarial and statistical forecasts of the expected costs to finally settle these
claims. The analyses are based on the facts and circumstances known at the time and on expectations regarding changes
in legal and/or economic factors that determine the level of loss, such as case law, the inflation rate and labour costs. These
provisions are regularly reviewed and revised once additional information is known and claims are actually reported. The
time needed to learn of these claims and settle them is an important factor that must be taken into account when forming
provisions.
Claims which are easy to settle, such as property damage under motor insurance, are reported within a few days or weeks
and are normally settled within a year.
More complicated claims, such as personal injury under motor or general liability insurance, typically require longer settle-
ment times (on average four to six years, in some cases considerably longer). Difficult claims, where settlement regularly
depends on the results of often protracted litigation, also lead to substantially longer settlement times, especially in the
liability, casualty, building and professional liability lines of business.
The final costs of the claims and claims settlement expenses depend on a number of variable circumstances. Between the
time a claim is reported and final settlement, changing circumstances may require that the provisions that were formed be
revised upwards or downwards. For example, changes in the law, the outcome of litigation and changes in medical costs,
costs for materials for car and house repair and hourly wage rates, loss frequency and loss amount can have a substantial
effect on the costs of claims. These factors may result in actual developments differing from expectations – sometimes
substantially. Loss reserve estimates are regularly reviewed and updated, using the most recent information available to the
Managing Board.
Any changes to provision estimates are reflected in the operating result. The conservative policy toward provisions of VIG
Insurance Group is shown, for example, by the fact that liquidation of loss reserves has generally led to a profit. Based on
VIG Insurance Group’s internal procedures and the information currently available to it, management believes that the VIG
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
87
Insurance Group’s provisions in the property and casualty insurance area are adequate. Forming loss reserves is an uncer-
tain process and therefore no guarantee can be given that in the end losses will not differ from initial estimates.
CHANGES IN CLAIMS PAYMENTS AND GROSS LOSS RESERVE
The following tables show claims payments for individual years of occurrence and VIG Insurance Group’s direct loss reserves
at the end of each year indicated. The provisions reflect the amount of expected losses, based on claims that occurred in
the current and all previous loss years and had not yet been paid as of the balance sheet date, including IBNR and IBNER.
Interpreting the information contained in this table requires caution, because each amount contains the effects of all changes
from the previous periods. The circumstances and trends that affected liability in the past could possibly recur in the future
and therefore no conclusions can be drawn from the information given in this table as to future results.
Claim payments for each year of occurrence on the applicable balance sheet date (gross)
Year of occurrence
Calendar year
≤2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
in EUR '000
2012 and before 2,706,016
1,083,787
440,873
259,093
227,375
140,681
123,765
89,808
81,517
56,278
2013 1,811,908
705,274
179,122
130,960
70,628
36,587
26,229
14,666
9,164
2014 1,545,509
773,664
192,081
101,832
54,209
66,232
24,281
14,714
2015 1,565,072
734,971
212,354
91,806
60,484
33,766
22,621
2016 1,619,590
806,055
204,162
108,102
79,211
35,983
2017 1,827,020
885,844
237,052
111,119
82,846
2018 1,816,053
877,898
237,846
117,315
2019 2,069,673
870,191
210,713
2020 1,925,211
887,732
2021 2,232,080
Total 2,706,016
2,895,695
2,691,656
2,776,951
2,904,977
3,158,570
3,212,426
3,535,478
3,377,808
3,669,446
Loss reserve for each year of occurrence on the applicable balance sheet date (gross)
Year of occurrence
Calendar year
≤2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
in EUR '000
2012 and before 3,804,505
2,245,220
1,622,191
1,246,476
1,048,269
919,966
792,847
736,440
696,150
634,242
2013 1,695,511
789,978
480,548
280,509
197,735
154,313
109,965
99,632
87,391
2014 1,749,247
813,249
468,519
313,557
234,036
158,058
131,716
116,568
2015 1,687,291
787,903
467,615
299,946
216,863
173,143
145,309
2016 1,757,426
803,864
497,502
329,162
262,292
221,401
2017 1,903,463
863,161
512,025
345,528
220,739
2018 1,999,997
957,118
571,423
354,520
2019 2,156,013
949,167
571,859
2020 2,387,581
1,075,434
2021 2,855,356
Total 3,804,505
3,940,731
4,161,416
4,227,564
4,342,626
4,606,200
4,841,802
5,175,644
5,616,632
6,282,819
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Annual Financial Report 2021
Reinsurance
VIG Insurance Group limits its potential liability arising from the insurance business by passing on, to the extent necessary,
a portion of the assumed risks to the international reinsurance market. Some of the risks of insurance companies are
reinsured within VIG Insurance Group and these risks are in turn ceded to external reinsurers at the Group level.
REINSURANCE GUIDELINES
The reinsurance guidelines are jointly determined each year by the corporate Reinsurance department and the member of
the Managing Board responsible for reinsurance during the development of the reinsurance strategy for the next financial
year. They require each insurance company to provide, in consultation with the corporate Reinsurance department, rein-
surance coverage that is appropriate for its local company. These guidelines govern the following points.
Reinsurance is a prerequisite for the acceptance of insurance coverage
Underwriting departments may only make a binding commitment to insure a risk above a certain limit if sufficient reinsurance
coverage has already been assured.
Retention
It is Group-wide policy that no more than EUR 50.0 million for the first two natural disaster events and EUR 20.0 million for
each additional event can be placed at risk on a PML (probable maximum loss) basis. The maximum Group-wide retention
per individual loss is less than EUR 15.0 million.
Selection of reinsurers – diversification
VIG Holding and its subsidiaries divide their reinsurance coverage among many different international reinsurance companies
that VIG Holding feels have appropriate credit quality, so as to minimise the risk arising from one reinsurer’s inability to pay
(credit risk). The monetary limit per reinsurer is set individually for each subsidiary.
Selection of reinsurers – ratings
For lines of business where claims settlement takes a long time, in particular for motor third party liability, general liability
and aviation, VIG Insurance Group uses reinsurers with outstanding ratings (at least a Standard & Poor’s rating of A, pref-
erably a rating of AA or higher), which in all likelihood will also continue to exist over the long term. For lines of business with
claims that are settled quickly (for example, natural catastrophes, fire, technology, transportation, storm, burglary, household,
water pipes, motor own damage), where the number of reinsurers is greater, the preferred rating is Standard & Poor’s A or
higher. Only in a few cases – and for limited periods of time – are reinsurers with lower ratings accepted.
Reinsurers’ share of underwriting provisions – ratings
The following table shows the reinsurers’ share in underwriting provisions in the property and casualty insurance balance
sheet unit for different ratings and balance sheet dates:
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
89
31.12.2021
31.12.2020
in %
AAA 9.14
10.97
AA 35.57
38.67
A 50.70
45.03
BBB 2.76
2.99
BB and lower 0.85
1.12
No rating 0.98
1.22
As a result of the good credit quality of VIG Insurance Group’s reinsurers, no valuation allowances were needed for reinsurers’
shares as of the 31 December 2021 and 31 December 2020 balance sheet dates.
Design of reinsurance programmes
If it can be justified economically, any subsidiary can purchase reinsurance coverage individually from external reinsurers. If
individual reinsurance policies can only be purchased by a subsidiary at uneconomical terms, VIG Insurance Group strives,
as far as possible, to jointly place reinsurance contracts covering risks from natural catastrophes, property lines of business,
casualty, transport, aviation and motor liability. If necessary, intra-Group assumptions of reinsurance are also passed on as
retrocession in the reinsurance market for safety reasons. The guidelines for Wiener Städtische reinsurance coverage are
presented below. Retentions for all other insurance companies are below those of Wiener Städtische.
REINSURANCE COVERAGE USING THE EXAMPLE OF WIENER STÄDTISCHE
Natural catastrophes
Wiener Städtische provides insurance for damage caus
ed by natural catastrophes such as storms, hail, flooding or earth-
quakes. Wiener Städtische uses reinsurance coverage to limit its retention for natural disasters to EUR 15.0 million for the
first loss event and EUR 2.5 million for each additional event.
Private customer business
The private customer business consists of essentially stable insurance portfolios having calculable results that are charac-
terised above all by a stable claims frequency. Thus, such recurrent claims are only reinsured in exposed lines of business,
for example storm insurance, with a targeted use of proportional reinsurance to reduce the effects on the retention. The
effects on the retention of the small number of expected major losses are covered by non-proportional reinsurance. Wiener
Städtische’s maximum net loss is between EUR 1.0 million and EUR 2.0 million, depending on the line of business.
Management and control
LIQUIDITY MANAGEMENT
VIG Insurance Group manages its liquidity using guidelines approved by the Managing Board of VIG Holding. As a rule, VIG
Holding and each subsidiary are responsible for their own liquidity planning. As the parent company, VIG Holding is respon-
sible for allocating capital for VIG Insurance Group as a whole. This allows capital to be efficiently distributed within VIG
Insurance Group. It also allows VIG Holding to ensure that the target levels of liquidity and capital resources are available
both at the VIG Insurance Group level and in the individual operating units.
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Annual Financial Report 2021
Most of the liquidity for day-to-day operations comes from premiums received from primary insurance, regular income from
investments and proceeds from the sale of investments. These inflows are offset by payments for property and casualty
insurance claims, and benefit payments for life and health insurance. The remaining net liquidity is used to cover acquisition
and operating costs.
The maturity pattern of the insurance business provides a natural liquidity buffer. Unlike the premiums received, VIG Insur-
ance Group guarantees insurance coverage for a certain period of time, and no cash outflow occurs during this period until
an insured event occurs. The liquidity buffer is invested during this period and generates investment income. A portion is
held in the form of liquid investments to ensure that it can be quickly converted into cash to pay claims. In addition, the
bond portfolio, in particular, is structured so that the proceeds from maturing bonds are received on the dates it is antici-
pated they will be needed. External influence factors, such as capital market developments and the interest rate level, affect
the liquidity situation by improving or restricting the ability to sell the investment portfolio at market value.
The time, frequency and size of insured claims are also important for the liquidity situation of property and casualty insurance.
The number of policy extensions also plays a role.
The liquidity needs for life insurance are generally affected by the difference between actual mortality experience and the
assumptions used to calculate underwriting provisions. Market returns or minimum interest rates and the behaviour of life
insurance customers, such as the number of policies surrendered or terminated, also have an effect on liquidity needs.
CAPITAL MANAGEMENT
In the interests of our shareholders and insurance customers, our goal is to ensure that VIG Holding has adequate capital
resources at all times and that all operating insurance companies fulfil their respective minimum regulatory capital require-
ments. Due to its successful business strategy, VIG Holding has traditionally had very good capital resources. Maintaining
this good capital base in the future is also important to us, both to allow us to take advantage of profitable growth oppor-
tunities and to cushion the effects of large loss events.
Standard & Poor’s rating
VIG Holding also places great importance on maintaining a strong credit rating with Standard & Poor’s (S&P) and therefore
regularly undergoes rating by S&P. S&P has its own capital model for assessing the relationship between the risk capital
required by a company and the capital resources available to it. In December 2021, S&P affirmed the A+ rating with a
“stable” outlook. Capital resources exceed the requirements for the AAA level.
The subordinated bonds issued in 2013 (EUR 500 million, tier 2, first call date 9 October 2023), 2015 (EUR 400 million, tier 2,
first call date 2 March 2026) and 2017 (EUR 200 million, tier 2, first call date 13 April 2027) have been rated A- by S&P. The
senior sustainability bond that was issued in 2021 (EUR 500 million, bullet bond, 15-year term) was assigned an A rating
by S&P. It does not satisfy S&P’s criteria for inclusion as capital.
Active capital management
VIG Holding uses the criteria above to monitor its capital positions and takes appropriate measures to further improve its
capital structure and strengthen its capital and solvency situation over the long term. VIG Holding has set itself a goal of
holding the solvency ratio at the current level in all of the insurance companies in the Group in spite of planned growth. A
solvency corridor of 150% to 200% at the Solvency II Group level has been specified by VIG Holding without taking into
account transitionals for underwriting provisions used by some individual Group companies.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
91
Capital management focuses on subordinated long-term liabilities with equity-like characteristics. The Treasury department,
incl. Asset Liability Management, continuously monitors capital market developments, with particular attention to develop-
ments concerning bonds with equity-like characteristics from the European insurance sector. New capital instruments de-
veloping in the capital market for insurance companies are examined for applicability to VIG Holding.
Capital resources
As of 31 December 2021, 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 2021
(2020: none). In addition, VIG Holding can, according to the authorisation by the shareholders, increase its shareholders’
equity by issuing common or preferred shares. The individual authorisations are listed in Note 8. Consolidated shareholders’
equity starting on page 106.
VIG Insurance Group had an auditor-reviewed solvency ratio defined based on Solvency II of 249.5% as of 31 December 2021
(31 December 2020: 238.1%).
Long-term debt financing
VIG Insurance Group had subordinated bonds with a wi
de range of maturities outstanding as of 31 December 2021. De-
tailed information on the VIG Insurance Group bond programme is provided in Note 9. Subordinated liabilities starting on
page 110. As shown by the maturities, VIG Insurance Group’s focus is on subordinated liabilities that are eligible capital.
General capital market conditions and other circumstances that affect the financial services sector as a whole or VIG Insur-
ance Group in particular could have an adverse effect on the cost and availability of debt financing. The goal, therefore, is
to actively manage the capital structure to keep refinancing risks as low as possible.
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Annual Financial Report 2021
NOTES TO THE CONSOLIDATED BALANCE SHEET – ASSETS
1. INTANGIBLE ASSETS
Composition 31.12.2021
31.12.2020
in EUR '000
Goodwill 1,260,226
1,237,316
Purchased insurance portfolios 14,607
19,491
Other intangible assets 469,336
476,270
Purchased software 388,413
401,463
Other 80,923
74,807
Total 1,744,169
1,733,077
Impairments of intangible assets and reversals of impairments of intangible assets are included as separate items in the
income statement between the Group operating result and the result before taxes.
1.1. Goodwill
Development 2021
2020
in EUR '000
Acquisition costs 1,865,619
1,906,993
Cumulative impairment as of 31.12. of the previous year -628,303
-524,458
Book value as of 31.12. of the previous year 1,237,316
1,382,535
Exchange rate differences 22,910
-26,972
Book value as of 1.1. 1,260,226
1,355,563
Additions 0
1,809
Impairments 0
-120,056
Book value as of 31.12. 1,260,226
1,237,316
Cumulative impairment as of 31.12. 626,109
628,303
Acquisition costs 1,886,335
1,865,619
The impairments in the previous year predominantly affected the Bulgaria (EUR 59,800,000), Croatia (EUR 45,017,000) and
Georgia (EUR 12,518,000) CGU groups.
Goodwill of CGU units (book values) 31.12.2021
31.12.2020
in EUR '000
Austria 301,716
301,716
Czech Republic 454,041
430,094
Poland 142,970
144,136
Albania incl. Kosovo 13,416
13,097
Baltic States 75,481
75,481
Bulgaria 124,354
124,354
North Macedonia 12,551
12,538
Slovakia 111,257
111,257
Hungary 13,915
14,118
Group Functions 10,525
10,525
Total 1,260,226
1,237,316
Please see the Impairment section on page 42 for information on the assumptions used for impairment testing.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
93
1.2. Other intangible assets
Development purchased software 2021
2020
in EUR '000
Acquisition costs 1,318,689
1,225,688
Cumulative valuation as of 31.12. of the previous year -917,226
-802,311
Book value as of 31.12. of the previous year 401,463
423,377
Exchange rate differences 1,375
-4,188
Book value as of 1.1. 402,838
419,189
Reclassifications -7,517
-637
Additions 131,283
109,904
Disposals -287
-3,146
Changes in scope of consolidation -126
0
Scheduled depreciation -137,090
-123,847
Impairments -688
0
Book value as of 31.12. 388,413
401,463
Cumulative valuation as of 31.12. 1,052,161
917,226
Acquisition costs 1,440,574
1,318,689
2. INVESTMENTS
Composition 31.12.2021
31.12.2020
in EUR '000
Property 2,850,588
2,507,413
Owner-occupied property 472,303
477,469
Investment property 2,378,285
2,029,944
Shares in at equity consolidated companies 276,913
291,561
Financial assets 31,682,289
32,102,212
Loans and other investments 3,028,291
3,417,208
Other financial assets 28,653,998
28,685,004
Total 34,809,790
34,901,186
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Annual Financial Report 2021
2.1. Property
Owner-occupied property
Development 2021
2020
in EUR '000
Acquisition costs 758,780
757,958
Cumulative valuation as of 31.12. of the previous year -281,311
-269,257
Book value as of 31.12. of the previous year 477,469
488,701
Exchange rate differences 5,822
-8,123
Book value as of 1.1. 483,291
480,578
Reclassifications 1,246
926
Additions 9,886
16,570
Disposals -4,043
-2,544
Changes in scope of consolidation -283
0
Appreciation 52
43
Scheduled depreciation -16,829
-16,811
Impairments -1,017
-1,293
Book value as of 31.12. 472,303
477,469
Cumulative valuation as of 31.12. 301,041
281,311
Acquisition costs 773,344
758,780
Investment property
Development 2021
2020
in EUR '000
Acquisition costs 2,857,619
2,702,204
Cumulative valuation as of 31.12. of the previous year -827,675
-776,647
Book value as of 31.12. of the previous year 2,029,944
1,925,557
Exchange rate differences 1,395
-2,990
Book value as of 1.1. 2,031,339
1,922,567
Reclassifications -2,051
-969
Additions 286,183
136,342
Disposals -6,409
-2,942
Changes in scope of consolidation 121,457
28,510
Appreciation 3,333
246
Scheduled depreciation -54,896
-51,452
Impairments -671
-2,358
Book value as of 31.12. 2,378,285
2,029,944
Cumulative valuation as of 31.12. 882,342
827,675
Acquisition costs 3,260,627
2,857,619
Rental income 140,360
132,849
From investment property 140,360
132,849
Operating expenses for rented investment property 38,478
31,617
Operating expenses for vacant investment property 7,970
6,623
The changes in the scope of consolidation are mainly due to first-time inclusion of Virtus Sechzehn Beteiligungs GmbH
(EUR +59,644,000), Rößlergasse Bauteil Zwei GmbH (EUR +32,136,000), Rößlergasse Bauteil Drei GmbH (EUR +12,790,000)
and VIG Offices, s.r.o. (EUR +16,657,000).
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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Use of property
Detail property 31.12.2021
31.12.2020
in EUR '000
Owner-occupied property 472,303
477,469
self-used 450,663
470,289
rented (operating lease) 21,640
7,180
Investment property 2,378,285
2,029,944
self-used 3,940
1,537
rented (operating lease) 2,374,345
2,028,407
2.2. Shares in at equity consolidated companies
Development 2021
2020
in EUR '000
Book value as of 31.12. of the previous year 291,561
321,276
Exchange rate differences -1 -10
Book value as of 1.1. 291,560
321,266
Additions 11,804
6,471
Changes in scope of consolidation -46,851 393
Impairments 0
-29,000
Share of changes in OCI 178
1,167
Pro rata result for the period of shares in at equity consolidated companies 27,209
2,285
Dividend payment -6,987 -11,021
Book value as of 31.12. 276,913
291,561
thereof reportable segment Austria 170,124
150,862
thereof reportable segment Czech Republic 0
28,331
thereof reportable segment Poland 141
143
thereof reportable segment Group Functions 106,648
112,225
Associated companies are measured at equity.
The impairments of EUR 29,000,000 in the previous year concerned Österreichisches Verkehrsbüro AG. The company
suffered considerably under the restrictions imposed during the COVID-19 pandemic. The increase in legal uncertainty this
caused led to an increase in its cost of capital and deterioration in multi-year planning. Österreichisches Verkehrsbüro AG
was valued using an earnings-based discounted cash flow method.
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Annual Financial Report 2021
Material shares in at equity consolidated companies
Development 2021
Beteiligungs- und
Wohnungs-
anlagen GmbH
Gewista-Werbe-
gesellschaft
m.b.H.
Österreichisches
Verkehrsbüro AG
Erste Heimstätte
GmbH
VBV - Betriebliche
Altersvorsorge AG
in EUR '000
Book value as of 31.12. of the previous year 33,418
34,441
10,312
48,433
65,891
Book value as of 1.1. 33,418
34,441
10,312
48,433
65,891
Share of changes in OCI 0
0
-561
0
733
Pro rata result for the period of shares in at equity consolidated
companies
4,343
6,097
8,266
0
6,006
Dividend payment -2,220
-1,994
0
0
-1,773
Book value as of 31.12. 35,541
38,544
18,017
48,433
70,857
Material shares in at equity consolidated companies 2021
Beteiligungs- und
Wohnungs-
anlagen GmbH
Gewista-Werbe-
gesellschaft
m.b.H.
Österreichisches
Verkehrsbüro AG
Erste Heimstätte
GmbH
VBV - Betriebliche
Altersvorsorge AG
in EUR '000
Group interest in % 25.00%
33.00%
36.58%
99.77%
25.32%
Income 500
88,306
245,491
89,947
77,162
Expenses -194
-77,779
-271,533
-42,398
-49,611
Financial result 15,736
10,424
50,164
-23,285
4,920
Taxes 1,329
-2,474
-2,064
5
-8,750
Result for the period 17,371
18,477
22,058
24,269
23,721
Parent company minority interest 0
0
538
0
0
Adjustment item due to protective provisions of the Austrian Non-
Profit Housing Act (Wohnungsgemeinnützigkeitsgesetz – WGG) 0
0
0
-24,269
0
Result for the period less non-controlling interests 17,371
18,477
22,596
0
23,721
thereof Non-controlling interests 391
5,834
496
0
534
thereof shares of at equity consolidated companies held by
shareholders
16,980
12,643
21,562
0
23,187
Share of result 4,343
6,097
8,266
0
5,735
Fixed assets 340,336
141,613
365,318
911,253
337,644
Current assets (incl. other assets) 16,582
1,045
117,275
26,168
14,137,526
Borrowings -214,755
-25,857
-420,924
-629,699
-14,195,324
Net assets 142,163
116,801
61,669
307,722
279,846
thereof Non-controlling interests 3,199
36,880
1,388
86,422
6,297
thereof shares of at equity consolidated companies held by
shareholders 138,964
79,921
60,281
221,300
273,549
Share of net assets 35,541
38,544
22,557
307,023
70,857
Cumulative impairments 0
0
-4,540
0
0
Adjustment item due to protective provisions of the Austrian Non-
Profit Housing Act (Wohnungsgemeinnützigkeitsgesetz – WGG) 0
0
0
-258,590
0
Book value of shares in at equity consolidated companies 35,541
38,544
18,017
48,433
70,857
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).
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
97
2.3. Loans and other investments
Composition of loans and other investments 31.12.2021
31.12.2020
in EUR '000
Loans 1,273,633
1,647,782
Reclassified loans 106,677
136,308
Bonds classified as loans 775,754
782,794
Total loans 2,156,064
2,566,884
Other investments 872,227
850,324
thereof bank deposits 783,730
766,408
thereof deposits on assumed reinsurance business 88,480
83,900
Total 3,028,291
3,417,208
Composition of total loans 31.12.2021
31.12.2020
in EUR '000
Loans 1,273,633
1,647,782
Loans to non-consolidated affiliated companies 75,424
76,886
Loans to participations 38,699
36,664
Mortgage loan 375,043
518,760
Policy loans and prepayments 17,027
18,621
Other loans 767,440
996,851
to public authorities 220,158
200,509
to financial institutions 148,581
159,628
to other commercial borrowers 396,332
518,209
to private persons and others 2,369
118,505
Reclassified loans 106,677
136,308
Bonds classified as loans 775,754
782,794
to public authorities 109,894
109,945
to financial institutions 628,937
638,656
to other commercial borrowers 32,423
34,193
Other 4,500
0
Total 2,156,064
2,566,884
Public sector borrowers include national, state and local authorities. The loans included under other loans are generally
loans that are not secured by insurance policies.
Collateral was provided for around 48.08% of the total loans reported.
98
Annual Financial Report 2021
Development of total loans 2021
2020
in EUR '000
Acquisition costs 2,574,406
2,449,880
Cumulative valuation as of 31.12. of the previous year -7,522
-33,772
Book value as of 31.12. of the previous year 2,566,884
2,416,108
Exchange rate differences 8,100
-2,853
Book value as of 1.1. 2,574,984
2,413,255
Additions 5,107,968
3,782,491
Disposals -5,523,003
-3,629,063
Changes in scope of consolidation -500
156
Appreciation 115
68
Impairments -3,500
-23
Book value as of 31.12. 2,156,064
2,566,884
Cumulative valuation as of 31.12. 9,560
7,522
Acquisition costs 2,165,624
2,574,406
Maturity structure of loans 31.12.2021
31.12.2020
in EUR '000
Loans 1,273,633
1,647,782
up to one year 130,590
130,471
more than one year up to five years 294,558
472,675
more than five years up to ten years 198,515
271,829
more than ten years 649,970
772,807
Bonds classified as loans 775,754
782,794
up to one year 75,220
28,664
more than one year up to five years 403,088
395,188
more than five years up to ten years 151,921
161,943
more than ten years 145,525
196,999
2.4. Other financial assets
Composition 2021
2020
in EUR '000
Held to maturity (incl. reclassified) 2,557,720
2,456,438
Available for sale 25,849,069
25,983,431
Recognised at fair value through profit and loss* 247,209
245,135
Total 28,653,998
28,685,004
*Including held for trading
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
99
Development Held to maturity (incl. reclassified) Available for sale
2021
2020
2021
2020
in EUR '000
Acquisition costs 2,457,839
2,766,187
Cumulative valuation as of 31.12. of the previous year -1,401 -2,486
Book value as of 31.12. of the previous year 2,456,438
2,763,701
25,983,431
25,148,103
Exchange rate differences 85,757
-79,580 31,295
-111,320
Book value as of 1.1. 2,542,195
2,684,121
26,014,726
25,036,783
Reclassifications 0
0
15
-6
Additions 157,435
153,580
3,458,437
3,366,777
Disposals/repayments -141,910 -425,388 -2,826,541 -2,713,913
Changes in scope of consolidation 0
44,125
-32,037 -42,324
Changes in value recognised in profit and loss 0
0
0
6,689
Changes recognised directly in equity 0
0
-745,708 397,925
Impairments 0
0
-19,823 -68,500
Book value as of 31.12. 2,557,720
2,456,438
25,849,069
25,983,431
Cumulative valuation as of 31.12. 2,170
1,401
Acquisition costs 2,559,890
2,457,839
T
he changes recognised directly in equity for the “Financial assets available for sale” category were mainly due to the effect
of the yield curve on fixed-interest securities.
Composition government bonds* (book value) Held to maturity (incl. reclassified) Available for sale
31.12.2021
31.12.2020
31.12.2021
31.12.2020
in %
Austria 0.35
0.73
12.01
13.50
Germany 0.13
0.13
1.53
1.31
Czech Republic 65.44
64.50
7.51
6.39
Slovakia 3.42
3.46
6.52
6.82
Poland 16.45
17.65
12.05
13.57
Romania 0.00
0.03
5.41
5.46
Other countries 14.21
13.50
54.97
52.95
*
Government bonds also include bonds issued by supranational organisations, government agencies, federal or constituent states and municipal bonds.
Financial assets held to maturity
Composition Amortised cost Fair value
Financial assets held to maturity 31.12.2021
31.12.2020
31.12.2021
31.12.2020
in EUR '000
Financial assets held to maturity 2,255,318
2,163,435
2,318,212
2,479,845
Government bonds 1,994,157
1,891,483
2,018,289
2,152,108
Covered bonds 216,499
214,205
254,259
267,285
Corporate bonds 33,616
45,628
34,371
47,592
Bonds from banks 9,032
10,192
9,291
10,751
Subordinated bonds 2,014
1,927
2,002
2,109
Financial assets reclassified as held to maturity 302,402
293,003
337,755
369,550
Government bonds 292,104
277,464
327,416
352,601
Covered bonds 2,102
2,012
2,071
2,233
Bonds from banks 8,196
13,527
8,268
14,716
100
Annual Financial Report 2021
Maturity structure Amortised cost Fair value
Financial assets held to maturity 31.12.2021
31.12.2020
31.12.2021
31.12.2020
in EUR '000
Financial assets held to maturity 2,255,318
2,163,435
2,318,212
2,479,845
up to one year 222,304
126,916
223,871
129,242
more than one year up to five years 737,539
783,974
762,651
842,647
more than five years up to ten years 798,380
705,266
778,985
760,378
more than ten years 497,095
547,279
552,705
747,578
Financial assets reclassified as held to maturity 302,402
293,003
337,755
369,550
up to one year 151,494
5,720
153,015
5,882
more than one year up to five years 10,298
154,423
10,338
167,213
more than ten years 140,610
132,860
174,402
196,455
Rating categories Amortised cost
Financial assets held to maturity (incl. reclassified) 31.12.2021
31.12.2020
in EUR '000
AAA 82,507
82,351
AA 1,717,610
1,628,490
A 491,148
516,380
BBB 87,403
83,143
BB and lower 159,485
128,000
No rating 19,567
18,074
Total 2,557,720
2,456,438
Financial assets in the “Financial assets held to maturity” category that were reclassified from the “Financial assets available
for sale” category in 2008 had a fair value of EUR 1,393,784,000 as of the reclassification date. VIG Insurance Group made
use of the provisions on “Reclassification of financial assets” in IAS 39.50 et seqq. due to financial market developments in
the 2
nd
half of 2008. Since the required information is not available and the cost to obtain the information would be exces-
sively high, it would not be possible to determine the book values if reclassification had not been performed.
Financial assets available for sale
Composition Fair value
Financial assets available for sale 31.12.2021
31.12.2020
in EUR '000
Bonds 22,305,212
22,895,705
Government bonds 10,839,772
11,107,686
Covered bonds 1,258,552
1,444,081
Corporate bonds 6,017,938
5,995,755
Bonds from banks 3,187,044
3,520,687
Subordinated bonds 1,001,906
827,496
Shares and other participations* 770,933
672,285
Investment funds 2,772,924
2,415,441
Equity funds 1,321,781
1,054,435
Pension funds 1,035,579
1,027,247
Alternative funds 47,786
9,022
Real estate funds 129,008
96,387
Balanced funds 238,770
228,350
Total 25,849,069
25,983,431
*Includes shares in non-consolidated subsidiaries and other participations of EUR 279,516,000 (EUR 257,779,000)
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
101
Unrealised gains and losses 31.12.2021 31.12.2020
Financial assets available for sale Fair value
Unrealised
gains
Unrealised
losses
Fair value
Unrealised
gains
Unrealised
losses
in EUR '000
Bonds 22,305,212
1,924,731
-246,918
22,895,705
2,800,566
-31,810
Shares and other participations 770,933
217,417
-12,761
672,285
132,830
-11,841
Investment funds 2,772,924
443,825
-31,320
2,415,441
258,357
-35,183
Total 25,849,069
2,585,973
-290,999
25,983,431
3,191,753
-78,834
In the case of the “Financial assets available for sale” category, the balance sheet value equals fair value. Unrealised gains
and losses represent the difference between amortised cost and fair value.
Impairments 31.12.2021 31.12.2020
Financial assets available for sale Gross book value
Impairment
Net book value
Gross book value
Impairment
Net book value
in EUR '000
Bonds 22,318,180
12,968
22,305,212
22,910,578
14,873
22,895,705
not adjusted 22,305,212
0
22,305,212
22,895,645
0
22,895,645
adjusted 12,968
12,968
0
14,933
14,873
60
Shares* 556,289
64,872
491,417
486,100
71,594
414,506
not adjusted 342,859
0
342,859
291,525
0
291,525
adjusted 213,430
64,872
148,558
194,575
71,594
122,981
Investment funds 2,827,338
54,414
2,772,924
2,479,584
64,143
2,415,441
not adjusted 2,707,047
0
2,707,047
2,329,235
0
2,329,235
adjusted 120,291
54,414
65,877
150,349
64,143
86,206
Total 25,701,807
132,254
25,569,553
25,876,262
150,610
25,725,652
*Not including impairment of shares in affiliated companies and other participations
Maturity structure Fair value
Financial assets available for sale 31.12.2021
31.12.2020
in EUR '000
no maturity 3,497,026
3,192,840
up to one year 1,837,784
1,553,962
more than one year up to five years 7,194,473
7,272,358
more than five years up to ten years 7,319,359
8,260,812
more than ten years 6,000,427
5,703,459
Total 25,849,069
25,983,431
102
Annual Financial Report 2021
Rating categories Fair value
Fixed-interest financial assets available for sale 31.12.2021
31.12.2020
in EUR '000
AAA 2,167,471
2,277,967
AA 5,704,589
6,022,531
A 7,876,611
8,373,395
BBB 5,401,515
5,407,591
BB and lower 898,178
641,667
No rating 256,848
172,554
Total 22,305,212
22,895,705
3. FINANCIAL INVESTMENTS FOR UNIT- AND INDEX-LINKED LIFE INSURANCE
Composition 31.12.2021 31.12.2020
Unit-linked
Index-linked
Total
Total
in EUR '000
Investment funds 7,404,978
0
7,404,978
6,502,389
Bonds 0
929,771
929,771
1,369,406
Shares 0
940
940
794
Bank deposits 157,473
21,580
179,053
79,012
Deposit receivables 10,948
0
10,948
8,242
Net of receivables and liabilities -359
0
-359
8,196
Total 7,573,040
952,291
8,525,331
7,968,039
Maturity structure 31.12.2021
31.12.2020
in EUR '000
no maturity 7,584,971
6,551,943
up to one year 449,380
445,691
more than one year up to five years 220,851
530,027
more than five years up to ten years 254,039
427,050
more than ten years 16,090
13,328
Total 8,525,331
7,968,039
4. REINSURERS’ SHARE IN UNDERWRITING PROVISIONS
Development Book value
as of 1.1.2021
Exchange rate
differences
Additions
Amount
used/released
Book value as of
31.12.2021
in EUR '000
Provision for unearned premiums 191,227
-25,369
141,623
-135,208
172,273
Mathematical reserve 13,447
23
9,624
-12,369
10,725
Provision for outstanding claims 1,172,546
-11,491
821,518
-618,714
1,363,859
Provision for profit-unrelated premium refunds 14,366
301
14,373
-14,424
14,616
Other underwriting provisions 4,906
-12
2,851
-4,613
3,132
Total 1,396,492
-36,548
989,989
-785,328
1,564,605
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
103
Maturity structure 31.12.2021
31.12.2020
in EUR '000
up to one year 780,551
696,553
more than one year up to five years 396,372
405,903
more than five years up to ten years 204,841
160,805
more than ten years 182,841
133,231
Total 1,564,605
1,396,492
5. RECEIVABLES
Composition 31.12.2021
31.12.2020
in EUR '000
Underwriting 1,377,531
1,015,400
Receivables from direct insurance business 906,961
810,381
from policyholders 680,569
622,939
from insurance intermediaries 122,391
131,571
from insurance companies 104,001
55,871
Receivables from reinsurance business 470,570
205,019
Non-underwriting 689,657
683,759
Other receivables 689,657
683,759
Total 2,067,188
1,699,159
Composition of other receivables 31.12.2021
31.12.2020
in EUR '000
Receivables from finance lease 47,951
48,600
Receivables from recourse claims 34,050
35,155
Pro rata and outstanding interest and rent 350,825
360,564
Receivables from tax authority (excl. income tax) and from fees of all kinds 47,838
41,868
Receivables from sales of investments 10,722
10,884
Receivables from property management 17,914
13,844
Receivables from third party claims settlement 18,486
16,851
Receivables from green card deposits and surety 66,242
59,898
Receivables from pre-payments 16,022
16,918
Other receivables 79,607
79,177
thereof receivables from charges for services 28,647
24,579
thereof receivables from charges for pensions 12,786
16,221
Total 689,657
683,759
104
Annual Financial Report 2021
Maturity structure 31.12.2021 31.12.2020
Premium
receivables due
Non-underwriting
Total
Total
in EUR '000
up to one year 266,337
568,394
834,731
876,783
more than one year up to five years 13,884
51,405
65,289
54,942
more than five years up to ten years 0
17,207
17,207
11,999
more than ten years 0
52,651
52,651
17,147
Subtotal 280,221
689,657
969,878
960,871
Premium receivables not yet due 469,816
423,987
Receivables from reinsurance business 470,570
205,019
Other underwriting receivables 156,924
109,282
Total 2,067,188
1,699,159
The gross receivables are offset by impairments (directly reducing the asset item) of EUR 88,909,000 (EUR 86,725,000)
and provisions for cancellations of EUR 18,502,000 (EUR 21,057,000).
