IFRS 17/9 Teach-In

The new accounting standards IFRS 17 and IFRS 9 will become effective on January 1, 2023 and will change how results are presented. However, IFRS 17/9 does neither change VIG's strategy, nor how we run our business. 

Liane Hirner, CFRO, Roland Goldsteiner, Head of Finance and Werner Matula, Chief Actuary provided an overview on the effects on VIG's accounting in a virtual event on 14 December 2022.

IFRS 17/9: Implications and indications for the future reporting of Vienna Insurance Group

P&C

• P&C business will primarily be based on Premium Allocation Approach (PAA), therefore only limited changes to IFRS 4
• Combined Ratio as KPI will remain, although the calculation will change due to new IFRS 17 presentation

Life / Health

• In Life and Health insurance, the presentation of the Contractual Service Margin (CSM) improves the clarity of profit drivers and better reflects the long-term nature of the business
• New KPIs in Life and Health are the CSM and the New Business CSM
• Different measurement models - General Measurement Model (GMM) und Variable Fee Approach (VFA) - will be applied in Life; application of VFA for long-term health business
• Around 75% of technical reserves in VFA
• Investment component of benefits not presented in P&L anymore

Balance sheet

• IFRS 17 equity (excluding CSM) at comparable level as under IFRS 4
• IFRS 17 equity (including CSM and adjusted for hidden reserves related to real estate and intangible assets) at level of SII Own Funds
• Total assets under IFRS 17/9 slightly below IFRS 4 level; in total above €50 billion

Documents related to the event

Timeline

• 19/04/2023
  Group Annual Report 2022: includes information on IFRS 9 and IFRS 17 transition impacts
  Excerpt of the Group Annual Report 2022 regarding IFRS 9 and IFRS 17 for download

• 30/08/2023
  Results for the first half-year 2023 and half-year financial report (IAS 34): according to IFRS 9 and IFRS 17