VIG states dynamic growth in many markets

Vienna Insurance Group is the leading insurance group in Austria and the CEE region and recorded a very good business development in 2014, the company announced in a release.

2015-01-27 13:11:59

The Group wrote direct unconsolidated premiums of around EUR 9.4 billion, thereby reaching the same level as the previous year in spite of negative exchange rate effects. Organic growth was 2.6 percent without special effects. With premium growth of 10 percent the countries consolidated in the "Remaining Markets" segment prove their great potential.


In spite of considerable exchange rate effects (105 million Euro) and a large reduction in Donau
Versicherung Italian business (96 million Euro), premiums of around 4.7 billion Euro were once again achieved in the property and casualty segment.

In Austria, the above-average growth recorded by Wiener Stadtische Versicherung compensated for the reduction in Italian business. Vienna Insurance Group increased its property and casualty premiums by around three percent in local currency terms in the two established CEE markets Czech Republic and Slovakia.

Although the market environment continues to be difficult in Romania, the measures taken there began to show an effect. For the first time in years, the property and casualty business showed a slight increase of 0.3 percent in local currency terms.

The countries in the "Remaining Markets" segment once again recorded highly dynamic growth. In
Georgia and Albania, property and casualty business showed impressive growth of around 50 percent each in local terms. A significantly double-digit growth was notably achieved also in Serbia, Macedonia and Bosnia. This illustrates the strategic importance of Vienna Insurance Group′s presence throughout the entire CEE region.

Due to strong competition in many countries in the motor business, Vienna Insurance Group intentionally focused on other property insurance and generated growth by this differentiated market approach. Particularly noteworthy are the increases achieved in this sector in Austria (+3.9 percent) and Slovakia (+7.7 percent). The smaller CEE markets also recorded good performance in the property lines of business. Remarkable growth, for example, was achieved in Croatia (+6.6 percent), Serbia (+24.3 percent), Bosnia (+60.3 percent) and Georgia (+74.8 percent) in local terms.


Vienna Insurance Group recorded an increase of 1.4 percent in life insurance premiums to around 4.3 billion Euro. The growth in life insurance was mainly due to distribution successes in the Remaining Markets segment. The overall growth in this line of business is all the more gratifying given
the significant decrease in low-margin short-term single-premium business that was once again
recorded in Poland.

In Austria, the strong growth of 8.5 percent achieved in single-premium business was primarily driven by the dynamic performance of Wiener Stadtische Versicherung. In addition, group companies in many CEE markets achieved double-digit growth in local terms in the single-premium business.
Particularly noteworthy examples are the Baltic States (+29.2 percent), Bulgaria (+39.0 percent),
Croatia (+44.6 percent) and Hungary (+35.2 percent).

Vienna Insurance Group (VIG) is the leading insurance specialist in Austria as well as in Central and Eastern Europe. About 50 companies in 25 countries form a Group with a long-standing tradition, strong brands and close customer relations. VIG looks back on 190 years of experience in the insurance business. With about 23,000 employees, Vienna Insurance Group is the clear market leader in its core markets. It is therefore excellently positioned to take advantage of the long-term growth opportunities in a region with 180 million people. The listed Vienna Insurance Group is the best-rated company of ATX, the leading index of Vienna Stock Exchange; its share is also listed on the Prague Stock Exchange.
The Ungheni-Iasi - Targu-Mures motorway, included in the road transport master plan

The Government has included the Ungheni-Iasi (northeastern Romania) - Targu-Mures (centre) motorway in the road transport master plan to be sent to the European Commission, Prime Minister Victor Ponta announced recently. He mentioned that works might begin at the earliest in 2016.

Ponta said the plan was to secure full financing through the Sectoral Operational Programme for transportation, but possible contestations might delay the project.

The master plan states precise deadlines and financing sources for the feasibility studies, as well as a schedule for the execution, the prime minister added. The document has to be approved by the government before being sent to the Parliament, then to the European Commission.