Ageing analysis 31.12.2021
Overdue receivables 1–60 days
overdue
61–90 days
overdue
91–120 days
overdue
more than 120
days overdue
Total
in EUR '000
Premium receivables 178,491
46,031
25,387
60,484
310,393
not adjusted 59,390
28,517
17,897
32,750
138,554
adjusted 119,101
17,514
7,490
27,734
171,839
Non-underwriting receivables 16,953
1,295
1,966
23,441
43,655
not adjusted 12,933
751
1,205
8,097
22,986
adjusted 4,020
544
761
15,344
20,669
Ageing analysis 31.12.2020
Overdue receivables 1–60 days
overdue
61–90 days
overdue
91–120 days
overdue
more than 120
days overdue
Total
in EUR '000
Premium receivables 164,674
62,199
20,928
45,974
293,775
not adjusted 61,681
34,072
13,101
22,217
131,071
adjusted 102,993
28,127
7,827
23,757
162,704
Non-underwriting receivables 9,093
9,758
3,609
25,321
47,781
not adjusted 6,855
9,167
1,479
15,665
33,166
adjusted 2,238
591
2,130
9,656
14,615
6. 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.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
105
Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the
extent that it is probable that the deferred tax assets can be used. Deferred tax assets are examined each balance sheet
date and reduced to the extent that it is no longer probable that the associated tax benefits can be realised.
Composition 31.12.2021 31.12.2020
Assets
Liabilities
Assets
Liabilities
in EUR '000
Intangible assets 19,478
16,386
13,715
21,742
Right-of-Use Assets 0
56,688
0
60,577
Investments
1
111,944
312,141
104,452
403,115
Receivables and other assets
2
39,840
57,213
39,480
42,016
Accumulated losses carried forward 33,081
0
41,771
0
Tax-exempt reserves 0
10,647
0
10,975
Underwriting provisions
3
369,923
154,936
221,233
144,104
Non-underwriting provisions 96,180
4,084
102,972
2,408
Liabilities and other liabilities
4
91,811
26,829
92,345
27,301
Sum before valuation allowance 762,257
638,924
615,968
712,238
Valuation allowance for DTA -30,770
-34,872
Total before netting 731,487
638,924
581,096
712,238
Netting -420,040
-420,040
-444,368
-444,368
Net balance 311,447
218,884
136,728
267,870
1
including financial investments for unit- and index-linked life insurance
2
including cash and cash equivalents
3
including reinsurers' share in underwriting provisions as well as underwriting provisions for unit- and index-linked life insurance
4
including subordinated liabilities
Deferred tax assets from seven-year amortisation of participations to going concern value were recognised in the amount of
EUR 17,570,000 (EUR 23,004,000) 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 136,875,000 (EUR 161,610,000).
In accordance with IAS 12.39, deferred tax liabilities were not reported for temporary differences from shares 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 2,018,859,000 (EUR 2,053,406,000). Deferred taxes for
undistributed subsidiary profits of EUR 16,767,000 (EUR 14,404,000) were not reported because a decision to distribute
the profits had not yet been made.
EUR 25,017,000 (EUR 31,149,000) in deferred taxes on loss carry-forwards was not recognised.
7. OTHER ASSETS
Composition 31.12.2021
31.12.2020
in EUR '000
Tangible assets* and inventories 117,455
117,335
Other assets 26,263
36,905
Asset-side accruals 247,175
233,605
Total 390,893
387,845
*amount of reported balance sheet value leased: 6.42% (7.49%)
106
Annual Financial Report 2021
NOTES TO THE CONSOLIDATED BALANCE SHEET – LIABILITIES AND SHAREHOLDERS’ EQUITY
8. CONSOLIDATED SHAREHOLDERS’ EQUITY
The
share capital
and
other capital reserves
items include contributions to share capital made by VIG Holding shareholders.
Other capital reserves report the share of contributions paid that is in excess of the share capital. The reserves are reduced
by external costs directly related to corporate actions affecting equity after taking tax effects into account.
Retained earnings
are the earnings that subsidiaries have earned since joining VIG Insurance Group. These are reduced by
the dividends distributed by the VIG Holding. Amounts resulting from changes in the scope of consolidation are also recog-
nised here. If changes are made to accounting policies, the adjustments for earlier periods that are not included in the
financial statements are recognised in the opening balance sheet value of retained earnings for the earliest period presented.
Other reserves
consist of unrealised gains and losses from the measurement of available for sale financial instruments, and
actuarial gains and losses that are recognised in comprehensive income in accordance with IAS 19. Unrealised gains and
losses from the at equity measurement of associated companies, and translation differences resulting from currency trans-
lation for foreign subsidiaries are also reported in other reserves.
Non-controlling interests
are also shown as part of shareholders’ equity. These consist of shares held by third parties in the
equity of consolidated subsidiaries that are not directly or indirectly wholly owned by VIG Holding.
Detailed information on capital management is provided on page 90.
8.1. Share capital and voting rights
The Company has share capital of EUR 132,887,468.20. It is divided into 128,000,000 no-par value ordinary bearer shares
with voting rights, with each share representing an equal portion of the share capital. The number of shares issued remains
unchanged.
The Managing Board is not aware of any restrictions on voting rights or the transfer of shares. Employees who hold shares
exercise their voting rights without a proxy during General Meetings.
The Managing Board must have at least three and no more than eight members. The Supervisory Board has at least three
and at most twelve members (shareholder representatives). Wiener Städtische Versicherungsverein, which directly and
indirectly holds around 72.47% (72.47%) of the share capital, has the right to appoint up to one third of the members of
the Supervisory Board if, and 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
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107
participations held in insurance companies. Existing agreements that would come into effect if control of the Company were
to change due to a takeover bid relate to participations held in other (non-insurance) companies.
No compensation agreements exist between the Company and its Managing Board members, Supervisory Board members
or employees covering the case of a public takeover bid.
ANTICIPATORY RESOLUTIONS
The Managing Board is authorised under § 169 Austrian Stock Corporation Act (AktG) to increase the share capital of the
Company by a nominal amount of up to EUR 66,443,734.10 by issuing 64,000,000 no-par value bearer or registered shares
or a combination of the two in one or more tranches on or before 20 May 2026 against cash or in-kind contributions. The
terms of the shares, the exclusion of shareholder pre-emption rights, and other terms and conditions of the share issue are
decided by the Managing Board, subject to Supervisory Board approval. Preferred shares without voting rights may also
be issued, with rights equivalent to those of existing preferred shares. The issue prices of common and preferred shares
may differ.
The General Meeting of 21 May 2021 authorised the Managing Board to issue, subject to Supervisory Board approval, one or
more tranches of convertible bonds in accordance with § 174 AktG with a total nominal value of up to EUR 2,000,000,000.00
on or before 20 May 2026, with conversion or subscription rights for up to 30,000,000 bearer ordinary shares of the Com-
pany representing a share of up to EUR 31,145,500.36 of the share capital, including authorisation to exclude shareholder
pre-emption rights.
The share capital has consequently been raised in accordance with § 159 (2) no. 1 AktG by a contingent capital increase
of up to EUR 31,145,500.36 through the issue of up to 30,000,000 bearer ordinary shares. The contingent capital increase
will only be implemented to the extent that holders of convertible bonds issued on the basis of the General Meeting res-
olution of 21 May 2021 exercise the subscription or exchange rights they were granted. The Managing Board has not
adopted any resolutions to date concerning the issuance of convertible bonds based on the authorisation granted on 21
May 2021.
The General Meeting of 21 May 2021 further authorised the Managing Board to issue, subject to Supervisory Board
approval in accordance with § 174 (2) AktG, income bonds with a total nominal value of up to EUR 2,000,000,000.00 in
one or more tranches on or before 20 May 2026, including authorisation to exclude shareholder pre-emption rights. The
Managing Board has not adopted any resolutions to date regarding the issuance of income bonds based on this
authorisation.
The General Meeting of 21 May 2021 authorised the Managing Board to acquire bearer ordinary shares in accordance with
§ 65 (1) no. 8, (1a) and (1b) AktG to the maximum extent permissible by law during a period of 30 months following the
date the General Meeting resolution was adopted. The amount paid upon repurchase of the Company’s own shares may
not be more than a maximum of 50% below, or more than a maximum of 10% above, the average unweighted closing
price on the Vienna Stock Exchange on the ten stock exchange trading days preceding the repurchase. The Managing
Board may choose to make the purchase on the stock exchange, through a public offer or in any other legally permissible
and expedient manner. If the repurchase is performed via a public offer, the end of the calculation period is determined
based on the date on which the intention to make a public offer is announced (§ 5 (2) and (3) of the Austrian Takeover Act
(Übernahmegesetz)).
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Annual Financial Report 2021
The General Meeting of 21 May 2021 authorised the Managing Board for a period of five years from the date of the resolution
to use own shares, while excluding shareholder pre-emption rights,
• for servicing convertible bonds issued based on the resolution adopted by the General Meeting of 21 May 2021; and
• for sales in a manner permitted by law other than via the stock market or by means of a public offer. The written report
on the reasons for exclusion of shareholder pre-emption rights was submitted to the General Meeting.
The Managing Board has not made use of these authorisations to date. The Group held none of its own shares on the
balance sheet date.
8.2. Capital reserves – hybrid capital
Issue date Outstanding volume
Maturity
Interest
Fair value
in EUR '000
in years
in %
in EUR '000
10.6.2021 300,000
unlimited
First 10 years: 3.2125% p.a.;
thereafter variable
306,527
On 15 March 2021, VIG Holding placed a hybrid capital bond with its principal shareholder, Wiener Städtische Versiche-
rungsverein, during a private placement. The hybrid capital satisfies the equity capital criteria of IAS 32.16C and .16D, since
the issuer can freely decide about the interest payment and the bond does not have a fixed term. It also satisfies the
Solvency II requirements for restricted tier 1 instruments and qualifies as capital based on the requirements of the S&P
rating agency.
8.3. Other reserves
Composition 31.12.2021
Unrealised gains
and losses
Cash flow hedge
reserve
Underwriting
gains and losses
from provisions
for employee
benefits
Share of other
reserves of at
equity
consolidated
companies
Currency reserve
Total
in EUR '000
Gross 2,294,974
-38
-367,775
126
-197,696
1,729,591
+/-
Exchange rate changes from financial
assets available for sale
10,235
10,235
+/- Deferred mathematical reserve -673,535
-673,535
+/- Deferred profit participation -883,910
0
115,841
-768,069
+/- Deferred taxes -179,646
0
61,852
-117,794
+/- Non-controlling interests -9,835
1
3,158
23
1,877
-4,776
Net 558,283
-37
-186,924
149
-195,819
175,652
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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Composition 31.12.2020
Unrealised gains
and losses
Cash flow hedge
reserve
Underwriting
gains and losses
from provisions
for employee
benefits
Share of other
reserves of at
equity
consolidated
companies
Currency reserve
Total
in EUR '000
Gross 3,112,919
5
-420,744 -52 -243,849 2,448,279
+/- Exchange rate changes from financial
assets available for sale 11,443
11,443
+/- Deferred mathematical reserve -750,782 -750,782
+/- Deferred profit participation -1,207,189 0
130,356
-1,076,833
+/- Deferred taxes -259,774 0
71,529
-188,245
+/- Non-controlling interests -14,159 0
3,540
25
2,681
-7,913
Net 892,458
5
-215,319 -27 -241,168 435,949
8.4. Payout
Payout 2021 for the financial year 2020 Per share
Total
in EUR
Ordinary shares 0.75
96,000,000
8.5. Proposed appropriation of profits
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe (VIG Holding) ended financial year 2021 with a net retained
profit of EUR 338,351,602.38. The following appropriation of profits will be proposed in the Annual General Meeting:
The 128 million shares shall receive a dividend of EUR 1.25 per share. The payment date for this dividend will be 25 May 2022,
the record date 24 May 2022, and the ex-dividend date 23 May 2022.
A total of EUR 160,000,000.00 will therefore be distributed. The net retained profit of EUR 178,351,602.38 remaining for
financial year 2021 after distribution of the dividend is to be carried forward.
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Annual Financial Report 2021
9. SUBORDINATED LIABILITIES
Subordinated liabilities of the Group
Issuing company Issue date
Outstanding volume
Maturity
Interest
Fair value
in EUR '000
in years
in %
in EUR '000
VIG Holding
9.10.2013
500,000
30
1
First 10 years: 5.5%
p.a.; thereafter variable
545,435
VIG Holding
2.3.2015
400,000
31
2
First 11 years: 3.75%
p.a.; thereafter variable
446,160
VIG Holding
13.4.2017
200,000
30
3
First 10 years: 3.75%
p.a.; thereafter variable
222,770
Donau Versicherung 15.4. + 21.5.2004
9,500
unlimited
4
4.95% p.a.
10,818
Donau Versicherung 1.7.1999
1,500
unlimited
5
4.95% p.a.
1,529
Wiener Städtische 1.3.1999
8,250
unlimited
6
4.90% p.a.
9,147
Wiener Städtische 2.7.2001
16,100
unlimited
7
6.10% p.a.
17,995
Wiener Städtische 15.11.2003
19,110
unlimited
8
4.95% p.a.
21,048
Wiener Städtische 30.6.2006
34,700
unlimited
9
4.75% p.a.
37,635
Wiener Städtische 11.5.2017
250,000
10
10
3.50% p.a.
273,510
Kooperativa (Czech Republic) 22.12.2010
22,126
unlimited
11
5.05% p.a.
21,199
Total
1,461,286
1,607,246
1
The right to ordinary and extraordinary cancellation by the holder is excluded. Regular cancellation by the issuer is first allowed effective 9 October 2023.
2
The right to ordinary and extraordinary cancellation by the holder is excluded. Regular cancellation by the issuer is first allowed effective 2 March 2026.
3
The right to ordinary and extraordinary cancellation by the holder is excluded. Regular cancellation by the issuer is first allowed after 10 years.
4
Due to the call, the supplementary capital will be repaid in full in 2025.
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. Due to cancellations, EUR 8,250,000 will be repaid starting with
2025.
7
This can only be cancelled subject to not less than 5 years’ notice, unless Austrian insurance regulators agree to repayment being made early. Due to cancellations, EUR 16,100,000 will be repaid starting
with 2024.
8
This can only be cancelled subject to not less than 5 years’ notice, unless Austrian insurance regulators agree to repayment being made early. Due to cancellations, EUR 19,110,000 will be repaid between
2023 and 2024.
9
This can only be cancelled subject to not less than 5 years' notice, unless Austrian insurance regulators agree to repayment being made early. Due to cancellations, EUR 34,700,000 will be repaid starting
with 2024.
10
The right to ordinary and extraordinary cancellation by the holder is excluded. No provision has been made for regular cancellation by the issuer.
11
Due to the call, the supplementary capital will be repaid in full in 2024.
VIG Holding subordinated liabilities
Interest on supplementary capital bonds is only paid out to the extent that the interest is covered by the company’s national
annual profit. The interest is, however, always included as an expense.
On 9 October 2013 the Company issued a subordinated bond with a total nominal value of EUR 500,000,000.00 and a
term of 30 years. VIG Holding can call the bond in full for the first time on 9 October 2023 and on each following coupon
date. The subordinated bond bears interest at a fixed rate of 5.50% p.a. during the first ten years of its term and variable
interest after that. The subordinate bond satisfies the tier 2 requirements of Solvency II. The bonds are traded on the Vienna
Stock Exchange.
On 2 March 2015 the Company issued a subordinated bond with a total nominal value of EUR 400,000,000.00 and a term
of 31 years. VIG Holding can call the bond in full for the first time on 2 March 2026 and on each following coupon date. The
subordinated bond bears interest at a fixed rate of 3.75% p.a. during the first eleven years of its term and variable interest
after that. The subordinate bond satisfies the tier 2 requirements of Solvency II. The bond is listed on the Luxembourg Stock
Exchange.
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A EUR 200,000,000.00 subordinated bond was privately placed. The subordinated bond has a term of 30 years and VIG
Holding can call it for the first time after 10 years. It satisfies the tier 2 requirements of Solvency II and qualifies as capital
based on the requirements of the S&P rating agency. The subordinated bond bears interest at a fixed rate of 3.75 % p.a.
during the first ten years of its term and variable interest after that. Inclusion for trading in the Third Market of the Vienna
Stock Exchange took place on 13 April 2017.
10. UNDERWRITING PROVISIONS
Composition 31.12.2021
31.12.2020
in EUR '000
Provision for unearned premiums 1,863,198
1,711,489
Mathematical reserve 21,937,030
22,243,792
Guaranteed policy benefits 20,616,136
20,805,425
Allocated and committed profit shares 647,359
687,585
Deferred mathematical reserve 673,535
750,782
Provision for outstanding claims 7,082,488
6,345,913
Provision for premium refunds 1,599,710
1,871,416
Profit-related premium refunds 305,586
317,907
Profit-unrelated premium-refunds 87,560
75,966
Deferred profit participation recognised through profit and loss* 438,495
400,710
Deferred profit participation recognised directly in equity* 768,069
1,076,833
Other underwriting provisions 63,801
57,445
Total 32,546,227
32,230,055
*The deferred profit participation is solely due to the profit-related premium refunds.
10.1. Provision for unearned premiums
Development 2021
2020
in EUR '000
Book value as of 31.12. of the previous year 1,711,489
1,707,175
Exchange rate differences -29,592 -80,651
Book value as of 1.1. 1,681,897
1,626,524
Additions 1,673,061
1,355,349
Amount used/released -1,491,760 -1,270,384
Book value as of 31.12. 1,863,198
1,711,489
Maturity structure 31.12.2021
31.12.2020
in EUR '000
up to one year 1,620,528
1,490,466
more than one year up to five years 209,487
193,417
more than five years up to ten years 25,581
20,349
more than ten years 7,602
7,257
Total 1,863,198
1,711,489
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Annual Financial Report 2021
10.2. Mathematical reserve
Development 2021
2020
in EUR '000
Book value as of 31.12. of the previous year 22,243,792
22,497,943
Exchange rate differences 81,088
-71,958
Book value as of 1.1. 22,324,880
22,425,985
Additions 2,149,024
2,353,715
Amount used/released -2,678,671
-2,536,377
Transfer from provisions for premium refunds 141,797
469
Book value as of 31.12. 21,937,030
22,243,792
Maturity structure 31.12.2021
31.12.2020
in EUR '000
up to one year 1,541,997
1,828,753
more than one year up to five years 5,299,718
5,493,625
more than five years up to ten years 3,850,476
4,035,723
more than ten years 11,244,839
10,885,691
Total 21,937,030
22,243,792
10.3. Provision for outstanding claims
Development 2021
2020
in EUR '000
Book value as of 31.12. of the previous year 6,345,913
5,839,838
Exchange rate differences 12,595
-128,728
Book value as of 1.1. 6,358,508
5,711,110
Additions of provision for outstanding claims 5,217,594
4,571,281
for claims paid occurred in the reporting period 4,249,285
3,948,762
for claims paid occurred in previous periods 968,309
622,519
Use/release of provision -4,493,529
-3,936,424
for claims paid occurred in the reporting period -2,505,507
-2,226,119
for claims paid occurred in previous periods -1,988,022
-1,710,305
Other changes -85
-54
Book value as of 31.12. 7,082,488
6,345,913
Maturity structure 31.12.2021
31.12.2020
in EUR '000
up to one year 3,178,391
2,830,510
more than one year up to five years 2,208,485
2,011,015
more than five years up to ten years 925,165
832,439
more than ten years 770,447
671,949
Total 7,082,488
6,345,913
EUR 126,769,000 (EUR 119,215,000) in recourse claims were deducted from the provision for outstanding claims. A detailed
presentation of the change in gross loss reserve for the property and casualty line of business is provided on page 87.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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10.4. Provision for premium refunds
Development 2021
2020
in EUR '000
Provision for premium refunds
Book value as of 31.12. of the previous year 393,873
422,517
Exchange rate differences 3,248
-3,260
Book value as of 1.1. 397,121
419,257
Additions 427,892
54,127
Amount used/released -290,070
-79,042
Transfer to mathematical reserve -141,797
-469
Book value as of 31.12. 393,146
393,873
Deferred profit participation
Book value as of 31.12. of the previous year 1,477,543
1,369,634
Book value as of 1.1. 1,477,543
1,369,634
Unrealised gains and losses on financial assets available for sale -323,279
116,017
Underwriting gains and losses from provisions for employee benefits 14,515
3,555
Revaluations recognised through profit and loss 37,785
-11,663
Book value as of 31.12. 1,206,564
1,477,543
Provision for premium refunds incl. deferred profit participation 1,599,710
1,871,416
Maturity structure of premium refunds Profit-related* Profit-unrelated
31.12.2021
31.12.2020
31.12.2021
31.12.2020
in EUR '000
up to one year 193,227
186,066
69,178
59,954
more than one year up to five years 393,674
491,776
1,840
1,738
more than five years up to ten years 256,238
319,750
2,517
2,266
more than ten years 669,011
797,858
14,025
12,008
Total 1,512,150
1,795,450
87,560
75,966
*Incl. deferred profit participation
10.5. Other underwriting provisions
Development 2021
2020
in EUR '000
Book value as of 31.12. of the previous year 57,445
48,969
Exchange rate differences -42
-1,197
Book value as of 1.1. 57,403
47,772
Additions 25,252
19,276
Amount used/released -18,854
-9,603
Book value as of 31.12. 63,801
57,445
Other underwriting provisions are primarily a provision for guaranteed interest for the PAC Doverie in Bulgaria and the
provision for cancellations.
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Annual Financial Report 2021
Maturity structure 31.12.2021
31.12.2020
in EUR '000
up to one year 20,666
21,257
more than one year up to five years 11,268
3,713
more than five years up to ten years 1,381
1,454
more than ten years 30,486
31,021
Total 63,801
57,445
11. UNDERWRITING PROVISIONS FOR UNIT- AND INDEX-LINKED LIFE INSURANCE
Composition 31.12.2021
31.12.2020
in EUR '000
Unit-linked life insurance 7,302,876
6,349,808
Index-linked life insurance 885,917
1,267,408
Total 8,188,793
7,617,216
Development 2021
2020
in EUR '000
Book value as of 31.12. of the previous year 7,617,216
8,115,999
Exchange rate differences 42,741
-97,029
Book value as of 1.1. 7,659,957
8,018,970
Additions 1,624,302
932,438
Amount used/released -1,095,466
-1,334,192
Book value as of 31.12. 8,188,793
7,617,216
Maturity structure 31.12.2021
31.12.2020
in EUR '000
up to one year 728,456
584,911
more than one year up to five years 1,202,133
1,948,796
more than five years up to ten years 1,183,717
1,196,511
more than ten years 5,074,487
3,886,998
Total 8,188,793
7,617,216
12. NON-UNDERWRITING PROVISIONS
Composition 31.12.2021
31.12.2020
in EUR '000
Provisions for pensions and similar obligations 539,249
590,947
Provision for pension obligations 436,191
485,620
Provision for severance obligations 103,058
105,327
Provisions for other employee benefits 57,256
55,072
Other non-underwriting provisions 293,684
230,790
Total 890,189
876,809
The increase in other non-underwriting provisions was mainly due to additional provisions related to VIG Insurance Group
digitalisation initiatives.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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12.1. Provision for pension obligations
Development of DBO 2021
2020
in EUR '000
Present value of the obligations (DBO) as of 31.12. of the previous year 894,169
920,002
Exchange rate differences -7
-22
Present value of the obligations (DBO) as of 1.1. 894,162
919,980
Current service costs 13,755
15,979
Past service costs 8
5
Interest expense 6,561
6,808
Remeasurement -53,829
-14,318
Actuarial gain/loss demographic -1
777
Actuarial gain/loss financial -42,770
242
Experience adjustment -11,058
-15,337
Settlement payments -1
-2,949
Benefits paid -30,843
-31,336
Changes in scope of consolidation -1,049
0
Present value of the obligations (DBO) as of 31.12. 828,764
894,169
thereof active personnel 254,349
300,181
thereof DBO retirees 574,415
593,988
Development of plan assets 2021
2020
in EUR '000
Plan assets as of 31.12. of the previous year 408,549
413,642
Plan assets as of 1.1. 408,549
413,642
Interest income 3,007
3,060
Remeasurement -325
3,114
Net return on assets -325
3,114
Contributions* 7,930
16,110
Settlement payments 0
-72
Benefits paid -26,588
-27,305
Plan assets as of 31.12. 392,573
408,549
Development of provision 2021
2020
in EUR '000
Book value as of 31.12. of the previous year 485,620
506,360
Exchange rate differences -7
-22
Book value as of 1.1. 485,613
506,338
Current service costs 13,755
15,979
Past service costs 8
5
Interest expense 3,554
3,748
Remeasurement -53,504
-17,432
Net return on assets 325
-3,114
Actuarial gain/loss demographic -1
777
Actuarial gain/loss financial -42,770
242
Experience adjustment -11,058
-15,337
Contributions* -7,930
-16,110
Settlement payments -1
-2,877
Benefits paid -4,255
-4,031
Changes in scope of consolidation -1,049
0
Book value as of 31.12. 436,191
485,620
*The contributions shown were made entirely by the employers.
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Annual Financial Report 2021
Additional information for the Austrian companies
The plan assets consist of the following:
Structure of financial investments in the mathematical reserve for occupational group insurance 31.12.2021
31.12.2020
in %
Wiener Städtische and VIG Holding 100.00
100.00
Fixed-interest securities 92.93
95.55
Loans 1.47
1.53
Bank deposits 3.74
1.07
Shares, supplementary capital, profit participation rights, participation capital 1.86
1.86
Donau Versicherung 100.00
100.00
Fixed-interest securities 99.92
85.26
Bank deposits 0.08
14.74
The asset allocation of the mathematical reserve for occupational group insurance is structured according to the
maturity of the liabilities. Pension contributions are expected to be EUR 11,538,000 in financial year 2022 (ACTUAL in
2021: EUR 7,930,000 incl. transfers).
Pension sensitivity analysis Variation
DBO
Change
in %
in EUR '000
in %
Base parameters 817,595
Interest rate +0.5
758,584
-7.22
-0.5
884,366
8.17
Future salary increases +0.5
825,564
0.97
-0.5
810,214
-0.90
Future pension increases +0.5
874,287
6.93
-0.5
766,119
-6.30
Employee turnover +2.5
783,127
-4.22
-2.5
820,756
0.39
Mortality +5.0
801,594
-1.96
-5.0
833,119
1.90
Parameter variations were calculated. Mortality is increased or decreased proportionally.
Pension cash flow Expected payments
year(s)
in EUR
'000
1 32,553
2 33,429
3 33,720
4 33,945
5 33,975
6–10 169,675
11–15 162,756
16–20 146,110
21–30 226,335
31–40 136,215
41+ 71,841
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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13. LIABILITIES EXCL. SUBORDINATED LIABILITIES
Composition 31.12.2021
31.12.2020
in EUR '000
Underwriting 1,166,270
1,083,646
Liabilities from direct business 1,008,912
890,430
to policyholders 562,792
522,515
to insurance intermediaries 269,732
248,045
to insurance companies 176,388
118,362
arising from financial insurance policies 0
1,508
Liabilities from reinsurance business 133,544
153,668
Deposits from ceded reinsurance business 23,814
39,548
Non-underwriting 1,734,010
1,170,660
Liabilities to financial institutions 351,087
325,267
Other liabilities 1,382,923
845,393
Total 2,900,280
2,254,306
Composition of Other liabilities 31.12.2021
31.12.2020
in EUR '000
Tax liabilities (excl. income taxes), levies and fees 96,683
90,896
Liabilities for social security 21,949
19,382
Property management, building contract and property transfer liabilities 16,821
16,423
Personnel-related liabilities 153,998
143,992
Liabilities for unpaid incoming invoices 126,598
114,167
Interest payable for subordinated liabilities 32,313
32,452
Lease liabilities 181,048
189,762
Liabilities from sureties 59,816
46,183
Financing liabilities* 597,319
104,314
Other liabilities 96,378
87,822
Total 1,382,923
845,393
*Includes derivative liabilities and other financing liabilities
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 and shown under financing liabilities.
Maturity structure 31.12.2021 31.12.2020
Underwriting
Non-underwriting
Total
Total
in EUR '000
up to one year 1,113,560
799,223
1,912,783
1,762,155
more than one year up to five years 34,028
261,517
295,545
277,245
more than five years up to ten years 10,101
82,250
92,351
81,477
more than ten years 8,581
591,020
599,601
133,429
Total 1,166,270
1,734,010
2,900,280
2,254,306
118
Annual Financial Report 2021
14. CONTINGENT LIABILITIES AND RECEIVABLES
Litigation relating to coverage
In their capacity as insurance companies, the Group companies are involved in a number of court proceedings as 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.
Off-balance sheet claims 31.12.2021
31.12.2020
in EUR '000
Contingent receivables 314
0
Off-balance sheet commitments 31.12.2021
31.12.2020
in EUR '000
Liabilities and assumed liabilities 750
750
Guarantee bond 0
13,504
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
119
NOTES TO THE CONSOLIDATED INCOME STATEMENT
15. PREMIUMS WRITTEN – GROSS
Composition 2021
Motor own
damage
insurance
(Casco)
Motor third
party liability
insurance
Other property
and casualty
insurance
Life insurance
– regular
premium
Life insurance
– single
premium
Health
insurance
Total
in EUR '000
Austria 316,921
327,699
1,499,767
1,208,158
228,008
467,890
4,048,443
Czech Republic 279,235
349,310
526,050
659,140
30,204
21,000
1,864,939
Poland 192,220
310,739
444,957
166,804
135,654
29,417
1,279,791
Extended CEE 566,526
584,560
621,151
527,891
423,819
162,786
2,886,733
Special Markets 47,251
39,958
270,776
88,844
50,900
33,957
531,686
Group Functions 0
0
1,904,412
32,535
0
28,070
1,965,017
Consolidation -1,574,043
Total 1,402,153
1,612,266
5,267,113
2,683,372
868,585
743,120
11,002,566
Composition 2020
Motor own
damage
insurance
(Casco)
Motor third
party liability
insurance
Other property
and casualty
insurance
Life insurance
– regular
premium
Life insurance
– single
premium
Health
insurance
Total
in EUR '000
Austria 302,792
324,088
1,442,407
1,215,779
293,740
451,901
4,030,707
Czech Republic 244,265
311,892
492,355
630,899
34,685
18,297
1,732,393
Poland 190,967
297,169
407,732
168,103
106,357
25,908
1,196,236
Extended CEE 509,080
527,427
586,278
480,818
390,088
146,759
2,640,450
Special Markets 42,267
45,984
265,056
87,526
58,946
31,870
531,649
Group Functions 0
0
1,682,277
26,009
0
28,236
1,736,522
Consolidation -1,439,503
Total 1,289,371
1,506,560
4,876,105
2,609,134
883,816
702,971
10,428,454
120
Annual Financial Report 2021
16. FINANCIAL RESULT EXCL. RESULT FROM SHARES IN AT EQUITY CONSOLIDATED COMPANIES
Composition Austria Czech Republic Poland Extended CEE
2021
2020
2021
2020
2021
2020
2021
2020
in EUR '000
Current income 646,176
685,403
73,422
75,914
23,216
23,704
115,924
115,747
Appreciation 1,517
677
4,461
4,844
1,503
4,052
5,526
4,069
thereof reversal of impairment 0
43
0
0
0
0
334
19
Gains from disposal 55,039
103,936
17,918
26,201
9,351
14,798
19,536
15,112
Other income 59,812
51,115
10,066
21,876
7,544
7,486
29,495
29,342
Total income 762,544
841,131
105,867
128,835
41,614
50,040
170,481
164,270
Depreciation 56,411
103,060
4,950
6,214
5,911
2,955
9,062
15,595
thereof impairment 6,635
57,745
916
2,280
4,000
1
228
4,176
Exchange rate differences -127
-842
2,280
709
145
-3,352
1,596
-8,351
Losses from disposal 10,702
5,400
11,235
26,718
804
3,350
1,066
1,704
Interest expenses 55,792
55,866
5,034
5,555
1,487
2,941
5,489
6,570
Interest expenses for personnel
provisions 3,632
3,824
0
0
0
0
0
0
Interest expenses for liabilities to
financial institutions
2,159
2,140
0
0
0
0
0
0
Interest expenses for financing
liabilities 978
1,502
0
0
0
0
221
140
Interest expenses for subordinate
liabilities
35,966
36,104
1,083
1,050
39
520
893
1,037
Interest expenses for lease liabilities 1,772
1,624
774
1,156
118
184
714
777
Other interest expenses 11,285
10,672
3,177
3,349
1,330
2,237
3,661
4,616
Other expenses 59,665
141,282
11,389
24,791
9,321
8,010
23,179
20,829
Managed portfolio fees 4,367
4,437
1,394
788
3,494
2,463
1,212
1,677
Asset management expenses 54,880
53,601
2,848
2,917
4,579
4,316
21,331
17,935
Other expenses 418
83,244
7,147
21,086
1,248
1,231
636
1,217
Total expenses 182,443
304,766
34,888
63,987
17,668
13,904
40,392
36,347
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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Composition Special Markets Group Functions Consolidation Total
2021
2020
2021
2020
2021
2020
2021
2020
in EUR '000
Current income 34,270
29,710
82,411
88,058
-60,453 -64,608 914,966
953,928
Appreciation 66
49
3,100
7,015
0
0
16,173
20,706
thereof reversal of impairment 66
50
3,100
6,934
0
0
3,500
7,046
Gains from disposal 595
369
8,745
14,317
0
0
111,184
174,733
Other income 654
523
10,633
4,080
-1,007 0
117,197
114,422
Total income 35,585
30,651
104,889
113,470
-61,460 -64,608 1,159,520
1,263,789
Depreciation 546
1,608
27,403
20,628
0
0
104,283
150,060
thereof impairment 33
1,080
13,200
6,915
0
0
25,012
72,197
Exchange rate differences -2,851 -852 6,193
35,899
-163 -557 7,073
22,654
Losses from disposal 97
229
11,829
4,953
0
0
35,733
42,354
Interest expenses 221
1,971
90,653
83,052
-56,125 -60,897 102,551
95,058
Interest expenses for personnel
provisions 0
0
520
478
0
0
4,152
4,302
Interest expenses for liabilities to
financial institutions
0
0
3,276
3,192
0
0
5,435
5,332
Interest expenses for financing
liabilities 54
59
30,090
26,452
-25,597 -25,848 5,746
2,305
Interest expenses for subordinate
liabilities
0
0
50,000
50,066
-22,432 -23,059 65,549
65,718
Interest expenses for lease liabilities 56
90
47
237
-341 -434 3,140
3,634
Other interest expenses 111
1,822
6,720
2,627
-7,755 -11,556 18,529
13,767
Other expenses 1,931
2,125
198,413
131,835
-1,036 0
302,862
328,872
Managed portfolio fees 0
0
0
0
0
0
10,467
9,365
Asset management expenses 1,800
1,600
157,466
124,857
0
0
242,904
205,226
Other expenses 131
525
40,947
6,978
-1,036 0
49,491
114,281
Total expenses -56 5,081
334,491
276,367
-57,324 -61,454 552,502
638,998
Information on operating expenses for investment property is provided in Note 2.1. Property on page 94.
122
Annual Financial Report 2021
Composition 2021 2020
Income Current
income
Appreciation
Gains from
disposal
Current
income
Appreciation
Gains from
disposal
in EUR '000
Property 101,972
3,385
4,470
103,732
289
2,388
Loans 77,326
115
9,147
79,564
68
46,503
Loans 41,243
115
9,138
41,667
68
332
Reclassified loans 7,775
0
0
7,276
0
0
Bonds classified as loans 28,308
0
9
30,621
0
46,171
Financial assets held to maturity - bonds 67,227
0
9
68,171
0
0
Financial assets reclassified as held to maturity - bonds 14,091
0
0
20,570
0
1
Financial assets available for sale 605,638
0
86,419
629,024
6,689
96,259
Bonds 534,566
0
39,665
553,159
6,689
62,980
Shares and other participations 22,713
0
21,773
32,538
0
15,548
thereof participations 9,024
0
2,117
16,076
542
Investment funds 48,359
0
24,981
43,327
0
17,731
Financial assets recognised at fair value through profit and
loss* 3,241
12,673
9,986
3,549
13,660
29,051
Other investments 20,973
0
1,153
19,740
0
531
Unit- and index-linked life insurance 24,498
0
0
29,578
0
0
Total 914,966
16,173
111,184
953,928
20,706
174,733
*Including held for trading
EUR 75,060,000 (EUR 99,442,000) for financial assets available for sale were reclassified from shareholders’ equity to the
income statement in the current reporting period.
