DIVERSITY
WITH ADDED VALUE
Sustainability Report 2023
HIGHLIGHTS 2023
Since July 2023, VIG Holding has had a
new Managing
Board.
Former Chairwoman Elisabeth Stadler and former member of the Managing Board Peter Thirring chose not to extend their mandates. Hartwig Löger, who served as Deputy Chairman, took over the leadership of the Board, while Managing Board member Peter Höfinger stepped into the role of Deputy Chairman.
See interview with Hartwig Löger on page 20
As part of the VIG 25 strategic programme, the Group also developed a new sustainability programme. In a collaborative process with the VIG insurance companies,
6 spheres of
impact
with specific focal points were defined.
See page 12
In 2023, VIG expanded its approach towards
responsible investment.
Existing criteria for investment decisions
were tightened and supplemented
with new criteria.
See page 30
The Ringturm building in Vienna, VIG's head office that was built in the 1950s, has been compliant with EU Taxonomy requirements since 2023 and is therefore considered
officially
environmentally
friendly.
Aspects that contributed to this certification include the use of district cooling, LED lighting, thermal refurbishment and the installation of photovoltaic systems.
See page 44
Underwriting and claims experts from 30 Group companies took part in the training programme
VIG Renewable Days
to deepen their knowledge of renewable energies. VIG is supporting the energy transition by insuring wind, solar and other green power plants and building up the corresponding
know-how within the Group.
See page 40
Motor vehicle insurance customers are receiving valuable services through a new app that provides information on driving behaviour and rewards
responsible
driving
through a cashback programme. The app is currently being offered by Kooperativa in the Czech Republic and Wiener TU in Poland, with further companies expected to follow in 2024.
See page 61
A survey carried out in 2023 showed that many people are not even aware of certain risks. A focal point of VIG's sustainability programme is therefore the promotion of
risk literacy
in their markets. Better education in regard to risks will help the public to adequately protect themselves.
See page 64
VIG Holding took
first place
among all insurance companies in Austria, Germany and Switzerland in the "Best Recruiters" study. Of all 1,200 companies considered, VIG Holding was ranked third. The award takes employer branding and recruitment activities into account.
See page 54
Diversity is one of VIG's core values. It does not consider itself as a purely centrally managed group, but rather as a group of companies that act independently. This enables quick decision-making,motivates our approximately 29,000 employees, and makes VIG flexible and innovative. This is also expressed on the covers of the
2023 reports. Diversity creates added
value - both for VIG and for its stakeholders.
Consolidated non-financial report
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe publishes this consolidated non-financial report (Sustainability Report) in addition to its Group Annual Report. The titles of the two reports this year are "Added Value Through Diversity" and "Diversity with Added Value". Together they express the holistic approach of the Group.
For VIG, economic success, social responsibility and environmental awareness belong together. This is because both a healthy environment and a functioning society are required for a future worth living. Because VIG thinks ahead, it is able to grow sustainably and meet the challenges of the future.
Dear Ladies and Gentlemen,
"Our resilience and stability are the prerequisites for achieving sustainable value."
VIG is special. This is exactly why it can make a difference. As a group of over
50 companies with some 29,000 employ- ees, we have an impact on the lives of a great number of people: for our approximately 32 million customers, we protect what matters. We also have an impact on our shareholders, the national economies in which we operate, local communities, the environment, and even future genera- tions. With our VIG 25 sustainability pro- gramme, we aim to ensure that this impact is positive and sustainable.
What makes VIG special? We put the core value of diversity into practice. This is reflected in our decentralised structure and in the vast scope for decision-making given to our local insurance companies. This makes us flexible as well as innovative - and therefore resilient. Our resilience and stability are the prerequisites for achieving sustainable value.
Sustainability for us means not least a profitable business model that ensures the Group's continued economic existence. At the same time, we want to generate added value for all of our stakeholders. This position has been embodied by our Group from the very beginning. What has changed in recent years, though, is that we have made this position explicit and have systematically embedded it into our business model.
The most recent milestone of this development is our VIG 25 sustainability programme, which we created in 2023 in collaboration with the CEOs of all Group companies. The programme sets out six spheres of impact in which VIG has a particularly relevant impact and, therefore, can make a particularly significant differ-
ence. We want to therefore act especially responsibly in these areas (more details on this can be found on pages 12 and 13).
