Strategic Programme “VIG 25”

Based on the trends for the insurance industry, the "VIG 25" strategic programme, which runs until 2025, is being implemented. Within this strategic programme, the VIG Group is setting goals and measures that focus on financial stability and profitability, customer proximity, sustainability and market growth. 

“VIG 25” – a response to current trends

To continue the success story of the Group, Vienna Insurance Group has intensively analysed the trends and developments in the insurance industry. The further optimisation of our business model to increase efficiency, strengthening alternative distribution channels and expanding services are among the key directions of our activities until 2025. Digitalisation will continue to be a focus area, where the measures already implemented have greatly helped to maintain contact and customer service during the pandemic. In addition to expanding the leading market position in CEE, the program aims in particular to create sustainable value and achieve ESG-related goals.

The three “VIG 25” Group targets

Our key objective clearly remains not only to strengthen but to further expand our leading position in the CEE region and to create sustainable value for society, customers and employees. When defining the Group's targets, we therefore deliberately placed a strong focus on social commitment in addition to financial key figures, as it is a special concern of ours to anchor this topic more firmly in the CEE markets.

Premium income of around EUR 12.3 billion targeted by the end of 2025
The Vienna Insurance Group has defined financial parameters aimed at supporting the creation of sustainable value. The Group is targeting a premium volume of around EUR 12.3 billion by the end of 2025. This represents an average annual increase in premium income of about EUR 380 million, based on the EUR 10.4 billion recorded in 2020. The aim is to achieve a combined ratio of less than 95%. Based on the new strategy, and considering the current operating environment, the objective for the solvency ratio is between 150% and 200%; this range does not take into account the transitional measures which the Group is currently making use of. A new indicator, operating return on equity (RoE), will be presented in external communications starting with the full-year results for 2021.

Value creation
Over the coming years, the Group will initiate various measures focused on society, customers and employees under the “VIG 25” strategy programme, in line with its promise “protecting what matters”. These include an increase in green investments, as well as the newly defined goal of making office operations at all Group companies climate-neutral by 2030 at the latest. The social aspect includes, for example, promoting equal opportunities for society by supporting disadvantaged population groups. We grant one working day per year to each employee who supports a good cause or social organisation. A programme designed to raise awareness of the importance of retirement saving and the benefits of insurance will be launched in three-quarters of the CEE markets by 2025. The idea is to play an active role in promoting financial literacy through initiatives to raise awareness and knowledge, build networks and provide individual risk solutions. To ensure that our employees remain qualified in ESG topics, an annual budget of up to the average insurance premium paid in the respective employee’s country of residence will be invested in their education and training until 2025.

Sharpened country portfolios
Vienna Insurance Group is taking steps to enhance its comparative cost advantage and its proximity to customers. In order to satisfy the needs of VIG’s diversified local markets – which are developing in different ways – even more effectively, the VIG Group will make a distinction between its core Central and Eastern Europe (CEE) market, which comprises 20 countries including Austria, and ten special markets (Belarus, France, Georgia, Germany, Liechtenstein, Italy, Nordics and Turkey), each of which will have their own specific objectives.