Composition 2021 2020
Expenses Depreciation
Exchange rate
differences
Losses from
disposal
Depreciation
Exchange rate
differences
Losses from
disposal
in EUR '000
Property 73,413
0
30
71,914
0
92
Loans 3,500
188
183
23
-748
305
Loans 3,500
-24
9
23
-325
305
Reclassified loans 0
0
174
0
0
0
Bonds classified as loans 0
212
0
0
-423
0
Financial assets held to maturity - bonds 0
827
3
0
-1,239
4
Financial assets reclassified as held to maturity - bonds 0
46
0
0
-323
0
Financial assets available for sale 19,824
3,367
19,440
68,501
-4,700
10,997
Bonds 0
2,696
4,843
9,079
-5,880
2,967
Shares and other participations 19,461
202
3,697
43,911
15
484
thereof participations 0
0
0
807
308
Investment funds 363
469
10,900
15,511
1,165
7,546
Financial assets recognised at fair value through profit and
loss* 7,546
2,280
13,449
9,622
827
30,567
Other investments 0
365
2,628
0
28,837
389
Total 104,283
7,073
35,733
150,060
22,654
42,354
*Including held for trading
Interest expenses and other expenses result from items on the liabilities side of the balance sheet or from business opera-
tions and therefore cannot be directly allocated to an investment class.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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17. RESULT FROM SHARES IN AT EQUITY CONSOLIDATED COMPANIES
Composition 2021
2020
in EUR '000
Income 24,872
490
Current result 24,872
490
Expenses 0
-29,000
Depreciation 0
-29,000
thereof impairment 0
-29,000
Total 24,872
-28,510
18. OTHER INCOME AND EXPENSES
Composition 2021
2020
in EUR '000
Other income 165,789
145,661
Underwriting 100,649
80,850
Non-underwriting 65,140
64,811
Other expenses 317,902
232,222
Underwriting 219,804
194,944
Non-underwriting 98,098
37,278
Details of other income 2021
2020
in EUR '000
Other income 165,789
145,661
thereof compensation for services performed 14,707
11,650
thereof release of other provisions 3,950
5,056
thereof fees of all kinds 25,845
22,925
thereof exchange rate gains 44,009
50,317
thereof income related to leases 3,705
286
thereof reversal of allowances for receivables and receipt of payment for written-off receivables 23,433
13,216
thereof commission income 2,218
3,300
thereof interest not from investments 2,760
3,127
Details of other expenses 2021
2020
in EUR '000
Other expenses 317,902
232,222
thereof creation of allowances for receivables and receivable write-offs 39,858
44,839
thereof write-downs of insurance portfolio and customer base 8,677
16,992
thereof brokering expenses 2,037
1,387
thereof underwriting taxes 48,754
43,342
thereof exchange rate losses 43,997
21,529
thereof expenses related to leases 28,584
31,898
thereof other contributions and fees 14,191
14,381
thereof expenses for government-imposed contributions 27,038
24,055
thereof creation of other provisions 30,575
7,582
124
Annual Financial Report 2021
19. EXPENSES FOR CLAIMS AND INSURANCE BENEFITS – RETENTION
All payments to policyholders arising from loss events, claims settlement expenses directly related to loss events, and
internal costs attributable to claims settlement under the allocation according to origin principle, are shown as expenses for
claims and insurance benefits. Expenses for loss prevention are also reported in this item. Expenses for claims and insur-
ance benefits are reduced by the income gained from using existing contractual and statutory avenues of recourse (this
applies in particular to property and casualty insurance). Changes in the underwriting provisions are also reported in ex-
penses for claims and insurance benefits.
Composition 2021
2020
in EUR '000
Expenses for claims and insurance benefits – gross 8,081,691
7,688,410
Payments for claims and insurance benefits 7,754,860
7,657,038
Changes in the provision for outstanding claims 712,195
633,520
Change in mathematical reserve -537,988
-707,301
Change in other underwriting provisions 3,012
8,343
Expenses for profit-related and profit-unrelated premium refunds 149,612
96,810
Expenses for claims and insurance benefits – reinsurers´ share -945,130
-657,841
Payments for claims and insurance benefits -545,920
-470,632
Changes in the provision for outstanding claims -373,713
-158,933
Change in mathematical reserve -520
98
Change in other underwriting provisions 1,763
-2,002
Expenses for profit-unrelated premium refunds -26,740
-26,372
Expenses for claims and insurance benefits – retention 7,136,561
7,030,569
Payments for claims and insurance benefits 7,208,940
7,186,406
Changes in the provision for outstanding claims 338,482
474,587
Change in mathematical reserve -538,508
-707,203
Change in other underwriting provisions 4,775
6,341
Expenses for profit-related and profit-unrelated premium refunds 122,872
70,438
20. ACQUISITION AND ADMINISTRATIVE EXPENSES
The acquisition and administrative expenses item is broken down into acquisition expenses, administrative expenses less
reinsurance commissions and profit commissions for reinsurance cessions. It therefore includes VIG Insurance Group
personnel and materials expenses allocated according to the origin principle.
Composition 2021
2020
in EUR '000
Acquisition expenses 2,211,125
2,046,899
Commission expenses* 1,573,075
1,426,524
Pro rata personnel expenses 377,940
370,464
Pro rata material expenses 260,110
249,911
Administrative expenses 510,949
446,504
Pro rata personnel expenses 237,997
213,450
Pro rata material expenses 272,952
233,054
Reinsurance commissions -185,246
-164,924
Total 2,536,828
2,328,479
*Includes commissions of EUR 1,481,503,000 (EUR 1,324,483,000) for direct insurance business
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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21. TAXES
Composition 2021
2020
in EUR '000
Actual taxes 270,566
201,011
from the current period 263,908
233,519
from previous periods 6,658
-32,508
Deferred taxes -147,227 -97,817
Change of deferred taxes in the current year -131,532 -103,928
Deferred taxes due to temporary differences relating to other periods -12,467 8,108
Deferred taxes due to loss carry forwards relating to other periods -3,228 -1,997
Total 123,339
103,194
Reconciliation 2021
2020
in EUR '000
Expected tax rate in % 25.0%
25.0%
Result before taxes 511,333
345,862
Expected tax expenses 127,833
86,466
Adjusted for tax effects due to:
Different local tax rate -41,668 -24,352
Change of tax rates 476
1,483
Non-deductible expenses 110,625
111,835
Income not subject to tax -93,774 -76,579
Taxes from previous years -9,037 -26,397
Non-recognition/reduction of deferred tax assets due to temporary differences 1,936
2,803
Non-recognition/reduction of deferred tax assets due to loss carry forwards 3,355
8,703
Effects due to group taxation/profit transfers 3,859
-4,063
Tax effects due to deferred profit participation 9,421
16,997
Others 10,313
6,298
Effective tax expenses 123,339
103,194
Effective tax rate in % 24.1%
29.8%
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.
22. EARNINGS PER SHARE
Under IAS 33.10, basic earnings per share are to be calculated by dividing profit or loss attributable to common share-
holders of the parent entity (the numerator) by the weighted average number of common shares outstanding (the denomi-
nator) during the period.
Earnings per share 2021
2020
Result for the period EUR '000 387,994
242,668
Non-controlling interests in net result for the period EUR '000 -12,264 -11,155
Result for the period less non-controlling interests EUR '000 375,730
231,513
Number of shares at closing date units 128,000,000
128,000,000
Earnings per share* EUR 2.94
1.81
*The undiluted earnings per share equals the diluted earnings per share (in EUR).
126
Annual Financial Report 2021
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
23. LIABILITIES FROM FINANCING ACTIVITIES
Development 31.12.2021
Subordinated
liabilities
(including
interest)
1
Liabilities to
financial
institutions
Lease liabilities
Financing
liabilities
2
in EUR '000
Book value as of 31.12. of the previous year 1,496,361
325,267
189,762
102,204
Cash changes -68,341
19,596
-28,535
486,944
Cash inflows 0
35,000
0
488,000
Payments -3,790
-10,733
-28,535
-33
Interest paid -64,551
-4,671
0
-1,023
Non-cash changes 65,579
6,224
19,821
5,484
Additions 64,431
6,221
16,093
5,741
Disposals 0
0
-17
-260
Changes in scope of consolidation 0
0
828
0
Measurement changes 0
0
0
2
Exchange rate differences 1,148
3
2,917
1
Book value as of 31.12. 1,493,599
351,087
181,048
594,632
1
The interest payable for subordinated liabilities is included in other liabilities.
2
Contains derivative liabilities from financing liabilities and other financing liabilities
Development 31.12.2020
Subordinated
liabilities
(including
interest)
1
Liabilities to
financial
institutions
Lease liabilities
Financing
liabilities
2
in EUR '000
Book value as of 31.12. of the previous year 1,496,971
215,418
199,332
74,539
Cash changes -64,518
103,795
-33,282
25,762
Cash inflows 0
124,739
0
28,500
Payments 0
-16,803
-33,282
-889
Interest paid -64,518
-4,141
0
-1,849
Non-cash changes 63,908
6,054
23,712
1,903
Additions 64,614
6,055
26,415
2,303
Disposals 0
0
-247
0
Measurement changes 0
0
-16
-387
Exchange rate differences -706
-1
-2,440
-13
Book value as of 31.12. 1,496,361
325,267
189,762
102,204
1
The interest payable for subordinated liabilities is included in other liabilities.
2
Contains derivative liabilities from financing liabilities and other financing liabilities
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ADDITIONAL DISCLOSURES
24. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENT HIERARCHY
Fair values and book values of financial instruments and investments
Fair values and book values of financial instruments and investments 31.12.2021
Book value
Level 1
Level 2
Level 3
Fair value
in EUR '000
Property 2,850,588
0
64,483
4,617,616
4,682,099
Owner-occupied property 472,303
0
26,866
788,603
815,469
Investment property 2,378,285
0
37,617
3,829,013
3,866,630
Shares in at equity consolidated companies 276,913
Loans 2,156,064
58,403
2,280,842
40,412
2,379,657
Loans 1,273,633
0
1,322,849
26,155
1,349,004
Reclassified loans 106,677
33,681
92,792
0
126,473
Bonds classified as loans 775,754
24,722
865,201
14,257
904,180
Other financial assets 28,653,998
23,486,989
4,427,171
838,085
28,752,245
Financial assets held to maturity 2,255,318
1,767,514
541,052
9,646
2,318,212
Financial assets reclassified as held to maturity 302,402
327,417
10,338
0
337,755
Financial assets available for sale 25,849,069
21,260,626
3,829,911
758,532
25,849,069
Financial assets recognised at fair value through profit and loss
1
247,209
131,432
45,870
69,907
247,209
Other investments 872,227
872,227
Financial investments for unit- and index-linked life insurance 8,525,331
8,525,331
8,525,331
Subordinated liabilities 1,461,286
0
1,586,047
21,199
1,607,246
Liabilities to financial institutions 351,087
351,087
Financing liabilities
2
594,614
0
487,493
102,870
590,363
1
including held for trading
2
Not including derivative liabilities
Fair values and book values of financial instruments and investments 31.12.2020
Book value
Level 1
Level 2
Level 3
Fair value
in EUR '000
Property 2,507,413
0
63,132
4,127,729
4,190,861
Owner-occupied property 477,469
0
27,210
769,443
796,653
Investment property 2,029,944
0
35,922
3,358,286
3,394,208
Shares in at equity consolidated companies 291,561
Loans 2,566,884
162,320
2,615,357
102,552
2,880,229
Loans 1,647,782
76,214
1,610,950
85,860
1,773,024
Reclassified loans 136,308
59,988
97,855
5,000
162,843
Bonds classified as loans 782,794
26,118
906,552
11,692
944,362
Other financial assets 28,685,004
23,919,022
4,424,592
734,347
29,077,961
Financial assets held to maturity 2,163,435
1,924,912
544,108
10,825
2,479,845
Financial assets reclassified as held to maturity 293,003
352,601
16,949
0
369,550
Financial assets available for sale 25,983,431
21,517,902
3,806,396
659,133
25,983,431
Financial assets recognised at fair value through profit and loss
1
245,135
123,607
57,139
64,389
245,135
Other investments 850,324
850,324
Financial investments for unit- and index-linked life insurance 7,968,039
7,968,039
7,968,039
Subordinated liabilities 1,463,909
0
1,615,767
21,036
1,636,803
Liabilities to financial institutions 325,267
325,267
Financing liabilities
2
102,189
0
0
102,189
102,189
1
including held for trading
2
Not including derivative liabilities
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Information on the nature and extent of risks arising from financial instruments is provided in the Financial instruments and risk
management section on page 65.
Property (fair values) 31.12.2021
31.12.2020
in EUR '000
Owner-occupied property 815,469
796,653
evaluated by an independent expert 348,034
310,809
evaluated by an internal expert 467,435
485,844
Investment property 3,866,630
3,394,208
evaluated by an independent expert* 916,684
810,888
evaluated by an internal expert 2,949,946
2,583,320
*This corresponds to 23.71% (23.89%) of the fair value of investment property.
Measurement process
The measurement process aims to determine the fair value of financial assets using price quotations that are publicly avail-
able in active markets or valuations based on recognised economic models using observable inputs. If public price quota-
tions and observable market data are not available for an investment, the investment is generally measured using valuation
reports prepared by appraisers (e.g. expert reports). The organisational units responsible for appraisal of investments are
independent of the units that assume the risk exposure of the investments, thereby ensuring separation of functions and
responsibilities.
As a rule, the aim is to use the same price within VIG Insurance Group to value a particular security on each valuation date.
In practice, however, situations occur when the cost of process compliance would be inappropriate. For example, the local
provisions in some countries in which VIG Insurance Group operates require the insurance companies there to use prices
on the local stock exchange to value certain investments. In this case, if the same security is held by other companies in
VIG Insurance Group, these companies might use another price source for valuation.
Institutional funds are another example where uniform valuation can only be achieved at an inordinately high cost. The Austrian
companies hold varying amounts of institutional funds that are required under the IFRS to be included in the consolidated
financial statements. However, the valuation logic of an institutional fund requires the fund value (NAV) on a particular date
to be calculated using the (in general, closing) prices on the previous day. In this case, a security that is both held in an
institutional fund and directly held will be valued using different prices.
The following items are measured at fair value:
• Financial assets available for sale,
• Financial assets recognised at fair value through profit and loss (incl. held for trading),
• Derivative financial instruments (assets/liabilities), and
• Financial instruments for unit- and index-linked life insurance.
Balance sheet items that are not reported at fair value are subject to a non-recurring measurement at fair value. These items
are measured at fair value when events occur that indicate that the book value might no longer be recoverable (impairment).
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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The following items are not reported at fair value:
• Financial assets held to maturity,
• Shares in at equity consolidated companies,
• Property (owner-occupied and investment property),
• Loans, and
• Receivables.
REAL ESTATE VALUATION
The capitalised earnings method and discounted cash flow method are the main valuation methods used in VIG Insurance
Group to calculate the fair value of properties.
Each time valuation is performed, the methods are verified which allow the fair value of a property to be calculated. VIG
Insurance Group mainly uses the capitalised earnings method. In rare cases, a discounted cash flow method is also used,
provided it can be used to determine the highest and best use value for the property type.
Capitalised earnings method
In this method, the value of a property is determined by using an appropriate interest rate to capitalise expected or received
future gross profits over the expected useful life. The net operating income is calculated by deducting actual operating,
maintenance and administrative expenses (management expenses). An allowance for lost rental income and any liquidation
proceeds and costs are also taken into account. The rate used to calculate capitalised earnings is based on the achievable
return on investment. Net operating income minus the return on the land is capitalised at this rate over the remaining useful
life to calculate the capitalised earnings value of the structural facility. This is added to the land value to calculate the total
capitalised earnings value of the property.
Discounted cash flow method
The discounted cash flow method is a valuation method that discounts cash flows during the forecast phase (phase I) back
to the valuation date. Discounting is performed using a rate for a comparable risky investment with property- and market-
specific premiums. The gross profit for the year plus vacancy rental (at current market rent) minus non-allocable manage-
ment costs equals the net operating income for the year. The method allows precise analysis of the individual years of the
initial forecast phase so that investments and vacancies can be assigned to individual years and accounted for in advance.
In phase II, the proceeds from a fictitious disposal at the end of the forecast phase (max. 10 years) are calculated by
capitalising future cash flows. The rate used for this calculation is the rate for a comparably risky investment plus market-
and property-specific premiums, less the expected increase in value.
OTHER DISCLOSURES ABOUT THE VALUATION PROCESS
The use of different pricing models and assumptions can lead to differing results for fair value. Changes in the estimates
and assumptions used to determine the fair value of assets in cases where no market price quotations are available may
necessitate a write-up or write-down of the book value of the assets in question and the recognition of the corresponding
income or expense in the income statement.
Certain investments whose fair value is normally not repeatedly measured are measured once at fair value when events or
changes in circumstances indicate that the book value might no longer be recoverable. If financial assets are measured at
130
Annual Financial Report 2021
fair value when impairment is recognised or fair value minus selling costs is used as a measurement basis in accordance
with IFRS 5, a disclosure to this effect is included in Note 16. Financial result excl. result from shares in at equity consolidated
companies starting on page 120 or Note 18. Other income and expenses on page 123.
Measurement hierarchy – Financial instruments recognised at fair value
Measurement hierarchy 31.12.2021 31.12.2020
Financial instruments recognised at fair value Level 1
Level 2
Level 3
Level 1
Level 2
Level 3
in EUR '000
Financial assets
Financial assets available for sale 21,260,626
3,829,911
758,532
21,517,902
3,806,396
659,133
Bonds 18,334,752
3,721,353
249,107
18,893,447
3,709,909
292,349
Shares and other participations 425,500
4,427
341,006
372,249
3,636
296,400
Investment funds 2,500,374
104,131
168,419
2,252,206
92,851
70,384
Financial investments for unit- and index-linked life
insurance 8,525,331
7,968,039
Financial liabilities
Financing liabilities* 0
487,493
102,870
0
0
102,189
*Not including derivative liabilities
The unrealised effect on the result (net profit or loss) from level 3 financial instruments that are still in the portfolio and whose
fair value is recognised in profit or loss was EUR -578,000 during the reporting year (EUR -625,000).
Reclassification of financial instruments
The companies in VIG Insurance Group regularly reviews the validity of the last fair value classification performed on each
valuation date. For example, a reclassification is performed, if needed inputs are no longer directly observable in the market.
Reclassifications between Level 1 and 2 primarily occur if liquidity, trading frequency or trading activity of the particular
financial instrument once again, or no longer allows one to conclude that an active market exists. For example, the market
maker for a security frequently changes, with corresponding changes on the liquidity. Similarly, when shares are included in
(or removed from) an index that acts as a benchmark for many funds. In this case, the classification can also change. As a
result of the decentralised structure of VIG Insurance Group, the classifications are generally reviewed by the local com-
panies at the end of the period. Any reclassifications are presented as if they had taken place at the end of the period.
Unobservable input factors
Asset class Measurement methods Unobservable input factors Range
Property Market value Capitalisation rate 1.00%–7.50%
Rental income EUR 3,000–EUR 3,765,000
Land prices EUR 0–EUR 11,000
Discounted Cash flow Capitalisation rate 3.56%–8.03%
Rental income EUR 96,555–EUR 6,913,000
Building rights Capitalisation rate 2.5%–4.0%
Rental income 76,751 EUR–4,377,000 EUR
Land prices 250 EUR–730 EUR
Construction interest actually paid 0.2%–5.7%
Financial assets available for sale Present value method Spreads -0.13%–4.13%
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131
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.
The spread assumption is the critical factor for the changes in value of Level 3 measured bonds in the “Financial instruments
available for sale” category and as a result, the sensitivity to this factor is of particular interest. The spreads have increased
up to 120 basis points compared to the measurement performed before the COVID-19 pandemic.
The most important bonds measured using a level 3 method in the “Financial instruments available for sale” category are
held by the Austrian, Czech and Polish Group companies and show the following sensitivities:
Financial assets available for sale – bonds Fair Value
in EUR '000
Fair value at 31.12.2021 249,107
Spread +50bp -3,170
Effect on the statement of comprehensive income -3,170
The following sensitivities result from calculations using the Solvency II partial internal model:
Property Fair Value
in EUR '000
Fair value at 31.12.2021 4,195,291
Rental income -5% 4,045,918
Rental income +5% 4,360,263
Capitalisation rate -50bp 4,477,311
Capitalisation rate +50bp 3,968,470
Land prices -5% 4,166,862
Land prices +5% 4,238,491
Since property is measured at cost, negative sensitivities would only affect profit or loss if property value fell below book
value. Other comprehensive income is therefore unaffected.
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Annual Financial Report 2021
Financial instruments reconciliation
Development 2021 2020
Financial assets available for sale Level 1
Level 2
Level 3
Level 1
Level 2
Level 3
in EUR '000
Fair value at 31.12 of the previous year 21,517,902
3,806,396
659,133
21,011,483
3,476,413
660,207
Exchange rate differences 23,856
7,257
182
-102,154
-5,287
-3,879
Fair value at 1.1. 21,541,758
3,813,653
659,315
20,909,329
3,471,126
656,328
Reclassification between securities categories 0
0
15
0
0
-6
Reclassification to Level 9,421
65,879
50,951
36,688
135,265
44,850
Reclassification from Level -93,988
-20,560
-11,703
-130,840
-56,090
-29,873
Additions 2,640,362
625,106
192,969
2,751,042
518,759
96,976
Disposals -2,199,866
-530,097
-96,578
-2,327,967
-320,465
-65,481
Changes in scope of consolidation 0
0
-32,037
0
0
-42,324
Changes in value recognised in profit and loss 0
0
0
6,689
0
0
Changes recognised directly in equity -637,023
-123,926
15,241
332,084
58,483
7,358
Impairments -38
-144
-19,641
-59,123
-682
-8,695
Fair value at 31.12. 21,260,626
3,829,911
758,532
21,517,902
3,806,396
659,133
For information on the effects of changes in value recognised in profit or loss, please refer to Note 16. Financial result excl.
result from shares in at equity consolidated companies on page 120.
25. NUMBER OF EMPLOYEES AND PERSONNEL EXPENSES
Number of employees 2021
2020
Number
Sales representatives 13,142
13,450
Office staff 12,542
12,230
Total 25,684
25,680
The employee figures shown are average values based on full-time equivalents.
Personnel expenses 2021
2020
in EUR '000
Wages and salaries 624,170
594,092
Expenses for severance benefits and payments to company pension plans 8,624
7,908
Expenses for retirement provisions 18,970
13,690
Mandatory social security contributions and expenses 171,955
162,082
Other social security expenses 22,619
21,108
Total 846,338
798,880
thereof sales representatives 378,722
361,418
thereof office staff 467,616
437,462
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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26. AUDITING FEES AND AUDITING SERVICES
KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft (KPMG Austria GmbH) was the auditor of
these consolidated financial statements. The following expenses were recognised during the financial year for services
provided by KPMG Austria GmbH and the Austrian member firms (KPMG Austria-wide):
Composition 2021 2020
KPMG Austria wide
KPMG Austria GmbH
Total
Total
in EUR '000
Audit of consolidated financial statements 0
265
265
251
Audit of parent company financial statements 0
59
59
56
Other audit services 375
48
423
392
Tax advisory fees 9
0
9
21
Fees for audit related services 524
84
608
479
Total 908
455
1,364
1,199
27. MEMBERS OF MANAGEMENT IN KEY POSITIONS
Supervisory Board
Chairman Günter Geyer
1
st
Deputy Chairman Rudolf Ertl
2
nd
Deputy Chairman Robert Lasshofer (since 6 September 2021)
Georg Riedl (until 6 September 2021)
Members Martina Dobringer
Zsuzsanna Eifert (since 15 July 2021)
Gerhard Fabisch
Robert Lasshofer (from 15 July until 6 September 2021)
Peter Mihók
Heinz Öhler
Georg Riedl (since 6 September 2021)
Gabriele Semmelrock-Werzer
Katarina Slezáková
Gertrude Tumpel-Gugerell
Managing Board
Chairwoman Elisabeth Stadler
Deputy Chairman Hartwig Löger (since 15 September 2021)
Members Liane Hirner
Peter Höfinger
Gerhard Lahner
Gábor Lehel
Hartwig Löger (until 14 September 2021)
Harald Riener
Peter Thirring
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Annual Financial Report 2021
28. AFFILIATED COMPANIES AND PARTICIPATIONS
Company name, registered office Country of domicile
Equity interest
2021
1)
Equity
interest
2020
1)
Equity 2021
2)
Equity 2020
2)
in %
in %
in EUR '000
in EUR '000
Fully consolidated companies
"BULSTRAD LIFE VIENNA INSURANCE GROUP" JOINT STOCK COMPANY,
Sofia
Bulgaria
100.00
100.00
27,375
30,111
"Compensa Vienna Insurance Group", ADB, Vilnius Lithuania 100.00
100.00
86,338
88,220
"Grüner Baum" Errichtungs- und Verwaltungsges.m.b.H., Vienna Austria 100.00
100.00
39,996
39,953
Anděl Investment Praha s.r.o., Prague Czech Republic 100.00
100.00
24,052
23,498
Anif-Residenz GmbH & Co KG, Vienna Austria 100.00
100.00
16,597
14,901
Asigurarea Românească - ASIROM Vienna Insurance Group S.A.,
Bucharest
Romania
99.79
99.72
79,960
85,031
ATBIH GmbH, Vienna Austria 100.00
100.00
173,509
182,488
ATRIUM TOWER SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOSCIĄ,
Warsaw
Poland
100.00
100.00
18,559
20,271
BCR Asigurări de Viaţă Vienna Insurance Group S.A., Bucharest Romania 93.98
93.98
48,074
47,537
Blizzard Real Sp. z o.o., Warsaw Poland 100.00
100.00
3,347
2,925
BTA Baltic Insurance Company AAS, Riga Latvia 100.00
100.00
64,005
71,897
Bulgarski Imoti Asistans EOOD, Sofia Bulgaria 100.00
100.00
-1,284
-543
Businesspark Brunn Entwicklungs GmbH, Vienna Austria 100.00
100.00
33,983
34,433
CAPITOL, akciová spoločnosť, Bratislava Slovakia 100.00
100.00
1,562
1,242
CENTER Hotelbetriebs GmbH, Vienna Austria 80.00
80.00
10
-1,042
Central Point Insurance IT-Solutions GmbH, Vienna Austria 100.00
100.00
10,952
-24,296
Česká podnikatelská pojišťovna, a.s., Vienna Insurance Group, Prague Czech Republic 100.00
100.00
114,722
129,748
Compania de Asigurări "DONARIS VIENNA INSURANCE GROUP" Societate
pe Actiuni, Chișinău
Moldova
99.99
99.99
5,639
4,837
Compensa Life Vienna Insurance Group SE, Tallinn Estonia 100.00
100.00
45,469
51,483
Compensa Towarzystwo Ubezpieczeń Na Życie S.A. Vienna Insurance
Group, Warsaw
Poland
99.97
99.97
59,036
72,226
Compensa Towarzystwo Ubezpieczeń S.A. Vienna Insurance Group,
Warsaw
Poland
99.94
99.94
96,104
140,163
CP Solutions a.s., Prague Czech Republic 100.00
100.00
12,849
12,027
DBLV Immobesitz GmbH & Co KG, Vienna Austria 100.00
100.00
3,025
3,075
DBR-Liegenschaften GmbH & Co KG, Stuttgart Germany 100.00
100.00
8,247
9,674
Deutschmeisterplatz 2 Objektverwaltung GmbH, Vienna Austria 100.00
100.00
2,963
3,043
Donau Brokerline Versicherungs-Service GmbH, Vienna Austria 100.00
100.00
96,047
95,792
DONAU Versicherung AG Vienna Insurance Group, Vienna Austria 100.00
100.00
108,482
104,360
DVIB alpha GmbH, Vienna Austria 100.00
100.00
8,373
8,377
DVIB GmbH, Vienna Austria 100.00
100.00
95,420
94,041
DV Immoholding GmbH, Vienna Austria 100.00
100.00
22,854
8,315
ELVP Beteiligungen GmbH, Vienna Austria 100.00
100.00
23,324
23,322
EUROPEUM Business Center s.r.o., Bratislava Slovakia 100.00
100.00
8,634
9,030
Floridsdorf am Spitz 4 Immobilienverwertungs GmbH, Vienna Austria 100.00
100.00
18,545
18,672
Gesundheitspark Wien-Oberlaa Gesellschaft m.b.H., Vienna Austria 100.00
100.00
29,446
29,826
GLOBAL ASSISTANCE, a.s., Prague Czech Republic 100.00
100.00
6,134
5,408
HUN BM Korlátolt Felelősségű Társaság, Budapest Hungary 100.00
100.00
4,830
4,475
Insurance Company Vienna osiguranje d.d., Vienna Insurance Group,
Sarajevo
Bosnia-Herzegovina
100.00
100.00
11,649
9,921
INSURANCE ONE-SHAREHOLDER JOINT-STOCK COMPANY BULSTRAD
VIENNA INSURANCE GROUP EAD, Sofia
Bulgaria
100.00
100.00
76,845
59,540
InterRisk Lebensversicherungs-AG Vienna Insurance Group, Wiesbaden Germany 100.00
100.00
23,518
23,518
InterRisk Towarzystwo Ubezpieczeń S.A. Vienna Insurance Group,
Warsaw
Poland
100.00
100.00
72,346
112,131
InterRisk Versicherungs-AG Vienna Insurance Group, Wiesbaden Germany 100.00
100.00
56,120
53,770
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
135
Company name, registered office Country of domicile
Equity interest
2021
1)
Equity
interest
2020
1)
Equity 2021
2)
Equity 2020
2)
in %
in %
in EUR '000
in EUR '000
INTERSIG VIENNA INSURANCE GROUP Sh.A., Tirana Albania 89.98
89.98
6,648
6,085
Joint Stock Company Insurance Company GPI Holding, Tbilisi Georgia 90.00
90.00
15,100
12,291
Joint Stock Company International Insurance Company IRAO, Tbilisi Georgia 100.00
100.00
4,832
3,640
Joint Stock Insurance Company WINNER-Vienna Insurance Group,
Skopje
North Macedonia
100.00
100.00
7,461
7,138
Kaiserstraße 113 GmbH, Vienna Austria 100.00
100.00
2,798
2,637
KÁLVIN TOWER Ingatlanfejlesztési és Beruházási Korlátolt Felelősségű
Társaság, Budapest
Hungary
100.00
100.00
2,309
2,499
KAPITOL, a.s., Brno Czech Republic 100.00
100.00
1,920
2,318
KKB Real Estate SIA, Riga Latvia 100.00
100.00
20,472
17,311
KOMUNÁLNA poisťovňa, a.s. Vienna Insurance Group, Bratislava Slovakia 100.00
100.00
74,869
76,662
KOOPERATIVA poisťovňa, a.s. Vienna Insurance Group, Bratislava Slovakia 98.47
98.47
385,574
408,100
Kooperativa pojišťovna, a.s., Vienna Insurance Group, Prague Czech Republic 97.28
97.28
682,480
754,598
LVP Holding GmbH, Vienna Austria 100.00
100.00
622,534
591,192
MAP-WSV Beteiligungen GmbH, Vienna Austria 100.00
100.00
307,688
220,778
MC EINS Investment GmbH, Vienna Austria 100.00
100.00
19,726
19,096
MH 54 Immobilienanlage GmbH, Vienna Austria 100.00
100.00
26,356
26,402
NNC REAL ESTATE SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOŚCIĄ,
Warsaw
Poland
100.00
20,284
Nußdorfer Straße 90-92 Projektentwicklung GmbH & Co KG, Vienna Austria 100.00
100.00
39,450
39,213
OMNIASIG VIENNA INSURANCE GROUP S.A., Bucharest Romania 99.54
99.54
143,913
149,566
OÜ LiveOn Paevalille, Tallinn Latvia 100.00
92
Palais Hansen Immobilienentwicklung GmbH, Vienna Austria 56.55
56.55
37,277
17,200
Passat Real Sp. z o.o., Warsaw Poland 100.00
100.00
-1,191 -1,390
Pension Assurance Company Doverie AD, Sofia Bulgaria 92.58
92.58
31,402
29,183
PFG Holding GmbH, Vienna Austria 89.23
89.23
78,376
77,316
PFG Liegenschaftsbewirtschaftungs GmbH & Co KG, Vienna Austria 92.88
92.88
12,478
7,446
Porzellangasse 4 Liegenschaftsverwaltung GmbH & Co KG, Vienna Austria 100.00
100.00
12,983
13,005
PRIVATE JOINT-STOCK COMPANY "INSURANCE COMPANY "KNIAZHA
LIFE VIENNA INSURANCE GROUP", Kyiv
Ukraine
99.81
99.81
3,407
2,743
Private Joint-Stock Company "Insurance company" Ukrainian insurance
group", Kyiv
Ukraine
100.00
100.00
18,653
17,594
PRIVATE JOINT-STOCK COMPANY "UKRAINIAN INSURANCE COMPANY
"KNIAZHA VIENNA INSURANCE GROUP", Kyiv
Ukraine
99.99
99.99
11,478
8,481
PROGRESS Beteiligungsges.m.b.H., Vienna Austria 70.00
70.00
15,825
17,973
Projektbau GesmbH, Vienna Austria 100.00
100.00
15,065
15,358
Projektbau Holding GmbH, Vienna Austria 100.00
90.00
14,185
14,186
Rathstraße 8 Liegenschaftsverwertungs GmbH, Vienna Austria 100.00
100.00
1,656
1,498
Ray Sigorta A.Ş., Istanbul Turkey 94.96
94.96
28,867
37,079
Rößlergasse Bauteil Drei GmbH, Vienna Austria 100.00
100.00
29,583
29,378
Rößlergasse Bauteil Zwei GmbH, Vienna Austria 100.00
100.00
11,552
11,495
S - budovy, a.s., Prague Czech Republic 100.00
100.00
3,059
2,895
Schulring 21 Bürohaus Errichtungs- und Vermietungs GmbH & Co KG,
Vienna
Austria
100.00
100.00
7,744
7,736
SECURIA majetkovosprávna a podielová s.r.o., Bratislava Slovakia 100.00
100.00
10,305
7,160
Senioren Residenz Fultererpark Errichtungs- und Verwaltungs GmbH,
Vienna
Austria
100.00
100.00
-6,749 -6,409
Senioren Residenz Veldidenapark Errichtungs- und Verwaltungs GmbH,
Vienna
Austria
66.70
66.70
8,211
8,268
SIA “Alauksta 13/15”, Riga Latvia 100.00
100.00
971
3
SIA “Artilērijas 35”, Riga Latvia 100.00
100.00
918
3
SIA “Ģertrūdes 121”, Riga Latvia 100.00
100.00
3,379
3
SIA "Global Assistance Baltic", Riga Latvia 100.00
100.00
277
300
SIA "LiveOn", Riga Latvia 70.00
21,530
136
Annual Financial Report 2021
Company name, registered office Country of domicile
Equity interest
2021
1)
Equity
interest
2020
1)
Equity 2021
2)
Equity 2020
2)
in %
in %
in EUR '000
in EUR '000
SIA "LiveOn Stirnu", Riga Latvia 100.00
1,702
SIA LiveOn Terbatas, Riga Latvia 100.00
8,201
SIA "Urban Space", Riga Latvia 100.00
100.00
481
456
Sigma Interalbanian Vienna Insurance Group Sh.a, Tirana Albania 89.05
89.05
16,501
14,918
SK BM s.r.o., Bratislava Slovakia 100.00
100.00
13,136
13,273
SMARDAN 5 DEVELOPMENT S.R.L., Bucharest Romania 100.00
100.00
-51
-8
Stock Company for Insurance and Reinsurance MAKEDONIJA Skopje -
Vienna Insurance Group, Skopje
North Macedonia
94.26
94.26
27,280
25,925
SVZ GmbH, Vienna Austria 100.00
100.00
176,329
162,664
SVZD GmbH, Vienna Austria 100.00
100.00
73,285
60,408
SVZI GmbH, Vienna Austria 100.00
100.00
171,480
158,700
T 125 GmbH, Vienna Austria 100.00
100.00
9,012
8,875
TBI BULGARIA EAD in liquidation, Sofia Bulgaria 100.00
100.00
529
40,437
TECHBASE Science Park Vienna GmbH, Vienna Austria 100.00
100.00
17,829
18,033
twinformatics GmbH, Vienna Austria 100.00
100.00
2,887
2,546
UAB LiveOn Linkmenu, Vilnius Lithuania 100.00
4,188
UNION Vienna Insurance Group Biztosító Zrt., Budapest Hungary 98.64
98.64
50,774
50,254
Untere Donaulände 40 GmbH & Co KG, Vienna Austria 100.00
100.00
11,340
11,341
Vienibas Gatve Investments OÜ, Tallinn Estonia 100.00
100.00
73
-102
Vienibas Gatve Properties SIA, Riga Latvia 100.00
100.00
1,630
1,631
Vienna-Life Lebensversicherung AG Vienna Insurance Group, Bendern Liechtenstein 100.00
100.00
9,535
9,163
Vienna Life Towarzystwo Ubezpieczeń na Życie S.A. Vienna Insurance
Group, Warsaw
Poland
100.00
100.00
4,976
4,167
VIG-AT Beteiligungen GmbH, Vienna Austria 100.00
100.00
352,832
314,222
VIG-CZ Real Estate GmbH, Vienna Austria 100.00
100.00
147,538
140,059
VIG FUND, a.s., Prague Czech Republic 100.00
100.00
275,189
232,016
VIG Home, s.r.o., Bratislava Slovakia 100.00
100.00
21,897
8,006
V.I.G. ND, a.s., Prague Czech Republic 100.00
100.00
94,959
90,566
VIG Offices, s.r.o., Bratislava Slovakia 100.00
100.00
16,003
10,459
VIG Properties Bulgaria AD, Sofia Bulgaria 99.97
99.97
3,748
3,746
VIG RE zajišťovna, a.s., Prague Czech Republic 100.00
100.00
179,835
180,831
VIG REAL ESTATE DOO, Belgrade Serbia 100.00
100.00
10,432
10,462
VIG Services Ukraine, LLC, Kyiv Ukraine 100.00
100.00
1,438
1,461
Virtus Sechzehn Beteiligungs GmbH, Vienna Austria 100.00
28,751
VITEC Vienna Information Technology Consulting GmbH, Vienna Austria 51.00
51.00
447
504
WGPV Holding GmbH, Vienna Austria 100.00
100.00
107,003
107,980
WIBG Holding GmbH & Co KG, Vienna Austria 100.00
100.00
80,098
78,898
WIBG Projektentwicklungs GmbH & Co KG, Vienna Austria 100.00
100.00
80,031
79,044
Wiener Osiguranje Vienna Insurance Group ad, Banja Luka Bosnia-Herzegovina 100.00
100.00
8,919
9,088
Wiener osiguranje Vienna Insurance Group dioničko društvo za
osiguranje, Zagreb
Croatia
97.82
97.82
98,736
107,483
"WIENER RE" akcionarsko društvo za reosiguranje, Belgrade Serbia 100.00
100.00
7,491
7,569
WIENER STÄDTISCHE OSIGURANJE akcionarsko drustvo za osiguranje,
Belgrade
Serbia
100.00
100.00
55,964
62,421
WIENER STÄDTISCHE VERSICHERUNG AG Vienna Insurance Group,
Vienna
Austria
97.75
97.75
559,209
545,874
WIENER TOWARZYSTWO UBEZPIECZEŃ SPÓŁKA AKCYJNA VIENNA
INSURANCE GROUP, Warsaw
Poland
100.00
100.00
34,035
44,171
WIENER VEREIN BESTATTUNGS- UND VERSICHERUNGSSERVICE-
GESELLSCHAFT M.B.H., Vienna
Austria
100.00
100.00
1,938
1,896
WILA GmbH, Vienna Austria 100.00
100.00
31,685
15,790
WINO GmbH, Vienna Austria 100.00
100.00
46,117
18,300
WNH Liegenschaftsbesitz GmbH, Vienna Austria 100.00
100.00
5,363
4,969
WSBV Beteiligungsverwaltung GmbH & Co KG, Vienna Austria 100.00
100.00
24,125
11,294
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
137
Company name, registered office Country of domicile
Equity interest
2021
1)
Equity
interest
2020
1)
Equity 2021
2)
Equity 2020
2)
in %
in %
in EUR '000
in EUR '000
WSV Beta Immoholding GmbH, Vienna Austria 100.00
100.00
73,972
45,987
WSVA Liegenschaftbesitz GmbH, Vienna Austria 100.00
100.00
43,310
10,468
WSVB Liegenschaftbesitz GmbH, Vienna Austria 100.00
100.00
41,496
29,150
WSVC Liegenschaftbesitz GmbH, Vienna Austria 100.00
100.00
21,341
16,298
WSV Immoholding GmbH, Vienna Austria 100.00
100.00
511,862
399,183
WSV Triesterstraße 91 Besitz GmbH & Co KG, Vienna Austria 100.00
100.00
81,865
79,710
WSV Vermögensverwaltung GmbH, Vienna Austria 100.00
100.00
7,487
4,568
WWG Beteiligungen GmbH, Vienna Austria 87.07
87.07
93,289
91,785
1
The share in equity equals the share in voting rights before non-controlling interests.