We have defined specific focal points for every sphere of impact. In the three spheres of impact with a social aspect, for example, we want to promote risk literacy for the people in our markets so that they can make responsible decisions and can better deal with the risks of modern life. VIG will continue to improve customer satisfaction and also be an attractive employer who promotes diversity and equal opportunity.
In the three spheres of impact with an environmental focus, our commitment is clear: In the area of investments, in the underwriting portfolio and in our own office operations, we are striving for net zero by 2050, in line with the EU's climate targets. We intend to reduce our greenhouse gas emissions-such as CO2-as much as possible by this date, and to neutralise any remaining emissions.
As you can see: the added value that VIG creates takes many forms. It is as diverse as our stakeholders - and VIG itself.
Hartwig Löger
Chairman of the Managing Board
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe | 3 |
CONTENTS
Sustainability Report 2023
- Letter from the Chairman of the Managing Board
- Company profile
- Business strategy
10 VIG 25
- VIG's new sustainability programme
- Stakeholders
- Materiality analysis
- SDGs and UNGC
- Interview with the Chairman of the Managing Board Hartwig Löger
- Responsible corporate governance
- Compliance: In line with all rules
- List of abbreviations
- Information about this report
- Appendix tables
76 GRI content index
- Declaration by the Managing Board
- Review report
90 General information
The company names in this report have been shortened. A list of abbreviations can be found on page 70.
4 | Sustainability Report 2023 |
Contents
Risk literacy so that more | Environmentally friendly |
people can protect | investment portfolio: |
themselves against risks | withdrawal from coal by |
64 | 2035 and net zero by 2050 |
30 |
y | ||
t | ||
e | ||
i | ||
c | ||
o | ||
S |
As
set
Manage m e n t
Expansion of
Innovations for additional customer benefits, better understanding of our customers' needs
U | ||
s | n | |
r | ||
Sustainability | ||
m | ||
e | d | |
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o | at VIG | w |
C | n | |
t | r | |
s | i | |
u | t | |
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environmental know-how and net zero by 2050 - including the corporate and retail underwriting
58
s e e yolpmE
O | |||||
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portfolio
38
VIG as an attractive | Reduced emissions from | |
employer who promotes | our own office operations: | |
equal opportunities, | climate neutrality by 2030, | |
employee centricity and | net zero by 2050 | |
diversity | 44 | |
48 | ||
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe | 5 |
THE INSURANCE GROUP
AT A GLANCE Employees in 2023 (FTEs, annual average):
Together, the VIG companies form | VIG Holding has been awarded an | 29,405 |
the leading insurance group in | A+ rating with a stable outlook by the | |
Central and Eastern Europe, with VIG | internationally recognised rating agency | Gross written premiums in 2023: |
Holding headquartered in Vienna. | Standard & Poor's. VIG shares are listed | |
VIG Holding manages and supports over | on the Vienna, Prague and Budapest | EUR 13.8 billion |
50 insurance companies and pension | Stock Exchanges. | |
funds. The roots of the Group reach | ||
back to the year 1824. | Around 72% of the shares are held by | Insurance service revenue |
Wiener Städtische Versicherungsverein, | ||
The insurance companies are | and the approximately 28% remaining | for 2023: |
established in their respective regional | are in free float. Wiener Städtische | EUR 10.9 billion |
markets. Around 29,000 employees | Versicherungsverein is a stable | |
provide protection against a wide | principal shareholder that focuses on | |
range of risks for roughly 32 million | the long term. It assists VIG companies | Result before taxes in 2023: |
customers with insurance solutions | with cultural and social matters and | |
these areas. | EUR 772.7 million | |
tailored to the respective markets. | provides support for many projects in | |
Solvency ratio in 2023: | ||
269% |
THE VIG VALUE CHAIN
This simplified chart shows the inputs and internal processes that VIG companies use to create value and their products, namely insurance solutions. One of the simplifications is that reinsurance is not only purchased on the market, but also provided internally within the Group by VIG Re.