2
The capital value shown corresponds to the latest local annual financial statements available.
Company name, registered office Country of domicile
Equity interest
2021
1)
Equity interest
2020
1)
Equity 2021
2)
Equity 2020
2)
in %
in %
in EUR '000
in EUR '000
At equity consolidated companies
"Schwarzatal" Gemeinnützige Wohnungs- und Siedlungsanlagen-GmbH,
Vienna
Austria
100.00
100.00
165,442
158,289
Alpenländische Gemeinnützige WohnbauGmbH, Innsbruck Austria 94.84
94.84
229,840
212,947
Beteiligungs- und Immobilien GmbH, Linz Austria 25.00
25.00
19,878
18,651
Beteiligungs- und Wohnungsanlagen GmbH, Linz Austria 25.00
25.00
229,253
220,763
CROWN-WSF spol. s.r.o., Prague Czech Republic 30.00
30.00
8,882
8,224
EGW Erste gemeinnützige Wohnungsgesellschaft mbH, Vienna Austria 99.77
99.77
309,955
289,207
ERSTE d.o.o. - za upravljanje obveznim i dobrovljnim mirovinskim
fondovima, Zagreb
Croatia
25.30
25.30
15,481
14,470
Gemeinnützige Industrie-Wohnungsaktiengesellschaft, Leonding Austria 55.00
55.00
332,045
317,753
Gemeinnützige Mürz-Ybbs Siedlungsanlagen-GmbH, Kapfenberg Austria 99.92
99.92
148,588
142,197
Gewista-Werbegesellschaft m.b.H., Vienna Austria 33.00
33.00
116,801
104,366
NEUE HEIMAT Oberösterreich Gemeinnützige Wohnungs- und
SiedlungsgesmbH, Linz
Austria
99.82
99.82
212,512
198,070
Neuland gemeinnützige Wohnbau-Gesellschaft m.b.H., Vienna Austria 61.00
61.00
109,955
108,101
Österreichisches Verkehrsbüro Aktiengesellschaft, Vienna
(Consolidated Financial Statements)
Austria
36.58
36.58
61,670
40,607
SOZIALBAU gemeinnützige Wohnungsaktiengesellschaft, Vienna Austria 54.17
54.17
342,450
337,194
Towarzystwo Ubezpieczeń Wzajemnych „TUW", Warsaw Poland 52.16
52.16
57,690
62,278
Urbanbau Gemeinnützige Bau-, Wohnungs- und
Stadterneuerungsgesellschaft m.b.H., Vienna
Austria
51.46
51.46
142,492
137,346
VBV - Betriebliche Altersvorsorge AG, Vienna
(Consolidated Financial Statements)
Austria
25.32
25.32
279,847
260,233
1
The share in equity equals the share in voting rights before non-controlling interests.
2
The capital value shown corresponds to the latest local annual financial statements available.
Company name, registered office Country of domicile Equity interest 2021
1)
in %
Non-consolidated companies
" Assistance Company " Ukrainian Assistance Service" LLC, Kyiv Ukraine 100.00
"Eisenhof" Gemeinnützige Wohnungsgesellschaft m.b.H., Vienna Austria 20.13
"JAHORINA AUTO" d.o.o., Banja Luka Bosnia-Herzegovina 100.00
"LifeTrust" Ltd, Sofia Bulgaria 100.00
"Neue Heimat" Stadterneuerungsgesellschaft m.b.H., Linz Austria 79.51
AB Modřice, a.s., Prague Czech Republic 97.28
AIS Servis, s.r.o., Brno Czech Republic 98.10
Akcionarsko družstvo za životno osiguranje Wiener Städtische Podgorica, Vienna Insurance Group, Podgorica Montenegro 100.00
138
Annual Financial Report 2021
Company name, registered office Country of domicile Equity interest 2021
1)
in %
ALBA Services GmbH, Vienna Austria 48.87
Amadi GmbH, Wiesbaden Germany 100.00
AQUILA Hausmanagement GmbH, Vienna Austria 97.75
AREALIS Liegenschaftsmanagement GmbH, Vienna Austria 48.87
arithmetica Consulting GmbH, Vienna Austria 98.31
AUTODROM SOSNOVÁ u České Lípy a.s., Prague Czech Republic 97.28
AUTONOVA BRNO s.r.o., Brno Czech Republic 98.10
Autosig SRL, Bucharest Romania 99.54
B&A Insurance Consulting s.r.o., Moravská Ostrava Czech Republic 48.45
BB Parking s.r.o., Bratislava Slovakia 98.47
BEESAFE SPÓŁKA Z OGRANICZONA ODPOWIEDZIALNOSCIA, Warsaw Poland 99.99
Benefia Ubezpieczenia Spolka z ograniczona odpowiedzialnoscia, Warsaw Poland 99.94
Bohemika a.s., Žatec Czech Republic 100.00
Bohemika HYPO s.r.o., Žatec Czech Republic 100.00
Bulstrad Trudova Meditzina EOOD, Sofia Bulgaria 100.00
Camelot Informatik und Consulting Gesellschaft m.b.H., Vienna Austria 92.86
CARPLUS Versicherungsvermittlungsagentur GmbH, Vienna Austria 97.75
CLAIM EXPERT SERVICES S.R.L., Bucharest Romania 99.16
Compensa Dystrybucja Sp. z o. o., Warsaw Poland 99.97
ČPP servis, s.r.o., Prague Czech Republic 100.00
DBLV Immobesitz GmbH, Vienna Austria 100.00
DBR-Liegenschaften Verwaltungs GmbH, Stuttgart Germany 97.75
DELOIS s. r. o., Bratislava Slovakia 98.47
DELOIS II s.r.o., Bratislava Slovakia 98.47
DV Asset Management EAD, Sofia Bulgaria 100.00
DV CONSULTING EOOD, Sofia Bulgaria 100.00
DV Invest EAD, Sofia Bulgaria 100.00
EBS Wohnungsgesellschaft mbH Linz, Linz Austria 24.44
EBV-Leasing Gesellschaft m.b.H., Vienna Austria 47.90
EGW Datenverarbeitungs-Gesellschaft m.b.H., Vienna Austria 71.92
EGW Liegenschaftsverwertungs GmbH, Vienna Austria 71.92
EGW-NOE Erste gemeinnützige Wohnungsgesellschaft mbH, Wiener Neustadt Austria 71.92
EKG UW Nord GmbH, Klagenfurt Austria 24.46
Elsö Maganegeszsegügyi Halozat Zrt., Budapest Hungary 48.33
ERSTE Biztosítási Alkusz Kft, Budapest Hungary 98.64
European Insurance & Reinsurance Brokers Ltd., London United Kingdom 100.00
EXPERTA Schadenregulierungs-Gesellschaft mbH, Vienna Austria 99.44
Finanzpartner GmbH, Vienna Austria 48.87
FinServis Plus, s.r.o., Prague Czech Republic 100.00
Foreign limited liability company "InterInvestUchastie", Minsk Belarus 100.00
GELUP GmbH, Vienna Austria 32.58
GGVier Projekt-GmbH, Vienna Austria 53.76
Glamas Beteiligungsverwaltungs GmbH & Co "Beta" KG, Vienna Austria 42.76
Global Assistance Georgia LLC, Tiflis Georgia 95.00
Global Assistance Polska Sp.z.o.o., Warsaw Poland 99.99
GLOBAL ASSISTANCE SERVICES s.r.o., Prague Czech Republic 100.00
GLOBAL ASSISTANCE SERVICES SRL, Bucharest Romania 99.23
GLOBAL ASSISTANCE SLOVAKIA s.r.o., Bratislava Slovakia 99.22
Global Expert, s.r.o., Pardubice Czech Republic 98.10
Global Partner Péče, z.ú., Prague Czech Republic 63.23
Global Partner Zdraví, s.r.o., Prague Czech Republic 63.23
Global Partner, a.s., Prague Czech Republic 63.23
Global Repair Centres, s.r.o., Pardubitz Czech Republic 98.10
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
139
Company name, registered office Country of domicile Equity interest 2021
1)
in %
Global Services Bulgaria JSC, Sofia Bulgaria 100.00
Hausservice Objektbewirtschaftungs GmbH, Vienna Austria 20.72
HOTELY SRNÍ, a.s., Prague Czech Republic 97.28
Hotel Voltino in Liquidation, Zagreb Croatia 97.82
HORIZONT Personal-, Team- und Organisationsentwicklung GmbH, Vienna Austria 98.29
Immodat GmbH, Vienna Austria 20.72
IMOVE Immobilienverwertung- und -verwaltungs GmbH, Vienna Austria 20.72
INSHIFT GmbH & Co. KG, Köln Germany 23.53
InterRisk Informatik GmbH, Wiesbaden Germany 100.00
ITIS Spolka z ograniczoną odpowiedzialnoscią spolka komandytowa, Warsaw Poland 99.99
ITIS Sp.z.o.o., Warsaw Poland 98.03
Joint Stock Company "Curatio", Tbilisi Georgia 90.00
Joint Stock Insurance Company WINNER LIFE - Vienna Insurance Group, Skopje North Macedonia 100.00
Kitzbüheler Bestattung WV GmbH, Kitzbühel Austria 97.75
KUPALA Belarusian-Austrian Closed Joint Stock Insurance Company, Minsk Belarus 98.26
KWC Campus Errichtungsgesellschaft m.b.H., Klagenfurt Austria 48.87
LD Vermögensverwaltung GmbH, Vienna Austria 98.65
Lead Equities II. Auslandsbeteiligungs AG, Vienna Austria 21.59
Lead Equities II.Private Equity Mittelstandsfinanzierungs AG, Vienna Austria 21.59
LiSciV Muthgasse GmbH & Co KG, Vienna Austria 42.76
Main Point Karlín II., a.s., Prague Czech Republic 97.28
Money & More Pénzügyi Tanácsadó Zártkörűen Működő Részvéntársaság, Budapest Hungary 98.64
Nadacia poisťovne KOOPERATIVA, Bratislava Slovakia 98.47
NID Projektentwicklung GmbH, St. Pölten Austria 100.00
Nordbahnhof Projekt EPW8 GmbH & Co KG, Vienna Austria 97.75
Nordbahnhof Projekt EPW8 Komplementär GmbH, Vienna Austria 97.75
Nordbahnhof Projekt Taborstraße 123 GmbH & Co KG, Vienna Austria 100.00
Nordbahnhof Projekt Taborstraße 123 Komplementär GmbH, Vienna Austria 100.00
PFG Liegenschaftsbewirtschaftungs GmbH, Vienna Austria 73.69
POLISA - ŻYCIE Ubezpieczenia Sp.z.o.o., Warsaw Poland 99.97
Pražská softwarová s.r.o., Prague Czech Republic 98.10
Privat Joint-stock company "OWN SERVICE", Kyiv Ukraine 100.00
Projektbau Planung Projektmanagement Bauleitung GesmbH, Vienna Austria 54.51
Quadrant Q ZWÖLF Projektentwicklungs GmbH, St. Pölten Austria 97.75
Renaissance Hotel Realbesitz GmbH, Vienna Austria 40.00
Risk Consult Bulgaria EOOD, Sofia Bulgaria 51.00
Risk Consult Polska Sp.z.o.o., Warsaw Poland 68.15
RISK CONSULT Sicherheits- und Risiko- Managementberatung Gesellschaft m.b.H., Vienna Austria 51.00
Risk Expert Risk ve Hasar Danismanlik Hizmetleri Limited Sirketi, Istanbul Turkey 64.19
Risk Experts Risiko Engineering GmbH, Vienna Austria 12.24
Risk Experts s.r.o., Bratislava Slovakia 51.00
Risk Logics Risikoberatung GmbH, Vienna Austria 51.00
samavu s.r.o, Bratislava Slovakia 98.47
Sanatorium Astoria, a.s., Karlsbad Czech Republic 97.28
SB Liegenschaftsverwertungs GmbH, Vienna Austria 40.26
S.C. CLUB A.RO S.R.L., Bucharest Romania 99.79
S.C. Risk Consult & Engineering Romania S.R.L., Bucharest Romania 51.00
S.C. SOCIETATEA TRAINING IN ASIGURARI S.R.L., Bucharest Romania 99.16
serviceline contact center dienstleistungs-GmbH, Vienna Austria 97.75
S.O.S.- EXPERT d.o.o. za poslovanje nekretninama, Zagreb Croatia 100.00
Senioren Residenzen gemeinnützige Betriebsgesellschaft mbH, Vienna Austria 97.75
Slovexperta, s.r.o., Žilina Slovakia 98.70
Soleta Beteiligungsverwaltungs GmbH, Vienna Austria 42.76
140
Annual Financial Report 2021
Company name, registered office Country of domicile Equity interest 2021
1)
in %
Sparkassen-Versicherungsservice Gesellschaft m.b.H., Vienna Austria 97.75
Spółdzielnia Usługowa VIG EKSPERT W WARSZAWIE, Warsaw Poland 99.97
SURPMO, a.s., Prague Czech Republic 97.28
TAUROS Capital Investment GmbH & Co KG, Vienna Austria 19.55
TAUROS Capital Management GmbH, Vienna Austria 25.30
TBI Info AD, Sofia Bulgaria 20.00
TeleDoc Holding GmbH, Vienna Austria 25.01
TGMZ Team Gesund Medizin Zentren GmbH, Vienna Austria 39.10
TOGETHER GmbH, Vienna Austria 24.71
twinfaktor GmbH, Vienna Austria 98.87
UAB "Compensa Life Distribution", Vilnius Lithuania 100.00
UNION-Erted Ellatasszervezö Korlatold Felelössegü Tarsasag, Budapest Hungary 98.64
Versicherungsbüro Dr. Ignaz Fiala Gesellschaft m.b.H., Vienna Austria 47.90
Vienna Insurance Group Polska Spółka z organiczoną odpowiedzialnością, Warsaw Poland 99.99
Vienna International Underwriters GmbH, Vienna Austria 100.00
viesure innovation center GmbH, Vienna Austria 98.87
VIG AM Real Estate, a.s., Prague Czech Republic 100.00
VIG AM Services GmbH, Vienna Austria 100.00
VIG Management Service SRL, Bucharest Romania 99.16
VIG POLSKA REAL ESTATE SPÓŁKA Z OGRANICZONA ODPOWIEDZIALNOSCIA, Warsaw Poland 99.97
VIG Services Bulgaria EOOD, Sofia Bulgaria 100.00
VIG Services Shqiperi Sh.p.K., Tirana Albania 89.52
VIG ZP, s. r. o., Bratislava Slovakia 99.22
VIG/C-QUADRAT TOWARZYSTWO FUNDUSZY INVESTYCYJNYCH SPÓŁKA AKCYJNA, Warsaw Poland 50.99
VIVECA Beteiligungen GmbH, Vienna Austria 100.00
VÖB Direkt Versicherungsagentur GmbH, Graz Austria 48.87
WAG Wohnungsanlagen Gesellschaft m.b.H., Linz Austria 24.44
Wien 3420 Aspern Development AG, Vienna Austria 23.92
Wiener Städtische Donau Leasing GmbH, Vienna Austria 97.75
Wiener Verein Bestattungsbetriebe GmbH, Kramsach Austria 97.75
WOFIN Wohnungsfinanzierungs GmbH, Vienna Austria 20.72
WSBV Beteiligungsverwaltung GmbH, Vienna Austria 97.75
zuuri s.r.o., Bratislava Slovakia 98.47
1
The share in equity equals the share in voting rights before non-controlling interests.
Merged companies
Country of
domicile
Merger date Absorbing company
Insurance Company Nova Ins EAD, Sofia Bulgaria 4.10.2021
INSURANCE ONE-SHAREHOLDER JOINT-STOCK COMPANY BULSTRAD VIENNA
INSURANCE GROUP EAD, Sofia
VIG Offices 1, s.r.o., Bratislava Slovakia 1.1.2021 VIG Offices, s.r.o., Bratislava
CAL ICAL "Globus", Kyiv Ukraine 13.4.2021 Private Joint-Stock Company "Insurance company" Ukrainian insurance group", Kyiv
Please see the Scope and methods of consolidation section starting on page 55 for information on changes in the scope
of consolidation.
The information required under § 265(2) no. 4 of the Austrian Corporation Code (UGB) is provided in the overview of
participations in the separate financial statements.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
141
29. RELATED PARTIES
Related parties
Related parties are the affiliated companies, joint ventures and associated companies listed in Note 28. Affiliated companies
and participations starting on page 134. In addition, the members of the Managing Board and Supervisory Board of VIG
Holding also qualify as related parties. Wiener Städtische Versicherungsverein directly and indirectly holds around 72.47%
(around 72.47%), and therefore a majority of the voting rights of VIG Holding. Based on this controlling interest, it and the
members of its managing board and supervisory board are therefore also related parties.
Members of the Managing Board and Supervisory Board did not receive any advances or loans and had no loans out-
standing during the reporting periods. There were also no guarantees outstanding for members of the Managing Board or
Supervisory Board during the reporting periods.
Transactions with related companies
Transactions with non-consolidated affiliated and associated companies mainly relate to financing and charges for services.
Transactions between the fully consolidated companies included in the consolidated financial statements are eliminated
during consolidation and are therefore not included in the notes.
Transactions with Wiener Städtische Versicherungsverein
Wiener Städtische Versicherungsverein is the majority shareholder of VIG Holding. It has the legal form of a mutual insurance
association that has spun off its insurance operations under the Austrian Insurance Supervision Act (VAG) and consequently
has no insurance business operations. Due to the outsourcing to Wiener Städtische Versicherung AG that took place at
that time, its only responsibilities are those as a majority shareholder of VIG Holding, so that intercompany charges within
VIG Insurance Group are of minor importance. They are based on service agreements between VIG Insurance Group and
Wiener Städtische Versicherungsverein for intercompany charges for internal audit services, finance and accounting, pro-
vision of personnel and office leases based on the arm’s length principle.
Open items with related companies 31.12.2021
31.12.2020
in EUR '000
Loans 178,630
163,279
Associated companies 115,417
101,375
Subsidiaries not included in the consolidated financial statements 63,213
61,904
Receivables 147,524
227,592
Parent company 108,690
208,982
Associated companies 27,441
5,012
Subsidiaries not included in the consolidated financial statements 11,393
13,598
Liabilities excl. subordinated liabilities 158,605
272,252
Parent company 136,836
255,508
Associated companies 6,381
1,989
Subsidiaries not included in the consolidated financial statements 15,388
14,755
142
Annual Financial Report 2021
Transactions with related companies 2021
2020
in EUR '000
Loans 4,743
19,447
Associated companies 364
11,131
Subsidiaries not included in the consolidated financial statements 4,379
8,316
Receivables 110,567
71,281
Parent company 24,470
45,414
Associated companies 56,088
9,307
Subsidiaries not included in the consolidated financial statements 30,009
16,560
Liabilities excl. subordinated liabilities 283,286
225,298
Parent company 134,131
55,127
Associated companies 13,111
47,254
Subsidiaries not included in the consolidated financial statements 136,044
122,917
The transactions do not include changes in open items resulting from a change in the scope of consolidation.
Open items with related persons 31.12.2021
31.12.2020
in EUR '000
Receivables 2
126
Liabilities excl. subordinated liabilities 77
81
Transactions with related parties 2021
2020
in EUR '000
Loans 0
12
Receivables 196
505
Liabilities excl. subordinated liabilities 1,850
1,494
The related party items in the income statement do not exceed EUR 3,000,000 and primarily consist of Payments to
Supervisory Board members.
Compensation of management in key positions
Supervisory board and managing board remuneration (gross) 2021
2020
in EUR '000
Remuneration paid to Supervisory Board members 695
578
Total payments to former members of the Managing Board or their survivors 1,330
1,149
Provision for future pension and severance obligations of Managing Board members 3,159
3,546
Provision for other future long-term claims of Managing Board members 6,374
5,772
Remuneration paid to active Managing Board members 7,243
6,279
Total 18,801
17,324
Remuneration for Managing Board members
Managing Board remuneration takes into account the importance of the Group and the responsibility that goes with it, the
economic situation of the Company, and the appropriateness of the remuneration in the market environment.
The variable portion of the remuneration emphasises the need for sustainability and achieving it fully depends critically on
an analysis of the sustainable performance of the Company that extends beyond a single reporting year.
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The performance-related remuneration is limited. The maximum performance-related remuneration that the Managing
Board can receive by achieving the traditional targets in financial year 2021 is around 30% to around 40% of total remunera-
tion. Special bonus remuneration can also be earned for appropriate target achievement, and remuneration for overachieve-
ment in certain target areas. In total, the members of the Managing Board can earn variable remuneration equal to a maxi-
mum of around 45% to 50% of their total remuneration in this way.
Large parts of performance-related remuneration are only paid after a delay. The delay for financial year 2021 extends to
2025. The deferred portions are awarded based on the sustainable performance of the Group.
The Managing Board is not entitled to performance-related remuneration if performance fails to meet certain thresholds.
Even if the targets are fully met in a given financial year, because of the focus on sustainability, the full variable remuneration
is only awarded if the Group also achieves sustainable performance in the three following years.
Managing Board remuneration does not include stock options or similar instruments.
Members of the Company’s Managing Board who are active as of 31 December 2019 are entitled to funded defined benefit
pensions – based, among other things, on the length of service in VIG Insurance Group – equal to a maximum of 40% of
the measurement base if they remain in the Managing Board until age 65. The measurement base is equal to their standard
fixed remuneration. This pension amount can be increased in individual cases if work continues past the maximum pension
age, since a pension is not drawn during this period.
Starting as of 1 January 2020, newly appointed members of the Managing Board can be granted entitlements to defined
benefit pensions (alternatively entitlements to defined contribution pensions). As a rule, entitlements require at least one
reappointment, and are granted in stages, so that the maximum entitlement of 40% of fixed remuneration cannot be
reached until age 65 after at least 10 years of service as a member of the Managing Board. If a member of the Managing
Board has previously served in other positions in the Group for at least 5 years, an entitlement can already be granted at
the beginning of the term of office.
Pensions are normally received (regardless of the initial appointment date) only if a Managing Board member’s position is not
extended and the member is not at fault for the lack of extension, or the Managing Board member retires due to illness or age.
The provisions of the Austrian Employee and Employment Provisions Act (Mitarbeiter- und Selbstständigen-Vorsorgegesetz)
(“new severance”) apply to the contracts of the Managing Board members.
Only the contracts for Managing Board members who have been active in the Group for a long time provide for a severance
payment structured in accordance with the provisions of the Austrian Employee Act (Angestelltengesetz), in the version
prior to 2003, in combination with applicable industry-specific provisions. This allows these Managing Board members to
receive a severance payment equal to two to twelve months’ remuneration, depending on the period of service, with a
supplement of 50% if the member retires or leaves after a long-term illness. A Managing Board member who leaves by their
own choice, without agreement with the Company, before retirement is possible, or leaves due to their own fault, is not
entitled to severance payment.
Managing Board members are provided a company car for both business and personal use. The members of the Managing
Board received EUR 7,243,000 (EUR 6,279,000) from the Company during the reporting period for their services. The
members of the Managing Board received EUR 774,000 (EUR 719,000) from subsidiaries during the reporting period.
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Annual Financial Report 2021
Former members of the Managing Board received EUR 1,330,000 (EUR 1,149,000).
The Managing Board had eight members in the current financial year.
30. LEASES
The interest expenses for leases recognised in the reporting period are shown in Note 16. Financial result excl. result from
shares in at equity consolidated companies starting on page 120.
30.1. Lessees
The significant cash outflows for leases from lessees amount to a total of EUR 39,989,000 (EUR 48,800,000).
30.2. Lessors – operating leases
Maturity analysis of undiscounted lease payments 31.12.2021
31.12.2020
in EUR '000
up to one year 116,444
107,547
one to two years 108,133
102,266
two to three years 100,423
94,751
three to four years 91,348
88,510
four to five years 84,626
81,078
more than five years 2,412,971
2,088,127
Total 2,913,945
2,562,279
Lease income 2021
2020
in EUR '000
Fixed lease income 113,972
107,714
Lease income of variable lease payments 23,615
16,836
Total 137,587
124,550
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31. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE
AEGON Hungary
On 16 February 2022, VIG Holding and the Hungarian state-owned holding company Corvinus Nemzetközi Befektetési Zrt.
(“Corvinus”) reached agreement on the details of their cooperation, whose main features had been set down in the memo-
randum of understanding of 23 December 2021. Corvinus will receive a 45% interest in the Hungarian VIG companies under
the cooperation. The agreement was signed on 21 February 2022 in Budapest.
The Hungarian VIG companies will be held by the Hungarian holding company (VIG Magyarország Befektetési Zrt.) and two
Dutch holding companies (Aegon Hungary Holding B.V., Aegon Hungary Holding II B.V) in the future. Corvinus will acquire
a non-controlling 45% minority interest in each of these three holding companies. The total purchase price agreed for the
three 45% interests in the holding companies is around EUR 350 million.
Closing of the transaction is subject to the approvals required under supervisory and competition law and acquisition of the
Hungarian Aegon companies.
War situation in Ukraine
The current political situation in Ukraine is also creating uncertainty in financial markets, among other things. VIG Insurance
Group has an exposure of around EUR 211 million to Russian financial instruments. It was not possible to estimate the
degree to which the Group would be affected by the editorial deadline. Information on market risk and capital market
scenario analyses is available starting on page 74 of the risk report.
VIG Insurance Group is represented in the Ukrainian market by three insurance companies that held around EUR 148 million
in assets as of 31 December 2021. In the event of a complete loss of the Ukrainian operations, the VIG Insurance Group
result before taxes would be decreased by the net asset value after adjusting for currency effects. As of the balance sheet
date, the Ukrainian insurance companies had net assets of around EUR 55 million after adjusting for currency effects. As
of the editorial deadline, the Ukrainian insurance companies had been able to maintain limited operations in spite of the
current conditions. Due to the current volatile situation in Ukraine, VIG Insurance Group is regularly examining whether the
Ukrainian companies continue to satisfy the requirements as a going concern.
Change in the Austrian tax rate
The National Council passed the Austrian 2022 Tax Reform on 20 January 2022. As a result of the reform, the corporate
income tax rate will be reduced in stages from 25% to 24% in 2023 and to 23% in 2024. The effect this will have on the
calculation of deferred taxes cannot yet be reliably quantified.
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ADDITIONAL DISCLOSURES IN ACCORDANCE WITH THE AUSTRIAN INSURANCE SUPERVISION ACT (VAG)
PROFIT PARTICIPATION IN AUSTRIA
Life insurance
Under the FMA regulation of 6 October 2015 on profit participation in the life insurance sector (LV-GBV), the expenses for
profit-related premium refunds and policyholder profit participation plus any direct credits must be at least 85% of the
measurement basis.
Measurement basis within the meaning of § 4 (1) LV-GBV 2021
2020
in EUR '000
Net earned premiums – retention 750,055
817,649
Income and expenses from investments and interest expenses 295,145
309,369
Expenses for claims and insurance benefits – retention -900,283
-974,159
Acquisition and administrative expenses -121,544
-130,053
Other underwriting and non-underwriting income and expenses 2,347
3,362
Taxes on income -1,367
934
Total 24,353
27,102
Health insurance
According to § 1 of the FMA regulation on profit participation in the health insurance sector (KV-GBV) of 15 October 2015,
the regulation is applicable to policies whose actuarial bases were submitted after 30 June 2007 and whose terms provide
for profit participation. The expenses for profit-related premium refunds plus any direct credits have to be at least 85% of
the measurement basis for the health insurance policies concerned.
Measurement basis within the meaning of § 4 (1) LV-GBV 2021
2020
in EUR '0
00
Net earned premiums – retention 8,536
8,482
Income and expenses from investments and interest expenses 1,037
806
Expenses for claims and insurance benefits – retention -7,440
-8,583
Acquisition and administrative expenses -1,211
-1,026
Other underwriting and non-underwriting income and expenses 5
19
Taxes on income -196
-97
Total 731
-399
KEY FIGURES PER BALANCE SHEET UNIT
2021 2020
Property/
Casualty
Life
Health
Total
Property/
Casualty
Life
Health
Total
in %
Cost ratio 32.67
20.49
16.74
27.37
32.18
18.59
16.27
26.25
Claims ratio 61.48
62.84
Combined ratio 94.15
95.02
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PREMIUMS PER BALANCE SHEET UNIT (INCL. CONSOLIDATION EFFECTS)
Property and Casualty insurance
Premiums written – gross 2021
2020
in EUR '000
Direct business 6,458,724
6,033,384
Casualty insurance 422,750
432,980
Health insurance 130,077
120,115
Motor own-damage insurance (Casco) 1,402,153
1,289,371
Rail vehicle own-damage 4,202
3,333
Aircraft own-damage insurance 5,904
6,070
Sea, lake and river shipping own-damage insurance 13,587
13,079
Transport insurance 65,311
56,919
Fire and natural hazards insurance 1,240,890
1,136,903
Other property 650,121
617,018
Third party liability insurance for self-propelled land vehicles 1,612,266
1,506,560
Carrier insurance 26,631
23,734
Aircraft liability insurance 6,370
5,926
Sea, lake and river shipping liability insurance 5,082
3,942
General liability insurance 560,306
516,297
Credit insurance 7,820
4,255
Guarantee insurance 44,959
48,264
Insurance for miscellaneous financial losses 114,500
105,297
Legal expenses insurance 62,231
61,377
Assistance insurance, travel health insurance 83,564
81,944
Indirect business 424,815
361,477
Marine, aviation and transport insurance 21,136
15,900
Other insurance 375,278
317,099
Health insurance 28,401
28,478
Total 6,883,539
6,394,861
No net earned premiums from indirect property and casualty insurance business were deferred one year before being
recognised in the income statement.
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Annual Financial Report 2021
Life insurance
Premiums written – gross 2021
2020
in EUR '000
Regular premium - direct business 2,643,571
2,575,974
Single-premium - direct business 865,034
880,005
Direct business 3,508,605
3,455,979
thereof policies with profit participation 1,415,337
1,402,808
thereof policies without profit participation 576,352
473,434
thereof unit-linked life insurance portfolio 1,514,933
1,560,736
thereof index-linked life insurance portfolio 1,983
19,001
Indirect business 26,003
23,752
Total 3,534,608
3,479,731
Financial instruments for unit- and index-linked life insurance are shown in the respective separate financial statements. Of the
EUR 460,000 (EUR 384,000) in net earned premiums from indirect life insurance business, EUR 424,000 (EUR 345,000) was
deferred for one year before being shown in the income statement.
Health insurance
Premiums written – gross 2021
2020
in EUR '000
Direct business 584,419
553,862
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Transparency and stakeholder trust are important to us.
Observance of and compliance with the provisions of the
Austrian Code of Corporate Governance therefore play an
important role.
The Austrian Code of Corporate Governance was intro-
duced in 2002 and is regularly updated according to leg-
islation and current trends. It is the standard for proper cor-
porate governance and control in Austria. Provisions of the
Code contribute to strengthening the trust in the Austrian
capital market. The reports that companies are required to
publish on compliance with these provisions require a high
level of transparency.
VIG Holding is committed to application and compliance with
the January 2021 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
https://vig.com/corporate-governance-vig and the website
of the Austrian Working Group for Corporate Governance
at www.corporate-governance.at.
VIG Holding sees corporate governance as a continuously
changing process that responds to new conditions and cur-
rent trends for the benefit of the Group and its stakeholders.
The goal of all corporate governance measures is to ensure
responsible corporate management aimed at long-term growth
while simultaneously maintaining effective corporate control.
The Managing Board, Supervisory Board and employees
consider observance of and compliance with the rules of
the Austrian Code of Corporate Governance to be highly
important for the practical implementation of corporate gov-
ernance. All information concerning their composition and
work procedures 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 recommen-
dations 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 2021, 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 around 50 insurance companies 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 re-
quirements.
The Group’s scope of consolidation also includes capital mar-
ket-oriented subsidiaries that are required by the legal systems
applicable to them to prepare and publish a corporate
governance report. These include: Ray Sigorta (Turkey) and
Makedonija Osiguruvanje (North Macedonia). The corporate
governance reports are available on the respective company
websites: https://www.raysigorta.com.tr/en/about-us/investor-
relations, https://www.insumak.mk/za-nas/finansiski-izveshtai/
(as an integral part of the annual report). Reference is made to
the information in this regard.
The shareholder structure of VIG Holding can be viewed at
the following link: www.vig.com/shareholder-structure.
MEMBERS OF THE MANAGING BOARD AND THEIR
R
ESPONSIBILITIES
The VIG Holding Managing Board had the following eig
ht
members as of 31 December 2021: Elisabeth Stadler
(General Manager (CEO), Chairwoman of the Managing
Board), Hartwig Löger (Deputy General Manager, Deputy
Chairman of the Managing Board), Liane Hirner (CFRO),
Peter Höfinger, Gerhard Lahner (COO), Gábor Lehel (CIO),
Harald Riener and Peter Thirring (CTO).
Corporate governance report
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Annual Financial Report 2021
Further information on the members of the Managing Board, including their employment history, is presented below.
Elisabeth Stadler
General Manager (CEO),
Chairwoman of the Managing Board
Year of birth: 1961
Date first appointed: 1 January 2016
End of current term of office:
30
June 2023
Elisabeth Stadler
studied actuarial mathematics at the Vienna Technical University and
began her career in the Austrian insurance industry as a Managing Board Member and
Chairwoman. In May 2014, she was awarded the professional title of professor by Federal
Minister Gabriele Heinisch-Hosek for her merits for the insurance industry. She held the
position of General Manager at Donau Versicherung from September 2014 to March 2016,
and has been CEO of VIG Holding since 2016.
Areas of responsibility:
Management of the VIG Group, Strategy, Bancassurance and
International Partnerships, Communications & Marketing, European Affairs and ESG,
General Secretariat and Legal, Human Resources, Internal Audit, Sponsoring, Subsidiaries
and M&A, Central Functions
Country responsibilities:
Germany
Supervisory board positions or comparable positions in other Austrian and foreign
companies outside the Group:
OMV Aktiengesellschaft, voestalpine AG, Institute of
Science and Technology Austria, Austrian Red Cross
Elisabeth Stadler is also active in the Supervisory Boards of significant* Vienna Insurance
Group companies: Wiener Städtische (Austria), Donau Versicherung (Austria), Kooperativa
(Czech Republic), ČPP (Czech Republic), VIG Re (Czech Republic).
*All companies that contribute at least 2% of written premiums and at least 2% of profit before taxes are considered to be “significant”.
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Hartwig Löger
Deputy General Manager, Deputy
Chairman of the Managing Board
Year of birth: 1965
Date first
appointed: 1 January 2021
End of current term of office:
30 June 2023
Hartwig Löger
began his career in the insurance industry in the brokerage business in
1985. After completing his studies in insurance management at the Vienna University of
Economics and Business, he joined Allianz as sales manager in Styria in 1989. From 1997
to 2002, he was head of sales at Donau Versicherung. This was followed by a number of
senior management positions in the UNIQA Group, most recently as CEO of UNIQA Öster-
reich AG until the end of November 2017. Hartwig Löger was the Minister of Finance for
Austria from December 2017 to June 2019. He worked for VIG Insurance Group under an
advisory agreement with Wiener Städtische Versicherungsverein, the principal shareholder
of VIG Holding, from July 2019 to December 2020.
Areas of responsibility
:
Planning and Controlling, Strategy and Development
Country responsibilities:
Austria, Slovakia, Czech Republic, Hungary
Hartwig Löger is also active in the Supervisory Boards of significant* VIG Group companies:
Wiener Städtische (Austria), Donau Versicherung (Austria). Kooperativa (Czech Republic),
ČPP (Czech Republic), Kooperativa (Slovakia)
Liane Hirner, CFRO
Year of birth:
1968
Date first appointed: 1 February 2018
End of current term of office:
31 January 2023
Liane Hirner
studied business administration in Graz. Before joining VIG Insurance Group,
she worked at PwC Austria’s audit department where she started in 1993, and when she
left, Liane Hirner was partner in the insurance area. In addition to her work as an auditor,
Liane Hirner has also been involved in many professional associations, such as the IFRS
Working Group of the Austrian Insurance Association and the Insurance Working Party of
Accountancy Europe in Brussels. Liane Hirner was appointed to the VIG Holding Managing
Board on 1 February 2018. She assumed the position of Chief financial officer on 1 July 2018.
In 2019, EIOPA appointed Liane Hirner as a new member of the Insurance & Reinsurance
Stakeholder Group (IRSG).
Areas of responsibility:
Asset Risk Management, Digitalisation, Finance and Risk, Enter-
prise Risk Management, Finance Department, Investor Relations
Country responsibilities:
Liechtenstein
Supervisory board positions or comparable positions in other Austrian and foreign
companies outside the Group: Autoneum Holding AG
,
Winterthur, Switzerland
Liane Hirner is also active in the Supervisory Boards of significant* VIG Group companies:
Donau Versicherung (Austria)
*All companies that contribute at least 2% of written premiums and at least 2% of profit before taxes are considered to be “significant”.
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Annual Financial Report 2021
Peter Höfinger
Year of birth: 1971
Date first appointed: 1 January 2009
End of current term of office:
30
June 2023
Peter Höfinger
studied law at the University of Vienna and University of Louvain-la-Neuve
(Belgium). Peter Höfinger has been a member of the VIG Holding Managing Board since
1 January 2009. Prior to that, he was a director of the Managing Board at Donau Versi-
cherung, responsible for sales and marketing. He joined this company in 2003. Previously,
he held positions as managing board chairman and managing board member outside the
Group in Hungary, the Czech Republic and Poland.
Areas of responsibility:
Corporate Business, Reinsurance
Country responsibilities:
Albania, Bosnia-Herzegovina, Bulgaria, Kosovo, Croatia, Moldova,
Montenegro, North Macedonia, Romania, Serbia
Peter Höfinger is also active in the Supervisory Boards of significant* Vienna Insurance Group
companies: VIG Re (Czech Republic).
Gerhard Lahner, COO
Year of birth: 1977
Date first appointed: 1 January 2020
End of current term of office:
30
June 2023
Gerhard Lahner
studied business administration at the Vienna University of Economics and
Business and has held a variety of positions for VIG Insurance Group since 2002. He was
a member of the Managing Boards of Austrian insurance companies Donau Versicherung
and Wiener Städtische and Czech companies Kooperativa and ČPP. Gerhard Lahner was
also a substitute member of the VIG Holding Managing Board from 1 January 2019 to
31 December 2019.
Areas of responsibility
: Asset Management (incl. Real Estate), Holding IT, Process- &
Project Management, Treasury incl. Asset Liability Management, VIG Corporate IT
Country responsibilities:
Georgia
Supervisory board positions or comparable positions in other Austrian and foreign
companies outside the Group:
Wien 3420 Aspern Development AG, Wiener Börse AG,
Aktienforum
Gerhard Lahner is also active in the Supervisory Boards of significant* Vienna Insurance
Group companies: Kooperativa (Czech Republic), ČPP (Czech Republic), VIG Re (Czech
Republic).
*All companies that contribute at least 2% of written premiums and at least 2% of profit before taxes are considered to be “significant”.
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Gábor Lehel, CIO
Year of birth: 1977
Date first appointed: 1 January 2020
End of current term of office:
30
June 2023
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 Con-
trolling 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 Managing
Board of VIG Holding.
Areas of responsibility
:
Innovation
Country responsibilities
: Belarus
Harald Riener
Year of birth: 1969
Date first appointed: 1 January 2020
End of current term of office:
30 June 2023
Harald Riener
studied social and economic sciences at the Vienna University of Economics
and Business and joined the 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 be-
came 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 Ver-
sicherung where he was responsible for distribution and marketing.
Areas of responsibility
:
Assistance, Customer Experience, Tool Box Sales
Country responsibilities
: Estonia, Latvia, Lithuania, Poland, Ukraine
Supervisory board positions or comparable positions in other Austrian and foreign
companies outside the Group:
VIG/C-QUADRAT
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Annual Financial Report 2021
Peter Thirring, CTO
Year of birth: 1957
Date first appointed: 1 July 2018
End of current term of office:
30 June 2023
Peter Thirring
studied law at the University of Vienna. He has used his more than 30 years
of insurance experience in the Generali insurance group. He was General Manager of Donau
Versicherung from March 2016 to the end of June 2018. Peter Thirring was appointed to
the VIG Holding Managing Board on 1 July 2018.
Areas of responsibility:
Actuarial Department, Active Reinsurance, Anti Money Laundering,
Compliance, Insurance Life/Non-Life Retail
Country responsibilities:
Turkey
Peter Thirring is also active in the Supervisory Boards of significant* Vienna Insurance
Group companies: Kooperativa (Slovakia), Donau Versicherung (Austria), Wiener
Städtische (Austria), VIG Re (Czech Republic).
*All companies that contribute at least 2% of written premiums and at least 2% of profit before taxes are considered to be “significant”.
The curriculum vitae of the members of the Managing Board are available on the website at www.vig.com/management.
MEMBERS OF THE SUPERVISORY BOARD
The Supervisory Board had the following twelve members
as of 31 December 2021:
Günter Geyer
Chairman
Year of birth: 1943
Date first appointed: 2014
End of current term of office: 2024
Günter Geyer joined Wiener Städtische in 1974 and was
appointed to the Managing Board in 1988. In 2001, he be-
came General Manager and Chairman of the Managing
Board of Wiener Städtische. The Group’s entry into the CEE
market, with the establishment of the Kooperativa insur-
ance companies in Bratislava and Prague and expansion
into other CEE countries to become a major international
insurance group, began under his leadership. Günter Geyer
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 Man-
aging Board of VIG Holding 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 Chairman
of the Managing Board of Wiener Städtische Wechselseitiger
Versicherungsverein until the end of 2020. He has been
Chairman of the Supervisory Board of Wiener Städtische
Wechselseitiger Versicherungsverein since January 2021.
Rudolf Ertl
1
st
Deputy Chairman
Year of birth: 1946
Date first appointed: 2014
End of current term of office: 2024
Rudolf Ertl is Doctor of Laws and has been with the Group
since 1972. He was a Member of the Managing Board of
Wiener Städtische until the end of 2008 and a Member of
the Managing Board of Donau Versicherung until June 2009.
He was a Member of the Managing Board of Wiener Städ-
tische Wechselseitiger Versicherungsverein until the end of
2020 and has been a Member of the Supervisory Board of
Wiener Städtische Wechselseitiger Versicherungsverein
since January 2021. The insurance expertise and Group ex-
perience he has gained over many years, and his knowledge
of the CEE region make Rudolf Ertl a major asset to the
Company as 1
st
Deputy Chairman of the Supervisory Board.
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Robert Lasshofer
2
st
Deputy Chairman
Year of birth: 1957
Date first appointed: 2021
End of current term of office: 2024
Robert Lasshofer has decades of top experience in the
insurance industry and has been the General Manager and
Chairman of the Managing Board of Wiener Städtische
Wechselseitiger Versicherungsverein since 2021. He was
General Manager and Chairman of the Managing Board of
Wiener Städtische until the end of 2020. He has a degree
in economics and is acting president of the Austrian
Insurance Association (VVO).
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
Services 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
telecommunications sector in Central and Eastern Europe.
She is currently head of Internal Audit and Risk Manage-
ment for the Hungarian Telekom subsidiary Magyar Telekom
Group. At T-Mobile Austria, she was the head of Internal
Audit, Risk Management and Internal Controls. She pre-
viously 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 telecom-
munications 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
economics. He joined the Steiermärkische Bank und Spar-
kassen 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.
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 advisor in the EU Economic and Social
Committee in Brussels, among other things. He studied at
the University of Economics in Bratislava and received a
Ph.D. degree in the area of East-West economic relations
and an honorary doctorate from the University of Eco-
nomics in Bratislava. In addition to numerous other awards,
he received the Grand Decoration of Honour in Gold for
Services Rendered to the Republic of Austria in 2013 from
Heinz Fischer, the President of Austria at that time.
Heinz Öhler
Year of birth: 1945
Date first appointed: 2002
End of current term of office: 2024
Heinz Öhler joined the Tiroler Gebietskrankenkasse in 1970,
where he initially held a position as head of the Finance De-
partment and later held an executive position until 2011. In
this position he managed country-wide projects and repre-
sented regional health insurance funds in a variety of minis-
terial committees, among other things. In March 2007, he
was awarded the Grand Decoration of Honour in Gold for
Services to the Republic of Austria for his work related to
Austrian social security. He has held many positions in the
sports world, including being appointed as a Member of the
Tyrolean State Sports Council in November 2016. Heinz
Öhler was elected Chairman of the Supervisory Board of
Alpenländische Gemeinnützige WohnbauGmbH, Innsbruck,
in June 2021.
156
Annual Financial Report 2021
Georg Riedl
Year of birth: 1959
Date first appointed: 2014
End of current term of office: 2024
After completing his legal studies at the University of Vienna,
Georg Riedl has worked as an independent lawyer since
1991. His areas of expertise include company and tax law,
mergers & acquisitions, as well as private foundation law
and contract law, at which his activities cover national and
international transactions. George Riedl has been a Mem-
ber of the Managing Board of Wiener Städtische Wechsel-
seitiger Versicherungsverein since July 2021.
Gabriele Semmelrock-Werzer
Year of birth: 1958
Date first appointed: 2017
End of current term of office: 2024
After holding positions at the Austrian branches of Chase
Manhattan Bank AG and Crèdit Lyonnais AG, Gabriele
Semmelrock-Werzer worked for Erste Group Bank AG in a
variety of areas starting in 1995. She headed the Group Investor
Relations department from 1999 to 2010, and in addition to
international communications also actively assisted the expan-
sion of the Erste Group into the CEE region and spent time in
Prague and Bucharest. Since 2011, she has been Chairwoman
of the Managing Board of Kärntner Sparkasse AG, which also
holds a 70% interest in 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 com-
munications for technology and industrial companies (e.g.
Siemens IT Solutions and Services Slovakia, Siemens s.r.o.
Slovakia, Siemens AG Österreich, Medirex a.s.). Katarína
Slezáková is currently the Head of Marketing for CzechToll
and SkyToll, two companies in the Czech Republic and
Slovakia that are leaders in the area of intelligent transport
information systems.
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 Interna-
tional 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 Financial
Markets divisions at the National Bank of Austria. From 2003
to 2011, she was a member of the Executive Board of the
European Central Bank.
The curriculum vitae of the members of the Supervisory Board
are available on the website at www.vig.com/supervisory-
board.
Changes during the reporting year
Zsuzsanna Eifert and Robert Lasshofer were elected as
new members of the Supervisory Board at the Annual
General Meeting on 21 May 2021. Their election became
effective upon entry of the amendment to the articles of as-
sociation in the commercial register on 15 July 2021.
In 2021, the Supervisory Board elected Robert Lasshofer
as 2
nd
Deputy Chairman of the Supervisory Board effective
at the end of the constitutive meeting of the Supervisory
Board on 6 September 2021.
SUPERVISORY BOARD INDEPENDENCE
In accordance with Rule 53 of the Austrian Code of Corpo-
rate Governance, the Supervisory Board of VIG Holding has
established the following criteria defining independence:
• The Supervisory Board Member has not been a Member of
the Managing Board or a senior manager of the 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
Super-visory 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
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
157
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 own-
ership 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 in-
dependent if at least 50% of the members elected by the
Annual General Meeting satisfy the criteria above for the in-
dependence of a Supervisory Board Member.
Each Member of the Supervisory Board has declared
whether they can be considered independent based on the
criteria specified by the Supervisory Board. Peter Mihók and
Robert Lassofer have each stated that they are not indep-
endent based on the independence criteria specified by the
Supervisory Board. All other Supervisory Board Members
were independent based on the criteria indicated.
No Supervisory Board Member holds more than 10% of the
Company’s shares.
The following Supervisory Board Members exercised super-
visory mandates or comparable positions in other Austrian
or foreign listed companies as of 31 December 2021:
Georg Riedl
AT & S Austria Technologie & Systemtechnik Aktiengesell-
schaft
Robert Lasshofer
AT & S Austria Technologie & Systemtechnik Aktiengesell-
schaft
Gertrude Tumpel-Gugerell
AT & S Austria Technologie & Systemtechnik Aktiengesell-
schaft
Commerzbank AG
OMV Aktiengesellschaft
PROCEDURES FOLLOWED BY THE MANAGING BOARD AND BY
THE SUPERVISORY BOARD AND ITS COMMITTEES
Managing Board
T
he 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 each
week or every two weeks) to discuss current business de-
velopments and makes the necessary decisions and reso-
lutions during these meetings. The Managing Board Mem-
bers continuously exchange information with each other
and the heads of various departments.
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 2021 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
activities of the Managing Board in terms of managing and
monitoring the Group. Detailed presentations and discus-
sions during meetings of the Supervisory Board and its
committees 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),
158
Annual Financial Report 2021
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
directly 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
reports are discussed with the audit managers both in the
Audit Committee and in the entire Supervisory Board. The
Audit Committee examined the Solvency and Financial
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
annual audit plan to the Audit Committee for approval. The
Managing Board explains the organisation and effective-
ness of the internal control system, internal audit and the
risk management system to the Audit Committee at least
once a year, and provides the Audit Committee with a writ-
ten report on this subject so that it can confirm the efficiency
of the systems. The Audit Committee also examines the
report and assessment of the functioning of the risk man-
agement system prepared by the (consolidated) financial
statements auditor and reports its findings to the Super-
visory Board.
The Audit Committee also dealt with the VIG Holding and
VIG Group ORSA reports and the IT security report in 2021
and reported on them to the Supervisory Board. The Audit
Committee and Supervisory Board as a whole also received
the 2021 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 Super-
visory Board discusses those.
When preparing the proposal for the Annual General
Meeting regarding the election of a new Supervisory Board
Member, the Supervisory Board takes into account the
professional and personal requirements provided for by law
and the 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 Gover-
nance are fully satisfied when preparing the proposal re-
garding the election of the (consolidated) financial state-
ments auditor for the Annual General Meeting. As a public-
interest entity, the special additional rules for external and
internal rotation applicable to insurance companies and the
special tendering process are observed. In addition, after
the audit of the consolidated financial statements has been
completed, the Supervisory Board is provided with a list
showing the total audit expenses of all Group companies.
This list provides a separate breakdown of expenses re-
lating to the consolidated financial statements auditor and
the members of the network to which the consolidated fin-
ancial statements auditor pertains. The same goes for other
financial statements auditors who work for the Group.
The Supervisory Board established five committees to
increase its efficiency and to address complex matters:
Committee for Urgent Matters (Working Committee), Audit
Committee (Accounts Committee), Committee for Man-
aging Board Matters (Personnel Committee), Strategy Com-
mittee and Nomination Committee.
The Supervisory Board also dealt with IT security issues in
financial year 2021.
The Managing Board and Supervisory Board prepared a re-
muneration report for financial year 2021.
In 2021, the Supervisory Board appointed Hartwig Löger as
Deputy Chairman of the Managing Board effective 15 Sep-
tember 2021.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
159
The Supervisory Board also dealt with important sustain-
ability issues. Sustainability – such as the EU requirements
for sustainable finance or an update on dealing with sus-
tainability risks – was regularly discussed in Supervisory
Board meetings during the reporting period.
SUPERVISORY BOARD COMMITTEES
COMMITTEE FOR URGENT MATTERS (WORKING COMMITTEE)
The Committee for Urgent Matters (Working Committee)
decides on matters that require approval of the Supervisory
Board, but cannot be deferred to the next ordinary Super-
visory Board meeting because of particular urgency.
Günter Geyer (Chairman)
Substitute: Gertrude Tumpel-Gugerell
Rudolf Ertl
Substitute: Martina Dobringer
Robert Lasshofer
Substitute: Georg Riedl
AUDIT COMMITTEE (ACCOUNTS COMMITTEE)
The Audit Committee (Accounts Committee) is responsible
for the duties assigned to it by law and is, in particular, re-
sponsible for the duties assigned in § 92 (4a)(4) of the Aus-
trian Stock Corporation Act (AktG), § 123 (9) of the Austrian
Insurance Supervision Act (VAG) and Regulation (EU) No.
537/2014, namely:
1. to monitor the accounting process and provide recom-
mendations or suggestions to ensure its reliability;
2. to monitor the effectiveness of the Company’s internal
control system and the internal audit function and risk
management system;
3. to monitor the audit of the financial statements and con-
solidated financial statements taking into account find-
ings and conclusions in reports published by the super-
visory authority for financial statement auditors in accord-
ance with § 4 (2)(12) of the Austrian Auditor Supervision
Act (APAG);
4. to check and monitor the independence of the financial
statement auditor (consolidated financial statement auditor),
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;
6. to audit the annual financial statements and prepare their
approval, examine the proposal for appropriation of prof-
its, the management report, the solvency and financial
condition report and corporate governance report, and
present a report on the results of the audit to the Super-
visory Board;
7. to audit the consolidated financial statements and Group
management report, the solvency and financial condition
report at Group level and the corporate governance 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 statement auditor) taking
into account the appropriateness of the fees in accord-
ance with Art. 4 of Regulation (EU) No. 537/2014 and the
rotation periods in Art. 17 of Regulation (EU) No. 537/2014,
and recommend appointment of a financial statements
auditor (consolidated financial statements auditor) to the
Supervisory Board in accordance with Art. 16 of Regu-
lation (EU) No. 537/2014.
Furthermore, in a meeting (another meeting, in addition to the
meeting required by law), the Audit Committee (Accounts
Committee) specifies how the two-way communication be-
tween the (consolidated) financial statements auditor and
the Audit Committee (Accounts Committee) has to take
place, while making provision for exchanges to take place
between the Audit Committee (Accounts Committee) and
the (consolidated) financial statements auditor without the
presence of the Managing Board.
160
Annual Financial Report 2021
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
Robert Lasshofer
Peter Mihók
Katarína Slezáková
If a member is unable to attend, Gabriele Semmelrock-Werzer
will attend the meeting, and if she is also unable to attend,
Heinz Öhler will attend. If Gertrude Tumpel-Gugerell is unable
to attend, the meeting will be chaired by Martina Dobringer.
COMMITTEE FOR MANAGING BOARD MATTERS
(PERSONNEL COMMITTEE)
The Committee for Managing Board Matters (Personnel
Committee) deals with personnel matters of the Managing
Board. The Committee for Managing Board Matters there-
fore decides on employment contract terms with Members
of the Managing Board and their remuneration and exam-
ines remuneration policies at regular intervals.
Günter Geyer (Chairman)
Rudolf Ertl
Georg Riedl
Substitute in the event that a member is unable to attend:
Robert Lasshofer
STRATEGY COMMITTEE
The Strategy Committee cooperates with the Managing
Board and, when appropriate, with experts that it consults
in order to prepare fundamental decisions that will subse-
quently be decided upon by the entire Supervisory Board.
Günter Geyer (Chairman)
Substitute: Gertrude Tumpel-Gugerell
Zsuzsanna Eifert
Substitute: Gabriele Semmelrock-Werzer
Rudolf Ertl
Substitute: Martina Dobringer
Robert Lasshofer
Substitute: Georg Riedl
Peter Mihók
Substitute: Katarína Slezáková
NOMINATION COMMITTEE
The Nomination Committee submits proposals to the
Supervisory Board for filling positions that become available
on the Managing Board and handles issues of successor
planning.
Günter Geyer (Chairman)
Martina Dobringer
Rudolf Ertl
Robert Lasshofer
Substitute in the event that a member is unable to attend:
Georg Riedl
The Supervisory Board gave its consent to VIG Holding and
other companies in VIG Insurance Group that allowed them
to use the legal services of Georg Riedl, Supervisory Board
Member, and engage him or his law firm to act as a repre-
sentative and provide advisory services on a project-related
basis under normal market terms. Georg Riedl did not
provide any advisory services as a lawyer for VIG Holding or
any VIG Group company in financial year 2021. Supervisory
Board Members Gerhard Fabisch and Gabriele Semmelrock-
Werzer are members of the managing boards of companies
with which distribution agreements were concluded under
normal market and industry terms and conditions. The
Company did not enter into any other agreements with
Supervisory Board Members in 2021 that would have re-
quired the approval of the Supervisory Board.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
161
NUMBER OF MEETINGS OF THE SUPERVISORY BOARD AND ITS
COMMITTEES IN THE FINANCIAL YEAR 2021
One Annual General Meeting and five Supervisory Board
meetings distributed across the financial year were held in
2021. Five meetings of the Audit Committee (Accounts
Committee) were also held. Some of the meetings were
held without the physical presence of the participants in ac-
cordance with § 1 of the Austrian Corporate COVID-19 Act
(COVID-19-GesG). The Annual General Meeting was held
as a virtual Annual General Meeting on the basis of § 1 (2)
COVID-19-GesG and the COVID-19-GesV. The financial
statements and consolidated financial statements auditor,
KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerbera-
tungsgesellschaft (KPMG), attended four Audit Committee
meetings and three Supervisory Board meetings in 2021,
including the Supervisory Board meeting that addressed
the audit of the 2020 annual financial statements and the
2020 consolidated financial statements as well as formal
approval of the 2020 annual financial statements, and also
attended the Annual General Meeting. Three meetings of
the Committee for Managing Board Matters (Personnel
Committee) were held in 2021. The Committee for Urgent
Matters (Working Committee) held one meeting in 2021.
The Strategy Committee and Nomination Committee did
not meet in 2021. Strategic matters were handled by the
Supervisory Board as a whole.
No Member of the Supervisory Board attended less than
half of the Supervisory Board meetings.
The following table shows the attendance of ordinary mem-
bers at meetings, taking into account attendance by their
substitutes:
MEETING ATTENDANCE BY MEMBERS OF THE SUPERVISORY BOARD IN FINANCIAL YEAR 2021
Name Supervisory
Board
Audit
Committee
2
Working
Committee
2
Strategy
Committee
2
Personnel
Committee
2
Nomination
Committee
2
5 meetings
5 meetings
1 meeting
no meeting
3 meetings
no meeting
Günter Geyer (C) 5/5 5/5 1/1 3/3
Rudolf Ertl (1
st
DC) 5/5 5/5 0/1 3/3
Robert Lasshofer (2
nd
DC)
1
3/3 3/3
Martina Dobringer 5/5 5/5 1/1
Zsuzsanna Eifert
1
3/3 3/3
Gerhard Fabisch 4/5
Peter Mihók 5/5 5/5
Heinz Öhler 5/5
Georg Riedl 5/5 2/2 1/1 3/3
Gabriele Semmelrock-Werzer 3/5
Katarina Slezáková 5/5 5/5
Gertrude Tumpel-Gugerell 5/5 5/5
1
Elected to the Supervisory Board in the Annual General Meeting of 21 May 2021. Appointment effective from: 15 July 2021.
2
New composition of committees or new deputy arrangements in the event of impediment from 6 September 2021 onwards
162
Annual Financial Report 2021
DIVERSITY CONCEPT
With around 50 insurance companies and more than 25,000
employees in Austria and Central and Eastern Europe, VIG
Insurance Group combines many countries, languages and
cultural backgrounds. Diversity is a core value in the VIG
mission statement and a key priority in its HR strategy.
VIG Insurance Group follows a bottom-up approach with
respect to diversity management for the Company’s boards.
By applying diversity management to all employees, the VIG
Insurance Group expects to generate corresponding diver-
sity in the candidate pool for internal successor planning in
the long term.
For VIG Insurance Group, diversity reflects both the
similarities and the differences it encounters in the Group,
its markets and its partners as well as customers. Diversity
management is based on genuine appreciation and open
acceptance of diversity, and makes conscious use of this
diversity. VIG companies include this understanding of
diversity in the VIG Code of Business Ethics:
“We do not
tolerate any kind of discrimination. We are committed to
promoting equal opportunities with regard to the employ-
ment and promotion of staff, regardless of their faith, religion,
gender, beliefs, ethnicity, nationality, sexual orientation, age,
skin colour, disability or civil status.”
Group and VIG Holding level
The diversity concept focuses on the criteria of gender, gen-
erations and internationality at the VIG Holding level, and
refined and developed measures for the following criteria:
•
Gender
: Ensure equal gender treatment in all areas
(career and development options, benefits and income,
etc.)
•
Generations:
Use mixed-age teams and take into ac-
count 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 inter-
nal Group job market and ensuring an appropriate mix
of people from different countries within VIG Holding
The criteria of gender, generations and internationality are
also taken into account when new Supervisory Board Mem-
bers are proposed for election at General Meetings. VIG In-
surance Group has relied on the concept of local entrepre-
neurship for decades, thereby also promoting a very inter-
nationally diverse “community” of Group Managing Board
Members and CEOs.
The topic of diversity is a key element in Group-wide man-
agement development training programmes, in terms of
content as well as the participants and lecturers.
Level of the VIG insurance companies
In accordance with the principle of local entrepreneurship, the
VIG insurance companies choose their own diversity priorities
and are independently responsible for their implementation.
Diversity Advisor
As Diversity Advisor, Angela Fleischlig-Tangl advises both
VIG Holding and local VIG companies on matters related to
diversity management.
MEASURES TO PROMOTE WOMEN IN MANAGING BOARD,
SUPERVISORY BOARD AND MANAGEMENT POSITIONS
Appreciation of diversity and, therefore, removing barriers in
women’s careers is one of the key elements of the HR strategy
at VIG Insurance Group. Gender is one of the three priorities of
the diversity concept at both the Group and VIG Holding level.
Nomination procedures for Group-wide training programmes
for management, high potentials and experts are also re-
quired to have as balanced a gender representation as pos-
sible, with the local human resources department bearing
ultimate responsibility.
Women Supervisory Board members
Women hold 24.1% of the positions in the Supervisory
Boards of the fully consolidated VIG insurance companies
in the Group (as at 31 December 2021) and 41.7% of the
positions in VIG Holding.
Women Managing Board members
Women hold 25.4% of the positions on the Managing
Boards of the fully consolidated VIG insurance companies
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
163
and 23.7% of the Chairpersons are women. Elisabeth
Stadler is the Chairwoman of the VIG Group.
Women in management positions
Including distribution, women hold 43.1% of the manage-
ment positions at the level directly below the managing
board of fully consolidated VIG insurance companies across
Europe (not including distribution: 48.3%).
GENERATIONS AND INTERNATIONALITY
The average age of all Managing Board Members of the fully
consolidated insurance companies is 50.3 years (as at 31
December 2021), and the average age of Supervisory
Board Members is 57.2 years.
22 different nationalities (based on citizenship) are repre-
sented in the managing boards of the fully consolidated VIG
insurance companies, and 19 different nationalities in the
supervisory boards. Further information is available in the
Employees section of the Sustainability Report.
EXTERNAL EVALUATION REPORT
C-Rule 62 of the Austrian Code of Corporate Governance
provides for voluntary external evaluation of compliance
with the C-Rules of the Code at least every three years. VIG
Holding performs these evaluations every three years. The
last evaluation was performed for the consolidated cor-
porate governance report for financial year 2020 and
concluded with a positive report. The next evaluation is
scheduled for financial year 2023.
Vienna, 16 March 2022
The Managing Board:
Elisabeth Stadler
General Manager (CEO),
Chairwoman of
the Managing Board
Hartwig Löger
Deputy General Manager, Deputy
Chairman of the Managing Board
Liane Hirner
CFRO, Member of
the Managing Board
Peter Höfinger
Member of
the Managing Board
Gerhard Lahner
COO, Member of
the Managing Board
Gábor Lehel
CIO, Member of
the Managing Board
Harald Riener
Member of
the Managing Board
Peter Thirring
CTO, Member of
the Managing Board
164
Annual Financial Report 2021
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 presenta-
tions 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.
In accordance with the Solvency II requirements, starting in
2016 non-financial aspects must be part of the perfor-
mance expectations for variable remuneration of Managing
Board Members. VIG Holding is committed to social re-
sponsibility and the importance of having employees drive
forward performance, innovation and expertise. Goal fulfil-
ment for Managing Board Members also depended on both
financial and non-financial criteria in the 2021 reporting year.
Detailed information on the principles underlying the remun-
eration system is available in the remuneration policy and
2021 remuneration report.
The Supervisory Board has formed five committees from its
Members.
Information on the responsibilities and composition of these
committees is available on the Company’s website and in
the 2021 consolidated corporate governance report.
One Annual General Meeting and five Supervisory Board
meetings distributed across the financial year were held in
2021. Five meetings of the Audit Committee (Accounts
Committee) were also held. Some of the meetings were held
without the physical presence of the participants in
accordance with § 1 of the Austrian Corporate COVID-19
Act (COVID-19-GesG). The Annual General Meeting was held
as a virtual Annual General Meeting on the basis of § 1 (2)
COVID-19-GesG and the COVID-19-GesV. The financial state-
ment and consolidated financial statement auditor, KPMG
Austria GmbH Wirtschaftsprüfungs- und Steuerberatungs-
gesellschaft, FN 269873y (KPMG), attended four Audit Com-
mittee meetings and three Supervisory Board meetings in
2021, including the Supervisory Board meeting that addressed
the audit of the 2020 annual financial statements and the 2020
consolidated financial statements as well as formal approval of
the 2020 annual financial statements, and also attended the
Annual General Meeting. KPMG also informed the Audit Com-
mittee about the planning and procedure used to audit the
financial statements and consolidated financial statements.
Three meetings of the Committee for Managing Board Matters
(Personnel Committee) were held in 2021. The Committee for
Urgent Matters (Working Committee) held one meeting. The
Strategy Committee and Nomination Committee did not meet
in 2021. Strategic matters were handled by the Supervisory
Board as a whole.
No agenda items were discussed in Supervisory Board
meetings in 2021 without the participation of members of
the Managing Board.
No Member of the Supervisory Board attended less than
half of the Supervisory Board meetings. Detailed infor-
mation on meeting attendance by Supervisory Board mem-
bers in financial year 2021 is available in the 2021 Corporate
Governance Report. In order to ensure the effectiveness
and efficiency of its activities and procedures, the Super-
visory Board performed a self-evaluation of its procedures.
The Supervisory Board’s evaluation of its activities found
that its organisational structure and procedures were satis-
factory 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.
Acting upon the proposal and motion of the Supervisory
Board, the general meeting of 25 September 2020 selected
KPMG to be the financial statements auditor and consoli-
dated financial statements auditor for financial year 2021,
and KPMG consequently performed these duties in finan-
cial year 2021.
Supervisory Board
report
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
165
The Audit Committee mainly dealt with the following topics in
2021:
During one meeting of the Audit Committee, the members
of the committee consulted with the (consolidated) financial
statements auditor on specification of two-way commu-
nications 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 pro-
cess and, based on the comprehensive information and
documents obtained by the Audit Committee during its re-
view, 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 suit-
able documents and supporting records submitted to the
Committee, particularly with respect to the appropriateness
of the fee and the additional services provided to the Com-
pany, was satisfied with the auditor’s independent status.
While reviewing and monitoring the independence of the
financial statements auditor and consolidated financial
statements auditor, the Audit Committee did not find any
circumstances that would raise doubts about its indep-
endence and impartiality.
The Audit Committee also dealt with the VIG Holding and
VIG Group ORSA reports and the IT security report in 2021
and reported on them to the Supervisory Board. The Audit
Committee monitored the effectiveness of the internal con-
trol system, internal audit and the risk management system
by obtaining descriptions of the processes and organisation
of these systems from the Managing Board, the (con-
solidated) financial statements auditor and the individuals
directly responsible for these areas and deemed them,
including the IT security measures, to be effective.
The Audit Committee reported on these monitoring activities
to the Supervisory Board and stated that no deficiencies had
been identified. The Supervisory Board was also given the
opportunity during Supervisory Board meetings to verify the
functional adequacy of the existing control and auditing
systems. In addition, the audit plan and the quarterly reports
prepared by the internal audit department were debated by
the Audit Committee and the Supervisory Board and
discussed with the head of the internal audit department
and the Group internal audit department.
The Audit Committee examined the Solvency and Financial
Condition Reports (SFCRs) at both the solo and Group
levels and reported its findings to the Supervisory Board.
No facts or circumstances were found that would have
provided grounds for objection.
In 2021, the Audit Committee dealt with the selection of the
financial statement and consolidated financial statement
auditor for financial year 2022 and also carried out a selec-
tion procedure for appointing the financial statement and
consolidated financial statement auditor for financial year
2023 and submitted a proposal to the Supervisory Board,
with a statement of reasons. 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 re-
ported to the Supervisory Board on the insights of these
evaluations and proposed to the Supervisory Board and
subsequently to the general meeting that KPMG be se-
lected as auditor of the financial statements and consoli-
dated financial statements.
The General Meeting selected KPMG as auditor of the fi-
nancial statements and consolidated financial statements
for 2022.
The Audit Committee also received the 2021 annual
financial statements, management report, 2021 consoli-
dated corporate governance report and 2021 sustainability
report (consolidated non-financial report) from the Man-
aging 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 Com-
pany during the course of this examination.
The Audit Committee also examined the 2021 consolidated
financial statements and Group management report. In ad-
166
Annual Financial Report 2021
dition, the auditor’s reports prepared by (consolidated)
financial statements auditor KPMG for the 2021 annual
financial statements and management report and the 2021
consolidated financial statements and Group management
report were reviewed by the Audit Committee and exam-
ined. 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 Super-
visory Board found no grounds for objection.
The (consolidated) financial statements auditor provided the
Audit Committee with an additional report in accordance with
Art. 11 of Regulation (EU) No. 537/2014 on specific require-
ments regarding statutory audit of public-interest entities 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 pro-
vided 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, along with an explanation of how the financial
statement audit had contributed to the reliability of the finan-
cial reporting and what role the Audit Committee had played.
The Supervisory Board also dealt with IT security issues in
financial year 2021.
The Managing Board and Supervisory Board prepared a
remuneration report for financial year 2021.
In 2021, the Supervisory Board appointed Hartwig Löger as
Deputy Chairman of the Managing Board effective 15 Sep-
tember 2021.
The Supervisory Board concurred with the Audit Com-
mittee’s proposal for the financial statement and consolidat-
ed financial statement auditor for 2023.
The 2021 annual financial statements together with the
management report and 2021 consolidated corporate
governance report, the 2021 consolidated financial state-
ments together with the Group management report, and
the Managing Board’s proposed appropriation of profits
were taken up and examined in detail by the Supervisory
Board. The proposed appropriation of profits was checked,
in particular, to ensure that it was reasonable when capital
requirements were taken into account. The proposal com-
plies with applicable legal requirements and proactively
considers the macroeconomic and financial situation and its
impact on the company’s solvency and financial position in
light of the COVID-19 pandemic. The proposal is in line with
the continuously pursued prudent and sustainable capital
planning to ensure a solid solvency and liquidity position in
the long term.
The Supervisory Board also dealt with important
sustainability issues. Sustainability – such as the EU require-
ments for sustainable finance or an update on dealing with
sustainability risks – was regularly discussed in Supervisory
Board meetings during the reporting period. The Super-
visory Board also received the 2021 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
2021 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 2021 annual
financial statements and management report and the 2021
consolidated financial statements and Group management
report were reviewed by the Supervisory Board and
examined. KPMG’s audit of the 2021 annual financial state-
ments and management report and the 2021 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 2021, and of
the results of operations of the Company for financial year
2021 in accordance with Austrian generally accepted
accounting principles. The management report is con-
sistent with the annual financial statements. The disclosures
pursuant to § 243a UGB (Austrian Commercial Code) are
appropriate. KPMG further determined that the
consolidated financial statements also comply with statu-
tory requirements and give a true and fair view of the net
assets and financial position of the Group as of 31 De-
cember 2021, and of the results of operations and cash
flows of the Group for financial year 2021 in accordance
with the IFRS as adopted by the EU and § 138 of the
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
167
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 2021 sus-
tainability report (consolidated non-financial report) and
determined in accordance with § 269 (3) UGB that the 2021
consolidated corporate governance report had been
prepared.