Private households Suppliers of services Suppliers of materials Reinsurers
Capital providers
PROCUREMENT MARKETS
Risk bearing/ | |||||||
Product | Underwriting | risk | Asset | Claims | |||
development | transformation | management | management | ||||
Corporate Governance, Strategy, Controlling, Human Resources, General Secretariat and Legal, Risk Management, Compliance, IT, Finance and Accounting, Business Organisation, etc.
Sources used: Dieter Farny, 2011, Versicherungsbetriebslehre (Insurance Operations), Verlag Versicherungswirtschaft GmbH, Karlsruhe, p. 98 ff
Thomas Köhne, 2017, Industrialisierung (in) der Versicherungsbranche (Industrialisation in the Insurance Industry), in: Wagner, F. (editor), Gabler Versicherungslexikon (Gabler Insurance Encyclopaedia), Wiesbaden, p. 430 ff
6 | Sustainability Report 2023 |
NO | SE | ||||||
EE | |||||||
LV BALTIC STATES | |||||||
1 | |||||||
DK | LT | ||||||
BY | |||||||
PL | |||||||
DE | 4 | ||||||
CZ | |||||||
1 | SK | ||||||
AT | 1 | MD | |||||
FR | LI | 1 | |||||
HU | 5 | ||||||
SI | |||||||
1 | RO | ||||||
10 | |||||||
IT | HR | 1 | |||||
RS | |||||||
4 | BA | ||||||
4 | |||||||
5 | KOS | BG | |||||
MNE | 6 | MK | 3 | ||||
6 | AL | ||||||
1 | |||||||
2 |
Who is VIG?
Find out more about the leading insurance group in CEE in this video at annual-report.vig/2023/profile
Market positions | profile |
in the CEE region | |
Company | |
Market rankings 1st to 3rd quarters of 2023, | |
Moldova 1st to 4th quarters of 2022, | |
Hungary 1st to 4th quarters of 2023 |
CEE: Central and Eastern Europe, including Austria. The aim is to take advantage of the long-term growth opportunities offered by these 20 countries.
Special Markets according to the country portfolio:
Specific objectives will be pursued in each of these ten countries.
UA
2
GE
TR
VIG serves private and corporate customers in its insurance business and also provides reinsurance. The product range includes, among oth- ers, motor third party liability and motor own damage insurance, accident insurance, liability insurance, fire and natural hazards insurance as well as 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 VIG's strategic cornerstones, products are sold through a variety of distribution channels in all markets.
Distribution, | MARKETSSALES | |||
Marketing | customer advisors, | |||
customer support | ||||
Insurance customers | ||||
Life - without profit participation 5.4%
Life - with profit participation 7.8%
Life - Unit- and index- linked 0.9% (0.9%)
Health 6.8%
Insurance service revenue by line of business in 2023
Motor third party liability 17.4%
Motor own
damage 14.7%
Other property and casualty 47.0%
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe | 7 |
STRATEGIC
PRINCIPLES
The VIG mission statement, strategic objectives and clear management principles determine the long-term course followed by the Group.
Mission statement
Our vision
We want to be the first choice for our customers. Our stakeholders see us as a stable and reliable partner. This enables us to consolidate our position as the leading insurance group in Central and Eastern Europe.
Our mission
We stand for stability and competence in the field of risk protection. We use our experience, know-how and diversity to move closer to our customers. We see it as our responsibility to protect the values that matter to our customers.
Our values
Diversity
Customer proximity
Responsibility
Our promise
We enable customers
to live a safer and better life: Protecting what matters.
Strategic objectives
Expansion of leading market position in CEE
Creating sustainable value
Sustainability goals in six spheres of impact
On the basis of this long-term strategic orientation VIG formulates medium-term objectives. For example, the Group aims to be at least one of the top three insurance groups in each CEE market by 2025 (with the exception of Slovenia). It intends to increase premium volume by taking advantage of long-term opportunities in health insurance and future provisions in the CEE region, among other things. Creating sustainable value improves aspects such as efficiency in the operating business,
for example by making more targeted use of synergies between companies. The Group-wide sustainability programme aims to further strengthen sustainability as an integral component and foundation of the business model and thereby also ensures the Group's future success (see page 12).
8 | Sustainability Report 2023 |
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Vienna Insurance Group AG published this content on 24 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 April 2024 07:17:09 UTC.