The final results of the review by the Supervisory Board also
provided no grounds for objection. The Supervisory Board
stated that it had nothing to add to the auditor’s reports for the
financial statements and consolidated financial statements.
After thorough examination, the Supervisory Board there-
fore adopted a unanimous resolution to approve the 2021
annual financial statements prepared by the Managing
Board, not to raise any objections to the management
report, the 2021 consolidated financial statements and
Group management report, the 2021 consolidated cor-
porate governance report and the 2021 sustainability report
(consolidated non-financial report) and to agree with the
Managing Board-proposed appropriation of profits.
The 2021 annual financial statements have therefore been
approved in accordance with § 96 (4) of the Austrian Stock
Corporation Act (AktG).
The Supervisory Board proposes to the General Meeting
that it approves the Managing Board’s proposed appro-
priation of profits and formally approves the actions of the
Managing Board and Supervisory Board.
Vienna, April 2022
The Supervisory Board:
Günter Geyer (Chairman)
168
Annual Financial Report 2021
DECLARATION BY THE MANAGING BOARD
We declare to the best of our knowledge that the consolidated financial statements prepared in accordance with applicable
accounting standards give a true and fair view of the Group’s net assets, financial position and results of operations, that
the Group management report presents the business development, result and position of the Group so as to give a true
and fair view of its net assets, financial position and results of operations, and that the Group management report provides
a description of the principal risks and uncertainties to which the Group is exposed.
The declaration for the annual financial statements of VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe is
issued in the Annual Report of this company.
The consolidated financial statements for financial year 2021 were approved for publication by a resolution of the Managing
Board on 16 March 2022.
Vienna, 16 March 2022
Elisabeth Stadler
General Manager, CEO,
Chairwoman of
the Managing Board
Hartwig Löger
Deputy General Manager,
Deputy Chairman
of the Managing Board
Liane Hirner
CFRO, Member of
the Managing Board
Peter Höfinger
Member of
the Managing Board
Gerhard Lahner
COO, Member of
the Managing Board
Gábor Lehel
CIO, Member of
the Managing Board
Harald Riener
Member of
the Managing Board
Peter Thirring
CTO, Member of
the Managing Board
Managing Board areas of responsibility:
Elisabeth Stadler:
Management of the VIG Group, Strategy, Bancassurance and International Partnerships, Communication & Marketing, European
Affairs and ESG, General Secretariat and Legal, Human Resources, Internal Audit, Sponsoring, Subsidiaries and M&A, Central
Functions; Country responsibilities: Germany
Hartwig Löger:
Planning and Controlling, Strategy and Development; Country responsibilities: Austria, Hungary, Slovakia, Czech Republic
Liane Hirner:
Asset Risk Management, Digitalisation, Finance and Risk, Enterprise Risk Management, Finance Department, Investor Relations;
Country responsibilities: Liechtenstein
Peter Höfinger:
Corporate Business, Reinsurance; Country responsibilities: Albania, Bosnia-Herzegovina, Bulgaria, Croatia, Kosovo, Moldova,
Montenegro, North Macedonia, Romania, Serbia
Gerhard Lahner:
Asset Management (incl. Real Estate), Holding IT, Process & Project Management, Treasury incl. Asset Liability Management, VIG
Corporate IT; Country responsibilities: Georgia
Gábor Lehel:
Innovation; Country responsibilities: Belarus
Harald Riener:
Assistance, Customer Experience, Tool Box Sales; Country responsibilities: Estonia, Latvia, Lithuania, Poland, Ukraine
Peter Thirring:
Actuarial Department, Active Reinsurance, Anti-Money Laundering, Compliance, Insurance Life/Non-Life Retail; Country
responsibilities: Turkey
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
169
REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
Audit Opinion
We have audited the consolidated financial statements of
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe,Vienna, Austria,
and its subsidiaries ("the Group"), which comprise the Consolidated Balance Sheet as at 31 December 2021, the
Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated Shareholders’
Equity, the Consolidated Cash Flow Statement for the year then ended, and the Notes to the Consolidated Financial
Statements.
In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position
of the Group as at 31 December 2021, and its consolidated financial performance and consolidated cash flows for the year
then ended in accordance with International Financial Reporting Standards (IFRSs) as adopted by the EU, the additional
requirements pursuant to Section 245a UGB (Austrian Commercial Code) as well as other legal or regulatory requirements.
Basis for our Opinion
We conducted our audit in accordance with the EU Regulation 537/2014 ("AP Regulation") and Austrian Standards on
Auditing. These standards require the audit to be conducted in accordance with International Standards on Auditing (ISAs).
Our responsibilities under those standards are further described in the "Auditor’s Responsibilities" section of our report. We
are independent of the audited Group in accordance with Austrian company law and professional regulations, and we have
fulfilled our other responsibilities under those relevant ethical requirements. We believe that the audit evidence we have
obtained up to the date of the auditor’s report is sufficient and appropriate to provide a basis for our audit opinion on this
date.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
consolidated financial statements. These matters were addressed in the context of our audit of the consolidated financial
statements as a whole, however, we do not provide a separate opinion thereon.
We have identified the following key audit matters:
• Recoverability of goodwill
• Liability Adequacy Test – “LAT”)
RECOVERABILITY OF GOODWILL
Refer to notes 1.1. Goodwill on page 92, Impairment of goodwill on page 40 and Intangible Assets (A) on page 42
Auditor’s
r
eport
170
Risk for the Consolidated Financial Statements
The recoverability of goodwill recognized in the Consolidated Financial Statements of the Vienna Insurance Group
amounting to EUR 1,260.3 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.
The impairment test of goodwill is complex and based on discretionary factors. Those factors include in particular the
expected future cash flows of the individual countries (taking into account the development of future premiums, budgeted
combined ratios and financial income), which are primarily based on past experience as well as on the management’s
assessment of the expected market environment on 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 procedu
res in connection with the recoverability of goodwill:
• We have assessed the appropriateness of key assumptions, of discretionary decisions and of the valuation method
applied for the impairment testing.
• We have reconciled the expected future cash flows used in the calculation with the strategic business planning
approved by the management.
• Furthermore, we have dealt with the key planning assumptions and reconciled the assumptions regarding the market
development with general and sector-specific market expectations.
• We have analysed the consistency of planning data using information from prior periods.
• Given that minor changes in the applied cost of capital rate significantly impact the recoverable amount of the cash
generating units, we have, together with our valuation specialists, assessed the determination of the applied cost of
capital rate and comprehended the derivation of the underlying parameters.
• By means of our own sensitivity analysis we have determined whether the tested book values are still sufficiently
covered by the recoverable amounts in case of possible changes in the assumptions within a realistic range.
• Additionally, we have assessed whether the disclosures in the notes with respect to the recoverability of goodwill are
appropriate.
LIABILITY ADEQUACY TEST – “LAT“
Refer to notes pages 51ff, 84 to 85
Risk for the Consolidated Financial Statements
With life and health insurance, Vienna Insurance Group holds a significant amount of long-term contracts for which
premiums have been calculated using a high discount rate. As these interest rates are also used to measure the liabilities
from insurance contracts, there is – due to the persistently low interest rates in the market – a risk that the insurance liabilities
are not adequately measured.
At each balance sheet date Vienna Insurance Group uses current estimates of future cash flows from insurance contracts
to determine whether the insurance liabilities are adequately accounted for in the balance sheet.
To ensure this, future cash flows from existing policies are calculated on a best estimate basis using actuarial methods. For
life and health insurance the cash flow model used for this purpose is also used to calculate the Market Consistent
Annual Financial Report 2021
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
171
Embedded Value (“MCEV”). The MCEV is determined according to the “Market Consistent Embedded Value Principles”
published by the CFO Forum in June 2008 and last amended in April 2016.
The performance of the liability adequacy test is complex, and its underlying assumptions are based on a large number of
estimates and discretionary factors.
Our Response
We involved our actuarial specialist as part of the
audit team and carried out the following main audit procedures in
connection with the liability adequacy test:
• We have examined the appropriateness of key assumptions and discretionary decisions as well as the calculation
models and methods applied.
• In order to assess the appropriateness of the assumptions and methods used, we gained an understanding of the
methodology in discussions with the actuaries of Vienna Insurance Group and analysed the assumptions used as well
as the resulting cash flows.
• In particular, we assessed whether the applied methodology was consistent with the “Market Consistent Embedded
Value Principles” published by the CFO Forum in June 2008 and last amended in April 2016.
• In addition, we assessed the appropriateness of the implementation of the methodology within the models, analysed
the consistency of assumptions used on the basis of information from prior periods, and examined the completeness of
the modeled portfolio.
• Furthermore, we critically dealt with the sensitivity analysis prepared by the company.
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.
172
Annual Financial Report 2021
Management is also responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting, unless management either intents to
liquidate the Group or to cease operations, or has no realistic alternative but to do so.
The audit committee is responsible for overseeing the Group’s financial reporting process.
Auditor’s Responsibilities
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free
from material misstatement – whether due to fraud or error – and to issue an auditor’s report that includes our audit opinion.
Reasonable assurance represents a high level of assurance, but provides no guarantee that an audit conducted in
accordance with the AP Regulation and Austrian Standards on Auditing (and therefore ISAs), will always detect a material
misstatement, if any. Misstatements may result from fraud or error and are considered material if, individually or in aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated
financial statements.
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.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
173
• We obtain sufficient appropriate audit evidence regarding the financial information of the entities and business activities
within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our audit opinion.
• We communicate with the audit committee regarding, amongst other matters, the planned scope and timing of our
audit as well as significant findings, including any significant deficiencies in internal control that we identify during our
audit.
• We communicate to the audit committee that we have complied with the relevant professional requirements in respect
of our independence, that we will report any relationships and other events that could reasonably affect our
independence and, where appropriate, the related safeguards.
• From the matters communicated with the audit committee, we determine those matters that were of most significance
in the audit i.e. key audit matters. We describe these key audit matters in our auditor’s report unless laws or other legal
regulations preclude public disclosure about the matter or when in very rare cases, we determine that a matter should
not be included in our audit report because the negative consequences of doing so would reasonably be expected to
outweigh the public benefits of such communication.
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
prepared in accordance with legal requirements. The disclosures pursuant to Section 243a UGB (Austrian Commercial
Code) are appropriate.
Statement
Based on our knowledge gained in the course of the audit of the consolidated financial statements and our understanding
of the Group and its environment, we did not note any material misstatements in the group management report.
Additional Information in accordance with Article 10 AP Regulation
We were elected as auditors at the Annual General Meeting on 25 September 2020 and were appointed by the supervisory
board on 22 October 2020 to audit the financial statements of Company for the financial year ending on 31 December
2021.
In addition, during the Annual General Meeting on 21 May 2021, we have been elected as auditors for the following financial
year and appointed by the supervisory board on 2 June 2021.
We have been auditors of the Company, without interruption, since the consolidated financial statements at 31 December
2013.
174
Annual Financial Report 2021
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.
Vienna, 16 März 2022
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.
G
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
175
Management
report
to th e Annual financial statements
in accordance with
the Austrian
Commercial Code (
UGB)
176
Annual Financial Report 2021
MORE INSURANCE WITH MORE RESPONSIBILITY
With around 50 companies in 30 countries, Vienna
Insurance Group is one of the leading insurance groups in
Central and Eastern Europe. Expanding the VIG Insurance
Group’s leading market position in the CEE region, creating
sustainable value and achieving its ESG-related objectives
continue to be important for the Group’s promise of “more
insurance with more responsibility”.
“Our focus is on Central and Eastern Europe, where we
offer custom-tailored products and services appropriate for
our customers’ needs. Our strategy aims to achieve
sustainable profitability and continuous earnings growth in
order to be a reliable and stable partner in times of dynamic
change.”
VIG Insurance Group’s more than 25,000 employees serve
over 22 million customers with the goal of achieving
sustainable profitable growth. It relies on diversity as a
success factor. The wealth of different languages, cultures
and entrepreneurial approaches ensures the greatest
possible proximity to customers and promotes innovation
and creativity.
ORGANISATION AND OBJECTIVES
VIG Holding uses a number of control units, e.g. Risk
Management, Asset Management, Planning and Con-
trolling, and Strategy, to maintain close contact with the
Group companies and acts as an interface and promoter
for the implementation of local entrepreneurship. The focus
is on maintaining an intensive collaborative exchange
between all 50 Group companies and their around 25,000
employees in 30 countries that allows both the interests of
the individual companies and the Group as a whole to be
pursued.
In addition to international collaboration, profitability and
sustainable growth are also important objectives for VIG
Holding and the Group as a whole. To achieve these
objectives, a clear sustainability strategy based on the five
areas of core business, customers, employees, society and
the environment is used with a regional focus on Central
and Eastern Europe, with the aim of further expanding the
Group’s leading position in the insurance market in the CEE
region.
The combination of these strategies has paid off even in
difficult times, with VIG Insurance Group managing to
increase its premium volume to around EUR 11 billion and
improve its combined ratio to 94.2 % in spite of the COVID-
19 pandemic.
STRATEGY
To continue its success story, Vienna Insurance Group
intensively analysed the trends and developments in the
insurance business. The “
VIG 25
” strategic programme,
which runs until 2025, is being implemented based on the
trends for the insurance industry. Some of the areas that the
Group’s entrepreneurial activities will be focusing on until
2025 include further optimisation of the business model to
increase efficiency, strengthening alternative distribution
channels and expanding services. Digitalisation remains a
priority. Measures previously implemented in this area were
very helpful in maintaining contact with customers and
implementing services during the pandemic.
STRONG CAPITAL RESOURCES
VIG Insurance Group’s strong capital resources continue to
be an important asset for the Group. The VIG Insurance
Group solvency ratio of 250 % and VIG Holding solvency
rate of 415 % at the end of 2021 show that their solvency is
stable even in times of crisis. This large capital buffer allows
Vienna Insurance Group to pursue sustainable profitable
growth.
The internationally recognised rating agency Standard &
Poor’s (S&P) once again awarded VIG Insurance Group an
A+ rating with stable outlook. As a result, the Group remains
the best-rated insurance company in the ATX index.
S&P based its decision on the Group’s leading market
position in Austria and the CEE region, broad geographical
and product-related diversification and established distri-
bution network. S&P also mentioned the VIG Group’s
excellent capital resources, continued strict underwriting
discipline and conservative reinsurance policy as other
rating strengths.
Company profile
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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 2021 (and in the same period in
2020):
2021
2020
Direct business
Indirect business
Total
Direct business
Indirect business
Total
in EUR '000
Premiums written 186,149
1,098,741
1,284,890
132,753
1,012,385
1,145,138
Net earned premiums 176,543
1,068,386
1,244,929
129,610
999,029
1,128,639
Expenses for claims and insurance
benefits 171,709
620,914
792,623
111,982
576,530
688,512
Administrative expenses 14,635
437,708
452,343
13,983
398,674
412,657
Reinsurance balance 15,797
-3,836 11,961
-282 -10,752 -11,034
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 1,284.89 million in 2021, representing a year-on-year
increase of 12.2 %. Direct premiums written (corporate
business) increased 40.2 % year-on-year to EUR 186.15
million. Premium income from indirect business (assumed
reinsurance) was EUR 1,098.74 million, 8.5 % higher than
the previous year. The value of assumed reinsurance
includes EUR 15,639,000 (EUR 0) for health insurance and
EUR 5,133,000 (EUR 0) for life insurance.
VIG Holding retained EUR 1,178.62 million (2020:
EUR 1,073.20 million) of the premiums written. EUR 106.27
million was ceded to reinsurers in 2021 (2020: EUR 71.94
million). Gross earned premiums were EUR 1,244.93 million
(2020: EUR 1,128.64 million). Net earned premiums
increased EUR 81.09 million to EUR 1,139.67 million.
Expenses for claims and insurance benefits
Gross expenses for claims and insurance benefits were
EUR 792.62 million in 2021 (2020: EUR 688.51 million).
EUR 171.71 million of this amount was attributable to
corporate business (2020: EUR 111.98 million), EUR 59.73
million more than the previous year.
The gross claims ratio for direct business (excluding health
and life insurance) increased from 85.4 % to 96.6 %.
Expenses for claims and insurance benefits for assumed
reinsurance rose 5.5 % to EUR 608.11 million. The gross
claims ratio for indirect business was 58.0 % (2020: 57.7 %).
After deducting reinsurance of 112.22 million (2020:
EUR 55.87 million), expenses for claims and insurance
benefits were EUR 667.60 million (2020: EUR 632.65
million).
Administrative expenses
Administrative expenses were EUR 452.34 million in 2021,
or 9.6 % higher than the previous year (2020: EUR 412.66
million). This change was primarily due to an increase in
commissions for indirect business. EUR 14.64 million of the
administrative expenses were for the corporate business
and EUR 437.71 million for the reinsurance business. After
reinsurance commissions for ceded reinsurance business,
EUR 447.34 million in administrative expenses remained for
VIG Holding. This was an increase of EUR 37.84 million
compared to the previous year.
Management report 2021
178
Annual Financial Report 2021
Combined ratio
VIG Holding’s combined ratio was 99.6 % in 2021 (2020:
98.5 %), and 95.0 % for direct business (corporate business)
(2020: 96.3 %). 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 400.55 million
(2020: EUR 22.68 million). Impairment of shares in affiliated
companies was EUR 105.35 million (2020: EUR 173.67
million). The increase was partly due to higher income from
participations and affiliated companies compared to the
previous year.
2021
2020
in EUR '000
Land and buildings 9,531
11,102
Investments in affiliated companies
and participations
599,565
194,888
Other investments 21,130
3,318
Total income (net) 630,225
209,308
Other investment and interest income 16,982
11,673
Expenses for asset management -117,911
-90,146
Interest expenses -88,501
-72,488
Other investment expenses -40,244
-35,668
Investment profit according to
income statement 400,551
22,679
Result from ordinary activities
VIG Holding earned a result from ordinary activities of
EUR 399.52 million in 2021 (2020: EUR 61.39 million). This
increase was mainly due to a larger financial result.
Investments
Investments, including liquid assets, were EUR 6,834.52
million as of 31 December 2021 (2020: EUR 5,675.59
million).
Deposits were EUR 1,092.83 million in 2021 (2020:
EUR 1,026.0 million). 67.6 % (2020: 76.7 %) of the
investments at the end of 2021 were participations, 9.8 %
(2020: 9.9 %) were bonds (including pension funds), 0.8 %
(2020: 1.1 %) were loans, 2.0 % (2020: 2.2 %) were land
and buildings, and 19.8 % (2020: 10.1 %) were bank
balances and cash on hand.
Detailed information is provided on pages 200 and 201 of
the annual financial statements.
BREAKDOWN OF INVESTMENTS IN 2021
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VIG Holding acquires Aegon N.V. companies
Not all of the official approvals required for closing 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 Turkey have been provided yet. The approvals under
competition law have already been provided. The purchase
price is EUR 830 million. In addition to the AEGON
insurance companies, which generated a premium volume
of around EUR 600 million in 2019, the acquisition also
includes pension funds with around EUR 5 billion in assets
under management and asset management and service
companies. The acquisition expands VIG Insurance
Group’s market position in the CEE region and adds
4.5 million customers to its customer base. The companies
being acquired have around 1,650 employees and
generated around EUR 50 million in net profits in 2019.
With respect to Hungary, a memorandum of understanding
was signed with the Hungarian Ministry of Finance on
23 December 2021 that is aimed at concluding a co-
operation agreement between the VIG Group and Corvinus
regarding AEGON Hungary and UNION. The plans involve
Corvinus holding a direct or indirect 45 % interest in these
companies. The total purchase price is around EUR 350
million. The signing took place on 21 February 2022.
Underwriting provisions
Underwriting provisions were EUR 1,422.75 million as of 31
December 2021 (2020: EUR 1,308.74 million). This cor-
responds to a year-on-year increase of 8.7 %, which was
primarily due to provisions for outstanding claims arising from
direct business. The reinsurers’ share was EUR 179.14 mil-
lion (2020: EUR 124.02 million).
Solvency ratio
VIG Holding’s solvency ratio of 415 % is high due to an
outstanding endowment of capital resources combined
with a low capital requirement, and also includes its function
as a holding company in the Group.
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Annual Financial Report 2021
NON-FINANCIAL PERFORMANCE INDICATORS
For the 2021 reporting year, VIG Holding is publishing its
fifth sustainability report that addresses the sustainability
strategy for the Group. This strategy and much more infor-
mation on sustainability activities in the Group companies
can be read in this report, which is available for download
free of charge at www.vig.com/Nachhaltigkeitsberichte. A
few examples of the VIG Holding’s own initiatives are
presented below.
Social involvement – Example: Social Active Day
Social Active Day, which was initiated by VIG Insurance
Group’s principal shareholder Wiener Städtische Versi-
cherungsverein, celebrated its 10
th
anniversary in 2021.
Starting in 2011, VIG Insurance Group employees have
been able to use one working day per year for a socially
valuable cause. They can volunteer their time in many ways
for Social Active Day. The employees of VIG Holding, for
example, decided to support the Caritas “Lebensmittel und
Orientierung” (Food and Orientation) project in 2021, where
they helped with sorting food for people in need. During the
Christmas season, a generous donation of biscuits from
many VIG Holding employees benefited the Caritas
Canisibus soup bus, Juca residence and Gruft homeless
facility in Vienna. VIG Holding employees also used their
Social Active Day to take refugee families living in the
Caritas Damaris residence on a trip to the Schönbrunn Zoo.
Due to the ongoing Covid-19 pandemic, collecting litter
along the Danube was attractive to employees, as it was
relatively easy to observe social distancing rules while
making a contribution to environmental protection at the
same time.
195 (72) VIG Holdings employees took part in this Group-
wide initiative in 2021.
Cultural involvement – Example: Gustav Mahler Youth
Orchestra
The Gustav Mahler Youth Orchestra (GMYO) was founded
in Vienna in 1986/87 on the initiative of Claudio Abbado and
is considered the world’s leading youth orchestra today. In
addition to promoting and working with young musicians,
Abbado also wanted to help young Austrian musicians play
music with their colleagues from the former Czechoslovakia
and Hungary. As a result, the GMYO became the first
international youth orchestra to hold free auditions in the
countries of the former Eastern Bloc. In 1992, the GMYO
was opened to musicians up to the age of 26 from all of
Europe. On its 25
th
anniversary, it was appointed ambas-
sador for UNICEF Austria.
The GMYO has been a regular guest of concert organisers
and festivals around the world for years. The coronavirus
pandemic also posed major challenges for the GMYO in
2021. It is therefore all the more impressive that the
orchestra was able to be so active, which was due in part
to its diversity and flexibility.
In 2021, in addition to performing the opening concert in
the Wiener Musikverein (twice in a row) after the end of the
lockdown in May, it was also able to stand in at short notice
for the opening concert of the Salzburg Festival. The GMYO
also played two pieces at the “Youth for Eternal Hope”
concert (commemorative event for the 80
th
anniversary of
the establishment of the Theresienstadt Ghetto), and
presented a new CD at the end of 2021.
VIG Holding has supported the Gustav Mahler Youth
Orchestra for many years and continued its support even
during the difficult period of the coronavirus pandemic.
Diversity and peaceful coexistence have been core values
of the orchestra since it was founded and are also part of
the day-to-day life in the VIG Group.
VIG Holding promotes peace – Example: Children’s Peace
Image of the Year
The Global Peace Photo Award was inspired by Nobel
Peace Prize winner Hermann Fried. Launched in 2013, it
honours photographers who go beyond the raw brutality of
the images in the media today to capture the humane and
peaceful aspects of our lives. The prize is awarded in
cooperation with the World Press Photo Foundation,
UNESCO and the Austrian Parliament, among others. More
than 16,000 images from 114 countries were submitted for
the Global Peace Photo Award in 2021.
Since 2017, there has also been a separate children’s and
youth category, the Children’s Peace Image of the Year, with
a prize of EUR 1,000 awarded by VIG Holding. In addition
to underlying the core business of the Group, our
commitment to thinking in terms of generations and
assuming responsibility is also reflected in our support for
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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projects like this. In 2021, 7-year-old Aadhyaa Aravind
Shankar from India won the prize for her image Lap of Peace.
Employees
VIG Holding offers many attractive prospects and
development opportunities for its employees. It offers a
broad range of training and advanced training courses and
an attractive working environment. The clearly defined skills
in the VIG Talent Toolset form the basis for many learning
programmes that support the personal development of
employees and the dynamic further development of the
Group. Expert careers are another development option
offered to employees as an alternative to management
careers.
Together with the Austrian VIG companies, VIG Holding
introduced a redesigned “VIG Talk” employee annual review
in 2021. These meetings between employees and mana-
gers take place once a year and consist of two parts. The
“Target Talk” focuses on mutual feedback and work
priorities and objectives, and “Talent Talk” provides an
opportunity to think about the VIG Talent Toolset and
discuss personal and professional development.
In addition, a diversity concept that focuses on the criteria
of gender, internationality and generations has been used
for several years. More information on this concept is
available in the Corporate Governance Report. The advisory
company Boston Consulting Group and “trend” business
magazine published the BCG Gender Diversity Index
Austria, which rates gender parity in Austria’s 50 largest
listed companies, for the third time. After ranking second in
2018 and first in 2019, VIG Holding once again received
second place in the ranking for 2020, which was published
in financial year 2021.
Flexible working hours, a company cafeteria, company
kindergarten and sports and health programmes and other
medical services increase the attractiveness of the work
environment. 2021 was especially challenging due to the
ongoing COVID-19 pandemic. The VIG Group focuses on
“life balance” in the Company because the term is better at
expressing the idea that “work” and “life” are closely
connected and inseparable than “work-life balance”.
Human Resource Management 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 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 has also included a
wellbeing platform with videos, podcasts and articles since
January 2022. VIG Holding employees also provided
information about their needs and desires with respect to
health and prevention in an internal survey. One
consequence of this was the integrated concept of “Keep
Moving” for improving sustainability, mobility and health.
Since March 2020, the motto has been “home office before
office” and many employees have been working primarily
from home since then. Human Resources quickly
developed measures and virtual programmes to help them
work from home. These programmes were further
expanded in 2021. The “Masterplan” online platform, for
example, offers an extensive selection of training courses.
VIG Holding was included in the “Leading Employers
Austria” list. Based on the world’s most comprehensive
study of employer characteristics, the study was performed
as a meta-analysis and used a wide range of criteria to
produce an overall rating. The largest annual recruiting
study by “Best Recruiters” uses around 250 criteria to rank
the employer branding activities and recruiting of
companies in Germany, Austria, Switzerland and Liechten-
stein. VIG Holding once again received the gold award for
the insurance industry in the German-speaking region of
Germany, Austria and Switzerland.
The current human resources strategy has three main
objectives: VIG Insurance Group should be seen as a
diverse, innovative, learning organisation, empowering
managers to create a positive working environment and
support employees with future challenges, and an
appropriate feedback culture should exist. These objectives
are pursued using strategic HR partnerships, a value-driven
working environment, and management and employees
who are fit for the future.
There were an average of 311 employees, including
Managing Board members, in 2021.
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Annual Financial Report 2021
Research and development
Although VIG companies do not perform any research
activities as defined in § 243 (3) (2) UGB, they contribute
their expertise to the development of insurance-specific
software models. VIG Holding and – for projects – the VIG
companies also cooperate with Digital Impact Labs Leipzig,
Plug & Play and VENPACE, a start-up initiative (investment
and corporate building) that is located in Germany and
jointly funded with other insurance companies, in order to
identify technological developments in the market more
quickly and internalise them if necessary. The VIG Group
also indirectly promotes research activities through its
participations in ISTCube to increase basic research in
Austria and APEIRON to support research in the biotech
and pharmaceutical areas and the fight against COVID-19.
Viesure was also established for this purpose as an internal
“innovation hub” focusing mainly on Austria.
Other Information
VIG Holding established three branch offices in financial
year 2019, extending the business operations of the VIG
Insurance Group into Northern Europe. The Group therefore
operates branches located in Copenhagen, Oslo and
Stockholm.
Please see the notes to the financial statements
(I. Summary of significant accounting policies) for
information on the financial instruments used.
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RISK REPORT
The risk management system is well integrated into VIG Holding’s organisational structure. The following chart shows the
units that play an important role in the risk management system.
The Managing Board as a whole is responsible for the risk
management system, in particular for the following areas:
• Set up and promote the risk management system
• Define and communicate the risk strategy, including ris
k
t
olerances and risk appetite
• Approve corporate risk management guidelines
• Take the risk situation into account in strategic decisions
Both the Enterprise Risk Management and Asset Risk
Management units report directly to Managing Board
member Liane Hirner. They are assisted by the Digitalisation,
Finance and Risk department, which also reports to
Managing Board member Liane Hirner and is where the
Solvency II reporting system is organised.
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Annual Financial Report 2021
RISK COMMITTEE
The VIG Holding Managing Board established the Risk
Committee to ensure regular discussions of current matters
relating to risk management across functional areas within
the organisation and an exchange of information on the risk
situation between the members of the committee and the
Managing Board. The Risk Committee meetings take place
at least quarterly and are chaired by Managing Board
member responsible for this area. The Risk Committee
reports to the Managing Board after its meetings.
ENTERPRISE RISK MANAGEMENT
The department reports to Managing Board member Liane
Hirner. The head of the department performs the risk
management function required under Solvency II at the
Group and solo level.
The main responsibilities of the department include
determining the overall risk profile of the Group and VIG
Holding and calculating solvency. The department provides
a Group-wide risk aggregation solution for this purpose with
extensive reporting and partial modelling approaches for
calculating solvency capital. Calculation of the solvency
capital requirement during the year, analysis of risk-bearing
capacity using proprietary analysis tools and reviewing the
internal control system are other important activities
performed by the department.
The department also assists the Managing Board with
updating the corporate risk strategy, improvements to the
risk organisation and further corporate risk management
topics.
ASSET RISK MANAGEMENT
The department reports to Managing Board member Liane
Hirner. The primary responsibility of the department is to
analyse, assess and monitor risks associated with
investments, in particular with respect to the VIG Insurance
Group’s solvency result and financial result. For this purpose,
the department specifies Group-wide requirements for risk
assessment and implements a central system for invest-
ment management and risk monitoring. The department is
also responsible for maintaining an internal rating approach
for banks.
ASSET MANAGEMENT
The department reports to Managing Board member
Gerhard Lahner. One of the main responsibilities of the
department is to define a strategic orientation for the
investments of each insurance company and for VIG
Insurance Group as a whole, and to specify an investment
strategy and investment process aimed at ensuring that
current income is as high as possible, but also as secure as
possible, while simultaneously taking advantage of
opportunities to increase the value of investments.
Guidelines and limits are used to manage investments.
Regular reports are also provided for investments, limits and
income.
ACTUARIAL DEPARTMENT
The department has reported to Managing Board member
Peter Thirring since November 2021. The head of the
department performs the Actuarial function required by
Solvency II. The department is therefore responsible, in
particular, for the duties related to the Actuarial function.
The Actuarial department also calculates the embedded
value for the life and health insurance businesses and
prepares profitability analyses and company valuations. The
department also assists actuarial collaboration and
functional networking.
REINSURANCE
The department reports to Managing Board member Peter
Höfinger. The department coordinates and assists all
companies in VIG Insurance Group and their reinsurance
departments with reinsurance matters in the non-life
business (property and casualty, third party liability and
accident insurance) by preparing and applying guidelines.
The department also administers Group-wide reinsurance
programmes in the non-life lines of business. The primary
objective is to create a safety net to provide continuous
protection for all of the companies in VIG Insurance Group
against the negative effects of catastrophes, individual large
losses and negative changes in entire insurance portfolios.
PLANNING AND CONTROLLING
The department is an important part of the integrated risk
management approach and reports to Managing Board
member Hartwig Löger. The department coordinates
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business planning over a 3-year horizon. The standardised
reports include key figure and variance analyses for
planning, forecasts and ongoing performance of VIG
Holding and other insurance companies. Regular monthly
premium reports, quarterly reports for each company
(aggregated at the country and Vienna Insurance Group
level) and cost reports are prepared.
HOLDING IT
The Group IT department reported to Managing Board
member Peter Thirring until November of the financial year.
As part of the changeover to the new organisational
structure, responsibilities at the VIG Holding level were
assigned to the Holding IT department. The department
reports to Managing Board member Gerhard Lahner. The
department is responsible for managing IT at the VIG
Holding level (IT strategy, IT governance, IT security, IT
projects, etc.). The Austrian business organisation assists
Holding IT with this by providing outside IT and telephony
services.
TREASURY INCL. ASSET LIABILITY MANAGEMENT
The department reports to Gerhard Lahner and was
merged with the Asset Liability Management department at
the end of 2021. The observation, measurement and
optimisation of future cash flows on the asset and liabilities
sides are the main responsibilities of the Asset Liability
Management unit. It is also responsible for the exchange of
kn
owledge and improvements in the Group in this area.
CORPORATE BUSINESS
The department reports to Managing Board member Peter
Höfinger and underwrites insurance contracts for large
Austrian and international customers. The department also
assists subsidiaries with resources and know-how. The aim
is to achieve a uniform underwriting philosophy and
approach in all Vienna Insurance Group companies that
perform such business.
INTERNAL AUDIT
The department reports to the Managing Board. Managing
Board Chairwoman Elisabeth Stadler is the contact person
in the Managing Board. The Internal Audit department
systematically monitors operating and business processes,
the internal control system of all operational business areas,
including compliance with legal requirements, and the
functionality and adequacy of risk management. The
department operates continuously and reports directly to
the Managing Board. The head of the department performs
the Internal Audit function required by Solvency II.
VIG Holding’s overall risk can be divided into the following risk
categories:
Market risk
:
Market risk is the risk of losses due to changes
in market prices. Changes in value occur, for example, due
to changes in yield curves, share prices, exchange rates
and the value of land and buildings and participations.
Credit risk:
Credit risk quantifies the potential loss due to a
deterioration of the situation of a counterparty against which
claims exist.
Liquidity risk:
This category includes the risk of VIG
Insurance Group not having sufficient assets that can be
liquidated at short notice to satisfy its payment obligations.
Underwriting risks:
T
he core business of the Vienna
Insurance Group consists of the transfer of risk from policy
holders to the insurance company. Underwriting risks in the
areas of reinsurance and non-life insurance are primarily the
result of changes in insurance-specific parameters, such as
loss frequency, loss amount, lapse rates and lapse costs.
Reputation risks:
Reputation risk is the risk of negative
changes in business due to damage to a company’s
reputation.
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Annual Financial Report 2021
Operational risks:
Operational risks may result from
deficiencies or errors in business processes, controls or
projects caused by technology, staff, organisation or
external factors.
Strategic risks:
Strategic risks can arise due to changes in
the economic environment, case law, or the regulatory
environment. Established risk management processes are
used to regularly identify, analyse, evaluate, report, control
and monitor all the risks to which VIG Holding is exposed.
The risk control measures used are avoidance, reduction,
diversification, transfer and acceptance of risks and
opportunities. A Group-wide unified internal control system
also helps to ensure compliance with the guidelines and
requirements resulting from risk management. VIG Holding
is primarily exposed to market risk due to its activities as an
insurance holding company. A conservative investment
policy is used to limit other market risk due to investments.
Market risk is monitored using fair value measurement,
value-at-risk (VaR) calculations, sensitivity analysis and
stress tests.
Market risk is by far VIG Holding’s most important risk
exposure, in particular the equity and currency risk resulting
from its primary activity, holding participations in insurance
companies.
VIG Holding is also exposed to underwriting risks as a result
of its international corporate business and reinsurance
business. Appropriate underwriting provisions are deter-
mined using recognised actuarial methods and assump-
tions and managed by means of guidelines concerning the
assumption of insurance risks. VIG Holding also limits the
potential liability from its insurance business/active rein-
surance business by ceding part of the risk it has assumed
to the external reinsurance market through the Group
reinsurance company VIG Re.
With respect to credit risk, consideration is only given to
those issuers or contracting parties whose credit quality or
reliability can be assessed by VIG Holding, whether on the
basis of an in-house analysis, credit assessments/ ratings
from recognised sources, provision of security or the
possibility of recourse to reliable mechanisms for safe-
guarding investments. Operational and strategic risks which
might be caused by deficiencies or errors in business
processes, controls and projects, or changes in the
business environment, are also continuously monitored.
Limits are used to keep concentrations within the desired
margin of safety.
Investments
VIG Holding’s investments consist primarily of participations
and deposits. Additional investments are mainly made in
fixed-interest securities (bonds, loans) and real estate, and
only to a small extent in shares and other investments. VIG
Holding aligns its investments to its liability profile and aims
to achieve sustainable increases in value in accordance with
VIG Insurance Group investment guidelines, which are
based on a long-term conservative investment policy.
Use of forward exchange transactions
VIG Holding uses forward exchange transactions and
currency swaps to hedge expected dividend payments in
the most important currencies, CZK and PLN, and planned
distributions of Company earnings in the same currencies
for the current financial year.
The expected and planned amounts are checked regularly
and used to make any needed adjustments to the hedge
amounts.
Sustainability risks
Events or changes in conditions in the environmental or
social areas could have a negative effect on VIG Insurance
Group’s net assets, financial position and results of
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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operations, as well as its reputation. These include, among
others,
• climate change,
• potentially stricter requirements for sustainability in the
area of environmental protection,
• political measures to promote sustainable investment,
and
• stricter requirements for a sustainable social
environment (labour standards, occupational safety and
working conditions, compensation, etc.).
VIG Insurance Group includes sustainability risks in its
regular risk management processes (e.g. ORSA).
Risks related to the coronavirus pandemic
A further lengthening or worsening of the coronavirus
pandemic, and the effects this could have on capital
markets and the insurance business, could have a negative
effect on the net assets, financial position and results of
operations of VIG Insurance Group.
These include, in particular, risks related to possible
fluctuations in bond and capital markets that were also
observed in the early phase of the coronavirus pandemic. If
the coronavirus pandemic continues or worsens again,
there are also risks on a smaller scale of an increase in
claims and reduction of premium volume.
INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM
I
N THE ACCOUNTING PROCESS
General structure and organisation
The internal control and risk management system (ICS)
plays an important role in VIG Holding and is firmly anchored
in the organisational structural and process organisation of
the Company. Responsibilities are clearly defined in the ICS
by ICS Group guidelines and extend from the overall
responsibility of the Managing Board to establish an
effective control system and appropriate risk management,
to the responsibility of middle management to ensure
adequate risk control infrastructure in the various areas, all
the way to the individual employees, who are expected to
perform their work responsibly and proactively report
and/or remedy potential risks, deficiencies and sources of
errors.
The ICS itself is comprised of all measures and control
activities used to minimise risks – particularly for the areas
of accounting and compliance, but also for other
operational risks. It extends from specially established
processes, organisational units such as accounting and
controlling, all the way to guidelines, regulations and
individual controls within processes, such as automated
audits or use of the “four-eyes” principle.
Important control elements in the accounting process
The documentation for the annual financial statement
preparation process includes the important elements of the
internal control and risk management system that are
present in the accounting process.
The controls documented there are used during the
process to ensure that potential errors whose occurrence
cannot be completely ruled out in spite of the many
additional functional and technical controls in existing IT
systems (e.g. SAP) are identified and corrected at an early
stage in the reporting process.
This allows the following objectives of the annual financial
statement process to be achieved:
• Completeness: all transactions during the reporting
period are recorded in full.
• Existence: all reported assets and liabilities exist on the
balance sheet date.
• Accuracy: all transactions recorded in the financial
statements apply to the same period as the financial
statements.
• Measurement: all asset, liability, income and expense
items were recognised at fair value in accordance with
accounting requirements.
• Ownership: proper presentation of rights and
obligations.
• Presentation: all financial statement items are correctly
presented and disclosed.
188
Annual Financial Report 2021
The financial statement process includes the aggregation of
all data from accounting and upstream processes for the
annual financial statements. The financial statements are
submitted to the appropriate area head for review and
further consultation with the Managing Board. The
Managing Board provides final approval of the financial
statements. The auditor takes the internal control system
into account during the financial statement audit to the
extent that it is relevant to preparation of the annual financial
statements.
Effectiveness and controls
To ensure the effectiveness of the internal control system, VIG
Holding established an annual evaluation and documentation
process for the ICS with the professional assistance of
external auditors. This process identifies, analyses, assesses,
documents and reports risks and controls existing for VIG
Holding to the Managing Board, particularly those in the
areas of accounting and compliance.
Optimisation measures are introduced into the control
environment based on the findings, and their imple-
mentation is also monitored and reported by the
responsible units. The results of this process are also used
later by the internal audit department as a basis for its
subsequent audit of the accounting process and the control
environment established there.
DISCLOSURES IN ACCORDANCE WITH § 243A AND
§ 243(3)(3) UGB
Detailed information on the disclosures in accordance with
§ 243a and § 243(3)(3) UGB is available in the notes to the
financial statements on page 208.
DISCLOSURES ON OUTSOURCING IN ACCORDANCE
WITH § 156(1)(1) IN CONJUNCTION WITH § 109 VAG
A resolution was adopted allowing Group-internal and
external service providers to provide IT services for VIG
Holding. Outsourcing agreements that had been approved
by the supervisory authority existed in 2021 with IBM
Austria (Internationale Büromaschinen Ges. m.b.H.) and the
internal Group IT system provider twinformatics GmbH,
both headquartered in Austria. twinformatics GmbH has
also assumed full responsibility for all IT services for the
Austrian VIG insurance companies and concludes any sub-
outsourcing required for this purpose while observing
statutory and regulatory requirements and after consulting
with the VIG insurance companies. In addition to these
outsourcing agreements, VIG Holding has not outsourced
any critical or important functions or business activities.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
189
OUTLOOK
Economic outlook
At the beginning of the year, before the developments in
Ukraine, which are mainly addressed at the end of this
section, the focus in the eurozone was on the pandemic
and associated containment measures, which could
continue to negatively affect private consumption and the
propensity to invest in the short term. The following
expectations from January 2022, which do not include
potential Ukraine effects, created hopes of normalisation in
spite of the still fragile and visibly impaired supply chains
and the situation in energy markets. The economic recovery
was, as a result, generally expected to continue in 2022, in
spite of short-term negative effects. Erste Group analysts
therefore expected GDP growth of 4.4 % for the eurozone
in 2022. Further developments in the pandemic and the
situation in Ukraine and all their possible effects remain the
biggest risk.
Even though inflation temporarily rose higher than expected
in 2021 and is expected to continue at the beginning of
2022, it is expected to drop again in the medium term due
to the onset of base effects and decreasing pressure on
energy prices. Inflation medium-term will depend on the
labour market situation and associated wage pressure.
The outlook for Austria in 2022 is influenced by opposing
factors. On the one hand, increased progress in vaccinating
the population against COVID-19, strong private
consumption and the announced tax reform should pave
the way for a solid recovery. The tax reform is expected to
support household consumption and business investment
starting in mid-2022, while grants from the EU recovery
fund should support public investment. On the other hand,
infection dynamics, potential travel warnings and
restrictions, labour shortages and ongoing supply
bottlenecks represent downside risks for economic activity.
Based on this, the Erste Group expects the Austrian
economy to record average growth of 3.5 % in 2022.
In the CEE region, the continued robust labour market and
a gradual reduction in pent-up demand should provide
significant support for further recovery. Regular EU funding
and, in particular, the recovery fund should have a
noticeable effect on investments (with some political risk of
Poland and Hungary not receiving these funds). In addition
to the situation in Ukraine, risks related to the COVID-19
pandemic and supply chain bottlenecks also exist here. The
more that any restrictions are lifted or downside risks lose
their effect, the sooner the region will regain its full potential.
The effects of the Russian invasion of Ukraine, which are
currently still difficult to assess, will in any case have a
negative impact on the growth outlook in the region. As a
result, regional GDP growth of only 3.0% is expected for
2022. The pressure on prices due to base effects and, in
particular, energy prices is also expected to continue in
2022. Inflation is expected to remain high for at least the
first half of 2022. Although inflation is expected to decline
during the course of the year as intermediary effects
decrease, it is expected to remain higher than the pre-
pandemic level, in part because of the relatively strong
influence of the labour market. The Erste Group analysts
therefore expect an inflation rate of 9.7 % in 2022 followed
by a noticeable decline in the price level in 2023.
The Russian attack on Ukraine at the end of February 2022
creates increased uncertainty for general economic
development and therefore also for economic development
in the CEE region and Austria. It was impossible to estimate
the consequences at the editorial deadline. Economic
dependency due to trade with Russia is relatively
manageable, given that Russia is not among the top ten
export destinations for the CEE region. Any sanctions
against Russia should also have a relatively manageable
effect on the economies of the region. A general increase in
uncertainty could nevertheless stand in the way of further
recovery from the pandemic in the region. In particular,
given that the region obtains a large part of its gas imports
from Russia, further increases in energy prices and
increases in the prices of other commodities for which
190
Annual Financial Report 2021
Russia is a major exporter could drive inflation higher in
Austria and the CEE region. The extent to which further
increases in energy costs (or even reduced availability)
might lead to production bottlenecks in individual industries
remains to be seen. Since the conflict is so close, the yields
on bonds from the region will likely increase due to risk
premiums. This adds another significant factor to the
question facing the European Central Bank (ECB) about
how it should design its monetary policy.
Outlook for VIG Insurance Group
As a market leader in Central and Eastern Europe, VIG
Insurance Group with its more than 25,000 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 and initiated together
with the CEOs of the VIG insurance companies based on
trends and developments in the insurance business and is
aimed at further increasing premium volume and improving
the combined ratio. Based on the new strategy and current
conditions, a range of 150 to 200 % was specified for the
VIG Group solvency ratio without taking into account the
transitional arrangements for underwriting provisions used
by the individual Group companies. The dividend policy,
which provides for a distribution in the range of 30 to 50 %
of Group net profits, remains unchanged. The dividend per
share will continue to be aligned with the Company’s
performance. The Managing Board of Vienna Insurance
Group will propose increasing the dividend to EUR 1.25 for
financial year 2021. This corresponds to an increase of 66.7 %
compared to the previous year and a dividend payout ratio
of 42.6 %.
In addition to creating sustainable value and achieving the
sustainability objectives, one of the key objectives of the
programme is to expand the leading market position in
Central and Eastern Europe, with the aim of achieving at
least a top 3 position in each CEE market, with the
exception of Slovenia. The planned acquisition of the CEE
business of the Dutch company Aegon N.V., which was not
yet finalised by the editorial deadline, is a major step in this
direction. The acquisition is expected to be formally
concluded in 2022.
The further developments in financial year 2022 continue to
be influenced by uncertainty factors, above all the war
situation in Ukraine and its unforeseeable consequences.
The ongoing pandemic, inflation, high commodity prices,
supply chain problems and resource shortages are other
factors that could increase risk and therefore negatively
impact VIG markets. It is currently not possible to estimate
the consequences of these uncertainty factors and the
resulting impact on business development in 2022. Given
that the VIG Group has been able to manage the current
challenges in its insurance business operations very well so
far, the Group aims to achieve positive operating perfor-
mance in 2022, subject to the factors mentioned above.
VIG Holding holds bonds issued by the Russian Federation
and companies related to the Russian Federation with a
nominal value of EUR 7.2 million.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
191
Outlook for VIG Holding
VIG Holding has set a goal for financial year 2022 of increasing its premium volume from international reinsurance and
cross-border corporate business. VIG Holding will also work with the insurance companies to further focus on the strategic
priorities in the new “VIG 25” strategic programme and optimise processes and earning power.
Appropriate measures will be implemented and coordinated to achieve these goals.
In addition, the Group’s attractiveness as an employer with an international background will be increased and sustainable
business operations for people and the environment will be further expanded.
Vienna, 16 March 2022
The Managing Board:
Elisabeth Stadler
General Manager, Chairwoman of
the Managing Board
Hartwig Löger
Deputy General Manager,
Deputy Chairman of
the Managing Board
Liane Hirner
CFRO, Member of
the Managing Board
Peter Höfinger
Member of
the Managing Board
Gerhard Lahner
COO, Member of
the Managing Board
Gábor Lehel
CIO, Member of
the Managing Board
Harald Riener
Member of
the Managing Board
Peter Thirring
CTO, Member of
the Managing Board
192
Annual Financial Report 2021
G
roup management report | Consolidated financial statements | Management report | Annual financial statements | Service information
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193
Annual
financial
statements
in accordance with the Austrian
Commercial Code (UGB)
194
Annual Financial Report 2021
BALANCE SHEET AS OF 31. DECEMBER 2021
Assets 31.12.2021
31.12.2020
in EUR
in EUR '000
A. Intangible assets 21,456,336.17
16,059
I. Other intangible assets 21,456,336.17
16,059
B. Investments 6,781,243,739.42
6,136,577
I. Land and buildings 134,258,531.33
125,070
II. Investments in affiliated companies and participations 5,039,921,567.55
4,763,484
1. Shares in affiliated companies 4,593,705,496.36
4,328,867
2. Bonds and other securities of affiliated companies and loans to affiliated companies 421,500,000.00
409,700
3. Participations 24,216,071.19
24,417
4. Bonds and other securities of and loans to companies in which an ownership interest is held 500,000.00
500
III. Other investments 514,237,911.95
222,066
1. Shares and other non-fixed-interest securities 132,419,043.70
128,085
2. Bonds and other fixed-interest securities 168,792,657.43
80,891
3. Mortgage receivables 2,100,000.01
2,178
4. Other loans 926,210.81
912
5. Bank deposits 210,000,000.00
10,000
IV. Deposits on assumed reinsurance business 1,092,825,728.59
1,025,957
C. Receivables 283,039,661.32
214,795
I. Receivables from direct insurance business 71,388,081.23
19,596
1. from policyholders 6,733,314.92
6,998
2. from insurance intermediaries 134,143.25
82
3. from insurance companies 64,520,623.06
12,516
II. Receivables from reinsurance business 75,568,584.41
39,758
III. Other receivables 136,082,995.68
155,441
D. Pro rata interest 7,644,442.11
7,401
E. Other assets 1,147,833,128.50
566,868
I. Tangible assets (not incl. land and buildings) 1,735,804.91
1,898
II. Current bank balances and cash on hand 1,146,097,323.59
564,970
F.Deferred charges 14,423,951.45
5,618
Total ASSETS 8,255,641,258.97
6,947,318
Separate financial statements
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BALANCE SHEET AS OF 31. DECEMBER 2021
Liabilities and shareholders' equity 31.12.2021
31.12.2020
in EUR
in EUR '000
A. Shareholders' equity 3,790,773,691.82
3,440,911
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 1,006,715,354.17
756,716
IV. Risk reserve 45,586,845.00
44,845
V. Net retained profits 338,351,602.38
239,231
of which brought forward 143,230,814.01
153,751
B. Subordinated liabilities 1,400,000,000.00
1,100,000
I. Hybrid bond 300,000,000.00
0
II. Supplementary capital bond 1,100,000,000.00
1,100,000
C. Underwriting provisions – retention 1,422,745,506.78
1,308,738
I. Unearned premiums 133,602,554.44
114,011
1. Gross 138,371,833.95
118,050
2. Reinsurers' share -4,769,279.51 -4,039
II. Mathmatical reserve 5,145,486.87
0
1. Gross 5,145,486.87
0
III. Provision for outstanding claims 1,267,124,806.47
1,177,741
1. Gross 1,441,492,021.91
1,297,726
2. Reinsurers' share -174,367,215.44 -119,985
IV. Equalisation provision 14,017,184.00
14,754
V. Other underwriting provisions 2,855,475.00
2,232
1. Gross 2,855,475.00
2,232
D. Non-underwriting provisions 211,344,644.71
167,631
I. Provision for severance pay 838,750.00
846
II. Provision for pensions 63,592,303.00
56,555
III. Tax provisions 3,500,357.14
3,500
IV. Other provisions 143,413,234.57
106,730
E. Other liabilities 1,429,770,634.31
928,233
I. Liabilities from direct insurance business 144,936,428.02
112,485
1. to policyholders 41,587,730.98
31,895
2. to insurance intermediaries 710,328.62
777
3. to insurance companies 102,638,368.42
79,813
II. Liabilities from reinsurance business 11,672,654.26
18,388
III. Liabilities from bonds (not including supplementary capital) 503,835,616.53
0
IV. Liabilities to financial institutions 227,985,349.79
192,751
V. Other liabilities 541,340,585.71
604,609
F.Deferred charges 1,006,781.35
1,805
Total LIABILITIES AND SHAREHOLDERS' EQUITY 8,255,641,258.97
6,947,318
196
Annual Financial Report 2021
INCOME STATEMENT FOR THE FINANCIAL YEAR FROM 1. JANUARY TO 31. DECEMBER 2021
Underwriting account 2021
2020
in EUR
in EUR '000
1. Net earned premiums 1,139,671,121.75
1,058,581
Premiums written 1,178,622,973.47
1,073,201
Gross 1,284,890,731.00
1,145,138
Ceded reinsurance premiums -106,267,757.53
-71,937
Change in unearned premiums -38,951,851.72
-14,620
Gross -39,961,492.19
-16,499
Reinsurers' share 1,009,640.47
1,879
2. Investment income from underwriting business 8,520,031.64
11,364
3. Other underwriting income 866,339.55
454
4. Expenses for claims and insurance benefits -680,406,090.37
-632,646
Payments for claims and insurance benefits -594,219,251.85
-561,102
Gross -651,936,958.37
-573,924
Reinsurers' share 57,717,706.52
12,822
Change in provision for outstanding claims -86,186,838.52
-71,544
Gross -140,686,175.77
-114,587
Reinsurers' share 54,499,337.25
43,043
5. Increase in underwriting provisions -5,768,961.87
-325
Mathematical reserve -5,145,486.87
0
Gross -5,145,486.87
0
Other underwriting provisions -623,475.00
-325
Gross -623,475.00
-325
6. Administrative expenses -447,341,057.49
-409,499
Acquisition expenses -448,341,643.83
-410,404
Other administrative expenses -4,001,058.42
-2,253
Reinsurance commissions and profit commissions from reinsurance cessions 5,001,644.76
3,158
7. Other underwriting expenses -2,231,370.24
-867
8. Change in the equalisation provision 736,567.00
-2,008
Underwriting result 14,046,579.97
25,054
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
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INCOME STATEMENT FOR THE FINANCIAL YEAR FROM 1. JANUARY TO 31. DECEMBER 2021
2021
2020
in EUR
in EUR '000
Underwriting result 14,046,579.97
25,054
Non-underwriting account:
1. Income from investments and interest income 763,615,905.94
432,012
Income from participations 672,188,424.94
315,882
Income from land and buildings 12,775,057.98
13,415
Income from other investments 25,844,322.11
26,434
Income from appreciations 32,900,120.00
53,298
Income from the disposal of investments 2,926,382.69
11,310
Other investment and interest income 16,981,598.22
11,673
2. Expenses for investments and interest expenses -363,064,855.74 -409,333
Expenses for asset management -117,910,842.22 -90,146
Depreciation of investments -110,278,925.44 -208,435
Interest expenses -88,500,883.53 -72,488
Losses from the disposal of investments -6,130,538.06 -2,596
Other investment expenses -40,243,666.49 -35,668
3. Investment income transferred to the underwriting account -8,520,031.64 -11,364
4. Other non-underwriting income 11,878,296.95
30,571
5. Other non-underwriting expenses -18,432,201.01 -5,555
6. Result from ordinary activities 399,523,694.47
61,385
8. Taxes on income 46,338,928.90
24,095
8. Profit for the period 445,862,623.37
85,480
9. Transfer to reserves -250,741,835.00 0
Transfer to free reserves -250,000,000.00 0
Transfer to risk reserve -741,835.00 0
10. Profit for the year 195,120,788.37
85,480
11. Retained profits brought forward 143,230,814.01
153,751
Net retained profits 338,351,602.38
239,231
198
Annual Financial Report 2021
NOTES TO THE FINANCIAL STATEMENTS FOR 2021
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The annual financial statements as of 31 December 2021
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 perfor-
med assuming the Company would continue as a going
concern.
The measurement methods that were previously used
were also used in financial year 2021.
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 euro (EUR
'000). Calculation differences may arise when rounded
amounts are summed automatically. Figures from the
previous year are indicated as such or shown in
parentheses.
Intangible assets
were reported at cost less amortisation
based on a useful life of three to ten years.
Land
is measured at cost,
buildings
at cost less
depreciation and any write-downs. As a rule, repair costs
for residential buildings are spread over 15 years starting
as of 2016.
Equities
and other non-fixed interest
securities
and
shares in affiliated companies
are valued according to the
strict lower-of-cost-or-market principle (strenges
Niederstwertprinzip). Bonds, other fixed-income secu-
rities and
participations
are valued using the less strict
lower-of-cost-or-market principle (gemildertes Niederst-
wertprinzip) provided for in § 149(1) VAG.
Valuation using the less strict lower-of-cost-or-market
principle resulted in write-downs of EUR 503,000
(EUR 24,000) not being performed.
The Company takes into account the overall risk position
of the Company and the investment strategy provided for
this purpose when making investments in fixed-interest
securities, real estate, participations and shares. The risk
inherent in the specified categories and the market were
taken into account when determining exposure volumes
and limits.
The investment strategy is laid down in the form of
investment guidelines that are continuously monitored for
compliance by the corporate risk controlling and internal
audit departments. The corporate risk controlling
department reports regularly to the tactical and strategic
investment committee. The internal audit department
reports regularly to the Managing Board.
As a rule, investments are generally low-risk. The
strategic investment committee decides on potential
high-risk investments based on the inherent risk of each
individual investment after performing a full analysis of all
related risks and liquidity at risk, and considering all
assets currently in the portfolio and the effects of the
individual investments on the overall risk position. All
known financial risks are assessed regularly and specific
limits or reserves are used to limit exposure. Security
price risk is reviewed periodically using value-at-risk and
stress tests. Default risk is measured using both internal
and external rating systems.
An important goal of investment and liquidity planning is
to maintain adequate amounts of liquid, value-protected
financial investments. Liquidity planning therefore takes
into account the trend in insurance benefits and the
majority of investment income is generally reinvested.
Six forward exchange transactions in the CZK and PLN
currencies with terms limited to 18 May 2022 existed as
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
199
of the 31 December 2021 balance sheet date. The
transactions are being used to hedge future dividends in
foreign currency. A provision for expected losses in the
amount of EUR 2,380,000 (EUR 1,069,000) was formed
for the four forward exchange transactions whose market
values were negative as of the reporting date.
The remaining two forward exchange transactions had a
positive market value of EUR 41,000 on the reporting
date (EUR 515,000).
Amounts denominated in
foreign currencies
are
translated 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 3,219,000 (EUR 1,524,000).
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 7,713,000
(EUR 783,000) were included.
The
indirect business
includes assumed property and
casualty insurance as well as health and life insurance
business. In indirect business, provisions for outstanding
claims and the mathematical reserve are primarily based
on reports from ceding companies as of the 31 Dec-
ember 2021 balance sheet date. The reported amounts
were increased where this was considered necessary in
light of past experience.
The
underwriting items for assumed reinsurance
business
and associated retrocessions are included
immediately in the annual financial statements.
The equalisation provision is calculated in accordance
with the directive of the Austrian Federal Minister of
Finance, BGBl. (Federal Gazette) No. 315/2015. The
calculation has been performed for direct and indirect
business combined since financial year 2016.
The
provisions for severance pay, pensions, and
anniversary bonuses
are based on the pension insurance
calculation principles of the Actuarial Association of
Austria (AVÖ), AVÖ 2018-P (Employees), assuming a
wage growth rate of 2.25 % (2.00 %) and a discount rate
of 0.76 % (0.97 %) p.a. for the severance provision, 1.42 %
(1.68 %) for the pension provision and 1.02 % (1.21 %) 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
200
Annual Financial Report 2021
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 3,223,000 (EUR 3,108,000) in provisions have been
formed for direct pension obligations. A portion of the
direct benefits equal to EUR 252,000 (EUR 252,000) will
be administered as an occupational group insurance plan
after an insurance contract has been concluded in
accordance with §§ 93-98 VAG, so that the provision will
equal the overall obligation less the outsourced plan
assets.
The severance pay provision required under Austrian
commercial law for 2021 was EUR 2,712,000
(EUR 2,520,000).
The amount earmarked for satisfying the outsourced
severance pay obligations that was held by the outside
insurance company was EUR 1,873,000
(EUR 1,675,000).
The difference of EUR 839,000 (EUR 846,000) between
the size of the severance pay provisions to be formed
under Austrian commercial law and the deposit held by
the outside insurance company is reported under
provisions for severance pay in the balance sheet.
II. NOTES TO THE BALANCE SHEET
The book values of intangible assets, land and buildings, investments in affiliated companies and ownership interests have
changed as follows:
Intangible assets
Land and
buildings
Shares in
affiliated
companies
Bonds and other
securities of
affiliated
companies and
loans to affiliated
companies
Participations
Bonds and other
securities of and
loans to
companies in
which an
ownership interest
is held
in EUR '000
As of 31. December 2020 16,059
125,070
4,328,867
409,700
24,417
500
Additions 8,883
15,684
477,527
20,000
200
0
Disposals 0
1,880
140,065
8,200
401
0
Appreciation 0
0
32,726
0
0
0
Depreciation 3,486
4,615
105,350
0
0
0
As of 31. December 2021 21,456
134,259
4,593,705
421,500
24,216
500
Intangible assets
with a value of EUR 464,000 (EUR 827,000)
were acquired from affiliated companies during the financial
year. The value of developed and undeveloped properties
was EUR 28,376,000 (EUR 30,134,000) as of 31 December
2021. The
carrying amount of self-used property
was
EUR 22,703,000 (EUR 22,501,000).
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
201
The investments have the following carrying amounts and fair values:
Items under § 144 Abs. 2 VAG Book Value
Fair value
Book Value
Fair value
2021
2021
2020
2020
in EUR '000
Land and buildings 134,259
606,434
125,070
561,474
thereof appraisal reports 2016 0
0
1,880
2,890
thereof appraisal reports 2017 1,443
2,420
301
2,420
thereof appraisal reports 2018 3,020
3,080
15,511
147,350
thereof appraisal reports 2019 42,637
219,200
40,149
219,200
thereof appraisal reports 2020 31,437
94,124
67,229
189,614
thereof appraisal reports 2021 55,722
287,610
0
0
Shares in affiliated companies 4,593,705
8,974,398
4,328,867
8,448,271
Bonds and other securities of affiliated companies and loans to affiliated companies 421,500
503,759
409,700
514,241
Participations 24,216
40,458
24,417
28,297
Bonds and other securities of and loans to companies in which an ownership
interest is held 500
525
500
553
Shares and other non-fixed-interest securities 132,419
139,328
128,086
136,274
Bonds and other fixed-interest securities 168,793
177,129
80,891
92,340
Mortgage receivables 2,100
2,238
2,178
2,396
Other loans 926
1,300
912
1,371
Bank balances 210,000
210,000
10,000
10,000
Deposits receivables 1,092,826
1,092,826
1,025,956
1,025,956
Total 6,781,244
11,748,394
6,136,577
10,821,173
Hidden reserves rose by EUR 282,555,000 to a total of
EUR 4,967,151,000 (EUR 4,684,596,000).
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
a
nd
other loans
.
The
other loans
not secured by insurance contracts are
loans of EUR 926,000 (EUR 912,000) to the Republic of
Austria and loans of EUR 0 (EUR 0) to other borrowers. The
other loans do not include any loans (EUR 0) with remaining
terms of up to one year.
202
Annual Financial Report 2021
The
subordinated liabilities
balance sheet item consists of the bonds listed in the table below, which were issued in the form
of securities.
Name 2021
2020
in EUR '000
RT1 Supplementary capital bond 2021 300,000
0
Supplementary capital bond 2013 - 2043 500,000
500,000
Supplementary capital bond 2015 - 2046 400,000
400,000
Supplementary capital bond 2017 - 2047 200,000
200,000
Total 1,400,000
1,100,000
The following balance sheet items are attributable to affiliated companies and companies in which a participation is held:
Affiliated companies
Companies in which an ownership
interest is held
2021
2020
2021
2020
in EUR '000
Mortgage receivables 2,100
2,178
0
0
Deposits receivables 1,092,826
1,025,956
0
0
Receivables from direct insurance business 25,079
224
0
0
Receivables from reinsurance business 31,240
15,724
0
0
Other receivables 120,148
143,895
8
8
Liabilities from direct insurance business 4,077
2,348
0
0
Liabilities from reinsurance business 9,324
14,296
0
0
Other liabilities 451,210
532,646
0
0
The change in
personnel provisions
was recognised in
personnel expenses. The interest expenses for personnel
provisions of EUR 6,694,000 (EUR 4,917,000) are reported
under investment and interest expenses.
The
other provisions
of EUR 143,413,000 (EUR 106,730,000)
mainly consist of IT provisions of EUR 95,861,000
(EUR 79,655,000), provisions for unused vacation time of
EUR 3,115,000 (EUR 2,516,000), provisions for variable
salary components of EUR 9,311,000 (EUR 8,550,000),
provisions for customer support and marketing of
EUR 467,000 (EUR 489,000) and provisions for anniversary
bonuses of EUR 1,263,000 (EUR 1,088,000).
The amount shown under
other liabilities
includes
EUR 101,000 (EUR 7,000) in tax liabilities and EUR 570,000
(EUR 552,000) in social security liabilities.
Other
financial obligation
. On 29 November 2020, VIENNA
INSURANCE GROUP AG Wiener Versicherung Gruppe
reached agreement with Aegon N.V. to acquire its insurance
business in Hungary, Poland, Romania and Turkey. The
purchase price is EUR 830,000,000. The transaction is
subject to the approvals required under supervisory law.
Approval under competition law has already been provided.
This financial obligation is partially offset by the agreement
reached with Corvinus under which it will acquire a direct or
indirect 45 % interest in AEGON Hungary and UNION for a
total purchase price of around EUR 350,000,000.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
203
The following disclosures are provided for
off-balance
sheet contingent liabilities
: Letters of comfort totalling
EUR 75,000,000 (EUR 75,000,000) have been issued for
affiliated companies in connection with borrowing. VIG
Holding issued a guarantee to its subsidiary Wiener
Städtische Versicherung AG Vienna Insurance Group in
December 2019 that obligates it to subscribe to up to
EUR 350,000,000 in deeply subordinated bonds upon
demand by Wiener Städtische. The guarantee has a term
of 10 years.
Liabilities arising from the use of off-balance sheet tangible
assets
were EUR 2,073,000 (EUR 2,186,000) for the
following financial year and EUR 11,007,000
(EUR 11,608,000) for the following five years.
III. NOTES TO THE INCOME STATEMENT
Premiums written, net earned premiums, expenses for insurance claims and benefits, administrative expenses and reinsurance
balance had the following breakdown for property and casualty insurance in 2021:
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 155,856
150,263
157,818
11,216
24,736
Liability insurance 4,565
3,980
2,166
953
-702
Marine, aviation and transport insurance 2,634
2,893
2,643
696
325
Other non-life insurance 23,094
19,407
9,082
1,770
-8,562
Total direct business 186,149
176,543
171,709
14,635
15,797
(Previous year values) 132,753
129,610
111,982
13,983
-282
Indirect business
Marine, aviation and transport insurance 0
0
19
1
20
Other insurance 1,077,969
1,047,614
608,087
434,991
-3,856
Total indirect business 1,077,969
1,047,614
608,106
434,992
-3,836
(Previous year values) 1,012,385
999,029
576,530
398,674
-10,752
Total direct and indirect business 1,264,118
1,224,157
779,815
449,627
11,961
(Previous year values) 1,145,138
1,128,639
688,512
412,657
-11,034
The
reinsurance balance
is composed of net earned
reinsurance premiums, effective reinsurance claims and
reinsurance commissions.
The run-off result for property and casualty insurance was
EUR 37,649,000 (EUR 15,912,000) for financial year 2021.
In
indirect business
, EUR 15,639,000 (EUR 0) in premiums
written in the health insurance line of business and
EUR 5,133,000 (EUR 0) in the life insurance line of business
were assumed. The reinsurance balance from assumed
health and life insurance business was EUR 0 (EUR 0).
The result from
indirect business
was EUR 13,139,000
(EUR 35,190,000). The net earned premiums of
EUR 1,068,386,000 (EUR 999,029,000) from indirect
business were included immediately in the income
statement.
204
Annual Financial Report 2021
Of the income from participations, land and buildings and other investments shown in the income statement, affiliated companies
accounted for the following amounts:
2021
2020
in EUR '000
Income from participations 669,205
313,837
Income from other investments 21,982
22,324
Income from land and buildings 873
672
The funds in the portfolio distributed EUR 1,654,000 (EUR 2,029,000) during the financial year.
The deposit interest income for indirect business was transferred to the underwriting account.
Losses on disposals of investments
were EUR 6,131,000 (EUR 2,596,000) in financial year 2021.
The expenses for insurance claims and benefits, administrative expenses, other underwriting expenses and investment expenses
include:
2021
2020
in EUR '000
Wages and salaries 32,741
30,807
Expenses for severance benefits and payments to company pension plans 701
664
Expenses for retirement provisions 898
1,814
Expenses for statutory social contributions and income-related contribution and mandatory contributions 6,460
6,020
Other social security expenses 166
126
Commissions
of EUR 9,502,000 (EUR 9,678,000) were
incurred for direct business in financial year 2021.
A summary of
auditing fees
is provided in the notes to the
consolidated financial statements of VIENNA INSURANCE
GROUP AG Wiener Versicherung Gruppe, Vienna.
Deferred profit taxes of EUR 0 (EUR 0) were recognised due
to temporary differences between earnings under com-
mercial law and taxable earnings. A tax rate of 22.5 % was
chosen for deferred taxes based on the provisions of the
tax allocation agreement with the parent company.
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
205
Deferred taxes
31.12.2021
31.12.2020
in EUR '000
Shares in affiliated companies 22,153
33,257
investments 2,394
1,161
Tangible assets (not incl. land and buildings) and inventories 85
43
Valuation reserve -19,983 -20,533
subordinated liabilities 6,357
4,501
Underwriting provision – retention 83,497
78,442
Long-term personnel provisions 41,132
35,323
other provisions 56,039
69,156
Temporary differences 191,674
201,350
Not subject to tax -191,674 -201,350
Total differences 0
0
Resulting deferred taxes as at 31 December (22.5 %) 0
0
Deferred taxes changed as follows:
As of 1 January 0
0
Changes recognised in the income statement 0
0
As of 31 December 0
0
206
Annual Financial Report 2021
IV. SIGNIFICANT PARTICIPATIONS
Company
Direct interest in
capital (%)
Equity capital
(EUR '000)
Share of Capital
(EUR '000)
Result of the
year (EUR '000)
Share of profit
for the year
(EUR '000)
Last annual
financial
statements
Affiliated companies
ASIGURAREA ROMANEASCA - ASIROM VIENNA
INSURANCE GROUP S.A., Bucharest 88.76
79,960
70,972
-3,705
-3,289
2021
ATBIH GmbH, Vienna 68.97
173,509
119,669
11,021
7,601
2021
BCR Asigurari de Viata Vienna Insurance Group
S.A., Bucharest
93.98
48,074
45,180
6,240
5,864
2021
BTA Baltic Insurance Company AAS, Riga 100.00
64,005
64,005
8,561
8,561
2021
Beesafe Spolka z Ogranziczona
Odpowiedzialnoscia, Warsaw 77.03
9,596
7,391
-9,607
-7,400
2020
Compania de Asigurari "DONARIS VIENNA
INSURANCE GROUP" Societate pe Actiuni, Chisinau
99.99
5,639
5,638
531
531
2021
Ceská podnikatelská pojist'ovna, a.s., Vienna
Insurance Group, Prague 100.00
114,722
114,722
30,282
30,282
2021
Compensa Life Vienna Insurance Group SE, Tallinn 100.00
45,469
45,469
6,630
6,630
2021
Compensa Towarzystwo Ubezpieczen Na Zycie
Spolka Akcyjna Vienna Insurance Group, Warsaw 84.14
59,036
49,673
4,395
3,698
2021
Compensa Towarzystwo Ubezpieczen Spolka
Akcyjna Vienna Insurance Group, Warsaw 70.67
96,104
67,917
19,602
13,853
2021
Compensa Vienna Insurance Group, akcine
draudimo bendrove, Vilnius
100.00
86,338
86,338
7,832
7,832
2021
DONAU Versicherung AG Vienna Insurance Group,
Vienna 74.24
108,482
80,537
4,442
3,298
2021
ELVP Beteiligungen GmbH, Vienna 100.00
23,324
23,324
2
2
2021
Foreign limited liability company
"InterInvestUchastie", Minsk 99.95
238
238
12
12
2020
GLOBAL ASSISTANCE SERVICES SRL, Bucharest 40.00
225
90
29
12
2020
GLOBAL ASSISTANCE SERVICES s.r.o., Prague 100.00
322
322
77
77
2020
GLOBAL ASSISTANCE SLOVAKIA s.r.o., Bratislava 40.00
54
22
12
5
2020
GLOBAL ASSISTANCE, a.s., Prague 60.00
6,134
3,680
2,416
1,450
2021
Global Assistance Polska Spolka z ograniczona
odpowiedzialnoscia, Warsaw
30.77
110
34
-91
-28
2020
Global Services Bulgaria JSC, Sofia 50.00
352
176
25
13
2020
INSURANCE ONE-SHAREHOLDER JOINT-STOCK
COMPANY BULSTRAD VIENNA INSURANCE GROUP
EAD, Sofia
100.00
76,845
76,845
22,815
22,815
2021
INTERSIG VIENNA INSURANCE GROUP Sh.A.,
Tirana 89.98
6,648
5,982
764
687
2021
Insurance Company Vienna osiguranje d.d., Vienna
Insurance Group, Sarajevo
100.00
11,649
11,649
255
255
2021
Stock Company for Insurance and Reinsurance
MAKEDONIJA Skopje - Vienna Insurance Group,
Skopje 94.26
27,280
25,714
893
842
2021
InterRisk Towarzystwo Ubezpieczen Spolka Akcyjna
Vienna Insurance Group, Warsaw 100.00
72,346
72,346
14,899
14,899
2021
InterRisk Versicherungs-AG Vienna Insurance
Group, Wiesbaden 100.00
56,120
56,120
17,850
17,850
2021
Joint Stock Insurance Company WINNER LIFE -
Vienna Insurance Group Skopje, Skopje
100.00
4,020
4,020
99
99
2020
KOMUNALNA poistovna, a.s. Vienna Insurance
Group, Bratislava 100.00
74,869
74,869
2,646
2,646
2021
KOOPERATIVA poist'ovna, a.s. Vienna Insurance
Group, Bratislava
94.37
385,574
363,866
38,801
36,617
2021
KUPALA Belarusian-Austrian Closed Joint Stock
Insurance Company, Minsk 52.34
12,100
6,333
3,003
1,572
2020
Group management report | Consolidated financial statements | Management report | Annual financial statements | Service information
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
207
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
682,480
654,089
404,104
387,293
2021
LVP Holding GmbH, Vienna 100.00
622,534
622,534
30,941
30,941
2021
OMNIASIG VIENNA INSURANCE GROUP S.A.,
Bucharest
99.54
143,913
143,251
1,819
1,811
2021
Private Joint-Stock Company "Insurance company"
Ukrainian insurance group", Kiev 6.90
18,653
1,287
656
45
2021
PRIVATE JOINT-STOCK COMPANY "UKRAINIAN
INSURANCE COMPANY "KNIAZHA VIENNA
INSURANCE GROUP", Kiev 90.56
11,478
10,394
1,380
1,250
2021
Private Joint-Stock Company "INSURANCE
COMPANY "KNIAZHA LIFE VIENNA INSURANCE
GROUP", Kiev 97.94
3,407
3,337
408
400
2021
RISK CONSULT Sicherheits- und Risiko-
Managementberatung Gesellschaft m.b.H., Vienna 41.00
718
294
404
166
2020
Ray Sigorta Anonim Sirketi, Istanbul 12.67
28,867
3,657
6,499
823
2021
SIA "Global Assistance Baltic", Riga 33.33
277
92
-23
-8
2021
SIGMA INTERALBANIAN VIENNA INSURANCE
GROUP Sh.A., Tirana 89.05
16,501
14,694
1,871
1,666
2021
TBI BULGARIA EAD in Liquidation, Sofia 100.00
529
529
-39,908
-39,908
2021
UNION Vienna Insurance Group Biztositó Zrt.,
Budapest
98.64
50,774
50,083
7,290
7,191
2021
VIG AM Real Estate, a.s., Prague 100.00
797
797
160
160
2020
VIG Management Service SRL, Bucharest 52.08
8,130
4,234
132
69
2020
VIG Properties Bulgaria AD, Sofia 99.97
3,748
3,747
20
20
2021
VIG RE zajist'ovna, a.s., Prague 55.00
179,835
98,909
21,136
11,625
2021
VIG Services Ukraine, LLC, Kiev 6.98
1,438
100
-195
-14
2021
VIG-CZ Real Estate GmbH, Vienna 90.00
147,538
132,784
40
36
2021
Vienna Insurance Group Polska Spolka z
ograniczona odpowiedzialnoscia, Warsaw
51.43
18,546
9,538
59
30
2020
Vienna International Underwriters GmbH, Vienna 100.00
410
410
50
50
2020
Vienna Life Towarzystwo Ubezpieczen na Zycie
S.A. Vienna Insurance Group, Warsaw 100.00
4,976
4,976
2,609
2,609
2021
Vienna-Life Lebensversicherung AG Vienna
Insurance Group, Bendern 100.00
9,535
9,535
-33
-33
2021
WIENER STÄDTISCHE OSIGURANJE akcionarsko
drustvo za osiguranje Beograd, Belgrade 100.00
55,964
55,964
10,027
10,027
2021
WIENER STÄDTISCHE VERSICHERUNG AG Vienna
Insurance Group, Vienna
90.82
559,209
507,874
86,935
78,954
2021
Joint Stock Insurance Company WINNER-Vienna
Insurance Group, Skopje 100.00
7,461
7,461
315
315
2021
Wiener Osiguranje Vienna Insurance Group a.d.,
Banja Luka
100.00
8,919
8,919
72
72
2021
Akcionarsko drustvo za zivotno osiguranje Wiener
Städtische Podgorica, Vienna Insurance Group,
Podgorica 100.00
5,420
5,420
322
322
2020
Wiener Towarzystwo Ubezpiezen Spolka Akcyjna
Vienna Insurance Group, Warsaw 100.00
34,035
34,035
9,197
9,197
2021
Wiener osiguranje Vienna Insurance Group
dionicko drustvo za osiguranje, Zagreb 97.82
98,736
96,584
6,365
6,226
2021
twinformatics GmbH, Vienna 20.00
2,887
577
340
68
2021
Participations
Erste Asset Management GmbH, Vienna 0.76
136,660
1,039
73,119
556
2021
Wiener Börse AG, Vienna 8.50
166,278
14,134
41,396
3,519
2020
208
Annual Financial Report 2021
V. OTHER DISCLOSURES
The Company has total share capital of
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 the share capital. The
number of shares issued remains unchanged since the
previous financial year.
The Managing Board is not aware of any restrictions on
voting rights or the transfer of shares.
Wiener Städtische Versicherungsverein holds (directly or
indirectly) approximately 72.47 % of the share capital.
No shares have special rights of control. See the following
paragraph for information on the rights of the shareholder
Wiener Städtische Versicherungsverein.
The Managing Board must have at least three and no more
than eight members. The Supervisory Board has between
three and twelve members (shareholder representatives).
The shareholder Wiener Städtische Versicherungsverein
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 mandatory by law or the articles of
association.
Employees who hold shares exercise their voting rights
without a proxy during General Meetings.
The Managing Board is authorised under § 169 Austrian
Stock Corporation Act (AktG) to increase the share capital
of the Company by a nominal amount of up to
EUR 66,443,734.10 by issuing 64,000,000 no-par-value
bearer or registered shares or a combination of the two in
one or more tranches on or before 20 May 2026 against
cash or in-kind contributions. The terms of the shares, the
exclusion of shareholder pre-emption rights, and other
terms and conditions of the share issue are decided by the
Managing Board, subject to Supervisory Board approval.
Preferred shares without voting rights may also be issued,
with rights equivalent to those of existing preferred shares.
The issue prices of common and preferred shares may differ.
The General Meeting of 21 May 2021 authorised the
Managing Board to issue, subject to Supervisory Board
approval, one or more tranches of convertible bonds in
accordance with § 174 AktG with a total nominal value of
up to EUR 2,000,000,000 on or before 20 May 2026, with
conversion or subscription rights for up to 30,000,000
bearer ordinary shares of the Company representing a
share of up to EUR 31,145,500.36 of the share capital,
including authorisation to exclude shareholder pre-emption
rights.
The share capital has consequently been raised in
accordance with § 159 (2) no. 1 AktG by a contingent
capital increase of up to EUR 31,145,500.36 through the
issue of up to 30,000,000 bearer ordinary shares. The
contingent capital increase will only be implemented to the
extent that holders of convertible bonds issued on the basis
of the General Meeting resolution of 21 May 2021 exercise
the subscription or exchange rights they were granted. The
Managing Board has not adopted any resolutions to date
concerning the issuance of convertible bonds based on the
authorisation granted on 21 May 2021.
The General Meeting of 21 May 2021 further authorised the
Managing Board to issue, subject to Supervisory Board
approval in accordance with § 174 (2) AktG, income bonds
with a total nominal value of up to EUR 2,000,000,000.00
in one or more tranches on or before 20 May 2026,
including authorisation to exclude shareholder pre-emption
rights. The Managing Board has not adopted any
resolutions to date regarding the issuance of income bonds
based on this authorisation.
The General Meeting of 21 May 2021 authorised the
Managing Board to acquire the Company’s own ordinary
shares in accordance with § 65(1) no. 8 and (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.
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209
The Managing Board may choose to make the purchase on
the stock exchange, through a public offer or in any other
legally permissible and expedient manner. If the repurchase
is performed via a public offer, the end of the calculation
period is determined based on the date on which the
intention to make a public offer is announced (§ 5 (2) and (3)
of the Austrian Takeover Act (Übernahmegesetz)).
The General Meeting of 21 May 2021 also 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;
– 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-emptive rights was submitted to the
General Meeting.
The Managing Board has not made use of these
authorisations to date. The Company held no own shares
as of 31 December 2021.
As of the balance sheet date, the Company was not party
to any material agreements that would come into effect,
change or terminate if control of the Company were to
change due to a takeover bid, in particular, no agreements
that would affect participations held in insurance companies.
Existing agreements that would come into effect if control
of the Company were to change due to a takeover bid relate
to participations held in other (non-insurance) companies.
No compensation agreements exist between the Company
and its Managing Board members, Supervisory Board
members or employees covering the case of a public
takeover bid.
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 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. The bond is
listed on the Luxembourg Stock Exchange.
A EUR 200,000,000.00 subordinated bond with a term of
30 years was privately placed with international institutional
investors on 6 April 2017. The subordinated bond can be
called for the first time after 10 years by VIG Holding and
satisfies the tier 2 requirements of Solvency II. Inclusion for
trading in the Third Market of the Vienna Stock Exchange
took place on 13 April 2017.
The interest rate is 3.75 % p.a. until 13 April 2027, after
which the bond pays variable interest.
On 15 March 2021, VIG Holding placed a
EUR 300,000,000.00 hybrid capital bond with the principal
shareholder of Vienna Insurance Group, Wiener Städtische
Versicherungsverein, in a private placement. The private
placement has an interest rate of 3.21 % and an unlimited
term. VIG Holding can call the hybrid capital bond for the
first time after 10 years. It satisfies the Solvency II
requirements for a restricted tier 1 instrument and qualifies
as capital based on the requirements of the S&P rating
agency.
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Annual Financial Report 2021
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 term. The bond
is listed on the Vienna Stock Exchange.
THE SUPERVISORY BOARD HAD THE FOLLOWING MEMBERS
IN FINANCIAL YEAR 2021:
Chairman:
Günter Geyer
1
st
Deputy Chairman:
Rudolf Ertl
2
nd
Deputy Chairperson:
Robert Lasshofer (since 6 September 2021)
Georg Riedl (until 6 September 2021)
Members:
Martina Dobringer
Zsuzsanna Eifert (since 15 July 2021)
Gerhard Fabisch
Peter Mihók
Robert Lasshofer (from 15 July to 6 September 2021)
Heinz Öhler
Georg Riedl (since 6 September 2021)
Gabriele Semmelrock-Werzer
Katarína Slezáková
Gertrude Tumpel-Gugerell
THE MANAGING BOARD HAS THE FOLLOWING MEMBERS:
Chairwoman:
Elisabeth Stadler
Deputy Chairman of the Managing Board:
Hartwig Löger (since 15 September 2021)
Members:
Liane Hirner
Peter Höfinger
Gerhard Lahner
Gábor Lehel
Hartwig Löger (until 14 September 2021)
Harald Riener
Peter Thirring
There were
an average of 311 (296) employees, including
Managing Board members
. These employees were
employed in the insurance business and resulted in
personnel expenses of EUR 40,967,000 (EUR 39,431,000).
There were no loans outstanding to
members of the
Managing Board
or members of the Supervisory Board as
of 31 December 2021 (EUR 0).
No
guarantees were outstanding for members of the
Managing Board
or Supervisory Board as of 31 December
2021.
In 2021, the total expenses for severance pay and pensions
of EUR 1,599,000 (EUR 2,479,000) included severance pay
and pension expenses of EUR 1,626,000 (EUR 2,369,000)
for members of the Managing Board and senior manage-
ment in accordance with § 80(1) of the Austrian Stock Cor-
poration Act (AktG).
The Managing Board manages the Company and is also
responsible for management of the Group.
The members of the Managing Board received
EUR 7,243,000 (EUR 6,279,000) from the Company during
the reporting period for their services. Managing Board
members are provided with a company car for both
business and personal use.
The ratio of the fixed and variable income of all VIG Holding
employees versus the Managing Board as a whole was
1 to 11.2 (1 to 11.5) in 2021.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
211
Former members of the Managing Board received
EUR 1,330,000 (EUR 1,149,000).
The
members of the Supervisory Board
received
EUR 695,000 (EUR 578,000) in compensation for their
services to the Company in 2021.
The Company is a group member within the meaning of § 9
of the Austrian Corporate Income Tax Act (KStG) of the
Wiener Städtische Versicherungsverein, Vienna, group of
companies.
The taxable earnings of group members are attributed to
the head of the tax group.
The head of the tax group has entered into agreements with
each group member governing the allocation of positive
and negative tax amounts for the purpose of allocating
corporate income tax charges according to origin. If positive
income is attributed to the parent company, the tax
allocation equals 25 % of the positive income. If negative
income is attributed to the parent company, the negative
tax allocation equals 22.5 % of the current tax loss.
A receivable of EUR 97,576,000 (EUR 118,520,000) is
owed by the parent company.
The Company is included in the consolidated financial
statements prepared by Wiener Städtische Versicherungs-
verein, which has its registered office in Vienna. The
consolidated financial statements have been disclosed and
are available for inspection at the business premises of this
Company located at Schottenring 30, 1010 Vienna.
VI. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE
AEGON Hungary
O
n 16 February 2022, VIG Holding and the Hungarian
state-owned holding company Corvinus Nemzetközi
Befektetési Zrt. (“Corvinus”) reached agreement on the
details of their cooperation, whose main features had been
set down in the memorandum of understanding of 23
December 2021. Corvinus will receive a 45 % interest in the
Hungarian VIG companies under the cooperation. The
agreement was signed on 21 February 2022 in Budapest.
The Hungarian VIG companies will be held by the Hungarian
holding company (VIG Magyarország Befektetési Zrt.) and
two Dutch holding companies (Aegon Hungary Holding B.V.,
Aegon Hungary Holding II B.V.) in the future. Corvinus will
acquire a non-controlling 45 % minority interest in each of
these three holding companies. The total purchase price
agreed for the three 45 % interests in the holding companies
is around EUR 350 million.
Closing of the transaction is subject to the approvals
required under supervisory and competition law.
Conflict between Russia and Ukraine
The current political situation in Ukraine is also creating
uncertainty in financial markets, among other things. VIG
Holding holds bonds issued by the Russian Federation and
companies related to the Russian Federation with a nominal
value of EUR 7.2 million. It was not possible to estimate the
degree to which the Company would be affected by the
editorial deadline.
Change in the Austrian tax rate
The National Council passed the Austrian 2022 Tax Reform
on 20 January 2022. As a result of the reform, the corporate
income tax rate will be reduced in stages from 25 % to 24 %
in 2023 and to 23 % in 2024. The effect this will have on the
calculation of deferred taxes cannot yet be reliably
quantified.
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Annual Financial Report 2021
PROPOSED APPROPRIATION OF PROFITS
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe (VIG Holding) ended financial year 2021 with net retained
profits of EUR 338,351,602.38. The following appropriation of profits will be proposed in the Annual General Meeting:
The 128 million shares shall receive a dividend of EUR 1.25 per share. The payment date for this dividend will be 25 May
2022, the record date 24 May 2022, and the ex-dividend date 23 May 2022.
A total of EUR 160,000,000.00 will therefore be distributed. The net retained profits of EUR 178,351,602.38 remaining for
financial year 2021 after distribution of the dividend is to be carried forward.
Vienna, 16 March 2022
The Managing Board:
Elisabeth Stadler
General Manager, Chairwoman of
the Managing Board
Hartwig Löger
Deputy General Manager,
Deputy Chairman of
the Managing Board
Liane Hirner
CFRO, Member of
the Managing Board
Peter Höfinger
Member of
the Managing Board
Gerhard Lahner
COO, Member of the Managing
Board
Gábor Lehel
CIO, Member of
the Managing Board
Harald Riener
Member of
the Managing Board
Peter Thirring
CTO, Member of
the Managing Board
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
213
AUDITOR’S REPORT
REPORT ON THE FINANCIAL STATEMENTS
Audit Opinion
We have audited the financial statements of
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe,
Vienna, Austria,
which comprise the Balance Sheet as at 31 December
2021, 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
at 31 December 2021 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 on the future business
development. Other factors are the assumed long-term
growth rate as well as the underlying region-specific costs
of capital.
214
Annual Financial Report 2021
Our Response
We have carried out the following main audit procedures in
connection with the recoverability of investments in affiliated
insurance companies:
– We have compared the respective book values with the
proportionate equity of the companies.
– We have assessed the appropriateness of key
assumptions, of discretionary decisions and of the
valuation method applied for investments in affiliated
companies.
– We have reconciled the expected future cash flows
used in the calculation with the strategic business
planning approved by the management.
– 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 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 mis-
statement, whether due to fraud or error.
Management is also responsible for assessing the
Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting, unless
management either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do
so.
The audit committee is responsible for overseeing the
Company’s financial reporting process.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
215
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, misrepresen-
tations or the override of internal control.
– We obtain an understanding of internal control relevant
to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness
of the entity's internal control.
– We evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management.
– We conclude on the appropriateness of management’s
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a
material uncertainty exists related to events or
conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are
required to draw attention in our audit report to the
respective note in the financial statements. If such
disclosures are not appropriate, we will modify our audit
opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the
Company to cease to continue as a going concern.
– We evaluate the overall presentation, structure and
content of the financial statements, including the notes,
and whether the financial statements represent the
underlying transactions and events in a manner that
achieves fair presentation.
– We communicate with the audit committee regarding,
amongst other matters, the planned scope and timing
of our audit as well as significant findings, including any
significant deficiencies in internal control that we identify
during our audit.
– We communicate to the audit committee that we have
complied with the relevant professional requirements in
respect of our independence, that we will report any
relationships and other events that could reasonably
affect our independence and, where appropriate, the
related safeguards.
– 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
216
Annual Financial Report 2021
unless laws or other legal regulations preclude publ
ic
disclosure about the matter or when in very rare cases,
we determine that a matter should not be included in
our audit report because the negative consequences of
doing so would reasonably be expected to outweigh
the public benefits of such communication.
REPORT ON OTHER LEGAL REQUIREMENTS
Management Report
I
n accordance with Austrian company law, the manage-
ment 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 25 September 2020 and were appointed by the
supervisory board on 22 October 2020 to audit the financial
statements of VIENNA INSURANCE GROUP AG Wiener
Versicherung Gruppe, Vienna.
In addition, during the Annual General Meeting on 21 May
2021, we have been elected as auditors for the following
financial year and appointed by the supervisory board on
2 June 2021.
We have been auditors of the Company, without
interruption, since the consolidated financial statements at
31 December 2013.
We declare that our opinion expressed in the "Report on the
Financial Statements" section of our report is consistent
with our additional report to the audit committee, in
accordance with Article 11 AP Regulation.
We declare that we have not provided any prohibited non-
audit services (Article 5 Paragraph 1 AP Regulation) and
that we have ensured our independence throughout the
course of the audit, from the audited Company.
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
217
ENGAGEMENT PARTNER
The engagement partner is Mr Thomas Smrekar.
Vienna, 16 March 2022
KPMG Austria GmbH
Wirtschaftsprüfungs- und Steuerberatungsgesellschaft
signed by:
Mag. Thomas Smrekar
W
irtschaftsprüfer
(Austrian Chartered Accountant)
This report is a translation of the original report in German, which is solely valid.
The financial statements, together with our auditor's opinion, may only be published if the financial statements and the management report are identical with the audited version attached to this report. Section
281 Paragraph 2 UGB (Austrian Commercial Code) applies.
218
Annual Financial Report 2021
DECLARATION BY THE MANAGING BOARD
We declare to the best of our knowledge that the annual
financial statements of VIENNA INSURANCE GROUP AG
Wiener Versicherung Gruppe prepared in accordance with
the requirements of Austrian commercial law and the
Austrian Insurance Supervision Act (VAG) give a true and
fair view of the Company’s net assets, financial position and
results of operations, the management report presents the
business development, performance and position of the
Company so as to give a true and fair view of its net assets,
financial position and results of operations, and the
management report provides a description of the principal
risks and uncertainties to which the Company is exposed.
Vienna, 16 March 2022
The Managing Board:
Elisabeth Stadler
General Manager, Chairwoman of
the Managing Board
Hartwig Löger
Deputy General Manager,
Deputy Chairman of
the Managing Board
Liane Hirner
CFRO, Member of
the Managing Board
Peter Höfinger
Member of
the Managing Board
Gerhard Lahner
COO, Member of
the Managing Board
Gábor Lehel
CIO, Member of
the Managing Board
Harald Riener
Member of the Managing Board
Peter Thirring
CTO, Member of the Managing
Board
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
219
SUPERVISORY BOARD REPORT
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 expla-
nations 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.
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. VIG Holding is committed to
social responsibility and the importance of having
employees drive forward performance, innovation and
expertise. Goal fulfilment for Managing Board members
also depended on both financial and non-financial criteria in
the 2021 reporting year. Detailed information on the
principles underlying the remuneration system is available in
the remuneration policy and 2021 remuneration report.
The Supervisory Board has formed five committees from its
members.
Information on the responsibilities and composition of these
committees is available on the Company’s website and in
the 2021 consolidated corporate governance report.
One Annual General Meeting and five Supervisory Board
meetings distributed across the financial year were held in
2021. Five meetings of the Audit Committee (Accounts
Committee) were also held. Some of the meetings were
held without the physical presence of the participants in
accordance with § 1 of the Austrian Corporate COVID-19
Act (COVID-19-GesG). The Annual General Meeting was
held as a virtual Annual General Meeting on the basis of § 1
(2) COVID-19-GesG and the COVID-19-GesV. The financial
statement and consolidated financial statement auditor,
KPMG Austria GmbH Wirtschaftsprüfungs- und Steuer-
beratungsgesellschaft, FN 269873y (KPMG), attended four
Audit Committee meetings and three Supervisory Board
meetings in 2021, including the Supervisory Board meeting
that addressed the audit of the 2020 annual financial
statements and the 2020 consolidated financial statements
as well as formal approval of the 2020 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. Three
meetings of the Committee for Managing Board Matters
(Personnel Committee) were held in 2021. The Committee
for Urgent Matters (Working Committee) held one meeting.
The Strategy Committee and Nomination Committee did
not meet in 2021. Strategic matters were handled by the
Supervisory Board as a whole.
No agenda items were discussed in Supervisory Board
meetings in 2021 without the participation of members of
the Managing Board.
No member of the Supervisory Board attended less than
half of the Supervisory Board meetings. Detailed
information on meeting attendance by Supervisory Board
members in financial year 2021 is available in the 2021
Corporate Governance Report. In order to ensure the
effectiveness and efficiency of its activities and procedures,
the Supervisory Board performed a self-evaluation of its
procedures. The Supervisory Board’s evaluation of its
activities found that its organisational structure and
procedures were satisfactory in terms of efficiency and in
compliance with the law. It found no need for change or
desire for change in the practices followed to date.
Acting upon the proposal and motion of the Supervisory
Board, the general meeting of 25 September 2020 selected
KPMG to be the financial statements auditor and
consolidated financial statements auditor for financial year
2021, and KPMG consequently performed these duties in
financial year 2021.
The Audit Committee mainly dealt with the following topics
in 2021:
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Annual Financial Report 2021
During one meeting of the Audit Committee, the members
of the committee consulted with the (consolidated) financial
statements auditor on 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. While reviewing and monitoring the
independence of the financial statements auditor and
consolidated financial statements auditor, the Audit
Committee did not find any circumstances that would raise
doubts about its independence and impartiality.
The Audit Committee also dealt with the VIG Holding and
VIG Group ORSA reports and the IT security report in 2021
and reported on them to the Supervisory Board. The Audit
Committee monitored the effectiveness of the internal
control system, internal audit and the risk management
system by obtaining descriptions of the processes and
organisation of these systems from the Managing Board,
the (consolidated) financial statements auditor and the
individuals directly responsible for these areas and deemed
them, including the IT security measures, to be effective.
The Audit Committee reported on these monitoring
activities to the Supervisory Board and stated that no
deficiencies had been identified. The Supervisory Board
was also given the opportunity during Supervisory Board
meetings to verify the functional adequacy of the existing
control and auditing systems. In addition, the audit plan and
the quarterly reports prepared by the internal audit
department were debated by the Audit Committee and the
Supervisory Board and discussed with the head of the
internal audit department and the Group internal audit
department.
The Audit Committee examined the Solvency and Financial
Condition Reports (SFCRs) at both the solo and Group
levels and reported its findings to the Supervisory Board.
No facts or circumstances were found that would have
provided grounds for objection.
In 2021, the Audit Committee dealt with the selection of the
financial statement and consolidated financial statement
auditor for financial year 2022 and also carried out a
selection procedure for appointing the financial statement
and consolidated financial statement auditor for financial
year 2023 and submitted a proposal to the Supervisory
Board, with a statement of reasons. 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 insights of these evaluations and proposed to the
Supervisory Board and subsequently to the general
meeting that KPMG be selected 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 2022.
The Audit Committee also received the 2021 annual
financial statements, management report, 2021
consolidated corporate governance report and 2021
sustainability report (consolidated non-financial report) from
the Managing Board, and reviewed and carefully examined
them. The Managing Board’s proposal for 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 2021 consolidated
financial statements and Group management report. In
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
221
addition, the auditor’s reports prepared by (consolidated)
financial statements auditor KPMG for the 2021 annual
financial statements and management report and the 2021
consolidated financial statements and Group management
report were reviewed by the Audit Committee and
examined. As a result of this examination, a unanimous
resolution was adopted to recommend to the Supervisory
Board that the annual financial statements be accepted.
The Supervisory Board found no grounds for objection.
The (consolidated) financial statements auditor provided the
Audit Committee with an additional report in accordance
with Art. 11 of Regulation (EU) No. 537/2014 on specific
requirements regarding statutory audit of public-interest
entities 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, along with an explanation of how the financial
statement audit had contributed to the reliability of the
financial reporting and what role the Audit Committee had
played.
The Supervisory Board also dealt with IT security issues in
financial year 2021.
The Managing Board and Supervisory Board prepared a
remuneration report for financial year 2021.
In 2021, the Supervisory Board appointed Hartwig Löger as
Deputy Chairman of the Managing Board effective 15
September 2021.
The Supervisory Board concurred with the Audit
Committee’s proposal for the financial statement and
consolidated financial statement auditor for 2023.
The 2021 annual financial statements together with the
management report and 2021 consolidated corporate
governance report, the 2021 consolidated financial
statements together with the Group management report,
and the Managing Board’s proposal for appropriation of
profits were taken up and examined in detail by the
Supervisory Board. The appropriation of profits proposal
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 in light of the COVID-19 pandemic. The
proposal is in line with the continuously pursued prudent
and sustainable capital planning to ensure a solid solvency
and liquidity position in the long term.
The Supervisory Board also dealt with important
sustainability issues. Sustainability – such as the EU
requirements for sustainable finance or an update on
dealing with sustainability risks – was regularly discussed in
Supervisory Board meetings during the reporting period.
The Supervisory Board also received the 2021 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 2021 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 2021 annual
financial statements and management report and the 2021
consolidated financial statements and Group management
report were reviewed by the Supervisory Board and
examined. KPMG’s audit of the 2021 annual financial
statements and management report and the 2021
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 2021, and of the results of operations of the
Company for financial year 2021 in accordance with
Austrian generally accepted accounting principles. The
management report is consistent with the annual financial
statements. The disclosures pursuant to § 243a UGB
(Austrian Commercial Code) are appropriate. KPMG further
determined that the consolidated financial statements also
comply with statutory requirements and give a true and fair
222
Annual Financial Report 2021
view of the net assets and financial position of the
Group as
of 31 December 2021, and of the results of operations and
cash flows of the Group for financial year 2021 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 2021 sustainability report (consolidated non-financial
report) and determined in accordance with § 269 (3) UGB
that the 2021 consolidated corporate governance report
had been prepared.
The final results of the review by the Supervisory Board did
not provide any basis for reservation either. The Supervisory
Board stated that it had nothing to add to the auditor’s
reports for the financial statements and consolidated
financial statements.
After thorough examination, the Supervisory Board
therefore adopted a unanimous resolution to approve the
2021 annual financial statements prepared by the
Managing Board, not to raise any objections to the
management report, the 2021 consolidated financial
statements and Group management report, the 2021
consolidated corporate governance report and the 2021
sustainability report (consolidated non-financial report) and
to agree with the Managing Board proposal for
appropriation of profits.
The 2021 annual financial statements have therefore been
approved in accordance with § 96 (4) AktG (Austrian Stock
Corporation Act).
The Supervisory Board proposes to the General Meeting
that it approves the Managing Board’s proposal for
appropriation of profits and formally approves the actions of
the Managing Board and Supervisory Board.
Vienna, April 2022
The Supervisory Board:
Günter Geyer (Chairman)
Gr
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
223
Service
information
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Annual Financial Report 2021
LIST OF ABBREVIATIONS
Abbreviation Full company name
APEIRON APEIRON Biologics AG
Asirom Asigurarea Românească - ASIROM Vienna Insurance Group S.A., Bucharest
BCR Life BCR Asigurări de Viaţă Vienna Insurance Group S.A., Bucharest
Beteiligungs- und Wohnungsanlagen GmbH Beteiligungs- und Wohnungsanlagen GmbH, Linz
BTA Baltic BTA Baltic Insurance Company AAS, Riga
Bulstrad Life BULSTRAD LIFE VIENNA INSURANCE GROUP JOINT STOCK COMPANY, Sofia
Bulstrad Non-Life
INSURANCE ONE-SHAREHOLDER JOINT-STOCK COMPANY BULSTRAD VIENNA INSURANCE
GROUP EAD, Sofia
Compensa Life (Estonia)
1
Compensa Life Vienna Insurance Group SE, Tallinn
Compensa Life (Poland)
1
Compensa Towarzystwo Ubezpieczeń Na Życie S.A. Vienna Insurance Group, Warsaw
Compensa Non-Life (Lithuania)
1
"Compensa Vienna Insurance Group", ADB, Vilnius
Compensa Non-Life (Poland)
1
Compensa Towarzystwo Ubezpieczeń S.A. Vienna Insurance Group, Warsaw
Corvinus Corvinus Nemzetközi Befektetési Zrt.
ČPP Česká podnikatelská pojišťovna, a.s., Vienna Insurance Group, Prague
Digital Impact Labs Leipzig Digital Impact Labs Leipzig GmbH
Donaris Compania de Asigurări "DONARIS VIENNA INSURANCE GROUP" Societate pe Actiuni, Chișinău
Donau Versicherung DONAU Versicherung AG Vienna Insurance Group, Vienna
Erste Group Erste Group Bank AG, Vienna
Erste Heimstätte GmbH EGW Erste gemeinnützige Wohnungsgesellschaft mbH, Vienna
Globus CAL ICAL "Globus", Kiev
GPIH Joint Stock Company Insurance Company GPI Holding, Tbilisi
InterRisk InterRisk Towarzystwo Ubezpieczeń S.A. Vienna Insurance Group, Warsaw
InterRisk Life InterRisk Lebensversicherungs-AG Vienna Insurance Group, Wiesbaden
InterRisk Non-Life InterRisk Versicherungs-AG Vienna Insurance Group, Wiesbaden
Intersig INTERSIG VIENNA INSURANCE GROUP Sh.A., Tirana
IRAO Joint Stock Company International Insurance Company IRAO, Tbilisi
ISTCube IST cube (EuVECA) GmbH & Co KG
Kniazha
PRIVATE JOINT-STOCK COMPANY "UKRAINIAN INSURANCE COMPANY "KNIAZHA VIENNA
INSURANCE GROUP", Kiev
Kniazha Life
PRIVATE JOINT-STOCK COMPANY "INSURANCE COMPANY "KNIAZHA LIFE VIENNA INSURANCE
GROUP", Kiev
Komunálna KOMUNÁLNA poisťovňa, a.s. Vienna Insurance Group, Bratislava
Kooperativa (Slovakia)
1
KOOPERATIVA poisťovňa, a.s. Vienna Insurance Group, Bratislava
Kooperativa (Czech Republic)
1
Kooperativa pojišťovna, a.s., Vienna Insurance Group, Prague
Health Health insurance
Life Life insurance
Makedonija Osiguruvanje
Stock Company for Insurance and Reinsurance MAKEDONIJA Skopje - Vienna Insurance Group,
Skopje
n/a not applicable
Nova Insurance Company Nova Ins EAD, Sofia
OePR Austrian Financial Reporting Enforcement Panel
Österreichisches Verkehrsbüro AG
Österreichisches Verkehrsbüro Aktiengesellschaft, Vienna
(Consolidated Financial Statements)
PAC Doverie Pension Assurance Company Doverie AD, Sofia
Plug&Play Plug and Play Austria GmbH
Ray Sigorta Ray Sigorta A.Ş., Istanbul
S-budovy S - budovy, a.s., Prague
Property/Casualty Property and casualty insurance
Seesam Seesam Insurance AS, Tallinn
Sigma Interalbanian Sigma Interalbanian Vienna Insurance Group Sh.a, Tirana
TUW "TUW" Towarzystwo Ubezpieczeń Wzajemnych „TUW", Warsaw
Service information
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VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
225
Abbreviation Full company name
UIG Private Joint-Stock Company "Insurance company" Ukrainian insurance group", Kiev
Union Biztosító UNION Vienna Insurance Group Biztosító Zrt., Budapest
VBV - Betriebliche Altersvorsorge AG
VBV - Betriebliche Altersvorsorge AG, Vienna
(Consolidated Financial Statements)
VENPACE INSHIFT GmbH & Co. KG
Vienna Life (Poland)1 Vienna Life Towarzystwo Ubezpieczeń na Życie S.A. Vienna Insurance Group, Warsaw
Vienna osiguranje (Bosnia and Herzegowina)1 Insurance Company Vienna osiguranje d.d., Vienna Insurance Group, Sarajevo
Vienna-Life (Liechtenstein)1 Vienna-Life Lebensversicherung AG Vienna Insurance Group, Bendern
VIG/C-QUADRAT VIG/C-QUADRAT TOWARZYSTWO FUNDUSZY INVESTYCYJNYCH SPÓŁKA AKCYJNA, Warsaw
VIG Fund VIG FUND, a.s., Prague
VIG-insurance group2 VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe, Vienna
VIG Holding3 VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe, Vienna
VIG Re VIG RE zajišťovna, a.s., Prague
VIG-AT Beteiligungen VIG-AT Beteiligungen GmbH, Vienna
Wiener Osiguranje (Croatia)1 Wiener osiguranje Vienna Insurance Group dioničko društvo za osiguranje, Zagreb
Wiener Osiguranje (Bosnia and Herzegowina)1 Wiener Osiguranje Vienna Insurance Group ad, Banja Luka
Wiener Re "WIENER RE" akcionarsko društvo za reosiguranje, Belgrade
Wiener Städtische WIENER STÄDTISCHE VERSICHERUNG AG Vienna Insurance Group, Vienna
Wiener Städtische Osiguranje (Serbia)1 WIENER STÄDTISCHE OSIGURANJE akcionarsko drustvo za osiguranje, Belgrade
Wiener Städtische Versicherungsverein
Wiener Städtische Wechselseitiger Versicherungsverein - Vermögensverwaltung - Vienna
Insurance Group, Vienna
Wiener TU WIENER TOWARZYSTWO UBEZPIECZEŃ SPÓŁKA AKCYJNA VIENNA INSURANCE GROUP, Warsaw
Winner Life Joint Stock Insurance Company WINNER LIFE - Vienna Insurance Group, Skopje
Winner Non-Life Joint Stock Insurance Company WINNER-Vienna Insurance Group, Skopje
1
Country names in parentheses are added if there is more than one company with the same abbreviated name and it is not clear from the context which one is intended. The context is assumed to be clear,
for example, if the name is used in a description of activities taking place within a country.
2
Used when referring to consolidated VIG-Group companies.
3
Used when referring to the individual company.
226
Annual Financial Report 2021
NOTICE
This annual report includes forward-looking statement
s
based on current assumptions and estimates that were
made by the management of VIENNA INSURANCE GROUP
AG Wiener Versicherung Gruppe to the best of its
knowledge. Disclosures using the words "expected",
"target" or similar formulations are an indication of such
forward-looking statements. Forecasts related to the future
development of the Company are estimates made on the
basis of information available as of the date this report went
to press. Actual results may differ from the forecasts if the
assumptions underlying the forecast prove to be wrong or
if unexpectedly large risks occur.
Calculation differences may arise when rounded amounts
and percentages are summed automatically.
The annual report was prepared with great care to ensure
that all information is complete and accurate. The possibility
of rounding, typesetting or printing errors, however, cannot
be ruled out completely.
ADDRESS
VIENNA INSURANCE GROUP AG
W
iener Versicherung Gruppe
Schottenring 30
1010 Vienna
Phone: +43 (0) 50 390 22000
WEBSITE – ONLINE REPORT
The annual report is available in German and English
on our
Internet website (www.vig.com) under Investor Relations
and can also be downloaded in both languages as a PDF
file.
Service tip Online annual report
The VIG Insurance Group website provides an online
version of the annual report
that is optimised for both the
Internet and mobile devices. All sections may be
downloaded in PDF form. You can also download the most
important tables as Excel files. Other features such as links
within the report and a comparison with the previous year
c
reate transparency and take you directly to the information
being sought. The online version of the report also allows
you to perform a full-
text search quickly and easily. The
search results are presented on an overview page, sorted
by relevance. The term
being searched for is highlighted in
colour on this page and on the page in the report.
In case of doubt, the German version is authoritative
Editorial deadline: 14 March 2022
Annual Financial Report 2021
Group Annual Report 2021 VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe